BI Strategy - Performance Management Roadmap
Organizations of all types and sizes need to effectively manage
business performance. This is especially so in today’s complex,
highly regulated and dynamic business environment. Business managers
must improve both their decision making, and the speed of execution.
After hefty investments in making information available to the
entire enterprise through content management systems and portals,
few business users actively used such material in a logical fashion
to support decisions. The subjective decision still ruled.
Business intelligence capability addresses this weakness, providing
users with a logical view of information in the context of the work
they encounter on a daily basis.
True Performance Management goes far beyond traditional “Intelligent
Key metrics [KPI's] at all levels monitor how the enterprise and
its business units are performing against strategy. KPI's are derived
from analytical models developed to measure the impact of financial
and operational decisions on overall strategy achievement.
Businesses are struggling with the challenges of:
- External Forces - Shareholder, Competition,
Compliance, Public Scrutiny
- Internal Forces - Cost, Innovation, Adapability,
Shared Services, Efficiency
- Goal Focus - Continuous Improvement, Faster
Adaption, Business Alignment, Balanced Performance, Corporate
- Execution - Many data silos, What actions to
take, Too much information, Priorities
- Complexity - Annual Review Process, SEC Filings,
IFRS, Market Updates, Budgets & Forecasts, Unplanned Obstacles,
Rewards, Organizational Restructure, Information Systems, Matrix
Management, Corporate Performance, Strategy Maps & Scorecards,
A Performance Management Roadmap helps organisations move towards
a sustainable platform underpinned with a core set of operating
metrics across all services and all locations.
Its a continual journey, which aims to gradually improve the effectiveness
and adaptability to a changing market for the organization over
time. Over time, business managers and users will move from traditional
uses of historical information to a more real time, predictive environment,
constantly optimizing the investment in resources.
- Acts as a map forward
- Covers all dimensions of Performance Management
- Drives collaboration between the front line and back office
There are five characteristics of companies which master Performance
- Information-based decisions making is a core
part of the corporate culture— constantly emphasized and
- Analytics is used to drive a step by step
change in business outcomes, in partnership with customers and
suppliers, and is managed at an enterprise level
- Executives and business users alike, use analytical
- Seize opportunities to generate information,
creating a “discover and learn” culture
- Integrate quantitative analytical and intelligence
capabilities into business processes.
The Roadmap challenges are largely cultural, untangling ingrained
political relationships to free all users to access information
from all parts of the enterprise. Breaking down silos of data can
threaten the dominance of some managers, but is essential to achieve.
Performance Management programs must however, ensure that managers
retain the ability to manage their own performance while allowing
free and rapid distribution of shared information.
A Performance Management program must be seen as a long term program,
with costs, planning and control visible to stakeholders.
Decision making must be supported at all levels, not just at executive
level. Analytics can be used by over 90 percent of the organisation
in defining actions which need to be taken.
When organization leaders can become masters in Performance Management
they go beyond being mere users of business intelligence to become
BI Coaches of Intelligence Enterprises.
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