Corporate Performance Management Added value of CPM approach and how to build it. Centralized approach and cross analyze

1. 1
Corporate Performance Management
The not so Cold Performance Man
Emmanuel PHALIPPON
ephalippon@laposte.net

2. Agenda
2
Introduction
For which goal
4 steps to draw
IS Support
CPM definition
Model1
2
3
4
Model proposed to
show CPM
What to expect from a
CPM approach
Steps identified to
build model
IS infrastructure
to support this
model
Agenda

3. What is CPM
CPM is a way to structure your system and
processes to analyze performance
Finance is often core in this approach but should
be extended to all domain
It needs a centralized approach but flexible to
facilitate
3Introduction

4. Model
4
Storage
Organisation
Analysis
KPI - Dashboards
Reports
Ad Hoc queries
Consolidation (financial)
Hierarchies (geography, P&L, Time, product …)
Modelization and optimatization
Mapping to common base
ERPs, CRMs, SCMs, HRs, IO, external sources
through organisation
Dataflow
Model
A strong
base of
data collect
Master data
and
architecture
Value for
users

5. Adding Presentation
5
Data not shared are not useful
What did you do with these data
Predefined
reports
Excel, PPT, PDF, web
portal
Dynamic BI
Navigate into data
(drill down, select)
Structured
data
For interface (Excel,
txt)
Ad Hoc
Queries
Specific and not
recurrent
Ad Hoc
presentation
PPT
Make
decisions
Model

6. Qualitative
6
Storage
Organization
Analysis
Ability to capture comments
Structured with bullet points
Impact
Key driver
Time horizon
Unstructured for text explanation
Data without explanations are not
as powerful
Model
Data builds information to focus
qualitative to make decisions

7. Budget and forecast
7
Storage
Organization
Analysis
Ability to capture budget and
forecast
Granularity of entries for adequate
comparison with actuals and deep
dive enough for performance
tracking
Define targets to apply company
strategy
Model

8. To make this model moving :
A centralized team
8Model
• Centralize and harmonize structure
• Same way to see for different data
• Keep flexible to adapt to perpetual changes
• Manage Security
• Keep user ease with frontend tool
• Ensure synchronization between objects
• Coordinate with IS
• Define calendars and follow progress
• Facilitate processes
• Manage referential of master data to guarantee
same views and global alignment
• Share master data
• Help with mappings from local to global
Run and
Coordinate
processes
Master
data
Tools
Architecture
CPM
Team

9. What we gain
9For which goal
A strong
base of
data collect
Master data
and
architecture
Value for
users
analysis
• Unique referential of master data to guarantee
same views and global alignment
• Not multiple technology inside company
• Capitalize on experiences and users skills
• Flexibility regarding local source structures
• Capacity to aggregate multiple sources
• Users capacity to find an organized data
• Same structure for different domains to facilitate
information research and crossing
• Different levels of information from very
aggregated to detailed figures
Value for
decisions
• Capacity to deliver synthetic and qualified
information
Global and cross domain answers for decisions
Identification through Reports -
High level dashboards
Dig using drill down (hierarchies
or dashboard bridges)
Cross figures and qualitatives
information
Decisions
Answers
Hints
Questions

10. User oriented
10
Users empowered in data use
KPI and information
High level for dashboards
Low level for details, explanations to get answers
Ability to drill down easily through hierarchies,
alone in tools they handled
 Same skills developed across community
 One set of skills for all sources
 Facilitate crossing data with a unique place
For which goal

11. Continious improvment
11
Can’t build all at once, but enrich each time a bit more
For which goal
We started with
Finance
Supply joined and
Finance continue
to grow
IO joined model Target is all company is
concerned
Finance Finance Supply Finance Supply
IO
Commercial
Directi
on
Finance
Supply
IO
Perpetual evolution to adapt to new needs/changes

12. To achieve a global view
12
but from an unique source of data to avoid
different views
IS
Commercial
Tax
IO
Supply
Marketing
Finance
Legal
Quali
ty
planDirecti
on
Communi
cation
Goals
 Sharing same vocabulary
 Avoiding different figures for same thing
 Be able to do cross domain indicators
 Applying global and coherent security by
restricting data access same way
 Sharing targets
Data source
For which goal

13. Achievements at Merial (Sanofi Animal
Health) actuals, budget and forecast
13For which goal
KPI
Management
Center- P&L Line
Local Account – Cost
Center
KPI
Hierarchies
Item - Country
KPI
Hierarchies
Local Inventory
KPI
Function -
Geo
Employee – Cost
Center
Expenses
(GM, OPEX, Cost
to Serve,…)
Sales (PGM%,
Dispersion,
Accuracy,
Backorder,
MAT,…)
KPI
AR - Royalties
- Sales
Inventory
(MOC, Stock,
Destruction,…)
Headcount
(In-out,
temporaries
ratio,…)
Working
Capital
(DSO)
Dashboards
using bricks to
build a global
view
IO ActivityPerso Costs
IS Costs

14. Indicators interactions
14
Inventory
(Destruction,
Stock)
Demand
(Production
Plan)
Prod
(Production
adherence)
Breaking silos to provide a company
global story and alignment
Impacts across organization
Decisions versus company strategy
Target and current performance
Market
(market share)
Capacity
(Production
Capacity)
Profitability
(PGM)
For which goal

15. 4 steps approach model
15
Building bricks to manage this high
quantity of information
Presentation
Analysis
Organization
Storage
How I want to
show them to
everybody
Support type, format (chart
or table), navigation ,
selection and drill down
What data I need
Lowest level of data and
mapping to have a
common base
What I want to show
Key Indicators, reports
(templates), multi domain
data crossing
How I structure
these data
Hierarchies to aggregate
data, dimension of
analysis
4 Steps to draw

16. Storage
16
LocalBusinessdataextract
Local tools
ERP
Supply
Excel
Local structure
Cost Center - Accounts
Item code
Local units of figures
currency Mapping-Daatwarehosue
Common structure and mapping
from local to this common
definition
Global Chart of account
Company item referential
Frequency of synchronisation
from local to global storage
Finance closing = Monthly
Rates conversion to unique
currency
How to collect data from local to a
common base of data
4 Steps to draw

17. Organisation
17
ContentManagement–Masterdata
Hierarchies to aggregate data to
provide synthetic reports
Country – Key Country – Region – Total
Item– Product – Key Product – Total
Dimension for analysis
Comparables set of data
Historical previous year restated
Budget
Architecture
Data organisation to match
reporting – analytical needs
YTD – YTG time
Data capture for comments,
figures,….
Data consolidation with rules
Financial consolidation
Calculation of Indicators
Days Sales Outstanding
Employee Turnover
Month Of Coverage
Dispersion
What to put in place to answer and
analyze
4 Steps to draw

18. Analysis
18
Indicators
Data aggregated results
Check if we are on track of
company strategy
Key Indicators versus referential
Internal : Previous year, Targets
External : Market, good practices
Reports
Corporate reports
Monthly Sales report
Monthly Inventory
Ad hoc requests
Alignement from global to local
How are we doing and what we can
follow
4 Steps to draw

19. Presentation
19
Visualrepresenation
Chart for quick understanding
Bridge, speedometer, bar charts, MAT 12
months
Simple tables to show information
User friendly with filtering and
drill down option
Same data with different axes
Sharedinformation
Security – data restriction
Same data source
Same wording
Providing feedback on
performance
Help in decision process to follow
company strategy
How to spread information across
organization
4 Steps to draw

20. IS support
IS bring their competencies on
Infrastructure robustness and sizing
Sharing tools like Citrix
Database/tools monitoring and performance
ETL processes extract (from ERP, …) to load (in a datawarehouse,…)
Security on data (active directory, …)
20
CPM is cross organization and functions so it
manipulates a lot of data
IS Support

21. IS view of a snowman model
21
Storage
Organisation
Analysis
KPI (definition of indicators)– Dashboards
Reports (predefined or with parameters)
Ad Hoc queries – (OLAP, BI)
Consolidation rules and processes (calculation engine)
Hierarchies unique database (referential)
OLAP – Datamart to structure data
Datawarehouse
ETL - Mapping using referential
ERPs, CRMs, SCMs, HRs, IO, external sources
extraction
Reportingtools,Webportal,BItools
IS Support

22. What tools we are using
22
•TM1 with
perspective
Enterprise Performance
Management (EPM)
(OLAP cubes)
• SQL Server SSRS
BI
(Web portal)
• SQL Server and
dotnet upload
tool
Database/ETL
(DWH, datamart)
•Qlikview Dynamic BI (dashboards)
Predefined
reports
Ad hoc
reports
Navigation
in data
Structured
data
Export to PPT,
Excel, PDF, doc
Excel formated
Templates
Static reports
Drill down
analysis and
export
Excel Templates
Export table to
flat file
Export flat table
Static table
report to save in
a file
Generate a flat
file
Drill down
analysis
Excel Templates
Select some
parameters
IS Support

23. Some CPM key success points
23
« Centralized » team to keep a global and
common logic with support from Super Users and IS
Unique central global master data management
to ensure harmonize data view
Work cross domain to have a story with a single version
of the truth shared by everyone
Empower users from local to corporate with adapted data
and visual presentation
Continuous improvement and adaptation to
keep contact with users and business
Performance
analysis and
making
decisions to
operate
efficiently the
business
Conclusion

24. Thank you for your attention
24
CREDITS
Linkedin
Emmanuel PHALIPPON
© Copyright Snowman model