30
Information in Action Perform BIRT for Recovery How Open Source is Transforming Government Data into Dynamic Information Ecosystems In this issue > Letter from the Editor 2 BIRT for Recovery 3 by John Katsoulis Ten Criteria for Integrating Six Sigma with Performance Management ... 9 by Norma Simons Putting the Wheels Into Motion 15 Voltas Limited Leveraging Open Source 18 Cost-Effectively Deploying Open Source BI 25 Safe at Sea 28 ABS Nautical Systems Creating the Customer-Centric Organization 31 by David F. Giannetto The National Bone Marrow Donor Program 34 by Howard Rohm Global Operational Excellence and a Performance Scorecard System 40 Johnson Controls Inc. Clarity, Cut and Carats 42 Helzberg Diamonds A Road Map of Key Sustainability Metrics 44 OPM Awards 49 HealthNow New York & City of Dallas Reading Room 57 Volume 6 / Issue 2 / 09

Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

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Page 1: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

Information in ActionPerform

BIRT for RecoveryHow Open Source is Transforming Government Data into Dynamic Information Ecosystems

In this issue gt

Letter from the Editor 2

BIRT for Recovery 3by John Katsoulis

Ten Criteria for Integrating Six Sigma with Performance Management 9by Norma Simons

Putting the Wheels Into Motion 15Voltas Limited

Leveraging Open Source 18

Cost-Effectively Deploying Open Source BI 25

Safe at Sea 28ABS Nautical Systems

Creating the Customer-Centric Organization 31by David F Giannetto

The National Bone Marrow Donor Program 34by Howard Rohm

Global Operational Excellence and a Performance Scorecard System 40Johnson Controls Inc

Clarity Cut and Carats 42Helzberg Diamonds

A Road Map of Key Sustainability Metrics 44

OPM Awards 49HealthNow New York amp City of Dallas

Reading Room 57

Volume 6 Issue 2 09

2

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agazine Information in Action

3

Vol 6 Issue 2 2009

BIRT FOR RECOVERYHow Open Source is Transforming Government Data Into Dynamic Information Ecosystems

ByJohn Katsoulis Senior Manager Product MarketingActuate Corporation

On February 17 2009 President Obama signed into law The American Recovery and Reinvestment Act of 2009 (ARRA) pledging a renewed focus on open government

and transparency and making it clear that in order for efforts to succeed this renewed focus had to become a top priority at each step of its execution

To provide initial guidance the White House released detailed documents on Recovery Act transparency and reporting which broadens the focus beyond funding programs to include details pertaining to how performance information is communicated to stakeholders and the means by which this may be accomplished

Over the past 20 years governments have been applying the concepts of Performance Measurement and Management in

Dear Reader

Irsquom sure you would agree that this year has proven to be memorable both in terms of the effort being made to pull out of todayrsquos economic uncertainties and how winning organizations will utilize and leverage a new generation of Rich Information Applications to help them succeed Irsquove always been fascinated with the pace of technological change and its impact on industry Itrsquos incredible how this new wave of application platforms and enterprise solutions is re-shaping how people use assemble and view information how IT secures and disseminates it and how every day users can now contribute to the ongoing definition of these applications through enhanced user interactivity that was not possible just five years ago

In addition to our dedication to publish content for Performance Management professionals I am pleased to share with you that we have permanently enhanced the focus of Perform Magazine the to better represent the needs of our readers by including articles and case studies on related topics such as Rich Information Applications (RIArsquos) Open Source and the role of developer communities self service applications and case studies that feature in-depth editorials of real-life implementation stories across multiple disciples and requirements I hope you enjoy this issue

Best Regards

John KatsoulisJohn KatsoulisPerform Editor

From the Editor

Last month we hosted a customer event that brought together a broad range of business leaders from both the private and public sectors The event was a tremendous success and our attendees had the wonderful opportunity to learn and share with each other how to harness new technologies to improve all aspects of their operations

A common theme that emerged from these discussions was that success in todayrsquos marketplace is tied to an organizationrsquos ability to adapt quickly and to implement change to ensure longevity One thing all attendees had in common was their insight and belief five years ago that the business of information how you organize it and communicate it would change dramatically ndash and it did The event confirmed what many industry analysts know to be true that Open Source technologies are here to stay and are an integral part of thousands of enterprises

This edition of Perform Magazine is especially significant as it marks the fifth anniversary of BIRT which is celebrated by a flourishing business application developer community an unmatched business community of Performance Management professionals and the launch of the BIRT Exchange Marketplace (httpwwwbirt-exchangecombemarketplacehub) a showcase for BIRT-based solutions and services where anyone can buy sell and share applications solutions and components for BIRT and BIRT-related products

I hope you enjoy this issue of Perform Magazine and can leverage the case studies and articles within on how todayrsquos Rich Information Applications grounded in Open Source technologies are re-igniting the business of information ndash and what you do with it

Best

Rich GuthRich Guth Vice President amp General Manager Open Source Strategy Group

From the Publisher

>

4

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Vol 6 Issue 2 2009

order to maximize results and minimize negative outcomes ndash first outlined under the Government Performance and Results Act (GPRA) in 1993 and later in a new piece of legislation called The Presidentrsquos Management Agenda which was introduced in 2002 What sets the ARRA apart is the scale of the Act and the urgency it represents across the nation and at every level of government With a $787 billion ante on the line federal and state agencies need to get it right or outcomes may be catastrophic to future generations Doing it right however means that todayrsquos stimulus programs need to sustain future growth in areas such as Energy Transportation Education Health and Infrastructure while giving the economy the kick start it needs today to get back on track

Integrated Performance Management for the ARRA Understanding the Fundamentals That Lead to Success

With so much money at stake and an overwhelming amount of information being published about how government needs to respond to the challenge how should government agencies engage the process to ensure they can both focus on delivering expected results while responding to the enhanced demands for transparency and accountability outlined in the Act

Moreover what pitfalls should government avoid to ensure that the individuals tasked with managing the successful execution of these programs are equipped to focus on their delivery as opposed to managing the data around the program History has taught both corporate and government sectors that an overabundance of data can systematically begin to paralyze an organization Without a clear direction and identification of goals and objectives individuals within any organization either lose sight of the mission or may have never understood the mission because it was never communicated to them

As such this whitepaper will explore five key recommendations that serve to demystify the perceived complexity related to the ARRA requirements ndash more specifically how to leverage proven methodologies such as Performance Management for successful execution and communication of stimulus projects and the results they achieve

Lastly this article will provide an overview of the Actuate BIRT Stimulus Management Solution highlighting some the unique differentiators that set it apart from the one-dimensional reporting applications or lengthy consulting engagements offered by other vendors

Recommendation 1 Train and Educate Your Workforce on Key Concepts

A common misconception at many organizations is that behaviors and activities are the same as results Upon closer scrutiny however there is a realization that employee activity volumes and what we perceive as good behaviors donrsquot always have a direct correlation with moving an organization towards a common set of goals and objectives

Engaging Performance Management will take you on a journey that involves collaborating with multiple internal and external stakeholders It also involves improving how goals and objectives are communicated so that everyone can understand the strategy in question As the journey unfolds the relationship between leading and lagging indicators goals and KPIs ndash in addition to how individuals contribute to each ndash needs to be clearly articulated which in turn encourages the alignment of resources to strategy Itrsquos vital that you explain these relationships to ensure everyone understands how their activities and behaviors ultimately impact the performance of metrics KPIs and higher-level goals

Recommendation 2 Ensure Everyone Understands the Mission (Defining Your Organizationrsquos Short- and Long-Term Goals)

Your organization educated its people on key concepts yet the question remains How do you attain visibility into the performance of your goals KPIs and metrics More importantly for government how do you effectively communicate these results in a manner that adheres to demands for new levels of transparency and accountability

An effective Performance Management initiative must follow a systems-based approach which consolidates and logically assembles an organizationrsquos goals KPIs and metrics into a representation of overall or operational strategy This creates a framework or cascade of measures that facilitates the generation of performance results at each level in the structure (see Figure 11)

Without a systems-based approach the effort produces a flawed picture because your reports are produced in silos ndash without links to other related information For example organizations that cut spending on education and training will likely improve bottom-line figures however the organization in question may eventually experience reduced productivity and long-term profit loss resulting from a workforce that is not as current on technologies and market trends as their competitors

A Performance Management framework provides strategic clarity and communicates what the strategy is and how individuals and programs contribute towards common goals it doesnrsquot matter if the strategy is for a single operational unit or the entire organization whatrsquos important is that you take the time to define your objectives and what contributes to them internally In the context of the Act organizations must find a clear and interactive way of visualizing it using a common framework so that individuals understand what the different focus areas are and how their efforts impact their performance

Recommendation 3 Communicate In-Context Performance Results Outputs and Outcomes to All Stakeholders Using Current Technologies

Effective communication of your operational organization-wide or initiative-specific strategy (in the case of the ARRA) involves transforming directions and goals into an actionable plan which in turn will help align frontline resources to day-to-day activities Automation is a key element to success in this area as is the ability to represent and utilize more than one Performance Management Framework

Typically government organizations are already (knowingly or unknowingly) well seasoned at Performance Management as they have been required to report on the performance of their programs for more than two decades As such government has reached a point where access to one-dimensional KPI reports is simply not enough ndash especially in light of the tremendous amount of information that exists in regards to the ARRA It really comes down to the basics to succeed with any initiative government will need to embrace technologies that provide management with insightful summarized KPI insight while delivering sophisticated linkages to the underlying information that feeds performance data But they need this information at their fingertips searching for it is not longer an option

A growing dynamic across sectors is the emergence of Open Source platforms and technologies as a viable alternative to the standard operating system-based solutions that many organizations had become accustomed to in the past Open Source provides a host of technical advantages most of which contribute to the ongoing enhancement of application speeding up the release cycle with business users and developers Open Source also provides significant long-term cost savings freeing up scarce IT dollars for other strategic initiatives

Open Source is the most rapidly growing technology today According to an article published by CIO Weekly in March 2003

[ Figure 11 ]

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agazine Information in Action

7

Vol 6 Issue 2 2009

54 percent of CIOs surveyed said Open Source will be their primary platform within five years The backbone of the internet even runs on Open Source software In addition to the benefits already noted some other high- level benefits surrounding the deployment of Open Source solutions include

bull Solutions vs software With Open Source programming the application received is precisely what the customer wants nothing more and nothing less Customers can elect to buy value-add products build it themselves or contract the work to a firm specializing in programming under a specific Open Source project

bull Speed to deployment A community of programmers develops the core elements of Open Source solutions and market deployment of these solutions is often quicker than proprietary business models

bull The role of developers Open Source developers working directly with consumers ndash in this case government agencies ndash can apply the best technology to meet the agencyrsquos immediate needs

bull Open Source standards and security Open Source solutions are extremely secure and vastly scaleable and reliable So much so in fact that prominent members of the financial industry such as Merrill Lynch and Credit Suisse First Boston use Linux ldquoopenrdquo servers for transactions

In all cases when searching for an integrated Performance Management solution your needs analysis should include complementary features and functions that help create the foundation of a system that people like using Donrsquot ignore features that help users access related knowledge best practices or the ability to quickly and easily deploy highly interactive executive scorecards dashboards and reports These will all contribute to high user adoption and alignment of your resources while external stakeholders are satisfied through similar display options built for them

Recommendation 4 Revisit Plans Regularly ndash Performance Management and Information is a Fluid Process Where Requirements and Directions Change Over Time

Performance Management in its truest sense has always involved getting cross-functional groups of people to work together through high levels of collaboration to help define organizational strategy (through the identification of high-level organizational goals and objectives as well as through related lower-level KPIs and metrics) Unlike other initiatives which have a natural start and end date you will find Performance Management is an ongoing process of redefining refining and changing directions as the environment around you changes and as directions from management are modified to react to changes in your surroundings For government the global economic crisis has placed increased expectations on every level of government to communicate performance and demonstrate accountability In doing so existing strategies will

need to be modified to include newer initiatives put in place to kick start recovery In essence the job is never done ndash itrsquos ongoing In addition to the general updates to strategy that all organizations experience over time you may also want to consider the following for effective management of your Performance Management initiative

1 Examine your initiative from the Program User and Technical aspect This will provide you with a structured way to review your Performance Management system your usersrsquo perceptions of the system and actual design of your strategic framework

2 Review outcomes to determine how much value is derived from your efforts

3 Review how well you have responded to transparency demands or performance improvement

4 Incorporate new initiatives and measures within existing scorecards in an efficient manner

5 Review current measurement processes to ensure consistent measurement across the organization

6 Re-educate your workforce as needed

7 Provide a forum for dialogue of new ideas

8 Ensure you are maximizing the use of your Performance Management system

Recommendation 5 Integrate Performance Management to Benefit from Two Highly-Collaborative Communities

Time and time again important decisions are made at organizations and across sectors using the traditional short-term ldquofinancial balance sheet approachrdquo Markets globally have demonstrated how this approach is flawed because it doesnrsquot take into account how these short-term decisions will impact future performance levels or the long-term viability of an organization

Earlier we suggested government take an integrated approach to Performance Management because of the tremendous benefits associated with having access to all enterprise information in a seamless environment that provides users with instant access to information at all times One of the main benefits not mentioned earlier which is critical to the ongoing success of any enterprise implementation is collaboration Collaboration can be divided into two groups collaboration among developers and collaboration among business users These two groups can come together to extract higher levels of value from Open Source technologies

Developer Collaboration

Open Source applications are built with the expectation that they will change they have to in order to grow and support new users These characteristics are the hallmarks of successful applications they keep their momentum by adding both users and features at the same time Open Source communities

contribute to the process by allowing application and report developers access and by sharing knowledge and resources relating to Open Source technology

In real terms using Actuate as an example the BIRT Exchange is a community site for Eclipse BIRT and Actuate BIRT developers who add reporting analytics and business intelligence capabilities to Java applications BIRT Exchange allows developers to share code samples and report designs tutorials technical articles as well as tips and tricks BIRT Exchange also offers forums downloads online documentation and information on BIRT technical support

Open Source applications also share a unique self-fueling characteristic in that the velocity to which they are enhanced is much faster than traditional applications ndash and this is directly attributed to its higher levels of collaboration Another way to look at this is from the context of a user and by looking at a series of events that unfolds as users embrace a new application and start to make requests

1 When you give users information you make them smarter

2 As they become smarter their questions change

3 This in turn changes application requirements or scope

4 Commonly-requested functionality is added to the application

5 User and developer collaboration speeds up the development cycle

Business User Collaboration

As mentioned earlier Performance Management is a highly collaborative effort that involves multiple internal and external stakeholders working through how goals and objectives translate into lower level KPIs which in turn link to frontline metrics It is only after an organization creates these linkages that alignment can occur A common thread for any strategy ndash regardless of industry ndash is that with time it will somehow change as organizations react to internal and external events so one can also look at it as an evolutionary process that involves everyone working towards a common set of goals and objectives which at some point over in the future will be changed or modified

What benefits can government organizations expect from the Integrated Performance Management process and how does collaboration add value Through an integrated understanding of performance government organizations gain insight into all aspects of their operations allowing them to have tighter control over obvious areas such as waste efficiencies and human resources in addition to enhanced insight into more strategic long-term success indicators such as innovation and sustainability among others In all cases this enhanced perspective into how an organization is performing across its top-level goals creates a smarter organization that empowers people to make better more informed decisions Simply put the Integrated Performance Management systems they use provide them with a complete picture Value is realized when a strategy is in place and when a systemized Performance Management initiative takes hold internally This is when performance results are communicated in the context of the organizationrsquos mission The communicated performance results then become a trigger to fix and improve areas where performance is below target ndash and the difference or ldquodeltardquo is value

Of course no strategy is perfect and over time it needs to be revisited enhanced and improved (if needed) by the same internal and external stakeholders that helped define it in the first place The process repeats itself once again which enhances the value or output of the planning efforts ndash each iteration hopefully provides a higher value return Without collaboration strategy canrsquot be improved and value canrsquot be enhanced

How Developers and Business Users Enhance the Value of Your Open Source Applications

Integrated Performance Management powered by Open Source technology creates a bridge between the developers who have traditionally collaborated (from a technical standpoint) in the Open Source model to include highly strategic executive-level business users Collaboration is enhanced with Open Source because the needs of technical and business users can merge from what was once two distinct development paths into a single cohesive system of requirements and enhancements which all serve to improve an application over time

For government specifically Open Source not only delivers the benefits associated with more rapid deployment of technical updates and changes but it also offers government leaders

Performance Management in its truest sense has always involved getting cross-functional groups of people to work together through high levels of collaboration to help define organizational strategy ldquo

rdquo

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Vol 6 Issue 2 2009

Need More InformationVisit the Actuate Website

wwwactuatecomwhy-actuateapplicationsstimulus-management

Download a Brochure of the Actuate Stimulus Management Solution

wwwactuatecomdownloadbrochures-datasheetsOPM-Stimulus-Management-briefpdf

Get access Actuate Stimulus Management Live click here

wwwactuatecominfoStimulus-Management-Live

a means to share best practices report templates measure structures scorecards etc that are not readily accessible with a closed model Additionally since governments serve to improve performance at all levels to their constituents the concept of collaboration exists in its truest sense because ldquocompetitionrdquo does not exist (as it does in the corporate sector) Governments in this sense are unique in that they can focus on collaborating with other government organizations to ensure that they learn from each other and can benefit from enhancements from either a technical or business standpoint

Responding to the ARRA How Do You Get There

Open Source ndash The Best Option for US Government

By no means is Open Source a new idea Open Source technologies and solutions such as Java Linux Solaris MySQL Apache and OpenOffice are well established and well proven with billions of people using them Some of the worldrsquos most successful companies ndash including Google and Facebook -- run their businesses on Open Source technologies

There are a few success stories in the US government yet we still lag behind governments in the United Kingdom Brazil Denmark the Netherlands China and Germany etc Governments there have engaged in formal wide-scale deployments of Open Source technology with many having articulated specific policy on Open Source As such without a clear Open Source policy in place the United States risks widening economic and technological competitive gaps between itself and the rest of the world

Do You Know BIRT

When it comes to solutions designed to respond to the reporting and transparency requirements outlined in the American Recovery and Reinvestment Act government leaders

will be pleased to hear that a full suite of value-added products and solutions are available today that are built specifically to address the ever-changing reporting complexities of the Act

Sitting at the core of this pre-built Stimulus Management Application is the Actuate BIRT Performance Scorecard the most fully-featured Integrated Performance Management System ldquoIntegratedrdquo is the key word here ndash because true performance insight requires access to all of your information so that it remains in context with your search at all times regardless of where your data resides

So what sets BIRT apart Itrsquos Open Source to start In fact itrsquos the most widely-used and accepted Open Source business projects in the world and it is reshaping how people in the workplace collaborate to use assemble and view information through the enhanced dynamic interactivity it delivers to every user across the enterprise

This rich collaborative environment is different because of how quickly changes can be deployed and enhancements added to the core technology stack BIRT will change how internal consumers view and use information and their changing needs help dictate future enhancements

Components of Actuate BIRT Stimulus Management

bull Pre-built framework of over 250 ARRA metrics

bull Dynamic BIRT templates including cost reports and interactive Google Maps

bull Actuate BIRT Performance Scorecard The most fully featured Performance Management system Proven methodology delivers concrete milestones tailored for each customer

bull Actuate BIRT and Flash Objects Intuitive rich dashboards display financial and non-financial metrics in context of other leading operational indicators with drill-through into personalized analysis-ready BIRT reports

bull Actuate BIRT Spreadsheets Automate the Excel spreadsheet creation process eliminating errors introduced by manual intervention thereby minimizing risk and improving data accuracy in business-critical spreadsheets

bull Consulting Services Unmatched Operational and Strategic Performance Management knowledge software consulting coupled with knowledge transfer

bull Metrics Library Leverage an extensive library of over 12000 metrics and a tailored ARRA solution database

John Katsoulis joined Actuate in November 2002 and is currently Senior Manager Product Marketing He has 13 years of combined experience in software consulting product management and product marketing John is responsible for the product marketing and development of new applications for Actuatersquos Performance Management solutions and also the editor of Perform Magazine

By Norma SimonsPresidentSimons-White amp Associates Inc

As workplaces become more complex with higher expectations the demand becomes greater for accountability and performance results As a result internal pressures escalate for organizational change which ndash if implemented

correctly ndash can lead to sustainable success for both corporate and government organizations

Itrsquos well known that Performance Management models and frameworks can help any organization create better alignment

by ensuring all resources are directed to those areas that are deemed strategic ndash but is that enough What about instances where alignment still falls short of expectations when the organization in question is still plagued with higher-than-expected levels of waste and inefficient processes How do you manage these processes and can traditional Performance Management methodologies provide enough insight to ensure success Or are other tools needed as well

With so many models and improvement tools available for organizations to use the challenge becomes one of identifying gaps and of implementing supplementary frameworks that fill those gaps These frameworks aim to fix operational areas that impact both top- and bottom-line strategy This article

TEN CRITERIA for Integrating SIX SIGMA with

Performance Management

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11

Vol 6 Issue 2 2009

will address how any organization can leverage its current Performance Management efforts and enhance outcomes and results by integrating and applying Lean Six Sigma If done properly organizations can use Lean Six Sigma with Performance Management to systematically improve operational performance by eliminating waste and by creating efficient business processes

For those who are not familiar Lean Six Sigma focuses on improving the quality of process outputs by identifying and removing errors and variability in manufacturing or business processes The Lean approach leverages statistical methods and analysis and requires that an organization create a special internal team of people who are experts in these methods (Black Belts Green Belts etc) As such Lean Six Sigma projects follow specific steps and have quantified targets Another way to look at Lean Six Sigma is as a project that is focused on cost savings and on removing mistakes or defects in a process

A Performance Management system is key to any Lean Six Sigma implementation Itrsquos the foundation from which Lean Six Sigma projects are built which means organizations that donrsquot have a functional Performance Management system are starting the Lean Six Sigma journey without the right tools Performance Management helps to clarify the business case to link projects to the bottom line and to provide a baseline of comparison as performance improvement occurs project by project If you donrsquot have a good Performance Management system you donrsquot have an effective method to set priorities in terms of which project you need to start on first

Performance Management then becomes the skeleton or backbone to Lean Six Sigma initiatives ensuring that you select the right projects that projects are linked to the bottom line and that they are done in the right order according to priorities that make sense And once the project is done Performance Management ensures that improvements are monitored and therefore sustained for long-term success

Initiating a Lean Six Sigma project begins with an assessment based on available Performance Management information You identify the approach you want to use ndash whether itrsquos Six Sigma or Lean will depend on what the challenge is ndash you execute the project and finally you monitor the business process to replicate the benefits Many times Lean Six Sigma will fail because of an organizationrsquos inability to replicate success yoursquove done a project there was success but you canrsquot repeat the process If you start off with a Performance Management system it becomes the DNA of the company that you can use to keep and maintain projects

There are 10 criteria that should be used as a baseline focus for the design of a Lean Six Sigma initiative integrated with Performance Management These 10 criteria will vary depending on whether yoursquore with government education healthcare or manufacturing and each has unique requirements that will impact how your program is going to be designed ndash but the fundamental principles in each criteria stay true across these segments

1 Customer Focus

Customer focus is one major criterion that will impact how a Lean Six Sigma initiative is designed Companies should be asking these five questions

1 Is the organization focused on the needs of the customer rather than just internal organizational requirements

2 Is there a process to capture the voice of the customer in an active way Are there surveys for example or are there means of talking to the customer to capture that information

3 Is that information collected Do they keep track of customer data

4 Is the data reviewed and disseminated so that people internally can understand how the organization is viewed

5 Are people aware of the internal customers as well as the external customers

This idea of customer focus is easy to grasp in the manufacturing environment because at the end of the day you are producing a product ndash a deliverable thatrsquos physical In other words many times when you go into a manufacturing plant there is some visual clue that gives you an idea of the extent of customer complaints especially external customer complaints There are also some areas of the organization that will be actively capturing the voice of the customer ndash in the marketing and engineering departments for example ndash communicating that information and using that information in the design process

Government organizations present a different challenge since customer focus is not something that is generally paid much attention to there What we find is that in the public sector you have a captive audience When you think about going to any public-sector organization ndash any city council or the mayorrsquos office etc ndash you are not there by choice As a result people within those environments lose sight of value because their remuneration is not tied to customer satisfaction instead they tend to be very internally driven and focused more on specific procedures that need to be followed and adhered to no matter what They donrsquot try to make things user friendly because they donrsquot have a natural customer focus built into their organizational DNA This is a major struggle in government

Similarly in the case of education customer focus is not a concept that is always embraced or translated in a way that produces desired results for stakeholders Individuals seem to forget or try to get around the idea that students are actually critical customers They are the deliverables of the entire educational system and their tuitions fund the school yet

despite this reality you still find professors and administrators who lose sight of who the customer is Again you have a service being provided without any dialogue or feedback and the people who are paying for it donrsquot get to ask any questions The customer focus is not very strong

Finally in healthcare everybody understands customer focus Everybody is panicked about the patient the safety of the patient and the care the patient needs But the system is not designed to deliver effective patient care they have not structured the system with that in mind Instead cost efficiencies and utilization take precedence

2 Leadership Commitment

Leadership commitment is also very critical to any Lean Six Sigma rollout What we typically find is leaders who are experts in their fields but who have limited or no knowledge of Lean Six Sigma they may hear of the terminology and think it sounds like a good thing but when itrsquos deployed they donrsquot get involved Companies that are successful in Lean Six Sigma are ones where management has been on board and an active part of the rollout from the beginning If management understands what Lean Six Sigma is about they can demonstrate the value it delivers therersquos a connection between processes and

business priorities and they can be more proactive in their involvement of Lean Six Sigma when these connections and the impact of their improvements are made clear to them

Traditionally leadership commitment in Lean Six Sigma has been weak no matter the industry In the manufacturing environment managers in some cases have bought on but in healthcare education and government leadership commitment is still weak In most cases itrsquos unfortunately one of the weakest links of any Lean Six Sigma initiative

3 Organizational Culture

A major problem in many organizations is the insufficient use of data not having the right data or not understanding how to use the data These stumbling blocks can have a tremendous impact on the culture of an organization since there is a strong psychological component attached to performance data This psychological component isnrsquot just related to how data is collected but also to how itrsquos viewed and the response it elicits For example when performance data is used to point out who went wrong theyrsquove in turn introduced a culture of fear that precludes the collecting and effective

use of data In turn this results in fewer people using the performance information and can also lead to people actually fixing the numbers because they know that data will be used against them The psychological component is critical

Also important is teamwork and collaboration across departments Wersquove seen more movement towards collaboration in the past 10 years in the manufacturing industry where certain initiatives have forced people in that sector to be more collaborative than they were originally A good example is concurrent engineering which allows for products and processes to be developed and refined by teams of people some of whom may work in the same building while others are in a different city or country their processes and goals are aligned to ensure a common output

In sectors where collaboration is less evident there are indications that this is partly due to strong departmentally driven organizational silos that prevent the collaboration needed to get to the next level As such the concept has had little impact in these organizations which most people characterize as being rule and process driven When presented to work together to improve performance these organizations are more likely to find out where the problem exists to ensure the right people are held accountable instead of using the cross-functional platform to ascertain how the organizational process of one or many departments can be improved to ensure better results in the future

If you are just beginning a Lean Six Sigma project and run across an organizational culture that is built on fear and mistrust or one heavily influenced by departmental silos and rules yoursquoll have to leverage Performance Management and demonstrate its benefits as you slowly align groups and people to a common set of goals and objectives while along the way you link to processes If done properly this key success factor will ensure you maintain the momentum needed to effectively engage and implement Lean Six Sigma and Performance Management

4 Company Strategy

If a company strategy is not embraced at the start of a project you can go down the path of putting together a Performance Management system and working on Lean Six Sigma with no alignment to top-level strategy or mission You many find that many projects will have no clear link to the direction and overall

purpose of the company Therefore they wonrsquot drive the right results The whole initiative will become short-lived as a result because when therersquos a crisis everybody will just move in a different direction

Everyone needs to understand the company strategy This will ensure that corporate strategy drives Performance Management that your improvement initiatives are closely aligned to top-level goals

12

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Vol 6 Issue 2 2009

and KPIs and that your people naturally work on the right projects

Demonstrating this linkage and the success you can attain by engaging the process properly can build the business case Another way is to demonstrate what can happen if you donrsquot fix the problem and its overall impact on the organization

5 Process Management

Process management is a foundation on which to build a cross-functional silo which is a good thing because it allows you to break through the traditional barriers associated with processes which for the most part tend to be focused around individual departments or business units Introducing the concept of process management into an organization can be disruptive especially if this individual is tasked with looking at the linkages of business processes across departments and how they can be improved

Most organizations typically already have departmental managers who run functional areas Whatrsquos missing in most cases are process managers who are tasked with focusing on critical cross-functional processes key to the survival of the organization and to the elimination of waste and increase of value through overall improvements

In organizations with siloed ldquofunctionally drivenrdquo cultures disconnects between different departments create waste and over time this erodes value To ensure success any improvement effort needs to be executed carefully facility by facility or function by function looking at processes baselines and at collaboration across these areas This is key to eliminating inefficiencies in organizations

6 Support for Change

Itrsquos important to recognize that Lean Six Sigmarsquos integration with Performance Management is providing many industries with a new way of looking at running complex organizations As such it needs to be embraced by everybody People need to have a positive view of Lean Six Sigma and the organization has to be prepared for the suggested changes Many times individuals misinterpret recommendations as an attack on how they are executing their duties but actually Lean Six

Sigma can be leveraged to amplify the efficiencies of individual departments by ensuring the same level of scrutiny is applied at process junction points

When managing change it is important to take into account the characteristics of the industry in question including the history of the organization the organizationrsquos overall cross-functional culture and the attitudes of its workforce and management In many instances people donrsquot want to initiate change because they think any new process is a phase that will soon pass and that theyrsquoll be returning to business as usual at some point in the future To ensure these difficult situations donrsquot impede on the Lean initiative there has to be some kind of orientation that has to match the industry in question whether itrsquos government manufacturing health care etc

7 Performance Measurement

Companies must identify their true performance drivers or Key Performance Indicators as opposed to measurements that are collected regularly that donrsquot relate to anything Often those numbers have been created randomly which means theyrsquore not driving organizational performance and as a result wonrsquot provide the insight needed to make informed decisions In other cases these measurements are in place because at some point in time someone thought they would be a good idea but under more careful scrutiny they reveal very little For many this problem exists because people donrsquot know the difference between a metric and a Key Performance Indicator

Performance metrics are measures of an organizationrsquos activities and performance Performance metrics should support a range of organizational needs in order to provide proper performance insight While traditionally many metrics are finance based ndash inwardly focusing on the performance of the organization ndash metrics may also focus on performance against customer requirements and value and also include information and performance insight into employees and processes

As mentioned a criticism of performance metrics is that many organizations choose measures that have little value In most cases this is caused by selecting what is immediately measurable even if these measurements have low value and by a tendency to ignore high-value measurements simply because they seem harder to measure

Key Performance Indicators (or KPIs) are financial and non-financial measures or metrics used to help an organization define and evaluate how successful it is typically in terms of

how it is making progress towards long-term organizational goals KPIs can be specified by answering the question lsquoWhat is really important to different stakeholders both internally and externallyrsquo KPIs differ depending on the nature of the organization and the organizationrsquos strategy They help to evaluate the progress of an organization towards its vision and long-term goals especially towards difficult to quantify knowledge-based goals You can measure a process with many metrics but only a few of those metrics are key for your organization (for example based on your business strategy andor operational improvement initiatives)

The intent of performance measurement is not just to have measurements but to have the right measurements at the right time in the right place and to make sure that those measurements drive overall performance Itrsquos key for setting a foundation for Lean and Six Sigma If there is a good performance measurement system in place that takes into consideration Key Performance Indicators or key drivers then it becomes much easier to set up the entire project

8 Problem-Solving Skills

Performance Management systems become key indicators to groups of individuals within an organization helping them to measure their own performance Without performance measurement without a good system in place they have to wait for their boss to tell them theyrsquore not doing the right

thing Performance measurement then offers a mirror or a type of feedback mechanism on how well a process is doing Problem-solving skills meanwhile provide you with the tools to do something about it

A lack of problem-solving skills can be a major stumbling block for people and organizations they may be measuring things but if theyrsquore not doing anything with the results that becomes useless Recognition is only the first step having the skills to do something about it is the second Itrsquos the critical second half to Performance Management

While problem-solving skills ndash in the manufacturing environment at least ndash have become a priority over the last 10 to 15 years theyrsquore still not ingrained into the industryrsquos DNA People coming into the workforce are coming without proper problem-solving skills and they have to learn them as they go But one problem is that information silos exist and because individuals are not seeing across those silos they miss the solution to the problem at hand Thatrsquos one barrier A second one is that people often think that problem solving is for someone else that itrsquos not part of their job description Theyrsquore not trained in problem solving they donrsquot know how

to recognize problems and identify problems and describe problems and find the root causes of problems Coming up with a structured methodology for problem solving and problem resolution is a piece thatrsquos missed across the board

This is the main reason why problems occur over and over again because people are aware that theyrsquore occurring but donrsquot know how to respond to them they donrsquot have the skill set to do so Moreover theyrsquore often not even allowed to do so because itrsquos not part of their job descriptions Or some problems might be initiated between departments which means that without a culture of collaboration things donrsquot come together

When yoursquore solving a problem it canrsquot be a random event it has to be with structured methodology Before anything a scope must be determined What is the problem How do I identify the problem How can I measure that this is a problem Whatrsquos my baseline performance Now that I know my baseline performance whatrsquos my root cause And the root cause has to correspond to drawbacks that exist in the system that are preventing you from achieving a certain objective

The number one reason why we canrsquot solve problems is that we canrsquot describe them and you can only describe a problem if you have a measurement system in place that helps you understand where you are In any environment a problem is defined as a gap in performance between where you are and where you want to be Thatrsquos it If you canrsquot describe the problem in those terms then you canrsquot solve it Many organizations will say that communication is their biggest problem and they canrsquot seem to resolve it But why not Because communication is a symptom of whatrsquos happening not the problem itself Most times people respond to symptoms and not to actual problems

Finally often when a problem occurs the first thing asked is lsquoWho is at faultrsquo But if thatrsquos the first question then the chance to resolve the issue is immediately lost Because if you ask lsquoWho is at faultrsquo everyone immediately tries to protect themselves if someone feels that they could be at blame then theyrsquore not going to come forward to try to solve the problem ndash rather their objective is going to be to protect themselves When this occurs because they donrsquot want to be at fault they might generate another piece of data to cover themselves another procedure on top of another procedure That only adds more complexity and generates more waste Which is why the first question should always be lsquoWhy did it happenrsquo instead of lsquoWho is at faultrsquo

9 Business Intelligence

You canrsquot run an organization department or process based on data that you received a month ago Which his why in todayrsquos environment information applications need to provide you with up-to-date real-time data in addition to the summarized performance information that can be used to identify potential longer-term performance issues

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Everybody within the company needs information and uses data In most cases employees are interacting with real-time information and making decisions based on historical performance The problem is people tend to want to report on everything which preoccupies employees and takes them away from their core duties Fully integrated Rich Information Applications address these issues by providing employees with real-time enterprise data using a single version of the truth delivered in a dynamic environment that allows any user to interact and modify the information to answer business questions specific to their function

10 Human Resources

Finally one of the things that also has prevented success and is sometimes a stumbling block for Lean Six Sigma deployment is the fact that the training programs that are rolled out by human resources may not be closely aligned with the companyrsquos mission

Once a company starts down the path of Lean Six Sigma the human resource systems need to change alongside it At the heart of Lean Six Sigma is a team approach reward and recognition systems need to reflect that so human resource systems will need to address it

Also critical is that team building has to occur across functional silos You have to build teams and people have to collaborate Human resource systems will drive that

Conclusion

To summarize itrsquos clear that when executed properly there are tremendous benefits associated with an integrated Lean Six Sigma Performance Management initiative Organizational Performance Management information provides strategic information and communicates progress towards a set of goals or objectives across the organization but in instances when things go wrong Performance Management alone does not provide a means to systematically and consistently address problems that arise in the business process or production realm This is where Lean Six Sigma can help assisting organizations in addressing these defects to ensure better results in the future

Norma Simons is president of Simons-White amp Associates a performance consulting company in Ann Arbor Michigan that has been in business for over 16 years and employs performance improvement systems such as Lean Six Sigma Quality Management Systems Business Operating Systems and Balanced Scorecards Certified as a quality engineer reliability engineer and a Six Sigma Black Belt Ms Simons has an MS in industrial engineeringoperations research from Wayne State University in Detroit Michigan Contact Ms Simons at nsimonssimons-whitecom or visit wwwsimons-whitecom

In instances when things go wrong Performance Management alone does not provide the means to systematically and consistently address problems that arise in the business process or production realm This is where Lean Six Sigma can help

ldquo

rdquoldquoWith the Actuate BIRT Performance Scorecard in place now we are able to communicate lsquowhat is important to the organizationrsquo across hierarchies and geographies seamlesslyhellipcause-andndasheffect maps have become the basis for all reviews and prioritization of strategic initiativesrdquo

- Gopal Sharma Senior Manager Business ExcellenceVoltas Limited Dubai

To deliver on its mission to provide high quality cost-effective project management and engineering services to customers throughout Asia Voltas

Internationalrsquos Electrical and Mechanical Division (EMD) adopted the Balanced Scorecard (BSc) as a tool for strategy deployment in 2004 The BSc was designed for EMD in line with the strategic objectives and cascaded further to all units and business heads for effective implementation The measures were tracked on a quarterly basis using Excel spreadsheets

Tracking BSc measures through spreadsheets proved to be ineffective in tracking progress on divisional performance

measures Moreover due to lack of integration the Performance Management tracking through BSc was limited to financial measures only The non-financial measures were not tracked due to lack of aggregation of data across levels and geographies This led to misalignment among various functions resulting in ineffective strategy deployment across the division

The major hurdle was ensuring the integrity of the performance data on non-financial measures hence an integrated system was required to ensure the flow and aggregation of data across all levels Also the reporting structure on various key performance indicators (KPIs) was not streamlined for effective Performance Management in the division

The situation prompted Voltas to seek automation of the Balanced Scorecard with integrated tracking and monitoring of the KPIs related to strategic objectives of the company

The SolutionA team was formed to explore more robust Performance Management tools Voltas conducted its due diligence in

Putting the Wheels Into MotionVoltas Views a Dramatic Shift Towards Transparency

Alignment and Dynamic Response

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finding an appropriate solution and in December 2007 chose the Actuate BIRT Performance Scorecard as its Balanced Scorecard solution

The software was customized in-house to the divisionrsquos needs and implemented across levels and locations The major challenges overcome during implementation were

bull Complexity of location structure and measures structure This sophistication and flexibility was a requirement to ensure the integrity and correct aggregation of the data and needed to be incorporated into the overall system

bull Aggregation of financial performance data from different countries in different currencies Led by the local support team and Actuate partner EU Partners a currency conversion facility was created to overcome this hurdle

bull Software access through smart client route at project sites A weak internet connection problem was resolved by Actuate Customer Support which installed the clientrsquos executable file on the local PC An Excel import and export tool is used for data updates to the system

About VoltasElectrical Mechanical amp HVAC Solutions (International) is part of Voltasrsquo Electro-Mechanical Projects amp Services cluster Established in 1978 as Voltas International Limited (a wholly-owned subsidiary of Voltas Limited) to handle international business interests the business looks after core business activities in the Mechanical Electrical amp Public Works (MEP) project areas specifically turnkey projects in

bull Electro-mechanical works comprising electrical building services HVAC (heating ventilation amp air conditioning) plumbing public health fire fighting ELV amp specialized systems

bull Electrical power projects

Voltas Limited a TATA enterprise offers engineering solutions for a wide spectrum of industries in areas such as heating ventilation and air conditioning refrigeration electro-mechanical projects textile machinery machine tools mining and construction equipment materials handling water management building management systems indoor air quality and chemicals EMD is one of four independent business-specific clusters within Voltas Ltd each with its own facilities for market coverage and service to customers

All of the above challenges were addressed easily to match the companyrsquos needs thanks to the versatility and customizable features in the BIRT Performance Scorecard

The initial rollout of the Performance Management system started in March 2008 with successful system deployment across all locations by the end of August 2008 The implementation involved user training on the software and BSc measures

Benefits

All business reviews are now being conducted online in the system both at the regional and corporate levels Managers can view the status of each project by just logging in as well as review and approve actions planned by the project lead without waiting for any formal performance review meetings This has led to a dramatic shift in the way Voltas manages its performance and has improved the transparency in tracking KPIs

Major benefits derived from the implementation are as follows

Solution OverviewIndustry Engineering Services

Company Size $400 million 3800 Employees

Challenges

bull Spreadsheets ineffective in tracking divisional performance

bull Non-financial measures were omitted due to data integrity issues lack of aggregation

bull Strategy unevenly deployed leading to misalignment

Solution

bull Actuate BIRT Performance Management Software Suite

bull Integration consulting services

bull Customized smart client

Benefits

bull Transparency in tracking KPIs all in one place

bull Alignment of action plans to division strategy

bull Dynamic Performance Management timely reviews

Design Stage

bull Measurement system evolution and refinement during system configuration

bull Clear consensus on KPI definitions and descriptions

bull Minimal support required during configuration and implementation

bull User training and access with individual user ID and password cementing ownership and accountability of the scorecard across hierarchies in the division

bull BIRT Scorecardrsquos ease of customization to business needs enabled instantaneous execution of required changes in the system

Rollout and Implementation

bull Strategy Map and other Cause amp Effect Maps have become highly illustrative in communicating the relevance of various measures and their integration with strategic objectives

bull Action Plans are fully aligned to divisional strategy and can be monitored online

bull Timely business reviews and dynamic communication of performance

bull All key performance indicators are tracked and available in one place business performance reports are generated as and when required

Going forward Voltas plans to roll out BIRT Scorecard access to its subsidiaries and to joint ventures in order to track the Balanced Scorecard of allied companies on the same platform The goal is to use it as a comprehensive Performance Management tool for the international operations of the entire company

Voltas has branch offices in Abu Dhabi Dubai Qatar Singapore and Kingdom of Saudi Arabia For more information on the company visit wwwvoltascom

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In todayrsquos economic climate careful decisions are needed to help

business remain competitive and to continue to succeed To stay smarter they need to build deploy and maintain business-critical reporting and information applications

Open Source Business Intelligence while it comes with its own set of technical challenges and misconceptions is often the right solution to deliver that Actuatersquos Business Intelligence Reporting Tools (BIRT) Open Source solution ndash developed with the Eclipse Foundation ndash is one example of a robust and web-centric Open Source Business Intelligence tool

The Open Source Model

An economic shift has occurred in the past decade introduced with the rise of the internet The internet provides connectivity which in turn connects demand to supply this removes the capital equation and shifts conditions in the market People with computers all over the world provide the means of conduction and with easy ways for these people to connect they can easily collaborate on projects with very little infrastructure This in turn led to the popularity of Open Source

Open Source has had many consequences for the enterprise software market primarily by making it a commodity market and by driving down price It also allows people who have a desire to do something to make money from doing it Production inputs are widely distributed and the raw materials are there to produce things in new ways Many argue that this shift has been about software licensing but actually it is largely about the production and distribution of software it is therefore a change that is more about economics that about ideology That economic base ndash the combination of connectivity of easier ways to market produce and distribute software and the fact that the internet acts as a giant copying machine ndash changes the conditions under which software can be sold That is why Open Source continues to disrupt the market and to force vendors to come up with new ways to cope with it Enterprise software is not going away rather it has been forced to shift

A 2008 survey by North Bridge Venture Partners asked Which sector of the software industry is most vulnerable to disruption by Open Source At the top of the resulting list was web publishing and content management a market thatrsquos currently highly fragmented and therefore perfect for introducing Open Source products The second sector was social software an entirely new category that has been difficult to define and difficult currently for commercial vendors to make money from again Open Source is the ideal solution

Business Intelligence was the third sector listed in the North Bridge survey Again this is understandable since BI tools and data warehousing tools are exactly that tools While end users consume the outputs theyrsquore not themselves often put into the hands of end users rather IT sets up the meta-data defines metrics etc Which means Open Source is targeted at the right audience there is a platform in a data warehouse that has multiple layers any one of which can be Open Source or

LEVE

RAG

ING

O

PEN

SO

URC

E

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proprietary Those modular boundaries make Open Source an ideal fit

What IT Looks For

IT acts ndash for the most part ndash as the gatekeeper to Business Intelligence When searching out new software IT generally looks for three things

1 Better alternatives to the status quo Specific features that are better for example

2 Ways to cut costs With commodity infrastructure in place IT has to try to drive down costs

3 Unique attributes There may be something they want to do but cannot do using their current system or features that might not be available (For example their mainstream BI package might not have web-accessible dashboarding that can be self-service)

Why Open Source

In addition to examining the sectors left vulnerable by Open Source the North Bridge Venture survey also asked What makes Open Source attractive Price was the most popular answer In addition to the capital cost of licensing Open Source drives down acquisition cost as companies no longer have to go through heavy proof of concept Itrsquos also easier to trial things and if license costs are less then maintenance costs are also less Finally unbundling maintenance support and service means that businesses can choose from a menu of services instead of being forced into a 20 percent single lump fee

The study also showed that companies found that Open Source offered freedom from vendor lock-in In addition it is flexible with easy access to commodity code in order to develop embed and build content into websites

Another 2008 study by The 451 Group gave a list of what organizations saw as benefits to Open Source once it was already introduced At that point flexibility ndash by 05 percent ndash came out over cost In this instance though the definition of flexibility was different respondents were impressed by the fact that there is no vendor that dictates when they have to upgrade how they have to upgrade and why they have to upgrade For a commercial vendor at end of life or desupporting versions of their software a sales and marketing schedule will often require a release every Q1 whether they are ready or not As a result

companies will be forced into an upgrade they donrsquot want that was released simply because marketing dictated it and not necessarily because it was ready Open Source is typically not under those same types of pressures

Buyers were also impressed by scaling costs if an organization has 50 initial licenses and pushes it out to 150 more people in BI lowered costs come in beyond the initial capital costs As well companies are not dependent on vendors for service or for additional pieces of technology

Whorsquos Adopting

Open Source Business Intelligence adopters include

bull Independent software vendors solution providers and OEMs They are taking Open Source BI and pushing it into products that need reporting and dashboards Theyrsquore beginning to build capabilities using Open Source into quality networking gear file servers and databases

bull People who have traditionally been underserved and have not been getting what they need for whatever reason They may not have had the budget or their current vendor might not offer some of the functionalities that they want Possibly it could be over-serve at least half of the features in a major BI stack today never get used

bull Developers Web developers provide information ndash especially database information ndash on their websites while internal developers have to build reporting features into applications and typically do not have access to the tools they need Tools like BusinessObjects and MicroStrategy live in a data warehouse in a different area of the organization and canrsquot be embedded easily

In terms of the organizations adopting Open Source BI many are on the small side with less than $100 million in revenue But very large organizations are just as likely to adopt Open Source solutions as well This is the inverse bell curve of Open Source BI implementation

Smaller-sized organizations have fewer data sources and more manageable data volumes are more interested in cost flow and also donrsquot have the same level of data volume and complexity that might exist in a medium-to-large organization or deployment Much more manageable data volumes less cost to scaling and fewer technology issues in terms of complexity make these ideal environments for Open Source

Open Source drives down acquisition cost as companies no longer have to go through heavy proof of concept ldquo

rdquo Large organizations though have equally ideal environments They arenrsquot for the most part introducing Open Source at an enterprise-wide level but rather have projects with specific features that need to get done The project in question may exist only within a single department which pushes down data sizes and deployment complexities making them a good target

Introducing Open Source BI

Open Source BI use often comes in at the edges and results from discontinuity An example of such a discontinuity might be a company restart many data warehouse projects started with a particular data model ndash copying a production database and putting reporting on it for example ndash and have to do a schema change At that point the cost of switching from one BI tool to another or from one ETL tool to another is fairly low Everything has to be changed anyway metrics change schemas change queries change The same is true with platforms moving from one database to another involves an integration of an entirely new set of systems These discontinuities often allow for the introduction of Open Source

