Driving Alignment from StrAtegic objectiveS to operAtionAl ...


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Driving Alignment from StrAtegic objectiveS to operAtionAl ...

  1. 1. SAp Solution in Detail SAp Strategy management Driving Alignment from StrAtegic objectiveS to operAtionAl performAnce
  2. 2. © Copyright 007 SAP AG. All rights reserved. HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, World Wide Web Consortium, No part of this publication may be reproduced or transmitted in Massachusetts Institute of Technology. any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed Java is a registered trademark of Sun Microsystems, Inc. without prior notice. JavaScript is a registered trademark of Sun Microsystems, Inc., Some software products marketed by SAP AG and its distributors used under license for technology invented and implemented contain proprietary software components of other software by Netscape. vendors. MaxDB is a trademark of MySQL AB, Sweden. Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation. SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver, Duet, PartnerEdge, and other SAP products and services IBM, DB, DB Universal Database, OS/, Parallel Sysplex, mentioned herein as well as their respective logos are trademarks MVS/ESA, AIX, S/390, AS/400, OS/390, OS/400, iSeries, pSeries, or registered trademarks of SAP AG in Germany and in several xSeries, zSeries, System i, System i5, System p, System p5, System x, other countries all over the world. All other product and System z, System z9, z/OS, AFP, Intelligent Miner, WebSphere, service names mentioned are the trademarks of their respective Netfinity, Tivoli, Informix, i5/OS, POWER, POWER5, POWER5+, companies. Data contained in this document serves informational OpenPower and PowerPC are trademarks or registered purposes only. National product specifications may vary. trademarks of IBM Corporation. These materials are subject to change without notice. These Adobe, the Adobe logo, Acrobat, PostScript, and Reader are materials are provided by SAP AG and its affiliated companies either trademarks or registered trademarks of Adobe Systems (“SAP Group”) for informational purposes only, without Incorporated in the United States and/or other countries. representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. Oracle is a registered trademark of Oracle Corporation. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements UNIX, X/Open, OSF/1, and Motif are registered trademarks accompanying such products and services, if any. Nothing herein of the Open Group. should be construed as constituting an additional warranty. Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc.
  3. 3. contentS Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 “Siloed” Business Intelligence Approaches Are Not Enough . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Elements of a Successful Strategy Management Solution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 SAP Strategy Management: Driving Execution Across the Enterprise . . . . . . . . . . . . . . . . . . . . 6 Solving the Challenges of Strategy Management and Execution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Empower Business Users – and Free Up IT Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Core Functions of SAP Strategy Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Home: Putting Information at Employees’ Fingertips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 – Increasing the Efficiency and Effectiveness of Operational Reviews . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Strategy: Making It Relevant to Employees at All Levels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Initiatives: Linking Initiatives with Daily Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Scorecards: Giving Departments Greater Control and Visibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Dashboards: Providing Flexibility and Fast Access to Supporting Operational Data . . . . . . . . . . . . . . 14 Reports: Empowering Business Users with Self-Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Administrative Automation Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Entry and Approval Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Configuration and Modeling Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Powered by SAP NetWeaver . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 For More Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 3
  4. 4. executive SummAry To keep up with the pace of business today, successful enterprises It is important to note that most of these issues cannot be addressed are in constant flux: refining strategies, introducing new product by providing your organization with easier access to financial and service offerings, launching new marketing campaigns, intro- data – or even basic scorecard and dashboard functionality show- ducing new tools for improved efficiency. At the same time, exec- ing key performance indicators (KPIs) and other metrics. Financial utives may be focused on optimizing supply chains, improving figures are useful to show whether your company is meeting or workforce productivity, and outsourcing noncore processes. exceeding target revenues, profitability, and cost-cutting goals, but they are not for proactively managing organizational perfor- The question is – are these types of strategies and plans being mance. So today’s financial data can’t warn you about issues such carried out swiftly and effectively across your organization? as decaying employee morale, declining customer satisfaction, Are executives achieving the results they need? If the answer is and diminishing product quality – all critical leading indicators unclear, you’re not alone. Most businesses face a significant gap of future success or failure. And typically, the numbers have