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Making the right decisionEnterprise Performance Management (EPM)Proposition Offerings DeckFebruary 2011
www.pwc.co.uk
Strictly Private &
Confidential
Helping you drive success
by putting information at
the heart of your decision
making
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1PwC
Contents
The PwC CEO survey perspective on performance management 2
What drives the need for performance management across the enterprise? 3
Components of the PwC EPM solution Cycle of strategy to execution
Leadership and governance
Performance management architecture
Enterprise wide engagement
45
11
13
19
Components of the PwC EPM solution
The EPM Blueprint
The PwC difference
EPM contacts
26
27
28
29
Appendix EPM tools and methodologies 30
Enterprise Performance Management Proposition
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2PwC
While 46% of participants draw financial data from a
central repository, only 23% can access managementreporting from a common source
Stormy watersThe PwC CEO survey perspective on performance management
CEOs are looking to the finance function to provide more insight and advice, yet only 11% of finance personnel are engaged in true
business partner roles
PwCs research indicates a primary reason is the strong dissatisfaction with the quality of managementinformation, especially forward-looking analysis
There is very little insight provided, and littlevalue-add. If I ask for comment or pose questions,they are answered reactively.
FTSE CEO, Financial service sector
Despite the significant amount of time devoted to
planning and forecasting, satisfaction with the qualityof MI coming out of these activities remains low.
80% of participants in the survey stated that they
were dissatisfied with the quality of managementinformation.
CEO surveyConsider the economic challenges we are facing, thekey improvement that is needed is fasterinformation, with more depth of analysis comparingus to the outside world.
FTSE CEO, Oil and gas sector
Figure 9: Percentage of time spent on activities
Figure 8: Quality of management information
19%
20%
25%
30%
6%Strategy and planning
Budgeting and forecasting
Performance improvementprojectsBusiness analysis
Management reporting
4%14%
68%
14%Highly satisfied
Satisfied
Dissatisfied
Highly dissatisfied
54%
46%
77%
23%
Financial
reporting
Managementreporting
Multiple applications and database in usecorporate wide
Single suite of applications and database inuse corporate wide ie 'single version of truth'
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3PwC
Are you about to capsize?What drives the need for performance management across the enterprise?
We witness common performance management challenges at all levels of a business
MarketCustomer
ServiceMarketing &
SalesPlanning
& LogisticsProduction
ProcureMaterials &
Services
DevelopProducts& Services
Suppliers
However most organisations see EPM projects as a solution for finance or IT
What price do I pay and what burden do I place upon my team to answer my questions?
Regulators Shareholders Environmental agencies
I need real long-term insight into the business beyond that given in the statutory accounts
I need to understand andtrack drivers of customer
satisfaction and experience
Can I improvethe links betweencommercial and
development to betterunderstand customer
requirements andneeds?
I need analysis of supply marketrisk management, including
reputational risk
I want to be able to align shop flooractivity to corporate strategy
I want to Improvedemand forecasting
processes, skills and tools
I want to increase my focuson high value / high potential
customers
I want to identify themost profitable products
and services
I want to define customer retention performance and track
drivers of retention
(Evolution)What will the evolution of vision
and strategy mean for myorganisation?
(The Future)I dont have genuine foresightthrough predictive, risk based
scenario plans
(The Present)Am I deploying resources in the mostoptimum manner to attain our vision?
(The Past)Do I have a clear picture of
performance across thebusiness?
I need clarity andtransparency into the
business financial andnon-financial metrics
My ability to plan andmonitor performance against the plan,
is undermined by inconsistent datain multiple systems
Am I compliantwith all regulatory
requirements?How do I protect
the information andensure the right
governanceprocedures
are in place?
Am I making availablewhat the business demandsat the right time, in the right
place on the right device?
How do I reduce the costof maintaining all these
systems?
Are we settingour people individual
objectives that are inlinewith delivering our
organisationsaspirations?
Do our staffunderstand andbelieve in our
corporate culture?
I need to be able to monitorstaff development and ensureit aligns to career aspirations
Finance
HR
IT
Leadershiptea
ms
CEO
Exter-
nal
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4PwC
A continuous cycle of strategy toexecution
Performance management activities are considered as a series of end to end processessuch as Strategy to Plan, rather than discrete activities like strategic planning, businessplanning and budgeting
Strategy can be converted into tangible metrics, measured and forecasted into the futureand incorporated into the learning, development and reward culture of the business
These processes need to remain fluid, allowing changes in strategy to flow through intothe actions of the people i n the organisation
Leadership sponsoring changeof behaviour and governance tomake it stick
Enterprise performance management requires a cultural shift from managing by reportsand numbers to managing by influencing changes in actions and behaviours
This requires top down leadership and a strong governance framework
Across an integratedperformance management
system architecture
Supporting the performance
management needs across theentire enterprise
An enterprise wide performance management strategy identifies the important metricsacross the entire organisation
Operational performance can be linked to corporate strategy
Operational teams can understand how they contribute to strategic performance
Increasing velocity & maximising performanceComponents of the PwC EPM solution
PwC promotes an enterprise wide solution based on four integrated components
As a result the entire business can leverage benefits from PwCs EPM solution
The components of an EPM
architecture stack
Market
Customer
Service
Marketing&Sales
Planning&
Logistics
Production
ProcureMaterials
&Services
DevelopProducts
&Services
Suppliers
Information strategy The business reference model describing the informationneeded to drive the business
EPM & BI applications Integrated performance management and business intelligenceapplications
Enterprise informationplatform
A consistent repository of data reflecting the requirementsidentified in the Information Strategy
Source systems &infrastructure
Diverse transactional systems (ERP, CRM, etc) and potential 3Psystems (supplier, customer, market data, social network)
Information strategy
EPM & BI applications
Enterprise information platform
Source systems and infrastructure
Leadership & Governance
Value
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Cycle of strategy to execution
1
Components of the PwC EPM solution
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6PwC
In the ERP world, the drive towards transactional excellence led organisations to move away from individually considering discrete areas of transaction
processing, such as procurement, accounts payable or fixed assets and move towards considering end to end transactional process such as Purchase to Pay.
Addressing management processes piecemeal has similar limitations
Instead of looking at strategic planning, business planning, budgeting and individual target setting separately, PwC advocates an integrated approach that
breaks the cycle of performance management into three end-to-end processes.
Maintaining control at speedCycle of strategy to execution: improving and integrating the process
Historically performance management activity was conducted as a series of discrete
processes undertaken throughout the year
'Measure to Forecastis the process by which organisations monitor and manage the execution of the long term strategy on an ongoing basis. Performance ismeasured by capturing, consolidating, reporting and analysing actual results al igned to the financial and non-financial measures prescribed during Strategy to Plan'.
The goal is to provide insight to identify and understand plan deviations early and define and execute the right actions to i mprove performance. The process culminateswith a realistic forecast of the expected business outcomes.
Recognise to Rewardhard wires the behavioursof functions, teams and individuals to activitycontributing to delivery of strategic objectives. Thisrequires linking remuneration strategy to delivery of
the measures identified in 'Strategy to Plan'. Alsocovers aligning individual performance managementto business performance management and linkingperformance outcome to the learning and
development programme.
'Strategy to Plan'is the end to end process bywhich organisations ready themselves to executeagainst their strategic objectives. This processincludes key performance and risk indicator
definition, cascading of metrics to engage thebusiness, long range business planning and shortterm resource allocation through, whereappropriate, comprehensive functionally integrated
budgeting.
