Enterprise Performance Management Done Right: An Operating System for Your Organization

"This book provides a framework to hang your EPM road map onto, and helps you prioritize what′s next on your journey to managing and improving performance."
From the Foreword by Gebhard Rainer, EVP and CFO, Hyatt Hotels Corporation

A "management operating system" for higher performance

For many organizations, the pieces of successful performance management are all in place. What′s missing is how these pieces work together to produce positive, sustainable results. Enterprise Performance Management Done Right fills in the existing gaps, supplying a unifying framework to connect technology, processes, decision–making, and vision. This creates a closed–loop management approach that drives continuous improvement, promotes flexibility in the organization, and empowers employees at all levels.

Enterprise Performance Management Done Right offers methods and practices that will:

Better link operational metrics with financial performance Allow more visibility into key drivers of value for the business Hone organizational focus towards high returns Bring agility to business models and processes Tie results to accountability And more

Enterprise Performance Management Done Right offers a one–stop resource for unlocking organizational value through new levels of insight and action.

FOREWORD xi

PREFACE xiii

ACKNOWLEDGMENTS xxi

CHAPTER 1 What s Broken and What s Possible 1

Strategy–Execution Gap 1

Buckets of Pain 5

The Promise of EPM 7

What Enterprise/Corporate/Business Performance Management Is Not 7

Business Intelligence with a Purpose 12

Notes 13

CHAPTER 2 An Enterprise Performance Management Process 15

Context 16

Impact 17

Responsibility 17

Management Operating System 18

Macro and Micro 27

The Middle 28

Summary 29

Notes 30

CHAPTER 3 Gather: Turning Data into Information 31

Management by Exception 33

Your Point of View 35

Information Qualities 38

Information Delivery 40

Management and Statutory Reporting 44

Sustainability Reporting 47

Enabling Technologies 51

Rationalization 53

Potential Quick Wins 54

Summary 54

Notes 55

CHAPTER 4 Understand: Turning Insights into Actions 57

Business Questions 58

Patterns and New Insights 63

Big Data and Predictive Analytics 71

Data Visualization 73

Enabling Technologies 75

Components for Your EPM Roadmap 75

Potential Quick Wins 75

Summary 77

Notes 77

CHAPTER 5 Debate: Turning What If into What s Next 79

People 81

The Process 83

Scenarios 85

Resilience 88

Drivers: What Moves the Needle? 89

Debate Management 91

Enabling Technologies 94

Potential Quick Wins 95

Summary 96

Note 96

CHAPTER 6 Commit: Bringing Accountability and Focus to the Enterprise 97

Accountability 100

Gaming the System 103

Enterprise Planning and Forecasting 104

Enabling Technologies 108

Ingredients for Your EPM Roadmap 108

Potential Quick Wins 108

Summary 109

Notes 110

CHAPTER 7 Execute: From Insight to Actions to Results 111

Everything Is Connected 111

Sales Performance Management 113

Sales Operations Performance 114

Order to Cash Performance Management 116

Supply Chain Performance Management 119

Marketing Performance Management 123

Summary 128

Notes 128

CHAPTER 8 Strategy: Aligned to the Right Outcomes 129

The Language of Strategy 129

Functional Value Maps 130

Optics: Line of Sight 132

Metrics Equal Focus 134

Profitability 136

Strategic Flexibility 137

Closing the Gap 138

Summary 139

Notes 140

CHAPTER 9 Bringing It All Together 141

Alignment 142

A Common Business Language 149

Maturity Is in the Arrows 151

Return on Investment and Total Cost of Ownership 154

Standard Architecture 156

Your EPM Roadmap 156

Organizational Readiness: The EPM Center of Excellence 161

Paralyzed by Feuds? 161

EPM and Incentive Plans 162

How Do You Get Started? 163

Summary 167

Notes 167

APPENDIX: AN EPM MATURITY MODEL 169

BIBLIOGRAPHY 175

ABOUT THE AUTHOR 179

INDEX 181

RON DIMON is an experienced enterprise performance management executive with a proven record for strategy–to–execution initiatives. He is the Advisory Services partner at CheckPoint Consulting, LLC, a full–service EPM implementation firm. He previously worked at Hyperion Solutions (now part of Oracle Corp.) as senior director of the office of strategy and started his career with Deloitte. Ron has been a coeditor of or contributor to five books.