Loras College 2014 Business Analytics Symposium | Ron Dimon: EPM Done Right

Enterprise Performance Management Done Right

Ron Dimon, Advisory Services PartnerCheckPoint Consulting

#LCBigData14

@RonDimon

WAIT!!!• EPM is not

– The HR “Performance Management” Process– Enterprise Process Management– Enterprise Project Management– Evolution Petroleum Corporation– Equine Protozoal Myeloencephalitis (A horse

disease)

4

Agenda

1. What’s your strategy?

2. What’s possible in your organization?

3. Who is going to deliver on that?

4. How are you doing, right now?

5. Why did you get what you got?

6. Now what: what’s next?

7. Are we doing it right?

Business Questions

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“Organizations that have implemented (Enterprise)

Performance Management more broadly, are nearly

four times more likely to be among the most

competitive organizations in their industry.”

Brian McDonough, IDC (2010)

1. What’s your strategy?

• Profitable Revenue Growth• Operational Efficiency• Customer Satisfaction• Employee Engagement• Cash Cycle Effectiveness• Asset Utilization• Market Share

StrategicObjectives

2. What’s possible in your organization?

• What-if Scenarios– Financial Models– Operational Models

• Drivers• Historic data• Constraints• Predictive Analytics• Targets

StrategicObjectives

Enable the Debate

People Process Technology Data

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“Unless commitment is made, there are

only promises and hopes; but no plans”

Peter F. Drucker

3. Who is going to deliver on that?

• Who, what, how much, where, by when• Budgets, Plans & Forecasts

– AOP, P&L, Workforce, CAPEX, Marketing, Project, Capacity

• Top-down / Bottom-up

StrategicObjectives

Enable the Debate

People Process Technology Data

Agree on & Record

Commitments

targets

constraints

Now RUN the organization

• People & Capital:– Acquiring & Serving

Customers– With Products– In Markets– Through Channels– Using Supply Chains

StrategicObjectives

Debate Commit

Execute

• Generating Tons of Transactional Data:

• Quotes

• Invoices

• Contracts

• Inventory

• Pick, pack, ship

• A/R

• A/P

• Payroll, benefits

• Cash receipts

• Social

• Machine

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“However beautiful the strategy, you

should occasionally look at the results.”

Sir Winston Churchill

4. How are you doing, right now?

Useful:

– Right Person– Right Time– Right Info– Right level of detail– Financial & Operational– By

• Product• Customer• Time• Channel• Account

StrategicObjectives

Debate Commit

Execute

Gather all that data and turn it into

useful Information

People Process Technology Data

And• Allocated• Eliminated• Currency

converted

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“A good decision is based on knowledge

and not on numbers.”

Plato

5. Why did you get what you got?

• Analytics– Financial– Operational

• Trends• Benchmarks• Profitability• Variance• Regression• Statistical

StrategicObjectives

Debate Commit

Execute

People Process Technology Data

Gatherdrill-downUnderstand the

root-cause self-serve

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“It is a capital mistake to theorize before one

has data. Insensibly one begins to twist facts

to suit theories, instead of theories to suit

facts.”

Sherlock Holmes

6. Now what: what’s next?

• Are our results

and root causes

still in line with

our strategic

objectives?

• And given what

we know now,

how should we

improve our

models?

StrategicObjectives

Debate Commit

Execute

GatherUnder-stand

7. Are we doing it right?

StrategicObjectives

Debate Commit

Execute

GatherUnder-stand

GOVERN:Common Business Language

Common DataCommon Master Data

Automated Reconciliation

People Process Technology Data

From Operational Excellence to Management Excellence

StrategicObjectives

Debate Commit

Execute

GatherUnder-stand

Govern

ERP

GL

CRM

HRIS

SFA

Inven-tory

Mfg

Manage the business Run the business

Enterprise Performance Management is…

• The processes and technologies that enable people to gain new insights about the business, make better decisions, deploy resources more effectively, and continuously improve performance.

How can you enroll others in the value of EPM?

• EPM as a Decision Process• EPM as an Accountability Framework• EPM as a New Insight Generator• EPM as an Innovation Engine• EPM as a Continuous Improvement Process• EPM as a Management Operating System• EPM as a Performance Improvement Process

Think of it this way…

① A company is a network of conversationsWouldn’t it be better to have facts in your conversations?

② Strategy is a shared agreementAgreements need tracking, measuring, accountability and transparency.

③ It comes down to IntegrityImagine how you would behave if what you were promised was reliably going to happen.

④ So that we can produce results that are expected, over and over again.

Q & A