3. Recognise to reward
2. Measure to forecast
1. Strategy to plan
Value
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Optimising performanceCycle of strategy to execution: from insight to foresight through metrics
The cycle of strategy execution is underpinned by understanding the right metrics, planning and measuring
against these metrics and linking the behaviours and activities of the workforce to delivery of these metrics
High performance
Insight and foresight
The right metrics
Understand the breadth of metrics acrossthe enterprise that underpin an
organisations strategic goals
Planned and measured
Integrating transparent planning andreporting processes on a platform ofquality information
Driving the desired behaviours
Driving performance through alignment
of the behaviour of the workforce
The signs of a high performing organisation
HR Director
CEO
CFO
CIO
Leadership Teams
External
I have clear line of sight into staff skills,training, motivation and how
this aligns to our culture
I can monitor our performanceagainst strategy and can effectively plan
for the future
I have consistent data that I can trustenabling transparency into the financial
and non-financial metrics
I know what information is needed and canproduce it in the most effective way
I can monitor my individualperformance and understand its effect
on the overall strategy
I am confident that the informationobtained from the business reflects reality
Value
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8PwC
Overview
Strategy to Plan' is the end to end process by which organisations ready themselves to execute against their strategicobjectives. This process includes defining the key indicators of performance and risk that underpin and validate the strategy.Business engagement is achieved through cascading aligned financial and non-financial measures to key functions, teams andindividuals within the organisation. The longer term objectives are quantified through long term business planning and theshort term resource allocation is defined through, where appropriate, producing a comprehensive, functionally integrated
budget.
PwC considers the aspects of Strategy to Plan as differentiated by the level of granularity, audience and content strategicplanning, long range planning, budgeting and operational planning and scheduling - increasing consistency and alignmentacross the organisation.
Offerings Benefit
Strategic modelling and value driver analysis
KPI and KRI definition
Cascading metrics to functions, teams and individuals
Integrating business planning to individual objectivesetting
Scorecarding and board reporting
Long range planning Budgeting data model definition
Budget process blueprint
EPM technology review and selection
EPM technology configuration, deployment and on-goingexploitation
Change management supporting sustainable transition
Common understanding of the key indicators of performance and risk that have the most significant impact on thebusiness
Business engagement at all levels with a focus on activities and actions linked to achieving strategic objectives
Standardisation and simplification by reducing detail and complexity, centralising process control and ownership anddefinition of a common data model
Integrated set of planning processes with clear handover points to improve alignment between strategic plans, businessplans and budgets
Integrated technology to automate and remove redundant activities including data collection, aggregation andreconciliation
Driver based approaches enabling key drivers to model financial outcomes
More frequent planning to smooth the planning effort across the year and minimise resource peaks
Reduction in granularity and shift of focus to material and controllable cost drivers
Outputs become action orientated with clear accountability
Plan the race aheadCycle of strategy to execution: Strategy to plan
In PwCs experience, a large proportion of large companies report either no link or a weak link between
the strategy and budget processes
Value
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Monitor your performanceCycle of strategy to execution: Measure to forecast
High performing companies are significantly more effective in their use of cross functional information,
driver-based forecasting and predictive analytics
Overview
'Measure to Forecast is the process by which organisations monitor and manage the execution of the long term strategyon an ongoing basis. Performance is measured by capturing, consolidating, reporting and analysing actual results. Reportingand analysis must be aligned to the financial and non-financial measures prescribed during the Strategy to Plan process. Thegoal is to create transparency around the actual performance against targets, provide insight to identify and understand plandeviations early and define and execute the right actions to improve performance. The process culminates with a realisticforecast of the expected business outcomes given the performance to date, the target set in 'Strategy to Plan' and theprogramme of performance improvement actions. This is often not as easy as it sounds. Key challenges include:
Lack of consistent, streamlined i nformation to support management decisions
Lack of integration between management, legal and regulatory reporting
Reliance on largely manual reporting processes
Non-transparent and inconsistent data "silos" in different functions that have grown by evolution No cross-functional ownership and governance for data definitions, reports and systems
Lack of flexible and scalable tools used in the reporting and analysis cycle
Offerings Benefit
Financial (statutory), management and regulatoryreporting
Industry/function specific analysis(e.g. profitability and cost analysis, cash flow forecasting,scenario analysis, pricing and trade spend analysis, R&Dproject analysis, capacity planning)
Process standardisation, automation and acceleration
EPM technology configuration, deployment and on-goingexploitation
Organisational transformation to enable shared reportingplatforms and processes and business partnering
Data model design and data management
Governance and controls framework design
Timely reports and analyses based on metrics that matter
Consistent view of the business across all reporting dimensions, e.g. statutory, management and line of business viewsproduced in an integrated process
Reporting information that can be trusted and provides insight
Predictive analytics and forecasts that provide real foresight
The ability to make decisions faster so as to seize opportunities or to intervene quickly when performance moves off target
An organisation freed from data gathering and devoted to analysis and decision support Lower costs and less complexity in the preparation of standard reports and analyses with the business enabled to self-serve
on reporting requirements
Finance recognised by the business for driving rigorous and analytical cross-functional dialogue and action plans based oncommonly agreed performance measures
Value
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Celebrate your successCycle of strategy to execution: Recognise to reward
Reward systems are increasingly mistrusted by staff, reducing the effectiveness and alignment of staff
behaviour to organisation strategy
Overview
Recognise to Reward is the process used to close the loop on performance management and hard wire the behaviours offunctions, teams and individuals to activity contributing to delivery of the organisation's strategic objectives. This requireslinking the remuneration strategy to delivery of the financial and non-financial measures identified in 'Strategy to Plan'. Theprocess goes beyond financial reward and should cover all forms of staff recognition. This includes aligning the individualperformance management process to the business performance management process and linking performance outcome tothe organisation's learning and development programme.
It is important that there is a clear and transparent link between performance measures and reward otherwise theorganisation risks credibility with the entire performance management process. The meaning of the measures and how theindividual roles and behaviours can affect them must be spelt out to limit cynical views of reward bearing no relation toorganisation strategy. Increasingly, studies are reflecting the limits of financial rewards in changing or motivating behaviours,reinforcing the importance of total reward strategy.
Offerings Benefit
Definition of business performance aligned individualperformance management frameworks
Saratoga benchmarking of reward for marketcompetiveness
Non financial reward option analysis
Tax effective reward and pensions advice
Performance aligned learning and developmentprogrammes
Individual performance management activity aligned to business performance management activity
Organisation wide understanding of the reward system and importance of measures to applying the strategy
Workforce incentivised to executive against activities aligned to delivering desired strategic outcomes
Awareness of market/competitive reward offerings and where your organisation fits
Tax efficient reward for staff resulting in lower reward costs
Triggers to employee training linked to business performance and embedded in the individual performance management
process
Value
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Leadership and governance
2
Components of the PwC EPM solution
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12PwC
Overview
Leadership - transitioning an organisation from running its business based on performance reporting to driving its businessbased on performance management requires a paradigm shift in behaviours. This change of culture from focusing on thevalues of the numbers in the reports to focusing on the actions and activities undertaken to influence the numbers requiresstrong and unified leadership from the top.
New systems, process and measurement won't by themselves create an alignment to organisation strategy. Leadershipbehaviours will set the tone for the new model of what is acceptable behaviours and what is not, but they must themselves bealigned with the new model. The ability of the leadership team to give an unified and constant front becomes one of the keyfactors of success.
