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Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
Sherwood Group Consulting: PM Executive Presentation
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Sherwood Group Consulting: PM Executive Presentation

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Choosing the right software is only part of the game . Making change needs a plan.and commitment. …

Choosing the right software is only part of the game . Making change needs a plan.and commitment.

Making sure yourproject is well defined, well resourced and well sponsored is the art a PM project success.

The bottom line for making a change to add value to a business is to make sure everyone with a stake in the outcome is involved, is accountable and can win....

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  • 1. Sherwood
    Group Consulting
    Performance Management
    Future Directions & Exploiting Performance Management & BI Systems value
  • 2. Topics of Discussion
    Changes occurring in performance management
    Future directions of the PM software services.
    Share some large and small organisation experiences on how they to use their PM applications to exploit value.
    Sherwood Group Consulting
  • 3. Gordon Wood, is the Executive Director of Sherwood Group Consulting, performance management & analytics consultants and solutions implementers
    Gordon has been working with clients in Asia-Pacific since 1993, on high profile projects for manufacturing, mining oil & gas exploration, retail and financial services sectors.
    About the Presenter
    Sherwood Group Consulting – Confidential
  • 4. About Sherwood Group Consulting
    Sherwood Group Consulting – Confidential
  • 5. Let’s start by sorting the jargon
    BI  - Business intelligence
    IFRS  - Inter’l Financial Reporting Standards
    OLAP - online analytical processing
    PM - Performance management
    SOA  - service-oriented architecture
    SaaS - software as a service
    Sherwood Group Consulting –
  • 6. Some PM definitions from the web
    Performance management links strategy with corporate objectives and aligns a company's resources by coordinating efforts of every member of the organization.
    The integrated process by which an agency involves its employees in improving organizational effectiveness in the accomplishment of agency mission and strategic goals.
    The process of quantifying, measuring, correcting and reporting system service levels
    PM is a business process application for managing outcomes from strategy thru to execution.
    Sherwood Group Consulting
  • 7. BI, what exactly is it?
    Intelligence or information gathering in business terms broadly covers employment of analytical systems to retrieve process and present information for business use.
    BI tools now come with sophisticated analytically based graphics and intuitive interactive end user reporting and reduce massive online data sources to simple and decisive value.
    Performance management have embedded BI processes for transaction drilling
    Sherwood Group Consulting –
  • 8. PM BI Systems
    Succinctly put, Business Intelligence (BI) systems present decision based information by systematically analyzing an organization's own business data directly from its source.
    Sherwood Group Consulting –
  • 9. PM Software Today
    Execution
    Strategy
    Direct
    Align
    Control
    Planning
    Strategy
    Forecasting
    Consolidation
    Budgeting
    Process Workflow and Compliance
    A complete process end to end
    in a closed loop system
  • 10. PM Understanding its value
    PM ROI – is dollars, but could be lives and safety.
    ROI calculations on PM projects are mostly subjective and not always necessary.
    The "soft" benefits of PM are the most important - The main benefits you get from PM are intangible benefits of strategic value, such as
    faster reporting,
    better management information,
    better decision making and
    more productive users.
    Executive sponsorship is key to sell and recoup these kinds of soft, intangible benefits.
    Sherwood Group Consulting
  • 11. Assessing the Value
    Estimate what is be needed to revert to a manual spreadsheet system.
    How many people, Time taken
    Decision lead time and so on
    Result .. Yes it is not possible to revert
    But check you are not doing both – old habit die hard, believe me.
    Sherwood Group Consulting
  • 12. Testing the value Example Do a top down Plan first
    Try doing the top down approach first .
    Then do the budget bottom up and match it
    (budget can be done in detail even by product)
