Microsoft Business Intelligence Performance Management Dan Bulos_2011

Performance Management:
Performance Management
More Than Just Balanced Scorecards
Speaker: Dan Bulos
President, Symmetry Corporation
President Symmetry Corporation

Bay Area Microsoft BI User Group
y p
March 2011

Mark Ginnebaugh, User Group Leader
mark@designmind.com

A Prescriptive Design

Dan Bulos – bulos@symcorp.com

©2011 Symmetry Corporation http://www.symcorp.com

Performance Management (PM)

The methodologies, metrics, processes and
systems used to monitor and manage an
enterprise's business performance

Function Measures A single measurement
HR People that ranks members
IT Applications along a scale that
Finance Cost Center encompasses many
Sales Representatives metrics
Marketing Products
Manufacturing Process Line
http://www.symcorp.com
©2011 Symmetry Corporation

End-To-End Business Logic

Score
Catalog Budget
Plan
Audited Forecast Report Cards
Accurate Tolerances Benchmarks

Approved

Perspectives

Initiatives
KPIs
Organize
Metrics

Measures

Data

Prescriptive Design
Data Warehouse & Analytics
Design from the data up

Design from the usage down

PM – A different design
Many Facts
Crafted Manufactured Different Shapes
Diverse Units
Consistency Counts Disparate Granularity

PM – Lots of Moving Parts

Availability Window SLA Target
SLA Minutes Day Uptime % Month
Incidents
Critical Minutes Application Impaired % Application
Incident Day
Incident Count Application
Impacted Users Incident
IsDown
InSLA/InCritical

Financials Tolerance

Amount Month Target Month

Scenario Tier 1 KPI

Account Tier 2 CIO

Server Change Requests Tier 3
CR # Day
Emergency CRs Application
Unsuccessful CRs Unit

PM – Taming the Chaos

Homogenize the Structure

Metric
KPI Actuals Target Var Var % Tier X Score Grade Weight Last Yr Chg Chg %
Availability
Up Time %
In SLA %
Change Mgt
#CRs
Sucessful CRs


Process
Define Performance Mgt Objects
▪ KPI & Metric Dimensions/PerfMgt Measure
Create Calculated Measures on Base Data
▪ Up Time = 1 – (Incident Time / SLA Time)
Push Down Data (if needed)
▪ Monthly Targets from Yearly Targets
Twist Data to PerfMgt Measure
▪ Orient the Information for Reporting
Calculate Metrics
▪ Variance & Change
Score & Grade

Definitions


Definitions - MMK
Measures
▪ Operating data
▫ Atomic or Aggregated

Metrics
▪ Measures compared
▫ vs. Budget/Last Year/Sales/Average

Key Performance Indicators (KPI)
▪ Measures/Metrics scored
▫ What is good, bad, or acceptable
▫ Business Process/Responsibility

Definitions – KPI Groupings

Objectives
▪ Defined Strategic Goals Collections of KPIs
● Improve Cust Sat and subordinate
Objectives &
Initiatives
Initiatives
▪ Time specific projects
● Refurbish plant
Scored as a
Perspectives function of the KPI
▪ High-Level focus areas scores
● Operations, Sales…


Definitions - Scorecard
Scorecards

1: a body of methods, rules, and
postulates employed by a
discipline

2: a particular procedure or set
of procedures

The Balanced Scorecard is a strategic planning and
management methodology that is used to align business
activities to the vision and strategy of the organization, Scorecards
improve internal and external communications and monitor
organization performance against strategic goals are generally
deployed as a
A Performance Report Card is a set of Key Performance part of a
Indicators (KPIs) that are managed and scored (graded)
through a responsibility based business process and organized
performance
into grouping that show influences to each other and to dashboard
strategic or operational objectives or initiatives


The 3Ts of Performance

Target Trend Typical

Budgets & Goals Over Time Within a Group
 Variance  YTD, Moving Totals  % of Total
 % Variance  Period over Period  Rank
 Better/Worse  Last Year  Average
 Any to Any  Growth %  Top & Bottom


Reporting Spectrum

Managed Dashboards Analysis
Tables, Crosstabs, Charts, Graphs
P Customization Ease of Depth & D
r & Distribution Development Quickness i
o Alternatives & Usage of Analytics
s
d Paramount
Parameter Interactive c
u Driven Navigation o
c
v
t Highly
Formatted
Advanced e
i Visualization
r
o Guided Analytics
y
n Programmer Line Staff
Developed Developed Developed


Design


Smart KPIs

Specific – Clear on what is being measured

Measurable – Accurate and consistent

Actionable– Influence to alter the outcome

Relevant– Significance and leverage

Timely – Appropriate intervals


KPI Characteristics
Every KPI has:
▪ Class – discrete, continuous, interval
▪ Type – financial, volume, rate, %
▪ Polarity – direction of goodness
▪ Time Frame – period of measure
▪ Owner – person responsible
Might Have:
▪ Components
● Net Sales = Gross, Returns, Breakage
▪ Influences
● Revenue :: Price, Interest Rates