New interface requirements can also lead to Open Source implementation as a company attempts to bring data-warehouse data into an application deploying it out through a website or via an application But some users may only need a few single simple production reports and donrsquot need to be served through a tool that costs between $1000 and $1500 per seat which is the average per-seat deployment cost of iTools Companies can reserve their BI tools for core individuals who need the flexibility and features and can build Open Source into applications for large-scale but simple reporting

In fact in most cases organizations donrsquot replace an entire system with Open Source That only happens in the cases of large discontinuous change where the features are good enough in an Open Source tool the deployment matches and there is no reason for pushing through a high-cost high-complexity solution Whatrsquos more likely to happen is an augmentation where a particular department ndash or a segment of users or particular class of tool ndash is given something that they need in Open Source For example a BI tool might be good and flexible with interactive reporting that can get production reports out and do the schedule but perhaps doesnrsquot have statistical features rolling out something like R to only a couple of analysts and layering that on top of the warehouse may be the solution

Augmenting and bringing in new features and capabilities in areas where Business Intelligence tools might be weak is typical of Open Source implementation This is an opportunity to augment an existing environment in a cost-effective manner to build features into that environment and to get the features specifically needed without paying for a whole package that isnrsquot all necessary

In contrast with what happens in the case of most traditional models much of the time the need for Open Source applications comes from the bottom-up and is established from a point of need from a developer or a department trying to get something done There are no enterprise sales representatives making calls or going through a procurement process where vendors and financials are examined There is also the ability to put something out in real terms instead of relying on a fake proof of concept where following that proof of concept companies are forced to either pull out and throw it away or to license the software

Roadblocks to Implementing Open Source

Misconceptions still exist around Open Source based largely on the idea that these projects are being developed by teenagers in their parentsrsquo basement a myth that is more than a decade outdated as today Open Source projects are generally run by commercial Open Source providers with paid developers Still a lack of information can prove a problem for organizations introducing Open Source This often plays out in the legal department which reviews all contracts and may not be informed when it comes to Open Source software licenses An Open Source license will be missing half the standard clauses the lawyers are used to clauses of restriction that dictate how to deploy what can be deployed where it can be deployed and how the software can be used Most Open Source licenses do not have these same clauses and lawyers will want to know why theyrsquore missing That can be another road bump in getting the software acquired

Support can also be more confusing Most major projects have commercial vendor support behind them But unbundling is also available which means buyers donrsquot have to purchase support but instead can buy the subscription model that covers only bug fixes integrated patch testing and certification against databases This is because enterprise support is often overrated more often than not internal support solves more problems than the vendor does

Augmenting and bringing in new features and capabilities in areas where BI tools might be weak is typical of Open Source implementation ldquo

rdquo

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Implementing Actuatersquos BIRT Open Source Technology

BIRT Actuatersquos Open Source technology was developed with the Eclipse Foundation and does an exceptional job in meeting web-reporting requirements while utilizing the Open Source model Itrsquos a Java tool with a web-centric development and design paradigm BIRT reports are built with the intent of publishing to the web exclusively or more exclusively than is the case with other alternatives that are typically intended originally for paper BIRT is also very modular and very component based allowing users to do as much or as little as they want to deploy as much or as little as they need when theyrsquore creating their reports or embedding this technology within their environment

One of the goals of BIRT is to cater to the power that is needed for many of todayrsquos reporting projects but also to offer the simplicity that means an individual report creator can be very effective at doing their job simply by using the BIRT design tool itself That goal has proven successful so far with 65 million downloads of BIRT since the projectrsquos inception 45 million of them in 2008 alone BIRT is in fact one of the fastest growing Open Source projects on the internet right now

BIRT does a great job of supporting a wide variety of report types it supports BRD Pro BRD BRS and IV and as users

build components throughout the project they can reuse those elements in subsequent future reports It also supports standards such as HTML cascading style sheets JavaScript Java and XML adding the underpinning technologies for either customization or enhancement and allowing developers to leverage BIRT while using the skills that theyrsquove already developed As an integrated report development environment BIRT also provides graphical and robust tools for the most common reporting tasks including query building ndash such as graphical object layout ndash and representing such as charting As well BIRT includes both online help and documentation

Itrsquos an incredibly robust tool and is capable of being embedded of being delivered to small groups or across the enterprise leveraging Actuatersquos commercial platform New capabilities include the ability to add interactive Flash objects into the environment to build personalized dashboards to create ad hoc reports and to create interactive viewing Actuate also recently introduced the JavaScript API which allows users to embed approximately a dozen lines of JavaScript into any webpage and from that access any content within the Actuate environment including any BIRT report that is hosted in that environment which in turn can be delivered to any type of JavaScript-enabled browser

BIRT is built in the Eclipse Project Actuate sponsors and chairs the project management committee for the BIRT project It is Actuatersquos third reporting technology built from scratch which means there is a high degree of long-term experience integrated into the BIRT environment

How the End User Benefits From BIRT

BIRT comes complete with 65 million sets of eyes worldwide looking at it and suggesting changes That has driven its enhancement in the marketplace The overall number of committers on BIRT historically is high and the current level of committers on the project remains high itrsquos nearly the same as Apache committers in the market today

Actuate ndash in its sponsorship of BIRT ndash has added and created a community called BIRT Exchange which is a resource for the BIRT development user to continue to enhance their BIRT expertise and to continue to gain help if needed from the BIRT community No question goes unanswered on BIRT Exchange which is at odds with what people often find in other Open Source forums where a huge number of questions remain unanswered from the audience Within the BIRT Exchange environment there are three different forum administrators who make sure every single question is answered BIRT Exchange also hosts the documentation for the entire BIRT product line as well as videos and webinars designed to further the training and adoption of BIRT itself

Actuate employs more than 50 developers on the Eclipse project itself with documentation and publications available in support of the project available at amazoncom

Actuatersquos Value Add

BIRT is modern and flexible and open Since itrsquos built within the Eclipse Project anyone who knows Eclipse knows how to use it Actuate adds interactivity which take the form of Flash widgets embedded into the BIRT development environment ndash allowing users to build their own types of dashboards ndash or through interactive viewing to transform a report from being static to something an end user can manipulate and evolve over time This is important because reports typically become obsolete quickly the requirements that they originally meet changes as users use the reports to become smarter and then the questions they want answered change Which means that providing this kind of interactive content is key to the success of a Business Intelligence project

Extending BIRT Capabilities

BIRT development tools and the BIRT engine are available as Open Source and are widely distributed Typical capabilities such as JavaScript and SQL skills are required to become familiar with the BIRT product

The second level of capability is the ability to embed BIRT within applications and to begin to add degrees of interactivity to the environment such as Flash widgets or the interactive viewer This allows a user to create robust rich embedded applications

The third level is for workgroup or departmental-style applications or small organization-type applications To adopt this type of Open Source technology individuals would introduce BIRT plus the single server iServer Express a hybrid of Open Source and commercial technology

Finally there are organizations that seek enterprise-caliber or enterprise-level deployments that want to publish BIRT applications outside the firewall to secure these applications for millions of users and to support very high degrees of performance and reliability This type of scalability requires both good design and trial and error as operating systems platforms and other elements continue to evolve Maintaining best performance for very large-scale environments means making sure that each one of these items is optimized

Open Source Vs Commercial Technology

The overall platform that BIRT delivers is a complete set of both development and deployment options for creating any type of environment Users can be characterized across a number of different lines from incredibly skilled Java developers to everyday report developers from people familiar with Actuate to those who are not from power users to business users etc

There are two fundamental questions that these users need to answer

1 Is BIRT the right technology for the application theyrsquore creating

2 Whatrsquos the best way to deploy it through Open Source or through commercial deployment means

The answer to the second question is reliant on a number of variables In the following situations for example Open Source would be the ideal alternative

bull Those users who want to use BIRT for individual use

bull Those who want to embed it into their own project

bull An ISV who has the technology in their own application to support printing and baked-in reporting needs

Converting to or supporting a commercial model meanwhile occurs most frequently at the enterprise-server level for organizations deploying the environment to hundreds or thousands of users It supports a wide variety of types of users

But both the Open Source and commercial models employ a common report design format Itrsquos a progressive development experience or a collaborative report design and collaborative process allowing each user to participate in the definition and the evolution of their reporting environment while at the same time using tools that are appropriate for their skills a novice user isnrsquot being overwhelmed by too many features while the power user or the highly skilled users receive exactly the right kind of technology and level of development capabilities theyrsquore accustomed to

Yet some of the decision-making criteria lean more effectively towards a do-it-yourself situation using the Open Source type

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of model and some lean more appropriately to a commercial investment and a commercial tool A growing level of complexity often drives commercial interest but certain complex functionalities ndash including supporting web services or web services SQL or other examples of integration techniques ndash the Open Source model is more than capable of supporting on its own

The applications Actuate deploys are information applications When choosing the paths of how to proceed ndash with regards to choosing either the Open Source or commercial interest ndash there are typically four premises to consider in an information application

1 Is the report or the application able to consume and collect data from one or many sources whether itrsquos a single report or a complex application Typically when the data sources are simple and the data connections well understood either Open Source or commercial interests are appropriate With meta-data layers and extraction layers the commercial model tends to be more effective But if itrsquos an embedded project using POJOs or other Open Source or specialty connectors ndash unique connectors ndash that often keeps a project more suited for an Open Source deployment

2 How is it able to aggregate and transform that data into meaningful information Looking at aggregation the same premise holds true if therersquos simple aggregate functions or automatic cross tabs or even custom or reuseable business functions both the Open Source and commercial models are appropriate In terms of embedded Java functions those aggregations are appropriate in either case Itrsquos when entering into areas of security ndash of parameter-driven values dynamic-parameter collection cascading menus etc ndash that a commercial purchase tends to excel over the Open Source version

3 What are the presentation options or formats available to present that data When the presentationrsquos fairly simple both Open Source and commercial apply When

charting cross tabs and embedded graphics are the norm then the two are served both in Open Source or commercial interests When JavaScript is starting to be used as a customization or a dynamic-properties delivery vehicle both the Open Source and commercial models are effective although keeping this content embedded within an environment is probably more appropriate using Open Source Itrsquos only when introducing elements such as interactive viewing capability or the ability to manage an environment through a management console capability that the commercial option begins to edge out

4 Are we able to achieve the levels of scale that we need to get that information out to every user whorsquos interested in it When individual use is appropriate Open Source is a better fit When transient content is what a company is delivering thatrsquos usually a better fit with Open Source as well as is embedding To support a collaborative reporting effect or to support a variety of developers and users ndash especially users with different skills ndash the shift begins to move towards a commercial style of delivery When therersquos custom delivery required such as JavaScript API the commercial environment is also more appropriate

These are the capabilities of different deployment options for both the Open Source platform as well as the Actuate commercial platform geared towards allowing organizations to get the value that they most see fit within their environment or their application Typically for environments that have a heavy requirement for infrastructure thatrsquos what drives the commercial purchase whereas customization or individual interests typically drive Open Source

The key thing for any organization is to first decide what kind of reporting technology they need ndash whether it be Open Source or commercial ndash and then to look at their own needs And finally consider the BIRT environment as a vehicle that meets web reporting needs

For more information on BIRT visit actuatecom

A growing level of complexity often drives commercial interest but certain complex functionalities ndash including supporting web service or web service SQL or other examples of integration techniques ndash the Open Source model is more than capable of supporting on its own

ldquordquo

One of the benefits of Actuatersquos Business Intelligence Reporting Tools (BIRT) is that very capability for flexible functionality thatrsquos adjustable to usersrsquo needs Every component of the BIRT technology ndash whether in the Open Source or commercial versions ndash builds upon the components before it creating a robust and flexible system designed to meet each organizationrsquos unique Business Intelligence needs

Choose the Right Graphical ToolThe first step towards evolving organizational Business Intelligence is choosing the right graphical tool The Eclipse BIRT technology for one is a visual designer thatrsquos geared at report developers as well as JavaScript and Java developers and can create a wide range of reporting technologies and web reports BIRT builds content that is specifically intended for the web and uses techniques that are expected when building web pages and web content It doesnrsquot use a banded report writer design or development metaphor typical of many older report-authoring products including Crystal Reports or Jasper

BIRT is the third from-scratch product that Actuate has sponsored and developed and as such it takes into account more modern capabilities and techniques for developing web content In building BIRT Actuate has drawn from its extensive market knowledge borrowing best concepts from other products as well as from its own Reusability and the ability to include programmability within the environment have been traditional Actuate capabilities that have been included in BIRT but BIRT technology also uses de-facto standard programming capabilities such as embedding JavaScript and Java into the application rather than using a proprietary language

Open Source is the core reporting capability and value-added commercial products can be added to it More than 50 developers are employed by Actuate on the BIRT Open Source project similar to the number of developers Apache has applied to the Apache project Alongside these Open Source developers are Actuate developers working on the commercial product of BIRT

Open Source BI

Cost-Effectively Deploying

When deploying Open Source Business Intelligence technologies multi-layered functionality that can be added as needed serves to create a cost-effective way to build a solution specific to an organizationrsquos needs Each function acts as a building block as a company creates exactly the capabilities necessary for the job on hand without wasting money and resources on items that arenrsquot needed

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Another benefit of BIRT is the BIRT Exchange community Actuatersquos user forum which is far more robust and extensive with documentation and help information than has been found traditionally Nearly every forum post has an answer to it in some form which is not likely to be experienced with any other Open Source project or forum-based community Meanwhile the community itself is vast and growing rapidly Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate ndash where a developer may have downloaded 20 copies over its history ndash adds up to 350000 different users of BIRT technology That number is growing at roughly double the rate of the other two most popular Open Source projects

Add Value Through Features

Actuate BIRT technology has a range of features that will add value to a companyrsquos BI project

1 In addition to being a graphical report design tool BIRT takes into account the long-standing tradition of Actuate to support reuse libraries and reusability across the entire environment It is able to not only reuse BIRT objects and BIRT components ndash such as charts and tables ndash but also to incorporate and use JavaScript objects and Java libraries in the reports themselves This creates a rich experience for driving and building web-oriented reports

2 BIRT offers navigability While a user is in a graphical design tool they should be able to take advantage of some of the core capabilities that the technology offers such as a visual hyperlink builder that keeps information in context as well as the ability to create cross tabs dashboards and charting mechanisms that are active and navigable Inserting type of content ndash so that it is both consumable and scoped in context for the user ndash is important to the success of deployment Hyperlinking in context is one of the key elements to supporting Open Source deployments

3 The Eclipse BIRT environment supports a variety of graphical types or charting types including not only grids and tables but both static and dynamic images as well that can be linked back to databases or can support conditional formatting and a variety of conditions baked into the report BIRT is able to handle a large variety of chart types and styles allowing organizations to convey exactly what theyrsquore trying to deliver to their users Supporting rich charting is one of BIRTrsquos key core capabilities

4 The Open Source Eclipse engine can be embedded into or deployed from an application quickly within a JVM Users can add content generation or report generation functionality easily and quickly to their application by inserting it into their run time The BIRT engine itself is a key component in the Eclipse BIRT project It has a variety of extension points built into it which means itrsquos able to not only generate supported output types ndash such as HTML or Adobe PDF ndash but can also create custom emissions from a BIRT report such as an emitter for mobile content or an emitter for a particular report format of the userrsquos own perhaps to feed another application With a robust API structure within the Eclipse BIRT engine these are all possible

Build On Interactivity for a Richer Experience

Building onto that BIRT experience organizations can add more interactive and visual elements to create more appeal within their BI projects

Animated Flash Visuals Animated Flash visuals built into BIRT reports lend to a richer more enjoyable experience for end users They can take advantage of the navigation enhanced with the visual and animated appeal that Adobe Flash offers

The Actuate BIRT development tools include 266 Flash widgets This is one feature that differentiates BIRT Open Source with the BIRT commercial product Those who purchase the development tools from Actuate will immediately receive these Flash objects that can be deployed not only within Actuate BIRT reports but within Eclipse BIRT reports as well they are portable across both environments

Interactive Viewing Often users have a difficult time articulating their requirements to report authors That problem is alleviated when authors can deliver them an interactive viewing experience allowing the report to become changeable and adjustable by the user The user can select a particular column and can apply a filter to that column they can toggle back and forth between viewing perspectives rotate charts change the grouping of a report or add more visualization to it with something such as conditional formatting They could even navigate within the report using a joystick or deploy that report or portlet content anywhere they want And ultimately they could drag and drop and change ndash or add columns to the report directly ndash by manipulating the report as needed

This interactivity gives the end user the ability to enjoy more freedom with regards to how they use the report It also

addresses one of the biggest conundrums with regards to report delivery giving users a report provides them with content that makes them smarter and as they get smarter they take that information and they work it into their knowledge which in turn changes the questions that they ask of the report This means that what they need from a report changes over time Allowing users to modify reports themselves is a key goal in supporting BI processes because as users become smarter about what theyrsquore doing with their content they can help assist in defining what the next iterations of their web content might be

Choose the RIght Server to Store and Schedule Content

Actuate has spent the last 15 years developing the Actuate iServer It comes in two styles ndash iServer Enterprise and iServer Express ndash and offers a robust environment for creating managing and delivering BIRT report content to users on schedule on demand or on an ad-hoc basis directly

The iServer Express is a single-server deployment that is appropriate in scenarios where there is less active usage it supports a sequential batch generation capability and roughly 10 user connections per second as the users connect to the server It offers that scheduling and deployment capability at a very cost-effective price point while allowing organizations to secure their report content using the iServer repository to take advantage of some of the presentation layer capabilities that Actuate offers through its information console to present and manage that content on behalf of the users and ultimately to create a full reporting experience for users directly

Alternatively for those deploying a very large system ndash perhaps one that operates outside of the firewall in a traditional web information application ndash there is the iServer Enterprise The iServer Enterprise is massively scaleable but also very predictably scaleable as companies double the resources that they can apply to their environment they double the throughput and user numbers that theyrsquore able to support with the iServer It is also highly configurable in regards to how content is deployed and supports multi-tenet environments or multiple application environments In addition it can be componentized so that a presentation layer can be separated from a content creation layer or a business logic layer from a data management layer ndash including the meta-data layer itself ndash to help abstract and manage the queries driven

Determine Where Content Can Be Distributed

Actuate JavaScript API is a mechanism that allows the user to take a JavaScript library embed it into any HTML page and then from that JavaScript library securely access Actuate content from the iServer This particular capability allows the user to put either a report part ndash a reportlet ndash or an entire report directly into new locations This could be used as a user attraction vehicle it could be used as a dashboarding vehicle or it could be an integration point for systems that are written in NET rather than in the j2e environments that BIRT typically supports

Deliver Mash-Up Applications

Delivering mash-up applications using all of the functionalities listed above is simple in the BIRT technology and lets users themselves participate in the definition saving creation and management of their own dashboard displays and it allows them to watch exactly the KPIs that they care about

This is done through Actuatersquos Mashboard Customization to the Information Console which allows users to take any BIRT report content and to deploy it directly into a mash-up style environment where they can define exactly what pieces of content go into their application and what doesnrsquot These dashboards can also be roll-based so that particular pieces of content can be deployed to particular types of users directly then if they want to continue to customize that capability theyrsquore able to do so

Conclusion

Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques such as Flash and Ajax in a web-based design metaphor It is designed to evolve effectively over time and is meant to give organizations a choice for every type of user The first decision point of any organization is to recognize whether or not BIRT is the right reporting technology for the information application in question Once thatrsquos decided companies must choose the technologies they want to offer each type of user and then consider how they want to deploy those technologies directly

A wide variety of capabilities can be build into the BIRT environment ranging from Open Source to commercial Actuate products It is a flexible environment and is robust for delivering to users any type of information-driven web content

Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate adds up to 350000 different users of BIRT technology ldquo

rdquo Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques ldquo

rdquo

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The Challenge

Guiding a ship requires visibility into navigation operational performance and up-to-date information to make decisions This type of customer challenge drove ABS Nautical Systems

to incorporate Actuatersquos BIRT technology into its NS5 fleet management software

A leading software provider to the maritime industry ABS and its NS5 modular ERP system help customers manage principal operating expenses associated with vessels and offshore rigs ABS provided basic scheduled reporting and offered ad hoc reports in response to specific customer requests but customers demanded better functionality including the ability to easily extract and create both standard and custom reports

Producing reports to customersrsquo satisfaction took time as reporting was not central to ABS Nautical Systemsrsquo expertise Further it took valuable programmer time away from developing new features and functions for its core product This created the need for ABS to leverage a tool to provide highly-developed rich information application functionality increasing the power of its fleet management software while enabling its customers to access more flexible reporting tools

The Solution

With its own expertise in Java development and their existing reporting ABS searched for an Open Source reporting platformtool that they could leverage and seamlessly embed in their software ndash one that would deliver for ABS and their customers both immediately and for future expansion After considering Jaspersoft Actuate and Pentaho ABS selected Actuate and BIRT for their on-demand reporting solution

ldquoActuate has a clear roadmap and direction scalable platform financial stability and Open Source development platform The Actuate offering was an excellent fit because the technology

ABS Nautical Systems (NS) is one of the leading providers of fleet management software packages available to the

marine and offshore industries It offers a fully integrated modular approach to managing the principal operational expenses associated with a vessel or offshore rig ranging from maintenance and repair to regulatory requirements purchasing and inventory and crew management and payroll

SAFE AT SEAABS Nautical Systems A Case Study

ldquoBoth the technology roadmap and scaling are key It was an excellent fit for us actually ndash you had the right technology yoursquore Open Source based BIRT technology was key and you were the most helpful in helping us do the prototyperdquo

- Sandipan Bhattacharya ABS Nautical Systems

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used Open Source BIRT allowing us great flexibility in developing NS5 Actuate was most supportive in helping ABS NS do the prototype ndash both their Professional Services as well as the account teamrdquo states Sandipan Bhattacharya CTO for ABS NS

The new BIRT-based on-demand reporting tool within ABS NS5 is a web-based application that enables clients to quickly and easily generate custom reports from any NS5 module It handles reporting for the central elements of operational management ndash from regulatory requirements to payroll to planned maintenance programs But it takes NS5 beyond operational duties to consolidate data from across software modules to better monitor key performance indicators (KPIs) such as time to repair spare parts turnover and purchasing cycle times

The interactive information views that BIRT provides help fleet managers to achieve maximum efficiency empowering NS5 software users to get what they want in terms of the reports they need in the way they want them as each department or company may want to look at data in a different way Lastly that same data is more accurate because it comes as near real-time information at the time they need and can be benchmarked against how well they are performing to provide trends for evaluation

BenefitsResults

bull Speed time to market with new features by focusing on core competence in its software platform This allows ABS to focus development on its core product and improve customer satisfaction by rolling out and providing complete reporting modules This also helps decrease development expenses and support costs

bull Expand available market with completely new product lines enabling ABS to increase its client base to companies that didnrsquot know about them or had previously disregarded their offering The additional modules make the product more attractive to existing clients creating additional revenue sources for ABS

ldquoThe BIRT Open Source platform allows for a great deal of flexibility in the development stages Additionally the ease of integration into our OEM package was a great benefit Lastly the Actuate and BIRT offering has proved to be well suited to ABS Nautical Systemsrsquo needs and Actuatersquos roadmap shows what we can do in the futurerdquo states Bhattacharya

Self-serve customization drives flexibility and ease of creating reports BIRT empowers users to produce reports customized to their individual and departmental needs and preferences And as government reporting requirements change they can

Solution OverviewCompany Profile Integrated fleet management software for marine industries

Industry Software

Location Houston with offices worldwide

Challenges

bull Customer need for better more timely reports

bull Enable customers to self-serve for ad hoc needs and regulatory requirements

bull Focus on core software expertise and feature requests

Solution Integrate Actuatersquos Open Source-based BIRT reporting with ABSrsquo NS5 fleet management software

Business Benefits

bull Faster time to market broadened portfolio

bull Ease of integration development flexibility

bull Increased visibility into operations aids customer competitiveness efficiency

bull Users empowered to customize reports

Does your companyrsquos mission and vision statement place the customer at the center of your universe

Does it promise to maximize customer value and deliver the best customer experience possible If it does your mission and vision statement is surprisingly similar to nearly every other organization And much like them chances are your organization is struggling to make this vision a reality to actually reinvent itself as truly customer-centric

ldquoCustomer-centricrdquo has become the new buzz phrase thrown about at most executive planning sessions and has replaced ldquoinnovativerdquo as the new mandatory strategic language The truth is it takes a lot more to become customer-centric than changing the company vision ndash it requires a departure from years of tradition a clear look at who and what your organization is and a deeper understanding of what motivates your customers to buy from you or from your competitor Fortunately the cost to make this change is surprisingly low while the benefits and the returns can be shockingly high

Finding Your Customer

Customer-centric implies that the customer is central to the organization but this is too esoteric to have any real meaning An organization turns materials into a product or service which is then sold Everything the organization does must lead to this

event (with no sale after all therersquos no customer) This logic works for most people and most organizations and it logically follows that the focus should be upon the creation of the best possible product or service because this is what causes a prospect to become an actual customer

This logic fits nicely with traditional thinking It was popularized by Michael Porterrsquos value chain approach in the mid-80s The value chain is a string of critical processes that begins with raw materials or inputs and ends with a product or service delivered to a happy customer Thinking this way makes sense because it is easy to place the customer at the end of the process But this mind-set doesnrsquot just affect how executives structure the organization it weaves its way into every aspect of how the organization manages itself and how managers make decisions

For example the finance department performs the close process each month so that it can deliver financial information to managers with actual bottom-line responsibility These managers from executives to cost center managers are financersquos customers just as shareholders are when they deliver quarterly reports Once these reports are delivered finance goes back to the business of accounting and managing revenue and expense until the next month Engineers work to design new products that will keep them one step ahead of their competition Manufacturing produces goods to meet customer

respond more quickly adapting them by themselves instead of depending on ABS to supply reports

ldquoActuate empowers users to get exactly the reports they need the way they want them Empowerment is key as well as flexibility as each department or company may want to look at data in a different wayrdquo states Bhattacharya

Rich information drives efficiency through increased visibility and better insight into operations improving customer competitiveness With highly accurate real-time information on how well they are performing management can control both overall and specific costs of operating and maintaining their shipping fleets ldquoThey donrsquot have to wait hellip they can see all contributing factors day to day It helps improve efficiency at every level For the first time a shiprsquos captain can have insight into the operational performance of his ship while still at seardquo says Bhattacharya

Creating the Customer-Centric

OrganizationFinding Your Customer-Critical Path

By David F GiannettoCEO

The Telos Group

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orders or demand projections The sales department courts potential buyers so that they become actual customers Once they do so sales then returns to identify new targets and tries to transition them Manufacturing works to refill shelves Engineering continues developing products

Employees throughout the organization are focused upon delivering the product or service for which they are responsible The product attributes become the value proposition that will appeal to their customer regardless of whether or not this is an internal or external customer Employees are trained to think in terms of product development delivery and value The organization becomes even if it doesnrsquot know it product centric Believing that a mainstream management theory such as the value chain approach could not be wrong or outdated management is comfortable with this view of their world When they try to become customer-centric they do not know how

Making the Change

Consider for example the electricity powering the light by which you are reading this article It is a fairly simple product that was mainstreamed decades ago and except for new types of power generation it has remained essentially unchanged The traditional value chain for this industry is fairly straightforward Power is generated by a complex and often dangerous power plant and it is delivered to the customer via a complicated and often dangerous network The customer then consumes this power and must pay for it creating the

need for back-office operations such as accounting finance and customer service

Given the complexity of power generation and delivery operations the organization is staffed by a high percentage of engineers many with doctorate degrees and years of specialized training The generation and delivery assets themselves are maintained by highly-trained highly-specialized workers A large percentage of the management team also comes from this background and rose through the ranks of organizations identically structured Combined these employees represent over 75 percent of the organization

Collectively these employees create a culture that is consistent in almost every power utility in the world Their cultures respect academic achievement technical expertise and years of experience in the industry They typically believe in rigid structures inflexible procedures and consistency in design and execution They are truly product focused

Given the potential hazards it is easy to see why they behave the way they do But what happens when this type of organization has to compete in a more open market when transparency is increased or when the customer such as a municipality has a stronger voice or is under the growing influence of being green What happens when the power company must become truly customer-centric

It is nearly impossible for them to succeed Seventy-five percent of the organization has little to do with or has little understanding of the customer

Departing from Tradition

While this product focus is exaggerated within a power utility largely because of their technical nature these factors affect nearly every organization Employees who have great influence within the organization will not yield it to those who have less but who understand the customer better Funding is unlikely to shift from traditionally respected areas to those areas that most affect the customer

For a power utility this means that engineers who have often dedicated their entire lives to the study of their work must be considered equal to project managers and customer service agents most of who do not hold any degrees Money resources and staffing must focus on project management and call center technology not just on million- or billion-dollar assets There must be recognition that these areas equally affect the customer This new perspective must be executed by executives who have spent their entire careers adhering to the traditional values of the product-centric culture But this shift is what customer-centric really means truly understanding and meeting your customersrsquo needs It starts with the customer more specifically it starts with a prospect

Customer-Critical Path

This means that the traditional value chain must be rethought and renamed more appropriately to the customer-critical path A prospect travels this path on their journey to become a customer a customer travels this path toward the goal of becoming a happy customer This is the true value chain of the organization ndash a string of processes that become critical because they directly affect your customer regardless of the product service organizational chart academic degree or bias Find the customer-critical path and you can guide your customers through your organization in the way that is most meaningful to both them and you

But not all customer needs are the same even within an industry that has only one real product like a power utility The customer-critical path may start in several places meeting the needs of

several different types of customers ndash household customers that simply need power turned on or major projects that require significant project management and pre-planning Eventually these starting paths merge It will occur at the point at which all customers are happy From there they may take a different path

again some will terminate service or have new needs There is not one value chain there are many paths a customer might travel through your organization

This new approach offers significant value for organizations that adopt it It allows them to better understand their customers so that they can be more effectively segmented and targeted by products or services This drives the bottom line in several ways A stronger value proposition increases appeal thus driving revenue Better service and customer interaction improve the customer experience and increase customer loyalty driving customer lifetime value

The customer-critical path also becomes a vital decision-making tool for management It provides a clear and unbiased perspective on where resources should and should not be spent It defines the relative worth of projects assets and expenditures painting a clear picture of what the results will be if the customer-critical path is not

properly maintained

And if your mission and vision statement says you are customer-centric it makes your strategic plan more than simple semantics It makes it actionable setting your organization on a path towards true differentiation and market leadership Properly crafted the customer-critical path becomes a pleasant stroll through the park for your customers and it can also become the most profitable path for your organization

David F Giannetto is CEO of The Telos Group co-author of The Performance Power Grid The Proven Method to Create and Sustain Superior

Organizational Performance (J Wiley amp Sons 2006) and a professor in the Executive MBA program of Rutgers University

Mr Giannetto can be reached by email at dgiannettotelosconsultingcom

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I Introduction and Background

Who the NMDP is

The National Marrow Donor Programreg (NMDP) and Be The Match FoundationSM are non-profit organizations dedicated to creating an opportunity for all patients to receive the bone marrow or umbilical cord blood transplant they need when they need it Every year thousands of people of

all ages are diagnosed with leukemia and other life-threatening diseases Many of them will die unless they get a bone marrow or cord blood transplant from a matching donor Seventy percent of people do not have a matching donor in their family and depend on the Be The Match RegistrySM to find a match to save their life

The Beginning

When their 10-year-old daughter Laura was diagnosed with leukemia Robert Graves DVM and his wife Sherry were ready to do anything they could to save her They agreed to try a bone marrow transplant from an unrelated donor ndash the first ever for a leukemia patient Laura received her transplant in 1979 at the Fred Hutchinson Cancer Research Center The treatment gave her an extra year and a half of life

The National Bone Marrow

Donor Program

The Balanced ScorecardVision into

Action JourneyBy Howard Rohm

President amp CEO Balanced Scorecard Institute under the guidance of The National Marrow Donation

Programrsquos Michael Boo Chief Strategy Officerand John Rudrud Senior Analyst

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The experience inspired Dr Graves to create a national registry of volunteers willing to donate marrow His early efforts brought together other patient families and transplant doctors spurring a federal mandate that led to the creation of the National Marrow Donor Program NMDP began connecting patients with unrelated donors in 1987 with a registry of just 10000 volunteers

What the NMDP Does

The Be The Match Registry has grown to more than seven million donors and over 150000 cord blood units the largest and most racially and ethnically diverse registry of its kind in the world Medical advances are making marrow and umbilical cord blood transplants available to more patients all the time Since 1987 NMDP has arranged for more than 35000 transplants to give patients a second chance at life Today NMDP facilitates more than 4300 transplants a year

Planning for the Future

Many more patients still need help In order to meet the needs of all patients NMDP will need to facilitate 10000 transplants per year by 2015 That is more than double the number of transplants the organization facilitates today NMDP is working to meet this need but canrsquot do it alone Efforts are sustained by

bull A global network of more than 490 leading hospitals blood centers cord blood banks and laboratories

bull Agreements with donor centers cooperative donor registries and cord blood banks worldwide through which the program provides patients access to more than 12 million donors and 300000 cord blood units

bull Continued support from the US government which has entrusted the NMDP to operate the CW Bill Young Cell Transplantation Program the federal program supporting bone marrow and cord blood donation and transplantation

bull Partnerships with corporations service organizations student groups faith-based communities and other organizations

A new and different way of thinking about the NMDPrsquos long-term strategy was required in order to make sure that NMDP would be capable of delivering 10000 transplants per year in 2015 ldquoBusiness as usualrdquo would not get the organization where it needed to be NMDP needed to identify and

aggressively improve in strategic areas critical to the delivery of 10000 transplants

II The Balanced Scorecard Approach

Background

The strategic planning system that had been used at NMDP up to 2007 was a fairly well-developed planning process that tracked initiative performance under seven primary areas of strategic focus While this approach provided a measure of strategic planning for the organization it was too focused on activities and projects rather than on impacts

Early in 2007 NMDP leaders Gordon Bryan Chief Financial Officer and Michael Boo Chief Strategy Officer began developing strategic metrics designed to identify measure and communicate progress in strategic plan objective areas

Selection

As the senior management team evaluated options to integrate broader strategic metrics with the existing strategic business plan the Balanced Scorecard approach emerged as a leading candidate during the initial assessment of planning models because it

bullEncourages development of strategic themes and provides the ability to focus on areas where long-term continuous improvement is needed

bullPermits identification of cause-and-effect relationships between Strategic Objectives within each Theme

bull Facilitates communication of Strategic Objectives that can be portrayed on a strategy map that is easily understood by all employees and stakeholders and shows how the perspectives work together to achieve the mission

bull Assures that the organization focuses on Strategic Objectives and Measures from a CustomerStakeholder perspective and a PeopleKnowledgeTechnology perspective (Historically the organizationrsquos focus was skewed toward the Process and Financial perspectives)

bull Enables leadership to track Strategic Objective performance over the long term rather than tracking the status of supporting projects and initiatives

bull Creates a framework for prioritization of projects initiatives and funding opportunities based on contribution to and support of the Strategic Objectives

bull Allows organizational Strategic Objectives to be cascaded into Department Objectives thereby giving each employee

a more specific understanding of how his or her work impacts and contributes to the Strategic Objectives

bull Drives long-term continuous improvement as Strategic Measures improve over time

bull Facilitates a ldquolearning organizationrdquo where corrective actions are implemented in cases where Strategic or Department Objective Measures are not being met

The NMDP planning team looked at a number of planning models ndash including Balanced Scorecard Six Sigma Lean and TQM ndash and concluded that the Balanced Scorecard approach provided the most versatile and relevant framework for future growth and organizational development

III Scorecard Development ndash NMDP Officer Input

Early to mid 2007 NMDP began the Balanced Scorecard development effort with the help of consultants from the Balanced Scorecard Institute

A comprehensive review of the organizationrsquos strengths weaknesses opportunities and threats organizational pains organization enablers vision and mission was conducted over several days with NMDP officers and senior management These sessions produced a new Mission and Vision Statement and four Strategic Themes (rather than the original seven)

The former mission statement Extend and improve life through innovative cellular transplant therapies was changed to We save lives through cellular transplantation ndash science service and support

ldquoThis new mission statement captures and communicates more directly why we exist and it clearly articulates the three ways that we are able to save livesrdquo explained NMDP CEO Dr Jeffrey Chell

The Overarching Strategic Result in place of a vision statement was developed and shared with employees throughout the organization Meeting the need for 10000 transplants per year by 2015 The senior management team developed a longer more descriptive version of this statement but felt that the shorter version had more impact

ldquoWersquove found that the Overarching Strategic Result has been a great tool to get people thinking about how we will manage

to do more than double our current transplant volumes in a relatively short time ndash just five years from nowrdquo explained initiative sponsor Michael Boo ldquoThis has driven a lot of creative thinking around how to dramatically improve the efficiencies and cost effectiveness of many internal systems and delivery processesrdquo

The four Strategic themes that the NMDP officer group developed and agreed upon are

bull Global Access and Acceptance ndash Getting to Yes Overcome non-cell source barriers to transplant (eg no insurance no transportation no post-transplant support)

bull Deliver Excellent Stakeholder Experience Overcome Cell Source Barriers (making sure a cell source donation is available when itrsquos needed ndash adult or cord)

bull Research Pursue research to improve cell transplantation as a therapy

bull Culture of Excellence Keep up-to-date with talent structure and resources needed to continually improve transplant services

IV Scorecard Development ndash Senior Management

Throughout the spring and summer of 2007 four Theme Teams comprised of senior management met to develop

Theme Team strategy maps that included Theme Objectives by Perspective and proposed Measures for each Theme Objective These served as detailed roadmaps with specific objective areas identified ndash where NMDP needed to focus in order to improve them

The four Theme Team maps were subsequently

combined into an NMDP Strategy Map that included all relevant components from each theme This NMDP Strategy Map is comprised of 13 Strategic Objectives 46 Strategic Measures and seven Strategic Initiatives

Narratives were captured regarding the intent and ultimate end state for each Strategic Objective and detailed descriptions were created for measurement information including rational frequency owner and unit of measure

At this stage in the process the team named the Balanced Scorecard tool ldquoVision into Actionrdquo or ViA ndash NMDPrsquos strategic Performance Management tool On June 1 2007 the ViA Themes and NMDP Strategy Map details were presented to the board of directors by senior management and approved along with a plan to proceed to the next phase of department cascading

A ViA Communications Team was formed to communicate ViA progress to employees on the development of the new Mission Statement Vision Statement and the 13 Strategic Objectives This was done through a combination of pulse checks newsletters

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intranet messaging e-mails from the CEO leadership training all-staff meetings and promotional contests This was an extremely integral step in the ViA roll-out that provided transparency and generated excitement around the benefits of ViA

V ViA Department Cascading

All departments at the NMDP were scheduled for sessions to develop their department Objectives Measures and Initiatives These were facilitated by internal subject matter experts and included an initial two-day exercise to help the department identify where and how each department contributed to the NMDP Strategic Objectives Worksheets and other preparation material were provided to each participant and collected prior to the cascade session The pre-work information was used to expedite the affinity exercises at each session

These were followed up with sessions to finalize detailed measures with individual measure owners Department teams were comprised of five to 10 key members of each department

The department cascading efforts provided a number of primary benefits to the organization including

bull The articulation in easy-to-understand terms of how each department contributes to the overall success of the Strategic Objectives and ultimately the NMDP Mission

bull A tool to identify gaps or overlaps between departments that can also be a tool for departments to communicate with each other in terms of supporting initiatives

bull A tool for each department to prioritize initiatives and activities Also it provided a mechanism to support requests for funding new opportunities

bull A clear framework for corrective action where measures are not being successfully met

bull A common format and mechanism for reporting department performance to officers and senior management

bull A common format and mechanism for reporting and reviewing department performance with staff

bull Help with the development of individual job performance appraisal content ndash which should be designed to support Department Objectives

Department Cascading was complete in early 2009 There are over 200 separate department measures that are tracked each quarter

VI NMDP ViA Today

NMDP has established a department Champions Council Members of the Council are becoming experts at using the automated ViA software Today this is being used at department staff meetings to facilitate discussion around corrective action for underperforming or unacceptable Department Measures Departments use the department Strategy Maps to guide staff meeting discussions on performance measures and corrective action plans

ldquoAll business cases or requests for funding must be submitted with clear tangible descriptions of how the effort will impact ViA Strategic Objectivesrdquo explained Boo ldquoOnce all business cases have been submitted to the officer group for final approval they are prioritized in order of their impact on ViA Strategic Objectivesrdquo

All strategic and department measures are required to be reported into the ViA system each quarter Each is color coded based on an officer-approved target matrix Each measure owner is required to provide comments regarding the measure performance for the quarter and discuss how he or she expects the measure to end the fiscal year This information is shared with senior management for review and follow-up with measure owners ifwhen necessary

Senior management uses the color-coded NMDP Strategic Map as a basis for discussing quarterly performance and identifying

Strategic Objective areas that may need attention corrective action andor more resources NMDP tries to focus not only on corrective action items but also highlight success stories where outstanding performance has been reported

All employees will soon have access to the web-based ViA application to provide as much transparency and visibility as possible in order to become a truly strategy-focused organization

ldquoVision into Action has been successful within the organization to a great extent because of the consistent support and guidance provided by NMDP leadership including our CEO Dr Jeffrey Chell my fellow Officers and the Board of Directorsrdquo said Boo

Howard Rohm President and CEO of the Balanced Scorecard Institute is a Performance Management trainer consultant and technologist with over 40 years experience Mr Rohm has helped dozens of organizations worldwide build Balanced Scorecard and other performance planning and management systems

48

Pe

rform

Mag

azine

Info

rmatio

n in

Actio

n

A community for BIRT users and developers sponsored by Actuate

A Report Writing Portal lets your end users browse reports modify them and even develop

new ones You can set one up in three steps when you use AJAX-based BIRT technology

Because the end user tools to modify and create reports are AJAX-based therersquos no desktop

software to install Users get the reports they need quicker while the burden on development

resources to create new reports is reduced

BIRT Exchange is a community site that offers the broadest collection of resources for the Eclipse BIRT (Business Intelligence

and Reporting Tools) project and for integrating spreadsheets with Java The site is sponsored by Actuate a co-leader of the BIRT project

Sponsored by

See a Demo

at Booth

602

For More Information

Contact us by phone at 1-800-884-8665

1-913-851-5300 from outside of the United States

wwwbirt-exchangecom wwwactuatecom

40

Perform M

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41

Vol 6 Issue 2 2009

JCIrsquos previous approach of one-off negotiating as well as its spirit of continuous improvement and customer focus meant that it had only one-off measures in every location The company for example had 127 variations of the measure lsquomaintenance managementrsquo Many were very similar but since they were not exactly the same they could not be compared effectively Inefficiency at gathering and maintaining data at different locations across the globe made the task difficult as well Data was collected any way possible thrown into a cell or a Power Point slide and handed in at the end of the month It was highly inefficient extremely customized at every location and did not allow any ability to benchmark compare or look at best practices These concerns and requirements drove JCI on its scorecarding journey

The Solution

In initiating its scorecarding solution JCI first had to establish the right measures Business leaders were chosen for all of the scorecard categories and for each of them a business owner was selected for each region these business leaders and owners were responsible for defining the standards and measures Data collection systems in some cases proved difficult there wasnrsquot always centralized information available ndash in some cases data needed to be gathered right down at the account level This meant that the process of data collection and identifying measures was a significant job To get started though JCIrsquos web programmers were able to put up some scorecards quickly to allow the company to start architecting measures this allowed business leaders across the globe to start identifying their measures and to put the processes in place regionally to collect information

Before committing to a technology JCI wanted to know 100 percent of their business requirements and this was the point of their web-based scorecard To assist in this endeavor Actuate ndash prior to selection ndash let the company test drive their product The JCI team went through and looked at every single screen determining where they had to configure the tool and for every single screen they also made what they called a lsquoblueprintrsquo creating an Excel template with fields to correspond with every field on each screen It was incredibly detailed work but they wanted to ensure no mistakes were made and that the business requirements were defined To accomplish this there was an extreme amount of detailed coordination globally with twice-weekly meetings for the worldwide team in charge of the initiative A byproduct of the process was that the team learned to use the Actuate BIRT Performance Scorecard and basically built all of the blueprints for the project design

JCIrsquos audience for the project upon kick off were the 300 external customers that would have access to this information Customers previous to this were getting their information via Excel and PowerPoint In addition to these external customers was the population of approximately 1000 internal users within JCI itself These included account leaders and functional leaders including those from HR Finance Safety etc

Three primary functions of the project were

1 To replace the PowerPoint slides used in global and regional monthly internal operational reviews

2 To very quickly be able to become best in class JCI wanted everyone who had an account to be able to see where they sat compared to their peers This provided individuals ndash when faced with a problem ndash the ability to quickly identify and contact others who had solved the same issue

3 To standardize customer faith in contractually required performance measures This was a key goal of the company which felt that if they were going to benchmark and compare they needed to bring in the best practices learned at one location to their work at other locations

These three primary functions were heavily loaded in JCIrsquos rating system as the company set out to choose the right software for their scorecarding project It was also important that the software be intuitive as there was no time for hundreds of hours of global-wide training The software had to be rapid and easily configurable with limited IT assistance As JCI is a very large organization with a lot of systems in place the team in charge also wanted the software to be easily adjustable to the companyrsquos rapidly changing business they didnrsquot want to have to get into queue for IT every time a change had to be introduced or a new customer added

JCI Chooses ActuateFour vendors were evaluated for JCIrsquos scorecarding project with a global team in place to provide a systematic discussion of the defined business process and requirements The product chosen was the BIRT Performance Scorecard JCI had 30 days of Actuate Professional Services and planned for monthly micro improvements and quarterly macro improvements

Upon purchasing the BIRT Scorecard in January 2007 using the blueprints theyrsquod established already the company wrote their business processes They were able to go live in 90 days helped by the homework they did with the blueprints the web scorecard and the data collection processes It was an incredibly smooth implementation overall

The Results

Whereas JCI originally started out with a model of one-off negotiations with customer measures the scorecarding project has led to approximately 70 percent agreement on JCI standard metrics The company does a customer satisfaction survey both annually and quarterly and aims to demonstrate evidence towards continual improvement

Since implementation of the project the company has also been solving its data integrity issues Previously two regions might have been using the same words but not the same data collection methods ndash this made it impossible to introduce benchmarking and comparison between areas Now those problems are being solved and benchmarking and comparison are possible to the benefit of both JCI as it strives for best-in-class status and its customers

By David F GiannettoCEOThe Telos Group

Johnson Controls Incorporated (JCI) is a $38 billion company with a total of 140000 employees working out of more than 1300 locations in 125 countries worldwide Headquartered in Milwaukee Wisconsin the company provides a range of services including

real-estate portfolio management property management facility management and design and construction services

To initiate its scorecarding project JCI began by creating five categories of measurement Business Performance (this includes all financial measures) Service Delivery Customer Satisfaction Safety and People While the other four categories may be typical to most organizations the Service Delivery category was designed to take JCIrsquos measurements down to the client-site level which includes over 300 locations globally where the company has contracts In some cases there might be one staff member assigned to manage a single building while other times a staff member has a whole portfolio they maintain Measuring performance at all of these locations and levels proved a complex undertaking

Strategic Initiatives

Like all service providers JCI has to demonstrate that they add value Scorecarding allows them to do this both internally

and externally using data-driven results Since JCI has always been very much a data-driven organization anyway with a manufacturing background this was a natural fit for the corporation

JCIrsquos organization-wide motto is to be as good everywhere as they are somewhere Theyrsquove found that in any one account they may excel in several areas but perhaps not in all areas elsewhere though on another account someone else might have the skills needed to fill in those gaps The companyrsquos goal was to share information and communicate it between different locations across the globe allowing the company as a whole to get better faster and to benefit from the skills and strengths of its individual members Scorecarding was introduced as a way to help share this information and to introduce benchmarking within the company

The Requirements

To get started on their scorecarding initiative JCI examined each of their US contracts What they found was that there were no standards between clients and therefore no ability to benchmark Customers though wanted the ability to find out how they stood in relation to other customers This was impossible under the circumstances

Global Operational Excellence and a Performance Scorecard System A Case Study of

Johnson Controls Incorporated

42

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43

Vol 6 Issue 2 2009

Out of Touch With Crucial Data

Previously when Helzbergrsquos divisional and regional vice presidents went on the road access to their key performance metrics was restricted Without a laptop and a WiFi or hotel network connection to the internet they were ldquoflying blindrdquo according to Greg Backhus Helzbergrsquos Director of Data Warehouse and Decision Support Systems As a result they did a lot of faxing it was the only way they could get the current data that they needed in order to

