Upload
lester-wilkinson
View
217
Download
0
Tags:
Embed Size (px)
Citation preview
Performance Management in PracticeNakis Papadopoulos & Richard Lewis
Information Management Group (IMGROUP) Ltd www.imgroup.com
About Information Management Group (IMGROUP)• Provide strategies, services and solutions that help our
customers improve business performance• Microsoft’s Global Partner of the Year in the last 3
consecutive years, 2005, 2006, 2007• Member of Microsoft’s Advisory Council• Very active with Microsoft PerformancePoint
programme since the beginning with clients across industries
Some of IMGROUP’s Clients
Business Performance Management - Definition
A framework that optimises the execution of an organisation’s strategy. It comprises a set of integrated processes, supported by technology that enables organisations to set, communicate, monitor, measure, and manage performance against targets.
The Performance Management Cycle
• Strategic planning• Budgeting• Financial consolidation• Forecasting• Reporting and Analysis• Scorecards
StrategicPlanning
Budgeting
FinancialConsolida
tionForecasti
ng
Reporting and
Analysis
The Premise
Performance Management can help us run our business better, increase our revenues and improve profitability
“Companies on average spend 25,000 person days per annum on planning and budgeting for every 1 billion dollars of sales and often don’t produce results that are significantly better than what they started with.”
The Hackett Group
“In a recent 2006 study, 70% of companies indicated that their planning and budgeting processes do not fulfil management’s expectations”
The Hackett Group
What do I need to make it work?• Is the business need clear?• Is the strategy defined?• Are our processes in good shape?• Do we have the support from management, business and IT?• What’s the level of confidence in our data?• Are we using the right tools?• Have we agreed a “realistic” budget for the project?• Do we have a plan?
Is the business need clear?• Are the metrics in my reports relevant and aligned with my
business strategy?• Can I identify issues and opportunities easily?• Is the data I need to make decisions accessible?• Can I trust my data to make business decisions?• Are my spreadsheets getting out of control?• Is my financial close process too slow and inefficient?• Are my planning activities integrated across the company?
Is the Strategy defined?
• Review your business strategy• Define the business performance perspectives and
measures• Define your KPIs• Build a strategy map• Align every day actions with strategy • Educate and communicate
Are our business processes efficient?
StrategicPlanning Budgeting Financial
Consolidation ForecastingReporting
andAnalysis
Do we have the business support ?
• Is senior management supportive of the programme?• Do we have the support from the business areas
involved such as finance?• Do we have the support from IT?• Do we have the support from the users?
What’s the level of confidence in our data?
• Is the data accessible?• Can we trust the data?• Do we understand the data?• Do we have a robust reconciliation process?• Do we have a method to rectify data issues?• Do we have the right tools and support to do this?
Are we using the right tools?• What level of control/self-sufficiency do the tools provide• What level of integration your chosen tool offers with your ERPs and
other systems?• Do the planning and forecasting modules integrate closely with the
reporting and analytic modules?• Does the tool support the collaborative planning process workflow?• Do you have the skills to support it?• Can you find expertise easily?• Do you have to deal with more than one software supplier?
END USER TOOLS and PERFORMANCE MANAGEMENT APPS
ExcelPerformancePoint
Server
BI PLATFORM
SQL Server Reporting Services
SQL Server Analysis Services
SQL Server DBMS
SQL Server Integration Services
SharePoint Server
DELIVERY
Reports Dashboards Excel Workbooks
AnalyticViews Scorecards Plans
System Performance• Can the tools rapidly process and then report changes
to forecasts/plans/budgets and other scenarios?• Is the tool performance sufficient to deliver high level
summary business reports/KPI’s/scorecards quickly?• Is the technology performance with full data volumes
sufficient to guarantee user adoption?
Familiarity
• How familiar are your business users with the user facing aspects of the tool?
• Can the tool provide a common and familiar environment for both data entry and reporting?
• What will be the user training costs if not?• Will usability be a barrier to adoption?
Cost of supporting the solution
• Is there good availability of expertise to support our solution at reasonable rates?
• Will additional modules require significant additional licence costs?
• If the tool becomes pervasive in the business will “per user” licensing cost be prohibitive?
Do we have the expertise to build it and manage it?
• Process and business knowledge• Financial planning experts• Data specialists• Database engineers• Tool specialists• Support infrastructure• Project governance
Do we have plan?