no between strategy and execution, and the challenge is both real meaning to your employees as they make day-to-day deci- profound and widespread. sions, prioritize work, and allocate resources. What’s the source of the problem? The most common reasons Instead, your executives need information to devise the right include the following: strategies and determine where to deploy personnel and budgets. • Most employees don’t fully understand the organizational Once developed, they must communicate these strategies to strategy and therefore don’t recognize how their decisions information workers across the enterprise – and do so in ways impact other parts of the organization. that they can relate to within the context of their department • Employee incentive systems are seldom linked to organiza- and role. At the same time, your employees need the tools to tional strategy, so individuals’ personal goals are not aligned execute properly on a day-to-day basis, as well as make well- with those of the company. informed decisions. • Management systems don’t empower employees to make decisions independently. IT can play a critical role in bridging this gulf by helping the busi- • There is no systematic approach or tool for linking strategic ness increase operational alignment and agility. The SAP® Strategy objectives with the organization’s budgeting, planning, and Management application can help you do that with a single, reporting processes. integrated solution that’s easy to deploy. The software empowers • There is no mechanism for capturing or sharing best practices business users at all levels to monitor and ensure execution on across the company; thus, processes must constantly be strategies – and gets IT departments out of the dashboard, score- reinvented. board, and reporting business and focused on other value-added initiatives. 4
  5. 5. “SiloeD” buSineSS elementS of A SucceSSful intelligence ApproAcheS StrAtegy mAnAgement Are not enough Solution Trying to execute on high-level corporate strategies without a SAP Strategy Management integrates all three pillars of strategy strategy management solution is akin to managing complex, management: goals, initiatives, and metrics. Only when these long-term, and business-critical projects without collaborative elements are aligned can your organization hone decision making project management software. Without it, how can your project and achieve its objectives – both short- and long-term. Here’s why. managers structure a project so that activities and tasks are clearly linked to the larger objective? How can anyone really know the • Goals true status of the project, its cost to date, and where the poten- While most organizations have developed goals and objectives, tial roadblocks are? And how can they allocate resources most and some have formalized them into a strategic plan, too often effectively? only a select few individuals understand exactly what the goals mean and how they should affect what they do. To improve Similarly, when your organization relies exclusively on “siloed” performance, goal setting must involve more stakeholders, be dashboards, scorecards, and reports to manage execution of cor- more interactive, be updated more frequently, and tie explic- porate strategies, C-level executives, line-of-business managers, itly to organizational operations and initiatives. and their employees are often at a loss, unclear about answers to some of the most fundamental questions, such as the following: • Initiatives • What is our company’s long- and short-term strategy? Too often, managers and employees are assigned to a project – • What plans, budgets, and initiatives do I need to undertake to but they have no real understanding of why the project is feed that strategy? important in the greater scheme of things. Consequently, they • Which departments are responsible for making sure these tend to prioritize projects with the most political capital or strategies are executed? those that are furthest behind schedule. Project participants • How do corporate strategies impact my day-to-day decisions need better insight into the strategic relevance of projects so and actions? that they can make informed choices about which projects • How are my decisions and actions impacting the overall goals? should take precedence over others. • How can I reallocate resources and budget for maximum impact? • Metrics With the recent proliferation of dashboards and scorecards, As these questions suggest, management and employees at all organizations have gone from drowning in data to drowning levels need a comprehensive strategy management solution that in metrics. Most end up with hundreds or thousands of static enables their organization to align from top to bottom – linking metrics that are updated monthly, weekly, or even daily. scorecards and dashboards to strategic initiatives and plans at Besides the resource drain, the metrics are often viewed as higher level. With the right solution in place, employees at all “unreliable” and largely meaningless because only experts levels can answer these questions – and make day-to-day decisions understand what they mean and how to use them. Organizations that move your organization closer to its objectives. need metrics that everyone trusts, complete with drill-down functions and the ability to create personalized, reconfigurable views that are relevant to each user. SAP Strategy Management connects these cornerstones of strategy management to help drive execution efficiently. 5
