Strategy by Measurement

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Strategy is not new for many business executives. Yet, many few companies can truly link their strategy to action.

Organizations need to implement EPM based on a measurement system to empower people, process and technology to deliver what is strategized!

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  • Success is the accomplishment of goals and fulfillment of purpose. It is shared with all stakeholders and is aligned with mission, vision and values.

    Success is achieving performance
  • Success is the accomplishment of goals and fulfillment of purpose. It is shared with all stakeholders and is aligned with mission, vision and values.

    Success is achieving performance
  • Strategy by Measurement

    1. 1. Strategy by Measurement From Butterfly Effects to Success Atif Abdul-Rahman
    2. 2. A single flap of a butterfly’s wing CAN lead to a tornado elsewhere…
    3. 3. A SINGLE measure in a company can make or break the business.
    4. 4. Although a bit exaggerated, many companies have seen similar effects…
    5. 5. Strategy by Measurement
    6. 6. Strategy
    7. 7. Strategy …is the plan to act
    8. 8. Strategy …is the plan to act Act…to achieve goals
    9. 9. Strategy …is the plan to act Act…to achieve goals Goals…that define Purpose
    10. 10. Purpose
    11. 11. Purpose “A group of people get together and exist as an institution that we call a company so they are able to accomplish something collectively that they could not accomplish separately, they make a contribution to society, Do something which is of value.” -David Packard
    12. 12. Purpose “A group of people get together and exist as an institution that we call a company so they are able to accomplish something collectively that they could not accomplish separately, they make a contribution to society, Do something which is of value.” -David Packard The Vision…
    13. 13. Purpose “A group of people get together and exist as an institution that we call a company so they are able to accomplish something collectively that they could not accomplish separately, they make a contribution to society, Do something which is of value.” -David Packard The Vision… The Mission…
    14. 14. Purpose “A group of people get together and exist as an institution that we call a company so they are able to accomplish something collectively that they could not accomplish separately, they make a contribution to society, Do something which is of value.” -David Packard The Vision… The Mission… The Core Values…
    15. 15. Purpose “A group of people get together and exist as an institution that we call a company so they are able to accomplish something collectively that they could not accomplish separately, they make a contribution to society, Do something which is of value.” -David Packard The Vision… The Mission… The Core Values… All define the Purpose
    16. 16. Am I meeting my Purpose?
    17. 17. Am I meeting my Purpose? Am I Successful?
    18. 18. Success
    19. 19. Success Success is the accomplishment of goals and fulfillment of purpose. It is shared with all stakeholders and is aligned with mission, vision and values.
    20. 20. Success Success is the accomplishment of goals and fulfillment of purpose. It is shared with all stakeholders and is aligned with mission, vision and values. Success is exceeding performance
    21. 21. But How to you define Performance? How Performance
    22. 22. But How to you define Performance? How Performance But how do you define performance?
    23. 23. But How to you define Performance? How But how do you define performance? How do you track it and then act upon it? Performance
    24. 24. But How to you define Performance? How But how do you define performance? How do you track it and then act upon it? How do you know that the ‘SYSTEM’ is truly measuring performance? Performance
    25. 25. • The SYSTEM measures, monitors and manages performance.
    26. 26. • The SYSTEM measures, monitors and manages performance. • However, The SYSTEM may not be even present in the first place!
    27. 27. Performance
    28. 28. Performance Measure
    29. 29. Performance MeasureWhat does it take to succeed?
    30. 30. Performance MeasureWhat does it take to succeed? Each business unit has to define its performance based on its strategy, enterprise infrastructure, corporate culture and its environment.
    31. 31. Performance MeasureWhat does it take to succeed? Each business unit has to define its performance based on its strategy, enterprise infrastructure, corporate culture and its environment. By scoring performance, businesses can truly gauge their standings.
    32. 32. Performance MeasureWhat does it take to succeed? Each business unit has to define its performance based on its strategy, enterprise infrastructure, corporate culture and its environment. By scoring performance, businesses can truly gauge their standings. What Gets Measured, Gets Done!
    33. 33. Performance Monitor
    34. 34. Performance MonitorSuccess demands agility, the ability to shift directions, change course of actions and evolve!
    35. 35. Performance MonitorSuccess demands agility, the ability to shift directions, change course of actions and evolve! This calls for timely monitoring of performance.