Governance - leadership can bring a performance management culture into existence but its long term survivability isdependent on establishing an effective governance structure. This goes far beyond merely the operating rules but includes the
changes in the ways of working, and the creation or restructuring of organisational bodies to maintain and reinforce theperformance structure. Changing workforce behaviours will need a number of approaches including the provision ofappropriate training and capability solutions, reward reinforcement and communication.
Offerings Benefit
EPM readiness and capability assessment
EPM culture roadmap development
Performance aligned organisation design strategy andimplementation
EPM behavioural change strategy and implementation
EPM leadership assessment, development and coaching
EPM governance and organisation design
Understanding of behavioural, organisational, people, process and technological barriers to adopting a performancemanagement led culture
Clearly defined communication audiences, messages and medium and a means to measure the effectiveness of the
performance management communications activity
Awareness of leadership values and behaviours prior to implementation of performance systems
Clearly defined performance management governance and organisational structures to embed a performance managementfocused mindset into the long term culture of the business
Alignment of leadership and organisation wide behaviour to strategy
Clearly defined set of required performance aligned organisation behaviours combined with tools and processes to achievethem
Change your ways for goodLeadership and Governance
True performance management means different ways of working for everyone with an emphasis on
actions to influence metrics rather than the numbers
Leadership & Governance
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Performance management architecture
3
Components of the PwC EPM solution
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14PwC
It is only recently that
organisations are starting to
approach EPM and BI initiatives
with the same rigour as they have
undertaken transformation of their
transactional capability. This
requires an end-to-end approach to
the performance management
architecture set within the context
of the business reference modelrequired to shape and monitor
strategy execution. A performance
management architecture vision
incorporates a series of EPM and
BI applications working off a
consistent information set sourcing
information across the full range of
internal, customer, supplier,
market and internet source
systems.
The foundations of high performancePerformance management architecture: building a stable platform
Effective performance management requires a clearly defines business reference model underpinned by a
robust, integrated technology platform
Information strategyThe business reference model describing the information needed to
drive the business. The organisational model and technologystandards for effective provision of EPM and BI services, approach tomaster data and hierarchy management.
EPM & BI applicationsIntegrated performance management and business intelligenceapplications. Common components include group consolidation tool,
planning, budgeting and forecasting tools, profitability and costmanagement tools, management and board reporting tools.
Enterprise information platformA consistent repository of data reflecting the requirements identifiedin the information strategy.
Source systems and infrastructureAn integrated architecture for diverse transactional systems (ERP,
CRM, etc) and potential 3P systems (supplier, customer, market data,social network).
Information strategy
EPM & BI applications
Enterprise information platform
Source systems and infrastructure
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15PwC
Overview
An Information Strategy is the fundamental building block that underpins effective performance management across theorganisation. It comprises two key components; what you need to report, and how you are going to report it. What you needto report is described in a Business Reference Model. This describes the information set that is first considered in Strategy toPlan, that is the key indicators of performance and risk required to support your strategic and business planning, and thecascaded functional, team and individual metrics that give management line of sight through the organisation and align theactions of the workforce to activities contributing to delivery of the strategic objectives. How you are going to report isdescribed in a Management Information Delivery Model.
This covers the MI systems architecture, the organisation design to deliver MI, the interaction of MI with processes (e.g.budgeting or month end reporting) and the accountability of teams and individuals throughout the lifecycle of information.The MI Delivery Model is a pre-requisite for effective design of the three following layers of the EPM architecture; EPM andBI Applications, the Enterprise Information Platform and the Source Systems and Infrastructure.
Offerings Benefit
Business Reference Model definition, including:
Data definition
Standard report definition
MI Delivery Model definition, including:
EPM systems architecture
Master data management
MI delivery organisation model including:
BI Competency Centres, self-service versus bespokereport delivery
MI process definition
MI accountability definition
EPM architecture implementation roadmap
Maximise the value of informationPerformance management architecture: Information strategy
A properly formulated and clearly articulated information strategy sets the direction for your performance
management approach to achieving your business objectives
Cost Savings
Reduce cost of error, delays or misinterpretation
Increase Asset Value
Simplifying access to authoritative information
Operational Excellence
Standards; Common data dictionary
Stakeholder Satisfaction
Data reliability and integrity
Align IT Investments
Reduce technologyduplication
Optimize technology investments Streamline operational services
Information strategy
EPM & BI applications
Enterprise information platform
Source systems and infrastructure
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16PwC
Overview
Gartner describes EPM and BI applications projects as the number one IT investment for delivering value to the business;however a majority of these initiatives are seen to fail. In our experience this is usually a result of inadequate project planningand insufficient time spent on preparing a holistic Information Strategy before diving into implementation. Distinct EPM andBI applications are available to drive a range of performance management activities including: Strategic modelling
Planning, budgeting and forecasting
Management reporting, dashboarding and scorecarding
Statutory and regulatory reporting
Analytics
Profitability and cost management
Data mining and predictive analytics
The EPM and BI applications are the tools that the business users engage with on a day to day basis. Deployed effectivelyfollowing a business reference model on an integrated set of consistent data, these applications become the front-line for
deploying a performance management culture across an organisation.
Offerings Benefit
Expertise in: Strategic modelling tools Planning, budgeting and forecasting tools Management reporting tools Dashboard and scorecard tools Consolidation and reporting tools Analytics tools
Profitability and cost management tools Data mining and predictive analytics toolsApplications: SAP Business Objects ( BPC, PCM and BFC) Oracle Hyperion (HFM, Hyperion Planning, Essbase,
PCM and HSF) IBM/Cognos (including Planning, BI) IBM/SPSS Microsoft SAS MicroStrategy
Flexible, driver based strategic scenario modelling allowing the business to evaluate a range of likely business outcomesand assess the impact of potential risks
Streamlines the planning, budgeting and forecasting processes so they are automated and i ntegrated improves budgetcycle time with a focus on providing insight and foresight not hindsight
Streamlines the actual reporting process to enable a smarter close faster turn around of results and improved compliancewith regulatory and financial standards, reducing potential audits costs and business risk
Drive better performance through data-driven business analytics, e.g.
Optimise revenue cycle manage and measure receivables, collection rates and monitor trends
Make right time operational adjustments optimise staff, facilities and resources
Expedite data-driven quality and cost improvement
Optimise and automate decisions to improve business processes with predictive analytics
Provide the tools to performPerformance management architecture: EPM and BI applications
Appropriate tools and technologies powered by consistent, standardised data
Information strategy
EPM & BI applications
Enterprise information platform
Source systems and infrastructure
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17PwC
Overview
Data is a corporate asset and as such is a potential source of competitive advantage. In order to derive this, an organisationmust first be able to harness consistent and accurate data from across the enterprise and then consolidate it for the purpose oftimely decision making. Increasingly this requires the creation of a central repository of data, and a series of additionalapplications managing the flows and messaging of data between systems.
We can support you in navigating the range of architectural considerations and options available to you, and advise you on allthe steps in your journey from software selection through to technical designs and programme management of anysubsequent implementations.