  6. 6. SAp StrAtegy mAnAgement: Driving execution AcroSS the enterpriSe The SAP Strategy Management application is a single, compre- • Linking strategies, goals, initiatives, metrics, and tasks to hensive solution that allows your organization to visibly link drive execution at all levels strategic plans to tasks, budgets, measures, performance goals, SAP Strategy Management enhances traditional business intel- and people. It is the only operational performance management ligence reporting functions by surrounding them with guided solution to address both the needs of the organization and indi- collaboration; strategy, initiative, and resource planning; links vidual users. It provides executives with the tools to communi- to budgeting and progress reporting functions; and more. cate and manage goals, initiatives, and metrics – from initial defi- These additional functions link strategies to specific goals and nition to completed execution. And because the software enables initiatives – and provide much-needed structure and visibility management to distill strategies down to initiatives and tasks, it around their execution. For example, for a given initiative, all provides all employees with actionable plans that they can of the roles, underlying metrics, and factors feeding into the understand. They are empowered to leverage their collective goals and tactics for an initiative are captured in SAP Strategy intelligence; make informed, day-to-day decisions that support Management. This allows management to stay on top of progress strategies; work collaboratively to meet goals; and understand and roadblocks – and different departments to stay abreast of exactly how they are bringing value to the business. As a result, other initiatives underway across the enterprise. C-level executives can be confident that the strategies defined in SAP Strategy Management are translated into execution by • Enabling flexibility and self-service for business users their line-of-business heads and information workers. SAP Strategy Management is an open system. IT simply provides direct access to structured data via a one-time connection to Solving the challenges of Strategy management and core operational systems. Business users can employ self-service execution functions to import or add unstructured data manually as SAP Strategy Management helps you solve the underlying chal- needed. lenges of strategy management and execution by bridging the gulf between operational alignment and agility, as follows: • Taking the work – and inconsistency – out of operational review preparation • Giving business users accurate, contextual dashboards, With SAP Strategy Management, everything required to prepare scorecards, and reports for any type of operational review is centralized, certified as Leveraging the SAP NetWeaver® platform, SAP Strategy accurate, and instantly available for publication. This not only Management consolidates data from SAP and non-SAP systems saves valuable – and costly – preparation time for information so you can interact with performance-relevant information workers across the organization, but also allows management regardless of the source. Now, business users can get access to to define a more structured, consistent operational review the data they need in contextually appropriate, personalized preparation process. ways – without involving IT. And because the software offers transparency across all performance-related data from across the enterprise, stakeholders can trust the data behind the reporting tools and even drill down for additional levels of detail. 6
  7. 7. core functionS of SAp StrAtegy mAnAgement • Fostering greater collaboration and teamwork SAP Strategy Management delivers a modular set of functions SAP Strategy Management helps build an active community of that address the needs of executives, line-of-business managers, performance management users by promoting not just one-way and information workers across your enterprise. Key functions communication, but also collaboration. For example, your vice are grouped into the following categories: president of sales can give the director of marketing direct • Home (includes functions supporting operational reviews) access to pipeline data so they can work together on initiatives • Strategy to meet revenue goals. At the same time, the software increases • Initiatives transparency across the enterprise – which prevents sales from • Scorecards claiming, for example, that they have no knowledge of current • Dashboards marketing initiatives. Users can choose to subscribe to notifica- • Reports tions about initiatives within other departments to help them collaborate more effectively. Across all of these functional areas, the software provides the following universal features that help information workers stay The result is an end-to-end strategy performance management informed, collaborate more effectively, and work more solution that helps your organization achieve its goals swiftly and efficiently: confidently. • Threaded and searchable comments empower business users – and free up it resources Threaded and searchable comments facilitate effective discussions SAP Strategy Management gets your IT department out of the and collaboration, timely notifications and problem resolution, dashboard, scoreboard, and reporting business, which frees staff and efficient sharing of “best practices” throughout your to focus on other value-added initiatives. At the same time, it organization. allows you to provide your executives, departments, and business units with a flexible, long-term solution for monitoring, tracking, • Archivable notification and subscriptions managing, and reporting on operational performance. SAP Archivable notification and subscriptions notify users of changes Strategy Management is easy to deploy and allows you to lever- to goals, initiatives, and metrics or when specific action is age your organization’s current investments in SAP solutions required, ensuring that everyone is aware of the latest perfor- for even greater business value. It’s tightly integrated with core mance information. SAP business applications such as enterprise resource planning, customer relationship management, and supply chain manage- • Distributed entry, approval, and publishing ment. Equally important, it’s easy to administrate via a single Distributed entry, approval, and publishing streamlines the management console. process for getting performance management-related data – including objectives, targets, metrics, KPIs, and initiatives – into SAP Strategy Management. • Print-quality formatting Print-quality formatting takes the guesswork and manual labor out of creating documents that are consistently formatted and easy to read. 7
