Many organizations are far from where they want and need to be with improving performance, and they apply intuition, rather than hard data, when making decisions. Enterprise performance management (EPM) is now viewed as the seamless integration of managerial methods such as strategy execution with a strategy map and its companion balanced scorecard (KPIs) and operational dashboards (PIs); enterprise risk management (ERM); capacity-sensitive driver-based budgets and rolling financial forecasts; product / service / channel / customer profitability analysis (using activity-based costing [ABC] principles); customer lifetime value (CLV); lean and Six Sigma quality management for operational improvement; and resource capacity planning. Each method should be embedded with business analytics of all flavors, such as correlation, segmentation, regression, and clustering analysis; and especially predictive analytics as a bridge to prescriptive analytics to yield the best (ideally optimal) decisions. This presentation will describe how to complete the full vision of analytics-based enterprise performance management.
WHY SHOULD YOU ATTEND?
- The fear, uncertainty, and doubt (FUD) concerns Many organizations struggle answering these types of questions:
- How well do our managers and employees understand our executive team’s strategy?
- Are we measuring the right metrics?
- If we are measuring key performance indicators (KPIs), are they “balanced” between financial outcomes and the non-financial measures related to customer loyalty, process improvement, employee learning & growth, and innovation?
- Are we measuring too many strategic KPIs where many are arguably operational performance indicators (PIs)?
- Are our product and service-line costs accurate? Or are our accountants mis-allocating indirect expenses (i.e., overhead support)?
- Do we measure non-product channel and customer costs to report profit or loss by each customer?
- How effective is our annual budgeting process? Does its benefit exceed the costs to produce it?
- Is the budget out of date within a few months after it is published?
- Do experienced managers “pad” their department’s budgets?
- Is consolidating cost center budgets bottom-up cumbersome?
- Do we understand incremental / marginal expense analysis classifying the behaviour of our resource capacity expenses as sunk, fixed, step-fixed, or variable based on the planning time horizon?
- Are many of our decisions based on intuition or experience rather than on fact-based data?
- How much competency does our organization have with analytics?
- How much resistance to change does our organization have that is slowing our adoption rate of progressive managerial methods?
AREA COVERED
- What the pressures are compelling organizations to adopt EPM (eg, greater volatility, uncertainty, insights for problem solving)
- Why business analytics, with emphasis on predictive analytics and pro-active decision making, is becoming a competitive advantage differentiator and an enabler for trade-off analysis
- How strategy maps and their companion balanced scorecards communicate strategic objectives with target-setting to help cross-functional employee teams align their behavior to the strategy and better collaborate
- How all levels of management can quickly see and assess how they are doing on what is important using key performance indicators (KPIs)
- How activity-based cost management (ABC/M) provides not only accurately traced calculated costs (relative to arbitrary broad-averaged cost allocations), but more importantly provides cost transparency back to the work processes and consumed resources, and to what drivers cause work activities
- Why measures of channel and customer profitability and customer value now supersede profit and service-line measures - and shifting from product to customer-focused organizations including future potential value - customer lifetime value
- How managerial accounting enables internal chargeback invoices of shared services (eg, information technology services)
- How analytics-based enterprise performance management solves the problem of poor budgeting
- How three types of project-related costs are included in the budget: capital, risk mitigation, and strategy execution projects
- How improvements to the managerial accounting system not only provides accuracy and visibility to costs, but they enable predicting required future resource capacity expense requirements
- The increasing need for probabilistic financial projections
- The increasing need for "what if scenarios"
- How effective planning increases productivity from processes and reduces costs
- How to overcome implementation barriers such as behavioral resistance to change and fear of being held accountable
LEARNING OBJECTIVES
- How to view enterprise and corporate performance management (EPM/CPM) as the seamless integration of managerial methods rather than as a process.
- Understand how business analytics is an advance over business intelligence and where Big Data fits in.
- How to identify and differentiate strategic KPIs in a balanced scorecard and operational performance indicators (PIs) in dashboards.
- How to properly calculate product, service-line, channel, and customer profitability for analysis, insights and actions.
- How to perform “predictive accounting” for driver-based budgets / rolling financial forecasts, what-if analysis, and outsourcing decisions
- How to overcome implementation barriers such as behavioral resistance to change and fear of being held accountable.
WHO WILL BENEFIT?
- CFO
- Financial Controller
- Accounting Staff
- CIO and Information Technology Staff
- Strategic and Business Planning
- Marketing and Sales Managers
- Budget Managers
- Risk Managers
- The fear, uncertainty, and doubt (FUD) concerns Many organizations struggle answering these types of questions:
- How well do our managers and employees understand our executive team’s strategy?
- Are we measuring the right metrics?
- If we are measuring key performance indicators (KPIs), are they “balanced” between financial outcomes and the non-financial measures related to customer loyalty, process improvement, employee learning & growth, and innovation?
- Are we measuring too many strategic KPIs where many are arguably operational performance indicators (PIs)?
- Are our product and service-line costs accurate? Or are our accountants mis-allocating indirect expenses (i.e., overhead support)?
- Do we measure non-product channel and customer costs to report profit or loss by each customer?
- How effective is our annual budgeting process? Does its benefit exceed the costs to produce it?
- Is the budget out of date within a few months after it is published?
- Do experienced managers “pad” their department’s budgets?
- Is consolidating cost center budgets bottom-up cumbersome?
- Do we understand incremental / marginal expense analysis classifying the behaviour of our resource capacity expenses as sunk, fixed, step-fixed, or variable based on the planning time horizon?
- Are many of our decisions based on intuition or experience rather than on fact-based data?
- How much competency does our organization have with analytics?