Offerings Benefit
Improving data connectivity
ETL routines and movement of structured data from
source to target systems
Enterprise Application Integration implementation
of middleware to share business data and processesacross the organisation
Delivering operational and analytical data stores
Facilitating single versions of the truth for customerand transactional data
Build ability to track deltas and events over time
Master Data Management
Create strategies and frameworks for managing
master and meta-data
Enterprise Records Management
Manage sources of unstructured data
Support document search and retrieval capabilities
One version of the truth - avoid the situation where the same information exists in different forms across anorganisation
Wider access to information effective information use supports cross-functional collaboration across operationaland geographical boundaries
Compliance with legislation and regulation in the US and in Europe over 10,000 regulations govern the storage,availability and disposal of information
Reduced cost of data storing and managing data is an ongoing cost to the organisation. The ability to retrieve
pertinent data in a timely fashion is critical. Increasingly it is important to be able to access both structured and un-structured data (an estimated 90% of data is held in unstructured form). The ability to retrieve, search and then exploitdata is key component of getting data working for the organisation
Increased productivity provides the framework for accurate and timely management information, in turn reducingtime spent searching for and creating information, freeing staff to work on revenue generating activities
Everyone on the same pagePerformance management architecture: Enterprise information platform
Ensuring data is improved, streamlined, connected and consistent
Information strategy
EPM & BI applications
Enterprise information platform
Source systems and infrastructure
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18PwC
Overview
To truly embrace the opportunity of enterprise performance management you will need broad horizons when it comes tosourcing data. The ERP and CRM systems are good places to start but can be supplemented with data from supplier andcustomer systems. Social networking sites are a good source of data for understanding the voice of the customer. There arefew truly greenfield application architectures; most large organisations have seen a combination of organic and acquisitivegrowth resulting in a disparate IT architecture and infrastructure. In most large organisations Enterprise Architects wrestle
with a myriad of different systems, and the challenges of how to efficiently operate the heritage systems and extract valuefrom the data within them. The strategic choices for leveraging heritage systems range between:
Initiatives to reduce individual islands of information and better leverage data in existing structures
Enterprise wide ERP and CRM standardisation and consolidation programmes
It is increasingly important to be able to extract value from existing IT investments, and to harness all the data held by the
organisation. This should include externally sourced third party data and other sources of commercially available data.
Offerings Benefit
Expertise in:
Optimising operational efficiency and effectiveness ofERP, CRM and Supply Chain Management systems
Data standardisation and ERP consolidationprogrammes
Data audits and assessing the value of data in theorganisation
3rd party data
Semi-structured contact data
Customer and supplier attitudinal data
Improve operational IT system efficiency and effectiveness
Deliver value from existing IT infrastructure investment
Identification of systems obsolescence and opportunities for systems decommissioning
Deliver cost savings through heritage system consolidation
Assess the strategic benefits of data standardisation and consolidation programmes
Support strategic Enterprise Information Platform programmes (data warehousing)
Support for data aggregation and exploitation initiatives by addressing the key issues around what data needs to be fed ormigrated to a data warehouse or accompanying data marts
Identify and exploit disparate data sources
Silos of commercially valuable data sit throughout the organisation these need to be identified and audited
Deliver tactical quick win initiatives based around exploitation of untapped data
Embracing all sources of dataPerformance management architecture: Source systems & infrastructure
Aligning your operational IT architecture to support performance management
Information strategy
EPM & BI applications
Enterprise information platform
Source systems and infrastructure
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Enterprise wide engagement
4
Components of the PwC EPM solution
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20PwC
The transition from insight to
foresight will be realised through
determining the optimum set of
metrics to support the performance
management needs across the
entire organisation with clear
alignment to the corporate
strategy. It is essential that
operational teams understand how
they can contribute to strategicperformance. This is alignment is
driven by focusing on metrics that
matters in terms of time horizon
and business operating model.
Engage the business engineEnterprise wide engagement: performance is everybodys business
Effective enterprise performance management requires a clear alignment of corporate strategy with
metrics across the end-to-end of the value chain
Marketing& Sales
Planning& Logistics
ProcureMaterials
& Services
CustomerService
ProductionDevelop Products
& Services
Business Operating Model
What are the relationships between the entities in the
end to end value chain? The operating model will shapemetrics that you directly manage and those which are
the responsibility of a business partner. For example,possible relationships with Production include:
Wholly owned factories
Toller or Contract Manufacturer under a Principalcompany structure
Co-packer or co-manufacturer
Other examples of relationships that will drive theoptimum set of metrics include:
The channel strategy
Logistics outsourcing relationships
The degree of P2P or O2C transaction processing
outsourcing
Time Horizon
What do you need to know now the daily update
tweet to your mobile device?
What matters on a monthly / quarterly time horizon?
What matters strategically and what will be analysed onan ad hoc or annual cycle?
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Engage the business engineEnterprise wide engagement: performance is everybodys business
Performance management challenges are pervasive across the entire business
The entire enterprise can benefit from PwCs EPM solution
Improve the linksbetween commercialand development to
better understandcustomer requirementsand needs
Understand product
level P&L managementto drive designdecisions
Customer and productsegmentation Understand the value ofinnovation
Business Case driveninnovation rewardthose that kill
innovation early Deliver streamlined,
efficient NPI methods for quicker, safer, more
cost effective launch
Linkage of procurementstrategy with businessstrategy
Understanding ofsavings / cost reductionperformance in year
Determining the P&L
impact and shareholdervalue added fromprocurement
Analysis of supplymarket riskmanagement, includingreputational risk
Assessing the level ofcontrol and compliance
with the procurement
and suppliermanagement process
Align shop flooractivity to corporatestrategy
Understand efficiencyand sources of waste
with in the production
processes
To provide alignmentwith value from thecustomers viewpoint
To identify hiddencomplexity in the
business and move tostandardised andsimplified processes
To drive thedevelopment of Lean
capability and promotea culture of continuousimprovement
Deliver integratedS&OP, leveraging totaldelivered cost, serviceand cash insights andanalytics to driveinformed decision
making
Drive efficiency in tothe management ofinventory across thesupply chain
Drive cost to serve tradeoffs integrated withcommercial trade termsdecisions
Asset and Networkanalysis to drive the
lowest cost, best servicemodel Core vs. Non-core
Improve demand
forecasting processes,skills and tools
Understand workingcapital (WC) driversand opportunities toreduce WC cycles
Increase focus on highvalue / high potentialcustomers
Identify the mostprofitable products andservices
Understand the
effectiveness of salesand advertisingchannels
Understand theeffectiveness ofmarketing, advertisingand sales processes
Determine the qualityand assignment of salespipeline
Monitor and controlsales and marketingactivities includingpricing
Review and enhancetrade terms to balance
what the customer willpay for vs. what is thecost of doing business
Improve total customerexperience (purchasing,fulfilment, usage,support, after salesservice, directedmarketing, etc)
Define customer
retention performanceand track drivers ofretention
Support account /relationshipdevelopment andmanagement activity
Understand and trackdrivers of customersatisfaction and
experience Analyse ability to up-
sell / cross-sell tocurrent customer base
Marketing
& Sales
Planning
& Logistics
Procure Materials
& Services
Customer
ServiceProduction
Develop Products
& Services
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22PwC
The outcome of the organisationsinnovation activities. It is aboutmore than R&D, technology andinventions which lead to newproducts and services. Theoutcomes can also manifest
themselves in a number of otherways, such as cost reductions,increased productivity, increases incustomer and people satisfaction,reduced cycle times, increasedreputation and reduced cost of poorquality. For this reason, theInvestor in Innovation Frameworktakes a wide view of innovationresults.
