enterprise performance management event for financial ... · enterprise performance management...

Enterprise Performance Management Event for Financial Service Industries Gain Competitive Advantages through successful Enterprise Performance Management

Moscow, 14.3.2012 Jann Tadorian| Managing Partner Mobile: +41763915015 E-mail: [email protected]

3 3

Key Take Aways of Event

What is Enterprise Performance Management and what are its key components

How can Oracle/Hyperion Software support EPM

How can you execute your strategy in a pragmatic way with the Balanced Scorecard methodology

Hyperion Strategic Finance for Strategic Financial

Loan Management with Oracle and Hyperion Strategic Finance

4 4

Agenda Part I

Introduction to Inplenion

Overview Enterprise Performance Management (EPM)

The Enterprise Performance Management Framework

Q&A

5 5

Introduction to Inplenion

6 6

Jann Tadorian

CO-Founder and Managing Partner Inplenion Business Consulting Intl.

Master of Business Administration; Master of Information Management

15+ years professional experience in the field of performance management

Various positions in both consultancy and software companies

Experienced project manager and - coach

Course instructor „Automating the Balanced Scorecard “ at University

Industries: Financial Service Industry, Telecommunication and Life Science

Experience

Position

Education

Skills

Advisory, Coaching, Project Management and Management Training

Conception and implementation of EPM solutions

Strategy Management, Corporate Finance and Risk Management

7 7

Inplenion Business Consulting International

International consulting company headquartered in Switzerland and main offices in Zurich, Geneva, Frankfurt , Vienna, Dubai and Jeddah

Over 90 management years of experience in the field of Enterprise Performance Management (EPM) & Business Intelligence (BI)

Bridging Business & IT and transforming client’s EPM/BI initiatives into reality

Over 60 new clients in Consulting and Solution implementation in the past 4 years

Complete EPM/BI Services Portfolio (Consulting, Implementation, Training and Support)

Selected as the Oracle partner of choice for Hyperion Modules across EMEA

8 8

Competences

Controlling & performance management solutions — Consolidation and financial reporting

— Analysis / planning & forecasting / operational reporting

— Value based management and Balanced Scorecard

Conceptional work & project management — Analysis of business needs and requirements

— Design of EPM solutions

— Project lead and coaching

Implementation of Oracle EPM/BI products — Oracle/Hyperion Financial Management

— Oracle/Hyperion Planning /Essbase

— Oracle BI / Hyperion FDQM / DRM

— Oracle/Hyperion Strategic Finance

— Oracle Strategy and Scorecard Management

Education Services and change management

9 9

Customers

http://www.hahnag.de/hahn/content/hahnug/index.jsp

http://www.novelis.com/Internet/en-US/

http://www.dhl.ch/publish/ch/de.high.html

10 10

Excerpt Financial Services Customer

11 11

Enterprise Performance Management

Overview

12 12

Enterprise Performance Management is used to describe the methodologies, metrics, processes and systems used to monitor and manage the performance of an entire organization.

Management Processes

Strategy Formulation

Budgeting and Forecasting

Target Setting

Business Activity Monitoring

Management by Objective

… EPM Methodologies

Balanced Scorecard

Value Based Management

Risk Management

Total Quality Management

Intangible Asset Management

Metrics

Financial and Non financial

Short-term and Long-term

Qualitative and Quantitative

Lagging and Leading

Aligned

Applications

EPM Suites

Business Intelligence

Data Warehousing

Dashboards, Cockpits

and Scorecards

Adapted from Gartner


13 13

Why Enterprise Performance Management

The pressure on companies is stronger to day than ever. Following drivers are the cause:

Regulatory pressures (Basel III and Solvency II)

Cost pressure (need to control time, money and resources spent in the business)

Measurement pressures (the need to improve metrics from mountains of data trapped in systems)

Economic pressures (the continued soft economy requires implementation of tighter internal controls)

Strategic pressures (the emergence of real-time enterprise requires the removal of delays in planning and control cycles)

