Your Future Successdepends on Your Today’s

Enterprise Performance Management Strategies

Creating …

Enterprise’s Sustainable Performance

with

Core Executive Development Programs

(Value-Based Management)

and

Success Proved

Professional Consulting Services

(Enterprise Performance Management)

Enterprise Performance Management

“Enterprise Performance Management encompasses all the processes,

information, and systems used by managers to set strategy,

develop plans, monitor execution, forecast

performance and report results with view to achieving

sustainable success no matter how success maybe defined”

Process Controls• Governance principles and ethical values• Strategic and KPI boundaries• Risk management (senior management challenges planning hypotheses and risks)

• Actual results, KPI reports , trends, league tables , and rolling forecasts

Process inputs• Organization/BU vision • BU strategic direction and customer value proposition

• High – level, medium-term HO/BU goals and “baseline” expectations

• Small high-level KPI set

• Rewards policy

Performance Review Process • Review performance outlook and assess gap• Review and reset high-level goals• Review strategy and key value drivers• Agree, prioritize, and fund action plans• Coordinate plans across the business• Review KPI targets and controls

Process outputs• Agreed strategy• Agreed “execution” list of action plans • KPI set • Revised rolling forecasts (showing impact of action plans on profit and cash flow projections)

Process Resources• Support from senior managers and centers of expertise

• Tools (e.g., Balanced Scorecards and shareholder value models)

• Information on computers, market intelligence , and economic indicators

Enterprise Performance Management

Enterprise Performance Management

Process inputs

• Organization/BU vision

• BU strategic direction and customer

value proposition

• High – level, medium-term HO/BU

goals and “baseline” expectations

• Small high-level KPI set

• Rewards policy

Controls

Input ProcessOutput

Resources

Enterprise Performance Management

Controls

Input ProcessOutput

ResourcesPerformance Review Process

• Review performance outlook and

assess gap

• Review and reset high-level goals

• Review strategy and key value drivers

• Agree, prioritize, and fund action plans

• Coordinate plans across the business

• Review KPI targets and controls

Enterprise Performance Management

Controls

Input ProcessOutput

Resources

Process Controls

• Governance principles and ethical

values

• Strategic and KPI boundaries

• Risk management (senior management

challenges planning hypotheses and

risks)

• Actual results, KPI reports , trends, league

tables , and rolling forecasts

Enterprise Performance Management

Controls

Input ProcessOutput

Resources Process Resources

• Support from senior managers and

centers of expertise

• Tools (e.g., Balanced Scorecards and

shareholder value models)

• Information on computers, market

intelligence , and economic indicators

Enterprise Performance Management

Controls

Input ProcessOutput

Resources Process outputs

• Agreed strategy

• Agreed “execution” list of action plans

• KPI set

• Revised rolling forecasts (showing

impact of action plans on profit and

cash flow projections)

CFO’s Operational Excellence

Management Excellence

Human Capital

Executives Development

Best Practices

Effectiveness

Wealth Maximization

Efficiency

Team EffortsOperations:

Process/Info/SystemValue-Based Success = E2

SustainableSuccess

Stakeholders

Value-Based Management System

World ClassExperiences

Management Tools & Tech.

BusinessKnowledge

Competency-Based

Professional Managemen

t System

Accounting &Finance for Executives

Budgeting for Planning and Control

Enterprise Resources Planning

(ERP): BI & Business

Process Focus

Performance Management

System (PMS)

Risk Management

Strategic Thinking,

Planning and Management

Accounting Information System (AIS)

Corporate Finance-Liquidity

Management

Best Practices in Accounts

Receivable Management

Best Practices in Inventory

Management

Strategic Cost

Management

Capital Budgeting

and Investment

Advanced Financial Analysis

Operational Excellence

Management Excellence

Controller-ships

Leadership for Executive

Skill Types Needed

Relative Amount of Time That Managers

Spend on the Four Managerial Functions

Business Operations : Key Processes

Allocation of Funds Acquisition of Funds

Sales/Revenues (S)

Cost of sales/COGSGross Profit SG & A Operating ProfitInterest ExpensesProfit Before taxesIncome Taxes

Current Assets• Cash• Accounts Receivable• Inventories Non – Current Assets• LT Investments• Fixed AssetsTotal Assets(TTA)

Current Liabilities • Notes Payable/Bank Loans• Accounts Payable • AccrualsNon – Current LiabilitiesShareholders’ Equity (SE)• Paid – Up Capital• Retained EarningsTotal Liabilities & SE (TLE)

KPI: %NP/S X S/TTA X TTA/SE = %ROE

Sources of FundsInvestmentsOperations

Operating Activities Investing Activities Financing Activities

Net Profit (NP) Dividends

%ROA

Budgeted Income

Statement

Cash Budget

Sales of Services or Goods

EndingInventoryBudget

Work in Processand Finished

Goods

ProductionBudget

DirectMaterialsBudget

Selling and

Administrative

Budget

DirectLabor

Budget

Overhead

Budget

EndingInventoryBudget

Direct Materials

Budgeted Balance

SheetBudgeted Statement

of Cash Flows

Flexible Budgets

Improve performance evaluation.

May be prepared for any activity

level in the relevant range.

Show costs that should have been

incurred at the actual level of

activity, enabling “apples to apples”

cost comparisons.

Reveal variances related to

cost control.

Let’s look at CheeseCo.

Since cost variances are favorable, have

we done a good job controlling costs?

CheeseCo

Static Budgets and Performance Reports

Limitations of Financial Statement Analysis

Analysts should look beyond

the ratios.

Economic

factors

Industry

trends

Changes within

the company

Technological

changes

Consumer

tastes

The Enterprise Resource Planning (ERP) Model

Customer Orders

Master Production Schedule

Material Requirements Planning

Assembly and Purchase Plans

Aggregate Plan

Bill of Material

Inventory Files

Marketing Human Resources, Manufacturing, Financial, Plant Maintenance, and Capacity Planning

Cost Accounting

Distribution Planning

System-Wide planning

Supplier Relationship Management

System-Wide Database and Servers

Customer Relationship Management

Collaborative Planning and Integration with Suppliers, Customers

MRP

MRP II

ERP

Three Steps in Planning

Strategic Management Model

SWOT Analysis Diagram

Model of Grand Strategy Clusters

The BCG Growth-Share Matrix

EBI: Dashboards and Scorecards

Personalized dashboards and scorecards provide a powerful way to manage

andmonitor key metrics

EBI: Dashboards and Scorecards

Sales and marketing management can see an immediate improvement in

performance when using dashboards to monitor customer activity and behavior

EPM Consulting Services

o Objectives

o Scope of work

o Deliverables

o Project Team Structure

o Customer’ s Responsibilities

o Duration & Consulting Fee

o Benefits to ABC

o Appendix

• Consultants’ Profile

• Activity plan and scheduling

Enterprise Performance Management

HYPERION

STRATEGIC

PLATFORM

Financial

Consolidation

& Reporting

Business

Planning

Strategic

Planning

Performance

Measurement

BenchmarkingProfitability

Management

Activity-Based

Management

Enterprise

Performance

Management

• Improves operational

efficiency

• Optimizes the deployment

of enterprise resources

• Communicates strategic

goals

• Compares performance to

peers and best practice

companies

• Manages

profitability