    36. 36. Performance MonitorSuccess demands agility, the ability to shift directions, change course of actions and evolve! This calls for timely monitoring of performance. This gives right time for action, faster decision making and brings the power of control back to the people.
    37. 37. Performance MonitorSuccess demands agility, the ability to shift directions, change course of actions and evolve! This calls for timely monitoring of performance. This gives right time for action, faster decision making and brings the power of control back to the people. Monitoring gives Business Insight
    38. 38. Performance Act!
    39. 39. Performance Act!“Change is the process by which the future invades our lives “ Alvin Toffler
    40. 40. Performance Act!“Change is the process by which the future invades our lives “ Alvin Toffler Act & take control of the environment before the environment changes and takes control of U
    41. 41. Performance Act!“Change is the process by which the future invades our lives “ Alvin Toffler Act & take control of the environment before the environment changes and takes control of U Develop a plan and execute it!
    42. 42. Performance Act! Strategy + Action = Performance “Change is the process by which the future invades our lives “ Alvin Toffler Act & take control of the environment before the environment changes and takes control of U Develop a plan and execute it!
    43. 43. “Knowing what to measure and how to measure it makes a complicated world much less so. If you learn how to look at the data in the right way you can explain riddles that otherwise might have seemed impossible. Because there is nothing like the sheer power of numbers to scrub away layers of confusion and contradiction.”
    44. 44. That SYSTEM is EPM
    45. 45. EPM = CPM (corporate) = BPM (not process) EPM
    46. 46. EPM = CPM (corporate) = BPM (not process) EPM Enterprise Performance Management
    47. 47. EPM = CPM (corporate) = BPM (not process) EPM Enterprise Performance Management Performance has to be managed!
    48. 48. EPM = CPM (corporate) = BPM (not process) EPM It Is a management system which glues strategy and execution together. Enterprise Performance Management Performance has to be managed!
    49. 49. EPM Manifesto
    50. 50. PUT STRATEGY TO ACTION EPM Manifesto
    51. 51. EPM BENEFITS
    52. 52. EPM BENEFITS AGILITY
    53. 53. EPM BENEFITS AGILITY AGILITY CONSOLIDATION TIMELINESS
    54. 54. EPM BENEFITS AGILITY AGILITY CONSOLIDATION TIMELINESS EPM provides the capability to consolidate financial & nonfinancial data and provide a holistic view between business processes and strategy. This determines the required changes quickly and with completeness.
    55. 55. EPM BENEFITS CONTROL
    56. 56. EPM BENEFITS CONTROL ACCURACY CONTROL TOTAL QUALITY
    57. 57. EPM BENEFITS CONTROL ACCURACY CONTROL TOTAL QUALITY EPM provides companies the mechanism through which they can practice a total quality imitative by connecting their strategy with their control processes and with their operations processes allowing them to establish compliances effectively.
    58. 58. EPM BENEFITS TRANSPARENCY
    59. 59. EPM BENEFITS TRANSPARENCY AWARENESS COLLABORATION TRANSPARENCY
    60. 60. EPM BENEFITS TRANSPARENCY AWARENESS COLLABORATION TRANSPARENCY EPM provides a platform where stakeholders can communicate their performance and can drill down to any KPI from any view all the way to the data sources, processes and applications. This gives the imitative for data quality, enterprise awareness and a highly collaborative work environment
