Making Better Decisions
Building on his one hour seminar and demonstrating how to apply analytics-based decision-making techniques, Mr. Cokins will explain how 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); 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 and regression 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.
What you will learn:
- How to view enterprise and corporate performance management (EPM/CPM) as the seamless integration of managerial methods rather than as a process.
- How to identify and differentiate strategic KPIs in a balanced scorecard and operational performance indicators in dashboards.
- How to perform “predictive accounting” for driver-based budgets / rolling financial forecasts, what-if analysis, and outsourcing decisions
- How to imbed statistics and analytics into product, channel, and customer profitability analysis.
- How to overcome implementation barriers such as behavioral resistance to change and fear of being held accountable.
Agenda08:00 – 09:00 Check-in with registration and Continental Breakfast & Coffee09:00 – 09:45 Compelling Needs for Enterprise Performance Management (EPM)
Overview of and Enterprise Performance Management (EPM)
09:45 – 10:45 The Rise of Business Intelligence (BI) and Business Analytics (BA)
- Why do companies fail?
- Volatility and uncertainty forces needs for new managerial methods
- The evolution of “eras” in managerial accounting
- What is the confusion and ambiguity about EPM?
- What is EPM?
- Public sector government and commercial organizations use of EPM.
- What are the forces and pressures causing high interest today in EPM?
Strategy Formulation and Strategy Management
10:45 – 11:15 Break – Coffee, Tea, assorted soft drinks, snacks11:15 – 12:30 Fact-based Data with Managerial Accounting (Activity Based Cost Management [ABC/M] )
- Why is there interest in BI and BA?
- Does BA provide a new competitive edge?
- What is the difference between BI and BA?
- What is the difference between forecasting and predictive analytics?
- Leadership’s reluctance to communicate strategy to employees
- Problems with measurements
- The role and purpose of a Mission and Vision statement
- The Strategy Map – its purpose and structure
- Balanced Scorecard (BSC) – and its many “balanced” dimensions
- How to define and select key performance indicators (KPIs)
- Distinguishing between strategic KPIs in a scorecard and operational process measures (PIs) in a dashboard
- Lessons learned and tips for success on how to implement BSC, KPIs, and PIs
Customer Profitability and Value Management
12:30 – 13:30 Lunch13:30 – 14:45 The shift to “predictive accounting” for Decision Making and Budgeting
- What has caused the need for advanced managerial accounting, such as ABC/M?
- Strategic ABC/M to manage product, service-line, channel, and customer profitability
- Two views of costs: Process versus diverse outputs
- ABC/M combined with project accounting
- Explaining the clutter of ABC/M compared with time-driven ABC, resource consumption accounting (RCA), lean accounting, and other costing techniques.
- The shift from a product- centric to a customer-centric focus
- Why non-product “cost-to-serve” measures have increased in importance
- Combining customer profitability with incentive systems
- For business-to-consumer industries, measuring future potential customer value with customer lifetime value (CLV) metric.
- Actions that can be taken to increase the profit of customer micro-segments
- Linking customer value to maximizing shareholder wealth creation
- Applying EPM to the extended value chain of supply chain management of trading partners (buyer/seller).
Operational Costing to Optimize Process Costs
14:45 – 16:00 The Shift in ROI’s Source from Tangible to Intangible Assets
- Problems and deficiencies with the traditional annual budget process
- How to develop the “strategy, risk and capital project” budgets
- How to develop the “operational budget” based on resource capacity planning
- Properties and types of decisions for closed loop capacity planning
- Integrating forecasts to shift from an annual budget to rolling financial forecasts
- Probabilistic scenario planning.
- How driver-based budgets and rolling financial forecasts lead to productivity improvement and cost reduction
- Measuring Unit Costs for cost transparency and benchmarking
- Applying “Attributes” to assess Value and Importance
- Six Sigma quality management and measuring the “cost of quality (COQ)”
- Lean management and calculating costs for value stream maps
- Leveraging EPM methods and information for supply chain management
Accelerating the Rate of Adoption for Implementing and EPM
16:00 – 16:30 Wrap Up and Q&A
- An integrated picture of EPM
- Increasing the ROI from information – and EPM as a Value-Multiplier
- Understanding the barriers the slow the adoption rate of EPM: technical, perceptions, model design, and social / cultural
- Why overcoming behavioral resistance to change is a key to success – and how to overcome it
- What can be next steps?
PresenterGary CokinsNoted Author and Founder of Analytics-Based Performance Management, LLC Durham, NC
Gary Cokins is an internationally recognized expert, speaker, and author in enterprise and corporate performance management (EPM/CPM) systems.
He is the founder of Analytics-Based Performance Management LLC. He began his career in industry with a Fortune 100 company in CFO and operations roles. Then 15 years in consulting with Deloitte, KPMG, and EDS (now part of HP). From 1997 until 2013 Gary was a Principal Consultant with SAS, a business analytics software vendor. His most recent books are Performance Management: Integrating Strategy Execution, Methodologies, Risk, and Analytics and Predictive Business Analytics.
Mr. Cokins holds an MBA from Northwestern University Kellogg (1974) and a BS in industrial engineering and operations research (1971) from Cornell University.
VenueWe look forward to see you atThe Sheraton Boston Hotel.39 Dalton Street, Boston,
Massachusetts, 02199 US.