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HOW TO LEVERAGE CPM IN YOUR ORGANIZATION
Learning Goals
− Operational and management excellence
− How organizations achieve operational and management excellence via CPM
− Best practices in CPM
− Leveraging CPM technology for your organization
Best Practices – Corporate Performance Management
Performance Improvement
PERFORMANCE MANAGEMENT
What are your top FOCUS AREAS in the coming year?
68%61%
56%53%
50%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Planning, Budgeting, andForecasting
Financial Planning andAnalysis
General Accounting andFinancial Reporting
Cost Accounting andManagement
Fixed Asset Accounting
N = 258
PERFORMANCE MANAGEMENT
What are your top priority ACTIVITIES in the coming year?
66% 65% 64% 62% 61%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Implementing ProcessAutomation
Improving ProcessPerformance
Implementing New Tools& Technologies
Standardizing End-to-End Processes
Engaging in DataAnalytics
N = 254
PERFORMANCE MANAGEMENT
2007 – The Analytics Industry Consolidates…
PERFORMANCE MANAGEMENT
…and Innovation Suffered
Operational &Management
Excellence
OPERATIONAL & MANAGEMENT EXCELLENCE
Operational AND Management Excellence
CompetitiveAdvantage
1 Make SMART Decisions with deeper insights
2 Gain AGILITY from which to adapt and drive decisions
3 Ensure ALIGNMENT throughout the organization
4 Drive down COSTS of processes and operations
5 Improve QUALITY throughout the organization
6 Increase operational SPEED
MANAGE the Business
TRANSACT the Business
OPERATIONAL & MANAGEMENT EXCELLENCE
Removing Boundaries & Unifying Processes
A Unified Enterprise requires moving beyond Finance to a cross-functional analytics imperative
OPERATIONAL & MANAGEMENT EXCELLENCE
Applying Cross-Functional Frameworks
PipelineAnalysis
TriangulatedForecasting
Sales Team Effectiveness
Up-sell / Cross-sell
Cycle TimeAnalysis
Lead Conversion
Sales
Campaign Scorecard
Response Rates
Product Propensity
Loyalty andAttrition
Market Basket Analysis
Campaign ROI
Marketing
OrderLinearityOrders
vs. AvailableInventory
Cycle TimeAnalysis
BacklogAnalysis
FulfillmentStatus
CustomerReceivables
Order Mgmt& Fulfillment
Supplier Performance
Spend Analysis
Procurement Cycle Times
Inventory Availability
EmployeeExpenses
BOM Analysis
Supply Chain
A/R & A/PAnalysis
GL / BalanceSheet Analysis
Customer& Product
Profitability
P&L Analysis
ExpenseManagement
Cash FlowAnalysis
Financials
Churn Propensity
Customer Satisfaction
ResolutionRates
Service RepEffectiveness
Service CostAnalysis
ServiceTrends
Service &Contact Center
Employee Productivity
Compensation Analysis
HR Compliance Reporting
WorkforceProfile
TurnoverTrends
Return on Human Capital
HumanResources
CPM Best Practices
CPM BEST PRACTICES
What is Corporate Performance Management (CPM)
Provides and enables the organizational competency to dynamically manage execution of the business strategy
― High performers identify and optimize the complete cycle of performance management
― Integration is key; from strategic planning to operational reporting
― Identify and design necessary components of a service delivery model to maximize value; i.e. more than technology alone
― Enabling CPM technologies play a key role in the integration and the optimal execution of the Office of Finance
Maximizing the impact and efficiency of Corporate Performance Management requires intentional process and system integration across all elements.
CPM BEST PRACTICES
Financial Close & Consolidation – Finance Driven
Sub Ledger Close General Ledger Close Data Assurance Consolidation Internal Mgmt
ReportingExternal Financial
Reporting Filing
Close Sub Ledgers into GL
(i.e. AR, AP, FA, etc.)
Perform Reconciliations• Bank Reconciliations• Standard Account Recon• Sub Ledger Recon• Post Accruals
Deliver self service reporting to the organization for performance discussions and plan realignment
Automate external reporting gathering disclosures and financial information
Automate and deliver Edgar & XBRL filings, Statutory filings, Tax, etc.
Gather and validate complete data sets to support all financial reporting needs
(i.e. Legal Entity, Segment, Management, Tax, Sustainability Metrics, etc.)
Automate consolidated financial reporting leveraging multiple hierarchies and calculations
(i.e. CTA, FASB, KPI’s, FX, Retained Earnings, Topside Entries etc.)