it is about blending a strategic mix of key drivers around and through theorganisations culture that leads to the creation of value and business impact
Enterprise wide engagement: Develop products and servicesInnovate with direction
The innovation mix is a blend of activities and processes that link and encourage innovation to happen
and flourish. There is no one mix and not one type of culture
Value creation &business impact
Innovation deliveryInnovation climateInnovation direction
Drives the activities relating tothe role of innovation within the
organisation
Number of new products/ services
developed within a 12 month period Number of transformed products/
services, e.g. re-investing in
underperforming products or ideas thathave yet to be invested in
Investment in innovation activities (bothfinancial and in resources / also intraining staff on innovation)
Existing size of innovation portfolio number of new ideas being sought andconsidered
Processes in place for proactively seekingnew ideas, evaluating them and
managing them through from concept
Risk register and demonstration of risktolerance... innovation has to comefrompain
Focuses on developing a cultureof innovation which is the
centre piece of the framework
Culture conducive to innovation for
example staff encouraged to ideagenerate, take calculated risk, investmentin innovation activities e.g. time out for
idea generation, supported learning,openness to new ideas
Staff reward to be based partly oncontribution to innovation for example,
bonuses for ideas generated that aretaken from concept and developed
Physical office layout allows flow ofideas and doesn't hamper creativity
Links with universities evidence ofinvestment in R&D (either internally or
through universities of research bodies)
Collaboration with similar organisationsin the area of R&D
Evidence of benchmarking globally
Focuses on developing a systemof processes that deliver
innovation at an operationallevel
Return on Investment
% new products generating revenuewithin the first 12 months
Intellectual property number of patentssought for new products (success rates),number of products being trade markedperyear
Product life cycle number of productsdiscontinued to allow investment in newproducts
Margin increase from new products
Revenue generated from new productswithin the last 12 months - 3 years as a %
of total revenue
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23PwC
Focus
Critical materials andkey suppliers
Manufacturing, capitalexpenditure, health, safety,
quality and environment
End-to-end supply chainperformance, trading off
customer service, total delivered
cost and cash
Fulfil your customers wishesEnterprise wide engagement: Procurement, production, planning & logistics
The supply chain metrics are applicable at location, category and enterprise level
enabling a roll-up or drill-down highlighting where performance is out of tolerance
Procurement Director
Supply Chain Director
Finance Director
Visibility of financial information allowsme to be a better business partner
Sales Director
The early visibility of changesin demand allows me to be more
collaborative with suppliers
I understand what it really costs toserve our customers
Our decisions are relevant and timelytrading off cost, cash and service needs
My sales teams understand howtheir actions forecasts and trade terms
drive our cost base
Supply chain understand which ofour customers really matter and
how we should serve them
Planning & LogisticsProductionProcure Materials & Services
Time horizon
Short Term
DailyWeekly
Critical Tweets
Critical material and key suppliermarket news and deals
Major supplier failures
Daily and weekly outturn
Major capital programme news
Alerts on major accidents and
failures
Number/value of stock outs
Major customer issues
Key product/promotion item case
fill
Expediting costs vs. budget
Medium Term
Monthly toQuarterly
PerformanceTrends
Material price vs. standard
Hedging positions vs. spot prices
On time in full performance
Asset utilisation vs. budget
Outturn volume and mix vs. budget
Bill of material variance/waste vs.budget
Progress against Capexplan
Lost time accidents and frequency Audit reports scores
Sales forecast accuracy
Case fill vs. target
Percentage/value returns
Total delivered cost and cash vs.budget
Inventory cover, obsoletes andwrite-offs
Conformance to plans andschedules
Long Term
Annually
StrategicDevelopment
Material competiveness
Supplier relationship scorecard
Internal and external benchmarks
Internal service level agreements
Capital productivity and intensity
Internal and external benchmarks
Customer relationship scorecard
3rd (4th) party logistics providerrelationship scorecard
Internal and external benchmarks
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24PwC
Customer Driven Performance Management
Brand Equity
Product & ServiceRecognition
Advertising Reach
Media Share of Voice
Conversion Rate
CompetitivePositioning
Positive Share of Voice
Conversion Rate
Total Sales by volume andvalue
Total Margin
Sales Growth
Sales Cadence
Market Share
Pipeline Value
Customer Profitability
Recency and Frequency
Cost of Sale
Lifecycle Pricing
Total Trade Investment discounts and rebates
Total Cost to Serve
Quality of Service
Customer Satisfaction Complaints
Call response time
On time delivery
Claims and Disputes
Net Promoter Score
Repeat Sales
Customer Up Sell Customer Cross Sell
Customer Lifetime Value
Customer PaymentTerms and Compliance
Optimise the commercial functionAcross the enterprise: Marketing, sales and service
PwC specialises in performance management solutions across the commercial funnel
as a result the Commercial function can benefit from PwCs EPM solution
Marketing Sales Service
Marketing Director
Service Director
Leadership Teams
Sales Director
I understand which mechanicswork for us for each of our key channelsto market
I am much clearer aboutwhat our customers are
looking for
I understand how the functionis performing what is working
and what isnt.
I have greater visibility overthe forward order book and how
I should prioritise
I understand which customerswe should be targeting and who targets
them
Pricing is always a key leverof demand now we can use it more
strategically
LoyaltySatisfactionPerception PurchaseAwareness
Internally Driven Performance Management
Sales v Target
Coverage v Headcount
Sales Cycle Times
Total Cost to Serve
Channel costs
Employee Satisfaction
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25PwC
Marketing Director
Sustainable corporate trustAcross the enterprise: Sustainability and climate change
PwC integrates sustainability and climate change in its performance management solutions
...as a result the business can embed sustainability & climate change into its decisions
e.gs of sustainability considerations across the value chain
I want todevelop products tocapitalise on greenconsumer trends
I want to de-risk mysupply chain and reduce
costs by consideringcarbon in the
products/services we buy
I know there must beopportunity to further
reduce my carbonfootprint and realise
efficiencies, but I donthave the MI
I want a streamlineddistribution network
that is low cost and lowcarbon
I want to use ourenvironmentalcredentials as adifferentiator
What are thesustainability benefits
of our productscompared to the
competition?
