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Performance Management And Agilty
 

Performance Management And Agilty

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A presentation on the power of decision management to turn passive dashboards into active cockpits by giving business executives the knobs and levers they need to control their systems.

A presentation on the power of decision management to turn passive dashboards into active cockpits by giving business executives the knobs and levers they need to control their systems.

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  • Alignment sessionAgility is in and latency is out. But are companies focusing on instrumentation to the detriment of agility? Significant investments have been made in performance management. These performance management systems create value by identifying opportunities or threats. But how much more value could you capture if you could rapidly and accurately change your systems to exploit these opportunities or address these threats? What if you could look at your dashboard and respond to what you learned by directly changing the way your systems, and thus your company, behave? This session will discuss the need to balance performance monitoring and decision management to maximize both awareness and agility. Decision Management transforms your investment in instrumentation into an investment in agility. Agility translates to direct impact on your key business priorities—cost competitiveness, differentiation, customer retention and growth. Agile systems make your whole enterprise more responsive to change.45minsOver instrumented enterprise
  • More Automated Systems taking action in response to eventsMoving from human monitoring to automated monitoringIncreasing the range of actions that systems can take without waiting – avoid the mountain don’t tell someone its coming
  • Real-time display of what is going onAggregated and visualized to make it easy to absorbIntegrated external data (the equivalent of GPS, mapping and terrain data)
  • Most system dashboards are just instrument clustersReal cockpits have knobs, levers, switchesMust be able to act as easily as you can understandActions that are simple to take but which have complex outcomes
  • More Automated Systems taking action in response to eventsMoving from human monitoring to automated monitoringIncreasing the range of actions that systems can take without waiting – avoid the mountain don’t tell someone its coming
  • Potential ImpactLearn then DoExperimentationPractice for the “Big One”Executives need to understand the potential impact of their actionsAdaptive Control or Champion/Challenger is part of itApplying potential decisions to see what they impact would be before applying them is the next frontier
  • Greater agilityOrganizations that can see what is happening faster and use their data to understand the implications can re-set targets and plans, re-allocate resources more quickly. Performance management creates a culture of measurement and transparency and this makes it easier for companies to respond more quickly, with greater agilityBetter decisionsAnd peformance management, by putting data and analysis in the hands of decision makers, should improve the quality of decision making and support data-driven decisions. Control PerformanceSet and re-set targets, plans and resource allocations quicklyReduce costs and increase working capital by closely monitoring and understanding company spending.Increase profitability by gaining insight into your best and worst customers, channels, and products.Understand cost and profit driversManage RiskManage OpportunitiesDashboards and other performance management tools allow you to identify opportunities and threats more readily, more quicklyGood performance management tools also allow you to update risk management strategies and focus on opportunities more systematically nd consistently across the organization The ability to manage what-if scenarios and do simulations is particularly important in this regardUnderstand the impact of changes so you can align operational capacity and support functions with demand.
  • But a dashboard-centric performance management approach is focused on people that make decisions, not systems who make decisionsPerformance management won’t deliver greater agility if the decision is embedded in a system, or better decisions if they are being made by a system and won’t give you much control over systemsSimilarly it is focused on macro drives, macro risk and macro opportunities not micro ones.How’s my risk profile changing not what’s my exposure on this transaction
  • What decisions does someone make while looking at a dashboard?Can it be automatedWhat decision will they want to make differently based on what they see?Do they have control of itIs it in a systemWhen they drill down what level do they reachAnd can their systems and processes respond at that level of granularity
  • Build decision services to automate the decisions rather than waiting for a dashboard user to make the decision (and match the algorithm to the visualization)Externalize decisions that dashboard users will want to change using business rulesIdentify the micro decisions – customer or transaction specific decisions – so you can match drill down levels
  • Close the loop by making the decision itself something for which there is a dashboard performance management environmentLink the what-if scenarios and simulation to individual decisions, individual transactions, not just aggregations/estimates e.g process simulation example

Performance Management And Agilty Performance Management And Agilty Presentation Transcript

  • Performance Management and Agility
    James Taylor,
    CEO
  • The one slide you need
    Performance Management
    measures and monitors
    supports people who make decisions
    But systems make decisions too
    Decision Management
    makes system decisions explicit
    The combination builds cockpits
    not dashboards
  • AGENDA
    1
    The pilot analogy
    2
    Performance Management or
    Performance Monitoring
    3
    From dashboards to cockpits with Decision Management
  • The pilot analogy
  • The business executive as fighter pilot
  • But cockpits have controls not just dials
  • And planes have auto pilots
  • And pilots learn on simulators
  • Decision Management
    Automates decisions
    So your systems have an auto pilot
    Exposes how decisions are made
    So you have knobs and dials
    Allows for simulation
    So you can experiment and learn
    ©2009 Decision Management Solutions
    9
  • Performance Managementor Performance Monitoring?
    ©2009 Decision Management Solutions
    10
  • ©2009 Decision Management Solutions
    11
    Understand drivers
    Manage risk
    Manage opportunities
    Greater agility
    Better decisions
    Control performance
    The power of performance management
    Control
    Understanding
  • ©2009 Decision Management Solutions
    12
    Understand drivers
    Manage risk
    Manage opportunities
    Greater agility
    Better decisions
    Control performance
    The barriers to performance
    Control
     People
     Computers
    Understanding
     Macro
     Micro
  • ©2009 Decision Management Solutions
    13
    Systems do
    But operationally, one transaction, or one customer at a time
    People don’t make many of the decisions in your business
    Risk and opportunity do not come only in strategic lumps
    Reality check
  • From dashboards to cockpits
    ©2009 Decision Management Solutions
    14
  • Delivering decision management
    ©2009 Decision Management Solutions
    15
    3 Steps
    Create a “closed loop” between operations and analytics to measure results and drive improvement
    Design and build independent decision processes to replace decision points embedded in operational systems
    Identify the decisions (usually about customers) that are most important to your operational success
  • Step 1: Decision discovery
    ©2009 Decision Management Solutions
    16
    What decisions does someone make while looking at a dashboard?
    What decision will they want to make differently based on what they see?
    When they drill down, what level do they reach?
  • Step 2: Decision Services
    ©2009 Decision Management Solutions
    17
    Build decision services to automate the decisions rather than waiting
    Externalize decisions that dashboard users will want to change
    Identify the micro decisions and match drill down levels
  • Step 3: Decision analysis
    ©2009 Decision Management Solutions
    18
    Give the decision itself a dashboard
    Link what-if scenarios and simulation to individual decisions
  • Take action for agility
  • Action plan