    61. 61. ENTERPRISE PERFORMANCE MANAGEMENT Creating Connections & Synergies
    62. 62. PEOPLE ENTERPRISE PERFORMANCE MANAGEMENT Creating Connections & Synergies
    63. 63. PEOPLE PROCESSES ENTERPRISE PERFORMANCE MANAGEMENT Creating Connections & Synergies
    64. 64. PEOPLE TECHNOLOGY PROCESSES ENTERPRISE PERFORMANCE MANAGEMENT Creating Connections & Synergies
    65. 65. PEOPLE TECHNOLOGY PROCESSES ENTERPRISE PERFORMANCE MANAGEMENT Creating Connections & Synergies
    66. 66. PEOPLE STRATEGY TECHNOLOGY PROCESSES ENTERPRISE PERFORMANCE MANAGEMENT Creating Connections & Synergies
    67. 67. PEOPLE STRATEGY TECHNOLOGY PROCESSES SHAREHOLDERS ENTERPRISE PERFORMANCE MANAGEMENT Creating Connections & Synergies
    68. 68. PEOPLE STRATEGY TECHNOLOGY PROCESSES SHAREHOLDERS CUSTOMERS ENTERPRISE PERFORMANCE MANAGEMENT Creating Connections & Synergies
    69. 69. PEOPLE STRATEGY TECHNOLOGY PROCESSES SHAREHOLDERS CUSTOMERS ENTERPRISE PERFORMANCE MANAGEMENT Creating Connections & Synergies
    70. 70. PEOPLE STRATEGY TECHNOLOGY PROCESSES SHAREHOLDERS CUSTOMERS ENTERPRISE PERFORMANCE MANAGEMENT Creating Connections & Synergies
    71. 71. EPM LIFECYCLE Performance Dashboards, Wayne W. Eckerson, Wiley
    72. 72. EPM LIFECYCLE Performance Dashboards, Wayne W. Eckerson, Wiley 1.STRATEGIZE
    73. 73. EPM LIFECYCLE Performance Dashboards, Wayne W. Eckerson, Wiley 2. PLAN
    74. 74. EPM LIFECYCLE Performance Dashboards, Wayne W. Eckerson, Wiley 3. MONITOR/ANALYZE
    75. 75. EPM LIFECYCLE Performance Dashboards, Wayne W. Eckerson, Wiley 4. ACT/ADJUST
    76. 76. EPM LIFECYCLE Performance Dashboards, Wayne W. Eckerson, Wiley 1.STRATEGIZE 2. PLAN 3. MONITOR/ANALYZE4. ACT/ADJUST
    77. 77. BUT WHAT DRIVES SUCCESS FOR THE EPM? ORGANIZATION STRATEGY MAP VISION INFRASTRUCTURE TARGETS TECHNOLOGY MISSION BUDGETING PROCESS INCENTIVES PLANNING EXECUTIVE BUY-IN FORECASTING KPI CONSOLIDATION MODELS METRICS SCORECARDS INITIATIVES ALERTS GOALS AGENTS ACTIONS DECISIONS DASHBOARDS BI ANALYTICS DATA MODEL REPORTS PEOPLE
    78. 78. BUT WHAT DRIVES SUCCESS FOR THE EPM? ORGANIZATION STRATEGY MAP VISION INFRASTRUCTURE TARGETS TECHNOLOGY MISSION BUDGETING PROCESS INCENTIVES PLANNING EXECUTIVE BUY-IN FORECASTING KPI CONSOLIDATION MODELS METRICS SCORECARDS INITIATIVES ALERTS GOALS AGENTS ACTIONS DECISIONS DASHBOARDS BI ANALYTICS DATA MODEL REPORTS PEOPLE
    79. 79. BUT WHAT DRIVES SUCCESS FOR THE EPM? ORGANIZATION STRATEGY MAP VISION INFRASTRUCTURE TARGETS TECHNOLOGY MISSION BUDGETING PROCESS INCENTIVES PLANNING EXECUTIVE BUY-IN FORECASTING KPI CONSOLIDATION MODELS METRICS SCORECARDS INITIATIVES ALERTS GOALS AGENTS ACTIONS DECISIONS DASHBOARDS BI ANALYTICS DATA MODEL REPORTS PEOPLE
    80. 80. BUT WHAT DRIVES SUCCESS FOR THE EPM? ORGANIZATION STRATEGY MAP VISION INFRASTRUCTURE TARGETS TECHNOLOGY MISSION BUDGETING PROCESS INCENTIVES PLANNING EXECUTIVE BUY-IN FORECASTING KPI CONSOLIDATION MODELS METRICS SCORECARDS INITIATIVES ALERTS GOALS AGENTS ACTIONS DECISIONS DASHBOARDS BI ANALYTICS DATA MODEL REPORTS PEOPLE
    81. 81. BUT WHAT DRIVES SUCCESS FOR THE EPM? ORGANIZATION STRATEGY MAP VISION INFRASTRUCTURE TARGETS TECHNOLOGY MISSION BUDGETING PROCESS INCENTIVES PLANNING EXECUTIVE BUY-IN FORECASTING KPI CONSOLIDATION MODELS METRICS SCORECARDS INITIATIVES ALERTS GOALS AGENTS ACTIONS DECISIONS DASHBOARDS BI ANALYTICS DATA MODEL REPORTS PEOPLE