This requires from companies to:

Achieve sustainable performance improvement

Establish transparency on the company’s performance

Set up a consistent and integrated process from strategy development to strategy implementation and operations

Establish integrated controlling- and management systems

Excel in “time competence” as main competitive advantage (Real-time Enterprise)

14 14

Real-time Enterprise

Processes

Process-Cycles:

Management-Cycles:

Strategy-Cycles:

Business Units

Group

Purchase-Payment

Requirements-Resources

Demand-Services

Development-Market

Deviation-Insights

Objective-Employees

Actions/Initiatives

Ressources

Strategy Stimulus

“Real-time Enterprise” is a new management focus which requires sustainable and

comprehensive efforts to reduce the duration of “end to end” processes

Different Time Competencies

to be managed with in an integrated


Platform!

En

terp

ris

e

Vir

tua

l E

nte

rpri

se

Investment-Return

15 15


Framework

16 16

Management Challenges

Today’s Reality: Management

Processes Are Fragmented

Lack of business alignment

Low predictability in performance

Inconsistency in business decisions

ECONOMIC VALUE ADDED

(EVA)

ANALYZE

PERFORMANCE

GOAL

SETTING

SCORECARDS FINANCIAL

REPORTING

FINANCIAL

MODELING

VARIANCE

ANALYSIS

ROLLING

FORECAST

OPERATIONAL

PLANNING

MONITOR

RESULTS

$ € £ ¥

17 17

EPM Framework*

Struktur - und Prozessperspektive


optimiert werden, um

zufrieden zu stellen?”




Develop The Strategy



• Missions, Values, Vision

• Strategic Analysis

• Formulated Strategy








Translate The Strategy



• Priorities

• Strategy Maps

• KPIs/Targets

•Initiatives/Action Plans








Align The Organization



• Business Units

• Support Units

• Employess

• Board Members







Struktur - und Prozessperspektive Plan Operations



• Budgeting

• Sales Planning

• Resource Capacity Plan

• Process Improvement







Struktur - und Prozessperspektive Test and Adapt



• Profitability Analysis

• Strategy Correlations

• Emerging Strategies

• Stress Testing








Monitor and Report



• Strategy Reviews

• Operating Reviews

• Regulatory Reporting

• Sustainability Reporting

Execution Business Processes

Projects/Initiatives

Operating Plan

Strategic Plan

• Strategy Map

• Balanced Scorecard

• Stratex

• Budgets

• Forecasts

• Reports

Business Calendar

1 2

3

4

5

6

(*Adapted from Prof. Dr. Kaplan)

18 18

1. Develop the Strategy

1. What business are we in, and why? (Clarify mission, values and vision) 2. What are the key issues/Risks? (Conduct strategic analysis / PESTEL and SWOT) 3. What is Optimal Investment Mix/Portfolio (Conduct Investment Value Analysis) 4. What is our Strategic Plan? (Target Setting/ Stretch Targets)

Outcomes

1. Mission Statement 2. SWOT Analysis 3. Investment Portfolio 4. Strategy Formulation 5. Strategic Plan/ Strategic Financial Plan

Questions

19 19

Hyperion Strategic Finance

Integrated financial statements

Shareholder value

Run unlimited scenarios

Consolidate multiple business combinations

Evaluate strategic projects

Simulate effects of M&A

Debt Scheduling

Optimize capital structure

Target Setting

Account Integrity and Financial Modeling Speed

20 20

Crystal Ball From single point estimates to ranges

Crystal Ball is an Uncertainty Management tool for Uncertain times.

Failure to include the impact of uncertainty and risk in your analyses can derail your financial plans

Crystal Ball is an easy to use tool that allows you to: — quantify the uncertainty in your inputs

— see how these see the impact your KPI’s

— understand what are the biggest risk drivers.