About Webalo

Webalo technology transforms enterprise applications and data to make them compatible with mobile

devices This eliminates the need for traditional custom programming reducing the deployment of mobile applications from weeks or months to in most cases less than a day The resulting ldquoanywhere anytime on-demandrdquo availability of enterprise data on handheld devices turns such devices into viable alternatives to desktop laptop and palmtop computer hardware and lets mobile employees work more productively ndash on the spot ndash to solve problems answer questions monitor operations close sales and make informed decisions

The Webalo Mobile Dashboard Service ndash available in both internet-based and enterprise intranet-based implementations ndash lets non-IT business administrators securely specify the content of mobile-accessible information and the companion Webalo Proxy Server configures it in seconds to conform to the native user interface of any BlackBerry Windows Mobile Pocket PC Palm Symbian or Java-enabled smartphone

CLARITY CUT AND CARATSHow Helzberg Diamonds Made Sales Data Clearer Eliminated

Delays and Lightened the Load for its Divisional Executives

A diamond may be forever but a lot has changed in how theyrsquove been marketed and sold during Helzberg Diamondsrsquo nine decades in business A single store has expanded to nearly 300 locations from coast to coast and border to border Sales can also be made online now And information about every sale can be accessed in an instance through the companyrsquos enterprise systems

bull Compare actual sales to their goals and plans

bull Determine transaction counts for total dollar volume and average sales value

bull Break down sales by product category

bull Monitor attachment rates for products and services related to the main product sale

For example onsite at individual stores it was difficult to gauge how an active price-reduction sale was affecting unit and dollar

volumes unless there happened to be a coffee shop next door with a WiFi connection that would let Helzbergrsquos executives access the enterprise system

The Three Cs of Information Access

The three Cs of diamond grading ndash clarity cut and carats (or weight) ndash turned out to be applicable to data access as well But it took a transition to handheld devices and to the Webalo Mobile Dashboard to achieve it

Though laptop computers had gotten lighter and lighter over the years they were still considerably heavier than the Pocket PC-based smartphones that Helzbergrsquos executives used Since they were carrying those handhelds in addition to their laptops the VPs were open to the idea of being able to

bull Access sales metrics on their handhelds

bull Have data available on-demand from any location with a wireless signal

bull Navigate quickly to the figures they needed

bull Get updates to their metrics automatically

bull Review the information offline

It was the only time that carrying less weight ndash or carats ndash added more value Using a simple step-by-step wizard Helzbergrsquos support staff was able to configure their enterprise reports in a matter of hours They then assigned access privileges to each executive to control who could see what information and uploaded the file to the Webalo server That satisfied how data was ldquocutrdquo

For each mobile user regardless of the brand and model of smartphone they used the Webalo Mobile Dashboard conformed the information to the devicesrsquo user interface The application worked and looked exactly like any other application developed specifically for their mobile devices the on-screen text was easy to read and navigation used the same menu structure That meant there was no learning curve to delay user acceptance and productivity Clarity was essential and the Mobile Dashboard delivered it right down to the ability to bookmark commonly-referred-to displays for instant reference enhancing on-the-spot productivity even more

Speed and Simplicity

Productivity was also improved on the IT side Without the need for custom programming to conform the information to each smartphone brand and model deployment was reduced from months to hours

Since adopting the Webalo Mobile Dashboard Backhus says ldquoThe Divisional VPs find it invaluable They get more done because they donrsquot have the delays they used to haverdquo Decisions that used to have to wait for current data are now made right away relying on the right data presented in the right format

44

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45

Vol 6 Issue 2 2009

Sustainable practice has graduated from being market hype

to becoming a strategic initiative important for driving a successful enterprise It not only reduces a companyrsquos impact on the environment but can help organizations achieve a competitive advantage to build their brand impact top and bottom line and improve customer acquisition satisfaction and retention

Creating a road map towards sustainable management can require an entire shift in corporate thinking one that involves searching for buy-in at all levels establishing useful metrics and introducing practices that get beyond the green hype The end result though is not just a greener organization but also one with a more prosperous future

Why Sustainability

In August 2008 a survey undertaken by CIO Insight examined green practices in business focusing on the reasons why CIOs introduce sustainability efforts into their organizations The number one reason why organizations went green the study found was that the people within those companies sincerely had a concern for the environment A total of 74 percent of respondents answered that way 32 percent of which listed it as their most influential driver

Other influential drivers named in the survey included

Financial Drivers Companies found sustainability to be a way of cutting costs If they could cut energy costs not only would that help the environment but it would also help create cost savings The second most popular answer in the CIO Insight study financial impacts are key to implementing sustainability in most organizations Examples of financial impacts possible from sustainability were presented at CFO

2 The CFO Green

Conference which took place in May 2008

bull Dupont reduced its CO2 emissions by 70 percent saving the company $3 billion

bull FedEx redesigned its delivery trucks making them more aerodynamic This reduced the amount of particulate pollutants nitrogen and carbon the trucks put into the atmosphere and it also reduced the companyrsquos fuel costs exceptionally

Customer Image In the CIO Insight survey the third motive listed by CIOs for introducing sustainability ndash at 64 percent ndash was company image Consumers are becoming more and more aware of whether companies or organizations are living up to sustainability ideals They will notice if a company image or brand value reflects this concern for the environment Meaningful sustainability efforts can help gain customer approval as in the following case

bull Wal-Mart and Procter amp Gamble together agreed to sell liquid laundry detergent only in concentrated form This saved shelf space for Wal-Mart reduced water use by 400 million gallons for Procter amp Gamble and eliminated 45 million pounds of plastic waste

Regulatory Requirements The surveyrsquos fourth most popular reply ndash at only 25 percent ndash were current or potential regulations including the cap and trade systems being implemented which will require companies to buy carbon and sell carbon credits

Shareholder Pressure Finally at fifth in the CIO Insight survey ndash with 14 percent of responses ndash was shareholder or public pressure pressure building from shareholders to put forth sustainability efforts Pressure at this level is often mixed though as shareholders are also likely to express a desire that they donrsquot want shares to decline in value The general message may be that it is fine to introduce sustainability measures only as long as there is no risk that they will hurt the company

A Road Map Towards Sustainability

Step 1 Identify What Drives Your Organization

The first step in the road map towards sustainability is identifying key drivers Some drivers vary from one organization to another while others seem to drive any organization regardless of the industry Drivers incude

Internal drivers

bull Cost cuttings and savings

bull Employees including both the satisfaction of current employees as well as the recruitment and retention of future employees

bull Investment

External Drivers

bull Stakeholders including both those within the company ndash the employees discussed above ndash as well as stakeholders outside of the company

bull Brand awareness because consumers are becoming increasingly aware of the choices that are available to them and are making choices based on a companyrsquos green initiatives

Future drivers

bull Tax incentives

bull The recruitment and retention of future customers

Step 2 Select Your Metrics

In general terms sustainability metrics will fall into one of four major categories those that affect the climate those that affect the oceans those that affect human health and those that affect common issues like the land the water the wildlife etc

Within those large categories are smaller areas of interest that companies must examine to introduce organization-wide sustainability management carbon monoxide use energy consumption water consumption and fuel consumption are prime examples

Carbon Monoxide Use Many of the questions companies are asking themselves in regards to carbon monoxide use include

A Road Map of Key

Sustainability Metrics

That Impact Bottom

Line

46

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47

Vol 6 Issue 2 2009

bull How much carbon monoxide do we produce

bull Which processes in our overall manufacturing or delivery use produce the most emissions

bull Can we determine the indirect emissions For example leave a computer plugged in and itrsquos still on the grid creating an indirect carbon dioxide emitter How can we measure that

bull Whatrsquos our cost Do we have metrics that tell us what our CO2 emissions cost us

bull Can we predict into the future If we continue on this path without doing anything where will we be next month Next quarter Next year

Some examples of metrics related to carbon monoxide use include carbon dioxide emissions per employee (similar to revenue per employee) carbon footprint metrics and transportation distances

Energy Consumption Areas of interest related to corporate energy consumption may include the following

bull How much do we consume From what sources

bull Are we on the grid Are we using solar power or wind power or another alternative power

bull How much is used by our data center How do we make the data center greener

bull Where can we reduce consumption

Companies today are reducing energy consumption in a variety of ways by introducing energy audits and looking at energy-saving appliances and also through energy incentive programs for employees within which companies can incentivize and introduce bonus plans

Water Consumption An examination of a companyrsquos water consumption may include some of the following queries

bull How much water do we currently use and where

bull Where in our processes do we use the most water

bull Can we predict how much wersquore going to use in the future

Some of the examples of metrics that companies introduce in terms of water consumption include improved water quality how much impact low-flow or low-volume toilets have on water consumption and how much water is or can be recycled

Fuel Consumption Questions to consider in relation to fuel consumption include

bull How much fuel do we use

bull Where are the inefficiencies

bull Whatrsquos being predicted for fuel usage in the future

bull Can we analyze our logistics so that we can determine how to reduce our fuel consumption For example where are our trucks traveling How are they traveling What kinds of loads are they carrying

Step 3 Recognize Challenges

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly As such easier ways to enhance communication and to increase visibility need to be introduced both inside and outside of an organization

There are also constantly evolving requirements measures and standards of success With everything so new companies are challenged to find ways to compare their sustainability efforts with other organizations The biggest challenge in implementing these processes or attracting metrics may be that they require an entire shift in thinking Additional challenges that exist in the implementation of a sustainability model include

1 Financial concerns Companies must truly see potential for returns on investment or these initiatives can become non-starters or stall

2 Lack of regulatory motivation While not as common as it once was certain organizations arenrsquot motivated to introduce sustainability until government regulations are in place

3 Lack of a formal strategy for sustainability Without a formal strategy it is difficult for companies to determine where they need to go

4 Determining appropriate metrics Companies must choose metrics that are useful demonstrate impact and say something about their own corporate environment

5 Calculating metrics Standard algorithms and calculations exist to calculate metrics but companies must find the appropriate ones and use them

6 Finding quality data to plug into those calculations As in any Business Intelligence project if the quality of the data is questionable then so are the sustainability metrics themselves

7 Determining the scope of the sustainability project The scope is critical Narrow it down to something achievable feasible and useful

Step 4 Learn from Best Practices

What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde

bull Assign an executive champion Without an executive champion to drive the project initiatives are more likely to lack a holistic view and a clear vision for an implementation strategy they may take longer to implement and theyrsquore less likely to yield the required results To provide motivation consider linking the championrsquos salary directly to sustainability savings or to the increased revenues that result from sustainability efforts

bull Implement internal training and education Educate employees on what to expect and what is expected from them

bull Improve communication Communicate both to employees and to stakeholders outside of the organization

bull Start to think about alternative energy management and control strategies

bull Engage the use of technology and services For companies not sure where to begin a sustainability consultant can assist with program selection as can vendors such as Actuate which has a sustainability management solution in place

Step 5 Get Started

Understand that sustainability development is a business opportunity Donrsquot look at it solely as environmental although that is also important Itrsquos an opportunity for companies to introduce more cost-effective processes and procedures and to become more cost effective in their vehicle fleet manufacturing delivery etc

bull Create globally consistent metrics and goals Large agencies have to make sure that the entire group is on board and that they have consistent metrics and consistent goals across the enterprise

bull Find the value and drive the action What is the value of monitoring these sustainability areas and whatrsquos the course of action if you see that theyrsquore going off kilter or are not tracking as expected

bull Start small Initiatives such as these can become incredibly complex very quickly Start small and build in the complexity with each ensuing project

bull Get buy in People need to understand what the metrics are why theyrsquore there and what they mean to each individualrsquos situation (as reflected in individual bonus plans perhaps) Measure using industry-accepted methodologies and industry-accepted protocols continually improve metrics through optimization and forecasting and constantly optimize metrics and forecast into the future

bull As much as possible accurately report to everybody environmental performance Let employees shareholders customers and regulators know If data is questionable fix it get quality processes in place and then run the metrics

bull Determine environmental impact Has waste been reduced Has resource utilization been reduced Has the company improved environmental factors

Also consider using an Open Source vendor The Open Source community is beginning to develop sustainability metrics and Open Source reduces the costs of developing metrics while software costs for the project are reduced as well

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly ldquo

rdquo What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde ldquo

rdquo

48

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Vol 6 Issue 2 2009

Step 6 Move from Green Hype to Sustainable Action

A successful sustainability initiative involves identifying metrics that will translate into cost savings and benefits while avoiding metrics that are not likely to yield required results To accomplish this start small start with a small department within the organization and then repeat this continuing to repeat it throughout the enterprise

bull Start with basic conservation Change behavior reduce consumption and in the process increase investment

bull Start reusing Improve productivity improve efficiency and create less waste

bull When this translates into cost savings re-invest Grow make larger improvements and increase involvement

Projects that make good starting points

bull Measure carbon dioxide emissions throughout a value chain or product lifespan Look for potential improvements

bull Ensure regulatory compliance By knowing what the regulations are companies can determine what metrics need to be in place

bull Identify ways to promote and profit from more environmentally-respectful goods and services Companies can promote environmentally-respectful goods and services while also using sustainability to help the company

Monitor the effects of each project to determine which strategies have the most impact both physically in terms of

the environment and financially in terms of revenues and cost savings Publicize how metrics are tracking over time

Actuate for Sustainability Management

Actuate for Sustainability Management is a solution by Actuate that integrates highly interactive visually rich dashboards There are pre-built sustainability scorecards strategy maps and over 100 pre-built metrics across the economic social and environmental aspects of sustainability

The Actuate BIRT Performance Scorecard supports the metrics defined including

bull Reducing an organizationrsquos environmental footprint

bull Building green facilities and buildings

bull Compliance and reporting

bull Manufacturing

bull Community and engagement

bull Human development including employee well-being and satisfaction

Actuate for Sustainability Management provides collaboration across regulators consumers and non-governmental organizations Dashboards and scorecards come integrated with reporting so as to improve reporting to stakeholders both outside and inside of an organization All of the products are built on Actuatersquos dependable cost-effective and scaleable platform

Performance Management solutions help organizations understand act on and influence business decisions processes and measures of business success The 2009 Actuate Performance Management Excellence Awards will honor customer success stories in four key areas Over the next several issues Perform Magazine will highlight some of the entries in these categories

Category 1 Go Green

Each year the concept of environmental responsibility has implications for both the private and public sector specifically with regards to how each measures the performance of their operations For organizations using the Actuate BIRT Performance Scorecard to measure the progress of organizational Green initiatives how have they responded to the challenge and how do they use the BIRT Performance Scorecard to ensure they stay on track

Category 2 The Perfect Slice

Successful Performance Management comes in all sizes Some initiatives are enterprise-wide while others are focused around specific business units or functions yet still encompass a holistic approach to Performance Management by looking beyond financial indicators to a more balanced set of indicators This category includes organizations deploying the Actuate BIRT Performance Scorecard with a focus on improving the performance of individual business units or functions and includes the measurement of people and processes

Category 3 Big Bang

Carefully executed Performance Management initiatives begin with a measured approach to the initial implementation and quickly expand to other parts of the organization aligning business units to strategy at each step This category is open to Actuate customers who initially implemented the Actuate BIRT Performance Scorecard to a limited user community and through careful change management and planning expanded the use of the BIRT Performance Scorecard throughout the organization

Category 4 Super Size

Award-winning enterprises achieve breakthrough results in the financial customer operational and people perspectives of their business and leverage internal champions across the organization to ensure ongoing and sustainable success The key to achieving these results lies in total visibility of all business units aligned to strategy This category is open to any Actuate customer with a fully deployed enterprise-wide Actuate BIRT Performance Scorecard implementation

Actuate Performance Management Excellence Awards2009

50

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Vol 6 Issue 2 2009

HealthNow New York Inc headquartered in Buffalo is one of New York Statersquos leading healthcare companies doing business as BlueCross BlueShield of Western New York BlueShield of Northeastern New York HealthNow in the Central New York region and Brokerage Concepts Inc in Pennsylvania

Improving the health of people and communities are HealthNowrsquos corporate priorities and for more than 70 years the company has been a proactive partner in health working to improve the quality of care and the quality of life for everyone it serves In 2008 HealthNow provided access to care to more than 820000 members and in 2008 company revenues grew to $227 billion

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution and describe what you were trying to achieve as a group function or department

A few years ago HealthNow New York Inc determined that the key to its continued success would be its ability to differentiate itself from other healthcare plans in ways that could not be readily duplicated or copied by their competitors In an increasingly crowded marketplace to get the attention of new customers and retain existing ones HealthNow needed to set itself apart from others

This lasting competitive advantage needed to come from an organizational culture that was dedicated to a relentless focus on meeting customersrsquo needs It needed to be highly responsive supportive flexible and nimble particularly as the healthcare marketplace continues to change with more responsibility placed upon its customers

To that end a new business model was implemented to provide the framework for customer focus Under the new structure the company was divided into four strategic business units (SBUs) each responsible for financial contribution customer satisfaction medical utilization and market share of a specific book of business

Each SBU includes its own set of functions including sales account and broker management product configuration customer intelligence pricing enrollment and billing customer service medical management and HR support Each business unit is led by an executive who is fully accountable for the unit operations and for bottom-line performance of the entire business unit Each SBU is supported by various corporate support functions (Actuarial IT Legal etc)

Implementation of the new business model began with a reorganization of the senior management structure The senior management of each SBU has specific incentive goals as well as strategic goals aligned with the corporate incentive Those strategic goals then drill down to ldquoteamrdquo incentives and to a blend of strategic and operational goals

This was a completely new way of looking at our business It was a blank slate requiring new processes and new methodology as well as an examination of existing metrics and processes to determine what added value and where the strengths weaknesses opportunities and gaps were

Under this new structure the Government Programs State and Federal products SBU ndash which historically had some inefficient end-to-end processes lacked internal controls and had minimal oversight of financial performance ndash was able to set a foundation and develop a growth strategy In order to achieve this mission and to align track monitor improve and communicate performance the Senior Vice President of the Government Programs SBU elected to utilize a Performance Management framework via the Actuate BIRT Performance Scorecard

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

As a point of reference the Government Programs SBU is comprised of a State Government Programs team a Federal Government Programs team an Operations team and a Sales team The Performance Management design team was comprised of the Actuate system administratorfacilitator the Government Program financial reporting manager and two SBU data analysts Input from the various teamsrsquo management staff was gathered as the design got more granular

Discussions around the design of the Government Programs scorecard began with two basic questions

1 What are the handful (ideally six to eight) of key performance indicators that are necessary to run and manage your business and to indicate that yoursquore on the right path to achieving your goals

Defining the key performance indicators was a challenge that required the Actuate system administrator in a facilitative role to get intimately involved in order to keep the discussions focused and high level and to limit scope creep The incentive goals were clearly defined at the corporate and SBU level however the tough question was how should they drill down in the BIRT Performance Scorecard The facilitator posed the following questions to the other members of the design team

bull How do you usually look at your business

bull How are the primary source documents that capture this information structured

bull What other ways do you look at your business

Taking the answers to these questions a step further the facilitator asked the next question Is the drill-down structure the same for the core strategic or team metrics The answer was yes By taking this approach we were provided with consistency in how the teams look at their business and the performance of their core indicators

Once the incentive and strategic goals were identified more leading and lagging operational measures were defined such as

bull Call centers

bull Accuracy

bull Quality

bull Sales Performance

2 Who is your audience

Through the entire measure selection and definition process the design team was constantly reminded to keep a second question ndash who is your audience ndash in mind This helped keep the focus on the critical few and keep the number of metrics down to a manageable amount Links to supporting documentation were created to provide easy access to the granular data without burdening the scorecardrsquos objective

The audience in this case was the SBUrsquos Senior Vice President followed by the State Director Federal Director Operations Director and Sales General Manager It then cascades down to each directorrsquos management team and the data providers

In order to provide a complete and consistent picture of State and Federal performance for senior management where

gt Performance Management Excellence Awards

HealthNow New YorkCategory 2 Entry The Perfect Slice

gt Performance Management Excellence Awards

[ Figure 131 Homepage Map ]

52

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Vol 6 Issue 2 2009

possible the same or comparable measures were created for each team For example when looking at the various call center metrics ndash even if the definitions and targets slightly differed ndash if one team was consistently exceeding or meeting their target it sparked group discussion around best practices processes staffing and target definition

Utilization of Maps continues to play a major role in communicating performance Again focusing on our audience there is a Map at the Senior VP level which then links to a high-level Map for the State director and staff and for the Federal director and staff The one-page snapshot allows management to easily view performance then to drill down to specifics via additional detailed Maps or Books Because the audience embraces the Maps concept a ldquoWhere is itrdquo Map containing all Maps and Books by SBU was created Itrsquos a quick and easy reference tool

3 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

Quantitative results are achieved through the promotion of visibility and awareness The Return on Investment may not fit a conventional definition but can be measurable and accomplished by challenging the data targets and accompanying commentaryaction plan narrative to drive performance improvement Are the targets realistic yet aggressive Are action plans being documented and carried out Are the actions discussions and decisions leading to improved performance and processes

Government Programsrsquo membership is measured and monitored in various ways via the BIRT Scorecard and other sources For example Federal membership is measured by product then by plan It is also measured by market then by product then by plan By creatively visualizing performance in multiple ways via a Map those same data results can sometimes become very obvious telling a different story that may not be obvious via standard reporting methods It may clearly illustrate that a specific product in a specific market is continuously under-performing for example Fact-based decisions can then be made as to whether or not to continue with this product in this market or it may initiate discussions as to how to grow and retain profitable membership for this product in this market

Another more recent example is an initiative to track claims-review savings By reviewing claims via various processes what savings can be recouped or realized What specific areas are State and Federal teams focusing on that can contribute to overall savings for the SBU Again where applicable there should be consistency in the metrics across

teams Placeholders are included to promote visibility to keep them in the forefront even though the data or processes may not be in place yet But by capturing results on one page via a Map it bridges potential gaps between the teams promoting awareness and synergy across the SBU

4 Qualitative results What ldquosoftrdquo or intangible benefits has the group department or organization received as a result of this solution

A major benefit of the scorecard framework for the Government Programs SBU has been the identification and alignment of roles responsibilities and accountability

The SBUrsquos Senior VP monthly leadership meeting focuses on four areas

bull Performance Performance is covered via the existing incentive strategic and operational metrics

bull Action plans Documenting action plans in the Performance Management Software Suite versus verbalizing action plans establishes ownership and accountability At subsequent meetings management follows up on key action items or plans to determine whether or not the corrective action did take place and if yes did it have the desired results

bull Strategic direction The strategic direction of the various teams is captured as a springboard to strategic thinking discussions and planning So as not to lose sight of short- and long-term strategic planning this aspect of the business now is housed in the BIRT Scorecard completing the strategic planning of the ldquoHow are we going to get thererdquo and ldquoAre we there yetrdquo cycle This holistic approach helps minimize the chances of our scorecard becoming too focused on operational performance and keeps strategic planning dynamic and visible

The value of these metrics is not in the data but in the commentary The individual teamsrsquo strategic direction ldquometricsrdquo are subjective red = 1 yellow = 2 green = 3 The target = 3 Each metric includes a description of the specific strategic path we need to research or move forward on as well as what goal achievement it supports The ldquodatardquo ndash or color ndash is based on basic questions like What did you hope to achieve this month vs What did you actually achieve this month Were there any successes barriers obstacles In addition to accountability the entire SBU benefits from the sharing of information having meaningful discussion taking appropriate action and collaboration

bull Key initiatives The last critical component is the identification and alignment of key initiatives that

are necessary to support achievement of the various incentives strategic goals and direction and operational goals As with the strategic direction metrics the value is in the narrative with the color reflecting what was accomplished for the specific reporting period

5 Innovation Why should this solution be considered an Innovative Solution What makes it unique groundbreaking and superior What unintended results did you realize

Over time the Government Programs Performance Management framework evolved into an innovative solution The process drives performance and isnrsquot necessarily focused on ldquocolorrdquo Rather itrsquos about having the right people in the same room on a regular basis to drive meaningful discussion and to take appropriate action to improve performance

Outside of the standard processes it was the monthly review process that drove effectiveness revisions enhancements and restructuring of the meeting schedule agenda and format The Government Program financial reporting manager would meet with each director and general manager to review their scorecard for completeness as well as for performance from an operational perspective The State and Federal team directors would then meet with their respective management teams to review and discuss performance results in preparation for the joint Government Programs Leadership Meetings The audience included the Senior VP down to team managers key data analysts (data providers) and support function representatives Through trial and error management learned to maximize their time and effectiveness by concentrating on key metrics and topics rather than trying to review all metrics identify leading indicators versus only outcome results and include strategic thinking and initiatives Today the monthly leadership

meetings are much more productive and look at strategic and operational performance

As involvement and participation increased in the team meetings as well as in the leadership meetings it removed silos opened communications enabled the sharing of information and best practices and promoted teamwork across the SBU But most importantly it brought about an awareness and a sense of unity and commitment within the SBU to achieve their goals something that was lacking before

While it was not part of the initial scope management realized shortly after implementation that efficiencies could be gained by replacing an in-depth hard copy monthly report with BIRT-generated results Since the BIRT Scorecard contained the same data with supporting narrative ndash plus additional metrics with narrative ndash monthly performance was captured via a monthly report Book various Maps and BIRT-generated reports Elimination of the hard-copy report was an unintended way of encouraging a more active use of the Performance Management software by management to monitor performance thereby increasing user familiarity with the contents features functionality and navigation

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

Sustainability is achieved through a continuous process of revisiting the scorecard when there are organizational changes looking at the business direction shifts goal changes process changes etc To ensure that metrics are still relevant a filtering process is held with each director and general manager every six to eight months or as necessary During this exercise questions such as the following are asked

gt Performance Management Excellence Awards gt Performance Management Excellence Awards

[ Figure 132 CEOrsquos Book ]

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1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

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Vol 6 Issue 2 2009

3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

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Page 2: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

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Vol 6 Issue 2 2009

BIRT FOR RECOVERYHow Open Source is Transforming Government Data Into Dynamic Information Ecosystems

ByJohn Katsoulis Senior Manager Product MarketingActuate Corporation

On February 17 2009 President Obama signed into law The American Recovery and Reinvestment Act of 2009 (ARRA) pledging a renewed focus on open government

and transparency and making it clear that in order for efforts to succeed this renewed focus had to become a top priority at each step of its execution

To provide initial guidance the White House released detailed documents on Recovery Act transparency and reporting which broadens the focus beyond funding programs to include details pertaining to how performance information is communicated to stakeholders and the means by which this may be accomplished

Over the past 20 years governments have been applying the concepts of Performance Measurement and Management in

Dear Reader

Irsquom sure you would agree that this year has proven to be memorable both in terms of the effort being made to pull out of todayrsquos economic uncertainties and how winning organizations will utilize and leverage a new generation of Rich Information Applications to help them succeed Irsquove always been fascinated with the pace of technological change and its impact on industry Itrsquos incredible how this new wave of application platforms and enterprise solutions is re-shaping how people use assemble and view information how IT secures and disseminates it and how every day users can now contribute to the ongoing definition of these applications through enhanced user interactivity that was not possible just five years ago

In addition to our dedication to publish content for Performance Management professionals I am pleased to share with you that we have permanently enhanced the focus of Perform Magazine the to better represent the needs of our readers by including articles and case studies on related topics such as Rich Information Applications (RIArsquos) Open Source and the role of developer communities self service applications and case studies that feature in-depth editorials of real-life implementation stories across multiple disciples and requirements I hope you enjoy this issue

Best Regards

John KatsoulisJohn KatsoulisPerform Editor

From the Editor

Last month we hosted a customer event that brought together a broad range of business leaders from both the private and public sectors The event was a tremendous success and our attendees had the wonderful opportunity to learn and share with each other how to harness new technologies to improve all aspects of their operations

A common theme that emerged from these discussions was that success in todayrsquos marketplace is tied to an organizationrsquos ability to adapt quickly and to implement change to ensure longevity One thing all attendees had in common was their insight and belief five years ago that the business of information how you organize it and communicate it would change dramatically ndash and it did The event confirmed what many industry analysts know to be true that Open Source technologies are here to stay and are an integral part of thousands of enterprises

This edition of Perform Magazine is especially significant as it marks the fifth anniversary of BIRT which is celebrated by a flourishing business application developer community an unmatched business community of Performance Management professionals and the launch of the BIRT Exchange Marketplace (httpwwwbirt-exchangecombemarketplacehub) a showcase for BIRT-based solutions and services where anyone can buy sell and share applications solutions and components for BIRT and BIRT-related products

I hope you enjoy this issue of Perform Magazine and can leverage the case studies and articles within on how todayrsquos Rich Information Applications grounded in Open Source technologies are re-igniting the business of information ndash and what you do with it

Best

Rich GuthRich Guth Vice President amp General Manager Open Source Strategy Group

From the Publisher

>

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Vol 6 Issue 2 2009

order to maximize results and minimize negative outcomes ndash first outlined under the Government Performance and Results Act (GPRA) in 1993 and later in a new piece of legislation called The Presidentrsquos Management Agenda which was introduced in 2002 What sets the ARRA apart is the scale of the Act and the urgency it represents across the nation and at every level of government With a $787 billion ante on the line federal and state agencies need to get it right or outcomes may be catastrophic to future generations Doing it right however means that todayrsquos stimulus programs need to sustain future growth in areas such as Energy Transportation Education Health and Infrastructure while giving the economy the kick start it needs today to get back on track

Integrated Performance Management for the ARRA Understanding the Fundamentals That Lead to Success

With so much money at stake and an overwhelming amount of information being published about how government needs to respond to the challenge how should government agencies engage the process to ensure they can both focus on delivering expected results while responding to the enhanced demands for transparency and accountability outlined in the Act

Moreover what pitfalls should government avoid to ensure that the individuals tasked with managing the successful execution of these programs are equipped to focus on their delivery as opposed to managing the data around the program History has taught both corporate and government sectors that an overabundance of data can systematically begin to paralyze an organization Without a clear direction and identification of goals and objectives individuals within any organization either lose sight of the mission or may have never understood the mission because it was never communicated to them

As such this whitepaper will explore five key recommendations that serve to demystify the perceived complexity related to the ARRA requirements ndash more specifically how to leverage proven methodologies such as Performance Management for successful execution and communication of stimulus projects and the results they achieve

Lastly this article will provide an overview of the Actuate BIRT Stimulus Management Solution highlighting some the unique differentiators that set it apart from the one-dimensional reporting applications or lengthy consulting engagements offered by other vendors

Recommendation 1 Train and Educate Your Workforce on Key Concepts

A common misconception at many organizations is that behaviors and activities are the same as results Upon closer scrutiny however there is a realization that employee activity volumes and what we perceive as good behaviors donrsquot always have a direct correlation with moving an organization towards a common set of goals and objectives

Engaging Performance Management will take you on a journey that involves collaborating with multiple internal and external stakeholders It also involves improving how goals and objectives are communicated so that everyone can understand the strategy in question As the journey unfolds the relationship between leading and lagging indicators goals and KPIs ndash in addition to how individuals contribute to each ndash needs to be clearly articulated which in turn encourages the alignment of resources to strategy Itrsquos vital that you explain these relationships to ensure everyone understands how their activities and behaviors ultimately impact the performance of metrics KPIs and higher-level goals

Recommendation 2 Ensure Everyone Understands the Mission (Defining Your Organizationrsquos Short- and Long-Term Goals)

Your organization educated its people on key concepts yet the question remains How do you attain visibility into the performance of your goals KPIs and metrics More importantly for government how do you effectively communicate these results in a manner that adheres to demands for new levels of transparency and accountability

An effective Performance Management initiative must follow a systems-based approach which consolidates and logically assembles an organizationrsquos goals KPIs and metrics into a representation of overall or operational strategy This creates a framework or cascade of measures that facilitates the generation of performance results at each level in the structure (see Figure 11)

Without a systems-based approach the effort produces a flawed picture because your reports are produced in silos ndash without links to other related information For example organizations that cut spending on education and training will likely improve bottom-line figures however the organization in question may eventually experience reduced productivity and long-term profit loss resulting from a workforce that is not as current on technologies and market trends as their competitors

A Performance Management framework provides strategic clarity and communicates what the strategy is and how individuals and programs contribute towards common goals it doesnrsquot matter if the strategy is for a single operational unit or the entire organization whatrsquos important is that you take the time to define your objectives and what contributes to them internally In the context of the Act organizations must find a clear and interactive way of visualizing it using a common framework so that individuals understand what the different focus areas are and how their efforts impact their performance

Recommendation 3 Communicate In-Context Performance Results Outputs and Outcomes to All Stakeholders Using Current Technologies

Effective communication of your operational organization-wide or initiative-specific strategy (in the case of the ARRA) involves transforming directions and goals into an actionable plan which in turn will help align frontline resources to day-to-day activities Automation is a key element to success in this area as is the ability to represent and utilize more than one Performance Management Framework

Typically government organizations are already (knowingly or unknowingly) well seasoned at Performance Management as they have been required to report on the performance of their programs for more than two decades As such government has reached a point where access to one-dimensional KPI reports is simply not enough ndash especially in light of the tremendous amount of information that exists in regards to the ARRA It really comes down to the basics to succeed with any initiative government will need to embrace technologies that provide management with insightful summarized KPI insight while delivering sophisticated linkages to the underlying information that feeds performance data But they need this information at their fingertips searching for it is not longer an option

A growing dynamic across sectors is the emergence of Open Source platforms and technologies as a viable alternative to the standard operating system-based solutions that many organizations had become accustomed to in the past Open Source provides a host of technical advantages most of which contribute to the ongoing enhancement of application speeding up the release cycle with business users and developers Open Source also provides significant long-term cost savings freeing up scarce IT dollars for other strategic initiatives

Open Source is the most rapidly growing technology today According to an article published by CIO Weekly in March 2003

[ Figure 11 ]

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Vol 6 Issue 2 2009

54 percent of CIOs surveyed said Open Source will be their primary platform within five years The backbone of the internet even runs on Open Source software In addition to the benefits already noted some other high- level benefits surrounding the deployment of Open Source solutions include

bull Solutions vs software With Open Source programming the application received is precisely what the customer wants nothing more and nothing less Customers can elect to buy value-add products build it themselves or contract the work to a firm specializing in programming under a specific Open Source project

bull Speed to deployment A community of programmers develops the core elements of Open Source solutions and market deployment of these solutions is often quicker than proprietary business models

bull The role of developers Open Source developers working directly with consumers ndash in this case government agencies ndash can apply the best technology to meet the agencyrsquos immediate needs

bull Open Source standards and security Open Source solutions are extremely secure and vastly scaleable and reliable So much so in fact that prominent members of the financial industry such as Merrill Lynch and Credit Suisse First Boston use Linux ldquoopenrdquo servers for transactions

In all cases when searching for an integrated Performance Management solution your needs analysis should include complementary features and functions that help create the foundation of a system that people like using Donrsquot ignore features that help users access related knowledge best practices or the ability to quickly and easily deploy highly interactive executive scorecards dashboards and reports These will all contribute to high user adoption and alignment of your resources while external stakeholders are satisfied through similar display options built for them

Recommendation 4 Revisit Plans Regularly ndash Performance Management and Information is a Fluid Process Where Requirements and Directions Change Over Time

Performance Management in its truest sense has always involved getting cross-functional groups of people to work together through high levels of collaboration to help define organizational strategy (through the identification of high-level organizational goals and objectives as well as through related lower-level KPIs and metrics) Unlike other initiatives which have a natural start and end date you will find Performance Management is an ongoing process of redefining refining and changing directions as the environment around you changes and as directions from management are modified to react to changes in your surroundings For government the global economic crisis has placed increased expectations on every level of government to communicate performance and demonstrate accountability In doing so existing strategies will

need to be modified to include newer initiatives put in place to kick start recovery In essence the job is never done ndash itrsquos ongoing In addition to the general updates to strategy that all organizations experience over time you may also want to consider the following for effective management of your Performance Management initiative

1 Examine your initiative from the Program User and Technical aspect This will provide you with a structured way to review your Performance Management system your usersrsquo perceptions of the system and actual design of your strategic framework

2 Review outcomes to determine how much value is derived from your efforts

3 Review how well you have responded to transparency demands or performance improvement

4 Incorporate new initiatives and measures within existing scorecards in an efficient manner

5 Review current measurement processes to ensure consistent measurement across the organization

6 Re-educate your workforce as needed

7 Provide a forum for dialogue of new ideas

8 Ensure you are maximizing the use of your Performance Management system

Recommendation 5 Integrate Performance Management to Benefit from Two Highly-Collaborative Communities

Time and time again important decisions are made at organizations and across sectors using the traditional short-term ldquofinancial balance sheet approachrdquo Markets globally have demonstrated how this approach is flawed because it doesnrsquot take into account how these short-term decisions will impact future performance levels or the long-term viability of an organization

Earlier we suggested government take an integrated approach to Performance Management because of the tremendous benefits associated with having access to all enterprise information in a seamless environment that provides users with instant access to information at all times One of the main benefits not mentioned earlier which is critical to the ongoing success of any enterprise implementation is collaboration Collaboration can be divided into two groups collaboration among developers and collaboration among business users These two groups can come together to extract higher levels of value from Open Source technologies

Developer Collaboration

Open Source applications are built with the expectation that they will change they have to in order to grow and support new users These characteristics are the hallmarks of successful applications they keep their momentum by adding both users and features at the same time Open Source communities

contribute to the process by allowing application and report developers access and by sharing knowledge and resources relating to Open Source technology

In real terms using Actuate as an example the BIRT Exchange is a community site for Eclipse BIRT and Actuate BIRT developers who add reporting analytics and business intelligence capabilities to Java applications BIRT Exchange allows developers to share code samples and report designs tutorials technical articles as well as tips and tricks BIRT Exchange also offers forums downloads online documentation and information on BIRT technical support

Open Source applications also share a unique self-fueling characteristic in that the velocity to which they are enhanced is much faster than traditional applications ndash and this is directly attributed to its higher levels of collaboration Another way to look at this is from the context of a user and by looking at a series of events that unfolds as users embrace a new application and start to make requests

1 When you give users information you make them smarter

2 As they become smarter their questions change

3 This in turn changes application requirements or scope

4 Commonly-requested functionality is added to the application

5 User and developer collaboration speeds up the development cycle

Business User Collaboration

As mentioned earlier Performance Management is a highly collaborative effort that involves multiple internal and external stakeholders working through how goals and objectives translate into lower level KPIs which in turn link to frontline metrics It is only after an organization creates these linkages that alignment can occur A common thread for any strategy ndash regardless of industry ndash is that with time it will somehow change as organizations react to internal and external events so one can also look at it as an evolutionary process that involves everyone working towards a common set of goals and objectives which at some point over in the future will be changed or modified

What benefits can government organizations expect from the Integrated Performance Management process and how does collaboration add value Through an integrated understanding of performance government organizations gain insight into all aspects of their operations allowing them to have tighter control over obvious areas such as waste efficiencies and human resources in addition to enhanced insight into more strategic long-term success indicators such as innovation and sustainability among others In all cases this enhanced perspective into how an organization is performing across its top-level goals creates a smarter organization that empowers people to make better more informed decisions Simply put the Integrated Performance Management systems they use provide them with a complete picture Value is realized when a strategy is in place and when a systemized Performance Management initiative takes hold internally This is when performance results are communicated in the context of the organizationrsquos mission The communicated performance results then become a trigger to fix and improve areas where performance is below target ndash and the difference or ldquodeltardquo is value

Of course no strategy is perfect and over time it needs to be revisited enhanced and improved (if needed) by the same internal and external stakeholders that helped define it in the first place The process repeats itself once again which enhances the value or output of the planning efforts ndash each iteration hopefully provides a higher value return Without collaboration strategy canrsquot be improved and value canrsquot be enhanced

How Developers and Business Users Enhance the Value of Your Open Source Applications

Integrated Performance Management powered by Open Source technology creates a bridge between the developers who have traditionally collaborated (from a technical standpoint) in the Open Source model to include highly strategic executive-level business users Collaboration is enhanced with Open Source because the needs of technical and business users can merge from what was once two distinct development paths into a single cohesive system of requirements and enhancements which all serve to improve an application over time

For government specifically Open Source not only delivers the benefits associated with more rapid deployment of technical updates and changes but it also offers government leaders

Performance Management in its truest sense has always involved getting cross-functional groups of people to work together through high levels of collaboration to help define organizational strategy ldquo

rdquo

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9

Vol 6 Issue 2 2009

Need More InformationVisit the Actuate Website

wwwactuatecomwhy-actuateapplicationsstimulus-management

Download a Brochure of the Actuate Stimulus Management Solution

wwwactuatecomdownloadbrochures-datasheetsOPM-Stimulus-Management-briefpdf

Get access Actuate Stimulus Management Live click here

wwwactuatecominfoStimulus-Management-Live

a means to share best practices report templates measure structures scorecards etc that are not readily accessible with a closed model Additionally since governments serve to improve performance at all levels to their constituents the concept of collaboration exists in its truest sense because ldquocompetitionrdquo does not exist (as it does in the corporate sector) Governments in this sense are unique in that they can focus on collaborating with other government organizations to ensure that they learn from each other and can benefit from enhancements from either a technical or business standpoint

Responding to the ARRA How Do You Get There

Open Source ndash The Best Option for US Government

By no means is Open Source a new idea Open Source technologies and solutions such as Java Linux Solaris MySQL Apache and OpenOffice are well established and well proven with billions of people using them Some of the worldrsquos most successful companies ndash including Google and Facebook -- run their businesses on Open Source technologies

There are a few success stories in the US government yet we still lag behind governments in the United Kingdom Brazil Denmark the Netherlands China and Germany etc Governments there have engaged in formal wide-scale deployments of Open Source technology with many having articulated specific policy on Open Source As such without a clear Open Source policy in place the United States risks widening economic and technological competitive gaps between itself and the rest of the world

Do You Know BIRT

When it comes to solutions designed to respond to the reporting and transparency requirements outlined in the American Recovery and Reinvestment Act government leaders

will be pleased to hear that a full suite of value-added products and solutions are available today that are built specifically to address the ever-changing reporting complexities of the Act

Sitting at the core of this pre-built Stimulus Management Application is the Actuate BIRT Performance Scorecard the most fully-featured Integrated Performance Management System ldquoIntegratedrdquo is the key word here ndash because true performance insight requires access to all of your information so that it remains in context with your search at all times regardless of where your data resides

So what sets BIRT apart Itrsquos Open Source to start In fact itrsquos the most widely-used and accepted Open Source business projects in the world and it is reshaping how people in the workplace collaborate to use assemble and view information through the enhanced dynamic interactivity it delivers to every user across the enterprise

This rich collaborative environment is different because of how quickly changes can be deployed and enhancements added to the core technology stack BIRT will change how internal consumers view and use information and their changing needs help dictate future enhancements

Components of Actuate BIRT Stimulus Management

bull Pre-built framework of over 250 ARRA metrics

bull Dynamic BIRT templates including cost reports and interactive Google Maps

bull Actuate BIRT Performance Scorecard The most fully featured Performance Management system Proven methodology delivers concrete milestones tailored for each customer

bull Actuate BIRT and Flash Objects Intuitive rich dashboards display financial and non-financial metrics in context of other leading operational indicators with drill-through into personalized analysis-ready BIRT reports

bull Actuate BIRT Spreadsheets Automate the Excel spreadsheet creation process eliminating errors introduced by manual intervention thereby minimizing risk and improving data accuracy in business-critical spreadsheets

bull Consulting Services Unmatched Operational and Strategic Performance Management knowledge software consulting coupled with knowledge transfer

bull Metrics Library Leverage an extensive library of over 12000 metrics and a tailored ARRA solution database

John Katsoulis joined Actuate in November 2002 and is currently Senior Manager Product Marketing He has 13 years of combined experience in software consulting product management and product marketing John is responsible for the product marketing and development of new applications for Actuatersquos Performance Management solutions and also the editor of Perform Magazine

By Norma SimonsPresidentSimons-White amp Associates Inc

As workplaces become more complex with higher expectations the demand becomes greater for accountability and performance results As a result internal pressures escalate for organizational change which ndash if implemented

correctly ndash can lead to sustainable success for both corporate and government organizations

Itrsquos well known that Performance Management models and frameworks can help any organization create better alignment

by ensuring all resources are directed to those areas that are deemed strategic ndash but is that enough What about instances where alignment still falls short of expectations when the organization in question is still plagued with higher-than-expected levels of waste and inefficient processes How do you manage these processes and can traditional Performance Management methodologies provide enough insight to ensure success Or are other tools needed as well

With so many models and improvement tools available for organizations to use the challenge becomes one of identifying gaps and of implementing supplementary frameworks that fill those gaps These frameworks aim to fix operational areas that impact both top- and bottom-line strategy This article

TEN CRITERIA for Integrating SIX SIGMA with

Performance Management

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will address how any organization can leverage its current Performance Management efforts and enhance outcomes and results by integrating and applying Lean Six Sigma If done properly organizations can use Lean Six Sigma with Performance Management to systematically improve operational performance by eliminating waste and by creating efficient business processes

For those who are not familiar Lean Six Sigma focuses on improving the quality of process outputs by identifying and removing errors and variability in manufacturing or business processes The Lean approach leverages statistical methods and analysis and requires that an organization create a special internal team of people who are experts in these methods (Black Belts Green Belts etc) As such Lean Six Sigma projects follow specific steps and have quantified targets Another way to look at Lean Six Sigma is as a project that is focused on cost savings and on removing mistakes or defects in a process

A Performance Management system is key to any Lean Six Sigma implementation Itrsquos the foundation from which Lean Six Sigma projects are built which means organizations that donrsquot have a functional Performance Management system are starting the Lean Six Sigma journey without the right tools Performance Management helps to clarify the business case to link projects to the bottom line and to provide a baseline of comparison as performance improvement occurs project by project If you donrsquot have a good Performance Management system you donrsquot have an effective method to set priorities in terms of which project you need to start on first

Performance Management then becomes the skeleton or backbone to Lean Six Sigma initiatives ensuring that you select the right projects that projects are linked to the bottom line and that they are done in the right order according to priorities that make sense And once the project is done Performance Management ensures that improvements are monitored and therefore sustained for long-term success

Initiating a Lean Six Sigma project begins with an assessment based on available Performance Management information You identify the approach you want to use ndash whether itrsquos Six Sigma or Lean will depend on what the challenge is ndash you execute the project and finally you monitor the business process to replicate the benefits Many times Lean Six Sigma will fail because of an organizationrsquos inability to replicate success yoursquove done a project there was success but you canrsquot repeat the process If you start off with a Performance Management system it becomes the DNA of the company that you can use to keep and maintain projects

There are 10 criteria that should be used as a baseline focus for the design of a Lean Six Sigma initiative integrated with Performance Management These 10 criteria will vary depending on whether yoursquore with government education healthcare or manufacturing and each has unique requirements that will impact how your program is going to be designed ndash but the fundamental principles in each criteria stay true across these segments

1 Customer Focus

Customer focus is one major criterion that will impact how a Lean Six Sigma initiative is designed Companies should be asking these five questions

1 Is the organization focused on the needs of the customer rather than just internal organizational requirements

2 Is there a process to capture the voice of the customer in an active way Are there surveys for example or are there means of talking to the customer to capture that information

3 Is that information collected Do they keep track of customer data

4 Is the data reviewed and disseminated so that people internally can understand how the organization is viewed

5 Are people aware of the internal customers as well as the external customers

This idea of customer focus is easy to grasp in the manufacturing environment because at the end of the day you are producing a product ndash a deliverable thatrsquos physical In other words many times when you go into a manufacturing plant there is some visual clue that gives you an idea of the extent of customer complaints especially external customer complaints There are also some areas of the organization that will be actively capturing the voice of the customer ndash in the marketing and engineering departments for example ndash communicating that information and using that information in the design process

Government organizations present a different challenge since customer focus is not something that is generally paid much attention to there What we find is that in the public sector you have a captive audience When you think about going to any public-sector organization ndash any city council or the mayorrsquos office etc ndash you are not there by choice As a result people within those environments lose sight of value because their remuneration is not tied to customer satisfaction instead they tend to be very internally driven and focused more on specific procedures that need to be followed and adhered to no matter what They donrsquot try to make things user friendly because they donrsquot have a natural customer focus built into their organizational DNA This is a major struggle in government

