Transcript Slide 1

Driving Business Performance with Cognos 8 Scorecarding
Greg Ferenc Nagy, IBM Cognos, AT/EE, CIS/Russia
Agenda
 Financial Performance Management
 Strategy Execution Failure
 Strategy Management
 Scorecard Definition
 Cognos 8 Scorecarding
 Common Scorecarding Pitfalls
 Top Down Scorecarding Approach
FPM – A Specialized View of PM
Finance Financial Analytics and Reporting
Analyze and optimize performance
Why?
Sales
Product
Development
Enterprise Planning
What should
we be doing?
Plan, forecast and control enterprise resources
How are we doing?
How are we
Marketing
doing?
Financial Consolidation and Scorecarding
Monitor strategyWhat
and report
with
Operations
should
weconfidence
be doing?
Why?
Customer
Service
Human
Resources
IT/Systems
Question
How well do you know your Corporate Strategy?
 Can lay it out on paper in casual conversation
 Could put it together with a little thought and time
 Not sure it is communicated to my level of the organization
Strategy Execution Failure
Less than 10% of companies successfully
execute their strategy (Fortune Magazine)
• Mediocre growth
• Lost market share
• Lower profitability
Reasons for Strategy Execution Failure
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Lack of strategy communication
Lack of ownership & accountability
Lack of focus on strategic objectives
Lack of a comprehensive business view
Lack of strategic initiatives
Strategy Management
 Drive strategy execution from the top
 Translate strategy into terms everyone can understand
 Align every part of the organization
 Make strategy everyone’s job
 Make strategy a continual process
Gartner Scorecard Definition
 A scorecard is an application that helps
organizations measure and align the strategic
and tactical aspects of their businesses,
processes and individuals via goals and targets.
• Require a more structured approach and
framework than a dashboard, making use of a
management methodology such as BSC,
TQM, or Six Sigma.
• Helps manage your performance
Cognos 8 Scorecarding
 Automates the strategy management and scorecarding
process allowing an organization to link strategy to
execution
• Track the organization’s performance against
strategic objectives
• Communicate the strategy across the organization
• Ensure accountability and ownership
• Provide departmental and employee focus
• Link strategy to resource management (budgeting)
Common Scorecarding Pitfalls
 Too many non-important metrics in a scorecard
 No strategic importance
 Chasing non-strategic reds
 Initiatives/Projects/Reports not aligned with
strategic objectives
Top down approach
Strategic View – Focus on Prioritization
Operational View – Focus on Understanding
Diagnostic View – Focus on Direction
Analytic View - Prescriptive
Q/A
Q&A