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Performance Management and Agility James Taylor, CEO.

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1 Performance Management and Agility James Taylor, CEO

2 About me Independent consultant working with clients to help automate and improve decisions Previously a VP at Fair Isaac where I developed the concept of Decision Management 20 years experience in all aspects of software including time in PeopleSoft R&D and at Ernst & Young Blogger, speaker, writer

3 The one slide you need Performance Management measures and monitors supports people who make decisions But systems make decisions too Decision Management makes system decisions explicit The combination builds cockpits not dashboards

4 AGENDA 1 Performance Management or Performance Monitoring 2 The pilot analogy 3 From dashboards to cockpits with Decision Management

5 Performance Management or Performance Monitoring? ©2009 Decision Management Solutions5

6 6 Greater agility Better decisions Control performance Understand drivers Manage risk Manage opportunities The power of performance management Control Understanding

7 ©2009 Decision Management Solutions7 Greater agility Better decisions Control performance Understand drivers Manage risk Manage opportunities The barriers to performance Control People Computers Understanding Macro Micro

8 ©2009 Decision Management Solutions8 People dont make many of the decisions in your business Risk and opportunity do not come only in strategic lumps Systems do But operationally, one transaction, or one customer at a time Reality check

9 The pilot analogy

10 The business executive as fighter pilot

11 But cockpits have controls not just dials

12 And planes have auto pilots

13 And pilots learn on simulators

14 Decision Management Automates decisions So your systems have an auto pilot Exposes how decisions are made So you have knobs and dials Allows for simulation So you can experiment and learn ©2009 Decision Management Solutions14

15 From dashboards to cockpits ©2009 Decision Management Solutions15

16 ©2009 Decision Management Solutions16 Decision Management is A business discipline that builds on existing enterprise applications to put data to work manage uncertainty increase transparency give the business control

17 5 principles of decision management Little decisions add up so focus on operational decision making The purpose of information is to decide so put your data and analytics to work You cannot afford to lock up your logic so externalize it as business rules No answer, no matter how good, is static so experiment, challenge, simulate, learn Decision Making is a process so manage it ©2009 Decision Management Solutions17

18 Decisions drive actions A choice, a selection Made after consideration Results in action not just knowledge ©2009 Decision Management Solutions18

19 The business value of decisions Economic impactLowHigh Type Strategy Tactics Operations

20 Making information more readily available is important, but making better decisions based on information is what pays the bills. 20 James Taylor & Neil Raden Smart (Enough) Systems

21 Business rules for agility, transparency If customer is GoldCustomer and Home_Equity_Loan_Value is more than $100,000 then college_loan_discount = 0.5% If member has greater than 3 prescriptions and prescriptions renewal_date is less than 30 days in the future then set reminder=email If patients age is less than 18 and members coverage is standard and members number_of_claims does not exceed 4 then set patients coverage to standard

22 Analytics add business insight 22 Descriptive Analytics X X X X X X X X X X X X X X X X X X X X X X X XX X XX X X X X X X X X X X X X X X X X X X XX X X X X X X X X X X X X X X X X X X X X X Who are my best/worst customers? How do I turn my data into rules for better decisions? Predictive Analytics How are those customers likely to behave in the future? How do they react to the myriad ways I can touch them? Knowledge - Description Action - Prescription Business Intelligence How do I use data to learn about my customers? What has been happening in my business? Optimization/Simulation How do I leverage that knowledge to extract maximum value from my marketing investments?

23 Reduce time-to-action Business event Action taken Decision latency

24 ©2009 Decision Management Solutions24 Delivering Decision Management 3 stages to better operational decisions Identify the decisions (usually about customers) that are most important to your operational success Design and build independent decision processes to replace decision points embedded in operational systems Create a closed loop between operations and analytics to measure results and drive improvement

25 The Decision Management technology stack Decision Service Business Rules Descriptive Analytics Adaptive Control Visualization BI Performance Management KPIs Business Process Management Web Services Business Process Management Web Services Enterprise Platform Predictive Analytics Optimization Database Data Warehouse In-database Analytics

26 Action plan Identify your decisions Adopt decisioning technology Think cockpit not dashboard

27 ©2009 Decision Management Solutions27 Shameless commerce Decision Management Solutions can help you Focus on the right decisions Implement a blueprint Define a strategy For assistance, to find out more or if you have questions

28 Thank you! James Taylor, CEO

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