  8. 8. home: putting information at employees’ fingertips The SAP Strategy Management application provides a familiar, user-friendly interface that encourages adoption and minimizes ramp-up time (see Figure 1). The Home screen gives employees a personalized experience with access to their own view into SAP Strategy Management. From Home users access their in-boxes to view alerts (which are triggered automatically when predeter- mined thresholds are reached), as well as instantly see what per- formance information has recently changed. And everything they need to prepare for operations reviews is at their fingertips. The following key features enable this functionality: • Personalized performance summaries SAP Strategy Management allows employees to track the objectives, initiatives, and KPIs important to them. • Personalized bookmarks Figure 1: Condensed, Personalized Performance Summaries The software enables employees to highlight any page in the application for quick access to their home page. Increasing the Efficiency and Effectiveness of Operational Reviews • Subscription-based alerts Operational reviews are a vital part of the performance manage- Employees can “subscribe” to wireless-enabled alerts to receive ment process. Ideally, your executives would like to have weekly, instant notifications regarding changes to the relevant goals, monthly, and quarterly reviews. The challenge is that employees initiatives, and metrics. For example, a call center manager can often need months to organize the data, so the frequency is usu- subscribe to alerts regarding any new marketing campaigns ally determined by the feasibility rather than the business need. that will generate increased calls – information the manager Without the right tools in place, employees typically rely on needs to staff up appropriately. The software also archives these Microsoft Excel spreadsheets, Microsoft Access databases, and alerts in a comprehensive repository, which eliminates concerns other third-party intelligence queries to gather data from disparate over lost or misfiled e-mails. systems and process it for reporting. Complicating matters further is the fact that analysts typically need to make arbitrary decisions • Integrated operational reviews about what data to include, resulting in conflicting reports. SAP Strategy Management provides one-click access to published Monthly reports can take several weeks to prepare and tie up operational reviews – functionality that can transform opera- dozens of people across different business areas. And in the end, tional reviews from an occasional event to an ongoing process. there is no single version of corporate truth. 8
  9. 9. SAP Strategy Management simplifies and formalizes the process • Annotations of processing, gathering, and distributing information for opera- Employees can add annotations throughout an operational tional reviews. Because users can link strategies to specific goals review to highlight key points and ensure that those less and initiatives – and then link those to all of the metrics, activities, familiar with results know the real story behind the perfor- people, budget, and other data related to an initiative – all relevant mance data. data can be rolled up into high-level reports with drill-down capabilities (see Figure ). Everything is captured in one system of • Export to Adobe PDF record, so preparing for operations reviews is simply a matter of The software allows employees to save operational review creating Adobe PDFs of the relevant screens within SAP Strategy materials as an Adobe PDF, giving them flexibility to distribute Management. There is no need to bother IT with report requests, to other constituents besides users of SAP Strategy Management. as even custom reports can be handled by business users. Operational reviews can easily be printed, e-mailed, viewed on-screen as a slide show, or published to a Web site. By simplifying and standardizing the operational review preparation process, SAP Strategy Management can save your business thou- sands of working hours each year in data gathering and reporting. It also allows executives to establish clear expectations for reporting during operations reviews. And because all operations review reporting comes from the same trusted source – SAP Strategy Management rather than someone’s spreadsheet – concerns over data accuracy and validity are minimized. Key features that enable this functionality include the following: • User-driven publishing Employees at all levels can capture context-specific informa- tion within SAP Strategy Management and instantly publish “briefing books” tailored for different audiences. For example, while executives may only want to see pages on initiatives, goals, resources, and team summaries, project managers may require pages that provide additional layers of detail so that Figure : Link Activities, Goals, and Processes That Impact the Performance team members can discuss contingencies, dependencies, Objective and more. • Instant access to support the operational review During a live operational review, employees can go beyond the data published in a briefing book by instantly accessing the latest performance data. 9
