Performance management and agilty

Performance Management and Agility
James Taylor,
CEO

About me
Independent consultant working with clients to help automate and improve decisions
Previously a VP at Fair Isaac whereI developed the concept of Decision Management
20 years experience in all aspects of software including time in PeopleSoft R&D and at Ernst & Young
Blogger, speaker, writer
james@decisionmanagementsolutions.com

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
Performance Management or
Performance Monitoring
2
The pilot analogy
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From dashboards to cockpits with Decision Management

Performance Managementor Performance Monitoring?
©2009 Decision Management Solutions
5

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Understand drivers
Manage risk
Manage opportunities
Greater agility
Better decisions
Control performance
The power of performance management
Control
Understanding

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Understand drivers
Manage risk
Manage opportunities
Greater agility
Better decisions
Control performance
The barriers to performance
Control
 People
 Computers
Understanding
 Macro
 Micro

8
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

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
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From dashboards to cockpits
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Decision Management is
A business discipline that builds on existing enterprise applications to
put data to work
manage uncertainty
increase transparency
give the business control

5 principles of decision management
Little decisions add up so focus on operational decision making
The purpose of information is to decide so put your data and analytics to work
You cannot afford to lock up your logic so externalize it as business rules
No answer, no matter how good, is static so experiment, challenge, simulate, learn
Decision Making is a process so manage it
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Decisions drive actions
A choice, a selection
Made after consideration
Results in action not just knowledge
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The business value of decisions
Type
Strategy
Tactics
Operations
Economic impact
Low
High

“Making information more readily available is important, but making better decisions based on information is what pays the bills.”
James Taylor & Neil RadenSmart (Enough) Systems
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Business rules for agility, transparency

Analytics add business insight
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Descriptive Analytics
Predictive Analytics
Business Intelligence
Optimization/Simulation
Who are my best/worst customers? How do I turn my data into rules for better decisions?
How are those customers likely to behave in the future? How do they react to the myriad ways I can “touch” them?
How do I use data to learn about my customers? What has been happening in my business?
How do I leverage that knowledge to extract maximum value from my marketing investments?
Knowledge - Description
Action - Prescription

Reduce time-to-action
Business event
Decision latency
Action taken

24
Delivering Decision Management
3 stages to better operational decisions
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

The Decision Management technology stack
Business Process Management
Web Services
PerformanceManagementKPIs
VisualizationBI
Adaptive Control
Decision Service
DescriptiveAnalytics
PredictiveAnalytics
Optimization
DatabaseData Warehouse
In-databaseAnalytics
Business Rules
Enterprise Platform

Action plan

27
Shameless commerce
Decision Management Solutions can help you
Focus on the right decisions
Implement a blueprint
Define a strategy
For assistance, to find out more or if you have questions
decisionmanagementsolutions.com/learnmore

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Performance management and agilty

by Decision Management Solutions on Apr 21, 2010

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Performance management and agilty — Presentation Transcript