driving business performance with microsoft performance management
DESCRIPTION
Learn how Microsoft technology supports your initative for performance management. PerformancePoint Server completes an end-to-end vision for Microsoft BI and enables organizations to monitor, analyze, and plan to drive results.TRANSCRIPT
Nic SmithBI Solutions MarketingMicrosoft Corporation
ScorecardsScorecards
Slide decksSlide decks
MeetingsMeetings
Analytic Analytic applicationsapplications
PresentationsPresentations
Financial reports Financial reports
DashboardsDashboards
WebcastsWebcasts
Charts and Charts and graphsgraphs
InternetInternet
Project plansProject plans
DocumentsDocuments
SpreadsheetsSpreadsheets
IntranetIntranetBlogsBlogs
PortalsPortals
RSS feedsRSS feeds
Business booksBusiness books
Television reportsTelevision reports
MagazinesMagazines
NewspapersNewspapersIM/chatIM/chat
EmailEmail
1990s1990s 2000s2000s
Financial Financial Systems Systems
InfrastructureInfrastructure
Increasing Increasing GlobalizationGlobalization
Internet Internet bubblebubble
Accounting Accounting ScandalsScandals
Shareholder, Board Shareholder, Board TransparencyTransparency
Business Business Trends Trends Affecting Affecting FinanceFinance
TechnologiTechnologies for es for
FinanceFinance
Business Business IntelligencIntelligenc
ee
InternetInternetE-mailE-mail
Y2K Y2K updatesupdates
Desktop Desktop AccountingAccounting
CompliancCompliance Controlse Controls
Enterprise Enterprise Risk Risk
ManagemeManagementnt
Bu
siness co
mp
lexity
Bu
siness co
mp
lexity
Information Information explosionexplosion
Source: "The Changing Role of the Finance Organization in a Multi-Polar World: Accenture High Performance Finance Study 2008."
High performers are more focused on strategic business issues than operational details
High performers invest in advanced capabilities
People
Processes & Methodologie
s
Technology
Organization-wide access to relevant business information (no IT filter)
Easy-to-use intelligence tools for all levels and roles
Role-based delivery of performance-related information
Scorecards, dashboards, and strategy maps that identify business drivers
Standardized KPIs to align with business goals and initiatives
Redesigned business processes to affect business drivers
Automated workflow for simpler consolidation and reporting
Data integration to combine information from existing systems
Data consistency, security, and integrity
Server-based views to allow collaboration and consistency – single version of the truth
Incre
asin
g V
alu
e
Organizational Alignment
Continual process Finance & Ops Management
Costing, budgeting, forecasting, tactical dashboards
Executive ManagementStrategic & capital planning, scorecards, risk dashboards
Front Line Employees
Collaboration, reports, action
Enterprise Performance Management (EPM) aligns and connects the entire organization – everyone knows
goals and roles
Performance Management
Human Resources
HR Analytics, Headcount Planning, Talent Scorecards, OPEX Planning & Analytics
Performance Management ApplicationsPerformance Management Applications
Financial
Budgeting, Planning and Forecasting, Consolidation, Management Reporting, Scorecards & Analytics
Operational/Supply Chain/MFG
Operational Dashboards, Supply Chain Analytics, Constraint Based Planning
Sales/Customer/Marketing
Analytic CRM, Sales Forecasting, Campaign Management & Analytics, Sales Scorecards
“I need to improve our analytics capabilities so we can understand our current business performance and do a better job of planning for the future."
“I need better visibility into my cost of operations so I can target specific cost reduction opportunities that won’t have a negative impact.”
“I need better visibility into our pipeline performance so I can focus on deals that help me grow business with my most profitable customers.”
“I need better visibility into our talent management so I can plan for growth and understand issues before they become troublesome.”
Point solutions for management processesLittle or no integrationDoesn’t deliver the integrated BI solutions
Data Mart
Data Warehous
e
CRMCRMCRMCRM PlanningPlanningPlanningPlanningSales Sales AnalyticsAnalytics
Sales Sales AnalyticsAnalytics
ManagemeManagement nt
ReportingReporting
ManagemeManagement nt
ReportingReporting
DashboarDashboardd
DashboarDashboardd
Users attempt to integrate data in their own environment (Office)Many management systems developed ‘offline’Disconnected from source and ‘formal’ systems
Need for an Integrated Approach
ForecastingForecastingWhat will happen?What will happen?
Planning and BudgetingPlanning and BudgetingWhat do I want to happen?What do I want to happen?
DashboardDashboardWhat is happening now?What is happening now?
AnalyticsAnalyticsWhy did this happen?Why did this happen?
