Performance Management in Practice Nakis Papadopoulos & Richard Lewis Information Management Group (IMGROUP) Ltd www.imgroup.com

About Information Management Group (IMGROUP) Provide strategies, services and solutions that help our customers improve business performance Microsoft’s Global Partner of the Year in the last 3 consecutive years, 2005, 2006, 2007 Member of Microsoft’s Advisory Council Very active with Microsoft PerformancePoint programme since the beginning with clients across industries

Some of IMGROUP’s Clients

Business Performance Management - Definition A framework that optimises the execution of an organisation’s strategy. It comprises a set of integrated processes, supported by technology that enables organisations to set, communicate, monitor, measure, and manage performance against targets.

The Performance Management Cycle Strategic planning Budgeting Financial consolidation Forecasting Reporting and Analysis Scorecards Strategic Planning Budgeting Financial Consolidation Forecasting Reporting and Analysis

The Premise Performance Management can help us run our business better, increase our revenues and improve profitability

“Companies on average spend 25,000 person days per annum on planning and budgeting for every 1 billion dollars of sales and often don’t produce results that are significantly better than what they started with.” The Hackett Group

“In a recent 2006 study, 70% of companies indicated that their planning and budgeting processes do not fulfil management’s expectations” The Hackett Group

What do I need to make it work? Is the business need clear? Is the strategy defined? Are our processes in good shape? Do we have the support from management, business and IT? What’s the level of confidence in our data? Are we using the right tools? Have we agreed a “realistic” budget for the project? Do we have a plan?

Is the business need clear? Are the metrics in my reports relevant and aligned with my business strategy? Can I identify issues and opportunities easily? Is the data I need to make decisions accessible? Can I trust my data to make business decisions? Are my spreadsheets getting out of control? Is my financial close process too slow and inefficient? Are my planning activities integrated across the company?

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Is the Strategy defined? Review your business strategy Define the business performance perspectives and measures Define your KPIs Build a strategy map Align every day actions with strategy Educate and communicate

Are our business processes efficient? Strategic Planning Budgeting Financial Consolidation Forecasting Reporting and Analysis

Do we have the business support ? Is senior management supportive of the programme? Do we have the support from the business areas involved such as finance? Do we have the support from IT? Do we have the support from the users?

What’s the level of confidence in our data? Is the data accessible? Can we trust the data? Do we understand the data? Do we have a robust reconciliation process? Do we have a method to rectify data issues? Do we have the right tools and support to do this?

Are we using the right tools? What level of control/self-sufficiency do the tools provide What level of integration your chosen tool offers with your ERPs and other systems? Do the planning and forecasting modules integrate closely with the reporting and analytic modules? Does the tool support the collaborative planning process workflow? Do you have the skills to support it? Can you find expertise easily? Do you have to deal with more than one software supplier?

END USER TOOLS and PERFORMANCE MANAGEMENT APPS Excel PerformancePoint Server BI PLATFORM SQL Server Reporting Services Analysis Services SQL Server DBMS SQL Server Integration Services SharePoint Server SEARCH DELIVERY Reports Dashboards Workbooks Analytic Views Scorecards Plans CONTENT MANAGEMENT COLLABORATION

System Performance Can the tools rapidly process and then report changes to forecasts/plans/budgets and other scenarios? Is the tool performance sufficient to deliver high level summary business reports/KPI’s/scorecards quickly? Is the technology performance with full data volumes sufficient to guarantee user adoption?

Familiarity How familiar are your business users with the user facing aspects of the tool? Can the tool provide a common and familiar environment for both data entry and reporting? What will be the user training costs if not? Will usability be a barrier to adoption?

Cost of supporting the solution Is there good availability of expertise to support our solution at reasonable rates? Will additional modules require significant additional licence costs? If the tool becomes pervasive in the business will “per user” licensing cost be prohibitive?

Do we have the expertise to build it and manage it? Process and business knowledge Financial planning experts Data specialists Database engineers Tool specialists Support infrastructure Project governance

Do we have plan? Where do we start from? What are the steps? What are the risks? How long will it take? How much will it cost? What should be the areas of focus?

