microsoft business intelligence performance management dan bulos_2011

Performance ManagementPerformance ManagementPerformance Management: Performance Management: More Than Just Balanced Scorecards

Speaker: Dan BulosPresident Symmetry CorporationPresident, Symmetry Corporation

Bay Area Microsoft BI User Group y pMarch 2011

Mark Ginnebaugh, User Group LeaderMark Ginnebaugh, User Group Leader [email protected]

©2011 Symmetry Corporation http://www.symcorp.com

Performance Management A Prescriptive Design

Dan Bulos – [email protected]

mailto:[email protected]

©2011 Symmetry Corporation

Performance Management (PM)

http://www.symcorp.com

The methodologies, metrics, processes and systems used to monitor and manage an

enterprise's business performance

Function Measures HR People

IT Applications

Finance Cost Center

Sales Representatives

Marketing Products

Manufacturing Process Line

A single measurement that ranks members along a scale that

encompasses many metrics


End-To-End Business Logic

http://www.symcorp.com Data

Report Cards

Measures

KPIs

Score

Metrics

Tolerances

Budget Plan

Forecast

Benchmarks

Perspectives

Initiatives

Organize

Catalog Audited Accurate Approved


Prescriptive Design


Data Warehouse & Analytics Design from the data up

Performance Management Design from the usage down

Crafted Manufactured

Consistency Counts

PM – A different design

Many Facts Different Shapes

Diverse Units Disparate Granularity


PM – Lots of Moving Parts


Availability Window

SLA Minutes Day

Critical Minutes Application Incidents

Incident Day

Incident Count Application

Impacted Users Incident

IsDown

InSLA/InCritical

Financials

Amount Month

Scenario

Account

Server

SLA Target

Uptime % Month

Impaired % Application

Tolerance

Target Month

Tier 1 KPI

Tier 2 CIO

Tier 3 Change Requests

CR # Day

Emergency CRs Application

Unsuccessful CRs Unit


PM – Taming the Chaos


Metric

KPI Actuals Target Var Var % Tier X Score Grade Weight Last Yr Chg Chg %

Availability

Up Time %

In SLA %

Change Mgt

#CRs

Sucessful CRs

Homogenize the Structure


Process Define Performance Mgt Objects ▪ KPI & Metric Dimensions/PerfMgt Measure Create Calculated Measures on Base Data ▪ Up Time = 1 – (Incident Time / SLA Time) Push Down Data (if needed) ▪ Monthly Targets from Yearly Targets Twist Data to PerfMgt Measure ▪ Orient the Information for Reporting Calculate Metrics ▪ Variance & Change Score & Grade



Definitions


Definitions - MMK Measures ▪ Operating data

▫ Atomic or Aggregated

Metrics ▪ Measures compared

▫ vs. Budget/Last Year/Sales/Average

Key Performance Indicators (KPI) ▪ Measures/Metrics scored

▫ What is good, bad, or acceptable ▫ Business Process/Responsibility



Definitions – KPI Groupings

Objectives ▪ Defined Strategic Goals

● Improve Cust Sat

Initiatives ▪ Time specific projects

● Refurbish plant

Perspectives ▪ High-Level focus areas

● Operations, Sales…


Collections of KPIs and subordinate

Objectives & Initiatives

Scored as a

function of the KPI scores


Definitions - Scorecard


The Balanced Scorecard is a strategic planning and management methodology that is used to align business activities to the vision and strategy of the organization, improve internal and external communications and monitor organization performance against strategic goals

1: a body of methods, rules, and postulates employed by a discipline 2: a particular procedure or set of procedures

A Performance Report Card is a set of Key Performance Indicators (KPIs) that are managed and scored (graded) through a responsibility based business process and organized into grouping that show influences to each other and to strategic or operational objectives or initiatives

Scorecards are generally deployed as a

part of a performance dashboard

Scorecards

http://www.jiscinfonet.ac.uk/tools/scorecard


The 3Ts of Performance

Budgets & Goals Variance % Variance Better/Worse Any to Any

Over Time YTD, Moving Totals Period over Period Last Year Growth %

Within a Group % of Total Rank Average Top & Bottom

Target Trend Typical


Reporting Spectrum

D i s c o v e r y

P r o d u c t i o n

Parameter Driven

Advanced Visualization

Highly Formatted

Tables, Crosstabs, Charts, Graphs

Managed Analysis Dashboards

Ease of Development

& Usage Paramount

Customization & Distribution Alternatives

Depth & Quickness

of Analytics

Guided Analytics

Programmer Developed

Line Developed

Staff Developed

Interactive Navigation


Design


Smart KPIs


Specific – Clear on what is being measured

Measurable – Accurate and consistent

Actionable– Influence to alter the outcome

Relevant– Significance and leverage

Timely – Appropriate intervals


KPI Characteristics Every KPI has: ▪ Class – discrete, continuous, interval ▪ Type – financial, volume, rate, % ▪ Polarity – direction of goodness ▪ Time Frame – period of measure ▪ Owner – person responsible Might Have: ▪ Components