CPM BEST PRACTICES
Financial Close & Consolidation
― Create End-to-End Governance & Workflow
― Enforce of Regulatory Compliance; i.e. SOX
― Standardize Chart of Accounts (COA)
― Eliminate Management Reporting Details
― Include Tax Solutions
Best Practices
96%Degree of JE Automation
41%Lower Audit Fees
4DClose Cycle Advantage
CPM BEST PRACTICES
Planning, Budgeting, & Forecasting – Unified
Long Term Strategic Plan Annual Budget / Plan Evaluate Workforce & Capital Rolling / Monthly Forecast Include Operational Details
Run models based on key strategies
Set targets
Seed targets to annual operating plan
Start annual process
Include operational details and validate feasibility to financial plan
Evaluate resource and capital requirements
Update forecast with latest budget and actuals
FinancialStrategy
OperationalDetail
CPM BEST PRACTICES
Planning, Budgeting, & Forecasting
― Unify Financial, Operational & Demand Plans
― Integrate Planning Calendar
― Use Drivers & “Up Level” Detail
― Model Specific Impact; Workforce & CapEX
― Forecast Continuously
Best Practices
25%Decrease
Budget Creation
34%Reduction Cycle Time
3XGreater Accuracy
CPM BEST PRACTICES
Defining a CPM Foundation
Data Requirements & Strategy
Systems &Applications
Data Management & Masterdata
Identify stakeholders Identify reporting needs Understand current state Understand metrics and drivers
Systems to support the process; to empower users; to enable decision making
Not an end unto itself
Rules for capturing and maintaining data – drives data governance to the organization
$987,654.32$12,345.677
3
4
4,,
Masterdata is theFOUNDATION
At the top of the House are
DECISIONS& DIRECTION
Data model drives towards information / reporting needs
Data model empowers institutionalized data governance
Target is consistency, relevance, accuracy and timeliness in reported information
Data Sets
Dimensions
Hierarchies KPI’s
Dashboards
Reports
Cross Functional Data Dynamic Dashboard with
Analytical Drilling
Best-of-Breed Market Leader Single Vendor Platform for
EPM
Most organizations fail to set strategy and define overall business requirements before implementing systems and applications.
CPM BEST PRACTICES
Defining a CPM Foundation
― Drive Common Master Data
― Develop User Managed Integration
― Deliver Self-Service Analytics
― Enable Data Lineage & Audit Trail
― Integrate Management & Operational Data
Best Practices
30%Reduction
Process / Rework
83%Standard Chart of
Accounts (COA)
2XCommon
Master Data
CPM BEST PRACTICES
Supporting User Diversity
Self-Service Visualization Dashboards Published Narrative
TechnicallyCapable
Professionally Informed
Business Analysts
Managers
Executives
Interactive ExperienceFree Form Guided
CPM BEST PRACTICES
Supporting Diversity
― Develop Standards
― Address User Consumption Modes
― Ensure Data Governance
― Create Integrated Catalog of KPI
― Link Finance & Operations
Best Practices
64%Reduction
Standard Reports
70%Greater Confidence
Information
44%Centralized Source
Reporting & Analytics
“Virtually all organizations we identified as aggressive analytics competitors are clear leaders
in their fields, and they attribute their success to the masterful exploitation of data.”
Thomas H. DavenportHarvard Business Review
Competing on Analytics
CPM BEST PRACTICES
Competing with Advanced Analytics
CPM BEST PRACTICES
Advanced Analytics
― Industry Specific
― Use Automation to create Business Drivers
― Pre-Built Integration to Transaction Details
― Find an Extensible Platform
― Adopt Enterprise-Wide Standards
Best Practices
6XGreater Predictive Ability
29%Fast Response
on Query
30%Reduction of
Data Validation
CPM BEST PRACTICES
Advanced Analytics Maturity Models
Predictive modeling / optimization
Scenario / tradeoff simulation
Guided analysis and exception reporting
Company and individual performance visibility
Operational reportingHindsight
(Descriptive)Enterprise data management
Foresight(Predictive)
Insight(Diagnostic)
Amplified Intelligence and Automation
(Prescriptive)Cognitive Intelligence/ Machine Learning
Robotics
Neural Networks
NLP/NLG
Predictive Analytics
Machine learning
RPAAI
Test Control
A | B Testing
Regression Models
Business Simulations
Hindsight Data Cuts
Visualization
What happened?
What will happen?
Why did it happen?
How can we make it happen?Advanced
Analytics
Business Intelligence
Data
High
Low
Matu
rity M
odel
CPM BEST PRACTICES
Robotic Process Automation (RPA)
― Automating manual, standardized, and rule-based processes
Use Cases
A Whole New World
A WHOLE NEW WORLD
Traditional Data Ecosystem
Details Applied Analytics Delivery
A WHOLE NEW WORLD
The Traditional Analytic Architecture
Difficult and Expensive Build with Reduced Data Fidelity
FULL Detail LESS Detail LITTLE Detail Lots of XL?
25MB52MB97MB
127MB
A WHOLE NEW WORLD
Platform… Platform… Leverage a Unified Platform…
FULL Detail FULL Detail FULL Access
A Unified Data Platform
ONESTREAM SOFTWARE | ALL RIGHTS RESERVED 68
Conclusions & Next Steps
CONCLUSIONS & NEXT STEPS
Key Takeaways
1. Consolidation in the CPM market has…― Stunted innovation― Created new players
2. Analytics is a MUST
3. Find a great, unified platform― Integration challenges will hold you back
4. Data comes in many flavors― Transactions > Operational > Management― Relational… Multidimensional… BLENDED
5. So What? ― Replace with a platform― Extend via the platform
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CONCLUSIONS & NEXT STEPS
Strategic Assessments & Roadmaps
An array of strategic assessment and roadmap services that enable strategic alignment for your most challenging business problems.―Strategic problem solving―Strategy definition & alignment― Integration services―Capability & Strategic Assessments―Web Accessibility & Compliance
CONCLUSIONS & NEXT STEPS
Change Enablement
1. Stakeholder Alignment – Is there awareness, understanding, support and commitment for the initiative?
2. Organizational Readiness – What do we need to do to get ready for the change/transition?
3. Knowledge and Capabilities – Do our people understand, and do they have the right capabilities and skill-sets to make the journey?
4. Communications – Are we deploying the right messages to the right populations using the right channels to increase awareness and understanding of changes?
Focus Areas
