Video & Slides: http://www.proformative.com/events/corporate-performance-management-scorecards-dashboards-drive-results-webinar-november-15-2012 Companies have access to more and more data, and as such are challenged in leveraging the data to identify areas of operation that impact company performance, and creating metrics that allow them to effectively manage these areas of operation. What information and metrics do finance, accounting, treasury and related leaders really want, and actually need? How is technology being leveraged to consolidate, analyze and deliver metrics and dashboards that offer the right data to company leaders?

1. THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALS
Tim Weeks
Partner and Director of Scoreboards, CFOwise

3. Learning Objectives
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4. THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALS
Tim Weeks
Partner and Director of Scoreboards, CFOwise

5. How many minutes are actually played in an NFL football game?

6. How many minutes are actually played in an NFL football game?
–
11 minutes

7. How many minutes are actually played in an NFL football game?
–
11 minutes
–
–
–
–
–
1 hour of commercials
75 minutes of player shots, at the line of scrimmage, in the huddle and
general milling about
7% of the broadcast on coaches and referees
Costs anywhere between $150K and $250K to produce a game with a
staff ranging between 80 to 200
Source: WSJ, 11 Minutes of Action, 1/15/10

8. Key Metrics
NFL Football?
Factor
Fewer Turnovers
More Rushing Yards
Greater Time of Possession
More Total Yards
Higher 3rd Down Conversions
More First Downs
Home
83%
78%
77%
75%
75%
73%
Away
72%
67%
62%
60%
59%
57%
Overall
Vs the Spread
78%
75%
73%
69%
70%
66%
68%
64%
68%
63%
66%
61%
Source: http://twominutewarning.com/g13.htm

9. How many calories does an average NBA player burn during a game?

10. How many calories does an average NBA player burn during a game?
–
Approximately 860 calories on average
–
NBA forward runs approx 3 miles on average (college 2 miles)
–
Source: AOL News 9/14/10

11. Key Metrics
NBA Basketball?
• Two most important predictors are…
– Field goal conversion (% of baskets made compared to shots)
– Average 3-point conversion of opposing team
• Field goal conversion 3 times greater variance than 3-point
conversion of other team
• Suggests offense more important than defense
• Every 1% increase in field goal conversion provides a 7.9%
increase in winning %

12. What is the average life of a baseball in Major League Baseball?

13. What is the average life of a baseball in Major League Baseball?
–
Average is 6 pitches
–
On average 60-70 balls are used in a game
–
Home team has to have 90 new baseballs on hand
–
Average of 12 hockey pucks are used in an NHL game
–
Source: Wiki.answers.com

14. Key Metrics
MLB Baseball?
• Pitching most important
• Starting pitcher’s “Earned Run Average” (ERA) best
predictor
• Second most important is starting pitcher’s WHIP
(Walks and Hits per Inning Pitched)

15. What Do We Know?

16. What Do We Know?
Teams
Score
Runners on Base
Channel (Branding)
Home Team
Pitch Count
Outs
Inning
Game

17. Therefore, What?
Teams
Score
Runners on Base
Channel (Branding)
Home Team
Pitch Count
Outs
Inning
Game

18. Applying Sports Scoreboards to Our Companies
Scoreboards Become More Valuable Over Time
Familiarity over time leads to quick understanding of results; what would a sporting event be like without
a Scoreboard? For leaders and executives, they bring clarity and peace of mind.
What Should Be Measured?
Can be subtle; at times even unobvious; what are the key metrics; profit per X.
Defining an Opponent
While our companies are facing competitors we cannot always measure directly against those direct
competitors; so our competition becomes our…goal, forecast, budget, results from last month,
last week, same month prior year, etc; assist the executive team in understanding the game.
Predictors of Success
Did we win or lose today? This Week? This Month? This Year?
Therefore, What?
Purpose of the Scoreboards is to lead to good decision making; strategy; quick identification of negative
trends and confirmation of previous strategic decisions.

19. Building Your Company’s Scoreboards
Using graphics and current technologies to tell the story.
Determining the Metrics on Your Scoreboards
Guidelines for determining your Company’s metrics.
Scoreboards for the Entire Team
Not just for the executive team. Every group in the enterprise can benefit.