  10. 10. Strategy: making it relevant to employees at All • Interactive goal diagrams with optional scoring levels Rather than relying on static diagrams, SAP Strategy Manage- Managing goals requires more than simply displaying current ment allows your users to create interactive goal diagrams that objectives; it requires that you motivate people to execute. If you provide one-click access to richer information such as detailed fail to get stakeholders interested in their roles and mindful of descriptions and supporting initiatives. As a result, employees the importance of their contribution, you will have an army of gain a greater understanding of your organization’s goals. The employees operating with disparate agendas and doing little to software also allows users to add scores to individual elements advance organizational objectives. of a goal diagram so that they can convert it into a traditional performance scorecard. An important aspect of motivation is presenting stakeholders with the big picture of your organization’s key long- and short-term • Software-generated and user-created goal diagrams goals. For example, the application’s “pathways” and “strategy SAP Strategy Management provides countless ways to visualize plans” can go a long way toward helping stakeholders piece operational data – from strategy maps and process diagrams to together the entire puzzle of how your organization seeks to goal summaries. This flexibility allows your users to try different achieve its vision. Pathways provide a high-level road map for the approaches and select the format that is most intuitive to them organization, illustrating a systematic path to achieving it. Strategy or easily understood by their target audience. As they switch plans show the relationship between various strategic objectives from one format to another, these diagrams never lose inter- and tell the story of how they enable the organization to achieve activity (such as drill-down functionality) or supporting docu- its overall mission – a step toward your company’s vision. mentation (such as related documents). Users can also import existing graphics and use a diagram manager to easily create SAP Strategy Management supports the strategy development new one-page visualizations. process by transforming written plans developed by executives – which are typically static, impenetrable documents – into living • Cause and effect strategy documents that employees can use to discuss, share, With SAP Strategy Management, users can gain a better under- and update goals. These documents can also include rich, con- standing of which objectives play primary, secondary, or tertiary textual visualizations that drive greater understanding of strategic roles in meeting other objectives. objectives across your organization (see Figures 3 and 4). The following features make this functionality possible: • Pathways The pathways feature, the first of its kind in the software industry, graphically depicts the progressive stages in realizing your organization’s long-term vision and helps everyone under- stand the phases in which particular objectives play primary, contributory roles. Figure 3: Visualizing Progress on Strategic Objectives and Vision 10
  11. 11. The following features make this functionality possible: • Initiative summaries SAP Strategy Management provides your users with an at-a- glance summary of the status of multiple initiatives across your business, providing insight into how they impact goals and objectives. • Fishbone visualizations The software supports “fishbone” visualizations, an intuitive view of the links between each strategy, goal, initiative, resource, and other elements of a plan. These visualizations highlight critical interdependencies between milestones so that employees can identify and resolve bottlenecks within an initiative. Figure 4: Rich, Contextual Visualizations for Greater Understanding and Accountability • Initiative prioritization SAP Strategy Management includes an innovative prioritiza- initiatives: linking initiatives with Daily operations tion matrix that provides an at-a-glance view of initiatives’ Typically, senior executives define the larger strategic objectives relative importance and urgency, as well as the dependencies for their organization (for example, increasing sales in South between individual initiatives and milestones (see Figure 5). America). Executives may define specific benchmarks to measure This insight helps ensure that both management and informa- performance against that objective (such as “double revenue by tion workers across your organization are focused on the right the end of the first quarter and triple revenue by the third quarter”). work and making the right decisions to support strategic Initiatives are the operational programs organizations undertake objectives. They always know what is expected of them and to achieve larger strategic objectives (for example, hire more sales when, as well as how their choices and actions impact other reps in Latin America in the first quarter, and launch an advertising aspects of initiative. campaign in the second and third quarters). • Initiative filtering SAP Strategy Management provides a clear link between your By limiting the display of initiatives by specific properties such operational processes and the objectives impacted by a given initia- as owner, budget or schedule status, and related objective, tive. The software provides simple summary views of initiatives SAP Strategy Management makes it easy for individual infor- supporting overall objectives, as well as functions for viewing mation workers to focus their attention on exactly what they the milestones supporting each initiative, the interdependencies need to get their work done. This filtering, or narrowing of between them, and schedule and budget status. This visibility focus, prevents employees from feeling overwhelmed and facilitates collaboration, helps identify bottlenecks, and enables ensures that they always know what to prioritize, from a task proactive corrective action. In addition, the software goes beyond perspective. simply tracking project resources and activities by helping your stakeholders prioritize and focus resources appropriately – even in the face of conflicting tasks – so that resources always support the most critical milestones. 11