Similarly in the case of education customer focus is not a concept that is always embraced or translated in a way that produces desired results for stakeholders Individuals seem to forget or try to get around the idea that students are actually critical customers They are the deliverables of the entire educational system and their tuitions fund the school yet

despite this reality you still find professors and administrators who lose sight of who the customer is Again you have a service being provided without any dialogue or feedback and the people who are paying for it donrsquot get to ask any questions The customer focus is not very strong

Finally in healthcare everybody understands customer focus Everybody is panicked about the patient the safety of the patient and the care the patient needs But the system is not designed to deliver effective patient care they have not structured the system with that in mind Instead cost efficiencies and utilization take precedence

2 Leadership Commitment

Leadership commitment is also very critical to any Lean Six Sigma rollout What we typically find is leaders who are experts in their fields but who have limited or no knowledge of Lean Six Sigma they may hear of the terminology and think it sounds like a good thing but when itrsquos deployed they donrsquot get involved Companies that are successful in Lean Six Sigma are ones where management has been on board and an active part of the rollout from the beginning If management understands what Lean Six Sigma is about they can demonstrate the value it delivers therersquos a connection between processes and

business priorities and they can be more proactive in their involvement of Lean Six Sigma when these connections and the impact of their improvements are made clear to them

Traditionally leadership commitment in Lean Six Sigma has been weak no matter the industry In the manufacturing environment managers in some cases have bought on but in healthcare education and government leadership commitment is still weak In most cases itrsquos unfortunately one of the weakest links of any Lean Six Sigma initiative

3 Organizational Culture

A major problem in many organizations is the insufficient use of data not having the right data or not understanding how to use the data These stumbling blocks can have a tremendous impact on the culture of an organization since there is a strong psychological component attached to performance data This psychological component isnrsquot just related to how data is collected but also to how itrsquos viewed and the response it elicits For example when performance data is used to point out who went wrong theyrsquove in turn introduced a culture of fear that precludes the collecting and effective

use of data In turn this results in fewer people using the performance information and can also lead to people actually fixing the numbers because they know that data will be used against them The psychological component is critical

Also important is teamwork and collaboration across departments Wersquove seen more movement towards collaboration in the past 10 years in the manufacturing industry where certain initiatives have forced people in that sector to be more collaborative than they were originally A good example is concurrent engineering which allows for products and processes to be developed and refined by teams of people some of whom may work in the same building while others are in a different city or country their processes and goals are aligned to ensure a common output

In sectors where collaboration is less evident there are indications that this is partly due to strong departmentally driven organizational silos that prevent the collaboration needed to get to the next level As such the concept has had little impact in these organizations which most people characterize as being rule and process driven When presented to work together to improve performance these organizations are more likely to find out where the problem exists to ensure the right people are held accountable instead of using the cross-functional platform to ascertain how the organizational process of one or many departments can be improved to ensure better results in the future

If you are just beginning a Lean Six Sigma project and run across an organizational culture that is built on fear and mistrust or one heavily influenced by departmental silos and rules yoursquoll have to leverage Performance Management and demonstrate its benefits as you slowly align groups and people to a common set of goals and objectives while along the way you link to processes If done properly this key success factor will ensure you maintain the momentum needed to effectively engage and implement Lean Six Sigma and Performance Management

4 Company Strategy

If a company strategy is not embraced at the start of a project you can go down the path of putting together a Performance Management system and working on Lean Six Sigma with no alignment to top-level strategy or mission You many find that many projects will have no clear link to the direction and overall

purpose of the company Therefore they wonrsquot drive the right results The whole initiative will become short-lived as a result because when therersquos a crisis everybody will just move in a different direction

Everyone needs to understand the company strategy This will ensure that corporate strategy drives Performance Management that your improvement initiatives are closely aligned to top-level goals

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and KPIs and that your people naturally work on the right projects

Demonstrating this linkage and the success you can attain by engaging the process properly can build the business case Another way is to demonstrate what can happen if you donrsquot fix the problem and its overall impact on the organization

5 Process Management

Process management is a foundation on which to build a cross-functional silo which is a good thing because it allows you to break through the traditional barriers associated with processes which for the most part tend to be focused around individual departments or business units Introducing the concept of process management into an organization can be disruptive especially if this individual is tasked with looking at the linkages of business processes across departments and how they can be improved

Most organizations typically already have departmental managers who run functional areas Whatrsquos missing in most cases are process managers who are tasked with focusing on critical cross-functional processes key to the survival of the organization and to the elimination of waste and increase of value through overall improvements

In organizations with siloed ldquofunctionally drivenrdquo cultures disconnects between different departments create waste and over time this erodes value To ensure success any improvement effort needs to be executed carefully facility by facility or function by function looking at processes baselines and at collaboration across these areas This is key to eliminating inefficiencies in organizations

6 Support for Change

Itrsquos important to recognize that Lean Six Sigmarsquos integration with Performance Management is providing many industries with a new way of looking at running complex organizations As such it needs to be embraced by everybody People need to have a positive view of Lean Six Sigma and the organization has to be prepared for the suggested changes Many times individuals misinterpret recommendations as an attack on how they are executing their duties but actually Lean Six

Sigma can be leveraged to amplify the efficiencies of individual departments by ensuring the same level of scrutiny is applied at process junction points

When managing change it is important to take into account the characteristics of the industry in question including the history of the organization the organizationrsquos overall cross-functional culture and the attitudes of its workforce and management In many instances people donrsquot want to initiate change because they think any new process is a phase that will soon pass and that theyrsquoll be returning to business as usual at some point in the future To ensure these difficult situations donrsquot impede on the Lean initiative there has to be some kind of orientation that has to match the industry in question whether itrsquos government manufacturing health care etc

7 Performance Measurement

Companies must identify their true performance drivers or Key Performance Indicators as opposed to measurements that are collected regularly that donrsquot relate to anything Often those numbers have been created randomly which means theyrsquore not driving organizational performance and as a result wonrsquot provide the insight needed to make informed decisions In other cases these measurements are in place because at some point in time someone thought they would be a good idea but under more careful scrutiny they reveal very little For many this problem exists because people donrsquot know the difference between a metric and a Key Performance Indicator

Performance metrics are measures of an organizationrsquos activities and performance Performance metrics should support a range of organizational needs in order to provide proper performance insight While traditionally many metrics are finance based ndash inwardly focusing on the performance of the organization ndash metrics may also focus on performance against customer requirements and value and also include information and performance insight into employees and processes

As mentioned a criticism of performance metrics is that many organizations choose measures that have little value In most cases this is caused by selecting what is immediately measurable even if these measurements have low value and by a tendency to ignore high-value measurements simply because they seem harder to measure

Key Performance Indicators (or KPIs) are financial and non-financial measures or metrics used to help an organization define and evaluate how successful it is typically in terms of

how it is making progress towards long-term organizational goals KPIs can be specified by answering the question lsquoWhat is really important to different stakeholders both internally and externallyrsquo KPIs differ depending on the nature of the organization and the organizationrsquos strategy They help to evaluate the progress of an organization towards its vision and long-term goals especially towards difficult to quantify knowledge-based goals You can measure a process with many metrics but only a few of those metrics are key for your organization (for example based on your business strategy andor operational improvement initiatives)

The intent of performance measurement is not just to have measurements but to have the right measurements at the right time in the right place and to make sure that those measurements drive overall performance Itrsquos key for setting a foundation for Lean and Six Sigma If there is a good performance measurement system in place that takes into consideration Key Performance Indicators or key drivers then it becomes much easier to set up the entire project

8 Problem-Solving Skills

Performance Management systems become key indicators to groups of individuals within an organization helping them to measure their own performance Without performance measurement without a good system in place they have to wait for their boss to tell them theyrsquore not doing the right

thing Performance measurement then offers a mirror or a type of feedback mechanism on how well a process is doing Problem-solving skills meanwhile provide you with the tools to do something about it

A lack of problem-solving skills can be a major stumbling block for people and organizations they may be measuring things but if theyrsquore not doing anything with the results that becomes useless Recognition is only the first step having the skills to do something about it is the second Itrsquos the critical second half to Performance Management

While problem-solving skills ndash in the manufacturing environment at least ndash have become a priority over the last 10 to 15 years theyrsquore still not ingrained into the industryrsquos DNA People coming into the workforce are coming without proper problem-solving skills and they have to learn them as they go But one problem is that information silos exist and because individuals are not seeing across those silos they miss the solution to the problem at hand Thatrsquos one barrier A second one is that people often think that problem solving is for someone else that itrsquos not part of their job description Theyrsquore not trained in problem solving they donrsquot know how

to recognize problems and identify problems and describe problems and find the root causes of problems Coming up with a structured methodology for problem solving and problem resolution is a piece thatrsquos missed across the board

This is the main reason why problems occur over and over again because people are aware that theyrsquore occurring but donrsquot know how to respond to them they donrsquot have the skill set to do so Moreover theyrsquore often not even allowed to do so because itrsquos not part of their job descriptions Or some problems might be initiated between departments which means that without a culture of collaboration things donrsquot come together

When yoursquore solving a problem it canrsquot be a random event it has to be with structured methodology Before anything a scope must be determined What is the problem How do I identify the problem How can I measure that this is a problem Whatrsquos my baseline performance Now that I know my baseline performance whatrsquos my root cause And the root cause has to correspond to drawbacks that exist in the system that are preventing you from achieving a certain objective

The number one reason why we canrsquot solve problems is that we canrsquot describe them and you can only describe a problem if you have a measurement system in place that helps you understand where you are In any environment a problem is defined as a gap in performance between where you are and where you want to be Thatrsquos it If you canrsquot describe the problem in those terms then you canrsquot solve it Many organizations will say that communication is their biggest problem and they canrsquot seem to resolve it But why not Because communication is a symptom of whatrsquos happening not the problem itself Most times people respond to symptoms and not to actual problems

Finally often when a problem occurs the first thing asked is lsquoWho is at faultrsquo But if thatrsquos the first question then the chance to resolve the issue is immediately lost Because if you ask lsquoWho is at faultrsquo everyone immediately tries to protect themselves if someone feels that they could be at blame then theyrsquore not going to come forward to try to solve the problem ndash rather their objective is going to be to protect themselves When this occurs because they donrsquot want to be at fault they might generate another piece of data to cover themselves another procedure on top of another procedure That only adds more complexity and generates more waste Which is why the first question should always be lsquoWhy did it happenrsquo instead of lsquoWho is at faultrsquo

9 Business Intelligence

You canrsquot run an organization department or process based on data that you received a month ago Which his why in todayrsquos environment information applications need to provide you with up-to-date real-time data in addition to the summarized performance information that can be used to identify potential longer-term performance issues

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Everybody within the company needs information and uses data In most cases employees are interacting with real-time information and making decisions based on historical performance The problem is people tend to want to report on everything which preoccupies employees and takes them away from their core duties Fully integrated Rich Information Applications address these issues by providing employees with real-time enterprise data using a single version of the truth delivered in a dynamic environment that allows any user to interact and modify the information to answer business questions specific to their function

10 Human Resources

Finally one of the things that also has prevented success and is sometimes a stumbling block for Lean Six Sigma deployment is the fact that the training programs that are rolled out by human resources may not be closely aligned with the companyrsquos mission

Once a company starts down the path of Lean Six Sigma the human resource systems need to change alongside it At the heart of Lean Six Sigma is a team approach reward and recognition systems need to reflect that so human resource systems will need to address it

Also critical is that team building has to occur across functional silos You have to build teams and people have to collaborate Human resource systems will drive that

Conclusion

To summarize itrsquos clear that when executed properly there are tremendous benefits associated with an integrated Lean Six Sigma Performance Management initiative Organizational Performance Management information provides strategic information and communicates progress towards a set of goals or objectives across the organization but in instances when things go wrong Performance Management alone does not provide a means to systematically and consistently address problems that arise in the business process or production realm This is where Lean Six Sigma can help assisting organizations in addressing these defects to ensure better results in the future

Norma Simons is president of Simons-White amp Associates a performance consulting company in Ann Arbor Michigan that has been in business for over 16 years and employs performance improvement systems such as Lean Six Sigma Quality Management Systems Business Operating Systems and Balanced Scorecards Certified as a quality engineer reliability engineer and a Six Sigma Black Belt Ms Simons has an MS in industrial engineeringoperations research from Wayne State University in Detroit Michigan Contact Ms Simons at nsimonssimons-whitecom or visit wwwsimons-whitecom

In instances when things go wrong Performance Management alone does not provide the means to systematically and consistently address problems that arise in the business process or production realm This is where Lean Six Sigma can help

ldquo

rdquoldquoWith the Actuate BIRT Performance Scorecard in place now we are able to communicate lsquowhat is important to the organizationrsquo across hierarchies and geographies seamlesslyhellipcause-andndasheffect maps have become the basis for all reviews and prioritization of strategic initiativesrdquo

- Gopal Sharma Senior Manager Business ExcellenceVoltas Limited Dubai

To deliver on its mission to provide high quality cost-effective project management and engineering services to customers throughout Asia Voltas

Internationalrsquos Electrical and Mechanical Division (EMD) adopted the Balanced Scorecard (BSc) as a tool for strategy deployment in 2004 The BSc was designed for EMD in line with the strategic objectives and cascaded further to all units and business heads for effective implementation The measures were tracked on a quarterly basis using Excel spreadsheets

Tracking BSc measures through spreadsheets proved to be ineffective in tracking progress on divisional performance

measures Moreover due to lack of integration the Performance Management tracking through BSc was limited to financial measures only The non-financial measures were not tracked due to lack of aggregation of data across levels and geographies This led to misalignment among various functions resulting in ineffective strategy deployment across the division

The major hurdle was ensuring the integrity of the performance data on non-financial measures hence an integrated system was required to ensure the flow and aggregation of data across all levels Also the reporting structure on various key performance indicators (KPIs) was not streamlined for effective Performance Management in the division

The situation prompted Voltas to seek automation of the Balanced Scorecard with integrated tracking and monitoring of the KPIs related to strategic objectives of the company

The SolutionA team was formed to explore more robust Performance Management tools Voltas conducted its due diligence in

Putting the Wheels Into MotionVoltas Views a Dramatic Shift Towards Transparency

Alignment and Dynamic Response

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finding an appropriate solution and in December 2007 chose the Actuate BIRT Performance Scorecard as its Balanced Scorecard solution

The software was customized in-house to the divisionrsquos needs and implemented across levels and locations The major challenges overcome during implementation were

bull Complexity of location structure and measures structure This sophistication and flexibility was a requirement to ensure the integrity and correct aggregation of the data and needed to be incorporated into the overall system

bull Aggregation of financial performance data from different countries in different currencies Led by the local support team and Actuate partner EU Partners a currency conversion facility was created to overcome this hurdle

bull Software access through smart client route at project sites A weak internet connection problem was resolved by Actuate Customer Support which installed the clientrsquos executable file on the local PC An Excel import and export tool is used for data updates to the system

About VoltasElectrical Mechanical amp HVAC Solutions (International) is part of Voltasrsquo Electro-Mechanical Projects amp Services cluster Established in 1978 as Voltas International Limited (a wholly-owned subsidiary of Voltas Limited) to handle international business interests the business looks after core business activities in the Mechanical Electrical amp Public Works (MEP) project areas specifically turnkey projects in

bull Electro-mechanical works comprising electrical building services HVAC (heating ventilation amp air conditioning) plumbing public health fire fighting ELV amp specialized systems

bull Electrical power projects

Voltas Limited a TATA enterprise offers engineering solutions for a wide spectrum of industries in areas such as heating ventilation and air conditioning refrigeration electro-mechanical projects textile machinery machine tools mining and construction equipment materials handling water management building management systems indoor air quality and chemicals EMD is one of four independent business-specific clusters within Voltas Ltd each with its own facilities for market coverage and service to customers

All of the above challenges were addressed easily to match the companyrsquos needs thanks to the versatility and customizable features in the BIRT Performance Scorecard

The initial rollout of the Performance Management system started in March 2008 with successful system deployment across all locations by the end of August 2008 The implementation involved user training on the software and BSc measures

Benefits

All business reviews are now being conducted online in the system both at the regional and corporate levels Managers can view the status of each project by just logging in as well as review and approve actions planned by the project lead without waiting for any formal performance review meetings This has led to a dramatic shift in the way Voltas manages its performance and has improved the transparency in tracking KPIs

Major benefits derived from the implementation are as follows

Solution OverviewIndustry Engineering Services

Company Size $400 million 3800 Employees

Challenges

bull Spreadsheets ineffective in tracking divisional performance

bull Non-financial measures were omitted due to data integrity issues lack of aggregation

bull Strategy unevenly deployed leading to misalignment

Solution

bull Actuate BIRT Performance Management Software Suite

bull Integration consulting services

bull Customized smart client

Benefits

bull Transparency in tracking KPIs all in one place

bull Alignment of action plans to division strategy

bull Dynamic Performance Management timely reviews

Design Stage

bull Measurement system evolution and refinement during system configuration

bull Clear consensus on KPI definitions and descriptions

bull Minimal support required during configuration and implementation

bull User training and access with individual user ID and password cementing ownership and accountability of the scorecard across hierarchies in the division

bull BIRT Scorecardrsquos ease of customization to business needs enabled instantaneous execution of required changes in the system

Rollout and Implementation

bull Strategy Map and other Cause amp Effect Maps have become highly illustrative in communicating the relevance of various measures and their integration with strategic objectives

bull Action Plans are fully aligned to divisional strategy and can be monitored online

bull Timely business reviews and dynamic communication of performance

bull All key performance indicators are tracked and available in one place business performance reports are generated as and when required

Going forward Voltas plans to roll out BIRT Scorecard access to its subsidiaries and to joint ventures in order to track the Balanced Scorecard of allied companies on the same platform The goal is to use it as a comprehensive Performance Management tool for the international operations of the entire company

Voltas has branch offices in Abu Dhabi Dubai Qatar Singapore and Kingdom of Saudi Arabia For more information on the company visit wwwvoltascom

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In todayrsquos economic climate careful decisions are needed to help

business remain competitive and to continue to succeed To stay smarter they need to build deploy and maintain business-critical reporting and information applications

Open Source Business Intelligence while it comes with its own set of technical challenges and misconceptions is often the right solution to deliver that Actuatersquos Business Intelligence Reporting Tools (BIRT) Open Source solution ndash developed with the Eclipse Foundation ndash is one example of a robust and web-centric Open Source Business Intelligence tool

The Open Source Model

An economic shift has occurred in the past decade introduced with the rise of the internet The internet provides connectivity which in turn connects demand to supply this removes the capital equation and shifts conditions in the market People with computers all over the world provide the means of conduction and with easy ways for these people to connect they can easily collaborate on projects with very little infrastructure This in turn led to the popularity of Open Source

Open Source has had many consequences for the enterprise software market primarily by making it a commodity market and by driving down price It also allows people who have a desire to do something to make money from doing it Production inputs are widely distributed and the raw materials are there to produce things in new ways Many argue that this shift has been about software licensing but actually it is largely about the production and distribution of software it is therefore a change that is more about economics that about ideology That economic base ndash the combination of connectivity of easier ways to market produce and distribute software and the fact that the internet acts as a giant copying machine ndash changes the conditions under which software can be sold That is why Open Source continues to disrupt the market and to force vendors to come up with new ways to cope with it Enterprise software is not going away rather it has been forced to shift

A 2008 survey by North Bridge Venture Partners asked Which sector of the software industry is most vulnerable to disruption by Open Source At the top of the resulting list was web publishing and content management a market thatrsquos currently highly fragmented and therefore perfect for introducing Open Source products The second sector was social software an entirely new category that has been difficult to define and difficult currently for commercial vendors to make money from again Open Source is the ideal solution

Business Intelligence was the third sector listed in the North Bridge survey Again this is understandable since BI tools and data warehousing tools are exactly that tools While end users consume the outputs theyrsquore not themselves often put into the hands of end users rather IT sets up the meta-data defines metrics etc Which means Open Source is targeted at the right audience there is a platform in a data warehouse that has multiple layers any one of which can be Open Source or

LEVE

RAG

ING

O

PEN

SO

URC

E

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proprietary Those modular boundaries make Open Source an ideal fit

What IT Looks For

IT acts ndash for the most part ndash as the gatekeeper to Business Intelligence When searching out new software IT generally looks for three things

1 Better alternatives to the status quo Specific features that are better for example

2 Ways to cut costs With commodity infrastructure in place IT has to try to drive down costs

3 Unique attributes There may be something they want to do but cannot do using their current system or features that might not be available (For example their mainstream BI package might not have web-accessible dashboarding that can be self-service)

Why Open Source

In addition to examining the sectors left vulnerable by Open Source the North Bridge Venture survey also asked What makes Open Source attractive Price was the most popular answer In addition to the capital cost of licensing Open Source drives down acquisition cost as companies no longer have to go through heavy proof of concept Itrsquos also easier to trial things and if license costs are less then maintenance costs are also less Finally unbundling maintenance support and service means that businesses can choose from a menu of services instead of being forced into a 20 percent single lump fee

The study also showed that companies found that Open Source offered freedom from vendor lock-in In addition it is flexible with easy access to commodity code in order to develop embed and build content into websites

Another 2008 study by The 451 Group gave a list of what organizations saw as benefits to Open Source once it was already introduced At that point flexibility ndash by 05 percent ndash came out over cost In this instance though the definition of flexibility was different respondents were impressed by the fact that there is no vendor that dictates when they have to upgrade how they have to upgrade and why they have to upgrade For a commercial vendor at end of life or desupporting versions of their software a sales and marketing schedule will often require a release every Q1 whether they are ready or not As a result

companies will be forced into an upgrade they donrsquot want that was released simply because marketing dictated it and not necessarily because it was ready Open Source is typically not under those same types of pressures

Buyers were also impressed by scaling costs if an organization has 50 initial licenses and pushes it out to 150 more people in BI lowered costs come in beyond the initial capital costs As well companies are not dependent on vendors for service or for additional pieces of technology

Whorsquos Adopting

Open Source Business Intelligence adopters include

bull Independent software vendors solution providers and OEMs They are taking Open Source BI and pushing it into products that need reporting and dashboards Theyrsquore beginning to build capabilities using Open Source into quality networking gear file servers and databases

bull People who have traditionally been underserved and have not been getting what they need for whatever reason They may not have had the budget or their current vendor might not offer some of the functionalities that they want Possibly it could be over-serve at least half of the features in a major BI stack today never get used

bull Developers Web developers provide information ndash especially database information ndash on their websites while internal developers have to build reporting features into applications and typically do not have access to the tools they need Tools like BusinessObjects and MicroStrategy live in a data warehouse in a different area of the organization and canrsquot be embedded easily

In terms of the organizations adopting Open Source BI many are on the small side with less than $100 million in revenue But very large organizations are just as likely to adopt Open Source solutions as well This is the inverse bell curve of Open Source BI implementation

Smaller-sized organizations have fewer data sources and more manageable data volumes are more interested in cost flow and also donrsquot have the same level of data volume and complexity that might exist in a medium-to-large organization or deployment Much more manageable data volumes less cost to scaling and fewer technology issues in terms of complexity make these ideal environments for Open Source

Open Source drives down acquisition cost as companies no longer have to go through heavy proof of concept ldquo

rdquo Large organizations though have equally ideal environments They arenrsquot for the most part introducing Open Source at an enterprise-wide level but rather have projects with specific features that need to get done The project in question may exist only within a single department which pushes down data sizes and deployment complexities making them a good target

Introducing Open Source BI

Open Source BI use often comes in at the edges and results from discontinuity An example of such a discontinuity might be a company restart many data warehouse projects started with a particular data model ndash copying a production database and putting reporting on it for example ndash and have to do a schema change At that point the cost of switching from one BI tool to another or from one ETL tool to another is fairly low Everything has to be changed anyway metrics change schemas change queries change The same is true with platforms moving from one database to another involves an integration of an entirely new set of systems These discontinuities often allow for the introduction of Open Source

New interface requirements can also lead to Open Source implementation as a company attempts to bring data-warehouse data into an application deploying it out through a website or via an application But some users may only need a few single simple production reports and donrsquot need to be served through a tool that costs between $1000 and $1500 per seat which is the average per-seat deployment cost of iTools Companies can reserve their BI tools for core individuals who need the flexibility and features and can build Open Source into applications for large-scale but simple reporting

In fact in most cases organizations donrsquot replace an entire system with Open Source That only happens in the cases of large discontinuous change where the features are good enough in an Open Source tool the deployment matches and there is no reason for pushing through a high-cost high-complexity solution Whatrsquos more likely to happen is an augmentation where a particular department ndash or a segment of users or particular class of tool ndash is given something that they need in Open Source For example a BI tool might be good and flexible with interactive reporting that can get production reports out and do the schedule but perhaps doesnrsquot have statistical features rolling out something like R to only a couple of analysts and layering that on top of the warehouse may be the solution

Augmenting and bringing in new features and capabilities in areas where Business Intelligence tools might be weak is typical of Open Source implementation This is an opportunity to augment an existing environment in a cost-effective manner to build features into that environment and to get the features specifically needed without paying for a whole package that isnrsquot all necessary

In contrast with what happens in the case of most traditional models much of the time the need for Open Source applications comes from the bottom-up and is established from a point of need from a developer or a department trying to get something done There are no enterprise sales representatives making calls or going through a procurement process where vendors and financials are examined There is also the ability to put something out in real terms instead of relying on a fake proof of concept where following that proof of concept companies are forced to either pull out and throw it away or to license the software

Roadblocks to Implementing Open Source

Misconceptions still exist around Open Source based largely on the idea that these projects are being developed by teenagers in their parentsrsquo basement a myth that is more than a decade outdated as today Open Source projects are generally run by commercial Open Source providers with paid developers Still a lack of information can prove a problem for organizations introducing Open Source This often plays out in the legal department which reviews all contracts and may not be informed when it comes to Open Source software licenses An Open Source license will be missing half the standard clauses the lawyers are used to clauses of restriction that dictate how to deploy what can be deployed where it can be deployed and how the software can be used Most Open Source licenses do not have these same clauses and lawyers will want to know why theyrsquore missing That can be another road bump in getting the software acquired

Support can also be more confusing Most major projects have commercial vendor support behind them But unbundling is also available which means buyers donrsquot have to purchase support but instead can buy the subscription model that covers only bug fixes integrated patch testing and certification against databases This is because enterprise support is often overrated more often than not internal support solves more problems than the vendor does

Augmenting and bringing in new features and capabilities in areas where BI tools might be weak is typical of Open Source implementation ldquo

rdquo

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Implementing Actuatersquos BIRT Open Source Technology

BIRT Actuatersquos Open Source technology was developed with the Eclipse Foundation and does an exceptional job in meeting web-reporting requirements while utilizing the Open Source model Itrsquos a Java tool with a web-centric development and design paradigm BIRT reports are built with the intent of publishing to the web exclusively or more exclusively than is the case with other alternatives that are typically intended originally for paper BIRT is also very modular and very component based allowing users to do as much or as little as they want to deploy as much or as little as they need when theyrsquore creating their reports or embedding this technology within their environment

One of the goals of BIRT is to cater to the power that is needed for many of todayrsquos reporting projects but also to offer the simplicity that means an individual report creator can be very effective at doing their job simply by using the BIRT design tool itself That goal has proven successful so far with 65 million downloads of BIRT since the projectrsquos inception 45 million of them in 2008 alone BIRT is in fact one of the fastest growing Open Source projects on the internet right now

BIRT does a great job of supporting a wide variety of report types it supports BRD Pro BRD BRS and IV and as users

build components throughout the project they can reuse those elements in subsequent future reports It also supports standards such as HTML cascading style sheets JavaScript Java and XML adding the underpinning technologies for either customization or enhancement and allowing developers to leverage BIRT while using the skills that theyrsquove already developed As an integrated report development environment BIRT also provides graphical and robust tools for the most common reporting tasks including query building ndash such as graphical object layout ndash and representing such as charting As well BIRT includes both online help and documentation

Itrsquos an incredibly robust tool and is capable of being embedded of being delivered to small groups or across the enterprise leveraging Actuatersquos commercial platform New capabilities include the ability to add interactive Flash objects into the environment to build personalized dashboards to create ad hoc reports and to create interactive viewing Actuate also recently introduced the JavaScript API which allows users to embed approximately a dozen lines of JavaScript into any webpage and from that access any content within the Actuate environment including any BIRT report that is hosted in that environment which in turn can be delivered to any type of JavaScript-enabled browser

BIRT is built in the Eclipse Project Actuate sponsors and chairs the project management committee for the BIRT project It is Actuatersquos third reporting technology built from scratch which means there is a high degree of long-term experience integrated into the BIRT environment

How the End User Benefits From BIRT

BIRT comes complete with 65 million sets of eyes worldwide looking at it and suggesting changes That has driven its enhancement in the marketplace The overall number of committers on BIRT historically is high and the current level of committers on the project remains high itrsquos nearly the same as Apache committers in the market today

Actuate ndash in its sponsorship of BIRT ndash has added and created a community called BIRT Exchange which is a resource for the BIRT development user to continue to enhance their BIRT expertise and to continue to gain help if needed from the BIRT community No question goes unanswered on BIRT Exchange which is at odds with what people often find in other Open Source forums where a huge number of questions remain unanswered from the audience Within the BIRT Exchange environment there are three different forum administrators who make sure every single question is answered BIRT Exchange also hosts the documentation for the entire BIRT product line as well as videos and webinars designed to further the training and adoption of BIRT itself

Actuate employs more than 50 developers on the Eclipse project itself with documentation and publications available in support of the project available at amazoncom

Actuatersquos Value Add

BIRT is modern and flexible and open Since itrsquos built within the Eclipse Project anyone who knows Eclipse knows how to use it Actuate adds interactivity which take the form of Flash widgets embedded into the BIRT development environment ndash allowing users to build their own types of dashboards ndash or through interactive viewing to transform a report from being static to something an end user can manipulate and evolve over time This is important because reports typically become obsolete quickly the requirements that they originally meet changes as users use the reports to become smarter and then the questions they want answered change Which means that providing this kind of interactive content is key to the success of a Business Intelligence project

Extending BIRT Capabilities

BIRT development tools and the BIRT engine are available as Open Source and are widely distributed Typical capabilities such as JavaScript and SQL skills are required to become familiar with the BIRT product

The second level of capability is the ability to embed BIRT within applications and to begin to add degrees of interactivity to the environment such as Flash widgets or the interactive viewer This allows a user to create robust rich embedded applications

The third level is for workgroup or departmental-style applications or small organization-type applications To adopt this type of Open Source technology individuals would introduce BIRT plus the single server iServer Express a hybrid of Open Source and commercial technology

Finally there are organizations that seek enterprise-caliber or enterprise-level deployments that want to publish BIRT applications outside the firewall to secure these applications for millions of users and to support very high degrees of performance and reliability This type of scalability requires both good design and trial and error as operating systems platforms and other elements continue to evolve Maintaining best performance for very large-scale environments means making sure that each one of these items is optimized

Open Source Vs Commercial Technology

The overall platform that BIRT delivers is a complete set of both development and deployment options for creating any type of environment Users can be characterized across a number of different lines from incredibly skilled Java developers to everyday report developers from people familiar with Actuate to those who are not from power users to business users etc

There are two fundamental questions that these users need to answer

1 Is BIRT the right technology for the application theyrsquore creating

2 Whatrsquos the best way to deploy it through Open Source or through commercial deployment means

The answer to the second question is reliant on a number of variables In the following situations for example Open Source would be the ideal alternative

bull Those users who want to use BIRT for individual use

bull Those who want to embed it into their own project

bull An ISV who has the technology in their own application to support printing and baked-in reporting needs

Converting to or supporting a commercial model meanwhile occurs most frequently at the enterprise-server level for organizations deploying the environment to hundreds or thousands of users It supports a wide variety of types of users

But both the Open Source and commercial models employ a common report design format Itrsquos a progressive development experience or a collaborative report design and collaborative process allowing each user to participate in the definition and the evolution of their reporting environment while at the same time using tools that are appropriate for their skills a novice user isnrsquot being overwhelmed by too many features while the power user or the highly skilled users receive exactly the right kind of technology and level of development capabilities theyrsquore accustomed to

Yet some of the decision-making criteria lean more effectively towards a do-it-yourself situation using the Open Source type

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of model and some lean more appropriately to a commercial investment and a commercial tool A growing level of complexity often drives commercial interest but certain complex functionalities ndash including supporting web services or web services SQL or other examples of integration techniques ndash the Open Source model is more than capable of supporting on its own

The applications Actuate deploys are information applications When choosing the paths of how to proceed ndash with regards to choosing either the Open Source or commercial interest ndash there are typically four premises to consider in an information application

1 Is the report or the application able to consume and collect data from one or many sources whether itrsquos a single report or a complex application Typically when the data sources are simple and the data connections well understood either Open Source or commercial interests are appropriate With meta-data layers and extraction layers the commercial model tends to be more effective But if itrsquos an embedded project using POJOs or other Open Source or specialty connectors ndash unique connectors ndash that often keeps a project more suited for an Open Source deployment

2 How is it able to aggregate and transform that data into meaningful information Looking at aggregation the same premise holds true if therersquos simple aggregate functions or automatic cross tabs or even custom or reuseable business functions both the Open Source and commercial models are appropriate In terms of embedded Java functions those aggregations are appropriate in either case Itrsquos when entering into areas of security ndash of parameter-driven values dynamic-parameter collection cascading menus etc ndash that a commercial purchase tends to excel over the Open Source version

3 What are the presentation options or formats available to present that data When the presentationrsquos fairly simple both Open Source and commercial apply When

charting cross tabs and embedded graphics are the norm then the two are served both in Open Source or commercial interests When JavaScript is starting to be used as a customization or a dynamic-properties delivery vehicle both the Open Source and commercial models are effective although keeping this content embedded within an environment is probably more appropriate using Open Source Itrsquos only when introducing elements such as interactive viewing capability or the ability to manage an environment through a management console capability that the commercial option begins to edge out

4 Are we able to achieve the levels of scale that we need to get that information out to every user whorsquos interested in it When individual use is appropriate Open Source is a better fit When transient content is what a company is delivering thatrsquos usually a better fit with Open Source as well as is embedding To support a collaborative reporting effect or to support a variety of developers and users ndash especially users with different skills ndash the shift begins to move towards a commercial style of delivery When therersquos custom delivery required such as JavaScript API the commercial environment is also more appropriate

These are the capabilities of different deployment options for both the Open Source platform as well as the Actuate commercial platform geared towards allowing organizations to get the value that they most see fit within their environment or their application Typically for environments that have a heavy requirement for infrastructure thatrsquos what drives the commercial purchase whereas customization or individual interests typically drive Open Source

The key thing for any organization is to first decide what kind of reporting technology they need ndash whether it be Open Source or commercial ndash and then to look at their own needs And finally consider the BIRT environment as a vehicle that meets web reporting needs

For more information on BIRT visit actuatecom

A growing level of complexity often drives commercial interest but certain complex functionalities ndash including supporting web service or web service SQL or other examples of integration techniques ndash the Open Source model is more than capable of supporting on its own

ldquordquo

One of the benefits of Actuatersquos Business Intelligence Reporting Tools (BIRT) is that very capability for flexible functionality thatrsquos adjustable to usersrsquo needs Every component of the BIRT technology ndash whether in the Open Source or commercial versions ndash builds upon the components before it creating a robust and flexible system designed to meet each organizationrsquos unique Business Intelligence needs

Choose the Right Graphical ToolThe first step towards evolving organizational Business Intelligence is choosing the right graphical tool The Eclipse BIRT technology for one is a visual designer thatrsquos geared at report developers as well as JavaScript and Java developers and can create a wide range of reporting technologies and web reports BIRT builds content that is specifically intended for the web and uses techniques that are expected when building web pages and web content It doesnrsquot use a banded report writer design or development metaphor typical of many older report-authoring products including Crystal Reports or Jasper

BIRT is the third from-scratch product that Actuate has sponsored and developed and as such it takes into account more modern capabilities and techniques for developing web content In building BIRT Actuate has drawn from its extensive market knowledge borrowing best concepts from other products as well as from its own Reusability and the ability to include programmability within the environment have been traditional Actuate capabilities that have been included in BIRT but BIRT technology also uses de-facto standard programming capabilities such as embedding JavaScript and Java into the application rather than using a proprietary language

Open Source is the core reporting capability and value-added commercial products can be added to it More than 50 developers are employed by Actuate on the BIRT Open Source project similar to the number of developers Apache has applied to the Apache project Alongside these Open Source developers are Actuate developers working on the commercial product of BIRT

Open Source BI

Cost-Effectively Deploying

When deploying Open Source Business Intelligence technologies multi-layered functionality that can be added as needed serves to create a cost-effective way to build a solution specific to an organizationrsquos needs Each function acts as a building block as a company creates exactly the capabilities necessary for the job on hand without wasting money and resources on items that arenrsquot needed

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Another benefit of BIRT is the BIRT Exchange community Actuatersquos user forum which is far more robust and extensive with documentation and help information than has been found traditionally Nearly every forum post has an answer to it in some form which is not likely to be experienced with any other Open Source project or forum-based community Meanwhile the community itself is vast and growing rapidly Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate ndash where a developer may have downloaded 20 copies over its history ndash adds up to 350000 different users of BIRT technology That number is growing at roughly double the rate of the other two most popular Open Source projects

Add Value Through Features

Actuate BIRT technology has a range of features that will add value to a companyrsquos BI project

1 In addition to being a graphical report design tool BIRT takes into account the long-standing tradition of Actuate to support reuse libraries and reusability across the entire environment It is able to not only reuse BIRT objects and BIRT components ndash such as charts and tables ndash but also to incorporate and use JavaScript objects and Java libraries in the reports themselves This creates a rich experience for driving and building web-oriented reports

2 BIRT offers navigability While a user is in a graphical design tool they should be able to take advantage of some of the core capabilities that the technology offers such as a visual hyperlink builder that keeps information in context as well as the ability to create cross tabs dashboards and charting mechanisms that are active and navigable Inserting type of content ndash so that it is both consumable and scoped in context for the user ndash is important to the success of deployment Hyperlinking in context is one of the key elements to supporting Open Source deployments

3 The Eclipse BIRT environment supports a variety of graphical types or charting types including not only grids and tables but both static and dynamic images as well that can be linked back to databases or can support conditional formatting and a variety of conditions baked into the report BIRT is able to handle a large variety of chart types and styles allowing organizations to convey exactly what theyrsquore trying to deliver to their users Supporting rich charting is one of BIRTrsquos key core capabilities

4 The Open Source Eclipse engine can be embedded into or deployed from an application quickly within a JVM Users can add content generation or report generation functionality easily and quickly to their application by inserting it into their run time The BIRT engine itself is a key component in the Eclipse BIRT project It has a variety of extension points built into it which means itrsquos able to not only generate supported output types ndash such as HTML or Adobe PDF ndash but can also create custom emissions from a BIRT report such as an emitter for mobile content or an emitter for a particular report format of the userrsquos own perhaps to feed another application With a robust API structure within the Eclipse BIRT engine these are all possible

Build On Interactivity for a Richer Experience

Building onto that BIRT experience organizations can add more interactive and visual elements to create more appeal within their BI projects

Animated Flash Visuals Animated Flash visuals built into BIRT reports lend to a richer more enjoyable experience for end users They can take advantage of the navigation enhanced with the visual and animated appeal that Adobe Flash offers

The Actuate BIRT development tools include 266 Flash widgets This is one feature that differentiates BIRT Open Source with the BIRT commercial product Those who purchase the development tools from Actuate will immediately receive these Flash objects that can be deployed not only within Actuate BIRT reports but within Eclipse BIRT reports as well they are portable across both environments

Interactive Viewing Often users have a difficult time articulating their requirements to report authors That problem is alleviated when authors can deliver them an interactive viewing experience allowing the report to become changeable and adjustable by the user The user can select a particular column and can apply a filter to that column they can toggle back and forth between viewing perspectives rotate charts change the grouping of a report or add more visualization to it with something such as conditional formatting They could even navigate within the report using a joystick or deploy that report or portlet content anywhere they want And ultimately they could drag and drop and change ndash or add columns to the report directly ndash by manipulating the report as needed

This interactivity gives the end user the ability to enjoy more freedom with regards to how they use the report It also

addresses one of the biggest conundrums with regards to report delivery giving users a report provides them with content that makes them smarter and as they get smarter they take that information and they work it into their knowledge which in turn changes the questions that they ask of the report This means that what they need from a report changes over time Allowing users to modify reports themselves is a key goal in supporting BI processes because as users become smarter about what theyrsquore doing with their content they can help assist in defining what the next iterations of their web content might be

Choose the RIght Server to Store and Schedule Content

Actuate has spent the last 15 years developing the Actuate iServer It comes in two styles ndash iServer Enterprise and iServer Express ndash and offers a robust environment for creating managing and delivering BIRT report content to users on schedule on demand or on an ad-hoc basis directly

The iServer Express is a single-server deployment that is appropriate in scenarios where there is less active usage it supports a sequential batch generation capability and roughly 10 user connections per second as the users connect to the server It offers that scheduling and deployment capability at a very cost-effective price point while allowing organizations to secure their report content using the iServer repository to take advantage of some of the presentation layer capabilities that Actuate offers through its information console to present and manage that content on behalf of the users and ultimately to create a full reporting experience for users directly

Alternatively for those deploying a very large system ndash perhaps one that operates outside of the firewall in a traditional web information application ndash there is the iServer Enterprise The iServer Enterprise is massively scaleable but also very predictably scaleable as companies double the resources that they can apply to their environment they double the throughput and user numbers that theyrsquore able to support with the iServer It is also highly configurable in regards to how content is deployed and supports multi-tenet environments or multiple application environments In addition it can be componentized so that a presentation layer can be separated from a content creation layer or a business logic layer from a data management layer ndash including the meta-data layer itself ndash to help abstract and manage the queries driven

Determine Where Content Can Be Distributed

Actuate JavaScript API is a mechanism that allows the user to take a JavaScript library embed it into any HTML page and then from that JavaScript library securely access Actuate content from the iServer This particular capability allows the user to put either a report part ndash a reportlet ndash or an entire report directly into new locations This could be used as a user attraction vehicle it could be used as a dashboarding vehicle or it could be an integration point for systems that are written in NET rather than in the j2e environments that BIRT typically supports

Deliver Mash-Up Applications

Delivering mash-up applications using all of the functionalities listed above is simple in the BIRT technology and lets users themselves participate in the definition saving creation and management of their own dashboard displays and it allows them to watch exactly the KPIs that they care about

This is done through Actuatersquos Mashboard Customization to the Information Console which allows users to take any BIRT report content and to deploy it directly into a mash-up style environment where they can define exactly what pieces of content go into their application and what doesnrsquot These dashboards can also be roll-based so that particular pieces of content can be deployed to particular types of users directly then if they want to continue to customize that capability theyrsquore able to do so

Conclusion

Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques such as Flash and Ajax in a web-based design metaphor It is designed to evolve effectively over time and is meant to give organizations a choice for every type of user The first decision point of any organization is to recognize whether or not BIRT is the right reporting technology for the information application in question Once thatrsquos decided companies must choose the technologies they want to offer each type of user and then consider how they want to deploy those technologies directly

A wide variety of capabilities can be build into the BIRT environment ranging from Open Source to commercial Actuate products It is a flexible environment and is robust for delivering to users any type of information-driven web content

Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate adds up to 350000 different users of BIRT technology ldquo

rdquo Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques ldquo

rdquo

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The Challenge

Guiding a ship requires visibility into navigation operational performance and up-to-date information to make decisions This type of customer challenge drove ABS Nautical Systems

to incorporate Actuatersquos BIRT technology into its NS5 fleet management software

A leading software provider to the maritime industry ABS and its NS5 modular ERP system help customers manage principal operating expenses associated with vessels and offshore rigs ABS provided basic scheduled reporting and offered ad hoc reports in response to specific customer requests but customers demanded better functionality including the ability to easily extract and create both standard and custom reports

Producing reports to customersrsquo satisfaction took time as reporting was not central to ABS Nautical Systemsrsquo expertise Further it took valuable programmer time away from developing new features and functions for its core product This created the need for ABS to leverage a tool to provide highly-developed rich information application functionality increasing the power of its fleet management software while enabling its customers to access more flexible reporting tools

The Solution

With its own expertise in Java development and their existing reporting ABS searched for an Open Source reporting platformtool that they could leverage and seamlessly embed in their software ndash one that would deliver for ABS and their customers both immediately and for future expansion After considering Jaspersoft Actuate and Pentaho ABS selected Actuate and BIRT for their on-demand reporting solution

ldquoActuate has a clear roadmap and direction scalable platform financial stability and Open Source development platform The Actuate offering was an excellent fit because the technology

ABS Nautical Systems (NS) is one of the leading providers of fleet management software packages available to the

marine and offshore industries It offers a fully integrated modular approach to managing the principal operational expenses associated with a vessel or offshore rig ranging from maintenance and repair to regulatory requirements purchasing and inventory and crew management and payroll

SAFE AT SEAABS Nautical Systems A Case Study

ldquoBoth the technology roadmap and scaling are key It was an excellent fit for us actually ndash you had the right technology yoursquore Open Source based BIRT technology was key and you were the most helpful in helping us do the prototyperdquo

- Sandipan Bhattacharya ABS Nautical Systems

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used Open Source BIRT allowing us great flexibility in developing NS5 Actuate was most supportive in helping ABS NS do the prototype ndash both their Professional Services as well as the account teamrdquo states Sandipan Bhattacharya CTO for ABS NS

The new BIRT-based on-demand reporting tool within ABS NS5 is a web-based application that enables clients to quickly and easily generate custom reports from any NS5 module It handles reporting for the central elements of operational management ndash from regulatory requirements to payroll to planned maintenance programs But it takes NS5 beyond operational duties to consolidate data from across software modules to better monitor key performance indicators (KPIs) such as time to repair spare parts turnover and purchasing cycle times

The interactive information views that BIRT provides help fleet managers to achieve maximum efficiency empowering NS5 software users to get what they want in terms of the reports they need in the way they want them as each department or company may want to look at data in a different way Lastly that same data is more accurate because it comes as near real-time information at the time they need and can be benchmarked against how well they are performing to provide trends for evaluation

BenefitsResults

bull Speed time to market with new features by focusing on core competence in its software platform This allows ABS to focus development on its core product and improve customer satisfaction by rolling out and providing complete reporting modules This also helps decrease development expenses and support costs

bull Expand available market with completely new product lines enabling ABS to increase its client base to companies that didnrsquot know about them or had previously disregarded their offering The additional modules make the product more attractive to existing clients creating additional revenue sources for ABS

ldquoThe BIRT Open Source platform allows for a great deal of flexibility in the development stages Additionally the ease of integration into our OEM package was a great benefit Lastly the Actuate and BIRT offering has proved to be well suited to ABS Nautical Systemsrsquo needs and Actuatersquos roadmap shows what we can do in the futurerdquo states Bhattacharya

Self-serve customization drives flexibility and ease of creating reports BIRT empowers users to produce reports customized to their individual and departmental needs and preferences And as government reporting requirements change they can

Solution OverviewCompany Profile Integrated fleet management software for marine industries

Industry Software

Location Houston with offices worldwide

Challenges

bull Customer need for better more timely reports

bull Enable customers to self-serve for ad hoc needs and regulatory requirements

bull Focus on core software expertise and feature requests

Solution Integrate Actuatersquos Open Source-based BIRT reporting with ABSrsquo NS5 fleet management software

Business Benefits

bull Faster time to market broadened portfolio

bull Ease of integration development flexibility

bull Increased visibility into operations aids customer competitiveness efficiency

bull Users empowered to customize reports

Does your companyrsquos mission and vision statement place the customer at the center of your universe

Does it promise to maximize customer value and deliver the best customer experience possible If it does your mission and vision statement is surprisingly similar to nearly every other organization And much like them chances are your organization is struggling to make this vision a reality to actually reinvent itself as truly customer-centric

ldquoCustomer-centricrdquo has become the new buzz phrase thrown about at most executive planning sessions and has replaced ldquoinnovativerdquo as the new mandatory strategic language The truth is it takes a lot more to become customer-centric than changing the company vision ndash it requires a departure from years of tradition a clear look at who and what your organization is and a deeper understanding of what motivates your customers to buy from you or from your competitor Fortunately the cost to make this change is surprisingly low while the benefits and the returns can be shockingly high