    • Discuss the Gaps and proceed with approvals
    (Do another round if and compare in minutes /days)
    • Consolidate and present to Board
    • 13. Check how long it took and the quality
    Suggest revert and see reaction
    (That is everyone go back to the offline spreadsheet)
    Impossible so you know the value
    Sherwood Group Consulting
  • 14. Live Experience -SME is MalaysiaPrivate Company $25 million
    Scenario
    All states logistics operation Very profitable
    Incentive based management style
    Budgets takes 6-10 weeks and painful
    Actuals take 17 days each month including reprocessing. Management issue
    Sources CPM ERP, Budget, Operations data.
    Vendors support difficult to find
    Business growth constrained by systems
    Sherwood Group Consulting
  • 15. Live Experience -SME is Singapore Results – as we go approach
    Implemented PM system in 4 days
    Loaded data and budgets in 2 days & collaborating immediate value
    Live in development (parallel) fix as we go.
    Results now taking 4 days as issues dealt with
    Next year budget already planned top down.
    Growth plan is now in the design.
    restructuring issues solved on the fly.
    Operations are thrilled.. Can see the numbers
    Sherwood Group Consulting
  • 16. Live Experience -SME in Malaysia Operation 12 months but formally still a POC internally
    As a Service no technology in-house (yet)
    Process focus and outcomes were the key
    Business rules adopted quickly to facilitate build
    Very focused finance team for results and buy-in
    Dedicated consultant working remotely
    One face to face meeting with Consultant
    Recommended by Accountants for growth and due diligence planning (always ready)
    No way back now.. Management ecstatic
    Sherwood Group Consulting
  • 17. PM Users, who are they & why?
    An estimated 23% of business have a PM system. This is mostly high end organisations
    99.9 % of all business have a spread sheets 75% manual 5% link then to sources directly.
    Small but significant growing number of SMEs taking up PM (3-5% but rapid take )
    And about 35 % are using some form of BI or information extractions tool
    There is a big gap and huge demand growth with the software industry targeting that very hard
    Sherwood Group Consulting
  • 18. PM and BI Trends & drivers & why?
    Sherwood Group Consulting –
  • 19. Evolution of Capability
    Sherwood Group Consulting
  • 20. Business Pressures Unrelenting-PM gets you proactively ahead
    Shortened Cycles
    Regulatory Scrutiny
    IFRS
    IAS
    Business Performance
    GAAP
    Global Competition
    Changing Markets
    19
  • 21. Performance Management Software Today is Highly Sophisticated
    Delivers
    Embedded disciplines knowledge foundation
    Intuitive Workflow based processes
    Pervasive ease of use and accessible
    Maintainable in open technologies
    Total business Applications not only tools.
    Functionally
    highly flexibility to change for growth
    business people can see and exploit the value
    Business and People adapt to change environments
    Sherwood Group Consulting
  • 22. Software Expectations
    Software subject matter must perform like a
    A highly qualified graduate with 100 perfect pass park in the highest university level course in the world currently and have at least 25 years experience.
    Manager’s may not have the skill to manage this level of resource and get the value
    Specialist consultants are important
    Everyone wants support
    Sherwood Group Consulting – Confidential
  • 23. Skill Shortages changes impacts
    Today there is a serious shortages of skilled financial controllers and financial management people
    Open market is generating massive demand for control
    World on move so quickly so no sustainable transitions
    Functional learning base rather logic based with problem solving skills changing or less sustainable
    Less focus on in-house formal manage training and leadership courses
    Smart management and BI software is picking up the gap as they manage the processes too
    Universities now teach use of software as a core
    Sherwood Group Consulting – Confidential
  • 24. Consolidation Systems – Now
    Must have
    Organisation , including complex ownership structures
    Currency translation (including accounts valuation distinctions)
    Data Flow Standards (Opening Balances and automatic results re-balancing from inputs)
    Consolidation entries and audit process
    Intercompany and Investment elimination functionality
    Complex accounting automation (journals and adjustments)
     