  12. 12. • Automatic notification Scorecards: giving Departments greater control SAP Strategy Management provides notifications, or alerts, and visibility to appropriate employees when milestones are about to slip, Once your organization has defined its strategy and started to initiatives have changed, comments have been added, or execute specific initiatives to achieve it, you need a way to moni- owners are assigned new tasks. Employees receive these alerts tor progress on a regular basis. This requires that mechanisms are through their “home” portals. in place to systematically track implementation progress and alert stakeholders not only to issues, problems, and failures, but • Distributed ownership to bright spots and successes as well. Stakeholders can then SAP Strategy Management lets you distribute ownership of react quickly to problems, identify where things are broken, and overall initiatives and individual milestones across different correct issues in a timely manner. They can also identify what’s people. This functionality promotes effective collaboration working well so that it can be shared with other groups. and ensures employee accountability. Implementing tracking functions such as scorecards has tradi- tionally involved the creation of multiple departmentally focused, disconnected reporting initiatives, each managed by IT as separate projects. Often, IT has no context as to why the busi- ness needs access to operational data or how it will be used. Con- sequently, departments end up with inadequate levels of detail and inadequate functionality. In the end, IT is frustrated and overtaxed by new requests for information. And because depart- ments tend to base reports on different data sources and views, they generate reports with conflicting figures – a real frustration for executives. While IT departments can address some of these issues by forcing standardization on a set of scorecards – as well as reports and dashboards – it also means that IT is perceived poorly because departments can’t personalize their views. At the same time, these types of traditional, “narrow” scorecard approaches can be a one-off answer to solving a larger business problem around decision making or alignment. Scorecards can create organizational tension by highlighting problems that one Figure 5: Prioritization Matrix Showing Relative Importance, Urgency, and group denies (lacking full understanding of the data source, how Dependencies of Initiatives it is scored, and so on) or because the scorecard takes into account only one view of the business. Nor are scorecards usually linked to goal setting, the planning process, or resource plan- ning. As a result, they are rarely trusted by anyone other than the few people who created them. 1
  13. 13. With SAP Strategy Management, scorecards are viewed as just • Flexible scoring one of several options for monitoring and tracking progress (see Your users can score performance using multiple grading sys- Figure 6). They provide users with a personalized view of prog- tems, such as traffic light (red, green, yellow), grade school (A, ress toward specific outcomes, as well as drill-down functionality B, C), or gladiator (thumbs up, down) approaches. Using the to access supporting detail. Since all of the underlying data most appropriate system for your business and communica- comes directly from core operational systems and is used by SAP tion objectives can increase employee understanding of results Strategy Management to populate KPIs and enable planning and and improve adoption of the software. other activities, stakeholders know where the scorecard results are coming from and how the results were generated. They can also drill down into figures to access supporting data (see Figure 7). The following features make this functionality possible: • Readiness scorecards The software provides nearly unlimited views of performance, including a readiness scorecard that helps you determine when to move to the next phase of your performance management implementation, an objective scorecard to monitor perfor- mance toward goals, and a KPI scorecard to consolidate key financial and operational indicators. To ensure buy-in, key stakeholders are formally engaged in the process of setting them up. Figure 6: Objective Scorecards Monitoring the Health of Objectives and Related • Flexibility to combine and weight KPI types Initiatives and KPIs Dashboards within SAP Strategy Management give your users the flexibility to track various types of measures, including qualitative and quantitative, leading and lagging, and financial and operational measures. The software also allows them to monitor subjective or intangible objectives, such as analyst reviews, customer affinity, brand effectiveness, employee satis- faction, and field feedback. Users can also weight multiple KPIs to reflect their relative importance, giving them a more mean- ingful view of performance status. • Support for multiple targets The software supports multiple targets – including budget, forecasts, and benchmarks – allowing your users to compare actual performance against different sets of expectations, both internal and external. Figure 7: Drill-Down Scorecard Functions Provide Insight into Changes and Trends 13