- How much resistance to change does our organization have that is slowing our adoption rate of progressive managerial methods?
- What the pressures are compelling organizations to adopt EPM (eg, greater volatility, uncertainty, insights for problem solving)
- Why business analytics, with emphasis on predictive analytics and pro-active decision making, is becoming a competitive advantage differentiator and an enabler for trade-off analysis
- How strategy maps and their companion balanced scorecards communicate strategic objectives with target-setting to help cross-functional employee teams align their behavior to the strategy and better collaborate
- How all levels of management can quickly see and assess how they are doing on what is important using key performance indicators (KPIs)
- How activity-based cost management (ABC/M) provides not only accurately traced calculated costs (relative to arbitrary broad-averaged cost allocations), but more importantly provides cost transparency back to the work processes and consumed resources, and to what drivers cause work activities
- Why measures of channel and customer profitability and customer value now supersede profit and service-line measures - and shifting from product to customer-focused organizations including future potential value - customer lifetime value
- How managerial accounting enables internal chargeback invoices of shared services (eg, information technology services)
- How analytics-based enterprise performance management solves the problem of poor budgeting
- How three types of project-related costs are included in the budget: capital, risk mitigation, and strategy execution projects
- How improvements to the managerial accounting system not only provides accuracy and visibility to costs, but they enable predicting required future resource capacity expense requirements
- The increasing need for probabilistic financial projections
- The increasing need for "what if scenarios"
- How effective planning increases productivity from processes and reduces costs
- How to overcome implementation barriers such as behavioral resistance to change and fear of being held accountable
- How to view enterprise and corporate performance management (EPM/CPM) as the seamless integration of managerial methods rather than as a process.
- Understand how business analytics is an advance over business intelligence and where Big Data fits in.
- How to identify and differentiate strategic KPIs in a balanced scorecard and operational performance indicators (PIs) in dashboards.
- How to properly calculate product, service-line, channel, and customer profitability for analysis, insights and actions.
- How to perform “predictive accounting” for driver-based budgets / rolling financial forecasts, what-if analysis, and outsourcing decisions
- How to overcome implementation barriers such as behavioral resistance to change and fear of being held accountable.
- CFO
- Financial Controller
- Accounting Staff
- CIO and Information Technology Staff
- Strategic and Business Planning
- Marketing and Sales Managers
- Budget Managers
- Risk Managers
Speaker Profile
Gary Cokins is an internationally recognized expert, speaker, and author in advanced cost management and performance improvement systems. He is the founder of Analytics-Based Performance Management, an advisory firm located in Cary, North Carolina at www.garycokins.com . Gary received a BS degree with honors in Industrial Engineering/Operations Research from Cornell University in 1971. He received his MBA from Northwestern University’s Kellogg School of Management in 1974.Gary began his career as a strategic planner with FMC’s Link-Belt Division and then served as Financial Controller and Operations Manager. In 1981 Gary began his management consulting career first with Deloitte consulting, and …
Upcoming Webinars
21 CFR Part 11 - Compliance for Electronic Records and Sign…
Weathering the Storm: Navigating Resource Constrained Waters
FDA Technology Modernization Action Plan (TMAP) and Impact …
How to Survive an Emotionally Toxic Workplace
2-Hour Virtual Seminar on The Complexity and Interplay Amon…
SOPs - How to Write Them to Satisfy those Inspectors
Excel Power Skills: Master Functions, Formulas, and Macros …
How to Give Corrective Feedback: The CARE Model - Eliminati…
2-Hour Virtual Seminar on the 6 Most Common Problems in FDA…
Understanding the Artificial Intelligence Landscape
Essential Job Functions According to the American with Disa…
Unlock Employee Loyalty: Stay Interviews Will Keep Them Eng…
FDA Audit Best Practices - Do's and Don'ts
Managing Difficult Employee Conversations
Batch Record Review and Product Release
Engineering Change Management (ECM)
Workplace Investigations 101: How to Conduct your Investiga…
Project Management for administrative professionals
How to Document Employee Discussions and Why it is Important
Excel - Lists and Tables - A Beginner's Guide to Managing L…
6-Hour Virtual Seminar on Learning the Highlights of Excel …
Form 1099 Update 2024: Latest Forms, Rules and Reporting Re…
Better Business Writing - How to Write Right
Ultimate Persuasion Strategies! - Secret Influence Tools & …
Female to Female Hostility @Workplace: All you Need to Know
Improving Employee Engagement & Retention Through Stay Inte…
Do's and Don'ts of Giving Effective Feedback for Performanc…
CAMELS Evaluation and Rating System plus Examination of CCA…
California Meal and Rest Breaks: What You Don't Know Can Co…
Onboarding is NOT Orientation - How to Improve the New Empl…
Surviving and Thriving Organizational Change and Loss: The …
Human Factors Usability Studies Following ISO 62366 and FDA…
Performance of Root Cause Analysis, CAPA, and Effectiveness…
Blending Virtual & In-Person Onboarding to Welcome, Engage …
2-Hour Virtual Seminar on How to Conduct an Internal Harass…
Documenting Misconduct that Will Stand Up in Court
Effective Onboarding: How to Welcome, Engage, and Retain Ne…
A Modest PMBOK® Guide Proposal: Project Blame Management (S…
Marketing to Medicare or Medicaid Beneficiaries - What You …
AI-Powered Onboarding: How to Personalize, Streamline the N…
Outlook - Master your Mailbox - Inbox Hero Inbox Zero
FDA Compliance And Laboratory Computer System Validation
So, You’re Now the “Boss”: Essential Skills to Succeed as a…
Managing Toxic & Other Employees Who Have Attitude Issues