20. Building Your Company’s Scoreboards
Traditional Financial Package
Excel Based Reports
Imported to Acrobat Pro and Marked Up
Charts from Excel

21. Building Your Company’s Scoreboards

22. Building Your Company’s Scoreboards
Example of Cloud Based Scoreboards
Trends, sorting, creative charting
Power in speedometers, stoplights and other chart options
Customize targets, ranges and min/max options

23. Building Your Company’s Scoreboards
Features and Flexibility
From simple to complex
Interactive
Pivot capabilities
Graphics vs spreadsheets
Identifying the critical issues quickly

24. Building Your Company’s Scoreboards
Online Scoreboards
Interactive
Quick Identification of Trends, Key Metrics, Ratios
Accessible from Any Location with Internet Access
*** Significantly Reduces Preparation Time Prior to Meetings
*** Quickly Keys on Most Important Results

25. Pitney Bowes
Good to Great
Profit per Customer
By Jim Collins
Wells Fargo
Profit per Employee
Walgreen’s
Profit per Customer Visit
profit per “X”
What you are
deeply passionate
about
What you
can be best
in the
world at
What drives
your economic
engine
Kroger
Profit per Local Population
Nucor Steel
Profit per Ton of Finished Steel

26. Good to Great
By Jim Collins
“The denominator can be quite subtle, sometimes even unobvious. The key is to
use the question of the denominator to gain understanding and insight into your
economic model.”
“The denominator question serves as a mechanism to force deeper
understanding of the key drivers in your economic engine. As the
denominator question emerged from the research, we tested the question
on a number of executive teams. We found that the question always
stimulated intense dialogue and debate. Furthermore, even in cases
where the team failed (or refused) to identify a single denominator, the
challenge of the question drove them to deeper insight. And that is, after
all, the point—to have a denominator not for the sake of having a
denominator, but for the sake of gaining insight that ultimately leads to
more robust and sustainable economics.”

27. Determining Your Metrics
Monthly Indicators
Weekly Indicators
Daily Indicators
5 Year Forecast
Annual Forecast
Quarterly Forecast

28. Determining Your Metrics
Monthly Indicators
Profit and Loss
Balance Sheet
Statement of Cash Flows
Industry Comparisons
Key Performance and Health Ratios
Weekly Indicators
Metrics for Each Department, Discipline or Team
1 to 3 of the Most Critical Metrics
Condensed or Simplified Version of a Balanced Scorecard
Daily Indicators
The 1 to 3 Key Drivers of the Company’s Economic Engine

29. Determining Your Metrics
Quarterly Forecast
13-Week Rolling Forecast of Cash Flows
Identifies and Manages the Peaks and Valleys of Cash Flow
Annual Forecast
Compares Actual Results to the Company’s Forecast, Budget or Plan
Analyzes Performance Month by Month
Focus on Analyzing Variances
5 Year Forecast
Financial Model or Projection of the Core Financial Statements
Assumptions of the Company’s Growth Strategy
Planned Acquisitions, Divestitures, New Product Launches, Pricing Strategies

30. THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALS

31. Scoreboards Provide Part of the Translation
Learn through trial and error how the members of your team learn and
understand. Getting your scoreboards right is an ongoing process.
Let Team Members Discover
Therefore, What? Report Cards.
Who in the Enterprise Should be Included?
Division or team leaders, on the line, in the field; who has influence on key
performance indicators?
Who Outside the Enterprise Could Benefit?
Improved communication with bankers, vendors and other partners.

32. Just Get Started
Let go of the idea the process must be perfect. Engage in dialogue at the executive
level. Begin on the back of a napkin if that is what you have.
Flexibility in Technology and Metrics
Your first attempt is the rough draft. Do not invest in technology that has to be
executed perfectly the first time. Your Scoreboards and the metrics
you track WILL change.
Accept Everyone Understands in His or Her Own Way
Be patient with your team. Continue to try new methods until each member of the
team has his or her A-Ha moment.
Scoreboards Must be Accessible Physically and Intellectually
Make it easy to access the Scoreboards. The more—clicks, files that need to be
opened, steps, etc—required the less likely your team is to review the
Scoreboards often. Design should make metrics readily available.

33. Dashboard Projects Led by IT
Easy to turn over to the IT department. The most critical factor is what we are
tracking and those decisions must be made by the executive team with
finance and accounting leading the effort.
Allowing Design to Get in the Way
Never build a chart or graphic that is simply on the Scoreboard because it is “cool”.
Every measurement must on the Scoreboard must have a purpose and be
aligned with the Company’s overall goals.
Viewing Scoreboard as Tools for Management Only
Most team members want to know they are contributing to the success of the
Company. Look for influencers.
Bad Data
This is the one area that has to be done right the first time. Regardless of what you
track, the data must be accurate!

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additional questions you may have and to continue this
conversation with your peers and the experts you heard
from today.
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