cor peum webinar june 2014
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TRANSCRIPT
© CorPeuM 2014
Rethinking the Planning ProcessHow CorPeuM brings a new approach to managing
organisational performance
Webinar to commence at 14:00 CEST (13:00 BST)
June 18th 2014
© CorPeuM 2014
Topics
What is Performance Management?What makes CorPeuM differentCorPeuM in action– Business process monitoring– Initiative planning– Continuous planning
Unique benefits of using CorPeuMNext Steps
© CorPeuM 2014
Team of international, acknowledged experts in Corporate Performance Management (CPM) that offers:
Who is CorPeuM?
Focused on improving the execution of strategy
Established in 2007
Designed and developed in Europe to meet European requirements
Over 120 years expertise in designing, using and implementing CPM
systems for some of the world’s largest organizations
Dedicated development team, Microsoft Gold certified
Over 6M + Euro investment
No legacy products – total commitment to CPM
Business Consultancy
Implementation Services
Management Workshops
CPM Software
© CorPeuM 2014
Changing Business Environment
• 3-5 year planning
• Annual Budgeting
• Qtrly forecasting
• Monthly reporting
PLANNNG HORIZON
• Product/service options
• Market served
• Economic / political environment
• Customer expectation
COMPLEXITY OF BUSINESS
• Market trend / competitor response
• Price / resource stability
• Customer feedback impact
• Product development cycle
SPEED OF BUSINESS
Annual
Qtrly
Weekly
24/7 world
Mass Market
Customer of 1
Social Responsibility
Intermediaries
Social Networks
Global Competitors
Today’s world needs different tools, techniques and approaches
© CorPeuM 2014
What is Performance Management?
In achieving its purpose there are only 4 things an organisation can control:– Arrangement of business processes (sales, production, customer service, …)– Resources (money, people, assets) applied to those business processes– Work carried out in those business processes (hours, effort, volume, …)– Outputs of each business process activity (No. sales enquiries, products, …)
Resources
Workload
Outputs
P
U
R
P
O
S
E
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Economic Environment Political Environment
Social Media Competitors Investors
What is Performance Management?
The role of a performance management system is to help achieve the organisation’s purpose by managing what can be controlled (business
processes, resources, workload and outputs) within an uncontrollable and unknowable external environment.
UNCONTROLABLE:
UNKNOWABLE:
CONTROLABLE:
© CorPeuM 2014
Typical PM Software Categories
Financial Consolidation & Close Management Financial / Mgmnt Reporting & Disclosure Budgeting Strategic Planning and Forecasting Profitability Modeling & OptimizationScorecards
Main issues:
Multiple products with functionality overlap:
- Different architectures and set up procedures to learn
- Duplicate maintenance effort – how do you ensure they stay in synch?
- Transfer data between systems – how do you know if you have the right version?
Problem definition:
- What business problem is solved?
- How does this setup improve business processes or make them more competitive?
Not designed to operate as a single system to improve performance
All categories required to work together
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Business Modelling– That links resources, workload and
business processes to outcomes
Methodology support– That fully supports the organisation’s
chosen strategy methodology
PM Requires Integrated Capabilities for:
Dynamic workflow management
– That triggers the allocation / adjustment of resources based on events and exceptions
Adaptable security
– That involves people as required through automated, personalised ‘To Do’ lists
Initiative management
– To collect, assess and approve projects focused on improving business processes
Scenario planning
– To assess the impact of unknowable and uncontrollable events
Reports, analyses, scorecards and dashboards
– To report progress of execution and their impact on corporate objectives
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Standard Definitions:
Dimensions, Hierarchies, Attributes, Calendars
Complete Integrated PM Architecture
Rep
ort
s :
Ch
arts
: D
rill
bac
k :
Au
dit
: B
oo
ks
Workflow: Import, Validate, Transform, Approve, Alerts, To Do lists, …
User security roles : access profiles : contact : language : preferences
Reporting ModelsData Models
Form Models
All updates whether data or structure are controlled
and recorded with user and date stamp.
Unstructured data,
structures, etc
Run Shell Command Display URL
© CorPeuM 2014
Integrated multi-cube/multi-format architecture
CorPeuM: Key Differences
Standard Definitions:
Dimensions, Hierarchies, Attributes, Calendars
Models created from standard dimensions / members and
choice of structure
Able to support different kinds of data, including business structures and unstructured data that
seamlessly link to one another that act as a single model.
Strategy planning and execution monitoring example
Automatic updates when standard definitions change
© CorPeuM 2014
Intelligent attributes
CorPeuM: Key Differences
Allow dimension members to be related to each other and to specific measures to automatically generate reports and data capture screens
Workload, outputs and resouces can be related to specific processes Initiatives can be related to Balanced Scorecard themes and
perspectives
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Date based handling– All data and structure definitions are held by date, irrespective of the models
that use them– All data modification is held by incremental change, person and process
providing a complete audit trail – Reports can access any data item and any structure for a particular date.
