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Driving Business Performance with Cognos 8 Scorecarding


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Driving Business Performance with Cognos 8 Scorecarding

  1. 1. Driving Business Performance with Cognos 8 Scorecarding Greg Ferenc Nagy, IBM Cognos, AT/EE, CIS/Russia
  2. 2. Agenda <ul><li>Financial Performance Management </li></ul><ul><li>Strategy Execution Failure </li></ul><ul><li>Strategy Management </li></ul><ul><li>Scorecard Definition </li></ul><ul><li>Cognos 8 Scorecarding </li></ul><ul><li>Common Scorecarding Pitfalls </li></ul><ul><li>Top Down Scorecarding Approach </li></ul>
  3. 3. FPM – A Specialized View of PM Finance Product Development Operations Human Resources IT/Systems Customer Service Marketing Sales Financial Consolidation and Scorecarding Monitor strategy and report with confidence Why? How are we doing? What should we be doing? Financial Analytics and Reporting Analyze and optimize performance Enterprise Planning Plan, forecast and control enterprise resources Why? What should we be doing? How are we doing?
  4. 4. <ul><li>How well do you know your Corporate Strategy? </li></ul><ul><li>Can lay it out on paper in casual conversation </li></ul><ul><li>Could put it together with a little thought and time </li></ul><ul><li>Not sure it is communicated to my level of the organization </li></ul>Question
  5. 5. Strategy Execution Failure <ul><li>Less than 10% of companies successfully execute their strategy (Fortune Magazine) </li></ul><ul><ul><li>Mediocre growth </li></ul></ul><ul><ul><li>Lost market share </li></ul></ul><ul><ul><li>Lower profitability </li></ul></ul>
  6. 6. Reasons for Strategy Execution Failure <ul><ul><li>Lack of strategy communication </li></ul></ul><ul><ul><li>Lack of ownership & accountability </li></ul></ul><ul><ul><li>Lack of focus on strategic objectives </li></ul></ul><ul><ul><li>Lack of a comprehensive business view </li></ul></ul><ul><ul><li>Lack of strategic initiatives </li></ul></ul>
  7. 7. Strategy Management <ul><li>Drive strategy execution from the top </li></ul><ul><li>Translate strategy into terms everyone can understand </li></ul><ul><li>Align every part of the organization </li></ul><ul><li>Make strategy everyone’s job </li></ul><ul><li>Make strategy a continual process </li></ul>
  8. 8. Gartner Scorecard Definition <ul><li>A scorecard is an application that helps organizations measure and align the strategic and tactical aspects of their businesses, processes and individuals via goals and targets. </li></ul><ul><ul><li>Require a more structured approach and framework than a dashboard, making use of a management methodology such as BSC, TQM, or Six Sigma. </li></ul></ul><ul><ul><li>Helps manage your performance </li></ul></ul>
  9. 9. Cognos 8 Scorecarding <ul><li>Automates the strategy management and scorecarding process allowing an organization to link strategy to execution </li></ul><ul><ul><li>Track the organization’s performance against strategic objectives </li></ul></ul><ul><ul><li>Communicate the strategy across the organization </li></ul></ul><ul><ul><li>Ensure accountability and ownership </li></ul></ul><ul><ul><li>Provide departmental and employee focus </li></ul></ul><ul><ul><li>Link strategy to resource management (budgeting) </li></ul></ul>
  10. 10. Common Scorecarding Pitfalls <ul><li>Too many non-important metrics in a scorecard </li></ul><ul><li>No strategic importance </li></ul><ul><li>Chasing non-strategic reds </li></ul><ul><li>Initiatives/Projects/Reports not aligned with strategic objectives </li></ul>
  11. 11. Top down approach
  12. 12. Strategic View – Focus on Prioritization
  13. 13. Operational View – Focus on Understanding
  14. 14. Diagnostic View – Focus on Direction
  15. 15. Analytic View - Prescriptive
  16. 16. Q/A Q & A