Strategy is not new for many business executives. Yet, many few companies can truly link their strategy to action. Organizations need to implement EPM based on a measurement system to empower people, process and technology to deliver what is strategized!

1. Strategy by Measurement
From Butterfly Effects to Success
Atif Abdul-Rahman

2. A single flap of a butterfly’s wing CAN lead to a
tornado elsewhere…

3. A SINGLE measure in a company can make or
break the business.

4. Although a bit exaggerated, many companies
have seen similar effects…

5. Strategy by Measurement

6. Strategy

7. Strategy
…is the plan to act

8. Strategy
…is the plan to act
Act…to achieve goals

9. Strategy
…is the plan to act
Act…to achieve goals
Goals…that define Purpose

10. Purpose

11. Purpose
“A group of people get together and
exist as an institution that we call a
company so they are able to
accomplish something collectively
that they could not accomplish
separately, they make a contribution
to society,
Do something which is of value.”
-David Packard

12. Purpose
“A group of people get together and
exist as an institution that we call a
company so they are able to
accomplish something collectively
that they could not accomplish
separately, they make a contribution
to society,
Do something which is of value.”
-David Packard
The Vision…

13. Purpose
“A group of people get together and
exist as an institution that we call a
company so they are able to
accomplish something collectively
that they could not accomplish
separately, they make a contribution
to society,
Do something which is of value.”
-David Packard
The Vision…
The Mission…

14. Purpose
“A group of people get together and
exist as an institution that we call a
company so they are able to
accomplish something collectively
that they could not accomplish
separately, they make a contribution
to society,
Do something which is of value.”
-David Packard
The Vision…
The Mission…
The Core Values…

15. Purpose
“A group of people get together and
exist as an institution that we call a
company so they are able to
accomplish something collectively
that they could not accomplish
separately, they make a contribution
to society,
Do something which is of value.”
-David Packard
The Vision…
The Mission…
The Core Values…
All define the Purpose

16. Am I meeting my Purpose?

17. Am I meeting my Purpose?
Am I Successful?

18. Success

19. Success
Success is the accomplishment of
goals and fulfillment of purpose. It
is shared with all stakeholders and
is aligned with mission, vision and
values.

20. Success
Success is the accomplishment of
goals and fulfillment of purpose. It
is shared with all stakeholders and
is aligned with mission, vision and
values.
Success is exceeding performance

21. But How to you define Performance?
How
Performance

22. But How to you define Performance?
How
Performance
But how do you define performance?

23. But How to you define Performance?
How
But how do you define performance?
How do you track it and then act upon it?
Performance

24. But How to you define Performance?
How
But how do you define performance?
How do you track it and then act upon it?
How do you know that the ‘SYSTEM’ is truly measuring performance?
Performance

25. • The SYSTEM measures, monitors and
manages performance.

26. • The SYSTEM measures, monitors and
manages performance.
• However, The SYSTEM may not be even
present in the first place!

27. Performance

28. Performance
Measure

29. Performance
MeasureWhat does it take to succeed?

30. Performance
MeasureWhat does it take to succeed?
Each business unit has to define its
performance based on its strategy,
enterprise infrastructure, corporate
culture and its environment.

31. Performance
MeasureWhat does it take to succeed?
Each business unit has to define its
performance based on its strategy,
enterprise infrastructure, corporate
culture and its environment.
By scoring performance, businesses
can truly gauge their standings.

32. Performance
MeasureWhat does it take to succeed?
Each business unit has to define its
performance based on its strategy,
enterprise infrastructure, corporate
culture and its environment.
By scoring performance, businesses
can truly gauge their standings.
What Gets Measured, Gets Done!

33. Performance
Monitor

34. Performance
MonitorSuccess demands agility, the ability to
shift directions, change course of
actions and evolve!

35. Performance
MonitorSuccess demands agility, the ability to
shift directions, change course of
actions and evolve!
This calls for timely monitoring of
performance.

36. Performance
MonitorSuccess demands agility, the ability to
shift directions, change course of
actions and evolve!
This calls for timely monitoring of
performance.
This gives right time for action, faster
decision making and brings the power
of control back to the people.

