Driving Business Performance with Cognos 8 Scorecarding

Greg Ferenc Nagy, IBM Cognos, AT/EE, CIS/Russia

Agenda

Financial Performance Management

Strategy Execution Failure

Strategy Management

Scorecard Definition

Cognos 8 Scorecarding

Common Scorecarding Pitfalls

Top Down Scorecarding Approach

Finance

ProductDevelopment

Operations

HumanResources

IT/Systems

CustomerService

Marketing

Sales

Financial Consolidation and Scorecarding Monitor strategy and report with confidence

Why?

How are we doing?

What should we be doing?

Financial Analytics and Reporting Analyze and optimize performance

Enterprise PlanningPlan, forecast and control enterprise resources

FPM – A Specialized View of PM

Why?

What should we be doing?

How are we doing?

How well do you know your Corporate Strategy?

Can lay it out on paper in casual conversation

Could put it together with a little thought and time

Not sure it is communicated to my level of the organization

Question

Strategy Execution Failure

Less than 10% of companies successfully execute their strategy (Fortune Magazine)• Mediocre growth• Lost market share• Lower profitability

Reasons for Strategy Execution Failure

• Lack of strategy communication• Lack of ownership & accountability• Lack of focus on strategic objectives• Lack of a comprehensive business view• Lack of strategic initiatives

Strategy Management

Drive strategy execution from the top

Translate strategy into terms everyone can understand

Align every part of the organization

Make strategy everyone’s job

Make strategy a continual process

Gartner Scorecard Definition

A scorecard is an application that helps organizations measure and align the strategic and tactical aspects of their businesses, processes and individuals via goals and targets. • Require a more structured approach and

framework than a dashboard, making use of a management methodology such as BSC, TQM, or Six Sigma.

• Helps manage your performance

Cognos 8 Scorecarding

Automates the strategy management and scorecarding process allowing an organization to link strategy to execution• Track the organization’s performance against

strategic objectives• Communicate the strategy across the organization• Ensure accountability and ownership• Provide departmental and employee focus• Link strategy to resource management (budgeting)

Common Scorecarding Pitfalls

Too many non-important metrics in a scorecard

No strategic importance

Chasing non-strategic reds

Initiatives/Projects/Reports not aligned with strategic objectives

Top down approach

Strategic View – Focus on Prioritization

Operational View – Focus on Understanding

Diagnostic View – Focus on Direction

Analytic View - Prescriptive

Q/A

Q & A