KPI Classes

Discrete - Sum or count or a time period
Monthly Sales, Quarterly Hires, Daily Traffic

Continuous – Value at a sample time period
Cash, Inventory, Employees (Balance in Finance)

Interval – Events - begin/end time/date
Response Time, Order Fulfillment, Down Time


KPI Types

Financial
Currency can be important

Volume
Unit of measure is always important

Rates & Percentages
Rate has a unit of measure (price)
Percent is a portion of the whole (gm%)


KPI Polarity

Increasing is BETTER
Sales

Decreasing is BETTER
Cost

Variation is BAD
Inventory


PM Objects
Dimensions
▪ KPI
● Name – Key Attribute (hidden)
● KPI – Parent Attribute
● Class – Member Property (hidden)
● Type - Member Property (hidden)
● Polarity – Member Property (hidden)

▪ Metric
● Flat Dimension (IsAggregatable = False)
Measure
▪ PerfMgt – A calculated Measure

Twist Base Measures
Scope([Measures].[PerfMgt]);

Scope([Metrics].[Actuals]);
[KPI].[UpTime] =
(
[Measures].[UpTime],
Root([KPI])
);
End Scope;

[Metric].[Tier 1] =
(
[Measures].[UpTime],
Root([KPI])
);

End Scope;


Calculate Metrics

[Metric].[Variance] =
Case
When [KPI].CurrentMember.Properties("Polarity")
= "Positive"
Then [KPI].[Actuals] - [KPI].[Target]
Else [KPI].[Target] - [KPI].[Actuals]
End;


Scoring


Why Score ?
KPIs of different
classes or types or units of measure
can not natively be either
Compared or Aggregated

Sales went up by $1mm The efficiency initiative has
GM% went up by 1.5% Sales per Employee &
# of Complaints
Which is good/better? What is the total?
Scoring levels KPIs to a common scale
Try to score based on a percentage – Variance % not Variance


Score by Scale

Method used by Scoring Directly
PerformancePoint Services by
Variance %
is the most
Common


Score to Bucket
Pick a scale [1, 100], [-1, 1], [1-5] Careful: Zero in a scale
Create a bucketing strategy can throw off weighting

# of Buckets is # of Tiers + 2
Uneven buckets influence a bubble up strategy
Forces outliers into scale – reduces outlier impact

Scope (KPI Set);
[Metric].[Score] =
Case
When [Metric].[Var%] >= [Metric].[Target]
Then 5 -- A
When [Metric].[Var%] >= [Metric].[Target] + [Metric].[Tier 1]
Then 4 -- B
Then 3 -- C
Then 2 -- D
Else 1 -- F
End;
End Scope;

Aggregate Scoring Strategy

Average Bubble Up

Weight based on Increase weight of
influence factors poor performers

Score based on Score based on
constituent scores performance count

What is the overall Identify hidden
performance? problem areas?


Weight & Aggregate Scores
Scope (Descendants([KPI].DefaultMember, , LEAVES));

[Metric].[Weighted Score] =
[Metric].[Score] * [Metric].[KPI Weight];

End Scope;

Scope ([KPI].Members - Descendants([KPI].DefaultMember, , LEAVES));

[Metric].[Weighted Score] =
Sum(
[KPI].CurrentMember.Children,
[Metric].[Weighted Score]
);

[Metric].[KPI Weight] =
Sum(
[KPI].CurrentMember.Children,
[Metric].[KPI Weighted]
);

[Metric].[Score] = [Metric].[Weighted Score] / [Metric].[KPI Weight];

End Scope;


Grade KPIs and Objectives

[Metric].[Grade] =
Case
When [Metric].[Score] > 4.5 Then ‘A’
When [Metric].[Score] > 3.5 Then ‘B’
When [Metric].[Score] > 2.5 Then ‘C’
When [Metric].[Score] > 1.5 Then ‘D’
Else ‘F’
End;


Scoring Along an App Dimension

To
Aggregate and Score Example – Sales Reps
Or
Aggregate and Score
Score and Aggregate One Rep doing very well can
cover for many under
performing reps

Score and Aggregate Score and Aggregate
All Reps must do well for the
Embodies a strategy of aggregate to perform well
even performance


Radar Chart

Good at showing performance
of
component KPIs


Symmetry – Who We Are
Founded in 1986
Experience Qualified Consultants
min 15 years BI, 10 years MS BI

BI is our Specialty
Expertise Business Solutions, not Technology
Consulting, not Contracting

ADAPTTM Design Methodology
Engineering PROOF Application Framework
Fastest & Best POC/Demo/Prototypes


Symmetry & Microsoft

“Trusted” “Technology”

Licensed technology
to SQL Server group
Premier
Basis of SSABI
BI
Embedded with
PerformancePoint
Partner Frequent speaking
engagements at
dev team for 2 years MS conferences

“Teamwork” “Teach”


Questions?


To learn more or inquire about speaking opportunities, please contact:

mark@designmind.com

Microsoft Business Intelligence Performance Management Dan Bulos_2011

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