Operations Director
Sales Director
Finance Director
Leadership Teams
Sustainability has helped us reduce riskand meet changing customer expectations
Awareness of sustainability helps reducecosts and enables us to behave more
joined up than ever before
Our sustainability credentials
differentiate our products
I am clear about how o ur products deliveron emerging green consumer trends
The business is considering sustainabilityand climate change at every step of the
business cycle
I am much clearer about the finan cialbenefits of embedding sustainability
Green consumer
trends Product/service
lifecycle impacts Current & pending
energy efficiency /carbon regulations
Impacts of designon the production
process Sustainability
impacts of the use
phase New technologies
that deliver reducedcosts and reducedimpacts
Physical climate
change risks to keysuppliers
Supplier policy &performanceregarding childlabour, forcedlabour, H&S andenvironmental
impact Supplier
sustainability
assessments Carbon intensity per
unit procured
Energy / carbon per
unit of production Energy intensity of
alternativeproductionprocesses
Sensitivity ofproduction processto changes in carbon
price Weight of packaging
per unit of
production Efficient packaging
design
Water use per unitof production
Carbon emissions
per km Number of journeys
& backhauling Distribution hub
planning and keyfuture supplierlocations
Low carbon
alternatives Using carbon to
instigate partnering
/ shared services
Green consumer
trends Product carbon
labelling Product / service
environmental andsocial benefits
Substantiatedmarketing messages
Meet new customer
demands Performance on key
customersustainabilityassessments
Marketing& Sales
Planning& Logistics
Procure Materials& Services
CustomerService
ProductionDevelop Products
& Services
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The PwC difference
5
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27PwC
The EPM BlueprintYour path to the podium
We have developed the PwC EPM Blueprint to baseline your EPM capability, define the vision, develop a
high level solution design and deliver the business case and programme roadmap
The EPM Blueprint fits within the Assess stage of our overall approach to transformation Transform*
Approximate 2 3 month exercise
Diagnostics and vision
Based on a baseline of performance managementactivity within the business, the EPM vision describesthe ambition for the EPM programme, typically over a 2 -5 year time horizon
High level solution design
Starting with a conceptual data model to support allEPM activity, the solution design builds out the impacton performance management processes, systems, peopleand organisation
Business case and roadmap
Outlines a business case for change including acomprehensive understanding of the total cost ofownership, any efficiency savings and other quantitativeand qualitative benefits. Delivery of the benefits isexplained in the overall roadmap for EPM deployment
backed up by a detailed implementation plan for the firstphase of the programme
Data
Conceptual data model
Data integration model
Data governance framework
Process
High level EPM process flows
Systems
Systems architecture
Software licensing, infrastructure and hostingstrategy
People and organisation
People and organisation impact assessment
Project organisation design
Visionandguidingprinciples
As-Is and To-Be definition
Data
Process
Systems
People & org
Reporting requirements
Benchmark and maturity profile Business casefor change
Roadmap
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28PwC
Our team
PwC provides an integrated end to end EPM offering,from KPI definition to application implementation,supported by a strong IT capability:
We have 3,500 SAP specialists globally
We have 1,700 Oracle specialists globally We design and implement EPM software solutions
We have 4 delivery centres across the globe
EPM is about foresight, not just insight
I call the BU President, and am toldhow great it is that we now have oneversion of the truth which forms thebasis for focused discussions around
key business decisions.Global consumer goods company
EPM is enterprise wide not just finance or IT
centric
The PwC differenceBe the best
Our unique proposition and our extensive experience combine to make PwC the right partner to work with
you to build and deliver on your vision for the future
Proven benefits managementour EPM business cases and deep implementation experience deliver demonstrable value and enable us to take an innovative approachto pricing our services
Making change stick all our consultants are trained in our Making change stick approach and are skilled in delivering sustainable change
Track recordlisten to our clients all of our EPM client projects are referenceable
The PwC difference our business case backed approach delivers sustainable change you can ask our clients
We bring together the range of expertise you need to cover all aspects of performance management
Enterprise WideEPM Strategy
Corporate SocialResponsibility
including Sustainabilityand Climate Change
Industry SectorExpertise
Governance, Risk& Compliance
Building Public Trust Awards:Recognising Trust and Transparency in
Corporate Reporting
Market
Customer
Service
Marketing&Sales
Planning&
Logistics
Production
ProcureMaterials
&Services
DevelopProducts
&Services
Suppliers
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29PwC
The PwC EPM leadership team
ConsultingNick GrovesPartner
t: 020 7804 2125m: 07970 825601nick.groves@uk.pwc.com
Consulting
Richard WylesPartner
t: 020 7212 6861m: 07957 358674richard.wyles@uk.pwc.com
Nick is a qualified chartered accountant and a partner specialising in Enterprise Performance Management. Hehas advised leading multinational clients on realising performance management solutions including performance
metric definition, long range planning, budgeting, forecasting and management and statutory reporting. Nick has
led the deployment of a number of global performance management and business intelligence technologysolutions.
Nick has a long history of working closely with the performance management software vendors, notably OracleHyperion, SAP Business Objects and IBM Cognos.
Richard has over 18 years of EPM experience including systems strategy, financial consolidation and reporting,
planning excellence, change management and project and programme leadership. As founder, and CEO of the(EPM) firm Paragon Consulting Group he developed an EPM practice of 90+ FTEs. Paragons success wasbased upon delivering EPM with a holistic suite of services covering process transformation, system
implementation and application management services. The Paragon team at PwC is renowned for its systemimplementation capability, clear market leadership in Oracle Hyperion and skills in SAP Business Objectsincluding SAP BPC.
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AppendixComponents of the PwC EPM solution
EPM tools and methodologies
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31PwC
Plan the race aheadCycle of strategy to execution: Strategy to plan
Underpinned by deep thinking
Enabled through technology
Integrated planning
We have methodologies to supportprocess redesign, supportingtechnology selection and technology
implementation. Technologytemplates accelerate delivery of
benefits and lower risk.
We apply our enterprise-wideapproach to Strategy to Planthrough Integrated Planning. Ourdifferentiated point of view considersthis aspect of performancemanagement in a holistic andintegrated manner across the valuechain.
Pervading our unique points of view andtechnology accelerators is deep thoughtleadership grounded in experience andunderstanding of client challenges.
Tools & methodologies
DiageoGlobal Beverage
Company
Better PlanningPwC assisted Diageo with the redesign of its global financial
planning and forecasting processes. This involved thestandardisation and globalisation of new planning processes basedon leading practices and lean principles. In addition, PwC supportedthe selection of a global planning application (SAP BPC) to enablethe new processes as well as the creation of a conceptual design anddata model for SAP BPC. We have since been retained to design adevelopment strategy, implementation roadmap and business casefor a global rollout of the new planning processes and SAP BPCtechnology.
GlobalPharmaceuticalsCompany
Common Planning PlatformThe standardised financial planning and analysis process PwCdelivered enables faster management decision making. Financeprofessionals from all divisions and geographies speak the sameplanning language, focus on analysis and deliver more value to the
business. Management gains increased visibility to global trends andsensitivities and can quickly model the prospects of contemplatedoperational adjustments.
Newmont Mining
One of the worldslargest miningcompanies
Driver based planning mine by mine
Newmont Mining developed a roadmap to move it to an EPMenabled organisation. This started with implementing new strategicplanning and actuals based reporting processes and systems. Wethen helped the client design and implement new driver basedplanning and budgeting processes, implemented at a mine by minelevel, producing efficient integrated phase budgets bottom-up, forthe global business, for the life of each mine.
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32PwC
Monitor your performanceCycle of strategy to execution: Measure to forecast
Enable transformational change
Combined with specify analysis
An enterprise wide approach
We have helped many leadingorganisations to either transform theirenterprise information environment
and/or design and implementindustry/function- specific solutions
which provide new insights and have ledto significant measurable business results.
Our unique approach to the design andimplementation of reporting andanalysis solutions allows you to focusand address different informationneeds across the value chain but at thesame time ensures cross-functionalintegration process improvement anddirect alignment to the enterprise widestrategy.
Our methodologies and tools are provenand have been applied successfully to themost complex situations. Ourmethodologies are not just enabling anaccelerated implementation of newreporting and analysis tools but also a
sustainable transformational change tothe organisation.
Tools & methodologies
UKs LargestCatalogue
Retailer
Profitability AnalysisThe business performance was previously measured on Gross
Margin with no view of additional product costs. There was no linkbetween buying and merchandising decisions and operational costimpact. We supported the client to address and answer the key
business questions such as where to source product, how to rangeproduct and how to dispose of excess stock. We performed anactivity analysis, developed a solution to measure and analyse trueproduct and customer profitability and managed the change toensure enterprise wide adoption of the new performancemanagement approach.
