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Enterprise Performance
Management Maturity Model
Donald Davis – SVP EPM
December 2008
The Business Challenge
Organizations are challenged with balancing Profitability and
Value while maintaining proper Controls and Regulatory
Compliance.
Value
Control
Customer Shareholder
Profitability
Compliance
2
Moving Target
Multiple internal and external factors affect an organizations ability to
execute on this mandate.
Macro Economic Factors
Globalization
Regulatory Mandates
Organizational
Change
Capital
Availability
International Climate
Acquisitions / Divestures
3
The Business Challenge - Who Cares?
CEO

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In an environment
where the CEOs is being
asked to grow revenues
with less manpower than
ever before, new
regulations are getting in
their way of being
effective.
Quality data can only be
found by drawing data
from a centralized data
warehouse that contain
every interaction with
the customer as well as
when and where it is
appropriate to contact
them.
CFO


CIO
In the post SarbanesOxley environment
where a CFO is asked to
sign off on financial
statements, the quality
of data and the systems
that produce that data
are being scrutinized
now more than ever
before.
Growth can only come
with efficient
architectures and
synergistic investments
in technology.

The CIO is faced with
both sides of the
business; needs for
growth and expansion
and cost justification for
each IT project.

Institutions are spending
millions each year on IT
but feel they have
reached the limits that
enable them to contain
costs yet enable largescale acquisitions.
CSO

Risk compliance in
financial institutions
has become more
complicated by a
number of regulations
such as Basel II accord
and USA Patriot act.

A siloed approach to
compliance is no
longer valid,
significant savings can
be found in the
pooling of initiatives
around risk.
Pressure
Enterprise
4
The EPM Value Proposition
Enterprise Performance Management solutions embody the
standards and controls to assimilate Information and
institute the processes necessary for reporting,
predicting, and capitalizing on business and economic
events.
In order for Value to be realized it must be
,
and
.
“The mind revels in conjecture. Where information is lacking, it will gladly fill
in the gaps.” - James Geary
5
What is EPM?
“Enterprise performance management (EPM) includes not only
the processes used to manage enterprise performance (such as
strategy formulation, budgeting and forecasting), but also the
methodologies that may drive some of the processes (such as
the balanced scorecard or value based management), and the
metrics used to measure performance against strategic and
operational performance goals.”
– Gartner: Rayner, Buytendijk, Geishecker
“Business performance management consists of a set of
processes, frameworks, and systems for planning, measuring,
communicating, and monitoring business results. These activities
are typically closely linked to corporate strategies and objectives
and might be driven down to many individuals within an
organization to encourage accountability and control.”
– Forrester: Hammerman, Leaver, Donnelly
“EPM is all about the alignment of corporate goals with
departmental execution to achieve optimal performance.
It’s not just about better reporting.”
– AMR Research: Durocher, Hagerty
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EPM / BI Architectural Stack

Forrester Aug
2008
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
Fortune 1000
Planning Major
EPM / BI
Investments: 50%
6.5% increase from
2007
Largest Increase in
IT Expenditures in
2008 & 2009
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EPM Roadmap
EPM Organizational Culture
Strategic Goal Aligned with Operational Measurements
Performance Appraisals & Incentive Compensation aligned with Operational Measures
Business Process Optimization
Master Data Management & Governance
Formal Monitoring and Administration
Common User Interface
Reporting -> Spreadsheet -> Web -> Dashboards -> Querying -> Self Sufficient Users
Financial Reporting
Reporting, Variance
Analysis
Analysis; Slice &
Dice, Drill Downs
Near to Real Time
Analysis &
Monitoring
Ad Hoc, BI End User
Tools, Mass Access
Consolidation
s & Financial
Reporting
Business
Planning
Management
Reporting &
Profitability
Analysis
Operational
Analytics
Enterprise
Information
Consumption
Corp. Accounting
FP&A
FP&A, LOB’s
LOB’s, Ops
Enterprise wide
SEC, Regulatory,
GAAP
Strategic,
Operational
Product, Customer
Profitability
Sales & Marketing,
Supply Chain, MFG.
Focused Reporting &
Querying
ETL (Extract Transform Load)
General
Ledgers
ERP, Sales,
Operational
Data Mart(s)
Data Warehouse
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EPM Maturity Model
Level 4 - Innovating

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Accountability at all levels
Models shift based on changing markets
Enterprise scale investments
Level 3 - Optimizing

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Clear metrics drive the business
Companies strategic rollout
performance optimization strategies
Level 2 - Integrating


Business process focus
Measurable benefits harder to identify
Level 1 - Operating


Bottoms-Up approach to managing
performance
Low risk, High reward
9
EPM Framework
Architecture, Strategy &
Planning
-Systems architecture strategy
-Systems/0rganizational
assessments & roadmaps
-Organization roles &
responsibilities
-Business process change
management
-Data strategies
-Data governance
-Application management &
support processes
Performance Engineering
-IT performance center of excellence
-Performance testing
-Operational monitoring
-IT quality assurance
-Infrastructure management
-IT governance & portfolio management
Enterprise Performance Management
-Financial consolidations & reporting
-Regulatory reporting & compliance
-Budgeting & forecasting
-Costing & profitability
-Management reporting & analysis
-Data Integration & Audit
Data Management & Business
Intelligence
-Enterprise reporting & information
delivery
-Data management practices
-Multidimensional analysis
-Master Data Management
-BI Rationalization
10
Trends in EPM / BI
Master Data
Management
Enterprise Strategies
Data Integration
Convergence of
EPM and BI &
COE’s
Mature Computing
Environments
11
Donald Davis – SVP EPM
614-352-3959
[email protected]