The result is better quality decisions and increased confidence in your numbers

21 21

2. Translate the Strategy

Questions

Outcomes

1. Strategy Maps/strategic Objectives 2. KPIs and target values 3. Strategic initiatives and projects 4. Initiative budgeting 5. Accountabilities

1. How do we describe our strategy? (Strategy maps) 2. How do we measure our plan? (Select measures and define targets) 3. What action programs does our strategy need? (Choose strategic initiatives) 4. How do we fund our initiatives? (Establish Stratex) 5.Who will lead the execution of the strategy? (Create strategy execution teams)

22 22

2. Translate the Strategy- BSC

23 23

3. Align the Organization

Questions

Outcomes

1. Company/Business Unit Scorecards 2. Support Units scorecards 3. Employee Scorecards / Incentive System

1. How do we ensure that all organizational units are on the same page? (Align business units) 2. How do we align support units with business unit and corporate strategies? (Align support units) 3. How do we motivate employees to help us execute strategy? (Align employees)

24 24

Oracle Scorecard and Strategy Management

Measure, Monitor and Communicate your Strategy

Strategic Management Tool

Visualization of Strategic Goals

Efficient Maintenance of Strategic Elements

Ease of Use

Action Planning

Annotations

Leverage with Planning, Essbase and OBI

25 25

4. Plan Operations

Questions

Outcomes

1. Financial planning and budgeting, operational and functional planning 2. Process Improvement Initiatives

1. How do we link strategy with operating plans and budgets? (Sales Forecast, Resource Capacity Plan, Operating and Capital Budgets) 2. Which business process improvements are most critical for executing the strategy? (Improve key processes such as demand-supply alignment, product allocation, and integrated revenue planning) 3. How do you align functional/operational LOB plan with financial plans 4. How do you capture your detailed operational drivers

26 26

Hyperion Planning

Accelerate the Planning & Forecast Process

Centralized System

Align top-down and bottom-up

Consistent assumptions

Common allocations & calcs

Powerful workflow and process management for budgeting and forecasting

Leverage Essbase- powerful reporting and analysis

27 27

5. Monitor and Report

Questions

Outcomes

1. Performance Reports and Dasboards 2. Balanced Scorecard Reports and Dashboards 3. Financial Reporting and Financial Closing 4. Sustainability Reporting

1. Are our operations under control? (Hold operational review meetings / weekly operational dashboards or reports) 2. Are we executing our strategy well? (Hold strategy review meetings / monthly BSC reports) 3. Do you have a fast close process established? 4. How is your regulatory reporting process 5. Do you report on societal and environmental performance

28 28

Hyperion Financial Management

Patented financial consolidation and reporting features

Complete audit trails, workflow and validations

“Smart Dimensionality”

Flexible “what if” scenario management features

Powerful, reporting and analysis tools

Full integration with ERP and other transaction systems

Easy to customize and extend

Web-architected

Accelerate Reporting Cycles and Reduces Costs of Compliance

29 29

6. Test and Adapt

1. Updated strategy 2. Profitability analysis 3. Updated portfolio 4. Updated strategic priorities / long-term goals

1. Is our strategy working? (Strategy testing and adaptation) 2. Do we still have the right portfolio? (Investment Portfolio Mix) 3. Are our cause and effect assumptions valid? (Balanced Scorecard strategy maps)

Questions

Outcomes

30 30

Oracle Business Intelligence

Analysis, Reporting and Interactive Dashboards

Rich interactive visualization

Extended set of chart types

OLAP analysis capabilities

Integrates Relational and multidimensional data sources

MS Office Integration

Pixel perfect documents

31 31

The Management Calendar within one year

Q1 Q2

Strategy Update: CEO and executive team clarify strategy. Balanced Scorecard team facilitates development of corporate and strategy map.

Business lines and support units align their units with strategy Balanced Scorecard team facilitates development of corporate and strategy map

Q3

Planning and budgeting process by CFO

Personal goal setting by HR

Office of Strategy Management

oversees alignment of all management

processes with strategy

Q4

Weekly Operational Review Meetings

Monthly Strategy Review Meetings

enterprise performance management event for financial ... · enterprise performance management...

Documents