The document discusses a business performance management project at Johnson & Johnson Medical to build an integrated information solution to enhance business performance, planning, and analytics. It outlines key topics like the role of finance, performance management, and critical success factors. It also provides details of the proposed solution like scorecards, dashboard reports, and analytical cubes to provide benefits like improved decision making, monitoring, and building an analytical culture. Key issues to address include data integrity, change management, and executive sponsorship.

1. Business Performance Management
Project
Enabling the building of an integrated information
solution to enhance business performance,
planning and analytics
Irelan Tam
Johnson & Johnson Medical
Nov, 27, 2012

2. TODAY’S DISCUSSION
• Business Intelligence and Business Performance
Management
• Role of Finance
• Performance Management and Analytics
• Critical Success Factors
• A Case Study
1

3. Business Intelligence and Busyness Performance Management
Definitions by Gartner Inc (2006)
Business
Intelligence
Performance
Management
Applications, infrastructure, platforms, tools and
best practices which enable the access to and
analysis of information to optimize decisions and
manage performance
Combination of management methodologies, metrics
and IT (applications, tools and infrastructure) that
enable, monitor and optimize results and outcome to
achieve departmental/organizational objectives while
enabling alignment with strategic imperatives across
all business units
2

4. Business Performance , Analytics and Decision Making
if we want to make better decisions and take the right action, we have to use analytics –
Davenport, Harris and Morison, 2010
Analytic capabilities
-Enabling Technology
-Organizational Culture
Business
Insights
Decisions Making
and
Actions
and processes
• Quality data
• Business reporting tools
• Integrated platform
• Forward looking views on
enhancing understanding
on customers, products,
markets and capital
investments
• Identify key strategic and
tactical decisions
• Determine how well the
decisions are made
• Determine decision intervention
is required or not
• Allocate resources
3

5. What are key CFOs Focus
Two key CFOs focus - Information Integration and risk management
* IBM value Integrator study 2010
•Establishing an analytic applications to better understand business
performance and support key strategic and tactic decisions
•Driving adoption through integrating technological infrastructure and
building organizational competency in analytics
4

6. The role of the Management Accountant
(CIMA, August 2008)
The trend towards Business Partnering:
•Supporting the business/strategic planning process and providing metrics and analysis
to support evidence-based decision making
5

7. Finance role in Business Partner
provide strategic insights and develop strategies in managing
value and growth ( PA Consulting, 2008)
Finance Analyst
Performance Manager Business Advocate
Strategic Partner
6

8. Insight drives Business Value
Business Performance and Analytics
7

9. Transformational Changes
from Performance Reporting to Analytics
(Analytics are technologies and processes in using data to understand and analyze business
performance to drive decisions and actions)
Current
Culture
• Performance reporting
People
• Data collection and
Future
• Business Planning and
analytics
reporting generation
• Analytic and decision
Competencies
Process
• Manual generation
• Auto daily and monthly
Data
• Information
• Knowledge
Technology
• Excel
• Cubes and scorecard and
reporting
dashboards
8

10. Business Case for Johnson & Johnson
Background
Enhance analytical competencies through transformational changes
from business performance reporting to business analytics
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11. Key Deliverables for Johnson & Johnson BPM Solutions
Portal
• Web platform for integrating scorecards, dashboard
reports and monitoring plans
Scorecards
• Key Metrics performances vs target /plan
Dashboard
Reports
• Reports allow drill-down and navigation across
multiple dimensions
• Able to schedule autoreportings
Analytical
Cubes
• Multidimensional cubes provide detailed drill-down
and slice and dice capabilities for business
analytics
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12. Key Benefits to Management and Executives
Improvement / New Functionality
What’s The Benefit?
Implement one version of truth and ensure
data integrity
All reports are generated from SAP, RDW and
BPM cubes without manual intervention
Daily and monthly scorecard with all key
metrics with common definition
Develop the culture of establishing key
metrics linking with business objectives
Able to have commentaries and monitor
actions plan for potential risks/opportunities
Able to use improvement methodology to
linking actions to unfavorable performances
Automatic business performance reporting
Improve efficiency for reporting generation
Driving changing from reading information to
knowledge accumulation
Build insights and understand drivers to
business performance
Driving changing from using Excel to using
exceptions in scorecards and dashboards
Able to use exceptions reporting to assist
analytics and decision making
Establish the culture of business analytics than
reports generations
Build analytical competency for business
analytics
Long term of integrating performance
management to business planning and
analytics
Able to achieve business decision
optimization through goals setting from
analytics and performance monitoring
Alignment of IT and business for performance
reporting and analytics
Effective use of resources in supporting
business performance, planning and analytics
( technology, financial budgets and talents ) 11

