Scorecard And Dashboard And Metrics ... Oh My! FMI PD Week 2012

Today’s presenters

Panelists:

Mario Malouin, Vice-President and Chief Financial Officer, Canadian Air

Transport Security Authority (CATSA)

Jean-Paul Lemieux, Director, Trade Commissioner Service (TCS) Planning and

Client Service Support Division, Department of Foreign Affairs and International

Trade Canada

Facilitators:

Cathy Green, Senior Managing Consultant, Strategy and Transformation, IBM

Canada

Liz Geiger, Associate Partner, Business Analytics and Optimization, Canadian

Public Sector and Health Market, IBM Canada

Governments are increasingly turning to performance information to deliver smarter outcomes What if …

Transportation and logistics

…could improve traffic flows and

reduce wait times and emissions?

Programs and services delivery …could predict current and future needs of citizens and design programs accordingly?

Program management …could gain critical insights to manage and maximize resources—people, capital and processes?

Central agencies and parliamentarians …could see how every tax dollar is spent?

Budgeting and finance …could have real-time insights into program budgets across jurisdictions to reduce spending responsibly?

Law enforcement …could have insights to beat

criminals to the scene?

Human resources …could attract and retain top-

performing employees by understanding drivers behind employee satisfaction?

Dashboard and scorecards can be valuable tools to integrate performance information in the quest to realize outcomes-based government

Today we will share two practical dashboard/scorecard examples

These tools are helping organizational management to:

– Measure key business functions

– Provide fact-based data for decision-making

– Motivate and direct behaviour

– Focus attention where it’s needed most

– Make performance more visible and enable accountability

– Improve execution and delivery of programs

Agenda

CATSA – Operating in a Volatile, Uncertain, Complex and Ambiguous (VUCA)

World (25 minutes)

DFAIT – Performance Measurement Initiatives in Support of DFAIT's

Commercial Program (25 minutes)

Questions and Panel Discussion (20 minutes)

Mario Malouin, CPA, CA, MA Vice-President and Chief Financial Officer

Canadian Air Transport Security Authority

Tuesday, November 27, 2012 Ottawa Convention Centre

Ottawa, Ontario

Scorecard and Dashboard

and Metrics…Oh My!

A Full Strategic Corporate Partnership is

a Critical Success Factor to the

Achievement of an Organization’s

Strategic Objectives in a Volatile,

Uncertain, Complex and Ambiguous

(VUCA) World.

Financial Management Institute of Canada

Professional Development Week

7

Table of Contents

Page

Current Environment 3

CATSA 14

Balance Scorecard 18

Boarding Pass Security System (BPSS) 21

Planning Budgeting and Forecasting Tool (PBFT) 28

Looking Forward 34

Success Factors 37

8

Current Environment

• Corporate scandals

• 9/11

• Both had a global influence

Interdependence

9

• A financial tsunami…that

impacted many countries!

• How?

Corporate Scandals

10

• In the immediate aftermath of 9/11, the aviation security system underwent its most significant change worldwide

• Literally overnight, it became an urgent global priority to enhance counter-terrorism capabilities and preparedness

• In Canada, the federal Budget of December 2001 contained a $2.2 billion package of new funding for civil aviation security improvements. The Budget also announced the creation of the Canadian Air Transport Security Authority (CATSA)

9/11

11

In times of crisis

or instability,

events can

transcend

borders and

spread globally

12

Interdependence

• Strong interdependence creates a

VUCA world

• In a VUCA world, top leaders are

faced with dilemmas that have no

solutions and yet they are still

required to make sound decisions

• Traditional leadership skills aren’t

enough

13

VUCA

Since we live in a VUCA world

in which financial resources are

more and more limited, CFOs

and finance function must

adapt. But how?

Adaptation

14

"The task of leadership is

to create an alignment of

strengths, making our

weaknesses irrelevant." - Peter Drucker

15

Alignment

• To guide a company, CFOs should be in tune with the markets, and

able to give early warning signals to the organization, and help the

organization think through how to adjust quickly enough to market

signals

• The Finance function should be a visionary in the business and not

just a storyteller

Alignment

16

"Growing complexity, talent

scarcity, and technology deficits

are most likely to put the finance

function’s effectiveness at risk."

