Post on 30-Oct-2014
description
Enterprise Performance Management Done Right
Ron Dimon, Advisory Services PartnerCheckPoint Consulting
#LCBigData14
@RonDimon
WAIT!!!• EPM is not
– The HR “Performance Management” Process– Enterprise Process Management– Enterprise Project Management– Evolution Petroleum Corporation– Equine Protozoal Myeloencephalitis (A horse
disease)
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Agenda
1. What’s your strategy?
2. What’s possible in your organization?
3. Who is going to deliver on that?
4. How are you doing, right now?
5. Why did you get what you got?
6. Now what: what’s next?
7. Are we doing it right?
Business Questions
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“Organizations that have implemented (Enterprise)
Performance Management more broadly, are nearly
four times more likely to be among the most
competitive organizations in their industry.”
Brian McDonough, IDC (2010)
1. What’s your strategy?
• Profitable Revenue Growth• Operational Efficiency• Customer Satisfaction• Employee Engagement• Cash Cycle Effectiveness• Asset Utilization• Market Share
StrategicObjectives
2. What’s possible in your organization?
• What-if Scenarios– Financial Models– Operational Models
• Drivers• Historic data• Constraints• Predictive Analytics• Targets
StrategicObjectives
Enable the Debate
People Process Technology Data
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“Unless commitment is made, there are
only promises and hopes; but no plans”
Peter F. Drucker
3. Who is going to deliver on that?
• Who, what, how much, where, by when• Budgets, Plans & Forecasts
– AOP, P&L, Workforce, CAPEX, Marketing, Project, Capacity
• Top-down / Bottom-up
StrategicObjectives
Enable the Debate
People Process Technology Data
Agree on & Record
Commitments
targets
constraints
Now RUN the organization
• People & Capital:– Acquiring & Serving
Customers– With Products– In Markets– Through Channels– Using Supply Chains
StrategicObjectives
Debate Commit
Execute
• Generating Tons of Transactional Data:
• Quotes
• Invoices
• Contracts
• Inventory
• Pick, pack, ship
• A/R
• A/P
• Payroll, benefits
• Cash receipts
• Social
• Machine
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“However beautiful the strategy, you
should occasionally look at the results.”
Sir Winston Churchill
4. How are you doing, right now?
Useful:
– Right Person– Right Time– Right Info– Right level of detail– Financial & Operational– By
• Product• Customer• Time• Channel• Account
StrategicObjectives
Debate Commit
Execute
Gather all that data and turn it into
useful Information
People Process Technology Data
And• Allocated• Eliminated• Currency
converted
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“A good decision is based on knowledge
and not on numbers.”
Plato
5. Why did you get what you got?
• Analytics– Financial– Operational
• Trends• Benchmarks• Profitability• Variance• Regression• Statistical
StrategicObjectives
Debate Commit
Execute
People Process Technology Data
Gatherdrill-downUnderstand the
root-cause self-serve
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“It is a capital mistake to theorize before one
has data. Insensibly one begins to twist facts
to suit theories, instead of theories to suit
facts.”
Sherlock Holmes
6. Now what: what’s next?
• Are our results
and root causes
still in line with
our strategic
objectives?
• And given what
we know now,
how should we
improve our
models?
StrategicObjectives
Debate Commit
Execute
GatherUnder-stand
7. Are we doing it right?
StrategicObjectives
Debate Commit
Execute
GatherUnder-stand
GOVERN:Common Business Language
Common DataCommon Master Data
Automated Reconciliation
People Process Technology Data
From Operational Excellence to Management Excellence
StrategicObjectives
Debate Commit
Execute
GatherUnder-stand
Govern
ERP
GL
CRM
HRIS
SFA
Inven-tory
Mfg
Manage the business Run the business
Enterprise Performance Management is…
• The processes and technologies that enable people to gain new insights about the business, make better decisions, deploy resources more effectively, and continuously improve performance.
How can you enroll others in the value of EPM?
• EPM as a Decision Process• EPM as an Accountability Framework• EPM as a New Insight Generator• EPM as an Innovation Engine• EPM as a Continuous Improvement Process• EPM as a Management Operating System• EPM as a Performance Improvement Process
Think of it this way…
① A company is a network of conversationsWouldn’t it be better to have facts in your conversations?
② Strategy is a shared agreementAgreements need tracking, measuring, accountability and transparency.
③ It comes down to IntegrityImagine how you would behave if what you were promised was reliably going to happen.
④ So that we can produce results that are expected, over and over again.
Q & A