37. Performance
MonitorSuccess demands agility, the ability to
shift directions, change course of
actions and evolve!
This calls for timely monitoring of
performance.
This gives right time for action, faster
decision making and brings the power
of control back to the people.
Monitoring gives Business Insight

38. Performance
Act!

39. Performance
Act!“Change is the process by which the future
invades our lives “ Alvin Toffler

40. Performance
Act!“Change is the process by which the future
invades our lives “ Alvin Toffler
Act & take control of the environment before
the environment changes and takes control of
U

41. Performance
Act!“Change is the process by which the future
invades our lives “ Alvin Toffler
Act & take control of the environment before
the environment changes and takes control of
U
Develop a plan and execute it!

42. Performance
Act!
Strategy + Action = Performance
“Change is the process by which the future
invades our lives “ Alvin Toffler
Act & take control of the environment before
the environment changes and takes control of
U
Develop a plan and execute it!

43. “Knowing what to measure
and how to measure it makes
a complicated world much less
so. If you learn how to look at
the data in the right way you
can explain riddles that
otherwise might have seemed
impossible. Because there is
nothing like the sheer power
of numbers to scrub away
layers of confusion and
contradiction.”

44. That SYSTEM is EPM

45. EPM = CPM (corporate) = BPM (not process)
EPM

46. EPM = CPM (corporate) = BPM (not process)
EPM
Enterprise Performance Management

47. EPM = CPM (corporate) = BPM (not process)
EPM
Enterprise Performance Management
Performance has to be managed!

48. EPM = CPM (corporate) = BPM (not process)
EPM
It Is a management system which
glues strategy and execution
together.
Enterprise Performance Management
Performance has to be managed!

49. EPM Manifesto

50. PUT STRATEGY TO ACTION
EPM Manifesto

51. EPM BENEFITS

52. EPM BENEFITS
AGILITY

53. EPM BENEFITS
AGILITY
AGILITY CONSOLIDATION TIMELINESS

54. EPM BENEFITS
AGILITY
AGILITY CONSOLIDATION TIMELINESS
EPM provides the capability to consolidate financial & nonfinancial data and provide a
holistic view between business processes and strategy. This determines the required
changes quickly and with completeness.

55. EPM BENEFITS
CONTROL

56. EPM BENEFITS
CONTROL
ACCURACY CONTROL TOTAL QUALITY

57. EPM BENEFITS
CONTROL
ACCURACY CONTROL TOTAL QUALITY
EPM provides companies the mechanism through which they can practice a total quality
imitative by connecting their strategy with their control processes and with their operations
processes allowing them to establish compliances effectively.

58. EPM BENEFITS
TRANSPARENCY

59. EPM BENEFITS
TRANSPARENCY
AWARENESS COLLABORATION TRANSPARENCY

60. EPM BENEFITS
TRANSPARENCY
AWARENESS COLLABORATION TRANSPARENCY
EPM provides a platform where stakeholders can communicate their performance and can
drill down to any KPI from any view all the way to the data sources, processes and
applications. This gives the imitative for data quality, enterprise awareness and a highly
collaborative work environment

62. ENTERPRISE PERFORMANCE MANAGEMENT
Creating Connections & Synergies

63. PEOPLE
ENTERPRISE PERFORMANCE MANAGEMENT
Creating Connections & Synergies

64. PEOPLE PROCESSES
ENTERPRISE PERFORMANCE MANAGEMENT
Creating Connections & Synergies

65. PEOPLE
TECHNOLOGY
PROCESSES
ENTERPRISE PERFORMANCE MANAGEMENT
Creating Connections & Synergies

66. PEOPLE
TECHNOLOGY
PROCESSES
ENTERPRISE PERFORMANCE MANAGEMENT
Creating Connections & Synergies

67. PEOPLE
STRATEGY
TECHNOLOGY
PROCESSES
ENTERPRISE PERFORMANCE MANAGEMENT
Creating Connections & Synergies

68. PEOPLE
STRATEGY
TECHNOLOGY
PROCESSES
SHAREHOLDERS
ENTERPRISE PERFORMANCE MANAGEMENT
Creating Connections & Synergies

69. PEOPLE
STRATEGY
TECHNOLOGY
PROCESSES
SHAREHOLDERS CUSTOMERS
ENTERPRISE PERFORMANCE MANAGEMENT
Creating Connections & Synergies

70. PEOPLE
STRATEGY
TECHNOLOGY
PROCESSES
SHAREHOLDERS CUSTOMERS
ENTERPRISE PERFORMANCE MANAGEMENT
Creating Connections & Synergies