● Net Sales = Gross, Returns, Breakage ▪ Influences

● Revenue :: Price, Interest Rates



KPI Classes


Discrete - Sum or count or a time period Monthly Sales, Quarterly Hires, Daily Traffic

Continuous – Value at a sample time period Cash, Inventory, Employees (Balance in Finance)

Interval – Events - begin/end time/date Response Time, Order Fulfillment, Down Time


KPI Types


Financial Currency can be important

Volume Unit of measure is always important

Rates & Percentages Rate has a unit of measure (price) Percent is a portion of the whole (gm%)


KPI Polarity


Increasing is BETTER Sales

Variation is BAD Inventory

Decreasing is BETTER Cost


PM Objects Dimensions ▪ KPI

● Name – Key Attribute (hidden) ● KPI – Parent Attribute ● Class – Member Property (hidden) ● Type - Member Property (hidden) ● Polarity – Member Property (hidden)

▪ Metric ● Flat Dimension (IsAggregatable = False)

Measure ▪ PerfMgt – A calculated Measure



Twist Base Measures Scope([Measures].[PerfMgt]); Scope([Metrics].[Actuals]); [KPI].[UpTime] = ( [Measures].[UpTime], Root([KPI]) ); End Scope; [Metric].[Tier 1] = ( [Measures].[UpTime], Root([KPI]) ); End Scope;



Calculate Metrics

[Metric].[Variance] = Case When [KPI].CurrentMember.Properties("Polarity") = "Positive" Then [KPI].[Actuals] - [KPI].[Target] Else [KPI].[Target] - [KPI].[Actuals] End;



Scoring


Why Score ?


KPIs of different classes or types or units of measure

can not natively be either Compared or Aggregated

Sales went up by $1mm GM% went up by 1.5%

Which is good/better?

The efficiency initiative has Sales per Employee &

# of Complaints What is the total?

Scoring levels KPIs to a common scale Try to score based on a percentage – Variance % not Variance


Score by Scale


Method used by PerformancePoint Services

Scoring Directly by

Variance % is the most Common


Score to Bucket


Scope (KPI Set); [Metric].[Score] = Case When [Metric].[Var%] >= [Metric].[Target] Then 5 -- A When [Metric].[Var%] >= [Metric].[Target] + [Metric].[Tier 1] Then 4 -- B When [Metric].[Var%] >= [Metric].[Target] + [Metric].[Tier 2] Then 3 -- C When [Metric].[Var%] >= [Metric].[Target] + [Metric].[Tier 3] Then 2 -- D Else 1 -- F End; End Scope;

Pick a scale [1, 100], [-1, 1], [1-5] Create a bucketing strategy # of Buckets is # of Tiers + 2 Uneven buckets influence a bubble up strategy Forces outliers into scale – reduces outlier impact

Careful: Zero in a scale can throw off weighting


Aggregate Scoring Strategy


Average Bubble Up

What is the overall performance?

Identify hidden problem areas?

Increase weight of poor performers

Score based on performance count

Weight based on influence factors

Score based on constituent scores

http://www.geocities.com/politicalcalculations/images/2005-09-27-avg-credit-score-by-age.gif


Weight & Aggregate Scores


Scope (Descendants([KPI].DefaultMember, , LEAVES)); [Metric].[Weighted Score] = [Metric].[Score] * [Metric].[KPI Weight]; End Scope; Scope ([KPI].Members - Descendants([KPI].DefaultMember, , LEAVES)); [Metric].[Weighted Score] = Sum( [KPI].CurrentMember.Children, [Metric].[Weighted Score] ); [Metric].[KPI Weight] = Sum( [KPI].CurrentMember.Children, [Metric].[KPI Weighted] ); [Metric].[Score] = [Metric].[Weighted Score] / [Metric].[KPI Weight]; End Scope;


Grade KPIs and Objectives


[Metric].[Grade] = Case When [Metric].[Score] > 4.5 Then ‘A’ When [Metric].[Score] > 3.5 Then ‘B’ When [Metric].[Score] > 2.5 Then ‘C’ When [Metric].[Score] > 1.5 Then ‘D’ Else ‘F’ End;


Scoring Along an App Dimension


To Aggregate and Score

Or Score and Aggregate

Score and Aggregate

Embodies a strategy of even performance

Example – Sales Reps

Aggregate and Score One Rep doing very well can

cover for many under performing reps

Score and Aggregate All Reps must do well for the aggregate to perform well


Radar Chart


Good at showing performance of

component KPIs


Symmetry – Who We Are


Experience

Expertise

Engineering

Founded in 1986 Qualified Consultants min 15 years BI, 10 years MS BI

BI is our Specialty Business Solutions, not Technology Consulting, not Contracting

ADAPTTM Design Methodology PROOF Application Framework Fastest & Best POC/Demo/Prototypes


Symmetry & Microsoft


“Technology” “Trusted”

“Teach”

Premier BI

Partner

“Teamwork”

Licensed technology to SQL Server group

Basis of SSABI

Embedded with PerformancePoint

dev team for 2 years

Frequent speaking engagements at MS conferences


Questions?

To learn more or inquire about speaking opportunities, please contact:

Mark Ginnebaugh, User Group [email protected]