    82. 82. BUT WHAT DRIVES SUCCESS FOR THE EPM? ORGANIZATION STRATEGY MAP VISION INFRASTRUCTURE TARGETS TECHNOLOGY MISSION BUDGETING PROCESS INCENTIVES PLANNING EXECUTIVE BUY-IN FORECASTING KPI CONSOLIDATION MODELS METRICS SCORECARDS INITIATIVES ALERTS GOALS AGENTS ACTIONS DECISIONS DASHBOARDS BI ANALYTICS DATA MODEL REPORTS PEOPLE
    83. 83. BUT WHAT DRIVES SUCCESS FOR THE EPM? ORGANIZATION STRATEGY MAP VISION INFRASTRUCTURE TARGETS TECHNOLOGY MISSION BUDGETING PROCESS INCENTIVES PLANNING EXECUTIVE BUY-IN FORECASTING KPI CONSOLIDATION MODELS METRICS SCORECARDS INITIATIVES ALERTS GOALS AGENTS ACTIONS DECISIONS DASHBOARDS BI ANALYTICS DATA MODEL REPORTS PEOPLE
    84. 84. BUT WHAT DRIVES SUCCESS FOR THE EPM? ORGANIZATION STRATEGY MAP VISION INFRASTRUCTURE TARGETS TECHNOLOGY MISSION BUDGETING PROCESS INCENTIVES PLANNING EXECUTIVE BUY-IN FORECASTING KPI CONSOLIDATION MODELS METRICS SCORECARDS INITIATIVES ALERTS GOALS AGENTS ACTIONS DECISIONS DASHBOARDS BI ANALYTICS DATA MODEL REPORTS PEOPLE
    85. 85. It’s a bit more complicated than that!
    86. 86. Lets take a car analogy
    87. 87. Analogy EPM Car Analogy
    88. 88. Analogy EPM Destination Vision Car Analogy
    89. 89. Analogy EPM Destination Vision Map Strategy Map Car Analogy
    90. 90. Analogy EPM Destination Vision Map Strategy Map Routes Planning Car Analogy
    91. 91. Analogy EPM Destination Vision Map Strategy Map Routes Planning Roads Infrastructure Car Analogy
    92. 92. Analogy EPM Destination Vision Map Strategy Map Routes Planning Roads Infrastructure Traffic Rules Compliance Car Analogy
    93. 93. Analogy EPM Speed Data Model Car Analogy
    94. 94. Analogy EPM Speed Data Model Rear View Mirror Consolidation Car Analogy
    95. 95. Analogy EPM Speed Data Model Rear View Mirror Consolidation GPS Forecasting Car Analogy
    96. 96. Analogy EPM Speed Data Model Rear View Mirror Consolidation GPS Forecasting Gears Processes Car Analogy
    97. 97. Analogy EPM Speed Data Model Rear View Mirror Consolidation GPS Forecasting Gears Processes Transmission Technology Car Analogy
    98. 98. Analogy EPM Speed Data Model Rear View Mirror Consolidation GPS Forecasting Gears Processes Transmission Technology Dashboard Scorecards Car Analogy
    99. 99. Analogy EPM Car Analogy
    100. 100. Analogy EPM Fuel Executive Buy-In Car Analogy
    101. 101. Analogy EPM Fuel Executive Buy-In Steering KPIs Car Analogy
    102. 102. Analogy EPM Fuel Executive Buy-In Steering KPIs Motion Actions Car Analogy
    103. 103. Analogy EPM Fuel Executive Buy-In Steering KPIs Motion Actions Passengers Shareholders Car Analogy
    104. 104. Analogy EPM Fuel Executive Buy-In Steering KPIs Motion Actions Passengers Shareholders Mileage Performance Car Analogy
    105. 105. KPIs represent a set of measures focusing on those aspects of performance that are the most crucial for the continued success of an organization. –David Parmenter, CEO, Waymark Solutions, Author “Key Performance Indicators” KPI
    106. 106. The only difference between a metric and a KPI is that a KPI embodies a strategic objective and measures performance against a goal. -TDWI Best Practices Report FQ09: Performance Management Strategies , How to create and deploy effective metrics By Wayne W. Eckerson KPI
    107. 107. THE CHOSEN ONE
    108. 108. THE CHOSEN ONE K-P-I KEY PERFORMANCE INDICATOR