    Sherwood Group Consulting –
  • 25. Consolidation Systems - Future
    New breed smart systems in the works will :
    Automate movements analysis (attributed capability for structured movements analysis)
    Have Automated attributed outcomes for report generation (e.g. Cash flow)
    Handle transaction currency and Hyper inflation revaluation.. They do already actually
    Provide Functional currency switching . (What happens when you the rules change and you answer is different? )
    Sherwood Group Consulting –
  • 26. Example on Grand Scale Building the ultimate PM/ BI
    In Oil drilling information is rich in information but is scattered across the world
    Same for manufacturing and mining as with services banking and in fact every process
    Alternative energy and exploitation and conservation will depend on the ability to normalize and analysis this data form disparate sources and formats
    But how can we do this?.
    Sherwood Group Consulting –
  • 27. Grand Scale Example – cont’dBuild the ultimate PM/ BI
    Chevron planning a PM /BI project that will take 5 years to complete.
    Largely in Asia with skills high capability at lower cost.
    It will provide indexing of data to a normalize BI data mart with search engine power
    And use high end visualization and simulation tools
    Data will stay where it is but available, real time
    Sherwood Group Consulting –
  • 28. Emended Business intelligence
    Amazing Yes. but not really
    We do it every day now but with blinkers on.
    PM systems & embedded BI like Infor does this now
    But the scale is now becoming obvious as business people are seeing the value and expand the platforms away from just being finance focused
    Sherwood Group Consulting –
  • 29. Futurist Maintenance Performance
    Use of Optical scanning on operator head gear fed back to central database will provide instant diagnosis of performance.
    This is real now in energy companies so imaging the impact on manufacturing automotive and general life operating life style if were harness that technology
    Six Sigma to identify and remove the causes of defects will look like quite a passé
    Sherwood Group Consulting –
  • 30. Software as a service [Saas]
    Is it a real phenomenon or just a hype to sell software
    What does it mean?
    What is the value proposition?
    Who gets the benefit?
    What are the risks?
    What about the 2 sets of books?
    Do we really trust an outside computer?
    What is SAS70?
    Sherwood Group Consulting –
  • 31. Just a few examples
    Google.com
    Range of services including, web services, email, photo news and many more
    Yahoo.com
    Try Finance for share portfolio management
    Salesforce.com
    Huge take up for sales pipeline management
    Many more .. And it is here to stay
    Sherwood Group Consulting
  • 32. Live example Using PM as a change tool
    Thai company recently spent a year revamping their corporate performance management thinking.
    The sort is fantastic for this 100 year old consumer products company of 85000 employees, including 4000 in IT.
    You would think they would have all the tools but they chose just a Strategy Management tool for the task and it has had revolutionary results
    Sherwood Group Consulting
  • 33. By Joining the dots in the strategy
    Sherwood Group Consulting –
  • 34. What makes up the plan and what is the drag on the plan when it falters
    Sherwood Group Consulting –
  • 35. Performance Contribution Value
    Sherwood Group Consulting –
  • 36.
  • 37. Making it happen
    If you don’t have a PM system
    It is costing you a fortune
    It places you at risk in a downturn
    Planning for growth is costly and hard to achieve
    • Get your PM up and working
    It will invoke best practice and attract quality people to exploit it to grow your organisations
    • If you have one now I guarantee it ‘sunderutilized
    Expand and exploit it and add planning BI an SM
    Sherwood Group Consulting
  • 38. Shernox Thailand Client
    A Top 10 Public Company in Thailand
    Oils and Gas industry
    International in Asian and other countries
    Operated and Non Operated Assets
    65 + separate complex organisation
    Onshore and offshore operations
    Multi currency trading and reporting
    Several presentation currencies
    Cross functional structured with shares
    Sherwood Group Consulting –
  • 39. Implementation Methodology
    38
    Support
    Implementation
    Configure
    Application
    Form Team
    & Design
    Business Case
    Deploy
    In
    Short Stages
    Business case – (Understand Benefits)
    Form Team & Design (Design Commitment)
    • Involve managers and users (early buy in)
    • 40. Get Finance involved as information owners
    • 41. Get IT involved as the infrastructure owners
    • 42. Design – Agree Process, function, scope & plan
    Configure Application (Develop System)
    • Manage outcomes & risks
    • 43. Tackle boundary issue early. E.g. security
    Deploy in Stages (to see value early)
    • Deliver early for user buy-in & confidence
    Support Implementation (Make it stick)
    • Test, Train, and support
  • Other Visionaries - Who & what are they doing?
    Richmond Police Force , Richmond, Va. predict the crimes patterns and deploy officers to potential hot spots.(http://searchdatamanagement.techtarget.com/news/article/0,289142,sid91_gci1250435,00.html)
    Jefferson Medical Center - monitor employee productivity (http://searchdatamanagement.techtarget.com/news/article/0,289142,sid91_gci1202027,00.html)
    Office Depot - Financial data arrives from 1,000 retail outlets every day, and needs to be accessed by thousands of users. Built processes for receiving, storing and accessing data. (http://searchdatamanagement.techtarget.com/news/article/0,289142,sid91_gci1139408,00.html)
     