CorPeuM: Key Differences
Multiple calendars that map
onto a standard calendar
Structures have effective dates
that are automatically selected
© CorPeuM 2014
Dynamic workflow– Able to model management processes (planning, budgeting, forecasting, …)– Activities can be automatically triggered by date, event and exception.– Automated approval and escalation paths
CorPeuM: Key Differences
CorPeuM provides personalised ‘To do’
lists and automated email alerts based on
individual user profiles, along with
automated escalation procedures as
deadlines approach
© CorPeuM 2014
Integrated reporting and analysis
CorPeuM: Key Differences
Processes Data & Reporting Models User Profile
CorPeuM has an integral reporting system that has
access to any data and any structure in any model.
These can be combined to produce reports in the
context of execution.
© CorPeuM 2014
Sample Applications
The following examples are those that are typically hard to implement using conventional performance management systems – but with CorPeuM are easy!– Business process monitoring– Initiative planning– Continuous planning
© CorPeuM 2014
Business Process Monitoring
Business processes can be split into:– CORE to the organization
• Revenue generation• Serve customers• Support customers• Provide for future
customers– SUPPORT / Enable core
processes to function
Focused on the organization’s purpose.
© CorPeuM 2014
Business Process Monitoring
Processes typically assigned to one or more departments
Can be managed and measured according to:
• Workload applied (send out mailings)
• Resources consumed (£2,500)
• Outputs achieved (15 enquiries)
• Risk being run …..
© CorPeuM 2014
Business Process Monitoring
Defining intelligent attributes:Operational processes
and activities
Relationship with
departments
Relationship workload
measures
Relationship output
measures…. resources, etc.
Used in:
• Member selections (e.g. All activities of a given Business Unit)
• To link dimensions on reports (when selecting an activity, automatically selects the correct Business Unit)
• In data transfers …..
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Display overall ‘Corporate Goals’Display ‘Output’ measures for each business processDisplay total resources applied to each business processNote columns are ‘irregular’ – e.g. time and version are different
Question: How do business processes look from a department view?
Business Process Monitoring
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Note how the measures change when selecting each department …
Business Process Monitoring
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This is the same report ….
CorPeuM intelligently displays the right combination of measures depending on the department being shown.
Business Process Monitoring
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… and now the Sales division.
This report shows the main things that management can control – resources, workload and outputs.
Business Process Monitoring
Question: What is the detail behind these forecast numbers?
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Multi-cube approach allows different levels of detail – this report shows sales by person, product, customer …Note information relating to the sales process is shown as columnsNotes have been placed by individual sales rep to explain any unusual numbers.
Business Process Monitoring
© CorPeuM 2014
Sample Applications
Business process monitoring made possible thru:– Integrated, multi-cube architecture– Intelligent attributes that link workload, outputs, resources to business
processes– Reporting capabilities that respects intelligent attributes
© CorPeuM 2014
Initiative Planning
Operational Activity
Model
Proposed Strategic
InitiativesData copied and ‘time-shifted’
when selected.
‘Live’ Strategic
Initiatives
Data copied back to ‘Proposed’ when
status set to ‘on hold’
‘Live’ Initiatives stored in separate dimension within the
Operational Activity Model where they are accumulated with
‘Business as usual’
Select initiative as ‘live’
Initiatives are ‘mini-projects’ that may be invoked to improve current performanceInvolves multiple data sets and a structured approval process• Balanced Scorecard application• Linking strategy to budgets• Project based planning, etc …
Propose
new initiative
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Initiative Planning
Defining workflow:
Propose
new initiative
How is the activity triggered?
Which users are involved?
What is their role?
What data is to be presented?
What response is required?
What processing takes place?
What are the deadlines?
What happens if this doesn’t happen?
How does the activity end?
© CorPeuM 2014
Workflow: Propose Initiative
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Propose Initiative
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Form Models
Project Name Project Long Name ... ... ... ... ... ...
Reduce IT Costs Reduce IT spending with 15%
Hire Sales Director Select recruitment agency to...
Sales Training Organize sales methodology training
Project Webinar Organize Series of ...
Form Model
Data
ModelDimension
© CorPeuM 2014
Propose Initiative
© CorPeuM 2014
Propose Initiative
Project Name Project Long Name ... ... ... ... ... ...
Reduce IT Costs Reduce IT spending with 15%
Hire Sales Director Select recruitment agency to...
Sales Training Organize sales methodology training
Project Webinar Organize Series of ...
Form Model
Initiative Dimension
© CorPeuM 2014
Propose Initiative
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Propose Initiative
Forms to enter Goals and Resources
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8
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Propose Initiative
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Propose Initiative
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Select Initiative
Workflow to select ‘approved’ initiatives to become ‘live’ projectsOptions can be given to adjust the start date as well as resources.Once adjustements have been approved, initiatives are placed alongside ‘Business as Usual’ data.