    109. 109. “Show me a company that thinks it has key performance indicators (KPIs) measured monthly and quarterly, and I will show you measures that do not create change, alignment and growth and have never been KPIs.” - David Parmenter, CEO, Waymark Solutions, Author “Key Performance Indicators” KPI
    110. 110. Measures = Metrics KPI
    111. 111. Measures = Metrics All KPIs are metrics but not all metrics are KPIs KPI
    112. 112. Measures = Metrics All KPIs are metrics but not all metrics are KPIs Metrics are the key to analyzing process effectiveness and efficiency KPI
    113. 113. Measures = Metrics All KPIs are metrics but not all metrics are KPIs Metrics are the key to analyzing process effectiveness and efficiency KPIs affect organizational behavior KPI
    114. 114. Case Study Single KPI Source: “Key Performance Indicators”, David Parmenter* * With slight enhancements British Airways
    115. 115. Single KPI Source: “Key Performance Indicators”, David Parmenter* * With slight enhancements British Airways
    116. 116. Single KPI Source: “Key Performance Indicators”, David Parmenter* * With slight enhancements British Airways
    117. 117. Single KPI Source: “Key Performance Indicators”, David Parmenter* * With slight enhancements British Airways
    118. 118. Single KPI Source: “Key Performance Indicators”, David Parmenter* * With slight enhancements British Airways
    119. 119. Single KPI Source: “Key Performance Indicators”, David Parmenter* * With slight enhancements British Airways
    120. 120. Single KPI Source: “Key Performance Indicators”, David Parmenter* * With slight enhancements British Airways
    121. 121. Single KPI Source: “Key Performance Indicators”, David Parmenter* * With slight enhancements British Airways
    122. 122. Single KPI Source: “Key Performance Indicators”, David Parmenter* * With slight enhancements British Airways
    123. 123. Single KPI Source: “Key Performance Indicators”, David Parmenter* * With slight enhancements British Airways
    124. 124. Ready to GO A single KPI lead Lord King, x-chairman of British Airways to improve overall corporate performance. This KPI became the single ambition of each employee in her/his respective area of work Single KPI Source: “Key Performance Indicators”, David Parmenter* * With slight enhancements British Airways
    125. 125. How Many KPIs? What is the best number of KPIs for an organization?
    126. 126. • Kaplan/Norton – Around 12 • Parmenter – Around 10 • Eckerson – Around 5-7 How Many KPIs?
    127. 127. How Many Metrics? There are no best practices, metrics can go into hundreds and thousands depending on the level of detail captured, interdependencies, the diversity of business domains captured in the systems etc.
    128. 128. Challenge How does one select around 10 metrics (as KPIs) from a list of hundreds or thousands?
    129. 129. Rule of Thumb guidance
    130. 130. Rule of Thumb guidance Handpicked based on certain established norms and trends.
    131. 131. Systematic Short listing
    132. 132. Systematic Short listing KPIs are the output of a systematic process of short listing based on the organizational structure, strategy and planning.
    133. 133. Intuition & Gut Feeling
    134. 134. Intuition & Gut Feeling Handpicking KPIs based on human intuition and gut feeling
    135. 135. Challenge Handpicking KPIs usually do not last long!
    136. 136. Challenge Handpicked KPIs may have bias of human judgment!
    137. 137. Challenge Handpicked KPIs may not be selected exhaustively!
    138. 138. Challenge Handpicking KPIs take longer time and cost!
    139. 139. Challenge Handpicked KPIs may not represent all perspectives of the business
    140. 140. Strong need of a KPI framework which contains both structure and process to cater to this challenge. Challenge
    141. 141. The KPI framework needs to be interconnected with the overall EPM picture Challenge
    142. 142. Balanced Scorecard • Most Popular • Improvements - 3rd Generation BSCs Performance Prism • Vast coverage area • Most Flexible and Customizable Applied Information Economics • Based on Decision Theory and Actuarial Sciences • High value of worth in IT valuation Some KPI Frameworks
    143. 143. Performance Prism • Vast coverage area • Most Flexible and Customizable Strong emphasis on stakeholder success. *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    144. 144. Performance Prism • Vast coverage area • Most Flexible and Customizable Focuses on Processes and Capabilities, not just strategies and ambitions *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    145. 145. Performance Prism • Vast coverage area • Most Flexible and Customizable Nevertheless, focuses on long term success *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    146. 146. Performance Prism • Vast coverage area • Most Flexible and Customizable Measures based management is not explicit but can be made to be so. *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    147. 147. Performance Prism • Vast coverage area • Most Flexible and Customizable Process based improvement is the key! *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    148. 148. Performance Prism • Vast coverage area • Most Flexible and Customizable Flexible in structure but development process is less incremental and less iterative compared to alternate approaches *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    149. 149. Performance Prism • Vast coverage area • Most Flexible and Customizable Development cycles might take longer times than alternatives due to vast coverage area. *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    150. 150. Applied Information Economics • Based on Decision Theory and Actuarial Sciences • High value of worth in IT valuation Mostly used for Enterprise Architecture ROI *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    151. 151. Applied Information Economics • Based on Decision Theory and Actuarial Sciences • High value of worth in IT valuation Rarely used as the sole framework for KPIs. *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    152. 152. Applied Information Economics • Based on Decision Theory and Actuarial Sciences • High value of worth in IT valuation Works well for justifying quantification of qualitative metrics *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    153. 153. Applied Information Economics • Based on Decision Theory and Actuarial Sciences • High value of worth in IT valuation Falls short of becoming a comprehensive EPM framework *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    154. 154. Balanced Scorecard • Most Popular • Improvements - 3rd Generation BSCs A guideline, not a roadmap *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    155. 155. Balanced Scorecard • Most Popular • Improvements - 3rd Generation BSCs A framework with flexible process approaches *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    156. 156. Balanced Scorecard • Most Popular • Improvements - 3rd Generation BSCs Highly collaborative *This assessment is based on comments available on the public domain & not on any scientifically established premise. *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    157. 157. Balanced Scorecard • Most Popular • Improvements - 3rd Generation BSCs Highly visible and transparent *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    158. 158. Balanced Scorecard • Most Popular • Improvements - 3rd Generation BSCs Most popular framework *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    159. 159. Balanced Scorecard • Most Popular • Improvements - 3rd Generation BSCs Framework is scalable (currently 3rd Generation Balanced Scorecarding standard is available.) *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    160. 160. Balanced Scorecard • Most Popular • Improvements - 3rd Generation BSCs Framework is customizable (many case studies with significant changes on the underlying structure and approach.) *This assessment is based on comments available on the public domain & not on any scientifically established premise.
    161. 161. Balanced Scorecard • Most Popular • Improvements - 3rd Generation BSCs Structure •Perspectives •Strategy Maps Approach •Iterative •JAD
    162. 162. Balanced Scorecard Structure
    163. 163. Balanced Scorecard Structure An organization of performance artifacts (metrics, KPIs, Goals, Objectives & Strategy)
    164. 164. Balanced Scorecard Structure Structure develops context for each performance artifact
    165. 165. Balanced Scorecard Structure The context determines the purpose and usage for each performance artifact.
    166. 166. Balanced Scorecard Structure It also allows for clearer communication
    167. 167. Balanced Scorecard Structure The contexts are developed through 'Perspectives'
    168. 168. Balanced Scorecard Structure 'Perspectives' can be any and many
    169. 169. Balanced Scorecard Structure The original Balanced Scorecard approach had four…
    170. 170. Balanced Scorecard Structure Financial Perspective Customer Perspective Business Processes Internal Learning and Growth
    171. 171. Balanced Scorecard Structure The recent 3rd Generation BSC has two more...
    172. 172. Balanced Scorecard Structure Employee Perspective Shareholder Perspective
    173. 173. Balanced Scorecard Structure Companies can choose to develop their own perspectives
    174. 174. Balanced Scorecard Structure However, the essence of having a balance between financial and nonfinancial perspective has to be maintained
    175. 175. Balanced Scorecard Structure Balancing means that all perspectives are taken under consideration when determining performance
    176. 176. Balanced Scorecard Structure It also means that all performance artifacts chosen are mutually consistent
    177. 177. Balanced Scorecard Structure ...meaning one performance artifact does not conflict or negate any other chosen artifact.