    Sherwood Group Consulting
  • 44. 40
    Shernox Oil Project Phases & Deliverables
    3.88
  • 45. Integrated of budgets and reporting
    Sherwood Group Consulting
    Earnings, Cash Flow, Capital Summary Reporting
    Performance Metrics, Net Sales/Production Statistics
    Other Expenses & Payment Planning
    Tax & Working Capital
    DD&A Rating
    Reporting
    SOE Cash Expenses Classification
    Capital Project &
    Reporting Analysis
    Net Cash
    Expenses & Analysis
    Drilling Performance
    Planning
    Revenue Planning Gas, Condensate & Oil
    Expense Allocation
    & Partner Recovery
    Allocation
    Capital Projects
    Detail Planning
    Production Planning
    Department Cash
    Expenses Planning
    Expenditure
    Production & Revenue
    Capital
  • 46. 42
    Budgeting Preparation - Overview
    Strategic planning Linking
    Budget Process & Function
    Budgeting time table and meeting information
    Budget assumptions / Global drivers 
    Multiple budget version
    Multi-currency transaction budgeting
    Accrual budgeting / Cash budgeting
    Budget preparation workflow route
    Incrementalbudget capability
    Formats
    Non-monetary data
    Efficient budget preparation worksheet
    Efficient supporting sheet
    Different formula / budget item for each worksheet
  • 47. 43
    Budget Preparation – Functional
    Automated Alternatives
    Automate Work Programs
    Automatically calculate some certain budget e.g.. Salary & Traveling expenses
    Top-down budgeting route
    Closing forecast preparation
    Allocation process
    Processes & Budget Review Efficiency
    Consolidation
    Consolidated budget analysis and report
    Screen proposed budget analysis
    Standard analysis method for decision making.
  • 48. 44
    Budget Preparation-Work Flow
    Approval Process
    Approval & Communication
    Approved budget notification
    Change Control
    Request for Contingency workflow route
    Request for Budget reclassification workflow route
    Authority for expenditure and Internal authority for expenditures preparation workflow route
    Support Management
    Budget help desk workflow route
    Alert messages with e-mail report distribution.
  • 49. 45
    System Administration
    Organisation Management
    Dynamic organization and matrix organization view.
    hierarchical responsibilities.
    Security
    Easy to create, maintain user security accountability.
    audit trail.
    Data Management
    Easy to create and maintain dimension value.
    Easy to create and maintain formula.
    Processing & Control
    Quick calculating process (with reliable output).
    Efficient task scheduling and sequencing.
    Indicate error details and solutions in running result.
  • 50. 46
    Technical Requirements
    General System requirement
    Flexible Application Server based
    Databases; Oracle, Microsoft & others
    Network Open
    Software design
    Flexible Platform configuration
    Hardware design
    Open system architecture for industry interfacing.
    Fault tolerant.
    Architecture multi-tier
    Integrated auditable security
  • 51. Technical Requirements
    Reporting
    Standard set of reports and analytical views
    Monthly cost control report
    A drilldown to transaction level report
    multidimensional reporting and analysis with annotations, flexible formatting, graph types.
    Ad-hoc reporting tools
    Two-ways communication
    Administration & Support
    List of available report with authorization
    Most frequently used report
    Quick access to reliable information.
    Good print-out.
    E-learning
    Sherwood Group Consulting
  • 52. Best Practice Lessons
    Intuitive Solutions (If you can say it simply, it works)
    Simple scope…. (Don’t do too much at once.)
    Challenge bad practices (Don’t carry on mistakes)
    Exploit strengths. (Decide who does what best)
    Share knowledge. (Regular communication)
    Test, test, and test live well before going live
    Plan Good Support for “Go Live”
    Exploit valueas phase 2 project in Rollout ….
    48

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