13. Key Issues to be solved
Data Integrity
System
Optimization
Change
Management
Support and
maintenance
Project
Management
Executive
Sponsorship
12
• Serious issues on inconsistency of data among cubes
• No ownership on daily data validation and ensure accuracy
• Lack of expertise in ETL to ensure data capture at source
• Many complaints on slow speed
• Lack of expertise in cube design and portal optimization
• Lack of JnJ development resources and all relied on TCS
• Difficult to understand the transformation change when
deploying BPM solution
• Lack of BPM champion to support analytical framework rollout
• Lack of systematic support process for resolving issues
• Lack of Cognos expertise in solving technical issues
• Lack of training resources to drive users adoption
• No dedicated project manager in managing overall BI activities
and resource planning
• Need strong Executive commitment on driving a fact-based
culture , performance management process and roles
transformation in alignment with business and IT strategies
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14. Key Learning - Critical Success Factors
Capabilities
CSF
Sponsorship
Executive Commitment
Stakeholder Engagement
Fact Based Culture
Drive Organization Change, Alignment and
Governance
Culture
Analytic Process and Monitoring Activities
Metrics in Linking Performance and Strategic
Imperatives
Risk Management
Competency
Building Analytic skills
Well-allocated Resources
Organization Readiness to support Analytics
Infrastructure and Data
Quality
Centralized and Common Data Standards
Accurate and Timely Data Update
Analytic technologies for integrating
analysis and planning
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15. Metrics for Executive Dashboard
Strategic Imperatives
Balanced Scorecard
Imperatives
KPI
Measurement
Target
Financial
Sales
SGP
 SG&A
SNI
Price, Price on vol and vol Change%
CME
Instrumentation
Free Cash Flow
Sales Growth and Var
SGP Growth and Var ,
SG&A Growth and Var
SMI Growth and Var
Pricing , Price on voland vol %
CME Growth and Var
Instrumentation
Free Cash Flow
Vs BP and PY
Vs BP and PY
Vs BP and PY
Vs BP and PY
Vs BP and PY
Vs BP and PY
Vs BP
Vs BP
Product
Franchises Sales
Top 10 product Sales Performance
Products Profitability Portfolio
Top 10 products Profitability
Growth Rockets
New Products
Franchises Growth and Var
Sales growth and Var
Products Profitability Portfolio
Top 10 product s profitability and Var
Growth Rockets Growth and Var
New Products $and Var vs BP
Vs BP and PY
Vs BP and PY
Sales and SGP
Growth
Vs BP and PY
Vs BP and PY
Vs BP
Market
Market Size
Market Share
Population Serve
Procedure Size
Procedure Share
Professional Education Spending
Market Growth
Market Share Growth
% of Population Serve
Procedure Size
% of Procedure Share
Professional Education Spending
By Country vs PY
By Country vs PY
By Country vs PY
By Country vs PY
Vs BP and PY
Vs BP
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16. Metrics for Executive Dashboard
Strategic Imperatives
Balanced Scorecard
Imperatives
KPI
Measurement
Target
Customers
Top 10 Customers Sales
Top 10 Customers Profitability
Top 10 Customers Price%
In market sales
In Market profitability
Top PSR sales growth
Top3 PSRs by country
Top PSR by Franchise
Top 10 Customers Sales Growth and Var
Top 10 Customers SGP Growth and Var ,
Top 10 Customers Price Change
In market sales
In market Sales SGP
Top PSR sales growth
Top3 PSRs by country
Top PSR by Franchise
Vs BP and Vs PY
Vs BP and Vs PY
Vs PY
As a % of total sales
As a % of total sales
Vs BP and vs PY
Vs BP and vs PY
Vs BP and vs PY
Process
OTC
CI
Supply Chain
Finance
Supply/procurement
% of Back orders, Order Accuracy
Value of internet sales
Perfect Orders, MAPE, Distribution Costs
DOS, DSO and % ESO, days of Close
GLIFR, SLIFR, SOFR,
People
Total Headcount
Sales Headcount
Turnover %
Productivity
% Female Employee
% of Female Employee in Mgt
board
Sales per sales HC
Total Headcount
Sales Headcount
Turnover %
Productivity
% Female Employee
% of Female Employee in Mgt board
Sales per Sales HC
Vs BP
Vs BP
%
VS BP and Vs PY
Vs BP
Vs BP
VS BP and vs PY
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