71. PEOPLE
STRATEGY
TECHNOLOGY
PROCESSES
SHAREHOLDERS CUSTOMERS
ENTERPRISE PERFORMANCE MANAGEMENT
Creating Connections & Synergies

72. EPM LIFECYCLE Performance Dashboards, Wayne W. Eckerson, Wiley

73. EPM LIFECYCLE Performance Dashboards, Wayne W. Eckerson, Wiley
1.STRATEGIZE

74. EPM LIFECYCLE Performance Dashboards, Wayne W. Eckerson, Wiley
2. PLAN

75. EPM LIFECYCLE Performance Dashboards, Wayne W. Eckerson, Wiley
3. MONITOR/ANALYZE

76. EPM LIFECYCLE Performance Dashboards, Wayne W. Eckerson, Wiley
4. ACT/ADJUST

77. EPM LIFECYCLE Performance Dashboards, Wayne W. Eckerson, Wiley
1.STRATEGIZE 2. PLAN
3. MONITOR/ANALYZE4. ACT/ADJUST

78. BUT WHAT DRIVES SUCCESS FOR THE EPM?
ORGANIZATION STRATEGY MAP VISION
INFRASTRUCTURE TARGETS TECHNOLOGY MISSION
BUDGETING PROCESS INCENTIVES PLANNING
EXECUTIVE BUY-IN FORECASTING KPI
CONSOLIDATION MODELS METRICS SCORECARDS
INITIATIVES ALERTS GOALS AGENTS ACTIONS
DECISIONS DASHBOARDS BI ANALYTICS DATA
MODEL REPORTS PEOPLE

79. BUT WHAT DRIVES SUCCESS FOR THE EPM?
ORGANIZATION STRATEGY MAP VISION
INFRASTRUCTURE TARGETS TECHNOLOGY MISSION
BUDGETING PROCESS INCENTIVES PLANNING
EXECUTIVE BUY-IN FORECASTING KPI
CONSOLIDATION MODELS METRICS SCORECARDS
INITIATIVES ALERTS GOALS AGENTS ACTIONS
DECISIONS DASHBOARDS BI ANALYTICS DATA
MODEL REPORTS PEOPLE

80. BUT WHAT DRIVES SUCCESS FOR THE EPM?
ORGANIZATION STRATEGY MAP VISION
INFRASTRUCTURE TARGETS TECHNOLOGY MISSION
BUDGETING PROCESS INCENTIVES PLANNING
EXECUTIVE BUY-IN FORECASTING KPI
CONSOLIDATION MODELS METRICS SCORECARDS
INITIATIVES ALERTS GOALS AGENTS ACTIONS
DECISIONS DASHBOARDS BI ANALYTICS DATA
MODEL REPORTS PEOPLE

81. BUT WHAT DRIVES SUCCESS FOR THE EPM?
ORGANIZATION STRATEGY MAP VISION
INFRASTRUCTURE TARGETS TECHNOLOGY MISSION
BUDGETING PROCESS INCENTIVES PLANNING
EXECUTIVE BUY-IN FORECASTING KPI
CONSOLIDATION MODELS METRICS SCORECARDS
INITIATIVES ALERTS GOALS AGENTS ACTIONS
DECISIONS DASHBOARDS BI ANALYTICS DATA
MODEL REPORTS PEOPLE

82. BUT WHAT DRIVES SUCCESS FOR THE EPM?
ORGANIZATION STRATEGY MAP VISION
INFRASTRUCTURE TARGETS TECHNOLOGY MISSION
BUDGETING PROCESS INCENTIVES PLANNING
EXECUTIVE BUY-IN FORECASTING KPI
CONSOLIDATION MODELS METRICS SCORECARDS
INITIATIVES ALERTS GOALS AGENTS ACTIONS
DECISIONS DASHBOARDS BI ANALYTICS DATA
MODEL REPORTS PEOPLE

83. BUT WHAT DRIVES SUCCESS FOR THE EPM?
ORGANIZATION STRATEGY MAP VISION
INFRASTRUCTURE TARGETS TECHNOLOGY MISSION
BUDGETING PROCESS INCENTIVES PLANNING
EXECUTIVE BUY-IN FORECASTING KPI
CONSOLIDATION MODELS METRICS SCORECARDS
INITIATIVES ALERTS GOALS AGENTS ACTIONS
DECISIONS DASHBOARDS BI ANALYTICS DATA
MODEL REPORTS PEOPLE