Finding Your Customer

Customer-centric implies that the customer is central to the organization but this is too esoteric to have any real meaning An organization turns materials into a product or service which is then sold Everything the organization does must lead to this

event (with no sale after all therersquos no customer) This logic works for most people and most organizations and it logically follows that the focus should be upon the creation of the best possible product or service because this is what causes a prospect to become an actual customer

This logic fits nicely with traditional thinking It was popularized by Michael Porterrsquos value chain approach in the mid-80s The value chain is a string of critical processes that begins with raw materials or inputs and ends with a product or service delivered to a happy customer Thinking this way makes sense because it is easy to place the customer at the end of the process But this mind-set doesnrsquot just affect how executives structure the organization it weaves its way into every aspect of how the organization manages itself and how managers make decisions

For example the finance department performs the close process each month so that it can deliver financial information to managers with actual bottom-line responsibility These managers from executives to cost center managers are financersquos customers just as shareholders are when they deliver quarterly reports Once these reports are delivered finance goes back to the business of accounting and managing revenue and expense until the next month Engineers work to design new products that will keep them one step ahead of their competition Manufacturing produces goods to meet customer

respond more quickly adapting them by themselves instead of depending on ABS to supply reports

ldquoActuate empowers users to get exactly the reports they need the way they want them Empowerment is key as well as flexibility as each department or company may want to look at data in a different wayrdquo states Bhattacharya

Rich information drives efficiency through increased visibility and better insight into operations improving customer competitiveness With highly accurate real-time information on how well they are performing management can control both overall and specific costs of operating and maintaining their shipping fleets ldquoThey donrsquot have to wait hellip they can see all contributing factors day to day It helps improve efficiency at every level For the first time a shiprsquos captain can have insight into the operational performance of his ship while still at seardquo says Bhattacharya

Creating the Customer-Centric

OrganizationFinding Your Customer-Critical Path

By David F GiannettoCEO

The Telos Group

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orders or demand projections The sales department courts potential buyers so that they become actual customers Once they do so sales then returns to identify new targets and tries to transition them Manufacturing works to refill shelves Engineering continues developing products

Employees throughout the organization are focused upon delivering the product or service for which they are responsible The product attributes become the value proposition that will appeal to their customer regardless of whether or not this is an internal or external customer Employees are trained to think in terms of product development delivery and value The organization becomes even if it doesnrsquot know it product centric Believing that a mainstream management theory such as the value chain approach could not be wrong or outdated management is comfortable with this view of their world When they try to become customer-centric they do not know how

Making the Change

Consider for example the electricity powering the light by which you are reading this article It is a fairly simple product that was mainstreamed decades ago and except for new types of power generation it has remained essentially unchanged The traditional value chain for this industry is fairly straightforward Power is generated by a complex and often dangerous power plant and it is delivered to the customer via a complicated and often dangerous network The customer then consumes this power and must pay for it creating the

need for back-office operations such as accounting finance and customer service

Given the complexity of power generation and delivery operations the organization is staffed by a high percentage of engineers many with doctorate degrees and years of specialized training The generation and delivery assets themselves are maintained by highly-trained highly-specialized workers A large percentage of the management team also comes from this background and rose through the ranks of organizations identically structured Combined these employees represent over 75 percent of the organization

Collectively these employees create a culture that is consistent in almost every power utility in the world Their cultures respect academic achievement technical expertise and years of experience in the industry They typically believe in rigid structures inflexible procedures and consistency in design and execution They are truly product focused

Given the potential hazards it is easy to see why they behave the way they do But what happens when this type of organization has to compete in a more open market when transparency is increased or when the customer such as a municipality has a stronger voice or is under the growing influence of being green What happens when the power company must become truly customer-centric

It is nearly impossible for them to succeed Seventy-five percent of the organization has little to do with or has little understanding of the customer

Departing from Tradition

While this product focus is exaggerated within a power utility largely because of their technical nature these factors affect nearly every organization Employees who have great influence within the organization will not yield it to those who have less but who understand the customer better Funding is unlikely to shift from traditionally respected areas to those areas that most affect the customer

For a power utility this means that engineers who have often dedicated their entire lives to the study of their work must be considered equal to project managers and customer service agents most of who do not hold any degrees Money resources and staffing must focus on project management and call center technology not just on million- or billion-dollar assets There must be recognition that these areas equally affect the customer This new perspective must be executed by executives who have spent their entire careers adhering to the traditional values of the product-centric culture But this shift is what customer-centric really means truly understanding and meeting your customersrsquo needs It starts with the customer more specifically it starts with a prospect

Customer-Critical Path

This means that the traditional value chain must be rethought and renamed more appropriately to the customer-critical path A prospect travels this path on their journey to become a customer a customer travels this path toward the goal of becoming a happy customer This is the true value chain of the organization ndash a string of processes that become critical because they directly affect your customer regardless of the product service organizational chart academic degree or bias Find the customer-critical path and you can guide your customers through your organization in the way that is most meaningful to both them and you

But not all customer needs are the same even within an industry that has only one real product like a power utility The customer-critical path may start in several places meeting the needs of

several different types of customers ndash household customers that simply need power turned on or major projects that require significant project management and pre-planning Eventually these starting paths merge It will occur at the point at which all customers are happy From there they may take a different path

again some will terminate service or have new needs There is not one value chain there are many paths a customer might travel through your organization

This new approach offers significant value for organizations that adopt it It allows them to better understand their customers so that they can be more effectively segmented and targeted by products or services This drives the bottom line in several ways A stronger value proposition increases appeal thus driving revenue Better service and customer interaction improve the customer experience and increase customer loyalty driving customer lifetime value

The customer-critical path also becomes a vital decision-making tool for management It provides a clear and unbiased perspective on where resources should and should not be spent It defines the relative worth of projects assets and expenditures painting a clear picture of what the results will be if the customer-critical path is not

properly maintained

And if your mission and vision statement says you are customer-centric it makes your strategic plan more than simple semantics It makes it actionable setting your organization on a path towards true differentiation and market leadership Properly crafted the customer-critical path becomes a pleasant stroll through the park for your customers and it can also become the most profitable path for your organization

David F Giannetto is CEO of The Telos Group co-author of The Performance Power Grid The Proven Method to Create and Sustain Superior

Organizational Performance (J Wiley amp Sons 2006) and a professor in the Executive MBA program of Rutgers University

Mr Giannetto can be reached by email at dgiannettotelosconsultingcom

34

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35

Vol 6 Issue 2 2009

I Introduction and Background

Who the NMDP is

The National Marrow Donor Programreg (NMDP) and Be The Match FoundationSM are non-profit organizations dedicated to creating an opportunity for all patients to receive the bone marrow or umbilical cord blood transplant they need when they need it Every year thousands of people of

all ages are diagnosed with leukemia and other life-threatening diseases Many of them will die unless they get a bone marrow or cord blood transplant from a matching donor Seventy percent of people do not have a matching donor in their family and depend on the Be The Match RegistrySM to find a match to save their life

The Beginning

When their 10-year-old daughter Laura was diagnosed with leukemia Robert Graves DVM and his wife Sherry were ready to do anything they could to save her They agreed to try a bone marrow transplant from an unrelated donor ndash the first ever for a leukemia patient Laura received her transplant in 1979 at the Fred Hutchinson Cancer Research Center The treatment gave her an extra year and a half of life

The National Bone Marrow

Donor Program

The Balanced ScorecardVision into

Action JourneyBy Howard Rohm

President amp CEO Balanced Scorecard Institute under the guidance of The National Marrow Donation

Programrsquos Michael Boo Chief Strategy Officerand John Rudrud Senior Analyst

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37

Vol 6 Issue 2 2009

The experience inspired Dr Graves to create a national registry of volunteers willing to donate marrow His early efforts brought together other patient families and transplant doctors spurring a federal mandate that led to the creation of the National Marrow Donor Program NMDP began connecting patients with unrelated donors in 1987 with a registry of just 10000 volunteers

What the NMDP Does

The Be The Match Registry has grown to more than seven million donors and over 150000 cord blood units the largest and most racially and ethnically diverse registry of its kind in the world Medical advances are making marrow and umbilical cord blood transplants available to more patients all the time Since 1987 NMDP has arranged for more than 35000 transplants to give patients a second chance at life Today NMDP facilitates more than 4300 transplants a year

Planning for the Future

Many more patients still need help In order to meet the needs of all patients NMDP will need to facilitate 10000 transplants per year by 2015 That is more than double the number of transplants the organization facilitates today NMDP is working to meet this need but canrsquot do it alone Efforts are sustained by

bull A global network of more than 490 leading hospitals blood centers cord blood banks and laboratories

bull Agreements with donor centers cooperative donor registries and cord blood banks worldwide through which the program provides patients access to more than 12 million donors and 300000 cord blood units

bull Continued support from the US government which has entrusted the NMDP to operate the CW Bill Young Cell Transplantation Program the federal program supporting bone marrow and cord blood donation and transplantation

bull Partnerships with corporations service organizations student groups faith-based communities and other organizations

A new and different way of thinking about the NMDPrsquos long-term strategy was required in order to make sure that NMDP would be capable of delivering 10000 transplants per year in 2015 ldquoBusiness as usualrdquo would not get the organization where it needed to be NMDP needed to identify and

aggressively improve in strategic areas critical to the delivery of 10000 transplants

II The Balanced Scorecard Approach

Background

The strategic planning system that had been used at NMDP up to 2007 was a fairly well-developed planning process that tracked initiative performance under seven primary areas of strategic focus While this approach provided a measure of strategic planning for the organization it was too focused on activities and projects rather than on impacts

Early in 2007 NMDP leaders Gordon Bryan Chief Financial Officer and Michael Boo Chief Strategy Officer began developing strategic metrics designed to identify measure and communicate progress in strategic plan objective areas

Selection

As the senior management team evaluated options to integrate broader strategic metrics with the existing strategic business plan the Balanced Scorecard approach emerged as a leading candidate during the initial assessment of planning models because it

bullEncourages development of strategic themes and provides the ability to focus on areas where long-term continuous improvement is needed

bullPermits identification of cause-and-effect relationships between Strategic Objectives within each Theme

bull Facilitates communication of Strategic Objectives that can be portrayed on a strategy map that is easily understood by all employees and stakeholders and shows how the perspectives work together to achieve the mission

bull Assures that the organization focuses on Strategic Objectives and Measures from a CustomerStakeholder perspective and a PeopleKnowledgeTechnology perspective (Historically the organizationrsquos focus was skewed toward the Process and Financial perspectives)

bull Enables leadership to track Strategic Objective performance over the long term rather than tracking the status of supporting projects and initiatives

bull Creates a framework for prioritization of projects initiatives and funding opportunities based on contribution to and support of the Strategic Objectives

bull Allows organizational Strategic Objectives to be cascaded into Department Objectives thereby giving each employee

a more specific understanding of how his or her work impacts and contributes to the Strategic Objectives

bull Drives long-term continuous improvement as Strategic Measures improve over time

bull Facilitates a ldquolearning organizationrdquo where corrective actions are implemented in cases where Strategic or Department Objective Measures are not being met

The NMDP planning team looked at a number of planning models ndash including Balanced Scorecard Six Sigma Lean and TQM ndash and concluded that the Balanced Scorecard approach provided the most versatile and relevant framework for future growth and organizational development

III Scorecard Development ndash NMDP Officer Input

Early to mid 2007 NMDP began the Balanced Scorecard development effort with the help of consultants from the Balanced Scorecard Institute

A comprehensive review of the organizationrsquos strengths weaknesses opportunities and threats organizational pains organization enablers vision and mission was conducted over several days with NMDP officers and senior management These sessions produced a new Mission and Vision Statement and four Strategic Themes (rather than the original seven)

The former mission statement Extend and improve life through innovative cellular transplant therapies was changed to We save lives through cellular transplantation ndash science service and support

ldquoThis new mission statement captures and communicates more directly why we exist and it clearly articulates the three ways that we are able to save livesrdquo explained NMDP CEO Dr Jeffrey Chell

The Overarching Strategic Result in place of a vision statement was developed and shared with employees throughout the organization Meeting the need for 10000 transplants per year by 2015 The senior management team developed a longer more descriptive version of this statement but felt that the shorter version had more impact

ldquoWersquove found that the Overarching Strategic Result has been a great tool to get people thinking about how we will manage

to do more than double our current transplant volumes in a relatively short time ndash just five years from nowrdquo explained initiative sponsor Michael Boo ldquoThis has driven a lot of creative thinking around how to dramatically improve the efficiencies and cost effectiveness of many internal systems and delivery processesrdquo

The four Strategic themes that the NMDP officer group developed and agreed upon are

bull Global Access and Acceptance ndash Getting to Yes Overcome non-cell source barriers to transplant (eg no insurance no transportation no post-transplant support)

bull Deliver Excellent Stakeholder Experience Overcome Cell Source Barriers (making sure a cell source donation is available when itrsquos needed ndash adult or cord)

bull Research Pursue research to improve cell transplantation as a therapy

bull Culture of Excellence Keep up-to-date with talent structure and resources needed to continually improve transplant services

IV Scorecard Development ndash Senior Management

Throughout the spring and summer of 2007 four Theme Teams comprised of senior management met to develop

Theme Team strategy maps that included Theme Objectives by Perspective and proposed Measures for each Theme Objective These served as detailed roadmaps with specific objective areas identified ndash where NMDP needed to focus in order to improve them

The four Theme Team maps were subsequently

combined into an NMDP Strategy Map that included all relevant components from each theme This NMDP Strategy Map is comprised of 13 Strategic Objectives 46 Strategic Measures and seven Strategic Initiatives

Narratives were captured regarding the intent and ultimate end state for each Strategic Objective and detailed descriptions were created for measurement information including rational frequency owner and unit of measure

At this stage in the process the team named the Balanced Scorecard tool ldquoVision into Actionrdquo or ViA ndash NMDPrsquos strategic Performance Management tool On June 1 2007 the ViA Themes and NMDP Strategy Map details were presented to the board of directors by senior management and approved along with a plan to proceed to the next phase of department cascading

A ViA Communications Team was formed to communicate ViA progress to employees on the development of the new Mission Statement Vision Statement and the 13 Strategic Objectives This was done through a combination of pulse checks newsletters

38

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39

Vol 6 Issue 2 2009

intranet messaging e-mails from the CEO leadership training all-staff meetings and promotional contests This was an extremely integral step in the ViA roll-out that provided transparency and generated excitement around the benefits of ViA

V ViA Department Cascading

All departments at the NMDP were scheduled for sessions to develop their department Objectives Measures and Initiatives These were facilitated by internal subject matter experts and included an initial two-day exercise to help the department identify where and how each department contributed to the NMDP Strategic Objectives Worksheets and other preparation material were provided to each participant and collected prior to the cascade session The pre-work information was used to expedite the affinity exercises at each session

These were followed up with sessions to finalize detailed measures with individual measure owners Department teams were comprised of five to 10 key members of each department

The department cascading efforts provided a number of primary benefits to the organization including

bull The articulation in easy-to-understand terms of how each department contributes to the overall success of the Strategic Objectives and ultimately the NMDP Mission

bull A tool to identify gaps or overlaps between departments that can also be a tool for departments to communicate with each other in terms of supporting initiatives

bull A tool for each department to prioritize initiatives and activities Also it provided a mechanism to support requests for funding new opportunities

bull A clear framework for corrective action where measures are not being successfully met

bull A common format and mechanism for reporting department performance to officers and senior management

bull A common format and mechanism for reporting and reviewing department performance with staff

bull Help with the development of individual job performance appraisal content ndash which should be designed to support Department Objectives

Department Cascading was complete in early 2009 There are over 200 separate department measures that are tracked each quarter

VI NMDP ViA Today

NMDP has established a department Champions Council Members of the Council are becoming experts at using the automated ViA software Today this is being used at department staff meetings to facilitate discussion around corrective action for underperforming or unacceptable Department Measures Departments use the department Strategy Maps to guide staff meeting discussions on performance measures and corrective action plans

ldquoAll business cases or requests for funding must be submitted with clear tangible descriptions of how the effort will impact ViA Strategic Objectivesrdquo explained Boo ldquoOnce all business cases have been submitted to the officer group for final approval they are prioritized in order of their impact on ViA Strategic Objectivesrdquo

All strategic and department measures are required to be reported into the ViA system each quarter Each is color coded based on an officer-approved target matrix Each measure owner is required to provide comments regarding the measure performance for the quarter and discuss how he or she expects the measure to end the fiscal year This information is shared with senior management for review and follow-up with measure owners ifwhen necessary

Senior management uses the color-coded NMDP Strategic Map as a basis for discussing quarterly performance and identifying

Strategic Objective areas that may need attention corrective action andor more resources NMDP tries to focus not only on corrective action items but also highlight success stories where outstanding performance has been reported

All employees will soon have access to the web-based ViA application to provide as much transparency and visibility as possible in order to become a truly strategy-focused organization

ldquoVision into Action has been successful within the organization to a great extent because of the consistent support and guidance provided by NMDP leadership including our CEO Dr Jeffrey Chell my fellow Officers and the Board of Directorsrdquo said Boo

Howard Rohm President and CEO of the Balanced Scorecard Institute is a Performance Management trainer consultant and technologist with over 40 years experience Mr Rohm has helped dozens of organizations worldwide build Balanced Scorecard and other performance planning and management systems

48

Pe

rform

Mag

azine

Info

rmatio

n in

Actio

n

A community for BIRT users and developers sponsored by Actuate

A Report Writing Portal lets your end users browse reports modify them and even develop

new ones You can set one up in three steps when you use AJAX-based BIRT technology

Because the end user tools to modify and create reports are AJAX-based therersquos no desktop

software to install Users get the reports they need quicker while the burden on development

resources to create new reports is reduced

BIRT Exchange is a community site that offers the broadest collection of resources for the Eclipse BIRT (Business Intelligence

and Reporting Tools) project and for integrating spreadsheets with Java The site is sponsored by Actuate a co-leader of the BIRT project

Sponsored by

See a Demo

at Booth

602

For More Information

Contact us by phone at 1-800-884-8665

1-913-851-5300 from outside of the United States

wwwbirt-exchangecom wwwactuatecom

40

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41

Vol 6 Issue 2 2009

JCIrsquos previous approach of one-off negotiating as well as its spirit of continuous improvement and customer focus meant that it had only one-off measures in every location The company for example had 127 variations of the measure lsquomaintenance managementrsquo Many were very similar but since they were not exactly the same they could not be compared effectively Inefficiency at gathering and maintaining data at different locations across the globe made the task difficult as well Data was collected any way possible thrown into a cell or a Power Point slide and handed in at the end of the month It was highly inefficient extremely customized at every location and did not allow any ability to benchmark compare or look at best practices These concerns and requirements drove JCI on its scorecarding journey

The Solution

In initiating its scorecarding solution JCI first had to establish the right measures Business leaders were chosen for all of the scorecard categories and for each of them a business owner was selected for each region these business leaders and owners were responsible for defining the standards and measures Data collection systems in some cases proved difficult there wasnrsquot always centralized information available ndash in some cases data needed to be gathered right down at the account level This meant that the process of data collection and identifying measures was a significant job To get started though JCIrsquos web programmers were able to put up some scorecards quickly to allow the company to start architecting measures this allowed business leaders across the globe to start identifying their measures and to put the processes in place regionally to collect information

Before committing to a technology JCI wanted to know 100 percent of their business requirements and this was the point of their web-based scorecard To assist in this endeavor Actuate ndash prior to selection ndash let the company test drive their product The JCI team went through and looked at every single screen determining where they had to configure the tool and for every single screen they also made what they called a lsquoblueprintrsquo creating an Excel template with fields to correspond with every field on each screen It was incredibly detailed work but they wanted to ensure no mistakes were made and that the business requirements were defined To accomplish this there was an extreme amount of detailed coordination globally with twice-weekly meetings for the worldwide team in charge of the initiative A byproduct of the process was that the team learned to use the Actuate BIRT Performance Scorecard and basically built all of the blueprints for the project design

JCIrsquos audience for the project upon kick off were the 300 external customers that would have access to this information Customers previous to this were getting their information via Excel and PowerPoint In addition to these external customers was the population of approximately 1000 internal users within JCI itself These included account leaders and functional leaders including those from HR Finance Safety etc

Three primary functions of the project were

1 To replace the PowerPoint slides used in global and regional monthly internal operational reviews

2 To very quickly be able to become best in class JCI wanted everyone who had an account to be able to see where they sat compared to their peers This provided individuals ndash when faced with a problem ndash the ability to quickly identify and contact others who had solved the same issue

3 To standardize customer faith in contractually required performance measures This was a key goal of the company which felt that if they were going to benchmark and compare they needed to bring in the best practices learned at one location to their work at other locations

These three primary functions were heavily loaded in JCIrsquos rating system as the company set out to choose the right software for their scorecarding project It was also important that the software be intuitive as there was no time for hundreds of hours of global-wide training The software had to be rapid and easily configurable with limited IT assistance As JCI is a very large organization with a lot of systems in place the team in charge also wanted the software to be easily adjustable to the companyrsquos rapidly changing business they didnrsquot want to have to get into queue for IT every time a change had to be introduced or a new customer added

JCI Chooses ActuateFour vendors were evaluated for JCIrsquos scorecarding project with a global team in place to provide a systematic discussion of the defined business process and requirements The product chosen was the BIRT Performance Scorecard JCI had 30 days of Actuate Professional Services and planned for monthly micro improvements and quarterly macro improvements

Upon purchasing the BIRT Scorecard in January 2007 using the blueprints theyrsquod established already the company wrote their business processes They were able to go live in 90 days helped by the homework they did with the blueprints the web scorecard and the data collection processes It was an incredibly smooth implementation overall

The Results

Whereas JCI originally started out with a model of one-off negotiations with customer measures the scorecarding project has led to approximately 70 percent agreement on JCI standard metrics The company does a customer satisfaction survey both annually and quarterly and aims to demonstrate evidence towards continual improvement

Since implementation of the project the company has also been solving its data integrity issues Previously two regions might have been using the same words but not the same data collection methods ndash this made it impossible to introduce benchmarking and comparison between areas Now those problems are being solved and benchmarking and comparison are possible to the benefit of both JCI as it strives for best-in-class status and its customers

By David F GiannettoCEOThe Telos Group

Johnson Controls Incorporated (JCI) is a $38 billion company with a total of 140000 employees working out of more than 1300 locations in 125 countries worldwide Headquartered in Milwaukee Wisconsin the company provides a range of services including

real-estate portfolio management property management facility management and design and construction services

To initiate its scorecarding project JCI began by creating five categories of measurement Business Performance (this includes all financial measures) Service Delivery Customer Satisfaction Safety and People While the other four categories may be typical to most organizations the Service Delivery category was designed to take JCIrsquos measurements down to the client-site level which includes over 300 locations globally where the company has contracts In some cases there might be one staff member assigned to manage a single building while other times a staff member has a whole portfolio they maintain Measuring performance at all of these locations and levels proved a complex undertaking

Strategic Initiatives

Like all service providers JCI has to demonstrate that they add value Scorecarding allows them to do this both internally

and externally using data-driven results Since JCI has always been very much a data-driven organization anyway with a manufacturing background this was a natural fit for the corporation

JCIrsquos organization-wide motto is to be as good everywhere as they are somewhere Theyrsquove found that in any one account they may excel in several areas but perhaps not in all areas elsewhere though on another account someone else might have the skills needed to fill in those gaps The companyrsquos goal was to share information and communicate it between different locations across the globe allowing the company as a whole to get better faster and to benefit from the skills and strengths of its individual members Scorecarding was introduced as a way to help share this information and to introduce benchmarking within the company

The Requirements

To get started on their scorecarding initiative JCI examined each of their US contracts What they found was that there were no standards between clients and therefore no ability to benchmark Customers though wanted the ability to find out how they stood in relation to other customers This was impossible under the circumstances

Global Operational Excellence and a Performance Scorecard System A Case Study of

Johnson Controls Incorporated

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Vol 6 Issue 2 2009

Out of Touch With Crucial Data

Previously when Helzbergrsquos divisional and regional vice presidents went on the road access to their key performance metrics was restricted Without a laptop and a WiFi or hotel network connection to the internet they were ldquoflying blindrdquo according to Greg Backhus Helzbergrsquos Director of Data Warehouse and Decision Support Systems As a result they did a lot of faxing it was the only way they could get the current data that they needed in order to

About Webalo

Webalo technology transforms enterprise applications and data to make them compatible with mobile

devices This eliminates the need for traditional custom programming reducing the deployment of mobile applications from weeks or months to in most cases less than a day The resulting ldquoanywhere anytime on-demandrdquo availability of enterprise data on handheld devices turns such devices into viable alternatives to desktop laptop and palmtop computer hardware and lets mobile employees work more productively ndash on the spot ndash to solve problems answer questions monitor operations close sales and make informed decisions

The Webalo Mobile Dashboard Service ndash available in both internet-based and enterprise intranet-based implementations ndash lets non-IT business administrators securely specify the content of mobile-accessible information and the companion Webalo Proxy Server configures it in seconds to conform to the native user interface of any BlackBerry Windows Mobile Pocket PC Palm Symbian or Java-enabled smartphone

CLARITY CUT AND CARATSHow Helzberg Diamonds Made Sales Data Clearer Eliminated

Delays and Lightened the Load for its Divisional Executives

A diamond may be forever but a lot has changed in how theyrsquove been marketed and sold during Helzberg Diamondsrsquo nine decades in business A single store has expanded to nearly 300 locations from coast to coast and border to border Sales can also be made online now And information about every sale can be accessed in an instance through the companyrsquos enterprise systems

bull Compare actual sales to their goals and plans

bull Determine transaction counts for total dollar volume and average sales value

bull Break down sales by product category

bull Monitor attachment rates for products and services related to the main product sale

For example onsite at individual stores it was difficult to gauge how an active price-reduction sale was affecting unit and dollar

volumes unless there happened to be a coffee shop next door with a WiFi connection that would let Helzbergrsquos executives access the enterprise system

The Three Cs of Information Access

The three Cs of diamond grading ndash clarity cut and carats (or weight) ndash turned out to be applicable to data access as well But it took a transition to handheld devices and to the Webalo Mobile Dashboard to achieve it

Though laptop computers had gotten lighter and lighter over the years they were still considerably heavier than the Pocket PC-based smartphones that Helzbergrsquos executives used Since they were carrying those handhelds in addition to their laptops the VPs were open to the idea of being able to

bull Access sales metrics on their handhelds

bull Have data available on-demand from any location with a wireless signal

bull Navigate quickly to the figures they needed

bull Get updates to their metrics automatically

bull Review the information offline

It was the only time that carrying less weight ndash or carats ndash added more value Using a simple step-by-step wizard Helzbergrsquos support staff was able to configure their enterprise reports in a matter of hours They then assigned access privileges to each executive to control who could see what information and uploaded the file to the Webalo server That satisfied how data was ldquocutrdquo

For each mobile user regardless of the brand and model of smartphone they used the Webalo Mobile Dashboard conformed the information to the devicesrsquo user interface The application worked and looked exactly like any other application developed specifically for their mobile devices the on-screen text was easy to read and navigation used the same menu structure That meant there was no learning curve to delay user acceptance and productivity Clarity was essential and the Mobile Dashboard delivered it right down to the ability to bookmark commonly-referred-to displays for instant reference enhancing on-the-spot productivity even more

Speed and Simplicity

Productivity was also improved on the IT side Without the need for custom programming to conform the information to each smartphone brand and model deployment was reduced from months to hours

Since adopting the Webalo Mobile Dashboard Backhus says ldquoThe Divisional VPs find it invaluable They get more done because they donrsquot have the delays they used to haverdquo Decisions that used to have to wait for current data are now made right away relying on the right data presented in the right format

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Vol 6 Issue 2 2009

Sustainable practice has graduated from being market hype

to becoming a strategic initiative important for driving a successful enterprise It not only reduces a companyrsquos impact on the environment but can help organizations achieve a competitive advantage to build their brand impact top and bottom line and improve customer acquisition satisfaction and retention

Creating a road map towards sustainable management can require an entire shift in corporate thinking one that involves searching for buy-in at all levels establishing useful metrics and introducing practices that get beyond the green hype The end result though is not just a greener organization but also one with a more prosperous future

Why Sustainability

In August 2008 a survey undertaken by CIO Insight examined green practices in business focusing on the reasons why CIOs introduce sustainability efforts into their organizations The number one reason why organizations went green the study found was that the people within those companies sincerely had a concern for the environment A total of 74 percent of respondents answered that way 32 percent of which listed it as their most influential driver

Other influential drivers named in the survey included

Financial Drivers Companies found sustainability to be a way of cutting costs If they could cut energy costs not only would that help the environment but it would also help create cost savings The second most popular answer in the CIO Insight study financial impacts are key to implementing sustainability in most organizations Examples of financial impacts possible from sustainability were presented at CFO

2 The CFO Green

Conference which took place in May 2008

bull Dupont reduced its CO2 emissions by 70 percent saving the company $3 billion

bull FedEx redesigned its delivery trucks making them more aerodynamic This reduced the amount of particulate pollutants nitrogen and carbon the trucks put into the atmosphere and it also reduced the companyrsquos fuel costs exceptionally

Customer Image In the CIO Insight survey the third motive listed by CIOs for introducing sustainability ndash at 64 percent ndash was company image Consumers are becoming more and more aware of whether companies or organizations are living up to sustainability ideals They will notice if a company image or brand value reflects this concern for the environment Meaningful sustainability efforts can help gain customer approval as in the following case

bull Wal-Mart and Procter amp Gamble together agreed to sell liquid laundry detergent only in concentrated form This saved shelf space for Wal-Mart reduced water use by 400 million gallons for Procter amp Gamble and eliminated 45 million pounds of plastic waste

Regulatory Requirements The surveyrsquos fourth most popular reply ndash at only 25 percent ndash were current or potential regulations including the cap and trade systems being implemented which will require companies to buy carbon and sell carbon credits

Shareholder Pressure Finally at fifth in the CIO Insight survey ndash with 14 percent of responses ndash was shareholder or public pressure pressure building from shareholders to put forth sustainability efforts Pressure at this level is often mixed though as shareholders are also likely to express a desire that they donrsquot want shares to decline in value The general message may be that it is fine to introduce sustainability measures only as long as there is no risk that they will hurt the company

A Road Map Towards Sustainability

Step 1 Identify What Drives Your Organization

The first step in the road map towards sustainability is identifying key drivers Some drivers vary from one organization to another while others seem to drive any organization regardless of the industry Drivers incude

Internal drivers

bull Cost cuttings and savings

bull Employees including both the satisfaction of current employees as well as the recruitment and retention of future employees

bull Investment

External Drivers

bull Stakeholders including both those within the company ndash the employees discussed above ndash as well as stakeholders outside of the company

bull Brand awareness because consumers are becoming increasingly aware of the choices that are available to them and are making choices based on a companyrsquos green initiatives

Future drivers

bull Tax incentives

bull The recruitment and retention of future customers

Step 2 Select Your Metrics

In general terms sustainability metrics will fall into one of four major categories those that affect the climate those that affect the oceans those that affect human health and those that affect common issues like the land the water the wildlife etc

Within those large categories are smaller areas of interest that companies must examine to introduce organization-wide sustainability management carbon monoxide use energy consumption water consumption and fuel consumption are prime examples

Carbon Monoxide Use Many of the questions companies are asking themselves in regards to carbon monoxide use include

A Road Map of Key

Sustainability Metrics

That Impact Bottom

Line

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Vol 6 Issue 2 2009

bull How much carbon monoxide do we produce

bull Which processes in our overall manufacturing or delivery use produce the most emissions

bull Can we determine the indirect emissions For example leave a computer plugged in and itrsquos still on the grid creating an indirect carbon dioxide emitter How can we measure that

bull Whatrsquos our cost Do we have metrics that tell us what our CO2 emissions cost us

bull Can we predict into the future If we continue on this path without doing anything where will we be next month Next quarter Next year

Some examples of metrics related to carbon monoxide use include carbon dioxide emissions per employee (similar to revenue per employee) carbon footprint metrics and transportation distances

Energy Consumption Areas of interest related to corporate energy consumption may include the following

bull How much do we consume From what sources

bull Are we on the grid Are we using solar power or wind power or another alternative power

bull How much is used by our data center How do we make the data center greener

bull Where can we reduce consumption

Companies today are reducing energy consumption in a variety of ways by introducing energy audits and looking at energy-saving appliances and also through energy incentive programs for employees within which companies can incentivize and introduce bonus plans

Water Consumption An examination of a companyrsquos water consumption may include some of the following queries

bull How much water do we currently use and where

bull Where in our processes do we use the most water

bull Can we predict how much wersquore going to use in the future

Some of the examples of metrics that companies introduce in terms of water consumption include improved water quality how much impact low-flow or low-volume toilets have on water consumption and how much water is or can be recycled

Fuel Consumption Questions to consider in relation to fuel consumption include

bull How much fuel do we use

bull Where are the inefficiencies

bull Whatrsquos being predicted for fuel usage in the future

bull Can we analyze our logistics so that we can determine how to reduce our fuel consumption For example where are our trucks traveling How are they traveling What kinds of loads are they carrying

Step 3 Recognize Challenges

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly As such easier ways to enhance communication and to increase visibility need to be introduced both inside and outside of an organization

There are also constantly evolving requirements measures and standards of success With everything so new companies are challenged to find ways to compare their sustainability efforts with other organizations The biggest challenge in implementing these processes or attracting metrics may be that they require an entire shift in thinking Additional challenges that exist in the implementation of a sustainability model include

1 Financial concerns Companies must truly see potential for returns on investment or these initiatives can become non-starters or stall

2 Lack of regulatory motivation While not as common as it once was certain organizations arenrsquot motivated to introduce sustainability until government regulations are in place

3 Lack of a formal strategy for sustainability Without a formal strategy it is difficult for companies to determine where they need to go

4 Determining appropriate metrics Companies must choose metrics that are useful demonstrate impact and say something about their own corporate environment

5 Calculating metrics Standard algorithms and calculations exist to calculate metrics but companies must find the appropriate ones and use them

6 Finding quality data to plug into those calculations As in any Business Intelligence project if the quality of the data is questionable then so are the sustainability metrics themselves

7 Determining the scope of the sustainability project The scope is critical Narrow it down to something achievable feasible and useful

Step 4 Learn from Best Practices

What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde

bull Assign an executive champion Without an executive champion to drive the project initiatives are more likely to lack a holistic view and a clear vision for an implementation strategy they may take longer to implement and theyrsquore less likely to yield the required results To provide motivation consider linking the championrsquos salary directly to sustainability savings or to the increased revenues that result from sustainability efforts

bull Implement internal training and education Educate employees on what to expect and what is expected from them

bull Improve communication Communicate both to employees and to stakeholders outside of the organization

bull Start to think about alternative energy management and control strategies

bull Engage the use of technology and services For companies not sure where to begin a sustainability consultant can assist with program selection as can vendors such as Actuate which has a sustainability management solution in place

Step 5 Get Started

Understand that sustainability development is a business opportunity Donrsquot look at it solely as environmental although that is also important Itrsquos an opportunity for companies to introduce more cost-effective processes and procedures and to become more cost effective in their vehicle fleet manufacturing delivery etc

bull Create globally consistent metrics and goals Large agencies have to make sure that the entire group is on board and that they have consistent metrics and consistent goals across the enterprise

bull Find the value and drive the action What is the value of monitoring these sustainability areas and whatrsquos the course of action if you see that theyrsquore going off kilter or are not tracking as expected

bull Start small Initiatives such as these can become incredibly complex very quickly Start small and build in the complexity with each ensuing project

bull Get buy in People need to understand what the metrics are why theyrsquore there and what they mean to each individualrsquos situation (as reflected in individual bonus plans perhaps) Measure using industry-accepted methodologies and industry-accepted protocols continually improve metrics through optimization and forecasting and constantly optimize metrics and forecast into the future

bull As much as possible accurately report to everybody environmental performance Let employees shareholders customers and regulators know If data is questionable fix it get quality processes in place and then run the metrics

bull Determine environmental impact Has waste been reduced Has resource utilization been reduced Has the company improved environmental factors

Also consider using an Open Source vendor The Open Source community is beginning to develop sustainability metrics and Open Source reduces the costs of developing metrics while software costs for the project are reduced as well

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly ldquo

rdquo What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde ldquo

rdquo

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Step 6 Move from Green Hype to Sustainable Action

A successful sustainability initiative involves identifying metrics that will translate into cost savings and benefits while avoiding metrics that are not likely to yield required results To accomplish this start small start with a small department within the organization and then repeat this continuing to repeat it throughout the enterprise

bull Start with basic conservation Change behavior reduce consumption and in the process increase investment

bull Start reusing Improve productivity improve efficiency and create less waste

bull When this translates into cost savings re-invest Grow make larger improvements and increase involvement

Projects that make good starting points

bull Measure carbon dioxide emissions throughout a value chain or product lifespan Look for potential improvements

bull Ensure regulatory compliance By knowing what the regulations are companies can determine what metrics need to be in place

bull Identify ways to promote and profit from more environmentally-respectful goods and services Companies can promote environmentally-respectful goods and services while also using sustainability to help the company

Monitor the effects of each project to determine which strategies have the most impact both physically in terms of

the environment and financially in terms of revenues and cost savings Publicize how metrics are tracking over time

Actuate for Sustainability Management

Actuate for Sustainability Management is a solution by Actuate that integrates highly interactive visually rich dashboards There are pre-built sustainability scorecards strategy maps and over 100 pre-built metrics across the economic social and environmental aspects of sustainability

The Actuate BIRT Performance Scorecard supports the metrics defined including

bull Reducing an organizationrsquos environmental footprint

bull Building green facilities and buildings

bull Compliance and reporting

bull Manufacturing

bull Community and engagement

bull Human development including employee well-being and satisfaction

Actuate for Sustainability Management provides collaboration across regulators consumers and non-governmental organizations Dashboards and scorecards come integrated with reporting so as to improve reporting to stakeholders both outside and inside of an organization All of the products are built on Actuatersquos dependable cost-effective and scaleable platform

Performance Management solutions help organizations understand act on and influence business decisions processes and measures of business success The 2009 Actuate Performance Management Excellence Awards will honor customer success stories in four key areas Over the next several issues Perform Magazine will highlight some of the entries in these categories

Category 1 Go Green

Each year the concept of environmental responsibility has implications for both the private and public sector specifically with regards to how each measures the performance of their operations For organizations using the Actuate BIRT Performance Scorecard to measure the progress of organizational Green initiatives how have they responded to the challenge and how do they use the BIRT Performance Scorecard to ensure they stay on track

Category 2 The Perfect Slice

Successful Performance Management comes in all sizes Some initiatives are enterprise-wide while others are focused around specific business units or functions yet still encompass a holistic approach to Performance Management by looking beyond financial indicators to a more balanced set of indicators This category includes organizations deploying the Actuate BIRT Performance Scorecard with a focus on improving the performance of individual business units or functions and includes the measurement of people and processes

Category 3 Big Bang

Carefully executed Performance Management initiatives begin with a measured approach to the initial implementation and quickly expand to other parts of the organization aligning business units to strategy at each step This category is open to Actuate customers who initially implemented the Actuate BIRT Performance Scorecard to a limited user community and through careful change management and planning expanded the use of the BIRT Performance Scorecard throughout the organization

Category 4 Super Size

Award-winning enterprises achieve breakthrough results in the financial customer operational and people perspectives of their business and leverage internal champions across the organization to ensure ongoing and sustainable success The key to achieving these results lies in total visibility of all business units aligned to strategy This category is open to any Actuate customer with a fully deployed enterprise-wide Actuate BIRT Performance Scorecard implementation

Actuate Performance Management Excellence Awards2009

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HealthNow New York Inc headquartered in Buffalo is one of New York Statersquos leading healthcare companies doing business as BlueCross BlueShield of Western New York BlueShield of Northeastern New York HealthNow in the Central New York region and Brokerage Concepts Inc in Pennsylvania

Improving the health of people and communities are HealthNowrsquos corporate priorities and for more than 70 years the company has been a proactive partner in health working to improve the quality of care and the quality of life for everyone it serves In 2008 HealthNow provided access to care to more than 820000 members and in 2008 company revenues grew to $227 billion

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution and describe what you were trying to achieve as a group function or department

A few years ago HealthNow New York Inc determined that the key to its continued success would be its ability to differentiate itself from other healthcare plans in ways that could not be readily duplicated or copied by their competitors In an increasingly crowded marketplace to get the attention of new customers and retain existing ones HealthNow needed to set itself apart from others

This lasting competitive advantage needed to come from an organizational culture that was dedicated to a relentless focus on meeting customersrsquo needs It needed to be highly responsive supportive flexible and nimble particularly as the healthcare marketplace continues to change with more responsibility placed upon its customers

To that end a new business model was implemented to provide the framework for customer focus Under the new structure the company was divided into four strategic business units (SBUs) each responsible for financial contribution customer satisfaction medical utilization and market share of a specific book of business

Each SBU includes its own set of functions including sales account and broker management product configuration customer intelligence pricing enrollment and billing customer service medical management and HR support Each business unit is led by an executive who is fully accountable for the unit operations and for bottom-line performance of the entire business unit Each SBU is supported by various corporate support functions (Actuarial IT Legal etc)

Implementation of the new business model began with a reorganization of the senior management structure The senior management of each SBU has specific incentive goals as well as strategic goals aligned with the corporate incentive Those strategic goals then drill down to ldquoteamrdquo incentives and to a blend of strategic and operational goals

This was a completely new way of looking at our business It was a blank slate requiring new processes and new methodology as well as an examination of existing metrics and processes to determine what added value and where the strengths weaknesses opportunities and gaps were

Under this new structure the Government Programs State and Federal products SBU ndash which historically had some inefficient end-to-end processes lacked internal controls and had minimal oversight of financial performance ndash was able to set a foundation and develop a growth strategy In order to achieve this mission and to align track monitor improve and communicate performance the Senior Vice President of the Government Programs SBU elected to utilize a Performance Management framework via the Actuate BIRT Performance Scorecard

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

As a point of reference the Government Programs SBU is comprised of a State Government Programs team a Federal Government Programs team an Operations team and a Sales team The Performance Management design team was comprised of the Actuate system administratorfacilitator the Government Program financial reporting manager and two SBU data analysts Input from the various teamsrsquo management staff was gathered as the design got more granular

Discussions around the design of the Government Programs scorecard began with two basic questions

1 What are the handful (ideally six to eight) of key performance indicators that are necessary to run and manage your business and to indicate that yoursquore on the right path to achieving your goals

Defining the key performance indicators was a challenge that required the Actuate system administrator in a facilitative role to get intimately involved in order to keep the discussions focused and high level and to limit scope creep The incentive goals were clearly defined at the corporate and SBU level however the tough question was how should they drill down in the BIRT Performance Scorecard The facilitator posed the following questions to the other members of the design team

bull How do you usually look at your business

bull How are the primary source documents that capture this information structured

bull What other ways do you look at your business

Taking the answers to these questions a step further the facilitator asked the next question Is the drill-down structure the same for the core strategic or team metrics The answer was yes By taking this approach we were provided with consistency in how the teams look at their business and the performance of their core indicators

Once the incentive and strategic goals were identified more leading and lagging operational measures were defined such as

bull Call centers

bull Accuracy

bull Quality

bull Sales Performance

2 Who is your audience

Through the entire measure selection and definition process the design team was constantly reminded to keep a second question ndash who is your audience ndash in mind This helped keep the focus on the critical few and keep the number of metrics down to a manageable amount Links to supporting documentation were created to provide easy access to the granular data without burdening the scorecardrsquos objective

The audience in this case was the SBUrsquos Senior Vice President followed by the State Director Federal Director Operations Director and Sales General Manager It then cascades down to each directorrsquos management team and the data providers

In order to provide a complete and consistent picture of State and Federal performance for senior management where

gt Performance Management Excellence Awards

HealthNow New YorkCategory 2 Entry The Perfect Slice

gt Performance Management Excellence Awards

[ Figure 131 Homepage Map ]

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Vol 6 Issue 2 2009

possible the same or comparable measures were created for each team For example when looking at the various call center metrics ndash even if the definitions and targets slightly differed ndash if one team was consistently exceeding or meeting their target it sparked group discussion around best practices processes staffing and target definition

Utilization of Maps continues to play a major role in communicating performance Again focusing on our audience there is a Map at the Senior VP level which then links to a high-level Map for the State director and staff and for the Federal director and staff The one-page snapshot allows management to easily view performance then to drill down to specifics via additional detailed Maps or Books Because the audience embraces the Maps concept a ldquoWhere is itrdquo Map containing all Maps and Books by SBU was created Itrsquos a quick and easy reference tool

3 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

Quantitative results are achieved through the promotion of visibility and awareness The Return on Investment may not fit a conventional definition but can be measurable and accomplished by challenging the data targets and accompanying commentaryaction plan narrative to drive performance improvement Are the targets realistic yet aggressive Are action plans being documented and carried out Are the actions discussions and decisions leading to improved performance and processes

Government Programsrsquo membership is measured and monitored in various ways via the BIRT Scorecard and other sources For example Federal membership is measured by product then by plan It is also measured by market then by product then by plan By creatively visualizing performance in multiple ways via a Map those same data results can sometimes become very obvious telling a different story that may not be obvious via standard reporting methods It may clearly illustrate that a specific product in a specific market is continuously under-performing for example Fact-based decisions can then be made as to whether or not to continue with this product in this market or it may initiate discussions as to how to grow and retain profitable membership for this product in this market

Another more recent example is an initiative to track claims-review savings By reviewing claims via various processes what savings can be recouped or realized What specific areas are State and Federal teams focusing on that can contribute to overall savings for the SBU Again where applicable there should be consistency in the metrics across

teams Placeholders are included to promote visibility to keep them in the forefront even though the data or processes may not be in place yet But by capturing results on one page via a Map it bridges potential gaps between the teams promoting awareness and synergy across the SBU

4 Qualitative results What ldquosoftrdquo or intangible benefits has the group department or organization received as a result of this solution

A major benefit of the scorecard framework for the Government Programs SBU has been the identification and alignment of roles responsibilities and accountability

The SBUrsquos Senior VP monthly leadership meeting focuses on four areas

bull Performance Performance is covered via the existing incentive strategic and operational metrics

bull Action plans Documenting action plans in the Performance Management Software Suite versus verbalizing action plans establishes ownership and accountability At subsequent meetings management follows up on key action items or plans to determine whether or not the corrective action did take place and if yes did it have the desired results

bull Strategic direction The strategic direction of the various teams is captured as a springboard to strategic thinking discussions and planning So as not to lose sight of short- and long-term strategic planning this aspect of the business now is housed in the BIRT Scorecard completing the strategic planning of the ldquoHow are we going to get thererdquo and ldquoAre we there yetrdquo cycle This holistic approach helps minimize the chances of our scorecard becoming too focused on operational performance and keeps strategic planning dynamic and visible

The value of these metrics is not in the data but in the commentary The individual teamsrsquo strategic direction ldquometricsrdquo are subjective red = 1 yellow = 2 green = 3 The target = 3 Each metric includes a description of the specific strategic path we need to research or move forward on as well as what goal achievement it supports The ldquodatardquo ndash or color ndash is based on basic questions like What did you hope to achieve this month vs What did you actually achieve this month Were there any successes barriers obstacles In addition to accountability the entire SBU benefits from the sharing of information having meaningful discussion taking appropriate action and collaboration

bull Key initiatives The last critical component is the identification and alignment of key initiatives that

are necessary to support achievement of the various incentives strategic goals and direction and operational goals As with the strategic direction metrics the value is in the narrative with the color reflecting what was accomplished for the specific reporting period

5 Innovation Why should this solution be considered an Innovative Solution What makes it unique groundbreaking and superior What unintended results did you realize

Over time the Government Programs Performance Management framework evolved into an innovative solution The process drives performance and isnrsquot necessarily focused on ldquocolorrdquo Rather itrsquos about having the right people in the same room on a regular basis to drive meaningful discussion and to take appropriate action to improve performance