    178. 178. Balanced Scorecard Structure Perspectives are chained through cause and effect relationships
    179. 179. Balanced Scorecard Structure Perspectives also allow for determining KPIs from metrics
    180. 180. Balanced Scorecard Structure Perspectives are used as a tool for strategy communication using strategy maps
    181. 181. Balanced Scorecard Structure The Strategy Map is the cornerstone of strategy communication
    182. 182. Balanced Scorecard Structure It groups and links the organizational goals & objectives into perspectives and determine a cause effect relationship
    183. 183. Balanced Scorecard Structure This allows all stakeholders to identify the fundamental line of action for combined success
    184. 184. Balanced Scorecard Structure A strategy map helps people at all levels in the organization to relate performance with their domain of responsibility
    185. 185. Balanced Scorecard Structure Strategy maps enable a unidirectional approach towards better performance.
    186. 186. Sample Strategy Map
    187. 187. • OK… • There is the Strategy Map…
    188. 188. • OK… • There is the Strategy Map… • The KPIs…
    189. 189. • OK… • There is the Strategy Map... • The KPIs… • The KPIs Framework…
    190. 190. • OK… • There is the Strategy Map … • The KPIs… • The KPIs Framework… • The People…
    191. 191. • OK… • There is the Strategy Map… • The KPIs… • The KPIs Framework… • The People… • The Processes…
    192. 192. • OK… • There is the Strategy Map… • The KPIs… • The KPIs Framework… • The People… • The Processes… • The Technology…
    193. 193. • OK… • There is the Strategy Map… • The KPIs… • The KPIs Framework… • The People… • The Processes… • The Technology… • The Governance…
    194. 194. • OK… • There is the Strategy Map… • The KPIs… • The KPIs Framework… • The People… • The Processes… • The Technology… • The Governance… • The Business…
    195. 195. • OK… • There is the Strategy Map… • The KPIs… • The KPIs Framework… • The People… • The Processes… • The Technology… • The Governance… • The Business… Where Do I Start?
    196. 196. • The approach to establish an EPM framework is subjective and depends on…
    197. 197. • The Company
    198. 198. • The Company • The KPI Team
    199. 199. • The Company • The KPI Team • Market Conditions
    200. 200. • The Company • The KPI Team • Market Conditions • Existing Maturity of EPM Know-How
    201. 201. And…
    202. 202. ORGANIZATION STRATEGY MAP VISION INFRASTRUCTURE TARGETS TECHNOLOGY MISSION BUDGETING PROCESS INCENTIVES PLANNING EXECUTIVE BUY-IN FORECASTING KPI CONSOLIDATION MODELS METRICS SCORECARDS INITIATIVES ALERTS GOALS AGENTS ACTIONS DECISIONS DASHBOARDS BI ANALYTICS DATA MODEL REPORTS PEOPLE
    203. 203. ORGANIZATION STRATEGY MAP VISION INFRASTRUCTURE TARGETS TECHNOLOGY MISSION BUDGETING PROCESS INCENTIVES PLANNING EXECUTIVE BUY-IN FORECASTING KPI CONSOLIDATION MODELS METRICS SCORECARDS INITIATIVES ALERTS GOALS AGENTS ACTIONS DECISIONS DASHBOARDS BI ANALYTICS DATA MODEL REPORTS PEOPLE
    204. 204. Myriad of Approaches
    205. 205. Myriad of Approaches Choose which meets your EPM’s purpose
    206. 206. Approach Balanced Scorecard
    207. 207. Approach Balanced Scorecard No matter what approach U take, follow these guidelines…
    208. 208. Approach Balanced Scorecard KPI Survey Data Survey Process Survey Parallel Activities
    209. 209. Approach Balanced Scorecard KPI Survey Data Survey Process Survey Parallel Activities Each Powers the Other
    210. 210. Approach Balanced Scorecard KPI Survey Data Survey Process Survey Parallel Activities Each Powers the Other Frequent Iterations
    211. 211. Approach Balanced Scorecard KPI Survey Data Survey Process Survey Parallel Activities Each Powers the Other Frequent Iterations To and Fro
    212. 212. Approach Balanced Scorecard KPI Survey Data Survey Process Survey Parallel Activities Each Powers the Other Frequent Iterations To and Fro Till Convergence…