84. BUT WHAT DRIVES SUCCESS FOR THE EPM?
ORGANIZATION STRATEGY MAP VISION
INFRASTRUCTURE TARGETS TECHNOLOGY MISSION
BUDGETING PROCESS INCENTIVES PLANNING
EXECUTIVE BUY-IN FORECASTING KPI
CONSOLIDATION MODELS METRICS SCORECARDS
INITIATIVES ALERTS GOALS AGENTS ACTIONS
DECISIONS DASHBOARDS BI ANALYTICS DATA
MODEL REPORTS PEOPLE

85. BUT WHAT DRIVES SUCCESS FOR THE EPM?
ORGANIZATION STRATEGY MAP VISION
INFRASTRUCTURE TARGETS TECHNOLOGY MISSION
BUDGETING PROCESS INCENTIVES PLANNING
EXECUTIVE BUY-IN FORECASTING KPI
CONSOLIDATION MODELS METRICS SCORECARDS
INITIATIVES ALERTS GOALS AGENTS ACTIONS
DECISIONS DASHBOARDS BI ANALYTICS DATA
MODEL REPORTS PEOPLE

86. It’s a bit more complicated than that!

87. Lets take a car analogy

88. Analogy EPM
Car Analogy

89. Analogy EPM
Destination Vision
Car Analogy

90. Analogy EPM
Destination Vision
Map Strategy Map
Car Analogy

91. Analogy EPM
Destination Vision
Map Strategy Map
Routes Planning
Car Analogy

92. Analogy EPM
Destination Vision
Map Strategy Map
Routes Planning
Roads Infrastructure
Car Analogy

93. Analogy EPM
Destination Vision
Map Strategy Map
Routes Planning
Roads Infrastructure
Traffic Rules Compliance
Car Analogy

94. Analogy EPM
Speed Data Model
Car Analogy

95. Analogy EPM
Speed Data Model
Rear View Mirror Consolidation
Car Analogy

96. Analogy EPM
Speed Data Model
Rear View Mirror Consolidation
GPS Forecasting
Car Analogy

97. Analogy EPM
Speed Data Model
Rear View Mirror Consolidation
GPS Forecasting
Gears Processes
Car Analogy

98. Analogy EPM
Speed Data Model
Rear View Mirror Consolidation
GPS Forecasting
Gears Processes
Transmission Technology
Car Analogy

99. Analogy EPM
Speed Data Model
Rear View Mirror Consolidation
GPS Forecasting
Gears Processes
Transmission Technology
Dashboard Scorecards
Car Analogy

100. Analogy EPM
Car Analogy

101. Analogy EPM
Fuel Executive Buy-In
Car Analogy

102. Analogy EPM
Fuel Executive Buy-In
Steering KPIs
Car Analogy

103. Analogy EPM
Fuel Executive Buy-In
Steering KPIs
Motion Actions
Car Analogy

104. Analogy EPM
Fuel Executive Buy-In
Steering KPIs
Motion Actions
Passengers Shareholders
Car Analogy

105. Analogy EPM
Fuel Executive Buy-In
Steering KPIs
Motion Actions
Passengers Shareholders
Mileage Performance
Car Analogy

106. KPIs represent a set of measures focusing on those
aspects of performance that are the most crucial
for the continued success of an organization.
–David Parmenter, CEO, Waymark Solutions, Author “Key Performance Indicators”
KPI

107. The only difference between a metric and a KPI is
that a KPI embodies a strategic objective and
measures performance against a goal.
-TDWI Best Practices Report FQ09: Performance Management Strategies , How to
create and deploy effective metrics By Wayne W. Eckerson
KPI

109. THE CHOSEN ONE

110. THE CHOSEN ONE
K-P-I
KEY PERFORMANCE INDICATOR

111. “Show me a company that thinks it has key
performance indicators (KPIs) measured
monthly and quarterly, and I will show you
measures that do not create change,
alignment and growth and have never been
KPIs.”
- David Parmenter, CEO, Waymark Solutions, Author “Key Performance
Indicators”
KPI

112. Measures = Metrics
KPI

113. Measures = Metrics
All KPIs are metrics but not all metrics are KPIs
KPI

114. Measures = Metrics
All KPIs are metrics but not all metrics are KPIs
Metrics are the key to analyzing process
effectiveness and efficiency
KPI