ScorecardScorecard
How to coordinateHow to coordinate what happens?what happens?Management ReportingManagement Reporting
Financial ConsolidationFinancial Consolidation
What did happen?What did happen?
Common KPI’s Common KPI’s and Business Rulesand Business Rules
“Less than 5.0% of the typical workforce understands their organization’s strategy”
Kaplan & Norton
Actionable strategy has a financial plan
Source: IBM Business Consulting Services, The Global CFO Study 2005
Moderately effective organizations in managing performance
Utilize collaborative planning, reporting and decision-making process
Employ rolling forecasts, based on relevant business events
Use a streamlined, integrated budgeting process
Create enterprise-wide performance management reporting
48%
50%
55%
71%
28%
43%
65%
68%
50%Use linked and aligned scorecard metrics cascaded down to each function and business unit 35%
Recommended Actions Evidence from Highly Effective Organizations
Highly effective organizations in managing performance
Why is Planning Important?
The Microsoft Difference for Finance
Financial & Business Financial & Business ReportingReporting
Treasury & Cash Treasury & Cash ManagementManagement
Corporate Corporate StrategyStrategy
Budgeting & Budgeting & PlanningPlanning
ComplianceCompliance
Risk Risk ManagementManagement
Analysis & Analysis & MonitoringMonitoring
FINANCE DEPARTMENTFINANCE DEPARTMENT
Information Information TechnologyTechnology
Legal & RegulatoryLegal & Regulatory
Human ResourcesHuman Resources
Sales & MarketingSales & Marketing
Business UnitsBusiness Units
REST OF THE BUSINESSREST OF THE BUSINESS
Operations ManagementOperations Management
Data Management
Across Multiple Systems
What What happened?happened?Reporting, Reporting,
ConsolidationConsolidation
What What happened?happened?Reporting, Reporting,
ConsolidationConsolidation
What is happening?What is happening?Scorecards Scorecards
and Dashboardsand Dashboards
What is happening?What is happening?Scorecards Scorecards
and Dashboardsand Dashboards Why did it happen?Why did it happen?
AnalyticsAnalyticsWhy did it happen?Why did it happen?
AnalyticsAnalytics
What will happen?What will happen?ForecastingForecasting
What will happen?What will happen?ForecastingForecasting
What do I want to What do I want to happen?happen?
Planning, Budgeting Planning, Budgeting
What do I want to What do I want to happen?happen?
Planning, Budgeting Planning, Budgeting
MonitoringSeeing what is happening
Key performance indicators (KPIs) measure Key performance indicators (KPIs) measure performance at all levels of the performance at all levels of the organizationorganization
Scorecards and KPIs Scorecards and KPIs align, monitor, and align, monitor, and drive performancedrive performance
Real-time dashboards Real-time dashboards help decision-makers help decision-makers spot trends, spot trends, problems, and problems, and opportunitiesopportunities
AnalysisUnderstanding why it is happening
Business users can Business users can have the have the information their information their way—in exactly way—in exactly the view they the view they need and without need and without reliance on ITreliance on IT
Business users can analyze key measures by Business users can analyze key measures by product, geography, channel, segment, or product, geography, channel, segment, or other filtersother filters
PlanningShaping what will happen
Assumptions and Assumptions and business drivers are business drivers are part of the system, not part of the system, not offlineoffline
Model “what if” outcomes Model “what if” outcomes
to determine best to determine best course, alternatives, course, alternatives, and opportunities and opportunities
Planning based on analytical models for each business Planning based on analytical models for each business
area with accurate measures of resources and area with accurate measures of resources and resultsresults
END USER TOOLS AND PERFORMANCE MANAGEMENT APPLICATIONS
BI PLATFORM (RDBMS, ETL, OLAP, Reporting)
DELIVERY
Mainframe/ Departmental Systems
Oticon
Wenatex
High Performance is a Journey
Tac
tical
Operating
Aligning
Accelerating
Leading
No management methodologyManual planning processFinancial metricsBI = spreadsheets
Str
ateg
ic
Three to Five Year Progression
“Try on” methodology (BSC, Six Sigma)Process codification – financial planningDepartmental metricsPockets of BI, data marts
Methodology permeatesClosed-loop continuous processMetrics cascade throughout BI standardization
Innovate methodologyContinuous planning (frequency)Extended enterprise scorecardsBI extranets
Use
o
f B
I
First step is to know your “BI Maturity”
Complete and integratedBI and PerformanceManagement offering Agile products that adapt toyour information needsBuilt on a trusted partof your IT backbone
Microsoft Business IntelligenceVision and strategyVision and strategy