• Where do we start from?• What are the steps?• What are the risks?• How long will it take?• How much will it cost?• What should be the areas of focus?
Performance Management Framework
Business Strategy
Performance Management
People
BI Platforms
Information Management Infrastructure
Analytic Applications
Tech
nolo
gy
Bu
sine
ss
Process
Gartner’s Framework for Performance Management
The Performance Management Lifecycle
StrategicPlanning Budgeting Financial
Consolidation ForecastingReporting
andAnalysis
Ad-Hoc Data Collection
StrategicPlanning Budgeting Financial
Consolidation ForecastingReporting
andAnalysis
Challenge
We are currently managing data collection from various regions and countries through Excel. Our current process for consolidation and
reporting is manually intensive and does not effectively support the centralized management or standardization of collections. The
number of new data collections is expected to increase along with complexity.
“”
Vision
Our users are comfortable with the current process of data collection through Excel. We need a solution that allows us to build on our
existing processes but provides central management for submission, review and approval. We also need a solution that integrates with our existing ERP systems and that can export collection data to other line
of business systems.
“”
The Performance Management Lifecycle
StrategicPlanning Budgeting Financial
Consolidation ForecastingReporting
andAnalysis
Challenge
We have previously implemented a system in Oracle Financial Analyser to provide a budgeting and planning solution for sales,
distribution and production. We have also had to develop a number of bespoke systems particularly to support the analysis of non-financial data. It currently takes too long for our forecast schedules to reach
production planning due to lack of integration between our disconnected systems.
“”
Vision
We would like to increase transparency within our distributed planning process to drive ownership of agreed forecast numbers to individual managers. We need a planning and forecasting cycle time that significantly reduces effort and time to produce the numbers.
We also need to deliver interactive reports, trending, dashboards and KPIs to a wide range of users and enable reporting self-sufficiency for
analysis of areas of interest.
“”
SolutionPerformancePoint
ServerData Sources Excel
Baseline
Promotions
Volume Forecast
Price Forecast
Cost Forecast
Profit and Loss
Analytics
The Performance Management Lifecycle
StrategicPlanning Budgeting Financial
Consolidation ForecastingReporting
andAnalysis
Integrated Workflow
StrategicPlanning Budgeting Financial
Consolidation ForecastingReporting
andAnalysis
Challenge
Tran
sacti
onal
Sys
tem
s
Analytics Tool
Monthly Reporting Tool
Data Warehouse
Forecasting Tool
Budgeting Tool
Consolidation Tool
Group Reporting Tool
Challenge
Tran
sacti
onal
Sys
tem
s
Analytics Tool
Monthly Reporting Tool
Data Warehouse
Forecasting Tool
Budgeting Tool
Consolidation Tool
Group Reporting Tool
Vision
We need a solution that reduces the number of discrete systems and technologies in order to improve the speed and efficiency of our monthly planning and consolidation cycle. We are looking for
an end-to-end solution on which to standardize and roll out to each of our branches worldwide.
“”
Solution
Tran
sacti
onal
Sys
tem
s
PerformancePoint Server/Excel/SharePoint Server
Data Warehouse• Custom cubes and complex logic replaced by
PerformancePoint Server models
Forecast/Budget• Forecast and Budget collection through Excel
Reporting and Analysis• Group and monthly reports delivered through Excel
Dashboards• Dashboards and Scorecards delivered through SharePoint
Summary
Business Strategy
Performance Management
People
BI Platforms
Information Management Infrastructure
Analytic Applications
Tech
nolo
gy
Bus
ines
s
Process
Gartner’s Framework for Performance Management
Summary• Review your business strategy and measures of performance• Ensure buy in form senior management• Understanding and cleaning data is the most complicated and time consuming part• Focus on issues, problem areas• Use an incremental approach• It doesn’t have to be a major investment• Adoption takes time• Get some training and advice• Check and fix issues with data• Keep your solution simple
Our Launch Offer• A working Microsoft PerformancePoint TM Server application in 3 days• Day One Tailored overview of Microsoft PerformancePoint
Server 2007Identify business area, focus and scope of activity
• Day Two Capture business definitions for chosen areaBuild PerformancePoint business model using real
data
• Day Three Demonstrate working applicationDemonstrate key aspects of data capture, planning,
budgeting, consolidation, reporting and dashboard creationPresent recommendationsClosing workshop
•
For questions please feel free to contact: