Upload
votuyen
View
216
Download
2
Embed Size (px)
Citation preview
Creating …
Enterprise’s Sustainable Performance
with
Core Executive Development Programs
(Value-Based Management)
and
Success Proved
Professional Consulting Services
(Enterprise Performance Management)
Enterprise Performance Management
“Enterprise Performance Management encompasses all the processes,
information, and systems used by managers to set strategy,
develop plans, monitor execution, forecast
performance and report results with view to achieving
sustainable success no matter how success maybe defined”
Process Controls• Governance principles and ethical values• Strategic and KPI boundaries• Risk management (senior management challenges planning hypotheses and risks)
• Actual results, KPI reports , trends, league tables , and rolling forecasts
Process inputs• Organization/BU vision • BU strategic direction and customer value proposition
• High – level, medium-term HO/BU goals and “baseline” expectations
• Small high-level KPI set
• Rewards policy
Performance Review Process • Review performance outlook and assess gap• Review and reset high-level goals• Review strategy and key value drivers• Agree, prioritize, and fund action plans• Coordinate plans across the business• Review KPI targets and controls
Process outputs• Agreed strategy• Agreed “execution” list of action plans • KPI set • Revised rolling forecasts (showing impact of action plans on profit and cash flow projections)
Process Resources• Support from senior managers and centers of expertise
• Tools (e.g., Balanced Scorecards and shareholder value models)
• Information on computers, market intelligence , and economic indicators
Enterprise Performance Management
Enterprise Performance Management
Process inputs
• Organization/BU vision
• BU strategic direction and customer
value proposition
• High – level, medium-term HO/BU
goals and “baseline” expectations
• Small high-level KPI set
• Rewards policy
Controls
Input ProcessOutput
Resources
Enterprise Performance Management
Controls
Input ProcessOutput
ResourcesPerformance Review Process
• Review performance outlook and
assess gap
• Review and reset high-level goals
• Review strategy and key value drivers
• Agree, prioritize, and fund action plans
• Coordinate plans across the business
• Review KPI targets and controls
Enterprise Performance Management
Controls
Input ProcessOutput
Resources
Process Controls
• Governance principles and ethical
values
• Strategic and KPI boundaries
• Risk management (senior management
challenges planning hypotheses and
risks)
• Actual results, KPI reports , trends, league
tables , and rolling forecasts
Enterprise Performance Management
Controls
Input ProcessOutput
Resources Process Resources
• Support from senior managers and
centers of expertise
• Tools (e.g., Balanced Scorecards and
shareholder value models)
• Information on computers, market
intelligence , and economic indicators
Enterprise Performance Management
Controls
Input ProcessOutput
Resources Process outputs
• Agreed strategy
• Agreed “execution” list of action plans
• KPI set
• Revised rolling forecasts (showing
impact of action plans on profit and
cash flow projections)
CFO’s Operational Excellence
Management Excellence
Human Capital
Executives Development
Best Practices
Effectiveness
Wealth Maximization
Efficiency
Team EffortsOperations:
Process/Info/SystemValue-Based Success = E2
SustainableSuccess
Stakeholders
Value-Based Management System
World ClassExperiences
Management Tools & Tech.
BusinessKnowledge
Competency-Based
Professional Managemen
t System
Accounting &Finance for Executives
Budgeting for Planning and Control
Enterprise Resources Planning
(ERP): BI & Business
Process Focus
Performance Management
System (PMS)
Risk Management
Strategic Thinking,
Planning and Management
Accounting Information System (AIS)
Corporate Finance-Liquidity
Management
Best Practices in Accounts
Receivable Management
Best Practices in Inventory
Management
Strategic Cost
Management
Capital Budgeting
and Investment
Advanced Financial Analysis
Operational Excellence
Management Excellence
Controller-ships
Leadership for Executive
Business Operations : Key Processes
Allocation of Funds Acquisition of Funds
Sales/Revenues (S)
Cost of sales/COGSGross Profit SG & A Operating ProfitInterest ExpensesProfit Before taxesIncome Taxes
Current Assets• Cash• Accounts Receivable• Inventories Non – Current Assets• LT Investments• Fixed AssetsTotal Assets(TTA)
Current Liabilities • Notes Payable/Bank Loans• Accounts Payable • AccrualsNon – Current LiabilitiesShareholders’ Equity (SE)• Paid – Up Capital• Retained EarningsTotal Liabilities & SE (TLE)
KPI: %NP/S X S/TTA X TTA/SE = %ROE
Sources of FundsInvestmentsOperations
Operating Activities Investing Activities Financing Activities
Net Profit (NP) Dividends
%ROA
Budgeted Income
Statement
Cash Budget
Sales of Services or Goods
EndingInventoryBudget
Work in Processand Finished
Goods
ProductionBudget
DirectMaterialsBudget
Selling and
Administrative
Budget
DirectLabor
Budget
Overhead
Budget
EndingInventoryBudget
Direct Materials
Budgeted Balance
SheetBudgeted Statement
of Cash Flows
Flexible Budgets
Improve performance evaluation.
May be prepared for any activity
level in the relevant range.
Show costs that should have been
incurred at the actual level of
activity, enabling “apples to apples”
cost comparisons.
Reveal variances related to
cost control.
Let’s look at CheeseCo.
Since cost variances are favorable, have
we done a good job controlling costs?
CheeseCo
Static Budgets and Performance Reports
Limitations of Financial Statement Analysis
Analysts should look beyond
the ratios.
Economic
factors
Industry
trends
Changes within
the company
Technological
changes
Consumer
tastes
The Enterprise Resource Planning (ERP) Model
Customer Orders
Master Production Schedule
Material Requirements Planning
Assembly and Purchase Plans
Aggregate Plan
Bill of Material
Inventory Files
Marketing Human Resources, Manufacturing, Financial, Plant Maintenance, and Capacity Planning
Cost Accounting
Distribution Planning
System-Wide planning
Supplier Relationship Management
System-Wide Database and Servers
Customer Relationship Management
Collaborative Planning and Integration with Suppliers, Customers
MRP
MRP II
ERP
EBI: Dashboards and Scorecards
Personalized dashboards and scorecards provide a powerful way to manage
andmonitor key metrics
EBI: Dashboards and Scorecards
Sales and marketing management can see an immediate improvement in
performance when using dashboards to monitor customer activity and behavior
EPM Consulting Services
o Objectives
o Scope of work
o Deliverables
o Project Team Structure
o Customer’ s Responsibilities
o Duration & Consulting Fee
o Benefits to ABC
o Appendix
• Consultants’ Profile
• Activity plan and scheduling
Enterprise Performance Management
HYPERION
STRATEGIC
PLATFORM
Financial
Consolidation
& Reporting
Business
Planning
Strategic
Planning
Performance
Measurement
BenchmarkingProfitability
Management
Activity-Based
Management
Enterprise
Performance
Management
• Improves operational
efficiency
• Optimizes the deployment
of enterprise resources
• Communicates strategic
goals
• Compares performance to
peers and best practice
companies
• Manages
profitability