performance management and agility james taylor, ceo

Performance Management and

Agility

James Taylor,CEO

About me

Independent consultant working with clients to help automate and improve decisions

Previously a VP at Fair Isaac whereI 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

james@decisionmanagementsolutions.com

The one slide you need

Performance Managementmeasures and monitorssupports people who make decisions

But systems make decisions too

Decision Management makes system decisions explicit

The combination builds cockpits not dashboards

AGENDA 1 Performance Management or Performance Monitoring

2 The pilot analogy

3 From dashboards to cockpits with Decision Management

Performance Managementor Performance Monitoring?

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Greater agility

Better decisions

Control performance

Understand drivers

Manage risk

Manage opportunities

The power of performance management

Control Understanding

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Greater agility

Better decisions

Control performance

Understand drivers

Manage risk

Manage opportunities

The barriers to performance

Control People Computers

Understanding Macro Micro

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People don’t 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

The pilot analogy

The business executive as fighter pilot

But cockpits have controls not just dials

And planes have auto pilots

And pilots learn on simulators

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Decision Management

Automates decisionsSo your systems have an auto pilot

Exposes how decisions are madeSo you have knobs and dials

Allows for simulationSo you can experiment and learn

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From dashboards to cockpits

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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

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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 processso manage it

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Decisions drive actions

A choice, a selection

Made after consideration

Results in action not just knowledge

The business value of decisions

Economic impactLow High

Type

Strategy

Tactics

Operations

“Making information more readily available is

important, but making better decisions based on information is what pays

the bills.”20

James Taylor & Neil RadenSmart (Enough) Systems

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 prescription’s renewal_date is less than 30 days in the future then set reminder=“email”

If patient’s age is less than 18 and member’s coverage is “standard” and member’s number_of_claims does not exceed 4 then set patient’s coverage to “standard”

Analytics add business insight

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Descriptive Analytics

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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?

Reduce time-to-action

Business event

Action taken

Decision latency

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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

The Decision Management technology stack

Decision Service

Business Rules

DescriptiveAnalytics

Adaptive Control

VisualizationBI

PerformanceManagement

KPIs

Business Process ManagementWeb Services

Enterprise Platform

PredictiveAnalytics

Optimization

DatabaseData

Warehouse

In-databaseAnalytics

Action plan

Identify your decisions

Adopt decisioning technology

Think cockpit not dashboard

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Shameless commerce

Decision Management Solutions can help you

Focus on the right decisionsImplement a blueprintDefine a strategy

For assistance, to find out more or if you have questions

decisionmanagementsolutions.com/learnmore

Thank you!

James Taylor, CEOjames@decisionmanagementsolutions.com

www.decisionmangementsolutions.com/learnmore