    213. 213. Approach Balanced Scorecard KPI Survey Data Survey Process Survey Parallel Activities Each Powers the Other Frequent Iterations To and Fro Till Convergence… i.e. Agreement & Feasibility
    214. 214. Approach Balanced Scorecard 1st Iteration 2nd Iteration 3rd Iteration KPI Development
    215. 215. Approach Balanced Scorecard 1st Iteration 2nd Iteration 3rd IterationKPI Survey must be scoped into iterations KPI Development
    216. 216. Approach Balanced Scorecard 1st Iteration 2nd Iteration 3rd IterationKPI Survey must be scoped into iterations KPIs must be worked in batches KPI Development
    217. 217. Approach Balanced Scorecard 1st Iteration 2nd Iteration 3rd IterationKPI Survey must be scoped into iterations KPIs must be worked in batches Starting with the most critical…and visible KPI Development
    218. 218. Approach Balanced Scorecard 1st Iteration 2nd Iteration 3rd IterationKPI Survey must be scoped into iterations KPIs must be worked in batches Starting with the most critical…and visible Iterations...KPIs from focused to comprehensive
    219. 219. Approach Balanced Scorecard Program Launch Presentation
    220. 220. Approach Balanced Scorecard Program Launch Presentation …Set the tone, direction and agenda
    221. 221. Approach Balanced Scorecard Focus Group Meeting Iteration
    222. 222. Approach Balanced Scorecard Focus Group Meeting …KPI team meet up to re-assess, re-align & initiate actions Iteration
    223. 223. Approach Balanced Scorecard Focus Group Meeting Workshop: Strategy Maps Iteration
    224. 224. Approach Balanced Scorecard Workshop: KPI Library Focus Group Meeting Workshop: Strategy Maps Iteration
    225. 225. Approach Balanced Scorecard Workshop: KPI Library Workshop: Dashboard Design Focus Group Meeting Workshop: Strategy Maps Iteration
    226. 226. Approach Balanced Scorecard Workshop: KPI Library Workshop: Dashboard Design Demo Runs Focus Group Meeting Workshop: Strategy Maps Iteration
    227. 227. Approach Balanced Scorecard Finalization …time to implement & launch Iteration
    228. 228. Approach Balanced Scorecard No matter how much you think you have finalized the KPI framework….
    229. 229. Approach Balanced Scorecard No matter how much you think you have finalized the KPI framework…. Be ready for changes and further iterations
    230. 230. Approach Balanced Scorecard No matter how much you think you have finalized the KPI framework…. Be ready for changes and further iterations Be Agile!
    231. 231. References and Credits • Photo Credits: • adactio • AmyLovesYah • arjun01 • brian_hillegas • drcorneilus • easyflow • exfordy • faisal198846 • lepiaf • Malias • rhett maxwell • References: • The Balanced Scorecard: Translating Strategy into Action by Robert S. Kaplan and David P. Norton (Hardcover - Sep 1, 1996) • Performance Dashboards: Measuring, Monitoring, and Managing Your Business by Wayne W. Eckerson (Hardcover - Oct 14, 2005) • Key Performance Indicators: Developing, Implementing,and Using Winning KPIs by David Parmenter (Hardcover - Jan 16, 2007) • Performance Dashboards and Analysis for Value Creation (Wiley Finance) by Jack Alexander (Hardcover - Nov 3, 2006) • Balanced Scorecard Step-by-Step: Maximizing Performance and Maintaining Results - Hardcover (Sep 1, 2006) by Paul R. Niven • The Performance Prism: The Scorecard for Measuring and Managing Business Success by Andrew Neely, Chris Adams, and Mike Kennerley (Hardcover - Jun 27, 2002) • How to Measure Anything: Finding the Value of "Intangibles" in Business by Douglas W. Hubbard (Hardcover - Aug 3, 2007) • TDWI Best Practices Report: How to create and deploy effective metrics, Wayne Eckerson, Q1, 2009
    232. 232. Contact Atif Abdul-Rahman, atif.abdulrahman <at> gee mail www.linkedin.com/in/atifabdulrahman www.knowledgeworks.wordpress.com

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