Performance Management and Agility James Taylor, CEO
Mar 29, 2015
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
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