115. Measures = Metrics
All KPIs are metrics but not all metrics are KPIs
Metrics are the key to analyzing process effectiveness
and efficiency
KPIs affect organizational behavior
KPI

116. Case Study
Single KPI
Source: “Key Performance Indicators”, David Parmenter*
* With slight enhancements
British Airways

117. Single KPI
Source: “Key Performance Indicators”, David Parmenter*
* With slight enhancements
British Airways

118. Single KPI
Source: “Key Performance Indicators”, David Parmenter*
* With slight enhancements
British Airways

119. Single KPI
Source: “Key Performance Indicators”, David Parmenter*
* With slight enhancements
British Airways

120. Single KPI
Source: “Key Performance Indicators”, David Parmenter*
* With slight enhancements
British Airways

121. Single KPI
Source: “Key Performance Indicators”, David Parmenter*
* With slight enhancements
British Airways

122. Single KPI
Source: “Key Performance Indicators”, David Parmenter*
* With slight enhancements
British Airways

123. Single KPI
Source: “Key Performance Indicators”, David Parmenter*
* With slight enhancements
British Airways

124. Single KPI
Source: “Key Performance Indicators”, David Parmenter*
* With slight enhancements
British Airways

125. Single KPI
Source: “Key Performance Indicators”, David Parmenter*
* With slight enhancements
British Airways

126. Ready to GO
A single KPI lead Lord King, x-chairman of
British Airways to improve overall corporate
performance.
This KPI became the single ambition of each
employee in her/his respective area of work
Single KPI
Source: “Key Performance Indicators”, David Parmenter*
* With slight enhancements
British Airways

127. How Many KPIs?
What is the best number of KPIs
for an organization?

128. • Kaplan/Norton – Around 12
• Parmenter – Around 10
• Eckerson – Around 5-7
How Many KPIs?

129. How Many Metrics?
There are no best practices, metrics can go
into hundreds and thousands depending on
the level of detail captured,
interdependencies, the diversity of business
domains captured in the systems etc.

130. Challenge
How does one select around 10 metrics (as
KPIs) from a list of hundreds or thousands?

131. Rule of Thumb guidance

132. Rule of Thumb guidance
Handpicked based on certain
established norms and trends.

133. Systematic Short listing

134. Systematic Short listing
KPIs are the output of a systematic
process of short listing based on the
organizational structure, strategy and
planning.

135. Intuition & Gut Feeling

136. Intuition & Gut Feeling
Handpicking KPIs based on
human intuition and gut feeling

137. Challenge
Handpicking KPIs usually do not last long!

138. Challenge
Handpicked KPIs may have bias of human judgment!

139. Challenge
Handpicked KPIs may not be selected exhaustively!

140. Challenge
Handpicking KPIs take longer time and cost!

141. Challenge
Handpicked KPIs may not represent all perspectives
of the business

142. Strong need of a KPI framework which contains
both structure and process to cater to this
challenge.
Challenge

143. The KPI framework needs to be interconnected
with the overall EPM picture
Challenge

144. Balanced Scorecard
• Most Popular
• Improvements - 3rd Generation BSCs
Performance Prism
• Vast coverage area
• Most Flexible and Customizable
Applied Information Economics
• Based on Decision Theory and Actuarial Sciences
• High value of worth in IT valuation
Some KPI Frameworks

145. Performance Prism
• Vast coverage area
• Most Flexible and Customizable
Strong emphasis on stakeholder success.
*This assessment is based on comments available on the public domain & not on any scientifically established premise.

146. Performance Prism
• Vast coverage area
• Most Flexible and Customizable
Focuses on Processes and Capabilities, not
just strategies and ambitions
*This assessment is based on comments available on the public domain & not on any scientifically established premise.

147. Performance Prism
• Vast coverage area
• Most Flexible and Customizable
Nevertheless, focuses on long term success
*This assessment is based on comments available on the public domain & not on any scientifically established premise.

148. Performance Prism
• Vast coverage area
• Most Flexible and Customizable
Measures based management is not explicit
but can be made to be so.
*This assessment is based on comments available on the public domain & not on any scientifically established premise.

149. Performance Prism
• Vast coverage area
• Most Flexible and Customizable
Process based improvement is the key!
*This assessment is based on comments available on the public domain & not on any scientifically established premise.