CFO Research Services and

KPMG 2012 Global CFOs on

the Art of Constructive Change

17

18

19

CATSA

20

Secure critical elements of the air

transportation system:

• Pre-Board Screening (PBS)

• Hold-Baggage Screening

(HBS)

• Non-Passenger

Screening (NPS)

• Restricted Area Identity Card

(RAIC)

CATSA Background

21

• 89 airports

• More than 51 million

passengers screened

• 62 million pieces of

baggage screened

• More than 5,400 screening

officers

• 106 checkpoints

• 314 screening lines

• 4 regions

CATSA at a Glance

22

• Crown corporation

• Report to Parliament through

the Minister of Transport

• Governed by a Board of

Directors

• Regulated by Transport

Canada

• Third-party screening

contractor

CATSA Governance

23

Balance Scorecard

A single

version of

truth

Balance Scorecard

Source: Transforming Finance, TDWI Best Practices Report

24

25

Balance Scorecard

• CATSA tracks high

level strategic

performance

indicators in a

scorecard to help

align the corporate

mission and visions

with day-to-day

activities

• How can we do it?

26

Boarding Pass Security System (BPSS)

27

• Automated boarding pass

verification

• Class 1 airports

• Developing expansion

plans

BPSS

28

• Enhanced:

• Validation of boarding

passes

• Security resolution

• Performance monitoring

BPSS Benefits

29

• Paper boarding passes

• Electronic boarding passes

Boarding Pass Verification

30

Security Incident Resolution Process

• CATSA Security Operations Centre (SOC) is notified of an incident

along with information about the passenger involved

• SOC uses BPSS to search for passenger

31

Security Incident Resolution using BPSS

• BPSS tells SOC exactly when and where the passenger was

screened, as well as the flight information

• By aligning the time stamps, the SOC reviews Closed Caption

Television (CCTV) footage of the passenger and incident

• Using flight information from BPSS and physical description from

CCTV, the passenger is located

• Incident is contained / resolved

32

• Vital to daily operations

• Improves customer service

• Wait-time information

• Data sharing initiative

• Planning, Budgeting and

Forecasting our cost…

BPSS Performance Management

33

Planning Budgeting and Forecasting Tool (PBFT)

• Transform enterprise planning budgeting and

forecasting tool (PBFT):

• Implement an end-to-end business solution

(provide integration)

• Minimize use of Excel spreadsheets (improve

data reliability)

• Implement standard templates/consolidations

• Enable financial/non-financial modeling and

what-if analysis

• Empower end users (Responsibility Managers)

• Reduce reliance on Financial Analysts

• Realize productivity gains in Financial Planning

PBFT

34 34

Before – Lack of Integration

35

• Source data not linked

to costing models

• No data integration

• Data manipulation

required prior to loading

source data into costing

models

• Costing models are not

linked to TM1

• Inability to report quickly

on model inputs that

generate an expense

• Inability to quickly

update costing model

data and assess

impacts.

• Inability to deploy

common drivers and

assumptions across all

costing models

After – Integrated Data

36

Operations HRIS Equipment

$ Actuals & Forecast

Data Warehouse

Screening Capital Maintenance HR

GP

Other Expenses

Assumptions

Consolidated cube Internal/external reports

Reports on model inputs & details

->TM1 Cubes

TM1 web input

Operational data

$ Forecast

• Source data is linked to

costing models

• Integrated data

• Source data is loaded

directly from the data

warehouse to the

costing models

• Costing models are

linked to TM1

• Ability to report quickly

on model inputs that

generate an expense

• Ability to quickly update

costing model data and

assess impacts

• Ability to deploy

common drivers and

assumptions across all

costing models

Planning and Budgeting Screening Hours

37

Converting Screening Hours to Budget Dollars

38

39

Looking Forward

40

• Predictive Analytics:

• To leverage organizational

business knowledge by applying

sophisticated analysis techniques

to enterprise data. The resulting

insights lead to actions that

demonstrably change how

resources are assigned.

• Financial Reporting Tool:

• To automate the creation of

statutory and regulatory reports,

providing a collaborative

environment in the creation of

financial data, narrative analysis

and XBRL tagging.

Looking Forward

Combining predictive analytics models with

organizational business knowledge provide

insight into critical issues such as outcome

improvement.

Through measuring uncertainty surrounding

these issues, predictive analytics enables

proactive risk management, refining key

decision making processes through

controlled, iterative testing of potential

actions and their likely intended-and

unintended-consequences. These findings

and their corresponding business rules can

then be deployed within front-line

operational systems to identify measurable

cost savings, repeatable process

improvements, and sustainable competitive

advantages.