Outside of the standard processes it was the monthly review process that drove effectiveness revisions enhancements and restructuring of the meeting schedule agenda and format The Government Program financial reporting manager would meet with each director and general manager to review their scorecard for completeness as well as for performance from an operational perspective The State and Federal team directors would then meet with their respective management teams to review and discuss performance results in preparation for the joint Government Programs Leadership Meetings The audience included the Senior VP down to team managers key data analysts (data providers) and support function representatives Through trial and error management learned to maximize their time and effectiveness by concentrating on key metrics and topics rather than trying to review all metrics identify leading indicators versus only outcome results and include strategic thinking and initiatives Today the monthly leadership

meetings are much more productive and look at strategic and operational performance

As involvement and participation increased in the team meetings as well as in the leadership meetings it removed silos opened communications enabled the sharing of information and best practices and promoted teamwork across the SBU But most importantly it brought about an awareness and a sense of unity and commitment within the SBU to achieve their goals something that was lacking before

While it was not part of the initial scope management realized shortly after implementation that efficiencies could be gained by replacing an in-depth hard copy monthly report with BIRT-generated results Since the BIRT Scorecard contained the same data with supporting narrative ndash plus additional metrics with narrative ndash monthly performance was captured via a monthly report Book various Maps and BIRT-generated reports Elimination of the hard-copy report was an unintended way of encouraging a more active use of the Performance Management software by management to monitor performance thereby increasing user familiarity with the contents features functionality and navigation

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

Sustainability is achieved through a continuous process of revisiting the scorecard when there are organizational changes looking at the business direction shifts goal changes process changes etc To ensure that metrics are still relevant a filtering process is held with each director and general manager every six to eight months or as necessary During this exercise questions such as the following are asked

gt Performance Management Excellence Awards gt Performance Management Excellence Awards

[ Figure 132 CEOrsquos Book ]

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Vol 6 Issue 2 2009

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

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3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

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  1. Button 3
Page 3: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

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order to maximize results and minimize negative outcomes ndash first outlined under the Government Performance and Results Act (GPRA) in 1993 and later in a new piece of legislation called The Presidentrsquos Management Agenda which was introduced in 2002 What sets the ARRA apart is the scale of the Act and the urgency it represents across the nation and at every level of government With a $787 billion ante on the line federal and state agencies need to get it right or outcomes may be catastrophic to future generations Doing it right however means that todayrsquos stimulus programs need to sustain future growth in areas such as Energy Transportation Education Health and Infrastructure while giving the economy the kick start it needs today to get back on track

Integrated Performance Management for the ARRA Understanding the Fundamentals That Lead to Success

With so much money at stake and an overwhelming amount of information being published about how government needs to respond to the challenge how should government agencies engage the process to ensure they can both focus on delivering expected results while responding to the enhanced demands for transparency and accountability outlined in the Act

Moreover what pitfalls should government avoid to ensure that the individuals tasked with managing the successful execution of these programs are equipped to focus on their delivery as opposed to managing the data around the program History has taught both corporate and government sectors that an overabundance of data can systematically begin to paralyze an organization Without a clear direction and identification of goals and objectives individuals within any organization either lose sight of the mission or may have never understood the mission because it was never communicated to them

As such this whitepaper will explore five key recommendations that serve to demystify the perceived complexity related to the ARRA requirements ndash more specifically how to leverage proven methodologies such as Performance Management for successful execution and communication of stimulus projects and the results they achieve

Lastly this article will provide an overview of the Actuate BIRT Stimulus Management Solution highlighting some the unique differentiators that set it apart from the one-dimensional reporting applications or lengthy consulting engagements offered by other vendors

Recommendation 1 Train and Educate Your Workforce on Key Concepts

A common misconception at many organizations is that behaviors and activities are the same as results Upon closer scrutiny however there is a realization that employee activity volumes and what we perceive as good behaviors donrsquot always have a direct correlation with moving an organization towards a common set of goals and objectives

Engaging Performance Management will take you on a journey that involves collaborating with multiple internal and external stakeholders It also involves improving how goals and objectives are communicated so that everyone can understand the strategy in question As the journey unfolds the relationship between leading and lagging indicators goals and KPIs ndash in addition to how individuals contribute to each ndash needs to be clearly articulated which in turn encourages the alignment of resources to strategy Itrsquos vital that you explain these relationships to ensure everyone understands how their activities and behaviors ultimately impact the performance of metrics KPIs and higher-level goals

Recommendation 2 Ensure Everyone Understands the Mission (Defining Your Organizationrsquos Short- and Long-Term Goals)

Your organization educated its people on key concepts yet the question remains How do you attain visibility into the performance of your goals KPIs and metrics More importantly for government how do you effectively communicate these results in a manner that adheres to demands for new levels of transparency and accountability

An effective Performance Management initiative must follow a systems-based approach which consolidates and logically assembles an organizationrsquos goals KPIs and metrics into a representation of overall or operational strategy This creates a framework or cascade of measures that facilitates the generation of performance results at each level in the structure (see Figure 11)

Without a systems-based approach the effort produces a flawed picture because your reports are produced in silos ndash without links to other related information For example organizations that cut spending on education and training will likely improve bottom-line figures however the organization in question may eventually experience reduced productivity and long-term profit loss resulting from a workforce that is not as current on technologies and market trends as their competitors

A Performance Management framework provides strategic clarity and communicates what the strategy is and how individuals and programs contribute towards common goals it doesnrsquot matter if the strategy is for a single operational unit or the entire organization whatrsquos important is that you take the time to define your objectives and what contributes to them internally In the context of the Act organizations must find a clear and interactive way of visualizing it using a common framework so that individuals understand what the different focus areas are and how their efforts impact their performance

Recommendation 3 Communicate In-Context Performance Results Outputs and Outcomes to All Stakeholders Using Current Technologies

Effective communication of your operational organization-wide or initiative-specific strategy (in the case of the ARRA) involves transforming directions and goals into an actionable plan which in turn will help align frontline resources to day-to-day activities Automation is a key element to success in this area as is the ability to represent and utilize more than one Performance Management Framework

Typically government organizations are already (knowingly or unknowingly) well seasoned at Performance Management as they have been required to report on the performance of their programs for more than two decades As such government has reached a point where access to one-dimensional KPI reports is simply not enough ndash especially in light of the tremendous amount of information that exists in regards to the ARRA It really comes down to the basics to succeed with any initiative government will need to embrace technologies that provide management with insightful summarized KPI insight while delivering sophisticated linkages to the underlying information that feeds performance data But they need this information at their fingertips searching for it is not longer an option

A growing dynamic across sectors is the emergence of Open Source platforms and technologies as a viable alternative to the standard operating system-based solutions that many organizations had become accustomed to in the past Open Source provides a host of technical advantages most of which contribute to the ongoing enhancement of application speeding up the release cycle with business users and developers Open Source also provides significant long-term cost savings freeing up scarce IT dollars for other strategic initiatives

Open Source is the most rapidly growing technology today According to an article published by CIO Weekly in March 2003

[ Figure 11 ]

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54 percent of CIOs surveyed said Open Source will be their primary platform within five years The backbone of the internet even runs on Open Source software In addition to the benefits already noted some other high- level benefits surrounding the deployment of Open Source solutions include

bull Solutions vs software With Open Source programming the application received is precisely what the customer wants nothing more and nothing less Customers can elect to buy value-add products build it themselves or contract the work to a firm specializing in programming under a specific Open Source project

bull Speed to deployment A community of programmers develops the core elements of Open Source solutions and market deployment of these solutions is often quicker than proprietary business models

bull The role of developers Open Source developers working directly with consumers ndash in this case government agencies ndash can apply the best technology to meet the agencyrsquos immediate needs

bull Open Source standards and security Open Source solutions are extremely secure and vastly scaleable and reliable So much so in fact that prominent members of the financial industry such as Merrill Lynch and Credit Suisse First Boston use Linux ldquoopenrdquo servers for transactions

In all cases when searching for an integrated Performance Management solution your needs analysis should include complementary features and functions that help create the foundation of a system that people like using Donrsquot ignore features that help users access related knowledge best practices or the ability to quickly and easily deploy highly interactive executive scorecards dashboards and reports These will all contribute to high user adoption and alignment of your resources while external stakeholders are satisfied through similar display options built for them

Recommendation 4 Revisit Plans Regularly ndash Performance Management and Information is a Fluid Process Where Requirements and Directions Change Over Time

Performance Management in its truest sense has always involved getting cross-functional groups of people to work together through high levels of collaboration to help define organizational strategy (through the identification of high-level organizational goals and objectives as well as through related lower-level KPIs and metrics) Unlike other initiatives which have a natural start and end date you will find Performance Management is an ongoing process of redefining refining and changing directions as the environment around you changes and as directions from management are modified to react to changes in your surroundings For government the global economic crisis has placed increased expectations on every level of government to communicate performance and demonstrate accountability In doing so existing strategies will

need to be modified to include newer initiatives put in place to kick start recovery In essence the job is never done ndash itrsquos ongoing In addition to the general updates to strategy that all organizations experience over time you may also want to consider the following for effective management of your Performance Management initiative

1 Examine your initiative from the Program User and Technical aspect This will provide you with a structured way to review your Performance Management system your usersrsquo perceptions of the system and actual design of your strategic framework

2 Review outcomes to determine how much value is derived from your efforts

3 Review how well you have responded to transparency demands or performance improvement

4 Incorporate new initiatives and measures within existing scorecards in an efficient manner

5 Review current measurement processes to ensure consistent measurement across the organization

6 Re-educate your workforce as needed

7 Provide a forum for dialogue of new ideas

8 Ensure you are maximizing the use of your Performance Management system

Recommendation 5 Integrate Performance Management to Benefit from Two Highly-Collaborative Communities

Time and time again important decisions are made at organizations and across sectors using the traditional short-term ldquofinancial balance sheet approachrdquo Markets globally have demonstrated how this approach is flawed because it doesnrsquot take into account how these short-term decisions will impact future performance levels or the long-term viability of an organization

Earlier we suggested government take an integrated approach to Performance Management because of the tremendous benefits associated with having access to all enterprise information in a seamless environment that provides users with instant access to information at all times One of the main benefits not mentioned earlier which is critical to the ongoing success of any enterprise implementation is collaboration Collaboration can be divided into two groups collaboration among developers and collaboration among business users These two groups can come together to extract higher levels of value from Open Source technologies

Developer Collaboration

Open Source applications are built with the expectation that they will change they have to in order to grow and support new users These characteristics are the hallmarks of successful applications they keep their momentum by adding both users and features at the same time Open Source communities

contribute to the process by allowing application and report developers access and by sharing knowledge and resources relating to Open Source technology

In real terms using Actuate as an example the BIRT Exchange is a community site for Eclipse BIRT and Actuate BIRT developers who add reporting analytics and business intelligence capabilities to Java applications BIRT Exchange allows developers to share code samples and report designs tutorials technical articles as well as tips and tricks BIRT Exchange also offers forums downloads online documentation and information on BIRT technical support

Open Source applications also share a unique self-fueling characteristic in that the velocity to which they are enhanced is much faster than traditional applications ndash and this is directly attributed to its higher levels of collaboration Another way to look at this is from the context of a user and by looking at a series of events that unfolds as users embrace a new application and start to make requests

1 When you give users information you make them smarter

2 As they become smarter their questions change

3 This in turn changes application requirements or scope

4 Commonly-requested functionality is added to the application

5 User and developer collaboration speeds up the development cycle

Business User Collaboration

As mentioned earlier Performance Management is a highly collaborative effort that involves multiple internal and external stakeholders working through how goals and objectives translate into lower level KPIs which in turn link to frontline metrics It is only after an organization creates these linkages that alignment can occur A common thread for any strategy ndash regardless of industry ndash is that with time it will somehow change as organizations react to internal and external events so one can also look at it as an evolutionary process that involves everyone working towards a common set of goals and objectives which at some point over in the future will be changed or modified

What benefits can government organizations expect from the Integrated Performance Management process and how does collaboration add value Through an integrated understanding of performance government organizations gain insight into all aspects of their operations allowing them to have tighter control over obvious areas such as waste efficiencies and human resources in addition to enhanced insight into more strategic long-term success indicators such as innovation and sustainability among others In all cases this enhanced perspective into how an organization is performing across its top-level goals creates a smarter organization that empowers people to make better more informed decisions Simply put the Integrated Performance Management systems they use provide them with a complete picture Value is realized when a strategy is in place and when a systemized Performance Management initiative takes hold internally This is when performance results are communicated in the context of the organizationrsquos mission The communicated performance results then become a trigger to fix and improve areas where performance is below target ndash and the difference or ldquodeltardquo is value

Of course no strategy is perfect and over time it needs to be revisited enhanced and improved (if needed) by the same internal and external stakeholders that helped define it in the first place The process repeats itself once again which enhances the value or output of the planning efforts ndash each iteration hopefully provides a higher value return Without collaboration strategy canrsquot be improved and value canrsquot be enhanced

How Developers and Business Users Enhance the Value of Your Open Source Applications

Integrated Performance Management powered by Open Source technology creates a bridge between the developers who have traditionally collaborated (from a technical standpoint) in the Open Source model to include highly strategic executive-level business users Collaboration is enhanced with Open Source because the needs of technical and business users can merge from what was once two distinct development paths into a single cohesive system of requirements and enhancements which all serve to improve an application over time

For government specifically Open Source not only delivers the benefits associated with more rapid deployment of technical updates and changes but it also offers government leaders

Performance Management in its truest sense has always involved getting cross-functional groups of people to work together through high levels of collaboration to help define organizational strategy ldquo

rdquo

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Vol 6 Issue 2 2009

Need More InformationVisit the Actuate Website

wwwactuatecomwhy-actuateapplicationsstimulus-management

Download a Brochure of the Actuate Stimulus Management Solution

wwwactuatecomdownloadbrochures-datasheetsOPM-Stimulus-Management-briefpdf

Get access Actuate Stimulus Management Live click here

wwwactuatecominfoStimulus-Management-Live

a means to share best practices report templates measure structures scorecards etc that are not readily accessible with a closed model Additionally since governments serve to improve performance at all levels to their constituents the concept of collaboration exists in its truest sense because ldquocompetitionrdquo does not exist (as it does in the corporate sector) Governments in this sense are unique in that they can focus on collaborating with other government organizations to ensure that they learn from each other and can benefit from enhancements from either a technical or business standpoint

Responding to the ARRA How Do You Get There

Open Source ndash The Best Option for US Government

By no means is Open Source a new idea Open Source technologies and solutions such as Java Linux Solaris MySQL Apache and OpenOffice are well established and well proven with billions of people using them Some of the worldrsquos most successful companies ndash including Google and Facebook -- run their businesses on Open Source technologies

There are a few success stories in the US government yet we still lag behind governments in the United Kingdom Brazil Denmark the Netherlands China and Germany etc Governments there have engaged in formal wide-scale deployments of Open Source technology with many having articulated specific policy on Open Source As such without a clear Open Source policy in place the United States risks widening economic and technological competitive gaps between itself and the rest of the world

Do You Know BIRT

When it comes to solutions designed to respond to the reporting and transparency requirements outlined in the American Recovery and Reinvestment Act government leaders

will be pleased to hear that a full suite of value-added products and solutions are available today that are built specifically to address the ever-changing reporting complexities of the Act

Sitting at the core of this pre-built Stimulus Management Application is the Actuate BIRT Performance Scorecard the most fully-featured Integrated Performance Management System ldquoIntegratedrdquo is the key word here ndash because true performance insight requires access to all of your information so that it remains in context with your search at all times regardless of where your data resides

So what sets BIRT apart Itrsquos Open Source to start In fact itrsquos the most widely-used and accepted Open Source business projects in the world and it is reshaping how people in the workplace collaborate to use assemble and view information through the enhanced dynamic interactivity it delivers to every user across the enterprise

This rich collaborative environment is different because of how quickly changes can be deployed and enhancements added to the core technology stack BIRT will change how internal consumers view and use information and their changing needs help dictate future enhancements

Components of Actuate BIRT Stimulus Management

bull Pre-built framework of over 250 ARRA metrics

bull Dynamic BIRT templates including cost reports and interactive Google Maps

bull Actuate BIRT Performance Scorecard The most fully featured Performance Management system Proven methodology delivers concrete milestones tailored for each customer

bull Actuate BIRT and Flash Objects Intuitive rich dashboards display financial and non-financial metrics in context of other leading operational indicators with drill-through into personalized analysis-ready BIRT reports

bull Actuate BIRT Spreadsheets Automate the Excel spreadsheet creation process eliminating errors introduced by manual intervention thereby minimizing risk and improving data accuracy in business-critical spreadsheets

bull Consulting Services Unmatched Operational and Strategic Performance Management knowledge software consulting coupled with knowledge transfer

bull Metrics Library Leverage an extensive library of over 12000 metrics and a tailored ARRA solution database

John Katsoulis joined Actuate in November 2002 and is currently Senior Manager Product Marketing He has 13 years of combined experience in software consulting product management and product marketing John is responsible for the product marketing and development of new applications for Actuatersquos Performance Management solutions and also the editor of Perform Magazine

By Norma SimonsPresidentSimons-White amp Associates Inc

As workplaces become more complex with higher expectations the demand becomes greater for accountability and performance results As a result internal pressures escalate for organizational change which ndash if implemented

correctly ndash can lead to sustainable success for both corporate and government organizations

Itrsquos well known that Performance Management models and frameworks can help any organization create better alignment

by ensuring all resources are directed to those areas that are deemed strategic ndash but is that enough What about instances where alignment still falls short of expectations when the organization in question is still plagued with higher-than-expected levels of waste and inefficient processes How do you manage these processes and can traditional Performance Management methodologies provide enough insight to ensure success Or are other tools needed as well

With so many models and improvement tools available for organizations to use the challenge becomes one of identifying gaps and of implementing supplementary frameworks that fill those gaps These frameworks aim to fix operational areas that impact both top- and bottom-line strategy This article

TEN CRITERIA for Integrating SIX SIGMA with

Performance Management

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will address how any organization can leverage its current Performance Management efforts and enhance outcomes and results by integrating and applying Lean Six Sigma If done properly organizations can use Lean Six Sigma with Performance Management to systematically improve operational performance by eliminating waste and by creating efficient business processes

For those who are not familiar Lean Six Sigma focuses on improving the quality of process outputs by identifying and removing errors and variability in manufacturing or business processes The Lean approach leverages statistical methods and analysis and requires that an organization create a special internal team of people who are experts in these methods (Black Belts Green Belts etc) As such Lean Six Sigma projects follow specific steps and have quantified targets Another way to look at Lean Six Sigma is as a project that is focused on cost savings and on removing mistakes or defects in a process

A Performance Management system is key to any Lean Six Sigma implementation Itrsquos the foundation from which Lean Six Sigma projects are built which means organizations that donrsquot have a functional Performance Management system are starting the Lean Six Sigma journey without the right tools Performance Management helps to clarify the business case to link projects to the bottom line and to provide a baseline of comparison as performance improvement occurs project by project If you donrsquot have a good Performance Management system you donrsquot have an effective method to set priorities in terms of which project you need to start on first

Performance Management then becomes the skeleton or backbone to Lean Six Sigma initiatives ensuring that you select the right projects that projects are linked to the bottom line and that they are done in the right order according to priorities that make sense And once the project is done Performance Management ensures that improvements are monitored and therefore sustained for long-term success

Initiating a Lean Six Sigma project begins with an assessment based on available Performance Management information You identify the approach you want to use ndash whether itrsquos Six Sigma or Lean will depend on what the challenge is ndash you execute the project and finally you monitor the business process to replicate the benefits Many times Lean Six Sigma will fail because of an organizationrsquos inability to replicate success yoursquove done a project there was success but you canrsquot repeat the process If you start off with a Performance Management system it becomes the DNA of the company that you can use to keep and maintain projects

There are 10 criteria that should be used as a baseline focus for the design of a Lean Six Sigma initiative integrated with Performance Management These 10 criteria will vary depending on whether yoursquore with government education healthcare or manufacturing and each has unique requirements that will impact how your program is going to be designed ndash but the fundamental principles in each criteria stay true across these segments

1 Customer Focus

Customer focus is one major criterion that will impact how a Lean Six Sigma initiative is designed Companies should be asking these five questions

1 Is the organization focused on the needs of the customer rather than just internal organizational requirements

2 Is there a process to capture the voice of the customer in an active way Are there surveys for example or are there means of talking to the customer to capture that information

3 Is that information collected Do they keep track of customer data

4 Is the data reviewed and disseminated so that people internally can understand how the organization is viewed

5 Are people aware of the internal customers as well as the external customers

This idea of customer focus is easy to grasp in the manufacturing environment because at the end of the day you are producing a product ndash a deliverable thatrsquos physical In other words many times when you go into a manufacturing plant there is some visual clue that gives you an idea of the extent of customer complaints especially external customer complaints There are also some areas of the organization that will be actively capturing the voice of the customer ndash in the marketing and engineering departments for example ndash communicating that information and using that information in the design process

Government organizations present a different challenge since customer focus is not something that is generally paid much attention to there What we find is that in the public sector you have a captive audience When you think about going to any public-sector organization ndash any city council or the mayorrsquos office etc ndash you are not there by choice As a result people within those environments lose sight of value because their remuneration is not tied to customer satisfaction instead they tend to be very internally driven and focused more on specific procedures that need to be followed and adhered to no matter what They donrsquot try to make things user friendly because they donrsquot have a natural customer focus built into their organizational DNA This is a major struggle in government

Similarly in the case of education customer focus is not a concept that is always embraced or translated in a way that produces desired results for stakeholders Individuals seem to forget or try to get around the idea that students are actually critical customers They are the deliverables of the entire educational system and their tuitions fund the school yet

despite this reality you still find professors and administrators who lose sight of who the customer is Again you have a service being provided without any dialogue or feedback and the people who are paying for it donrsquot get to ask any questions The customer focus is not very strong

Finally in healthcare everybody understands customer focus Everybody is panicked about the patient the safety of the patient and the care the patient needs But the system is not designed to deliver effective patient care they have not structured the system with that in mind Instead cost efficiencies and utilization take precedence

2 Leadership Commitment

Leadership commitment is also very critical to any Lean Six Sigma rollout What we typically find is leaders who are experts in their fields but who have limited or no knowledge of Lean Six Sigma they may hear of the terminology and think it sounds like a good thing but when itrsquos deployed they donrsquot get involved Companies that are successful in Lean Six Sigma are ones where management has been on board and an active part of the rollout from the beginning If management understands what Lean Six Sigma is about they can demonstrate the value it delivers therersquos a connection between processes and

business priorities and they can be more proactive in their involvement of Lean Six Sigma when these connections and the impact of their improvements are made clear to them

Traditionally leadership commitment in Lean Six Sigma has been weak no matter the industry In the manufacturing environment managers in some cases have bought on but in healthcare education and government leadership commitment is still weak In most cases itrsquos unfortunately one of the weakest links of any Lean Six Sigma initiative

3 Organizational Culture

A major problem in many organizations is the insufficient use of data not having the right data or not understanding how to use the data These stumbling blocks can have a tremendous impact on the culture of an organization since there is a strong psychological component attached to performance data This psychological component isnrsquot just related to how data is collected but also to how itrsquos viewed and the response it elicits For example when performance data is used to point out who went wrong theyrsquove in turn introduced a culture of fear that precludes the collecting and effective

use of data In turn this results in fewer people using the performance information and can also lead to people actually fixing the numbers because they know that data will be used against them The psychological component is critical

Also important is teamwork and collaboration across departments Wersquove seen more movement towards collaboration in the past 10 years in the manufacturing industry where certain initiatives have forced people in that sector to be more collaborative than they were originally A good example is concurrent engineering which allows for products and processes to be developed and refined by teams of people some of whom may work in the same building while others are in a different city or country their processes and goals are aligned to ensure a common output

In sectors where collaboration is less evident there are indications that this is partly due to strong departmentally driven organizational silos that prevent the collaboration needed to get to the next level As such the concept has had little impact in these organizations which most people characterize as being rule and process driven When presented to work together to improve performance these organizations are more likely to find out where the problem exists to ensure the right people are held accountable instead of using the cross-functional platform to ascertain how the organizational process of one or many departments can be improved to ensure better results in the future

If you are just beginning a Lean Six Sigma project and run across an organizational culture that is built on fear and mistrust or one heavily influenced by departmental silos and rules yoursquoll have to leverage Performance Management and demonstrate its benefits as you slowly align groups and people to a common set of goals and objectives while along the way you link to processes If done properly this key success factor will ensure you maintain the momentum needed to effectively engage and implement Lean Six Sigma and Performance Management

4 Company Strategy

If a company strategy is not embraced at the start of a project you can go down the path of putting together a Performance Management system and working on Lean Six Sigma with no alignment to top-level strategy or mission You many find that many projects will have no clear link to the direction and overall

purpose of the company Therefore they wonrsquot drive the right results The whole initiative will become short-lived as a result because when therersquos a crisis everybody will just move in a different direction

Everyone needs to understand the company strategy This will ensure that corporate strategy drives Performance Management that your improvement initiatives are closely aligned to top-level goals

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and KPIs and that your people naturally work on the right projects

Demonstrating this linkage and the success you can attain by engaging the process properly can build the business case Another way is to demonstrate what can happen if you donrsquot fix the problem and its overall impact on the organization

5 Process Management

Process management is a foundation on which to build a cross-functional silo which is a good thing because it allows you to break through the traditional barriers associated with processes which for the most part tend to be focused around individual departments or business units Introducing the concept of process management into an organization can be disruptive especially if this individual is tasked with looking at the linkages of business processes across departments and how they can be improved

Most organizations typically already have departmental managers who run functional areas Whatrsquos missing in most cases are process managers who are tasked with focusing on critical cross-functional processes key to the survival of the organization and to the elimination of waste and increase of value through overall improvements

In organizations with siloed ldquofunctionally drivenrdquo cultures disconnects between different departments create waste and over time this erodes value To ensure success any improvement effort needs to be executed carefully facility by facility or function by function looking at processes baselines and at collaboration across these areas This is key to eliminating inefficiencies in organizations

6 Support for Change

Itrsquos important to recognize that Lean Six Sigmarsquos integration with Performance Management is providing many industries with a new way of looking at running complex organizations As such it needs to be embraced by everybody People need to have a positive view of Lean Six Sigma and the organization has to be prepared for the suggested changes Many times individuals misinterpret recommendations as an attack on how they are executing their duties but actually Lean Six

Sigma can be leveraged to amplify the efficiencies of individual departments by ensuring the same level of scrutiny is applied at process junction points

When managing change it is important to take into account the characteristics of the industry in question including the history of the organization the organizationrsquos overall cross-functional culture and the attitudes of its workforce and management In many instances people donrsquot want to initiate change because they think any new process is a phase that will soon pass and that theyrsquoll be returning to business as usual at some point in the future To ensure these difficult situations donrsquot impede on the Lean initiative there has to be some kind of orientation that has to match the industry in question whether itrsquos government manufacturing health care etc

7 Performance Measurement

Companies must identify their true performance drivers or Key Performance Indicators as opposed to measurements that are collected regularly that donrsquot relate to anything Often those numbers have been created randomly which means theyrsquore not driving organizational performance and as a result wonrsquot provide the insight needed to make informed decisions In other cases these measurements are in place because at some point in time someone thought they would be a good idea but under more careful scrutiny they reveal very little For many this problem exists because people donrsquot know the difference between a metric and a Key Performance Indicator

Performance metrics are measures of an organizationrsquos activities and performance Performance metrics should support a range of organizational needs in order to provide proper performance insight While traditionally many metrics are finance based ndash inwardly focusing on the performance of the organization ndash metrics may also focus on performance against customer requirements and value and also include information and performance insight into employees and processes

As mentioned a criticism of performance metrics is that many organizations choose measures that have little value In most cases this is caused by selecting what is immediately measurable even if these measurements have low value and by a tendency to ignore high-value measurements simply because they seem harder to measure

Key Performance Indicators (or KPIs) are financial and non-financial measures or metrics used to help an organization define and evaluate how successful it is typically in terms of

how it is making progress towards long-term organizational goals KPIs can be specified by answering the question lsquoWhat is really important to different stakeholders both internally and externallyrsquo KPIs differ depending on the nature of the organization and the organizationrsquos strategy They help to evaluate the progress of an organization towards its vision and long-term goals especially towards difficult to quantify knowledge-based goals You can measure a process with many metrics but only a few of those metrics are key for your organization (for example based on your business strategy andor operational improvement initiatives)

The intent of performance measurement is not just to have measurements but to have the right measurements at the right time in the right place and to make sure that those measurements drive overall performance Itrsquos key for setting a foundation for Lean and Six Sigma If there is a good performance measurement system in place that takes into consideration Key Performance Indicators or key drivers then it becomes much easier to set up the entire project

8 Problem-Solving Skills

Performance Management systems become key indicators to groups of individuals within an organization helping them to measure their own performance Without performance measurement without a good system in place they have to wait for their boss to tell them theyrsquore not doing the right

thing Performance measurement then offers a mirror or a type of feedback mechanism on how well a process is doing Problem-solving skills meanwhile provide you with the tools to do something about it

A lack of problem-solving skills can be a major stumbling block for people and organizations they may be measuring things but if theyrsquore not doing anything with the results that becomes useless Recognition is only the first step having the skills to do something about it is the second Itrsquos the critical second half to Performance Management

While problem-solving skills ndash in the manufacturing environment at least ndash have become a priority over the last 10 to 15 years theyrsquore still not ingrained into the industryrsquos DNA People coming into the workforce are coming without proper problem-solving skills and they have to learn them as they go But one problem is that information silos exist and because individuals are not seeing across those silos they miss the solution to the problem at hand Thatrsquos one barrier A second one is that people often think that problem solving is for someone else that itrsquos not part of their job description Theyrsquore not trained in problem solving they donrsquot know how

to recognize problems and identify problems and describe problems and find the root causes of problems Coming up with a structured methodology for problem solving and problem resolution is a piece thatrsquos missed across the board

This is the main reason why problems occur over and over again because people are aware that theyrsquore occurring but donrsquot know how to respond to them they donrsquot have the skill set to do so Moreover theyrsquore often not even allowed to do so because itrsquos not part of their job descriptions Or some problems might be initiated between departments which means that without a culture of collaboration things donrsquot come together

When yoursquore solving a problem it canrsquot be a random event it has to be with structured methodology Before anything a scope must be determined What is the problem How do I identify the problem How can I measure that this is a problem Whatrsquos my baseline performance Now that I know my baseline performance whatrsquos my root cause And the root cause has to correspond to drawbacks that exist in the system that are preventing you from achieving a certain objective

The number one reason why we canrsquot solve problems is that we canrsquot describe them and you can only describe a problem if you have a measurement system in place that helps you understand where you are In any environment a problem is defined as a gap in performance between where you are and where you want to be Thatrsquos it If you canrsquot describe the problem in those terms then you canrsquot solve it Many organizations will say that communication is their biggest problem and they canrsquot seem to resolve it But why not Because communication is a symptom of whatrsquos happening not the problem itself Most times people respond to symptoms and not to actual problems

Finally often when a problem occurs the first thing asked is lsquoWho is at faultrsquo But if thatrsquos the first question then the chance to resolve the issue is immediately lost Because if you ask lsquoWho is at faultrsquo everyone immediately tries to protect themselves if someone feels that they could be at blame then theyrsquore not going to come forward to try to solve the problem ndash rather their objective is going to be to protect themselves When this occurs because they donrsquot want to be at fault they might generate another piece of data to cover themselves another procedure on top of another procedure That only adds more complexity and generates more waste Which is why the first question should always be lsquoWhy did it happenrsquo instead of lsquoWho is at faultrsquo

9 Business Intelligence

You canrsquot run an organization department or process based on data that you received a month ago Which his why in todayrsquos environment information applications need to provide you with up-to-date real-time data in addition to the summarized performance information that can be used to identify potential longer-term performance issues

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Everybody within the company needs information and uses data In most cases employees are interacting with real-time information and making decisions based on historical performance The problem is people tend to want to report on everything which preoccupies employees and takes them away from their core duties Fully integrated Rich Information Applications address these issues by providing employees with real-time enterprise data using a single version of the truth delivered in a dynamic environment that allows any user to interact and modify the information to answer business questions specific to their function

10 Human Resources

Finally one of the things that also has prevented success and is sometimes a stumbling block for Lean Six Sigma deployment is the fact that the training programs that are rolled out by human resources may not be closely aligned with the companyrsquos mission

Once a company starts down the path of Lean Six Sigma the human resource systems need to change alongside it At the heart of Lean Six Sigma is a team approach reward and recognition systems need to reflect that so human resource systems will need to address it

Also critical is that team building has to occur across functional silos You have to build teams and people have to collaborate Human resource systems will drive that

Conclusion

To summarize itrsquos clear that when executed properly there are tremendous benefits associated with an integrated Lean Six Sigma Performance Management initiative Organizational Performance Management information provides strategic information and communicates progress towards a set of goals or objectives across the organization but in instances when things go wrong Performance Management alone does not provide a means to systematically and consistently address problems that arise in the business process or production realm This is where Lean Six Sigma can help assisting organizations in addressing these defects to ensure better results in the future

Norma Simons is president of Simons-White amp Associates a performance consulting company in Ann Arbor Michigan that has been in business for over 16 years and employs performance improvement systems such as Lean Six Sigma Quality Management Systems Business Operating Systems and Balanced Scorecards Certified as a quality engineer reliability engineer and a Six Sigma Black Belt Ms Simons has an MS in industrial engineeringoperations research from Wayne State University in Detroit Michigan Contact Ms Simons at nsimonssimons-whitecom or visit wwwsimons-whitecom

In instances when things go wrong Performance Management alone does not provide the means to systematically and consistently address problems that arise in the business process or production realm This is where Lean Six Sigma can help

ldquo

rdquoldquoWith the Actuate BIRT Performance Scorecard in place now we are able to communicate lsquowhat is important to the organizationrsquo across hierarchies and geographies seamlesslyhellipcause-andndasheffect maps have become the basis for all reviews and prioritization of strategic initiativesrdquo

- Gopal Sharma Senior Manager Business ExcellenceVoltas Limited Dubai

To deliver on its mission to provide high quality cost-effective project management and engineering services to customers throughout Asia Voltas

Internationalrsquos Electrical and Mechanical Division (EMD) adopted the Balanced Scorecard (BSc) as a tool for strategy deployment in 2004 The BSc was designed for EMD in line with the strategic objectives and cascaded further to all units and business heads for effective implementation The measures were tracked on a quarterly basis using Excel spreadsheets

Tracking BSc measures through spreadsheets proved to be ineffective in tracking progress on divisional performance

measures Moreover due to lack of integration the Performance Management tracking through BSc was limited to financial measures only The non-financial measures were not tracked due to lack of aggregation of data across levels and geographies This led to misalignment among various functions resulting in ineffective strategy deployment across the division

The major hurdle was ensuring the integrity of the performance data on non-financial measures hence an integrated system was required to ensure the flow and aggregation of data across all levels Also the reporting structure on various key performance indicators (KPIs) was not streamlined for effective Performance Management in the division

The situation prompted Voltas to seek automation of the Balanced Scorecard with integrated tracking and monitoring of the KPIs related to strategic objectives of the company

The SolutionA team was formed to explore more robust Performance Management tools Voltas conducted its due diligence in

Putting the Wheels Into MotionVoltas Views a Dramatic Shift Towards Transparency

Alignment and Dynamic Response

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finding an appropriate solution and in December 2007 chose the Actuate BIRT Performance Scorecard as its Balanced Scorecard solution

The software was customized in-house to the divisionrsquos needs and implemented across levels and locations The major challenges overcome during implementation were

bull Complexity of location structure and measures structure This sophistication and flexibility was a requirement to ensure the integrity and correct aggregation of the data and needed to be incorporated into the overall system

bull Aggregation of financial performance data from different countries in different currencies Led by the local support team and Actuate partner EU Partners a currency conversion facility was created to overcome this hurdle

bull Software access through smart client route at project sites A weak internet connection problem was resolved by Actuate Customer Support which installed the clientrsquos executable file on the local PC An Excel import and export tool is used for data updates to the system

About VoltasElectrical Mechanical amp HVAC Solutions (International) is part of Voltasrsquo Electro-Mechanical Projects amp Services cluster Established in 1978 as Voltas International Limited (a wholly-owned subsidiary of Voltas Limited) to handle international business interests the business looks after core business activities in the Mechanical Electrical amp Public Works (MEP) project areas specifically turnkey projects in

bull Electro-mechanical works comprising electrical building services HVAC (heating ventilation amp air conditioning) plumbing public health fire fighting ELV amp specialized systems

bull Electrical power projects

Voltas Limited a TATA enterprise offers engineering solutions for a wide spectrum of industries in areas such as heating ventilation and air conditioning refrigeration electro-mechanical projects textile machinery machine tools mining and construction equipment materials handling water management building management systems indoor air quality and chemicals EMD is one of four independent business-specific clusters within Voltas Ltd each with its own facilities for market coverage and service to customers

All of the above challenges were addressed easily to match the companyrsquos needs thanks to the versatility and customizable features in the BIRT Performance Scorecard

The initial rollout of the Performance Management system started in March 2008 with successful system deployment across all locations by the end of August 2008 The implementation involved user training on the software and BSc measures

Benefits

All business reviews are now being conducted online in the system both at the regional and corporate levels Managers can view the status of each project by just logging in as well as review and approve actions planned by the project lead without waiting for any formal performance review meetings This has led to a dramatic shift in the way Voltas manages its performance and has improved the transparency in tracking KPIs

Major benefits derived from the implementation are as follows

Solution OverviewIndustry Engineering Services

Company Size $400 million 3800 Employees

Challenges

bull Spreadsheets ineffective in tracking divisional performance

bull Non-financial measures were omitted due to data integrity issues lack of aggregation

bull Strategy unevenly deployed leading to misalignment

Solution

bull Actuate BIRT Performance Management Software Suite

bull Integration consulting services

bull Customized smart client

Benefits

bull Transparency in tracking KPIs all in one place

bull Alignment of action plans to division strategy

bull Dynamic Performance Management timely reviews

Design Stage

bull Measurement system evolution and refinement during system configuration

bull Clear consensus on KPI definitions and descriptions

bull Minimal support required during configuration and implementation

bull User training and access with individual user ID and password cementing ownership and accountability of the scorecard across hierarchies in the division

bull BIRT Scorecardrsquos ease of customization to business needs enabled instantaneous execution of required changes in the system

Rollout and Implementation

bull Strategy Map and other Cause amp Effect Maps have become highly illustrative in communicating the relevance of various measures and their integration with strategic objectives

bull Action Plans are fully aligned to divisional strategy and can be monitored online

bull Timely business reviews and dynamic communication of performance

bull All key performance indicators are tracked and available in one place business performance reports are generated as and when required

Going forward Voltas plans to roll out BIRT Scorecard access to its subsidiaries and to joint ventures in order to track the Balanced Scorecard of allied companies on the same platform The goal is to use it as a comprehensive Performance Management tool for the international operations of the entire company

Voltas has branch offices in Abu Dhabi Dubai Qatar Singapore and Kingdom of Saudi Arabia For more information on the company visit wwwvoltascom

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In todayrsquos economic climate careful decisions are needed to help

business remain competitive and to continue to succeed To stay smarter they need to build deploy and maintain business-critical reporting and information applications

Open Source Business Intelligence while it comes with its own set of technical challenges and misconceptions is often the right solution to deliver that Actuatersquos Business Intelligence Reporting Tools (BIRT) Open Source solution ndash developed with the Eclipse Foundation ndash is one example of a robust and web-centric Open Source Business Intelligence tool

The Open Source Model

An economic shift has occurred in the past decade introduced with the rise of the internet The internet provides connectivity which in turn connects demand to supply this removes the capital equation and shifts conditions in the market People with computers all over the world provide the means of conduction and with easy ways for these people to connect they can easily collaborate on projects with very little infrastructure This in turn led to the popularity of Open Source

Open Source has had many consequences for the enterprise software market primarily by making it a commodity market and by driving down price It also allows people who have a desire to do something to make money from doing it Production inputs are widely distributed and the raw materials are there to produce things in new ways Many argue that this shift has been about software licensing but actually it is largely about the production and distribution of software it is therefore a change that is more about economics that about ideology That economic base ndash the combination of connectivity of easier ways to market produce and distribute software and the fact that the internet acts as a giant copying machine ndash changes the conditions under which software can be sold That is why Open Source continues to disrupt the market and to force vendors to come up with new ways to cope with it Enterprise software is not going away rather it has been forced to shift

A 2008 survey by North Bridge Venture Partners asked Which sector of the software industry is most vulnerable to disruption by Open Source At the top of the resulting list was web publishing and content management a market thatrsquos currently highly fragmented and therefore perfect for introducing Open Source products The second sector was social software an entirely new category that has been difficult to define and difficult currently for commercial vendors to make money from again Open Source is the ideal solution

Business Intelligence was the third sector listed in the North Bridge survey Again this is understandable since BI tools and data warehousing tools are exactly that tools While end users consume the outputs theyrsquore not themselves often put into the hands of end users rather IT sets up the meta-data defines metrics etc Which means Open Source is targeted at the right audience there is a platform in a data warehouse that has multiple layers any one of which can be Open Source or

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proprietary Those modular boundaries make Open Source an ideal fit

What IT Looks For

IT acts ndash for the most part ndash as the gatekeeper to Business Intelligence When searching out new software IT generally looks for three things

1 Better alternatives to the status quo Specific features that are better for example

2 Ways to cut costs With commodity infrastructure in place IT has to try to drive down costs

3 Unique attributes There may be something they want to do but cannot do using their current system or features that might not be available (For example their mainstream BI package might not have web-accessible dashboarding that can be self-service)

Why Open Source

In addition to examining the sectors left vulnerable by Open Source the North Bridge Venture survey also asked What makes Open Source attractive Price was the most popular answer In addition to the capital cost of licensing Open Source drives down acquisition cost as companies no longer have to go through heavy proof of concept Itrsquos also easier to trial things and if license costs are less then maintenance costs are also less Finally unbundling maintenance support and service means that businesses can choose from a menu of services instead of being forced into a 20 percent single lump fee

The study also showed that companies found that Open Source offered freedom from vendor lock-in In addition it is flexible with easy access to commodity code in order to develop embed and build content into websites

Another 2008 study by The 451 Group gave a list of what organizations saw as benefits to Open Source once it was already introduced At that point flexibility ndash by 05 percent ndash came out over cost In this instance though the definition of flexibility was different respondents were impressed by the fact that there is no vendor that dictates when they have to upgrade how they have to upgrade and why they have to upgrade For a commercial vendor at end of life or desupporting versions of their software a sales and marketing schedule will often require a release every Q1 whether they are ready or not As a result

companies will be forced into an upgrade they donrsquot want that was released simply because marketing dictated it and not necessarily because it was ready Open Source is typically not under those same types of pressures

Buyers were also impressed by scaling costs if an organization has 50 initial licenses and pushes it out to 150 more people in BI lowered costs come in beyond the initial capital costs As well companies are not dependent on vendors for service or for additional pieces of technology

Whorsquos Adopting

Open Source Business Intelligence adopters include

bull Independent software vendors solution providers and OEMs They are taking Open Source BI and pushing it into products that need reporting and dashboards Theyrsquore beginning to build capabilities using Open Source into quality networking gear file servers and databases

bull People who have traditionally been underserved and have not been getting what they need for whatever reason They may not have had the budget or their current vendor might not offer some of the functionalities that they want Possibly it could be over-serve at least half of the features in a major BI stack today never get used

bull Developers Web developers provide information ndash especially database information ndash on their websites while internal developers have to build reporting features into applications and typically do not have access to the tools they need Tools like BusinessObjects and MicroStrategy live in a data warehouse in a different area of the organization and canrsquot be embedded easily

In terms of the organizations adopting Open Source BI many are on the small side with less than $100 million in revenue But very large organizations are just as likely to adopt Open Source solutions as well This is the inverse bell curve of Open Source BI implementation

Smaller-sized organizations have fewer data sources and more manageable data volumes are more interested in cost flow and also donrsquot have the same level of data volume and complexity that might exist in a medium-to-large organization or deployment Much more manageable data volumes less cost to scaling and fewer technology issues in terms of complexity make these ideal environments for Open Source

Open Source drives down acquisition cost as companies no longer have to go through heavy proof of concept ldquo

rdquo Large organizations though have equally ideal environments They arenrsquot for the most part introducing Open Source at an enterprise-wide level but rather have projects with specific features that need to get done The project in question may exist only within a single department which pushes down data sizes and deployment complexities making them a good target

Introducing Open Source BI

Open Source BI use often comes in at the edges and results from discontinuity An example of such a discontinuity might be a company restart many data warehouse projects started with a particular data model ndash copying a production database and putting reporting on it for example ndash and have to do a schema change At that point the cost of switching from one BI tool to another or from one ETL tool to another is fairly low Everything has to be changed anyway metrics change schemas change queries change The same is true with platforms moving from one database to another involves an integration of an entirely new set of systems These discontinuities often allow for the introduction of Open Source

New interface requirements can also lead to Open Source implementation as a company attempts to bring data-warehouse data into an application deploying it out through a website or via an application But some users may only need a few single simple production reports and donrsquot need to be served through a tool that costs between $1000 and $1500 per seat which is the average per-seat deployment cost of iTools Companies can reserve their BI tools for core individuals who need the flexibility and features and can build Open Source into applications for large-scale but simple reporting

In fact in most cases organizations donrsquot replace an entire system with Open Source That only happens in the cases of large discontinuous change where the features are good enough in an Open Source tool the deployment matches and there is no reason for pushing through a high-cost high-complexity solution Whatrsquos more likely to happen is an augmentation where a particular department ndash or a segment of users or particular class of tool ndash is given something that they need in Open Source For example a BI tool might be good and flexible with interactive reporting that can get production reports out and do the schedule but perhaps doesnrsquot have statistical features rolling out something like R to only a couple of analysts and layering that on top of the warehouse may be the solution

Augmenting and bringing in new features and capabilities in areas where Business Intelligence tools might be weak is typical of Open Source implementation This is an opportunity to augment an existing environment in a cost-effective manner to build features into that environment and to get the features specifically needed without paying for a whole package that isnrsquot all necessary

In contrast with what happens in the case of most traditional models much of the time the need for Open Source applications comes from the bottom-up and is established from a point of need from a developer or a department trying to get something done There are no enterprise sales representatives making calls or going through a procurement process where vendors and financials are examined There is also the ability to put something out in real terms instead of relying on a fake proof of concept where following that proof of concept companies are forced to either pull out and throw it away or to license the software

Roadblocks to Implementing Open Source

Misconceptions still exist around Open Source based largely on the idea that these projects are being developed by teenagers in their parentsrsquo basement a myth that is more than a decade outdated as today Open Source projects are generally run by commercial Open Source providers with paid developers Still a lack of information can prove a problem for organizations introducing Open Source This often plays out in the legal department which reviews all contracts and may not be informed when it comes to Open Source software licenses An Open Source license will be missing half the standard clauses the lawyers are used to clauses of restriction that dictate how to deploy what can be deployed where it can be deployed and how the software can be used Most Open Source licenses do not have these same clauses and lawyers will want to know why theyrsquore missing That can be another road bump in getting the software acquired

Support can also be more confusing Most major projects have commercial vendor support behind them But unbundling is also available which means buyers donrsquot have to purchase support but instead can buy the subscription model that covers only bug fixes integrated patch testing and certification against databases This is because enterprise support is often overrated more often than not internal support solves more problems than the vendor does

Augmenting and bringing in new features and capabilities in areas where BI tools might be weak is typical of Open Source implementation ldquo

rdquo

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Implementing Actuatersquos BIRT Open Source Technology

BIRT Actuatersquos Open Source technology was developed with the Eclipse Foundation and does an exceptional job in meeting web-reporting requirements while utilizing the Open Source model Itrsquos a Java tool with a web-centric development and design paradigm BIRT reports are built with the intent of publishing to the web exclusively or more exclusively than is the case with other alternatives that are typically intended originally for paper BIRT is also very modular and very component based allowing users to do as much or as little as they want to deploy as much or as little as they need when theyrsquore creating their reports or embedding this technology within their environment

One of the goals of BIRT is to cater to the power that is needed for many of todayrsquos reporting projects but also to offer the simplicity that means an individual report creator can be very effective at doing their job simply by using the BIRT design tool itself That goal has proven successful so far with 65 million downloads of BIRT since the projectrsquos inception 45 million of them in 2008 alone BIRT is in fact one of the fastest growing Open Source projects on the internet right now