150. Performance Prism
• Vast coverage area
• Most Flexible and Customizable
Flexible in structure but development
process is less incremental and less iterative
compared to alternate approaches
*This assessment is based on comments available on the public domain & not on any scientifically established premise.

151. Performance Prism
• Vast coverage area
• Most Flexible and Customizable
Development cycles might take longer times
than alternatives due to vast coverage area.
*This assessment is based on comments available on the public domain & not on any scientifically established premise.

152. Applied Information Economics
• Based on Decision Theory and Actuarial Sciences
• High value of worth in IT valuation
Mostly used for Enterprise Architecture ROI
*This assessment is based on comments available on the public domain & not on any scientifically established premise.

153. Applied Information Economics
• Based on Decision Theory and Actuarial Sciences
• High value of worth in IT valuation
Rarely used as the sole framework for KPIs.
*This assessment is based on comments available on the public domain & not on any scientifically established premise.

154. Applied Information Economics
• Based on Decision Theory and Actuarial Sciences
• High value of worth in IT valuation
Works well for justifying quantification of
qualitative metrics
*This assessment is based on comments available on the public domain & not on any scientifically established premise.

155. Applied Information Economics
• Based on Decision Theory and Actuarial Sciences
• High value of worth in IT valuation
Falls short of becoming a comprehensive
EPM framework
*This assessment is based on comments available on the public domain & not on any scientifically established premise.

156. Balanced Scorecard
• Most Popular
• Improvements - 3rd Generation BSCs
A guideline, not a roadmap
*This assessment is based on comments available on the public domain & not on any scientifically established premise.

157. Balanced Scorecard
• Most Popular
• Improvements - 3rd Generation BSCs
A framework with flexible process approaches
*This assessment is based on comments available on the public domain & not on any scientifically established premise.

158. Balanced Scorecard
• Most Popular
• Improvements - 3rd Generation BSCs
Highly collaborative
*This assessment is based on comments available on the public domain & not on any scientifically established premise.
*This assessment is based on comments available on the public domain & not on any scientifically established premise.

159. Balanced Scorecard
• Most Popular
• Improvements - 3rd Generation BSCs
Highly visible and transparent
*This assessment is based on comments available on the public domain & not on any scientifically established premise.

160. Balanced Scorecard
• Most Popular
• Improvements - 3rd Generation BSCs
Most popular framework
*This assessment is based on comments available on the public domain & not on any scientifically established premise.

161. Balanced Scorecard
• Most Popular
• Improvements - 3rd Generation BSCs
Framework is scalable
(currently 3rd Generation Balanced Scorecarding
standard is available.)
*This assessment is based on comments available on the public domain & not on any scientifically established premise.

162. Balanced Scorecard
• Most Popular
• Improvements - 3rd Generation BSCs
Framework is customizable
(many case studies with significant changes on the
underlying structure and approach.)
*This assessment is based on comments available on the public domain & not on any scientifically established premise.

163. Balanced Scorecard
• Most Popular
• Improvements - 3rd Generation BSCs
Structure
•Perspectives
•Strategy Maps
Approach
•Iterative
•JAD

164. Balanced Scorecard
Structure

165. Balanced Scorecard
Structure
An organization of performance artifacts
(metrics, KPIs, Goals, Objectives & Strategy)

166. Balanced Scorecard
Structure
Structure develops context for each performance artifact

167. Balanced Scorecard
Structure
The context determines the purpose and usage for each
performance artifact.

168. Balanced Scorecard
Structure
It also allows for clearer communication

169. Balanced Scorecard
Structure
The contexts are developed through 'Perspectives'

170. Balanced Scorecard
Structure
'Perspectives' can be any and many

171. Balanced Scorecard
Structure
The original Balanced Scorecard approach had four…

172. Balanced Scorecard
Structure
Financial Perspective
Customer Perspective
Business Processes
Internal Learning and Growth

173. Balanced Scorecard
Structure
The recent 3rd Generation BSC has two more...

174. Balanced Scorecard
Structure
Employee Perspective
Shareholder Perspective

175. Balanced Scorecard
Structure
Companies can choose to develop their own perspectives

176. Balanced Scorecard
Structure
However, the essence of having a balance between
financial and nonfinancial perspective has to be maintained

177. Balanced Scorecard
Structure
Balancing means that all perspectives are taken under
consideration when determining performance

178. Balanced Scorecard
Structure
It also means that all performance artifacts chosen are
mutually consistent

179. Balanced Scorecard
Structure
...meaning one performance artifact does not conflict or
negate any other chosen artifact.