41

Looking Forward

42

Success Factors

43

Among the top 10 objectives for the

Finance function over the next 2

years….― hire qualified people and

retain them‖ and ―increase Finance

knowledge‖ (Corporate Finance

Function Survey: The Canadian

Perspective by KPMG)

Passion Capital:

• Passion

• Experience

• Knowledge

Success Factors

45

Performance Measurement Initiatives in Support of

DFAIT's Commercial Program

Department of Foreign Affairs and International Trade

TCS Planning and Client Serivce Division

FMI – November 27, 2012

46

Presentation Outline

• The Trade Commissioner Service’s Approach to Planning and Performance Measurement

• What led us to using Balanced Scorecards and Business Intelligence

• The International Business Development Dashboard

• Challenges, Achievements and Lessons Learned

47

What is the Canadian Trade Commissioner Service?

• Part of the Department of Foreign Affairs and International Trade Canada.

• The mandate of the Trade Commissioner Service is to increase Canadian Prosperity through International Trade.

• Canadian Trade Commissioner Service helps Canadian companies succeed globally with services provided from over 150 points of service around the world.

• Trade Commissioners provide a variety of services to Canadian clients:

• Preparation for International Markets • Qualified Contacts • Market Potential Assessments • Problem Solving

48

The TCS Approach to Planning and Performance Measurement

1. Rigorous Annual Commercial Economic Program Planning

2. Use Performance Measurement Tools

3. Internal governance

4. Ensure Accountability Requirements Met

49

TCS Operational Planning and Reporting Life Cycle

50

What led us to using Balanced Scorecards and BI?

• A common framework generates consistency in reporting world-wide.

• Improves accuracy and accountability of reporting by the Trade Commissioner Service.

• Strengthens the use of resources to generate outcomes, using readily available data and statistics.

51

Why use the BI approach?

• Centralizes information from multiple corporate systems

• Transparent system that increases

accountability in managers

• Ease of data manipulation for managers overseas, enhancing reporting capabilities

52

What is the International Business Development Dashboard?

• Is a key component of overall efforts to track outputs/outcomes and improve management practices

• Provides information on indicators that are key to the organization’s and commercial program success

• Influences managers to concentrate on areas that are mission critical and provides with information to guide decision making

• Presents timely data: data is updated every weekend

53

How Data is Brought Together

IBD Scorecards

Trade Cube

Financial Data

HR Data

TRIO/CRM

Cdn Commercial

Interests List

Virtual Trade

Commissioner

TCS Client Survey

54

Analytical Capabilities

Management Questions Dashboard Metrics

How many clients are we serving? # of new clients to post, # of new clients to region, # of

new clients to the TCS

Where do our clients want to go? Client Preference vs. CCIL Rankings

What level of services are being delivered? Number of services delivered, outcalls performed and

leads disseminated by mission

Are clients satisfied with the services/support that they are

receiving?

Client Satisfaction metric and report

How does a mission compare to its peer group? Number of outcalls, number of leads by mission vs.

others in same tier

How are we working now compared to previous years? Graphs showing trends for new clients, outcalls and

leads

Is the Integrative Trade Model being implemented? Services delivered by business line, outcalls delivered

by business line

55

Scorecards

56

Reports in Scorecard

Senior Management Use

•Report quarterly to the International Commerce

Coordination Board

•Meeting briefing requirements

•Regularly provide audit/evaluation teams with

accurate data and analysis

•Provision of ad-hoc analysis to support

informed decision making

57

58

Key Challenges

• Definitions/guidelines

• Consistency of reporting

• Training Users

59

What the Dashboard Has Achieved

• Highlighted accountability

• Clarified the importance of data recording

• Improved reporting and quality of data in corporate systems

• Provides ready access to relevant data

Lessons Learned

• Ensure effective consultations

• Work with BI group to align

corporate systems

• Transparency helps to improve

data quality and compliance

• Learn from others and share best

practices with other departments

60

Senior managers play a pivotal role in creating an appetite for performance information:

information breeds interest in more information

Future of BI at DFAIT

• BIAC – Business Intelligence Advisory Committee

– DFAIT has put in place a governance committee for BI related initiatives.

Currently working on a project to identify the Subject Matter Experts

(SME's) to define KPI's for the creation of a scorecard and dashboard at

the ADM level to be used by the DM.

61

Questions

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