BIRT does a great job of supporting a wide variety of report types it supports BRD Pro BRD BRS and IV and as users

build components throughout the project they can reuse those elements in subsequent future reports It also supports standards such as HTML cascading style sheets JavaScript Java and XML adding the underpinning technologies for either customization or enhancement and allowing developers to leverage BIRT while using the skills that theyrsquove already developed As an integrated report development environment BIRT also provides graphical and robust tools for the most common reporting tasks including query building ndash such as graphical object layout ndash and representing such as charting As well BIRT includes both online help and documentation

Itrsquos an incredibly robust tool and is capable of being embedded of being delivered to small groups or across the enterprise leveraging Actuatersquos commercial platform New capabilities include the ability to add interactive Flash objects into the environment to build personalized dashboards to create ad hoc reports and to create interactive viewing Actuate also recently introduced the JavaScript API which allows users to embed approximately a dozen lines of JavaScript into any webpage and from that access any content within the Actuate environment including any BIRT report that is hosted in that environment which in turn can be delivered to any type of JavaScript-enabled browser

BIRT is built in the Eclipse Project Actuate sponsors and chairs the project management committee for the BIRT project It is Actuatersquos third reporting technology built from scratch which means there is a high degree of long-term experience integrated into the BIRT environment

How the End User Benefits From BIRT

BIRT comes complete with 65 million sets of eyes worldwide looking at it and suggesting changes That has driven its enhancement in the marketplace The overall number of committers on BIRT historically is high and the current level of committers on the project remains high itrsquos nearly the same as Apache committers in the market today

Actuate ndash in its sponsorship of BIRT ndash has added and created a community called BIRT Exchange which is a resource for the BIRT development user to continue to enhance their BIRT expertise and to continue to gain help if needed from the BIRT community No question goes unanswered on BIRT Exchange which is at odds with what people often find in other Open Source forums where a huge number of questions remain unanswered from the audience Within the BIRT Exchange environment there are three different forum administrators who make sure every single question is answered BIRT Exchange also hosts the documentation for the entire BIRT product line as well as videos and webinars designed to further the training and adoption of BIRT itself

Actuate employs more than 50 developers on the Eclipse project itself with documentation and publications available in support of the project available at amazoncom

Actuatersquos Value Add

BIRT is modern and flexible and open Since itrsquos built within the Eclipse Project anyone who knows Eclipse knows how to use it Actuate adds interactivity which take the form of Flash widgets embedded into the BIRT development environment ndash allowing users to build their own types of dashboards ndash or through interactive viewing to transform a report from being static to something an end user can manipulate and evolve over time This is important because reports typically become obsolete quickly the requirements that they originally meet changes as users use the reports to become smarter and then the questions they want answered change Which means that providing this kind of interactive content is key to the success of a Business Intelligence project

Extending BIRT Capabilities

BIRT development tools and the BIRT engine are available as Open Source and are widely distributed Typical capabilities such as JavaScript and SQL skills are required to become familiar with the BIRT product

The second level of capability is the ability to embed BIRT within applications and to begin to add degrees of interactivity to the environment such as Flash widgets or the interactive viewer This allows a user to create robust rich embedded applications

The third level is for workgroup or departmental-style applications or small organization-type applications To adopt this type of Open Source technology individuals would introduce BIRT plus the single server iServer Express a hybrid of Open Source and commercial technology

Finally there are organizations that seek enterprise-caliber or enterprise-level deployments that want to publish BIRT applications outside the firewall to secure these applications for millions of users and to support very high degrees of performance and reliability This type of scalability requires both good design and trial and error as operating systems platforms and other elements continue to evolve Maintaining best performance for very large-scale environments means making sure that each one of these items is optimized

Open Source Vs Commercial Technology

The overall platform that BIRT delivers is a complete set of both development and deployment options for creating any type of environment Users can be characterized across a number of different lines from incredibly skilled Java developers to everyday report developers from people familiar with Actuate to those who are not from power users to business users etc

There are two fundamental questions that these users need to answer

1 Is BIRT the right technology for the application theyrsquore creating

2 Whatrsquos the best way to deploy it through Open Source or through commercial deployment means

The answer to the second question is reliant on a number of variables In the following situations for example Open Source would be the ideal alternative

bull Those users who want to use BIRT for individual use

bull Those who want to embed it into their own project

bull An ISV who has the technology in their own application to support printing and baked-in reporting needs

Converting to or supporting a commercial model meanwhile occurs most frequently at the enterprise-server level for organizations deploying the environment to hundreds or thousands of users It supports a wide variety of types of users

But both the Open Source and commercial models employ a common report design format Itrsquos a progressive development experience or a collaborative report design and collaborative process allowing each user to participate in the definition and the evolution of their reporting environment while at the same time using tools that are appropriate for their skills a novice user isnrsquot being overwhelmed by too many features while the power user or the highly skilled users receive exactly the right kind of technology and level of development capabilities theyrsquore accustomed to

Yet some of the decision-making criteria lean more effectively towards a do-it-yourself situation using the Open Source type

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of model and some lean more appropriately to a commercial investment and a commercial tool A growing level of complexity often drives commercial interest but certain complex functionalities ndash including supporting web services or web services SQL or other examples of integration techniques ndash the Open Source model is more than capable of supporting on its own

The applications Actuate deploys are information applications When choosing the paths of how to proceed ndash with regards to choosing either the Open Source or commercial interest ndash there are typically four premises to consider in an information application

1 Is the report or the application able to consume and collect data from one or many sources whether itrsquos a single report or a complex application Typically when the data sources are simple and the data connections well understood either Open Source or commercial interests are appropriate With meta-data layers and extraction layers the commercial model tends to be more effective But if itrsquos an embedded project using POJOs or other Open Source or specialty connectors ndash unique connectors ndash that often keeps a project more suited for an Open Source deployment

2 How is it able to aggregate and transform that data into meaningful information Looking at aggregation the same premise holds true if therersquos simple aggregate functions or automatic cross tabs or even custom or reuseable business functions both the Open Source and commercial models are appropriate In terms of embedded Java functions those aggregations are appropriate in either case Itrsquos when entering into areas of security ndash of parameter-driven values dynamic-parameter collection cascading menus etc ndash that a commercial purchase tends to excel over the Open Source version

3 What are the presentation options or formats available to present that data When the presentationrsquos fairly simple both Open Source and commercial apply When

charting cross tabs and embedded graphics are the norm then the two are served both in Open Source or commercial interests When JavaScript is starting to be used as a customization or a dynamic-properties delivery vehicle both the Open Source and commercial models are effective although keeping this content embedded within an environment is probably more appropriate using Open Source Itrsquos only when introducing elements such as interactive viewing capability or the ability to manage an environment through a management console capability that the commercial option begins to edge out

4 Are we able to achieve the levels of scale that we need to get that information out to every user whorsquos interested in it When individual use is appropriate Open Source is a better fit When transient content is what a company is delivering thatrsquos usually a better fit with Open Source as well as is embedding To support a collaborative reporting effect or to support a variety of developers and users ndash especially users with different skills ndash the shift begins to move towards a commercial style of delivery When therersquos custom delivery required such as JavaScript API the commercial environment is also more appropriate

These are the capabilities of different deployment options for both the Open Source platform as well as the Actuate commercial platform geared towards allowing organizations to get the value that they most see fit within their environment or their application Typically for environments that have a heavy requirement for infrastructure thatrsquos what drives the commercial purchase whereas customization or individual interests typically drive Open Source

The key thing for any organization is to first decide what kind of reporting technology they need ndash whether it be Open Source or commercial ndash and then to look at their own needs And finally consider the BIRT environment as a vehicle that meets web reporting needs

For more information on BIRT visit actuatecom

A growing level of complexity often drives commercial interest but certain complex functionalities ndash including supporting web service or web service SQL or other examples of integration techniques ndash the Open Source model is more than capable of supporting on its own

ldquordquo

One of the benefits of Actuatersquos Business Intelligence Reporting Tools (BIRT) is that very capability for flexible functionality thatrsquos adjustable to usersrsquo needs Every component of the BIRT technology ndash whether in the Open Source or commercial versions ndash builds upon the components before it creating a robust and flexible system designed to meet each organizationrsquos unique Business Intelligence needs

Choose the Right Graphical ToolThe first step towards evolving organizational Business Intelligence is choosing the right graphical tool The Eclipse BIRT technology for one is a visual designer thatrsquos geared at report developers as well as JavaScript and Java developers and can create a wide range of reporting technologies and web reports BIRT builds content that is specifically intended for the web and uses techniques that are expected when building web pages and web content It doesnrsquot use a banded report writer design or development metaphor typical of many older report-authoring products including Crystal Reports or Jasper

BIRT is the third from-scratch product that Actuate has sponsored and developed and as such it takes into account more modern capabilities and techniques for developing web content In building BIRT Actuate has drawn from its extensive market knowledge borrowing best concepts from other products as well as from its own Reusability and the ability to include programmability within the environment have been traditional Actuate capabilities that have been included in BIRT but BIRT technology also uses de-facto standard programming capabilities such as embedding JavaScript and Java into the application rather than using a proprietary language

Open Source is the core reporting capability and value-added commercial products can be added to it More than 50 developers are employed by Actuate on the BIRT Open Source project similar to the number of developers Apache has applied to the Apache project Alongside these Open Source developers are Actuate developers working on the commercial product of BIRT

Open Source BI

Cost-Effectively Deploying

When deploying Open Source Business Intelligence technologies multi-layered functionality that can be added as needed serves to create a cost-effective way to build a solution specific to an organizationrsquos needs Each function acts as a building block as a company creates exactly the capabilities necessary for the job on hand without wasting money and resources on items that arenrsquot needed

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Another benefit of BIRT is the BIRT Exchange community Actuatersquos user forum which is far more robust and extensive with documentation and help information than has been found traditionally Nearly every forum post has an answer to it in some form which is not likely to be experienced with any other Open Source project or forum-based community Meanwhile the community itself is vast and growing rapidly Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate ndash where a developer may have downloaded 20 copies over its history ndash adds up to 350000 different users of BIRT technology That number is growing at roughly double the rate of the other two most popular Open Source projects

Add Value Through Features

Actuate BIRT technology has a range of features that will add value to a companyrsquos BI project

1 In addition to being a graphical report design tool BIRT takes into account the long-standing tradition of Actuate to support reuse libraries and reusability across the entire environment It is able to not only reuse BIRT objects and BIRT components ndash such as charts and tables ndash but also to incorporate and use JavaScript objects and Java libraries in the reports themselves This creates a rich experience for driving and building web-oriented reports

2 BIRT offers navigability While a user is in a graphical design tool they should be able to take advantage of some of the core capabilities that the technology offers such as a visual hyperlink builder that keeps information in context as well as the ability to create cross tabs dashboards and charting mechanisms that are active and navigable Inserting type of content ndash so that it is both consumable and scoped in context for the user ndash is important to the success of deployment Hyperlinking in context is one of the key elements to supporting Open Source deployments

3 The Eclipse BIRT environment supports a variety of graphical types or charting types including not only grids and tables but both static and dynamic images as well that can be linked back to databases or can support conditional formatting and a variety of conditions baked into the report BIRT is able to handle a large variety of chart types and styles allowing organizations to convey exactly what theyrsquore trying to deliver to their users Supporting rich charting is one of BIRTrsquos key core capabilities

4 The Open Source Eclipse engine can be embedded into or deployed from an application quickly within a JVM Users can add content generation or report generation functionality easily and quickly to their application by inserting it into their run time The BIRT engine itself is a key component in the Eclipse BIRT project It has a variety of extension points built into it which means itrsquos able to not only generate supported output types ndash such as HTML or Adobe PDF ndash but can also create custom emissions from a BIRT report such as an emitter for mobile content or an emitter for a particular report format of the userrsquos own perhaps to feed another application With a robust API structure within the Eclipse BIRT engine these are all possible

Build On Interactivity for a Richer Experience

Building onto that BIRT experience organizations can add more interactive and visual elements to create more appeal within their BI projects

Animated Flash Visuals Animated Flash visuals built into BIRT reports lend to a richer more enjoyable experience for end users They can take advantage of the navigation enhanced with the visual and animated appeal that Adobe Flash offers

The Actuate BIRT development tools include 266 Flash widgets This is one feature that differentiates BIRT Open Source with the BIRT commercial product Those who purchase the development tools from Actuate will immediately receive these Flash objects that can be deployed not only within Actuate BIRT reports but within Eclipse BIRT reports as well they are portable across both environments

Interactive Viewing Often users have a difficult time articulating their requirements to report authors That problem is alleviated when authors can deliver them an interactive viewing experience allowing the report to become changeable and adjustable by the user The user can select a particular column and can apply a filter to that column they can toggle back and forth between viewing perspectives rotate charts change the grouping of a report or add more visualization to it with something such as conditional formatting They could even navigate within the report using a joystick or deploy that report or portlet content anywhere they want And ultimately they could drag and drop and change ndash or add columns to the report directly ndash by manipulating the report as needed

This interactivity gives the end user the ability to enjoy more freedom with regards to how they use the report It also

addresses one of the biggest conundrums with regards to report delivery giving users a report provides them with content that makes them smarter and as they get smarter they take that information and they work it into their knowledge which in turn changes the questions that they ask of the report This means that what they need from a report changes over time Allowing users to modify reports themselves is a key goal in supporting BI processes because as users become smarter about what theyrsquore doing with their content they can help assist in defining what the next iterations of their web content might be

Choose the RIght Server to Store and Schedule Content

Actuate has spent the last 15 years developing the Actuate iServer It comes in two styles ndash iServer Enterprise and iServer Express ndash and offers a robust environment for creating managing and delivering BIRT report content to users on schedule on demand or on an ad-hoc basis directly

The iServer Express is a single-server deployment that is appropriate in scenarios where there is less active usage it supports a sequential batch generation capability and roughly 10 user connections per second as the users connect to the server It offers that scheduling and deployment capability at a very cost-effective price point while allowing organizations to secure their report content using the iServer repository to take advantage of some of the presentation layer capabilities that Actuate offers through its information console to present and manage that content on behalf of the users and ultimately to create a full reporting experience for users directly

Alternatively for those deploying a very large system ndash perhaps one that operates outside of the firewall in a traditional web information application ndash there is the iServer Enterprise The iServer Enterprise is massively scaleable but also very predictably scaleable as companies double the resources that they can apply to their environment they double the throughput and user numbers that theyrsquore able to support with the iServer It is also highly configurable in regards to how content is deployed and supports multi-tenet environments or multiple application environments In addition it can be componentized so that a presentation layer can be separated from a content creation layer or a business logic layer from a data management layer ndash including the meta-data layer itself ndash to help abstract and manage the queries driven

Determine Where Content Can Be Distributed

Actuate JavaScript API is a mechanism that allows the user to take a JavaScript library embed it into any HTML page and then from that JavaScript library securely access Actuate content from the iServer This particular capability allows the user to put either a report part ndash a reportlet ndash or an entire report directly into new locations This could be used as a user attraction vehicle it could be used as a dashboarding vehicle or it could be an integration point for systems that are written in NET rather than in the j2e environments that BIRT typically supports

Deliver Mash-Up Applications

Delivering mash-up applications using all of the functionalities listed above is simple in the BIRT technology and lets users themselves participate in the definition saving creation and management of their own dashboard displays and it allows them to watch exactly the KPIs that they care about

This is done through Actuatersquos Mashboard Customization to the Information Console which allows users to take any BIRT report content and to deploy it directly into a mash-up style environment where they can define exactly what pieces of content go into their application and what doesnrsquot These dashboards can also be roll-based so that particular pieces of content can be deployed to particular types of users directly then if they want to continue to customize that capability theyrsquore able to do so

Conclusion

Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques such as Flash and Ajax in a web-based design metaphor It is designed to evolve effectively over time and is meant to give organizations a choice for every type of user The first decision point of any organization is to recognize whether or not BIRT is the right reporting technology for the information application in question Once thatrsquos decided companies must choose the technologies they want to offer each type of user and then consider how they want to deploy those technologies directly

A wide variety of capabilities can be build into the BIRT environment ranging from Open Source to commercial Actuate products It is a flexible environment and is robust for delivering to users any type of information-driven web content

Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate adds up to 350000 different users of BIRT technology ldquo

rdquo Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques ldquo

rdquo

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The Challenge

Guiding a ship requires visibility into navigation operational performance and up-to-date information to make decisions This type of customer challenge drove ABS Nautical Systems

to incorporate Actuatersquos BIRT technology into its NS5 fleet management software

A leading software provider to the maritime industry ABS and its NS5 modular ERP system help customers manage principal operating expenses associated with vessels and offshore rigs ABS provided basic scheduled reporting and offered ad hoc reports in response to specific customer requests but customers demanded better functionality including the ability to easily extract and create both standard and custom reports

Producing reports to customersrsquo satisfaction took time as reporting was not central to ABS Nautical Systemsrsquo expertise Further it took valuable programmer time away from developing new features and functions for its core product This created the need for ABS to leverage a tool to provide highly-developed rich information application functionality increasing the power of its fleet management software while enabling its customers to access more flexible reporting tools

The Solution

With its own expertise in Java development and their existing reporting ABS searched for an Open Source reporting platformtool that they could leverage and seamlessly embed in their software ndash one that would deliver for ABS and their customers both immediately and for future expansion After considering Jaspersoft Actuate and Pentaho ABS selected Actuate and BIRT for their on-demand reporting solution

ldquoActuate has a clear roadmap and direction scalable platform financial stability and Open Source development platform The Actuate offering was an excellent fit because the technology

ABS Nautical Systems (NS) is one of the leading providers of fleet management software packages available to the

marine and offshore industries It offers a fully integrated modular approach to managing the principal operational expenses associated with a vessel or offshore rig ranging from maintenance and repair to regulatory requirements purchasing and inventory and crew management and payroll

SAFE AT SEAABS Nautical Systems A Case Study

ldquoBoth the technology roadmap and scaling are key It was an excellent fit for us actually ndash you had the right technology yoursquore Open Source based BIRT technology was key and you were the most helpful in helping us do the prototyperdquo

- Sandipan Bhattacharya ABS Nautical Systems

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31

Vol 6 Issue 2 2009

used Open Source BIRT allowing us great flexibility in developing NS5 Actuate was most supportive in helping ABS NS do the prototype ndash both their Professional Services as well as the account teamrdquo states Sandipan Bhattacharya CTO for ABS NS

The new BIRT-based on-demand reporting tool within ABS NS5 is a web-based application that enables clients to quickly and easily generate custom reports from any NS5 module It handles reporting for the central elements of operational management ndash from regulatory requirements to payroll to planned maintenance programs But it takes NS5 beyond operational duties to consolidate data from across software modules to better monitor key performance indicators (KPIs) such as time to repair spare parts turnover and purchasing cycle times

The interactive information views that BIRT provides help fleet managers to achieve maximum efficiency empowering NS5 software users to get what they want in terms of the reports they need in the way they want them as each department or company may want to look at data in a different way Lastly that same data is more accurate because it comes as near real-time information at the time they need and can be benchmarked against how well they are performing to provide trends for evaluation

BenefitsResults

bull Speed time to market with new features by focusing on core competence in its software platform This allows ABS to focus development on its core product and improve customer satisfaction by rolling out and providing complete reporting modules This also helps decrease development expenses and support costs

bull Expand available market with completely new product lines enabling ABS to increase its client base to companies that didnrsquot know about them or had previously disregarded their offering The additional modules make the product more attractive to existing clients creating additional revenue sources for ABS

ldquoThe BIRT Open Source platform allows for a great deal of flexibility in the development stages Additionally the ease of integration into our OEM package was a great benefit Lastly the Actuate and BIRT offering has proved to be well suited to ABS Nautical Systemsrsquo needs and Actuatersquos roadmap shows what we can do in the futurerdquo states Bhattacharya

Self-serve customization drives flexibility and ease of creating reports BIRT empowers users to produce reports customized to their individual and departmental needs and preferences And as government reporting requirements change they can

Solution OverviewCompany Profile Integrated fleet management software for marine industries

Industry Software

Location Houston with offices worldwide

Challenges

bull Customer need for better more timely reports

bull Enable customers to self-serve for ad hoc needs and regulatory requirements

bull Focus on core software expertise and feature requests

Solution Integrate Actuatersquos Open Source-based BIRT reporting with ABSrsquo NS5 fleet management software

Business Benefits

bull Faster time to market broadened portfolio

bull Ease of integration development flexibility

bull Increased visibility into operations aids customer competitiveness efficiency

bull Users empowered to customize reports

Does your companyrsquos mission and vision statement place the customer at the center of your universe

Does it promise to maximize customer value and deliver the best customer experience possible If it does your mission and vision statement is surprisingly similar to nearly every other organization And much like them chances are your organization is struggling to make this vision a reality to actually reinvent itself as truly customer-centric

ldquoCustomer-centricrdquo has become the new buzz phrase thrown about at most executive planning sessions and has replaced ldquoinnovativerdquo as the new mandatory strategic language The truth is it takes a lot more to become customer-centric than changing the company vision ndash it requires a departure from years of tradition a clear look at who and what your organization is and a deeper understanding of what motivates your customers to buy from you or from your competitor Fortunately the cost to make this change is surprisingly low while the benefits and the returns can be shockingly high

Finding Your Customer

Customer-centric implies that the customer is central to the organization but this is too esoteric to have any real meaning An organization turns materials into a product or service which is then sold Everything the organization does must lead to this

event (with no sale after all therersquos no customer) This logic works for most people and most organizations and it logically follows that the focus should be upon the creation of the best possible product or service because this is what causes a prospect to become an actual customer

This logic fits nicely with traditional thinking It was popularized by Michael Porterrsquos value chain approach in the mid-80s The value chain is a string of critical processes that begins with raw materials or inputs and ends with a product or service delivered to a happy customer Thinking this way makes sense because it is easy to place the customer at the end of the process But this mind-set doesnrsquot just affect how executives structure the organization it weaves its way into every aspect of how the organization manages itself and how managers make decisions

For example the finance department performs the close process each month so that it can deliver financial information to managers with actual bottom-line responsibility These managers from executives to cost center managers are financersquos customers just as shareholders are when they deliver quarterly reports Once these reports are delivered finance goes back to the business of accounting and managing revenue and expense until the next month Engineers work to design new products that will keep them one step ahead of their competition Manufacturing produces goods to meet customer

respond more quickly adapting them by themselves instead of depending on ABS to supply reports

ldquoActuate empowers users to get exactly the reports they need the way they want them Empowerment is key as well as flexibility as each department or company may want to look at data in a different wayrdquo states Bhattacharya

Rich information drives efficiency through increased visibility and better insight into operations improving customer competitiveness With highly accurate real-time information on how well they are performing management can control both overall and specific costs of operating and maintaining their shipping fleets ldquoThey donrsquot have to wait hellip they can see all contributing factors day to day It helps improve efficiency at every level For the first time a shiprsquos captain can have insight into the operational performance of his ship while still at seardquo says Bhattacharya

Creating the Customer-Centric

OrganizationFinding Your Customer-Critical Path

By David F GiannettoCEO

The Telos Group

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33

Vol 6 Issue 2 2009

orders or demand projections The sales department courts potential buyers so that they become actual customers Once they do so sales then returns to identify new targets and tries to transition them Manufacturing works to refill shelves Engineering continues developing products

Employees throughout the organization are focused upon delivering the product or service for which they are responsible The product attributes become the value proposition that will appeal to their customer regardless of whether or not this is an internal or external customer Employees are trained to think in terms of product development delivery and value The organization becomes even if it doesnrsquot know it product centric Believing that a mainstream management theory such as the value chain approach could not be wrong or outdated management is comfortable with this view of their world When they try to become customer-centric they do not know how

Making the Change

Consider for example the electricity powering the light by which you are reading this article It is a fairly simple product that was mainstreamed decades ago and except for new types of power generation it has remained essentially unchanged The traditional value chain for this industry is fairly straightforward Power is generated by a complex and often dangerous power plant and it is delivered to the customer via a complicated and often dangerous network The customer then consumes this power and must pay for it creating the

need for back-office operations such as accounting finance and customer service

Given the complexity of power generation and delivery operations the organization is staffed by a high percentage of engineers many with doctorate degrees and years of specialized training The generation and delivery assets themselves are maintained by highly-trained highly-specialized workers A large percentage of the management team also comes from this background and rose through the ranks of organizations identically structured Combined these employees represent over 75 percent of the organization

Collectively these employees create a culture that is consistent in almost every power utility in the world Their cultures respect academic achievement technical expertise and years of experience in the industry They typically believe in rigid structures inflexible procedures and consistency in design and execution They are truly product focused

Given the potential hazards it is easy to see why they behave the way they do But what happens when this type of organization has to compete in a more open market when transparency is increased or when the customer such as a municipality has a stronger voice or is under the growing influence of being green What happens when the power company must become truly customer-centric

It is nearly impossible for them to succeed Seventy-five percent of the organization has little to do with or has little understanding of the customer

Departing from Tradition

While this product focus is exaggerated within a power utility largely because of their technical nature these factors affect nearly every organization Employees who have great influence within the organization will not yield it to those who have less but who understand the customer better Funding is unlikely to shift from traditionally respected areas to those areas that most affect the customer

For a power utility this means that engineers who have often dedicated their entire lives to the study of their work must be considered equal to project managers and customer service agents most of who do not hold any degrees Money resources and staffing must focus on project management and call center technology not just on million- or billion-dollar assets There must be recognition that these areas equally affect the customer This new perspective must be executed by executives who have spent their entire careers adhering to the traditional values of the product-centric culture But this shift is what customer-centric really means truly understanding and meeting your customersrsquo needs It starts with the customer more specifically it starts with a prospect

Customer-Critical Path

This means that the traditional value chain must be rethought and renamed more appropriately to the customer-critical path A prospect travels this path on their journey to become a customer a customer travels this path toward the goal of becoming a happy customer This is the true value chain of the organization ndash a string of processes that become critical because they directly affect your customer regardless of the product service organizational chart academic degree or bias Find the customer-critical path and you can guide your customers through your organization in the way that is most meaningful to both them and you

But not all customer needs are the same even within an industry that has only one real product like a power utility The customer-critical path may start in several places meeting the needs of

several different types of customers ndash household customers that simply need power turned on or major projects that require significant project management and pre-planning Eventually these starting paths merge It will occur at the point at which all customers are happy From there they may take a different path

again some will terminate service or have new needs There is not one value chain there are many paths a customer might travel through your organization

This new approach offers significant value for organizations that adopt it It allows them to better understand their customers so that they can be more effectively segmented and targeted by products or services This drives the bottom line in several ways A stronger value proposition increases appeal thus driving revenue Better service and customer interaction improve the customer experience and increase customer loyalty driving customer lifetime value

The customer-critical path also becomes a vital decision-making tool for management It provides a clear and unbiased perspective on where resources should and should not be spent It defines the relative worth of projects assets and expenditures painting a clear picture of what the results will be if the customer-critical path is not

properly maintained

And if your mission and vision statement says you are customer-centric it makes your strategic plan more than simple semantics It makes it actionable setting your organization on a path towards true differentiation and market leadership Properly crafted the customer-critical path becomes a pleasant stroll through the park for your customers and it can also become the most profitable path for your organization

David F Giannetto is CEO of The Telos Group co-author of The Performance Power Grid The Proven Method to Create and Sustain Superior

Organizational Performance (J Wiley amp Sons 2006) and a professor in the Executive MBA program of Rutgers University

Mr Giannetto can be reached by email at dgiannettotelosconsultingcom

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35

Vol 6 Issue 2 2009

I Introduction and Background

Who the NMDP is

The National Marrow Donor Programreg (NMDP) and Be The Match FoundationSM are non-profit organizations dedicated to creating an opportunity for all patients to receive the bone marrow or umbilical cord blood transplant they need when they need it Every year thousands of people of

all ages are diagnosed with leukemia and other life-threatening diseases Many of them will die unless they get a bone marrow or cord blood transplant from a matching donor Seventy percent of people do not have a matching donor in their family and depend on the Be The Match RegistrySM to find a match to save their life

The Beginning

When their 10-year-old daughter Laura was diagnosed with leukemia Robert Graves DVM and his wife Sherry were ready to do anything they could to save her They agreed to try a bone marrow transplant from an unrelated donor ndash the first ever for a leukemia patient Laura received her transplant in 1979 at the Fred Hutchinson Cancer Research Center The treatment gave her an extra year and a half of life

The National Bone Marrow

Donor Program

The Balanced ScorecardVision into

Action JourneyBy Howard Rohm

President amp CEO Balanced Scorecard Institute under the guidance of The National Marrow Donation

Programrsquos Michael Boo Chief Strategy Officerand John Rudrud Senior Analyst

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The experience inspired Dr Graves to create a national registry of volunteers willing to donate marrow His early efforts brought together other patient families and transplant doctors spurring a federal mandate that led to the creation of the National Marrow Donor Program NMDP began connecting patients with unrelated donors in 1987 with a registry of just 10000 volunteers

What the NMDP Does

The Be The Match Registry has grown to more than seven million donors and over 150000 cord blood units the largest and most racially and ethnically diverse registry of its kind in the world Medical advances are making marrow and umbilical cord blood transplants available to more patients all the time Since 1987 NMDP has arranged for more than 35000 transplants to give patients a second chance at life Today NMDP facilitates more than 4300 transplants a year

Planning for the Future

Many more patients still need help In order to meet the needs of all patients NMDP will need to facilitate 10000 transplants per year by 2015 That is more than double the number of transplants the organization facilitates today NMDP is working to meet this need but canrsquot do it alone Efforts are sustained by

bull A global network of more than 490 leading hospitals blood centers cord blood banks and laboratories

bull Agreements with donor centers cooperative donor registries and cord blood banks worldwide through which the program provides patients access to more than 12 million donors and 300000 cord blood units

bull Continued support from the US government which has entrusted the NMDP to operate the CW Bill Young Cell Transplantation Program the federal program supporting bone marrow and cord blood donation and transplantation

bull Partnerships with corporations service organizations student groups faith-based communities and other organizations

A new and different way of thinking about the NMDPrsquos long-term strategy was required in order to make sure that NMDP would be capable of delivering 10000 transplants per year in 2015 ldquoBusiness as usualrdquo would not get the organization where it needed to be NMDP needed to identify and

aggressively improve in strategic areas critical to the delivery of 10000 transplants

II The Balanced Scorecard Approach

Background

The strategic planning system that had been used at NMDP up to 2007 was a fairly well-developed planning process that tracked initiative performance under seven primary areas of strategic focus While this approach provided a measure of strategic planning for the organization it was too focused on activities and projects rather than on impacts

Early in 2007 NMDP leaders Gordon Bryan Chief Financial Officer and Michael Boo Chief Strategy Officer began developing strategic metrics designed to identify measure and communicate progress in strategic plan objective areas

Selection

As the senior management team evaluated options to integrate broader strategic metrics with the existing strategic business plan the Balanced Scorecard approach emerged as a leading candidate during the initial assessment of planning models because it

bullEncourages development of strategic themes and provides the ability to focus on areas where long-term continuous improvement is needed

bullPermits identification of cause-and-effect relationships between Strategic Objectives within each Theme

bull Facilitates communication of Strategic Objectives that can be portrayed on a strategy map that is easily understood by all employees and stakeholders and shows how the perspectives work together to achieve the mission

bull Assures that the organization focuses on Strategic Objectives and Measures from a CustomerStakeholder perspective and a PeopleKnowledgeTechnology perspective (Historically the organizationrsquos focus was skewed toward the Process and Financial perspectives)

bull Enables leadership to track Strategic Objective performance over the long term rather than tracking the status of supporting projects and initiatives

bull Creates a framework for prioritization of projects initiatives and funding opportunities based on contribution to and support of the Strategic Objectives

bull Allows organizational Strategic Objectives to be cascaded into Department Objectives thereby giving each employee

a more specific understanding of how his or her work impacts and contributes to the Strategic Objectives

bull Drives long-term continuous improvement as Strategic Measures improve over time

bull Facilitates a ldquolearning organizationrdquo where corrective actions are implemented in cases where Strategic or Department Objective Measures are not being met

The NMDP planning team looked at a number of planning models ndash including Balanced Scorecard Six Sigma Lean and TQM ndash and concluded that the Balanced Scorecard approach provided the most versatile and relevant framework for future growth and organizational development

III Scorecard Development ndash NMDP Officer Input

Early to mid 2007 NMDP began the Balanced Scorecard development effort with the help of consultants from the Balanced Scorecard Institute

A comprehensive review of the organizationrsquos strengths weaknesses opportunities and threats organizational pains organization enablers vision and mission was conducted over several days with NMDP officers and senior management These sessions produced a new Mission and Vision Statement and four Strategic Themes (rather than the original seven)

The former mission statement Extend and improve life through innovative cellular transplant therapies was changed to We save lives through cellular transplantation ndash science service and support

ldquoThis new mission statement captures and communicates more directly why we exist and it clearly articulates the three ways that we are able to save livesrdquo explained NMDP CEO Dr Jeffrey Chell

The Overarching Strategic Result in place of a vision statement was developed and shared with employees throughout the organization Meeting the need for 10000 transplants per year by 2015 The senior management team developed a longer more descriptive version of this statement but felt that the shorter version had more impact

ldquoWersquove found that the Overarching Strategic Result has been a great tool to get people thinking about how we will manage

to do more than double our current transplant volumes in a relatively short time ndash just five years from nowrdquo explained initiative sponsor Michael Boo ldquoThis has driven a lot of creative thinking around how to dramatically improve the efficiencies and cost effectiveness of many internal systems and delivery processesrdquo

The four Strategic themes that the NMDP officer group developed and agreed upon are

bull Global Access and Acceptance ndash Getting to Yes Overcome non-cell source barriers to transplant (eg no insurance no transportation no post-transplant support)

bull Deliver Excellent Stakeholder Experience Overcome Cell Source Barriers (making sure a cell source donation is available when itrsquos needed ndash adult or cord)

bull Research Pursue research to improve cell transplantation as a therapy

bull Culture of Excellence Keep up-to-date with talent structure and resources needed to continually improve transplant services

IV Scorecard Development ndash Senior Management

Throughout the spring and summer of 2007 four Theme Teams comprised of senior management met to develop

Theme Team strategy maps that included Theme Objectives by Perspective and proposed Measures for each Theme Objective These served as detailed roadmaps with specific objective areas identified ndash where NMDP needed to focus in order to improve them

The four Theme Team maps were subsequently

combined into an NMDP Strategy Map that included all relevant components from each theme This NMDP Strategy Map is comprised of 13 Strategic Objectives 46 Strategic Measures and seven Strategic Initiatives

Narratives were captured regarding the intent and ultimate end state for each Strategic Objective and detailed descriptions were created for measurement information including rational frequency owner and unit of measure

At this stage in the process the team named the Balanced Scorecard tool ldquoVision into Actionrdquo or ViA ndash NMDPrsquos strategic Performance Management tool On June 1 2007 the ViA Themes and NMDP Strategy Map details were presented to the board of directors by senior management and approved along with a plan to proceed to the next phase of department cascading

A ViA Communications Team was formed to communicate ViA progress to employees on the development of the new Mission Statement Vision Statement and the 13 Strategic Objectives This was done through a combination of pulse checks newsletters

38

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Vol 6 Issue 2 2009

intranet messaging e-mails from the CEO leadership training all-staff meetings and promotional contests This was an extremely integral step in the ViA roll-out that provided transparency and generated excitement around the benefits of ViA

V ViA Department Cascading

All departments at the NMDP were scheduled for sessions to develop their department Objectives Measures and Initiatives These were facilitated by internal subject matter experts and included an initial two-day exercise to help the department identify where and how each department contributed to the NMDP Strategic Objectives Worksheets and other preparation material were provided to each participant and collected prior to the cascade session The pre-work information was used to expedite the affinity exercises at each session

These were followed up with sessions to finalize detailed measures with individual measure owners Department teams were comprised of five to 10 key members of each department

The department cascading efforts provided a number of primary benefits to the organization including

bull The articulation in easy-to-understand terms of how each department contributes to the overall success of the Strategic Objectives and ultimately the NMDP Mission

bull A tool to identify gaps or overlaps between departments that can also be a tool for departments to communicate with each other in terms of supporting initiatives

bull A tool for each department to prioritize initiatives and activities Also it provided a mechanism to support requests for funding new opportunities

bull A clear framework for corrective action where measures are not being successfully met

bull A common format and mechanism for reporting department performance to officers and senior management

bull A common format and mechanism for reporting and reviewing department performance with staff

bull Help with the development of individual job performance appraisal content ndash which should be designed to support Department Objectives

Department Cascading was complete in early 2009 There are over 200 separate department measures that are tracked each quarter

VI NMDP ViA Today

NMDP has established a department Champions Council Members of the Council are becoming experts at using the automated ViA software Today this is being used at department staff meetings to facilitate discussion around corrective action for underperforming or unacceptable Department Measures Departments use the department Strategy Maps to guide staff meeting discussions on performance measures and corrective action plans

ldquoAll business cases or requests for funding must be submitted with clear tangible descriptions of how the effort will impact ViA Strategic Objectivesrdquo explained Boo ldquoOnce all business cases have been submitted to the officer group for final approval they are prioritized in order of their impact on ViA Strategic Objectivesrdquo

All strategic and department measures are required to be reported into the ViA system each quarter Each is color coded based on an officer-approved target matrix Each measure owner is required to provide comments regarding the measure performance for the quarter and discuss how he or she expects the measure to end the fiscal year This information is shared with senior management for review and follow-up with measure owners ifwhen necessary

Senior management uses the color-coded NMDP Strategic Map as a basis for discussing quarterly performance and identifying

Strategic Objective areas that may need attention corrective action andor more resources NMDP tries to focus not only on corrective action items but also highlight success stories where outstanding performance has been reported

All employees will soon have access to the web-based ViA application to provide as much transparency and visibility as possible in order to become a truly strategy-focused organization

ldquoVision into Action has been successful within the organization to a great extent because of the consistent support and guidance provided by NMDP leadership including our CEO Dr Jeffrey Chell my fellow Officers and the Board of Directorsrdquo said Boo

Howard Rohm President and CEO of the Balanced Scorecard Institute is a Performance Management trainer consultant and technologist with over 40 years experience Mr Rohm has helped dozens of organizations worldwide build Balanced Scorecard and other performance planning and management systems

48

Pe

rform

Mag

azine

Info

rmatio

n in

Actio

n

A community for BIRT users and developers sponsored by Actuate

A Report Writing Portal lets your end users browse reports modify them and even develop

new ones You can set one up in three steps when you use AJAX-based BIRT technology

Because the end user tools to modify and create reports are AJAX-based therersquos no desktop

software to install Users get the reports they need quicker while the burden on development

resources to create new reports is reduced

BIRT Exchange is a community site that offers the broadest collection of resources for the Eclipse BIRT (Business Intelligence

and Reporting Tools) project and for integrating spreadsheets with Java The site is sponsored by Actuate a co-leader of the BIRT project

Sponsored by

See a Demo

at Booth

602

For More Information

Contact us by phone at 1-800-884-8665

1-913-851-5300 from outside of the United States

wwwbirt-exchangecom wwwactuatecom

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41

Vol 6 Issue 2 2009

JCIrsquos previous approach of one-off negotiating as well as its spirit of continuous improvement and customer focus meant that it had only one-off measures in every location The company for example had 127 variations of the measure lsquomaintenance managementrsquo Many were very similar but since they were not exactly the same they could not be compared effectively Inefficiency at gathering and maintaining data at different locations across the globe made the task difficult as well Data was collected any way possible thrown into a cell or a Power Point slide and handed in at the end of the month It was highly inefficient extremely customized at every location and did not allow any ability to benchmark compare or look at best practices These concerns and requirements drove JCI on its scorecarding journey

The Solution

In initiating its scorecarding solution JCI first had to establish the right measures Business leaders were chosen for all of the scorecard categories and for each of them a business owner was selected for each region these business leaders and owners were responsible for defining the standards and measures Data collection systems in some cases proved difficult there wasnrsquot always centralized information available ndash in some cases data needed to be gathered right down at the account level This meant that the process of data collection and identifying measures was a significant job To get started though JCIrsquos web programmers were able to put up some scorecards quickly to allow the company to start architecting measures this allowed business leaders across the globe to start identifying their measures and to put the processes in place regionally to collect information

Before committing to a technology JCI wanted to know 100 percent of their business requirements and this was the point of their web-based scorecard To assist in this endeavor Actuate ndash prior to selection ndash let the company test drive their product The JCI team went through and looked at every single screen determining where they had to configure the tool and for every single screen they also made what they called a lsquoblueprintrsquo creating an Excel template with fields to correspond with every field on each screen It was incredibly detailed work but they wanted to ensure no mistakes were made and that the business requirements were defined To accomplish this there was an extreme amount of detailed coordination globally with twice-weekly meetings for the worldwide team in charge of the initiative A byproduct of the process was that the team learned to use the Actuate BIRT Performance Scorecard and basically built all of the blueprints for the project design

JCIrsquos audience for the project upon kick off were the 300 external customers that would have access to this information Customers previous to this were getting their information via Excel and PowerPoint In addition to these external customers was the population of approximately 1000 internal users within JCI itself These included account leaders and functional leaders including those from HR Finance Safety etc

Three primary functions of the project were

1 To replace the PowerPoint slides used in global and regional monthly internal operational reviews

2 To very quickly be able to become best in class JCI wanted everyone who had an account to be able to see where they sat compared to their peers This provided individuals ndash when faced with a problem ndash the ability to quickly identify and contact others who had solved the same issue

3 To standardize customer faith in contractually required performance measures This was a key goal of the company which felt that if they were going to benchmark and compare they needed to bring in the best practices learned at one location to their work at other locations

These three primary functions were heavily loaded in JCIrsquos rating system as the company set out to choose the right software for their scorecarding project It was also important that the software be intuitive as there was no time for hundreds of hours of global-wide training The software had to be rapid and easily configurable with limited IT assistance As JCI is a very large organization with a lot of systems in place the team in charge also wanted the software to be easily adjustable to the companyrsquos rapidly changing business they didnrsquot want to have to get into queue for IT every time a change had to be introduced or a new customer added

JCI Chooses ActuateFour vendors were evaluated for JCIrsquos scorecarding project with a global team in place to provide a systematic discussion of the defined business process and requirements The product chosen was the BIRT Performance Scorecard JCI had 30 days of Actuate Professional Services and planned for monthly micro improvements and quarterly macro improvements

Upon purchasing the BIRT Scorecard in January 2007 using the blueprints theyrsquod established already the company wrote their business processes They were able to go live in 90 days helped by the homework they did with the blueprints the web scorecard and the data collection processes It was an incredibly smooth implementation overall

The Results

Whereas JCI originally started out with a model of one-off negotiations with customer measures the scorecarding project has led to approximately 70 percent agreement on JCI standard metrics The company does a customer satisfaction survey both annually and quarterly and aims to demonstrate evidence towards continual improvement

Since implementation of the project the company has also been solving its data integrity issues Previously two regions might have been using the same words but not the same data collection methods ndash this made it impossible to introduce benchmarking and comparison between areas Now those problems are being solved and benchmarking and comparison are possible to the benefit of both JCI as it strives for best-in-class status and its customers

By David F GiannettoCEOThe Telos Group

Johnson Controls Incorporated (JCI) is a $38 billion company with a total of 140000 employees working out of more than 1300 locations in 125 countries worldwide Headquartered in Milwaukee Wisconsin the company provides a range of services including

real-estate portfolio management property management facility management and design and construction services

To initiate its scorecarding project JCI began by creating five categories of measurement Business Performance (this includes all financial measures) Service Delivery Customer Satisfaction Safety and People While the other four categories may be typical to most organizations the Service Delivery category was designed to take JCIrsquos measurements down to the client-site level which includes over 300 locations globally where the company has contracts In some cases there might be one staff member assigned to manage a single building while other times a staff member has a whole portfolio they maintain Measuring performance at all of these locations and levels proved a complex undertaking

Strategic Initiatives

Like all service providers JCI has to demonstrate that they add value Scorecarding allows them to do this both internally

and externally using data-driven results Since JCI has always been very much a data-driven organization anyway with a manufacturing background this was a natural fit for the corporation

JCIrsquos organization-wide motto is to be as good everywhere as they are somewhere Theyrsquove found that in any one account they may excel in several areas but perhaps not in all areas elsewhere though on another account someone else might have the skills needed to fill in those gaps The companyrsquos goal was to share information and communicate it between different locations across the globe allowing the company as a whole to get better faster and to benefit from the skills and strengths of its individual members Scorecarding was introduced as a way to help share this information and to introduce benchmarking within the company

The Requirements

To get started on their scorecarding initiative JCI examined each of their US contracts What they found was that there were no standards between clients and therefore no ability to benchmark Customers though wanted the ability to find out how they stood in relation to other customers This was impossible under the circumstances

Global Operational Excellence and a Performance Scorecard System A Case Study of

Johnson Controls Incorporated

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Vol 6 Issue 2 2009

Out of Touch With Crucial Data

Previously when Helzbergrsquos divisional and regional vice presidents went on the road access to their key performance metrics was restricted Without a laptop and a WiFi or hotel network connection to the internet they were ldquoflying blindrdquo according to Greg Backhus Helzbergrsquos Director of Data Warehouse and Decision Support Systems As a result they did a lot of faxing it was the only way they could get the current data that they needed in order to

About Webalo

Webalo technology transforms enterprise applications and data to make them compatible with mobile

devices This eliminates the need for traditional custom programming reducing the deployment of mobile applications from weeks or months to in most cases less than a day The resulting ldquoanywhere anytime on-demandrdquo availability of enterprise data on handheld devices turns such devices into viable alternatives to desktop laptop and palmtop computer hardware and lets mobile employees work more productively ndash on the spot ndash to solve problems answer questions monitor operations close sales and make informed decisions

The Webalo Mobile Dashboard Service ndash available in both internet-based and enterprise intranet-based implementations ndash lets non-IT business administrators securely specify the content of mobile-accessible information and the companion Webalo Proxy Server configures it in seconds to conform to the native user interface of any BlackBerry Windows Mobile Pocket PC Palm Symbian or Java-enabled smartphone

CLARITY CUT AND CARATSHow Helzberg Diamonds Made Sales Data Clearer Eliminated

Delays and Lightened the Load for its Divisional Executives

A diamond may be forever but a lot has changed in how theyrsquove been marketed and sold during Helzberg Diamondsrsquo nine decades in business A single store has expanded to nearly 300 locations from coast to coast and border to border Sales can also be made online now And information about every sale can be accessed in an instance through the companyrsquos enterprise systems

bull Compare actual sales to their goals and plans

bull Determine transaction counts for total dollar volume and average sales value

bull Break down sales by product category

bull Monitor attachment rates for products and services related to the main product sale

For example onsite at individual stores it was difficult to gauge how an active price-reduction sale was affecting unit and dollar

volumes unless there happened to be a coffee shop next door with a WiFi connection that would let Helzbergrsquos executives access the enterprise system

The Three Cs of Information Access

The three Cs of diamond grading ndash clarity cut and carats (or weight) ndash turned out to be applicable to data access as well But it took a transition to handheld devices and to the Webalo Mobile Dashboard to achieve it

Though laptop computers had gotten lighter and lighter over the years they were still considerably heavier than the Pocket PC-based smartphones that Helzbergrsquos executives used Since they were carrying those handhelds in addition to their laptops the VPs were open to the idea of being able to

bull Access sales metrics on their handhelds

bull Have data available on-demand from any location with a wireless signal

bull Navigate quickly to the figures they needed

bull Get updates to their metrics automatically

bull Review the information offline

It was the only time that carrying less weight ndash or carats ndash added more value Using a simple step-by-step wizard Helzbergrsquos support staff was able to configure their enterprise reports in a matter of hours They then assigned access privileges to each executive to control who could see what information and uploaded the file to the Webalo server That satisfied how data was ldquocutrdquo

For each mobile user regardless of the brand and model of smartphone they used the Webalo Mobile Dashboard conformed the information to the devicesrsquo user interface The application worked and looked exactly like any other application developed specifically for their mobile devices the on-screen text was easy to read and navigation used the same menu structure That meant there was no learning curve to delay user acceptance and productivity Clarity was essential and the Mobile Dashboard delivered it right down to the ability to bookmark commonly-referred-to displays for instant reference enhancing on-the-spot productivity even more

