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

2. 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

3. Some of IMGROUP’s Clients

4. 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.

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

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

7. “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

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

9. 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?

10. 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?

11. Inchcape

12. 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

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

14. 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?

15. 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?

16. 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?

17. 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

18. 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?

19. 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?

20. 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?

21. 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

22. 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?

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

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

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

26. 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. ”

27. 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. ”

28. Solution Data Sources & Contribution PerformancePoint Server
Reporting & Export

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

30. Sales Planning Strategic Planning Budgeting Financial Consolidation
Forecasting
Reporting and
Analysis

31. 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. ”

32. 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. ”

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

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

35. Integrated Workflow Strategic Planning Budgeting Financial
Consolidation
Forecasting
Reporting and
Analysis

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

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

38. 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. ”

39. 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

40. 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

41. 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

42. Our Launch Offer
A working Microsoft PerformancePoint TM Server application in 3 days
Day One Tailored overview of Microsoft PerformancePoint Server 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

43. For questions please feel free to contact: