Transcript Performance Management

April 2012 Agenda






9:00 Arrive
9:15 Officer Announcements
Chicago chapter updates
9:30 Guest Speaker: Bryan Rogers
Performance Management
10:30
Networking Break
11:00
Group Round Table Discussion
12:00
Adjourn
International ABPMP Updates

New Registries Available:




CBOK Update
International Needs Volunteers:





Independent Consultant
Training Providers
Development around Training Provider program
CBPP study sessions
CBPP exams through the Chapters
Improve process for tracking certification / continuing education
Renew Certification
Chicago Chapter Updates


Chicago chapter meeting changes: update your calendars
NOW MEETING
SECOND FRIDAY OF EVERY OTHER MONTH
8:30-12:30 AM
Webinar links will be provided
Interested in happy hour events?


BrainStorm Chicago May 7-8: http://www.bpminstitute.org/events/brainstormchicago





TEK systems – IT trends in industry
Achieve Success With BPM
Applying BPM to Transform Your Business
Managing Processes and Decisions for Better Business Outcomes
Using Business Decision Management to Revolutionize Business Requirements and
Processes
Next Meeting: June 8, 2012
Welcome to new members



Name
Title, Company
What do you want to learn about Performance
Management and/or Process Management
Presented to
Agenda
 What is Business Process Management?
 What is Business Performance Management?
• What are common themes or issues in Business Performance Management?
 SEG & Bryan Rogers introduction
• What aspects are common between both BPM's and how can they be
leveraged together?
 Summary & Closing remarks
6
Business Process Management
 Business process management (BPM) is a holistic management approach
focused on aligning all aspects of an organization with the wants and needs of
clients.
 Business process management (BPM) is a systematic approach to making
an organization's workflow more effective, more efficient and more capable
of adapting to an ever-changing environment.
 A business process is an activity or set of activities that will accomplish a
specific organizational goal.
 The goal of BPM is to reduce human error and miscommunication and
focus stakeholders on the requirements of their roles.
7
Business Performance Management
 Business performance management is a set of management and analytic
processes that enable the management of an organization's performance to
achieve one or more pre-selected goals.
 Business performance management is contained within approaches to
business process management.
 Business performance management has three main activities:
1. Selection of goals,
2. Consolidation of measurement information relevant to an
organization’s progress against these goals, and
3. Interventions made by managers in light of this information with a
view to improving future performance against these goals.
8
Commonalities between Business Process
Management and Business Performance
Management
 Alignment of processes with needs of clients and goals of
organizations
 Measurement & Monitoring of processes and results
 Consolidation of Information
 Best Practices
 Solution Decision
9
Bryan Rogers, MBA, CPA
Principal, BPM Practice
Career Highlights




Financial Executive with over 20 years experience
FP&A positions with multi-billion dollar companies
Former VP of Finance for $300 million business
SME for Planning & Reporting
BPM Expertise
 Implementation & Design of Budgeting
Solutions
 BPM Process Redesign
 Monthly, Quarterly Executive
Management Reporting
 Business Intelligence Solutions
 Pre & Post Merger & Acquisition Planning
 Incentive Compensation Reporting &
Design
 Capital Project ROI Analysis
10
BPM – Selection of Goals
Stakeholders /
Investors
Board of
Directors /
Senior
Management
Line of
Business
Management
NonManagement
Employees
Key Performance Indicators (KPIs)
11
BPM – Consolidation of Information
 Dashboards
HRIS
 Metrics
 Reports
CRM
Business
Distributed via
Intelligence
• Handhelds
ERP
• iPads
• Web-access
• e-mail
CPM
12
• PDF
Best Practices: Business Performance
Management Process
Effective integration of people, processes & systems





Involve all department managers
Create complete organizational
integrity
Enhance accountability
Improve execution
Leverage individual skills
Business Performance Management
Planning Process Before Best Practice
Implementation
15
Best Practices: Business Performance
Management Process
Effective integration of people, processes & systems
People are your most important resource . . .
Do they spend their time . . .




re-keying in data or providing business insight?
making requests to IT or developing their own reports?
tying out financial results or developing scenarios?
performing manual tasks or reviewing exceptions?
What is the cost of underutilized human resources?
BPM Best Practices: Planning & Forecasting
1)
2)
3)
4)
5)
6)
7)
8)
Drive Collaboration
Align Strategic and Operating Plans
Create Driver-Based Plans
Provide Real-Time Visibility into Financial Performance
Evaluate Cause and Effect Relationships
Deliver Timely and Accurate Reports
Perform Continuous Rolling Forecasts
Perform What-if Analysis
17
Planning Process After Best Practice
Implementation
18
BPM – SaaS solutions
 Business Process Management (BPM) Software-as-a-service (SaaS), or
“software on-demand”, is business management software that is typically
deployed offsite by the vendor, and is accessed via the internet.
 The software may also be installed on a company’s own internal servers
and accessed via an intranet or internet. SaaS uses cloud technology whereby
multiple end-users, management, and IT access shared resources, software
and information.
 Vendors offering SaaS often provide both shared and dedicated resources
(hardware and software), and support a multi-tenant architecture. Licenses are
administered on a pay-as-you-go, or per user, basis.
19
Cloud-Based CPM Solution
Spreadsheets
Manual
Inefficient
Error-Prone
Non-collaborative
Cloud-Based CPM
Enterprise Apps
Difficult to Deploy
Fast to deploy
Low User-Adoption
Easy to use
Expensive, Poor ROI
Affordable
IT-Intensive
No IT required
20
On-Premise vs. Cloud-Based Solutions
21
Decision Criteria for Solution
Maturity
Data
Participants
Integration
Frequency
Reporting
Process
Expert
Type
Number
Source
How Often
Beginner
22
T
Complexity & Maturity of Planning and Reporting
Maturity
Data
Participants
Integration
Frequency
Reporting
Process
Expert
Metrics / KPIs
All Mgrs with KPI
Impact
Connector- Other
Ops Data
Rolling Forecasts
XBRL
Scenario Analysis
Functional Mgrs
Import Other Ops
Data
SEC Reporting
Collaborative
Online Dialogue
Monthly Forecasts
Dashboards
Alerting
Divisional Mgr
Connector GL
Data
Board Packs
Workflow
Operational Data
BS / Cash Flow
Inc. Statement
Sales
Capital
Senior Execs
Personnel
Expense
Beginner
Finance
Import GL Data
Quarterly Forecast
Mgmt Reporting
Export AP to GL
Semi-Annual
Revision
Variance Reports
No integration
Annual Budget
Budget Summary
Annotations
Email
Foundation for Successful Business Process or
Performance Management Implementation
1) Get Executive sponsorship early
2) Establish quick wins . . . Relieve the pain
3) Maintain project momentum
4) Create a baseline and define desired improvement in key metric
5) Build culture of continuous improvement
6) Transfer knowledge throughout organization
24
Roundtable Discussions
1) What strategies have you found to work well when implementing a new BPM
process? What has not worked well?
2) Have you established Key Performance Indicators or Metrics for your process?
3) How are these KPIs and Metrics communicated to the organization?
4) Does your process include established Best Practices and what are they?
5) What are your future plans for your BPM process and desired objectives?
25
Questions & Answers
Please reach out for further information:
Bryan Rogers, Principal [email protected]
26
Overall Trends in BPerfM




More enterprises move to cloud
Vendors wake up to virtualization
Performance benchmarks shift to competition
Introduction of new choices
Round Table Discussion Points

Best Practices in BPerfM and BProcM

Create inventory:






External organizations on KPI:




Identify 6-10 high level “core” processes (order to cash, idea to launch, etc)
Identify executives involved in managing these today
Ask what are they measuring today and how are they using it?
What decisions do they want to make but don’t have metrics today for it?
Try to show whether the metrics are aligned to a single process goal or compete
against each other?
KPI Library
APQC
HIMMS (Healthcare Info Mgmt)
Group consensus building – what is goal of process, then find KPI that
support it – use template to rank everyone’s first, second, third priority
to show team consensus
Round Table Discussion Points

Creating a Process Framework:


Facilitated discussion
Use of industry frameworks:




APQC Process Framework
Value-Chain.org
BPM incubator
Need to continual draft, present, communicate concept of
framework – everyone has different perspective of process start/end,
level of detail, etc.



Only map a process if you want to improve it..
Which ones are a priority?
Process has to be end-to-end and not functional or task level