LeadingGlobal Brewery
Global Reporting, Planning & Consolidation SolutionOur client aimed to transform its fragmented financial performancemanagement environment grown by evolution and acquisition. Wesupported the client to implement a new global reporting, planningand consolidation system used across Finance, Supply/Procurement,Commerce, HR and IT and fully integrated across Group, Regionsand more than 150 Operating Companies around the world.
Leading Global
Agro-ChemicalCompany
Business Transformation
The client aimed to maximise the standardisation and scalability ofbusiness processes and services across the company with particularfocus on the support functions of HR, procurement, finance andinformation services. This is to enable scalable and reliable deliveryof these services while freeing up the rest of the business to focus onits main business activities. As a key enabler for this businesstransformation, we established a globally harmonised managementinformation and reporting environment with common measure,processes, tools and governance structures.
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33PwC
Celebrate your successCycle of strategy to execution: Recognise to reward
Competencies & skills framework
Training strategy
Culture assessment
Any change in process will introducethe need for knowledge transfer. A cleartraining strategy will ensure the smooth
introduction of new ways of workingand in some cases can itself be a non-financial reward.
Our culture survey tool enables theassessment of the current culture, staffmotivation towards reward and the
values they believe drive behaviour. Thisinformation provides a base line ofculture and indicates the types ofinterventions that are needed, other thanmerely changing the reward strategy.
Reward strategy must be aligned to thestrategic measures but also theorganisation design. Jobsand roles are grouped by competencies,each competency having an appropriatemarket value.
Tools & methodologies
A leadingpharmaceutical
company
Behavioural changePwC assisted one of the worlds leading pharmaceutical companies
to communicate new reward and grading structures. PwC workedclosely with the central teams in the US/UK and used changecommunication techniques to help underpin rapid workforceintegration at all levels. PwC completed a series of projects designedto establish a new internal brand while re-positioning all aspects ofgrading, reward and recruitment.
A global FMCGbusiness
Performance improvementPwC worked in partnership with a global FMCG business to designdevelop an implement a performance improvement trainingprogramme aimed at: improving ownership of end to end process,improving clarity around responsibility for communicatingperformance variances, team dynamics, the importance ofnetworking in solving problems.The training was co designed with the client to cover the basicspectrum of: increased knowledge, skills enhancement and attitudechange.
A large
pharmaceuticalcompany
Organisation design
This global pharmaceutical organisation recognised itsCompensation and Benefits function was not structured to deliver anefficient service to an organisation that was increasingly globalising.PwC assisted the company to review the effectiveness of the C&Borganisation including: Reviewing the current organisation structure Benchmarking how other global organisations are structured to
deliver similar reward services globally Assessing alternative operating models and reporting structures
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34PwC
Change your ways for goodLeadership and Governance
Ten tests of Organisation Design
Culture roadmap
Leadership star
The creation of a cultural roadmap isuseful in pulling together all theinterventions that will affect the
organisation culture. It helpsmanagement to see the foundationsand the timing of different actions andthe interconnections between them.
This tool displays the make up of theleadership team across a series ofleadership types, such as visionaryleadership, managerial leadership,personal leadership and technicalleadership.
All organisation design is a compromise:a trade off between different views andmodels. The ten tests allows assessmentacross strategic fit and good designprinciple promoting a considered view ofthis trade off.
Tools & methodologies
A largepharmaceutical
company
Behavioural changePwC assisted a large pharmaceutical company delivering strategic
and tactical advice for implementing a transformational changearound the behaviours and mindset of clients employees, consistingof: a code of conduct roll-out and implementation, Riskmanagement strategy and vision, compliance assurance mapping,compliance IT (and KPI) strategy and global promotional practices
A leadingenergy company
Performance drivePwC assisted one of the largest energy companies in the world totransform the way it operates one of its key businesses. The mainobjectives of this workstream were; create a culture of ownershipand performance drive within the clients operations, define andland the desired organisational behaviours, leadership andinnovation as vehicles for driving business performance, develop
business focused leadership, align local HR reward and recognitionpolicies and develop the organisational capabilities required tounderpin successful implementation.
A large
pharmaceuticalcompany
R & D operating model design
PwC assisted a large pharmaceutical company to design, constructand implement a new operating model for R&D. PwC also advisedon the definition and implementation of new R&D policies,processes and systems, focusing on initiatives to get stakeholders as
well as the front-line involved, and to encourage changes in peoplesbehaviours in a shift towards a project-oriented R&D.
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35PwC
Maximise the value of informationPerformance management architecture: Information strategy
Integrated Technology Platform
IT Performance Framework
Top-Down Integrated Approach
PwCs pragmatic approach thataddresses prevailing business and ITissues in the market today with EPM in
a way that drives accelerated andsustainable value to the business andcreates a realistic road map for processand technology transition..
Reinforce strategic clarity for theperformance measurement mission. Aproperly Top-Down formulated andclearly articulated strategy sets thedirection for your PerformanceManagement System to monitorBottom-Up implementation company
wide.
Overall alignment of the EPM suiteintegrating performance measurement,planning, budgeting and financialconsolidation processes enable the shiftto higher-value activities to achievesuccessful strategy implementation. A
single integrated EPM technologyplatform is the support required tosuccess on performance management.
Tools & methodologies
Global DrinksManufacturer
BI Project
Background: As part of a global finance transformation PwCsupported the client in developing a new BI capability.
Our approach: This included creation of global reporting andgovernance processes and the design of a new reporting framework,i.e. BI landscapes and reports for all business areas in scope. PwCalso supported creation of the new reporting organisation andgovernance.
Benefits: Globally aligned and transparent reporting.
GlobalManufacturer
Master Date Management ProjectBackground: M&As created multiple processes and technologies.Business units could not provide basic product and pricing reportingas data was inaccessible. 75+ people involved in the data collectioncovering 25 different IT systems.
Our approach: Developed management processes in support ofMDM model stewardship program, maintenance processes, andtechnology recommendations.
Benefits: Resources were not distracted by legacy data issues andwere able to focus on enterprise process efficiencies.
Engineering
Company
Standardising Data Set Project
Background: Client problems with new CRM system due tomultiple data sources (largely due to acquisitions) and conversion oflegacy customer data.
Our approach: Identified and defined the data elements that werecritical to this initiative. Established data quality metrics. Reviewedexisting processes for maintaining data.
Benefits: Determined that 40% of customer data was duplicatedacross divisions. Provided a detailed assessment of client data,developed business rules and created an improvement plan.
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36PwC
Provide the tools to performPerformance management architecture: EPM and BI applications
Breadth of experience
KPI libraries
Methodology
Industry relevant KPI libraries providea fast start to deploying scorecard anddashboard technology.
Tried and tested EPM implementationmethodology to turn strategy intosustainable business performance.
PwC extended its EPM capability byacquiring the Paragon Consulting Groupproviding domain leadership in strategicplanning, budgeting, forecasting,consolidation, reporting and businessintelligence.