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Report Initiatives
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Integrated Multi-Block Reporting
Allows 1 report to contain data from multiple sets that act as one report
Live
Initiatives Model
Operational Activity
Model
© CorPeuM 2014
Sample Applications
Business process monitoringInitiative planning made possible thru:– Integrated, multi-cube architecture that supports unstructured data– Workflow that controls the complete propose, approve, monitor process– Form models that automatically adjust existing data model structures– Intelligent attributes that link workload, outputs, resources to initiatives
and business processes– Reporting capabilities that respects intelligent attributes and can
combine data in multiple data sets.
© CorPeuM 2014
Management Processes
Analyze current performance Analyze market forecast Set Baseline
Financial Plan
Set Objectives & StrategiesAssess risks
Develop initiatives Assess Initiative resources Agree plan
Assess risks
Assess Initiative combinations
Develop contingency
Strategic planning
Tactical planning
Financial planning
Management reporting
Forecasting
Risk management
Processes:
Assess risks
Evaluate options
Adjust plan
Develop contingency
Develop
Baseline BudgetDevelop funding plan Start
PlanDevelop
Initiative Budget
Measure initiative progress
Monitor Risks /
Assumptions
Report current and forecast
status
Measure Strategic
success
Measure financial
performance
Forecast Sales
Forecast Initiative status
Forecast Costs
Forecast Strategic
Outcomes
© CorPeuM 2014
Budgeting
Controlling Management Processes
“Best Practice companies decouple their internal management
processes from the calendar and provide a set of planning and
reporting processes that utilize continuous processing and
monitoring of activity.
Aspects of strategic planning are not once-a-year events but a
continuous process. The pace of change is so great that management
needs to monitor the strategic implications of new developments on a
continuous basis.”
Best Practices in Planning and Performance Management. David Axson
© CorPeuM 2014
Workflow and Models
Continuous planning requires the different planning/monitoring activities to be triggered by dates,
exceptions and events
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Cash / Funding ModelTarget Setting
Model
Detailed Forecast
Model
Detailed Actual
Models
Performance
History
Detailed Actual
Models
Detailed History
Models
Performance Measures
Model
Strategy Improvement
Model
Actual
Budget,
Forecast, Actual
Target
Forecast
Operational Activity
Model
Management Processes
Forecast
Analyze current performance Analyze market forecast Set Baseline
Financial Plan
Set Objectives & StrategiesAssess risks
STRATEGIC PLANNING
© CorPeuM 2014
Cash / Funding Model
Target Setting
Model
Detailed Forecast
Model
Detailed Actual
Models
Performance
History
Detailed Actual
Models
Detailed History
Models
Performance Measures
Model
Strategy Improvement
Model
Actual
Budget,
Forecast, Actual
Target
Forecast
Operational Activity
Model
Management Processes
Forecast
Develop
Baseline BudgetDevelop funding plan Start
PlanDevelop
Initiative Budget
FINANCIAL PLANNING
© CorPeuM 2014
Integrated multi-cube/multi-format architecture– Able to support different kinds of data, including business structures and unstructured
data that seamlessly link to one another that act as a single model.
Intelligent attributes– Allow dimension members to be related to each other and to specific measures to
automatically generate reports and data capture screens
Date based handling– Able to ‘time-shift’ data correctly and allows different versions of the same structure to be
applied to a single set of data
Dynamic workflow– Supports continuous planning but without the need to maintain complex menu options.
Automatically focuses user attention on to what is required and pro-actively warns when the execution of a plan is threatened.
Integrated reporting and analysis– Integral reporting system that has access to any data and any structure in any model.
These can be combined to produce complex report layouts that act as a single report.
CorPeuM: Key Differences
© CorPeuM 2014
Pricing
No up front feeNo annual maintenance feeLow ‘Pay as you use’ pricing modelAdministrator Training class 5 days
© CorPeuM 2014
CorPeuM Challenge
Looking for performance management applications that can take advantage of CorPeuM’s unique capabilities. E.g.– Organisations that are implementing a multi-year change strategy and where
they need to monitor progress and its impact on financial results
– Companies that have had considerable investment from Private Equity, where those investors want to closely monitor agreed strategic plans.
– Organisations that are looking to link their budget processes with a strategic management frameworks such as the Balanced Scorecard.
– Organisations that want to move to continuous planning
– ……
If you want to be a part of this program and would like to know more then contact me at:
© CorPeuM 2014
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Resources at www.corpeum.com
General white papers:Re-thinking the planning processWhat makes a strategy execution system
CorPeuM product papers:CPM PlatformSupporting strategy execution
Online case study videos:Cash flow forecasting
Questions?