180. Balanced Scorecard
Structure
Perspectives are chained through cause and effect
relationships

181. Balanced Scorecard
Structure
Perspectives also allow for determining KPIs from
metrics

182. Balanced Scorecard
Structure
Perspectives are used as a tool for strategy
communication using strategy maps

183. Balanced Scorecard
Structure
The Strategy Map is the cornerstone of strategy
communication

184. Balanced Scorecard
Structure
It groups and links the organizational goals & objectives
into perspectives and determine a cause effect relationship

185. Balanced Scorecard
Structure
This allows all stakeholders to identify the fundamental
line of action for combined success

186. Balanced Scorecard
Structure
A strategy map helps people at all levels in the
organization to relate performance with their domain of
responsibility

187. Balanced Scorecard
Structure
Strategy maps enable a unidirectional approach towards
better performance.

188. Sample Strategy Map

189. • OK…
• There is the Strategy Map…

190. • OK…
• There is the Strategy Map…
• The KPIs…

191. • OK…
• There is the Strategy Map...
• The KPIs…
• The KPIs Framework…

192. • OK…
• There is the Strategy Map …
• The KPIs…
• The KPIs Framework…
• The People…

193. • OK…
• There is the Strategy Map…
• The KPIs…
• The KPIs Framework…
• The People…
• The Processes…

194. • OK…
• There is the Strategy Map…
• The KPIs…
• The KPIs Framework…
• The People…
• The Processes…
• The Technology…

195. • OK…
• There is the Strategy Map…
• The KPIs…
• The KPIs Framework…
• The People…
• The Processes…
• The Technology…
• The Governance…

196. • OK…
• There is the Strategy Map…
• The KPIs…
• The KPIs Framework…
• The People…
• The Processes…
• The Technology…
• The Governance…
• The Business…

197. • OK…
• There is the Strategy Map…
• The KPIs…
• The KPIs Framework…
• The People…
• The Processes…
• The Technology…
• The Governance…
• The Business…
Where Do I Start?

198. • The approach to establish an EPM framework
is subjective and depends on…

199. • The Company

200. • The Company
• The KPI Team

201. • The Company
• The KPI Team
• Market Conditions

202. • The Company
• The KPI Team
• Market Conditions
• Existing Maturity of EPM Know-How

203. And…

204. ORGANIZATION STRATEGY MAP VISION
INFRASTRUCTURE TARGETS TECHNOLOGY MISSION
BUDGETING PROCESS INCENTIVES PLANNING
EXECUTIVE BUY-IN FORECASTING KPI
CONSOLIDATION MODELS METRICS SCORECARDS
INITIATIVES ALERTS GOALS AGENTS ACTIONS
DECISIONS DASHBOARDS BI ANALYTICS DATA
MODEL REPORTS PEOPLE

205. ORGANIZATION STRATEGY MAP VISION
INFRASTRUCTURE TARGETS TECHNOLOGY MISSION
BUDGETING PROCESS INCENTIVES PLANNING
EXECUTIVE BUY-IN FORECASTING KPI
CONSOLIDATION MODELS METRICS SCORECARDS
INITIATIVES ALERTS GOALS AGENTS ACTIONS
DECISIONS DASHBOARDS BI ANALYTICS DATA
MODEL REPORTS PEOPLE

206. Myriad of Approaches

207. Myriad of Approaches
Choose which meets your EPM’s purpose

208. Approach
Balanced Scorecard

209. Approach
Balanced Scorecard
No matter what approach U take, follow these guidelines…

210. Approach
Balanced Scorecard
KPI Survey
Data
Survey
Process
Survey
Parallel Activities

211. Approach
Balanced Scorecard
KPI Survey
Data
Survey
Process
Survey
Parallel Activities
Each Powers the Other

212. Approach
Balanced Scorecard
KPI Survey
Data
Survey
Process
Survey
Parallel Activities
Each Powers the Other
Frequent Iterations

213. Approach
Balanced Scorecard
KPI Survey
Data
Survey
Process
Survey
Parallel Activities
Each Powers the Other
Frequent Iterations
To and Fro