Tools & methodologies
A LargeFinancial
Services client
Application Selection
PwC appointed to support selection process for group reportingand consolidation reporting system
Review of finance processes
Delivered detailed specifications for new system
Management of system selection process
Proof of concept management and delivery
Established ongoing programme of continuous improvement
Engineering Group Best Practice in Application Management Services Successfully supported Oracle Hyperion Enterprise Consolidation
and Group reporting since 2006
Expert support and system development
Rapid and valuable response to client issues
Reduced maintenance effort
Improved data quality and reduced time in data collection andreporting
One of the worlds
largest retailgroups
Transforming the Reporting Process
A global business where reporting overly focused on profit andloss and was highly inefficient (disjointed processes, disjointedExcel and EPM systems)
We helped the client develop a world class blue print for futuregroup reporting including an integrated data model formanagement and legal reporting and a new framework forstandardised reporting processes
Configured Oracle consolidation solution integrating with theERP and automated parts of the process
KPI_ID 11
ConsumerProducts Y
Entertainment& Media
Government&PublicSector
Financial Services
Industrial Products Y
Pharmaceuticals/Life Sciences
Energy
KPI_Name Supply Chain: Capacity Utilisation
KPI_Description TheproducedvolumeofFinishedProduct as apercentageofthe volumeofFinished
Product that canmaximally beproduced.
KPI_Objective Toidentify what percentageofthe maximum productioncapacity is actually being
used.
KPI_Calculation VolumeofFinishedProduct Produced
-----------------------------------------------x 100%
LineSpeedx AvailableHours x OE
-ReferenceSpeedis preferredoverLineSpeed
-AvailableHours basedonstandarddays productionperweek
-OE = Actual OE
KPI_Owner COO
KPI_UnitOfMeasure %
KPI_ValueDriver Maximisecapacity
KPI_DisplayType Bargraph
KPI_Benchmark
KPI_Functional/BusinessLevel
KPI_EnteredBy RuthGilligan
KPI_EnteredDate 28Jan2009
Industry
PricewaterhouseCoopers Advisory:Complete the KPIas short as possible.
Leave words out suchas: number, percentage, relation,
etc.
Example: Percentage sickness absence
This shouldbe: Sickness absence
Give eachKPIa unique number, startingwiththe
department code, followedby an_ (underscore)andfinishwiththe KPIname.
E l M n nt : M _ i n n
PricewaterhouseCoopers Advisory:
Describe detailedthe definitionof the KPI. Mentionprecisely howthe calculationshouldbe done andwhat
values (measures)are used.
Example Sickness absence:
Sickness absence: (total# hours of absence per measureperiod/total # contract hours permeasure period)*
100%.
Absence hours at the days of no contract are not
recordedas absence days.
PricewaterhouseCoopers Advisory:Give as short as possible the f ormula of the KPI. This is a
standarddescriptionat the dashboardnext to the KPIname. Therefore it shouldbe short, but it shouldgive
insight inwhat measures are connectedto the calculationof the KPI
For the example sickness absence wouldbe:(# sickness absence hours /# contract hours)* 100.
PricewaterhouseCoopers Advisory:The KPIowneris the person who is responsible for the
result of that specificKPI. This personalso takesactions if the KPIreport 'amber'or 'red'.
PricewaterhouseCoopers Advisory:
Give as short as possible the formula of the KPI. This is a
standarddescriptionat the dashboardnext to the KPIname. Therefore it shouldbe short, but it shouldgive
insight inwhat measures are connectedto thecalculationof the KPI
For the example sickness absence wouldbe:(# sickness absence hours /# contract hours)* 100.
PricewaterhouseCoop
ers Advisory:What shouldwe excelat?
Measurable factors thatimpact strategy
executionandcreatePricewaterhouseCoopers Advisory:
Optional:What is PwCbest practice?
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37PwC
Relevant standards for Electronic Content Management
EU Model Requirement for Electronic Records Management (MOREQ)
US Department of Defense (DOD) Records Management Certification
UK National Archives Generic Requirements for Electronic Document and Records
Management
Everyone on the same pagePerformance management architecture: Enterprise information platform
DataWarehousing
Enterprise Access &Search
Data Quality &Cleansing
KnowledgeManagement
PortalApplications
Content
Delivery
Budgeting &Forecasting
Applications
Master DataManagement
Data Integration
Data Mining
Reporting &OLAP Solutions
Operational BI
ScorecardsData Security
FinancialConsolidation
Dashboards
TechnologyEnabled
EnterprisePerformance
Enterprise Information Architecture Framework
Tools & methodologies
A largetelecommunicati
on company
Leading Global Telecoms Group
PwC assisted a large telecommunication company as trusted advisorto define the structure and vision for a long-term programme establishing anEPM suite covering MI, consolidation and financial forecasting across thegroup. Activity included: reviewing strengths and weaknesses of the globalEPM processes, KPIs/metrics, organisation and systems, defining a targetedscope for change across group and operating company business units andprocesses, determining the guiding principles for long-term improvement inMI and planning, including KPI and metrics definitions and establishing a 4-year road map and approach to delivery across the global business.
A largepharmaceuticalcompany
Technical Security Architecture for KnowledgeManagement and E-Commerce Web Portal
PwC assisted a large pharmaceutical company analysing businessrequirements, solution architectures, implementationconsiderations, operational considerations, and product selectioncriteria specific to company's Knowledge Management and E-Commerce initiatives.
A large
pharmaceuticalcompany
Data Management
Using the Data Management Group's proprietary TacticalDevelopment Methodology, PwC assisted the client in developinguser requirements which eventually were used by the client to createfunctional requirements.
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38PwC
Embracing all sources of data
Performance management architecture: Source systems and infrastructure
IT Governance Framework Cube
PwCs Architecture Framework
IT Functional Model view
Service-oriented architecture centres onthe notion that IT and/or businessassets are described and exposed as
Services. These Services can then becomposed in a loosely coupled fashioninto higher level business processes.
Our IT Functional Model is anintegrated execution framework thatincludes governance, people, process,technology and metrics required for anefficient, effective and successful ITarchitecture.
Tools & methodologies
Leadingfinance
services company
Web Based Finance Toolkit
PwC assisted a leading finance services company to design anonline-portal with a long term vision to develop it into a work-flowtool to support controllers in the performance of their roles. Thedesign of the on-line tool provided the client with a catalyst forapproaching the control environment in a top down way, starting
with the consolidated 10-k financial statements, working down tothe underlying policy, controls and processes supporting thefinancial statements.
A largepharmaceuticalcompany
SAP R/3 implementation and validationPwC assisted a large pharmaceutical company in the implementationof a validated SAP R/3 system. This included the definition andadherence to a formalised systems development life cycle, thedefinition, development and implementation of validation protocolsand procedures, ensuring quality in the development andfinalisation of system requirements, design and development,detailed review and assurance of system and user acceptance testing.
Leading tobacco
company
ERP solution and the implementation of 3 new
regional Shared Service CentresPwC assisted a leading tobacco company implementing acombination of SAP Corporate Finance Management (CFM) andSAP In-House Cash (IHC). These systems were linked to Citibank'sCitiDirect platform to facilitate the processing of both payments on
behalf and internal settlements. PwC conducted a data gatheringand analysis exercise to define the business needs, write functional
blueprints and RICEF requirements, build enhanced transactionalFX hedge management process, database tables and functionality toefficiently identify, consolidate and hedge FX exposures.
PwC brings together unique thoughtleadership on Business ProcessManagement to design and build targetIT architectures. This approach basedaround understanding the functions
well suited to BPM lends itself todefining pragmatic, implementablesolutions.
7/29/2019 Proposition Offering BPC or EPM PWC
40/40
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