  14. 14. Dashboards: providing flexibility and fast Access to • Role-based dashboards Supporting operational Data The software supports the creation of an unlimited number of Most companies lack the mechanisms required to track imple- dashboards by various departments or business units. As a mentation progress systematically and alert stakeholders not result, dashboards can be tailored for specific users, objectives, only to issues, problems, and failures, but also to successes. or groups. Dashboards can also be shared with all users, limited SAP Strategy Management empowers departments to create to a group, or kept private. dashboards that suit their particular needs. Plus, the data is all based on centralized, accurate, real-time operational data – one • Packaged dashboard templates version of the corporate truth that all stakeholders can agree SAP Strategy Management simplifies the process of creating upon. These live, role-based dashboards allow users to monitor dashboards by including a wide variety of dashboards such as critical input and output metrics for a given function, organiza- benchmarking, trending, ranking, and contributions. Users tion, or role. For example, a marketing director’s dashboard can build a dashboard from scratch or personalize an existing might include summary information about advertising costs per one to better fit their needs. lead, while a sales manager’s might include new opportunities created, deals stuck in the pipeline, and sales performance by • Multiple-model dashboards region. Dashboards can include up to four different panels, and each can pull data from different data sources. As a result, you get Unlike static dashboards that provide only summary information, a broader view of performance. SAP Strategy Management can be linked to underlying analyses, allowing for deeper investigation to isolate and understand the • Scorecard filtering drivers of performance (see Figure 8). Dashboards also can be Users can limit the display of scorecards by specific properties expanded beyond functional groups and made public (for everyone such as organization, region, time period, or score to focus to view) or kept private (to be viewed only by the individual who attention on issues that demand immediate attention. created it). • Automatic notifications The following features make this functionality possible: SAP Strategy Management automatically generates notifica- tions – in the form of annotations – when objectives look fine • Live dashboards with drill-down functions on the surface, but may actually be in danger of failing. Dashboards are automatically refreshed to ensure that the most up-to-date performance is always available. Integrated • KPI summaries drill-down functions enable deeper probing into areas of interest. The software makes it easier to monitor the health of KPIs by For example, you can go directly from dashboards into related providing supporting detail such as KPI descriptions, gaps reports to isolate and understand performance drivers and between actual and target figures, trends, and comments. roadblocks to progress. These summaries provide context for KPIs so that everyone understands how changing numbers actually impact perfor- mance. Trending of KPIs over time also helps employees at all levels understand not only how they did last week, month, or quarter, but how they have been doing over an extended period of time. 14
  15. 15. • Packaged analysis templates The software provides a wide variety of analytic templates that users can choose from to analyze information, including ranking, trending, and forecasting templates. • Flexible charting SAP Strategy Management gives users multiple ways to chart their data. They can select the visualization option and colors most appropriate for displaying data in reports and save these figures for future use. • Performance comparison versus previous periods The software makes it easy for users to examine progress versus historical performance. They can view performance comparing Figure 8: Live, Actionable Dashboards Showing Results in Context specific dates (as defined by the user); relative dates (for example, latest day, previous day, last seven days, and previous month), reports: empowering business users with Self- and the latest date versus previous equivalent (for example, Service current month versus same month prior year). SAP Strategy Management gets IT out of the report generation business – and empowers executives, line-of-business managers, • Report descriptions analysts, and information workers to run standard reports by Your domain experts can write report descriptions that provide themselves using the most up-to-date corporate data. The software context to other readers; for example, they may include a includes an easy-to-use interface enabling business users from statement of the report topic and its information source. different functional areas to quickly measure ongoing progress toward objectives. And unique features, such as “time intelligence” functionality, make it easy to manipulate attributes and create user-defined hierarchies for customized analysis – without placing additional demand on IT. For analysts seeking more in-depth analysis to aid decision mak- ing, ad hoc analysis functions provide virtually boundless options to measure and uncover the root of performance issues (see Figure 9). Integrated forecasting functions help analysts project future performance and plan ahead based on current data. The following features make this functionality possible: • Dynamic reports with ad hoc analysis SAP Strategy Management enables the creation of dynamic Figure 9: Ad Hoc Analysis with Drill-Down Functions Showing Source Data reports, rather than traditional static reports. Integrated business and Metrics intelligence enables you to drill deeper into areas of interest and save reports as a bookmark for later review. 15