Performance Management Framework Business Strategy Performance Management Business People Process Analytic Applications Technology BI Platforms Information Management Infrastructure Gartner’s Framework for Performance Management

The Performance Management Lifecycle Strategic Planning Budgeting Financial Consolidation Forecasting Reporting and Analysis

Ad-Hoc Data Collection Strategic Planning Budgeting Financial Consolidation Forecasting Reporting and Analysis

Challenge “ We are currently managing data collection from various regions and countries through Excel. Our current process for consolidation and reporting is manually intensive and does not effectively support the centralized management or standardization of collections. The number of new data collections is expected to increase along with complexity. ”

Vision “ Our users are comfortable with the current process of data collection through Excel. We need a solution that allows us to build on our existing processes but provides central management for submission, review and approval. We also need a solution that integrates with our existing ERP systems and that can export collection data to other line of business systems. ”

Solution Data Sources & Contribution PerformancePoint Server Reporting & Export

The Performance Management Lifecycle Strategic Planning Budgeting Financial Consolidation Forecasting Reporting and Analysis

Sales Planning Strategic Planning Budgeting Financial Consolidation Forecasting Reporting and Analysis

Challenge “ We have previously implemented a system in Oracle Financial Analyser to provide a budgeting and planning solution for sales, distribution and production. We have also had to develop a number of bespoke systems particularly to support the analysis of non-financial data. It currently takes too long for our forecast schedules to reach production planning due to lack of integration between our disconnected systems. ”

Vision “ We would like to increase transparency within our distributed planning process to drive ownership of agreed forecast numbers to individual managers. We need a planning and forecasting cycle time that significantly reduces effort and time to produce the numbers. We also need to deliver interactive reports, trending, dashboards and KPIs to a wide range of users and enable reporting self-sufficiency for analysis of areas of interest. ”

PerformancePoint Server Solution Data Sources PerformancePoint Server Excel Baseline Promotions Volume Forecast Price Forecast Cost Forecast Profit and Loss Analytics

The Performance Management Lifecycle Strategic Planning Budgeting Financial Consolidation Forecasting Reporting and Analysis

Integrated Workflow Strategic Planning Budgeting Financial Consolidation Forecasting Reporting and Analysis

Challenge Analytics Tool Monthly Reporting Tool Transactional Systems Data Warehouse Group Reporting Tool Forecasting Tool Consolidation Tool Budgeting Tool

Challenge Analytics Tool Monthly Reporting Tool Transactional Systems Data Warehouse Group Reporting Tool Forecasting Tool Consolidation Tool Budgeting Tool

Vision “ We need a solution that reduces the number of discrete systems and technologies in order to improve the speed and efficiency of our monthly planning and consolidation cycle. We are looking for an end-to-end solution on which to standardize and roll out to each of our branches worldwide. ”

Solution Forecast/Budget Reporting and Analysis Dashboards Transactional Systems PerformancePoint Server/Excel/SharePoint Server Data Warehouse Custom cubes and complex logic replaced by PerformancePoint Server models Forecast/Budget Forecast and Budget collection through Excel Reporting and Analysis Group and monthly reports delivered through Excel Dashboards Dashboards and Scorecards delivered through SharePoint

Performance Management Information Management Infrastructure Summary Business Strategy Performance Management People BI Platforms Information Management Infrastructure Analytic Applications Technology Business Process Gartner’s Framework for Performance Management

Summary Review your business strategy and measures of performance Ensure buy in form senior management Understanding and cleaning data is the most complicated and time consuming part Focus on issues, problem areas Use an incremental approach It doesn’t have to be a major investment Adoption takes time Get some training and advice Check and fix issues with data Keep your solution simple

Our Launch Offer A working Microsoft PerformancePoint TM Server application in 3 days Day One Tailored overview of Microsoft PerformancePoint Server 2007 Identify business area, focus and scope of activity Day Two Capture business definitions for chosen area Build PerformancePoint business model using real data Day Three Demonstrate working application Demonstrate key aspects of data capture, planning, budgeting, consolidation, reporting and dashboard creation Present recommendations Closing workshop  

For questions please feel free to contact: nakis@imgroup.com garry.miller@imgroup.com richard.lewis@imgroup.com