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- Is the budget out of date within a few months after it is published?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
Artificial Intelligence (AI), Machine Learning, and FDA Com…
Female to Female Hostility @Workplace: All you Need to Know
Excel Spreadsheets; Develop and Validate for 21 CFR Part 11…
2024 EEOC & Employers: Investigating Claims of Harassment &…
Transforming Anger And Conflict Into Collaborative Problem …
Recruiting is Easy: Using a Sales and Marketing Approach
How to Write Procedures to Avoid Human Errors
Dynamic Presentations: Advanced Techniques with PowerPoint …
FDA Regulation of Artificial Intelligence/ Machine Learning
Behavioral Issues, Conflict and Incivility in The Workplace…
Marketing to Medicare or Medicaid Beneficiaries - What You …
Onboarding is Not Orientation: How to Improve Your New Hire…
Effective Onboarding: How to Welcome, Engage, and Retain Ne…
6-Hour Virtual Seminar on Learning the Highlights of Excel …
Impact Assessments For Supplier Change Notices
Developing an FDA/ISO Compliant Quality Management System
Aligning Your HR Strategy with Your Business Strategy
Accounting For Non Accountants : Debit, Credits And Financi…
Dealing With Difficult People In Life & Work
Managing Difficult Employee Conversations
I-9 Audits: Strengthening Your Immigration Compliance Strat…
Essential Job Functions According to the American with Disa…
Pay Equity Changes for 2024! What Employers Need to Know to…
Leader Branding: How to Communicate with Confidence to Attr…
Why EBITDA Doesn't Spell Cash Flow and What Does
Design Verification, Validation and Testing for Medical Dev…
FFIEC BSA/AML Examination Manual: What Compliance Officers …
Project Management for Non-Project Managers - How to commun…
Data Integrity and Privacy: Compliance with 21 CFR Part 11,…
Harassment, Bullying, Gossip, Confrontational and Disruptiv…
Employee or Independent Contractor – U.S DOL Announces 2024…
Best Practices in Complaint Management for Regulatory Compl…
Ensuring Safe and Effective Pharmaceutical Products: A Comp…
Human Factors Usability Studies Following ISO 62366 and FDA…
Tattoos, hijabs, piercings, and pink hair: The challenges …
Gossip-Free: Leadership Techniques to Quell Office Chatter
Updated Metro 2®, e-OSCAR and the New Tougher FCRA/CFPB Com…
Form W-9 Compliance to Avoid Penalties: TIN Verification, B…
Understanding and Analyzing Financial Statements
Divorce, Adoption and Other Special Tax Topics
Setting up Quality System for FDA Regulated Products: Tips …
Is Your Culture Working For or Against Your Success? If You…
With Mandatory Paid Leave Gaining Ground Is It Time To Do A…