  16. 16. ADminiStrAtive AutomAtion functionS SAP Strategy Management lightens the burdens of information • Web forms or Microsoft Excel templates workers and IT staff by providing universal features that stream- Employees can enter metrics values using forms built into the line data entry and approval processes and support self-service software or via Microsoft Excel. Data can be imported from functions for configuration and modeling. Microsoft Excel spreadsheets or entered via a Microsoft Excel– based template. Data can also be manually entered using the entry and Approval functions software’s Web-based entry and approval method for entering SAP Strategy Management includes a distributed and delegated data. entry, approval, and publishing component, unique in the indus- try, that streamlines the process of populating metrics into a • Flexible collection methods performance management system. An easy-to-follow workflow You can automate the entry of some values (for example, actuals system provides structure around a traditionally labor-intensive from source systems such as the SAP ERP application), while process, alleviating costly errors and significantly reducing the still allowing employees to manually enter other values, such time spent on metrics collection and approval. Additionally, this as targets, forecasts, and survey data. This flexibility encourages approach allows your organization to collect metrics quickly more regular and accurate updates of performance without the need to integrate transactional systems or establish information. a data warehouse just for one or two metrics. • Audit trails The following features make this functionality possible: The software automatically generates an audit trail that captures user interactions, including time stamps for approval, rejections, • Distributed entry and approval submissions, notes, and other related information. These audit Departments can divide and assign work across different trails increase compliance and provide insight into why actions employees to lighten the workload of any one person. Lightening were taken. workloads also encourages employees to make more frequent updates of performance information, which results in more • Notes up-to-date and accurate reporting. Employees can add notes to capture information directly into the software for future reference or to share best practices – • Automatic notifications rather than making calls and sending e-mails. The software automatically notifies employees (through their “home” portal) when they need to enter, approve, or publish • Progress monitors metrics. As a result, there are fewer bottlenecks in performance SAP Strategy Management monitors the data entry approval management processes. and publishing process to provide visibility into bottlenecks. It also provides a structured workflow for entry, notifications, and approvals to help alleviate gaps, risks, and time required to manage KPIs. 16
  17. 17. configuration and modeling functions • Model builder SAP Strategy Management lightens the burden of already over- You can create a standardized performance management data loaded IT staff by supporting the distribution of administrative repository; when using the software’s modeling functionality, tasks to multiple people throughout your organization. Unlike a consistent set of metrics aligns operational execution with software that relies on expert administrators, SAP Strategy Manage- strategy. ment promotes self-service, allowing every user to configure the application. Similarly, unlike most business intelligence tools, • Active directory/Lightweight Directory Access Protocol SAP Strategy Management allows business users to design and integration customize performance processes, models, and visualization The software minimizes duplication of information and supports methods based on their requirements. And because it is built on single sign-on access by importing user information from your open standards such as Java Platform, Enterprise Edition, organization’s own authentication systems. SAP Strategy Management easily fits into your existing IT environ- ment and complements your organization’s current systems. • Audit trails and logging The software enhances system integrity by keeping track of The following features make this functionality possible: who did what and when. • Distributed administration You can assign specific permissions and roles, such as user setup, metrics updates, and initiative creation, to the appropriate employees in other departments. • Scheduling Built-in scheduling allows you to automate certain manual tasks such as hosting business reviews, gathering stakeholder feedback, and submitting reports, ensuring consistency and repeatability. • Role-based security The software supports role-based security so that users receive access to performance information appropriate for their role. 17
  18. 18. powereD by SAp netweaver for more informAtion SAP Strategy Management is powered by the SAP NetWeaver The comprehensive functionality of SAP Strategy Management platform. SAP NetWeaver unifies technology components into a addresses the underlying barriers holding your organization single platform, allowing organizations to reduce IT complexity back from understanding operational effectiveness and achieving and obtain more business value from their IT investments. It pro- its strategic objectives. For more information, please visit vides the best way to integrate all systems running SAP or non- www.sap.com. SAP software. SAP NetWeaver also helps organizations align IT with their business. With SAP NetWeaver, organizations can compose and enhance business applications rapidly using enterprise services. As the foundation for enterprise service-oriented architecture (enter- prise SOA), SAP NetWeaver allows organizations to evolve their current IT landscapes into a strategic environment that drives business change. 18
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  20. 20. www.sap.com/contactsap 50 084 168 (07/04)