214. Approach
Balanced Scorecard
KPI Survey
Data
Survey
Process
Survey
Parallel Activities
Each Powers the Other
Frequent Iterations
To and Fro
Till Convergence…

215. Approach
Balanced Scorecard
KPI Survey
Data
Survey
Process
Survey
Parallel Activities
Each Powers the Other
Frequent Iterations
To and Fro
Till Convergence…
i.e. Agreement & Feasibility

216. Approach
Balanced Scorecard
1st Iteration
2nd Iteration
3rd Iteration
KPI Development

217. Approach
Balanced Scorecard
1st Iteration
2nd Iteration
3rd IterationKPI Survey must be scoped into iterations
KPI Development

218. Approach
Balanced Scorecard
1st Iteration
2nd Iteration
3rd IterationKPI Survey must be scoped into iterations
KPIs must be worked in batches
KPI Development

219. Approach
Balanced Scorecard
1st Iteration
2nd Iteration
3rd IterationKPI Survey must be scoped into iterations
KPIs must be worked in batches
Starting with the most critical…and visible
KPI Development

220. Approach
Balanced Scorecard
1st Iteration
2nd Iteration
3rd IterationKPI Survey must be scoped into iterations
KPIs must be worked in batches
Starting with the most critical…and visible
Iterations...KPIs from focused to comprehensive

221. Approach
Balanced Scorecard
Program
Launch
Presentation

222. Approach
Balanced Scorecard
Program
Launch
Presentation
…Set the tone, direction and agenda

223. Approach
Balanced Scorecard
Focus Group
Meeting
Iteration

224. Approach
Balanced Scorecard
Focus Group
Meeting
…KPI team meet up to re-assess, re-align &
initiate actions
Iteration

225. Approach
Balanced Scorecard
Focus
Group
Meeting
Workshop:
Strategy
Maps
Iteration

226. Approach
Balanced Scorecard
Workshop:
KPI Library
Focus
Group
Meeting
Workshop:
Strategy
Maps
Iteration

227. Approach
Balanced Scorecard
Workshop:
KPI Library
Workshop:
Dashboard
Design
Focus
Group
Meeting
Workshop:
Strategy
Maps
Iteration

228. Approach
Balanced Scorecard
Workshop:
KPI Library
Workshop:
Dashboard
Design
Demo
Runs
Focus
Group
Meeting
Workshop:
Strategy
Maps
Iteration

229. Approach
Balanced Scorecard
Finalization
…time to implement & launch
Iteration

230. Approach
Balanced Scorecard
No matter how much you think you have finalized the KPI framework….

231. Approach
Balanced Scorecard
No matter how much you think you have finalized the KPI framework….
Be ready for changes and further iterations

232. Approach
Balanced Scorecard
No matter how much you think you have finalized the KPI framework….
Be ready for changes and further iterations
Be Agile!

233. References and Credits
• Photo Credits:
• adactio
• AmyLovesYah
• arjun01
• brian_hillegas
• drcorneilus
• easyflow
• exfordy
• faisal198846
• lepiaf
• Malias
• rhett maxwell
• References:
• The Balanced Scorecard: Translating Strategy into Action by Robert S. Kaplan and David P. Norton (Hardcover - Sep 1, 1996)
• Performance Dashboards: Measuring, Monitoring, and Managing Your Business by Wayne W. Eckerson (Hardcover - Oct 14, 2005)
• Key Performance Indicators: Developing, Implementing,and Using Winning KPIs by David Parmenter (Hardcover - Jan 16, 2007)
• Performance Dashboards and Analysis for Value Creation (Wiley Finance) by Jack Alexander (Hardcover - Nov 3, 2006)
• Balanced Scorecard Step-by-Step: Maximizing Performance and Maintaining Results - Hardcover (Sep 1, 2006) by Paul R. Niven
• The Performance Prism: The Scorecard for Measuring and Managing Business Success by Andrew Neely, Chris Adams, and Mike Kennerley
(Hardcover - Jun 27, 2002)
• How to Measure Anything: Finding the Value of "Intangibles" in Business by Douglas W. Hubbard (Hardcover - Aug 3, 2007)
• TDWI Best Practices Report: How to create and deploy effective metrics, Wayne Eckerson, Q1, 2009

234. Contact
Atif Abdul-Rahman,
atif.abdulrahman <at> gee mail
www.linkedin.com/in/atifabdulrahman
www.knowledgeworks.wordpress.com