Speed and Simplicity

Productivity was also improved on the IT side Without the need for custom programming to conform the information to each smartphone brand and model deployment was reduced from months to hours

Since adopting the Webalo Mobile Dashboard Backhus says ldquoThe Divisional VPs find it invaluable They get more done because they donrsquot have the delays they used to haverdquo Decisions that used to have to wait for current data are now made right away relying on the right data presented in the right format

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Sustainable practice has graduated from being market hype

to becoming a strategic initiative important for driving a successful enterprise It not only reduces a companyrsquos impact on the environment but can help organizations achieve a competitive advantage to build their brand impact top and bottom line and improve customer acquisition satisfaction and retention

Creating a road map towards sustainable management can require an entire shift in corporate thinking one that involves searching for buy-in at all levels establishing useful metrics and introducing practices that get beyond the green hype The end result though is not just a greener organization but also one with a more prosperous future

Why Sustainability

In August 2008 a survey undertaken by CIO Insight examined green practices in business focusing on the reasons why CIOs introduce sustainability efforts into their organizations The number one reason why organizations went green the study found was that the people within those companies sincerely had a concern for the environment A total of 74 percent of respondents answered that way 32 percent of which listed it as their most influential driver

Other influential drivers named in the survey included

Financial Drivers Companies found sustainability to be a way of cutting costs If they could cut energy costs not only would that help the environment but it would also help create cost savings The second most popular answer in the CIO Insight study financial impacts are key to implementing sustainability in most organizations Examples of financial impacts possible from sustainability were presented at CFO

2 The CFO Green

Conference which took place in May 2008

bull Dupont reduced its CO2 emissions by 70 percent saving the company $3 billion

bull FedEx redesigned its delivery trucks making them more aerodynamic This reduced the amount of particulate pollutants nitrogen and carbon the trucks put into the atmosphere and it also reduced the companyrsquos fuel costs exceptionally

Customer Image In the CIO Insight survey the third motive listed by CIOs for introducing sustainability ndash at 64 percent ndash was company image Consumers are becoming more and more aware of whether companies or organizations are living up to sustainability ideals They will notice if a company image or brand value reflects this concern for the environment Meaningful sustainability efforts can help gain customer approval as in the following case

bull Wal-Mart and Procter amp Gamble together agreed to sell liquid laundry detergent only in concentrated form This saved shelf space for Wal-Mart reduced water use by 400 million gallons for Procter amp Gamble and eliminated 45 million pounds of plastic waste

Regulatory Requirements The surveyrsquos fourth most popular reply ndash at only 25 percent ndash were current or potential regulations including the cap and trade systems being implemented which will require companies to buy carbon and sell carbon credits

Shareholder Pressure Finally at fifth in the CIO Insight survey ndash with 14 percent of responses ndash was shareholder or public pressure pressure building from shareholders to put forth sustainability efforts Pressure at this level is often mixed though as shareholders are also likely to express a desire that they donrsquot want shares to decline in value The general message may be that it is fine to introduce sustainability measures only as long as there is no risk that they will hurt the company

A Road Map Towards Sustainability

Step 1 Identify What Drives Your Organization

The first step in the road map towards sustainability is identifying key drivers Some drivers vary from one organization to another while others seem to drive any organization regardless of the industry Drivers incude

Internal drivers

bull Cost cuttings and savings

bull Employees including both the satisfaction of current employees as well as the recruitment and retention of future employees

bull Investment

External Drivers

bull Stakeholders including both those within the company ndash the employees discussed above ndash as well as stakeholders outside of the company

bull Brand awareness because consumers are becoming increasingly aware of the choices that are available to them and are making choices based on a companyrsquos green initiatives

Future drivers

bull Tax incentives

bull The recruitment and retention of future customers

Step 2 Select Your Metrics

In general terms sustainability metrics will fall into one of four major categories those that affect the climate those that affect the oceans those that affect human health and those that affect common issues like the land the water the wildlife etc

Within those large categories are smaller areas of interest that companies must examine to introduce organization-wide sustainability management carbon monoxide use energy consumption water consumption and fuel consumption are prime examples

Carbon Monoxide Use Many of the questions companies are asking themselves in regards to carbon monoxide use include

A Road Map of Key

Sustainability Metrics

That Impact Bottom

Line

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Vol 6 Issue 2 2009

bull How much carbon monoxide do we produce

bull Which processes in our overall manufacturing or delivery use produce the most emissions

bull Can we determine the indirect emissions For example leave a computer plugged in and itrsquos still on the grid creating an indirect carbon dioxide emitter How can we measure that

bull Whatrsquos our cost Do we have metrics that tell us what our CO2 emissions cost us

bull Can we predict into the future If we continue on this path without doing anything where will we be next month Next quarter Next year

Some examples of metrics related to carbon monoxide use include carbon dioxide emissions per employee (similar to revenue per employee) carbon footprint metrics and transportation distances

Energy Consumption Areas of interest related to corporate energy consumption may include the following

bull How much do we consume From what sources

bull Are we on the grid Are we using solar power or wind power or another alternative power

bull How much is used by our data center How do we make the data center greener

bull Where can we reduce consumption

Companies today are reducing energy consumption in a variety of ways by introducing energy audits and looking at energy-saving appliances and also through energy incentive programs for employees within which companies can incentivize and introduce bonus plans

Water Consumption An examination of a companyrsquos water consumption may include some of the following queries

bull How much water do we currently use and where

bull Where in our processes do we use the most water

bull Can we predict how much wersquore going to use in the future

Some of the examples of metrics that companies introduce in terms of water consumption include improved water quality how much impact low-flow or low-volume toilets have on water consumption and how much water is or can be recycled

Fuel Consumption Questions to consider in relation to fuel consumption include

bull How much fuel do we use

bull Where are the inefficiencies

bull Whatrsquos being predicted for fuel usage in the future

bull Can we analyze our logistics so that we can determine how to reduce our fuel consumption For example where are our trucks traveling How are they traveling What kinds of loads are they carrying

Step 3 Recognize Challenges

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly As such easier ways to enhance communication and to increase visibility need to be introduced both inside and outside of an organization

There are also constantly evolving requirements measures and standards of success With everything so new companies are challenged to find ways to compare their sustainability efforts with other organizations The biggest challenge in implementing these processes or attracting metrics may be that they require an entire shift in thinking Additional challenges that exist in the implementation of a sustainability model include

1 Financial concerns Companies must truly see potential for returns on investment or these initiatives can become non-starters or stall

2 Lack of regulatory motivation While not as common as it once was certain organizations arenrsquot motivated to introduce sustainability until government regulations are in place

3 Lack of a formal strategy for sustainability Without a formal strategy it is difficult for companies to determine where they need to go

4 Determining appropriate metrics Companies must choose metrics that are useful demonstrate impact and say something about their own corporate environment

5 Calculating metrics Standard algorithms and calculations exist to calculate metrics but companies must find the appropriate ones and use them

6 Finding quality data to plug into those calculations As in any Business Intelligence project if the quality of the data is questionable then so are the sustainability metrics themselves

7 Determining the scope of the sustainability project The scope is critical Narrow it down to something achievable feasible and useful

Step 4 Learn from Best Practices

What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde

bull Assign an executive champion Without an executive champion to drive the project initiatives are more likely to lack a holistic view and a clear vision for an implementation strategy they may take longer to implement and theyrsquore less likely to yield the required results To provide motivation consider linking the championrsquos salary directly to sustainability savings or to the increased revenues that result from sustainability efforts

bull Implement internal training and education Educate employees on what to expect and what is expected from them

bull Improve communication Communicate both to employees and to stakeholders outside of the organization

bull Start to think about alternative energy management and control strategies

bull Engage the use of technology and services For companies not sure where to begin a sustainability consultant can assist with program selection as can vendors such as Actuate which has a sustainability management solution in place

Step 5 Get Started

Understand that sustainability development is a business opportunity Donrsquot look at it solely as environmental although that is also important Itrsquos an opportunity for companies to introduce more cost-effective processes and procedures and to become more cost effective in their vehicle fleet manufacturing delivery etc

bull Create globally consistent metrics and goals Large agencies have to make sure that the entire group is on board and that they have consistent metrics and consistent goals across the enterprise

bull Find the value and drive the action What is the value of monitoring these sustainability areas and whatrsquos the course of action if you see that theyrsquore going off kilter or are not tracking as expected

bull Start small Initiatives such as these can become incredibly complex very quickly Start small and build in the complexity with each ensuing project

bull Get buy in People need to understand what the metrics are why theyrsquore there and what they mean to each individualrsquos situation (as reflected in individual bonus plans perhaps) Measure using industry-accepted methodologies and industry-accepted protocols continually improve metrics through optimization and forecasting and constantly optimize metrics and forecast into the future

bull As much as possible accurately report to everybody environmental performance Let employees shareholders customers and regulators know If data is questionable fix it get quality processes in place and then run the metrics

bull Determine environmental impact Has waste been reduced Has resource utilization been reduced Has the company improved environmental factors

Also consider using an Open Source vendor The Open Source community is beginning to develop sustainability metrics and Open Source reduces the costs of developing metrics while software costs for the project are reduced as well

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly ldquo

rdquo What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde ldquo

rdquo

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Step 6 Move from Green Hype to Sustainable Action

A successful sustainability initiative involves identifying metrics that will translate into cost savings and benefits while avoiding metrics that are not likely to yield required results To accomplish this start small start with a small department within the organization and then repeat this continuing to repeat it throughout the enterprise

bull Start with basic conservation Change behavior reduce consumption and in the process increase investment

bull Start reusing Improve productivity improve efficiency and create less waste

bull When this translates into cost savings re-invest Grow make larger improvements and increase involvement

Projects that make good starting points

bull Measure carbon dioxide emissions throughout a value chain or product lifespan Look for potential improvements

bull Ensure regulatory compliance By knowing what the regulations are companies can determine what metrics need to be in place

bull Identify ways to promote and profit from more environmentally-respectful goods and services Companies can promote environmentally-respectful goods and services while also using sustainability to help the company

Monitor the effects of each project to determine which strategies have the most impact both physically in terms of

the environment and financially in terms of revenues and cost savings Publicize how metrics are tracking over time

Actuate for Sustainability Management

Actuate for Sustainability Management is a solution by Actuate that integrates highly interactive visually rich dashboards There are pre-built sustainability scorecards strategy maps and over 100 pre-built metrics across the economic social and environmental aspects of sustainability

The Actuate BIRT Performance Scorecard supports the metrics defined including

bull Reducing an organizationrsquos environmental footprint

bull Building green facilities and buildings

bull Compliance and reporting

bull Manufacturing

bull Community and engagement

bull Human development including employee well-being and satisfaction

Actuate for Sustainability Management provides collaboration across regulators consumers and non-governmental organizations Dashboards and scorecards come integrated with reporting so as to improve reporting to stakeholders both outside and inside of an organization All of the products are built on Actuatersquos dependable cost-effective and scaleable platform

Performance Management solutions help organizations understand act on and influence business decisions processes and measures of business success The 2009 Actuate Performance Management Excellence Awards will honor customer success stories in four key areas Over the next several issues Perform Magazine will highlight some of the entries in these categories

Category 1 Go Green

Each year the concept of environmental responsibility has implications for both the private and public sector specifically with regards to how each measures the performance of their operations For organizations using the Actuate BIRT Performance Scorecard to measure the progress of organizational Green initiatives how have they responded to the challenge and how do they use the BIRT Performance Scorecard to ensure they stay on track

Category 2 The Perfect Slice

Successful Performance Management comes in all sizes Some initiatives are enterprise-wide while others are focused around specific business units or functions yet still encompass a holistic approach to Performance Management by looking beyond financial indicators to a more balanced set of indicators This category includes organizations deploying the Actuate BIRT Performance Scorecard with a focus on improving the performance of individual business units or functions and includes the measurement of people and processes

Category 3 Big Bang

Carefully executed Performance Management initiatives begin with a measured approach to the initial implementation and quickly expand to other parts of the organization aligning business units to strategy at each step This category is open to Actuate customers who initially implemented the Actuate BIRT Performance Scorecard to a limited user community and through careful change management and planning expanded the use of the BIRT Performance Scorecard throughout the organization

Category 4 Super Size

Award-winning enterprises achieve breakthrough results in the financial customer operational and people perspectives of their business and leverage internal champions across the organization to ensure ongoing and sustainable success The key to achieving these results lies in total visibility of all business units aligned to strategy This category is open to any Actuate customer with a fully deployed enterprise-wide Actuate BIRT Performance Scorecard implementation

Actuate Performance Management Excellence Awards2009

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HealthNow New York Inc headquartered in Buffalo is one of New York Statersquos leading healthcare companies doing business as BlueCross BlueShield of Western New York BlueShield of Northeastern New York HealthNow in the Central New York region and Brokerage Concepts Inc in Pennsylvania

Improving the health of people and communities are HealthNowrsquos corporate priorities and for more than 70 years the company has been a proactive partner in health working to improve the quality of care and the quality of life for everyone it serves In 2008 HealthNow provided access to care to more than 820000 members and in 2008 company revenues grew to $227 billion

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution and describe what you were trying to achieve as a group function or department

A few years ago HealthNow New York Inc determined that the key to its continued success would be its ability to differentiate itself from other healthcare plans in ways that could not be readily duplicated or copied by their competitors In an increasingly crowded marketplace to get the attention of new customers and retain existing ones HealthNow needed to set itself apart from others

This lasting competitive advantage needed to come from an organizational culture that was dedicated to a relentless focus on meeting customersrsquo needs It needed to be highly responsive supportive flexible and nimble particularly as the healthcare marketplace continues to change with more responsibility placed upon its customers

To that end a new business model was implemented to provide the framework for customer focus Under the new structure the company was divided into four strategic business units (SBUs) each responsible for financial contribution customer satisfaction medical utilization and market share of a specific book of business

Each SBU includes its own set of functions including sales account and broker management product configuration customer intelligence pricing enrollment and billing customer service medical management and HR support Each business unit is led by an executive who is fully accountable for the unit operations and for bottom-line performance of the entire business unit Each SBU is supported by various corporate support functions (Actuarial IT Legal etc)

Implementation of the new business model began with a reorganization of the senior management structure The senior management of each SBU has specific incentive goals as well as strategic goals aligned with the corporate incentive Those strategic goals then drill down to ldquoteamrdquo incentives and to a blend of strategic and operational goals

This was a completely new way of looking at our business It was a blank slate requiring new processes and new methodology as well as an examination of existing metrics and processes to determine what added value and where the strengths weaknesses opportunities and gaps were

Under this new structure the Government Programs State and Federal products SBU ndash which historically had some inefficient end-to-end processes lacked internal controls and had minimal oversight of financial performance ndash was able to set a foundation and develop a growth strategy In order to achieve this mission and to align track monitor improve and communicate performance the Senior Vice President of the Government Programs SBU elected to utilize a Performance Management framework via the Actuate BIRT Performance Scorecard

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

As a point of reference the Government Programs SBU is comprised of a State Government Programs team a Federal Government Programs team an Operations team and a Sales team The Performance Management design team was comprised of the Actuate system administratorfacilitator the Government Program financial reporting manager and two SBU data analysts Input from the various teamsrsquo management staff was gathered as the design got more granular

Discussions around the design of the Government Programs scorecard began with two basic questions

1 What are the handful (ideally six to eight) of key performance indicators that are necessary to run and manage your business and to indicate that yoursquore on the right path to achieving your goals

Defining the key performance indicators was a challenge that required the Actuate system administrator in a facilitative role to get intimately involved in order to keep the discussions focused and high level and to limit scope creep The incentive goals were clearly defined at the corporate and SBU level however the tough question was how should they drill down in the BIRT Performance Scorecard The facilitator posed the following questions to the other members of the design team

bull How do you usually look at your business

bull How are the primary source documents that capture this information structured

bull What other ways do you look at your business

Taking the answers to these questions a step further the facilitator asked the next question Is the drill-down structure the same for the core strategic or team metrics The answer was yes By taking this approach we were provided with consistency in how the teams look at their business and the performance of their core indicators

Once the incentive and strategic goals were identified more leading and lagging operational measures were defined such as

bull Call centers

bull Accuracy

bull Quality

bull Sales Performance

2 Who is your audience

Through the entire measure selection and definition process the design team was constantly reminded to keep a second question ndash who is your audience ndash in mind This helped keep the focus on the critical few and keep the number of metrics down to a manageable amount Links to supporting documentation were created to provide easy access to the granular data without burdening the scorecardrsquos objective

The audience in this case was the SBUrsquos Senior Vice President followed by the State Director Federal Director Operations Director and Sales General Manager It then cascades down to each directorrsquos management team and the data providers

In order to provide a complete and consistent picture of State and Federal performance for senior management where

gt Performance Management Excellence Awards

HealthNow New YorkCategory 2 Entry The Perfect Slice

gt Performance Management Excellence Awards

[ Figure 131 Homepage Map ]

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possible the same or comparable measures were created for each team For example when looking at the various call center metrics ndash even if the definitions and targets slightly differed ndash if one team was consistently exceeding or meeting their target it sparked group discussion around best practices processes staffing and target definition

Utilization of Maps continues to play a major role in communicating performance Again focusing on our audience there is a Map at the Senior VP level which then links to a high-level Map for the State director and staff and for the Federal director and staff The one-page snapshot allows management to easily view performance then to drill down to specifics via additional detailed Maps or Books Because the audience embraces the Maps concept a ldquoWhere is itrdquo Map containing all Maps and Books by SBU was created Itrsquos a quick and easy reference tool

3 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

Quantitative results are achieved through the promotion of visibility and awareness The Return on Investment may not fit a conventional definition but can be measurable and accomplished by challenging the data targets and accompanying commentaryaction plan narrative to drive performance improvement Are the targets realistic yet aggressive Are action plans being documented and carried out Are the actions discussions and decisions leading to improved performance and processes

Government Programsrsquo membership is measured and monitored in various ways via the BIRT Scorecard and other sources For example Federal membership is measured by product then by plan It is also measured by market then by product then by plan By creatively visualizing performance in multiple ways via a Map those same data results can sometimes become very obvious telling a different story that may not be obvious via standard reporting methods It may clearly illustrate that a specific product in a specific market is continuously under-performing for example Fact-based decisions can then be made as to whether or not to continue with this product in this market or it may initiate discussions as to how to grow and retain profitable membership for this product in this market

Another more recent example is an initiative to track claims-review savings By reviewing claims via various processes what savings can be recouped or realized What specific areas are State and Federal teams focusing on that can contribute to overall savings for the SBU Again where applicable there should be consistency in the metrics across

teams Placeholders are included to promote visibility to keep them in the forefront even though the data or processes may not be in place yet But by capturing results on one page via a Map it bridges potential gaps between the teams promoting awareness and synergy across the SBU

4 Qualitative results What ldquosoftrdquo or intangible benefits has the group department or organization received as a result of this solution

A major benefit of the scorecard framework for the Government Programs SBU has been the identification and alignment of roles responsibilities and accountability

The SBUrsquos Senior VP monthly leadership meeting focuses on four areas

bull Performance Performance is covered via the existing incentive strategic and operational metrics

bull Action plans Documenting action plans in the Performance Management Software Suite versus verbalizing action plans establishes ownership and accountability At subsequent meetings management follows up on key action items or plans to determine whether or not the corrective action did take place and if yes did it have the desired results

bull Strategic direction The strategic direction of the various teams is captured as a springboard to strategic thinking discussions and planning So as not to lose sight of short- and long-term strategic planning this aspect of the business now is housed in the BIRT Scorecard completing the strategic planning of the ldquoHow are we going to get thererdquo and ldquoAre we there yetrdquo cycle This holistic approach helps minimize the chances of our scorecard becoming too focused on operational performance and keeps strategic planning dynamic and visible

The value of these metrics is not in the data but in the commentary The individual teamsrsquo strategic direction ldquometricsrdquo are subjective red = 1 yellow = 2 green = 3 The target = 3 Each metric includes a description of the specific strategic path we need to research or move forward on as well as what goal achievement it supports The ldquodatardquo ndash or color ndash is based on basic questions like What did you hope to achieve this month vs What did you actually achieve this month Were there any successes barriers obstacles In addition to accountability the entire SBU benefits from the sharing of information having meaningful discussion taking appropriate action and collaboration

bull Key initiatives The last critical component is the identification and alignment of key initiatives that

are necessary to support achievement of the various incentives strategic goals and direction and operational goals As with the strategic direction metrics the value is in the narrative with the color reflecting what was accomplished for the specific reporting period

5 Innovation Why should this solution be considered an Innovative Solution What makes it unique groundbreaking and superior What unintended results did you realize

Over time the Government Programs Performance Management framework evolved into an innovative solution The process drives performance and isnrsquot necessarily focused on ldquocolorrdquo Rather itrsquos about having the right people in the same room on a regular basis to drive meaningful discussion and to take appropriate action to improve performance

Outside of the standard processes it was the monthly review process that drove effectiveness revisions enhancements and restructuring of the meeting schedule agenda and format The Government Program financial reporting manager would meet with each director and general manager to review their scorecard for completeness as well as for performance from an operational perspective The State and Federal team directors would then meet with their respective management teams to review and discuss performance results in preparation for the joint Government Programs Leadership Meetings The audience included the Senior VP down to team managers key data analysts (data providers) and support function representatives Through trial and error management learned to maximize their time and effectiveness by concentrating on key metrics and topics rather than trying to review all metrics identify leading indicators versus only outcome results and include strategic thinking and initiatives Today the monthly leadership

meetings are much more productive and look at strategic and operational performance

As involvement and participation increased in the team meetings as well as in the leadership meetings it removed silos opened communications enabled the sharing of information and best practices and promoted teamwork across the SBU But most importantly it brought about an awareness and a sense of unity and commitment within the SBU to achieve their goals something that was lacking before

While it was not part of the initial scope management realized shortly after implementation that efficiencies could be gained by replacing an in-depth hard copy monthly report with BIRT-generated results Since the BIRT Scorecard contained the same data with supporting narrative ndash plus additional metrics with narrative ndash monthly performance was captured via a monthly report Book various Maps and BIRT-generated reports Elimination of the hard-copy report was an unintended way of encouraging a more active use of the Performance Management software by management to monitor performance thereby increasing user familiarity with the contents features functionality and navigation

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

Sustainability is achieved through a continuous process of revisiting the scorecard when there are organizational changes looking at the business direction shifts goal changes process changes etc To ensure that metrics are still relevant a filtering process is held with each director and general manager every six to eight months or as necessary During this exercise questions such as the following are asked

gt Performance Management Excellence Awards gt Performance Management Excellence Awards

[ Figure 132 CEOrsquos Book ]

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1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

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3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

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Page 4: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

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54 percent of CIOs surveyed said Open Source will be their primary platform within five years The backbone of the internet even runs on Open Source software In addition to the benefits already noted some other high- level benefits surrounding the deployment of Open Source solutions include

bull Solutions vs software With Open Source programming the application received is precisely what the customer wants nothing more and nothing less Customers can elect to buy value-add products build it themselves or contract the work to a firm specializing in programming under a specific Open Source project

bull Speed to deployment A community of programmers develops the core elements of Open Source solutions and market deployment of these solutions is often quicker than proprietary business models

bull The role of developers Open Source developers working directly with consumers ndash in this case government agencies ndash can apply the best technology to meet the agencyrsquos immediate needs

bull Open Source standards and security Open Source solutions are extremely secure and vastly scaleable and reliable So much so in fact that prominent members of the financial industry such as Merrill Lynch and Credit Suisse First Boston use Linux ldquoopenrdquo servers for transactions

In all cases when searching for an integrated Performance Management solution your needs analysis should include complementary features and functions that help create the foundation of a system that people like using Donrsquot ignore features that help users access related knowledge best practices or the ability to quickly and easily deploy highly interactive executive scorecards dashboards and reports These will all contribute to high user adoption and alignment of your resources while external stakeholders are satisfied through similar display options built for them

Recommendation 4 Revisit Plans Regularly ndash Performance Management and Information is a Fluid Process Where Requirements and Directions Change Over Time

Performance Management in its truest sense has always involved getting cross-functional groups of people to work together through high levels of collaboration to help define organizational strategy (through the identification of high-level organizational goals and objectives as well as through related lower-level KPIs and metrics) Unlike other initiatives which have a natural start and end date you will find Performance Management is an ongoing process of redefining refining and changing directions as the environment around you changes and as directions from management are modified to react to changes in your surroundings For government the global economic crisis has placed increased expectations on every level of government to communicate performance and demonstrate accountability In doing so existing strategies will

need to be modified to include newer initiatives put in place to kick start recovery In essence the job is never done ndash itrsquos ongoing In addition to the general updates to strategy that all organizations experience over time you may also want to consider the following for effective management of your Performance Management initiative

1 Examine your initiative from the Program User and Technical aspect This will provide you with a structured way to review your Performance Management system your usersrsquo perceptions of the system and actual design of your strategic framework

2 Review outcomes to determine how much value is derived from your efforts

3 Review how well you have responded to transparency demands or performance improvement

4 Incorporate new initiatives and measures within existing scorecards in an efficient manner

5 Review current measurement processes to ensure consistent measurement across the organization

6 Re-educate your workforce as needed

7 Provide a forum for dialogue of new ideas

8 Ensure you are maximizing the use of your Performance Management system

Recommendation 5 Integrate Performance Management to Benefit from Two Highly-Collaborative Communities

Time and time again important decisions are made at organizations and across sectors using the traditional short-term ldquofinancial balance sheet approachrdquo Markets globally have demonstrated how this approach is flawed because it doesnrsquot take into account how these short-term decisions will impact future performance levels or the long-term viability of an organization

Earlier we suggested government take an integrated approach to Performance Management because of the tremendous benefits associated with having access to all enterprise information in a seamless environment that provides users with instant access to information at all times One of the main benefits not mentioned earlier which is critical to the ongoing success of any enterprise implementation is collaboration Collaboration can be divided into two groups collaboration among developers and collaboration among business users These two groups can come together to extract higher levels of value from Open Source technologies

Developer Collaboration

Open Source applications are built with the expectation that they will change they have to in order to grow and support new users These characteristics are the hallmarks of successful applications they keep their momentum by adding both users and features at the same time Open Source communities

contribute to the process by allowing application and report developers access and by sharing knowledge and resources relating to Open Source technology

In real terms using Actuate as an example the BIRT Exchange is a community site for Eclipse BIRT and Actuate BIRT developers who add reporting analytics and business intelligence capabilities to Java applications BIRT Exchange allows developers to share code samples and report designs tutorials technical articles as well as tips and tricks BIRT Exchange also offers forums downloads online documentation and information on BIRT technical support

Open Source applications also share a unique self-fueling characteristic in that the velocity to which they are enhanced is much faster than traditional applications ndash and this is directly attributed to its higher levels of collaboration Another way to look at this is from the context of a user and by looking at a series of events that unfolds as users embrace a new application and start to make requests

1 When you give users information you make them smarter

2 As they become smarter their questions change

3 This in turn changes application requirements or scope

4 Commonly-requested functionality is added to the application

5 User and developer collaboration speeds up the development cycle

Business User Collaboration

As mentioned earlier Performance Management is a highly collaborative effort that involves multiple internal and external stakeholders working through how goals and objectives translate into lower level KPIs which in turn link to frontline metrics It is only after an organization creates these linkages that alignment can occur A common thread for any strategy ndash regardless of industry ndash is that with time it will somehow change as organizations react to internal and external events so one can also look at it as an evolutionary process that involves everyone working towards a common set of goals and objectives which at some point over in the future will be changed or modified

What benefits can government organizations expect from the Integrated Performance Management process and how does collaboration add value Through an integrated understanding of performance government organizations gain insight into all aspects of their operations allowing them to have tighter control over obvious areas such as waste efficiencies and human resources in addition to enhanced insight into more strategic long-term success indicators such as innovation and sustainability among others In all cases this enhanced perspective into how an organization is performing across its top-level goals creates a smarter organization that empowers people to make better more informed decisions Simply put the Integrated Performance Management systems they use provide them with a complete picture Value is realized when a strategy is in place and when a systemized Performance Management initiative takes hold internally This is when performance results are communicated in the context of the organizationrsquos mission The communicated performance results then become a trigger to fix and improve areas where performance is below target ndash and the difference or ldquodeltardquo is value

Of course no strategy is perfect and over time it needs to be revisited enhanced and improved (if needed) by the same internal and external stakeholders that helped define it in the first place The process repeats itself once again which enhances the value or output of the planning efforts ndash each iteration hopefully provides a higher value return Without collaboration strategy canrsquot be improved and value canrsquot be enhanced

How Developers and Business Users Enhance the Value of Your Open Source Applications

Integrated Performance Management powered by Open Source technology creates a bridge between the developers who have traditionally collaborated (from a technical standpoint) in the Open Source model to include highly strategic executive-level business users Collaboration is enhanced with Open Source because the needs of technical and business users can merge from what was once two distinct development paths into a single cohesive system of requirements and enhancements which all serve to improve an application over time

For government specifically Open Source not only delivers the benefits associated with more rapid deployment of technical updates and changes but it also offers government leaders

Performance Management in its truest sense has always involved getting cross-functional groups of people to work together through high levels of collaboration to help define organizational strategy ldquo

rdquo

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Vol 6 Issue 2 2009

Need More InformationVisit the Actuate Website

wwwactuatecomwhy-actuateapplicationsstimulus-management

Download a Brochure of the Actuate Stimulus Management Solution

wwwactuatecomdownloadbrochures-datasheetsOPM-Stimulus-Management-briefpdf

Get access Actuate Stimulus Management Live click here

wwwactuatecominfoStimulus-Management-Live

a means to share best practices report templates measure structures scorecards etc that are not readily accessible with a closed model Additionally since governments serve to improve performance at all levels to their constituents the concept of collaboration exists in its truest sense because ldquocompetitionrdquo does not exist (as it does in the corporate sector) Governments in this sense are unique in that they can focus on collaborating with other government organizations to ensure that they learn from each other and can benefit from enhancements from either a technical or business standpoint

Responding to the ARRA How Do You Get There

Open Source ndash The Best Option for US Government

By no means is Open Source a new idea Open Source technologies and solutions such as Java Linux Solaris MySQL Apache and OpenOffice are well established and well proven with billions of people using them Some of the worldrsquos most successful companies ndash including Google and Facebook -- run their businesses on Open Source technologies

There are a few success stories in the US government yet we still lag behind governments in the United Kingdom Brazil Denmark the Netherlands China and Germany etc Governments there have engaged in formal wide-scale deployments of Open Source technology with many having articulated specific policy on Open Source As such without a clear Open Source policy in place the United States risks widening economic and technological competitive gaps between itself and the rest of the world

Do You Know BIRT

When it comes to solutions designed to respond to the reporting and transparency requirements outlined in the American Recovery and Reinvestment Act government leaders

will be pleased to hear that a full suite of value-added products and solutions are available today that are built specifically to address the ever-changing reporting complexities of the Act

Sitting at the core of this pre-built Stimulus Management Application is the Actuate BIRT Performance Scorecard the most fully-featured Integrated Performance Management System ldquoIntegratedrdquo is the key word here ndash because true performance insight requires access to all of your information so that it remains in context with your search at all times regardless of where your data resides

So what sets BIRT apart Itrsquos Open Source to start In fact itrsquos the most widely-used and accepted Open Source business projects in the world and it is reshaping how people in the workplace collaborate to use assemble and view information through the enhanced dynamic interactivity it delivers to every user across the enterprise

This rich collaborative environment is different because of how quickly changes can be deployed and enhancements added to the core technology stack BIRT will change how internal consumers view and use information and their changing needs help dictate future enhancements

Components of Actuate BIRT Stimulus Management

bull Pre-built framework of over 250 ARRA metrics

bull Dynamic BIRT templates including cost reports and interactive Google Maps

bull Actuate BIRT Performance Scorecard The most fully featured Performance Management system Proven methodology delivers concrete milestones tailored for each customer

bull Actuate BIRT and Flash Objects Intuitive rich dashboards display financial and non-financial metrics in context of other leading operational indicators with drill-through into personalized analysis-ready BIRT reports

bull Actuate BIRT Spreadsheets Automate the Excel spreadsheet creation process eliminating errors introduced by manual intervention thereby minimizing risk and improving data accuracy in business-critical spreadsheets

bull Consulting Services Unmatched Operational and Strategic Performance Management knowledge software consulting coupled with knowledge transfer

bull Metrics Library Leverage an extensive library of over 12000 metrics and a tailored ARRA solution database

John Katsoulis joined Actuate in November 2002 and is currently Senior Manager Product Marketing He has 13 years of combined experience in software consulting product management and product marketing John is responsible for the product marketing and development of new applications for Actuatersquos Performance Management solutions and also the editor of Perform Magazine

By Norma SimonsPresidentSimons-White amp Associates Inc

As workplaces become more complex with higher expectations the demand becomes greater for accountability and performance results As a result internal pressures escalate for organizational change which ndash if implemented

correctly ndash can lead to sustainable success for both corporate and government organizations

Itrsquos well known that Performance Management models and frameworks can help any organization create better alignment

by ensuring all resources are directed to those areas that are deemed strategic ndash but is that enough What about instances where alignment still falls short of expectations when the organization in question is still plagued with higher-than-expected levels of waste and inefficient processes How do you manage these processes and can traditional Performance Management methodologies provide enough insight to ensure success Or are other tools needed as well

With so many models and improvement tools available for organizations to use the challenge becomes one of identifying gaps and of implementing supplementary frameworks that fill those gaps These frameworks aim to fix operational areas that impact both top- and bottom-line strategy This article

TEN CRITERIA for Integrating SIX SIGMA with

Performance Management

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will address how any organization can leverage its current Performance Management efforts and enhance outcomes and results by integrating and applying Lean Six Sigma If done properly organizations can use Lean Six Sigma with Performance Management to systematically improve operational performance by eliminating waste and by creating efficient business processes

For those who are not familiar Lean Six Sigma focuses on improving the quality of process outputs by identifying and removing errors and variability in manufacturing or business processes The Lean approach leverages statistical methods and analysis and requires that an organization create a special internal team of people who are experts in these methods (Black Belts Green Belts etc) As such Lean Six Sigma projects follow specific steps and have quantified targets Another way to look at Lean Six Sigma is as a project that is focused on cost savings and on removing mistakes or defects in a process

A Performance Management system is key to any Lean Six Sigma implementation Itrsquos the foundation from which Lean Six Sigma projects are built which means organizations that donrsquot have a functional Performance Management system are starting the Lean Six Sigma journey without the right tools Performance Management helps to clarify the business case to link projects to the bottom line and to provide a baseline of comparison as performance improvement occurs project by project If you donrsquot have a good Performance Management system you donrsquot have an effective method to set priorities in terms of which project you need to start on first

Performance Management then becomes the skeleton or backbone to Lean Six Sigma initiatives ensuring that you select the right projects that projects are linked to the bottom line and that they are done in the right order according to priorities that make sense And once the project is done Performance Management ensures that improvements are monitored and therefore sustained for long-term success

Initiating a Lean Six Sigma project begins with an assessment based on available Performance Management information You identify the approach you want to use ndash whether itrsquos Six Sigma or Lean will depend on what the challenge is ndash you execute the project and finally you monitor the business process to replicate the benefits Many times Lean Six Sigma will fail because of an organizationrsquos inability to replicate success yoursquove done a project there was success but you canrsquot repeat the process If you start off with a Performance Management system it becomes the DNA of the company that you can use to keep and maintain projects

There are 10 criteria that should be used as a baseline focus for the design of a Lean Six Sigma initiative integrated with Performance Management These 10 criteria will vary depending on whether yoursquore with government education healthcare or manufacturing and each has unique requirements that will impact how your program is going to be designed ndash but the fundamental principles in each criteria stay true across these segments

1 Customer Focus

Customer focus is one major criterion that will impact how a Lean Six Sigma initiative is designed Companies should be asking these five questions

1 Is the organization focused on the needs of the customer rather than just internal organizational requirements

2 Is there a process to capture the voice of the customer in an active way Are there surveys for example or are there means of talking to the customer to capture that information

3 Is that information collected Do they keep track of customer data

4 Is the data reviewed and disseminated so that people internally can understand how the organization is viewed

5 Are people aware of the internal customers as well as the external customers

This idea of customer focus is easy to grasp in the manufacturing environment because at the end of the day you are producing a product ndash a deliverable thatrsquos physical In other words many times when you go into a manufacturing plant there is some visual clue that gives you an idea of the extent of customer complaints especially external customer complaints There are also some areas of the organization that will be actively capturing the voice of the customer ndash in the marketing and engineering departments for example ndash communicating that information and using that information in the design process

Government organizations present a different challenge since customer focus is not something that is generally paid much attention to there What we find is that in the public sector you have a captive audience When you think about going to any public-sector organization ndash any city council or the mayorrsquos office etc ndash you are not there by choice As a result people within those environments lose sight of value because their remuneration is not tied to customer satisfaction instead they tend to be very internally driven and focused more on specific procedures that need to be followed and adhered to no matter what They donrsquot try to make things user friendly because they donrsquot have a natural customer focus built into their organizational DNA This is a major struggle in government

Similarly in the case of education customer focus is not a concept that is always embraced or translated in a way that produces desired results for stakeholders Individuals seem to forget or try to get around the idea that students are actually critical customers They are the deliverables of the entire educational system and their tuitions fund the school yet

despite this reality you still find professors and administrators who lose sight of who the customer is Again you have a service being provided without any dialogue or feedback and the people who are paying for it donrsquot get to ask any questions The customer focus is not very strong

Finally in healthcare everybody understands customer focus Everybody is panicked about the patient the safety of the patient and the care the patient needs But the system is not designed to deliver effective patient care they have not structured the system with that in mind Instead cost efficiencies and utilization take precedence

2 Leadership Commitment

Leadership commitment is also very critical to any Lean Six Sigma rollout What we typically find is leaders who are experts in their fields but who have limited or no knowledge of Lean Six Sigma they may hear of the terminology and think it sounds like a good thing but when itrsquos deployed they donrsquot get involved Companies that are successful in Lean Six Sigma are ones where management has been on board and an active part of the rollout from the beginning If management understands what Lean Six Sigma is about they can demonstrate the value it delivers therersquos a connection between processes and

business priorities and they can be more proactive in their involvement of Lean Six Sigma when these connections and the impact of their improvements are made clear to them

Traditionally leadership commitment in Lean Six Sigma has been weak no matter the industry In the manufacturing environment managers in some cases have bought on but in healthcare education and government leadership commitment is still weak In most cases itrsquos unfortunately one of the weakest links of any Lean Six Sigma initiative

3 Organizational Culture

A major problem in many organizations is the insufficient use of data not having the right data or not understanding how to use the data These stumbling blocks can have a tremendous impact on the culture of an organization since there is a strong psychological component attached to performance data This psychological component isnrsquot just related to how data is collected but also to how itrsquos viewed and the response it elicits For example when performance data is used to point out who went wrong theyrsquove in turn introduced a culture of fear that precludes the collecting and effective

use of data In turn this results in fewer people using the performance information and can also lead to people actually fixing the numbers because they know that data will be used against them The psychological component is critical

Also important is teamwork and collaboration across departments Wersquove seen more movement towards collaboration in the past 10 years in the manufacturing industry where certain initiatives have forced people in that sector to be more collaborative than they were originally A good example is concurrent engineering which allows for products and processes to be developed and refined by teams of people some of whom may work in the same building while others are in a different city or country their processes and goals are aligned to ensure a common output

In sectors where collaboration is less evident there are indications that this is partly due to strong departmentally driven organizational silos that prevent the collaboration needed to get to the next level As such the concept has had little impact in these organizations which most people characterize as being rule and process driven When presented to work together to improve performance these organizations are more likely to find out where the problem exists to ensure the right people are held accountable instead of using the cross-functional platform to ascertain how the organizational process of one or many departments can be improved to ensure better results in the future

If you are just beginning a Lean Six Sigma project and run across an organizational culture that is built on fear and mistrust or one heavily influenced by departmental silos and rules yoursquoll have to leverage Performance Management and demonstrate its benefits as you slowly align groups and people to a common set of goals and objectives while along the way you link to processes If done properly this key success factor will ensure you maintain the momentum needed to effectively engage and implement Lean Six Sigma and Performance Management

4 Company Strategy

If a company strategy is not embraced at the start of a project you can go down the path of putting together a Performance Management system and working on Lean Six Sigma with no alignment to top-level strategy or mission You many find that many projects will have no clear link to the direction and overall

purpose of the company Therefore they wonrsquot drive the right results The whole initiative will become short-lived as a result because when therersquos a crisis everybody will just move in a different direction

Everyone needs to understand the company strategy This will ensure that corporate strategy drives Performance Management that your improvement initiatives are closely aligned to top-level goals

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Vol 6 Issue 2 2009

and KPIs and that your people naturally work on the right projects

Demonstrating this linkage and the success you can attain by engaging the process properly can build the business case Another way is to demonstrate what can happen if you donrsquot fix the problem and its overall impact on the organization

5 Process Management

Process management is a foundation on which to build a cross-functional silo which is a good thing because it allows you to break through the traditional barriers associated with processes which for the most part tend to be focused around individual departments or business units Introducing the concept of process management into an organization can be disruptive especially if this individual is tasked with looking at the linkages of business processes across departments and how they can be improved

Most organizations typically already have departmental managers who run functional areas Whatrsquos missing in most cases are process managers who are tasked with focusing on critical cross-functional processes key to the survival of the organization and to the elimination of waste and increase of value through overall improvements

In organizations with siloed ldquofunctionally drivenrdquo cultures disconnects between different departments create waste and over time this erodes value To ensure success any improvement effort needs to be executed carefully facility by facility or function by function looking at processes baselines and at collaboration across these areas This is key to eliminating inefficiencies in organizations

6 Support for Change

Itrsquos important to recognize that Lean Six Sigmarsquos integration with Performance Management is providing many industries with a new way of looking at running complex organizations As such it needs to be embraced by everybody People need to have a positive view of Lean Six Sigma and the organization has to be prepared for the suggested changes Many times individuals misinterpret recommendations as an attack on how they are executing their duties but actually Lean Six

Sigma can be leveraged to amplify the efficiencies of individual departments by ensuring the same level of scrutiny is applied at process junction points

When managing change it is important to take into account the characteristics of the industry in question including the history of the organization the organizationrsquos overall cross-functional culture and the attitudes of its workforce and management In many instances people donrsquot want to initiate change because they think any new process is a phase that will soon pass and that theyrsquoll be returning to business as usual at some point in the future To ensure these difficult situations donrsquot impede on the Lean initiative there has to be some kind of orientation that has to match the industry in question whether itrsquos government manufacturing health care etc

7 Performance Measurement

Companies must identify their true performance drivers or Key Performance Indicators as opposed to measurements that are collected regularly that donrsquot relate to anything Often those numbers have been created randomly which means theyrsquore not driving organizational performance and as a result wonrsquot provide the insight needed to make informed decisions In other cases these measurements are in place because at some point in time someone thought they would be a good idea but under more careful scrutiny they reveal very little For many this problem exists because people donrsquot know the difference between a metric and a Key Performance Indicator

Performance metrics are measures of an organizationrsquos activities and performance Performance metrics should support a range of organizational needs in order to provide proper performance insight While traditionally many metrics are finance based ndash inwardly focusing on the performance of the organization ndash metrics may also focus on performance against customer requirements and value and also include information and performance insight into employees and processes

As mentioned a criticism of performance metrics is that many organizations choose measures that have little value In most cases this is caused by selecting what is immediately measurable even if these measurements have low value and by a tendency to ignore high-value measurements simply because they seem harder to measure

Key Performance Indicators (or KPIs) are financial and non-financial measures or metrics used to help an organization define and evaluate how successful it is typically in terms of

how it is making progress towards long-term organizational goals KPIs can be specified by answering the question lsquoWhat is really important to different stakeholders both internally and externallyrsquo KPIs differ depending on the nature of the organization and the organizationrsquos strategy They help to evaluate the progress of an organization towards its vision and long-term goals especially towards difficult to quantify knowledge-based goals You can measure a process with many metrics but only a few of those metrics are key for your organization (for example based on your business strategy andor operational improvement initiatives)

The intent of performance measurement is not just to have measurements but to have the right measurements at the right time in the right place and to make sure that those measurements drive overall performance Itrsquos key for setting a foundation for Lean and Six Sigma If there is a good performance measurement system in place that takes into consideration Key Performance Indicators or key drivers then it becomes much easier to set up the entire project

8 Problem-Solving Skills

Performance Management systems become key indicators to groups of individuals within an organization helping them to measure their own performance Without performance measurement without a good system in place they have to wait for their boss to tell them theyrsquore not doing the right

thing Performance measurement then offers a mirror or a type of feedback mechanism on how well a process is doing Problem-solving skills meanwhile provide you with the tools to do something about it

A lack of problem-solving skills can be a major stumbling block for people and organizations they may be measuring things but if theyrsquore not doing anything with the results that becomes useless Recognition is only the first step having the skills to do something about it is the second Itrsquos the critical second half to Performance Management

While problem-solving skills ndash in the manufacturing environment at least ndash have become a priority over the last 10 to 15 years theyrsquore still not ingrained into the industryrsquos DNA People coming into the workforce are coming without proper problem-solving skills and they have to learn them as they go But one problem is that information silos exist and because individuals are not seeing across those silos they miss the solution to the problem at hand Thatrsquos one barrier A second one is that people often think that problem solving is for someone else that itrsquos not part of their job description Theyrsquore not trained in problem solving they donrsquot know how

to recognize problems and identify problems and describe problems and find the root causes of problems Coming up with a structured methodology for problem solving and problem resolution is a piece thatrsquos missed across the board

This is the main reason why problems occur over and over again because people are aware that theyrsquore occurring but donrsquot know how to respond to them they donrsquot have the skill set to do so Moreover theyrsquore often not even allowed to do so because itrsquos not part of their job descriptions Or some problems might be initiated between departments which means that without a culture of collaboration things donrsquot come together

When yoursquore solving a problem it canrsquot be a random event it has to be with structured methodology Before anything a scope must be determined What is the problem How do I identify the problem How can I measure that this is a problem Whatrsquos my baseline performance Now that I know my baseline performance whatrsquos my root cause And the root cause has to correspond to drawbacks that exist in the system that are preventing you from achieving a certain objective

The number one reason why we canrsquot solve problems is that we canrsquot describe them and you can only describe a problem if you have a measurement system in place that helps you understand where you are In any environment a problem is defined as a gap in performance between where you are and where you want to be Thatrsquos it If you canrsquot describe the problem in those terms then you canrsquot solve it Many organizations will say that communication is their biggest problem and they canrsquot seem to resolve it But why not Because communication is a symptom of whatrsquos happening not the problem itself Most times people respond to symptoms and not to actual problems

Finally often when a problem occurs the first thing asked is lsquoWho is at faultrsquo But if thatrsquos the first question then the chance to resolve the issue is immediately lost Because if you ask lsquoWho is at faultrsquo everyone immediately tries to protect themselves if someone feels that they could be at blame then theyrsquore not going to come forward to try to solve the problem ndash rather their objective is going to be to protect themselves When this occurs because they donrsquot want to be at fault they might generate another piece of data to cover themselves another procedure on top of another procedure That only adds more complexity and generates more waste Which is why the first question should always be lsquoWhy did it happenrsquo instead of lsquoWho is at faultrsquo

9 Business Intelligence

You canrsquot run an organization department or process based on data that you received a month ago Which his why in todayrsquos environment information applications need to provide you with up-to-date real-time data in addition to the summarized performance information that can be used to identify potential longer-term performance issues

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Everybody within the company needs information and uses data In most cases employees are interacting with real-time information and making decisions based on historical performance The problem is people tend to want to report on everything which preoccupies employees and takes them away from their core duties Fully integrated Rich Information Applications address these issues by providing employees with real-time enterprise data using a single version of the truth delivered in a dynamic environment that allows any user to interact and modify the information to answer business questions specific to their function

10 Human Resources

Finally one of the things that also has prevented success and is sometimes a stumbling block for Lean Six Sigma deployment is the fact that the training programs that are rolled out by human resources may not be closely aligned with the companyrsquos mission

Once a company starts down the path of Lean Six Sigma the human resource systems need to change alongside it At the heart of Lean Six Sigma is a team approach reward and recognition systems need to reflect that so human resource systems will need to address it

Also critical is that team building has to occur across functional silos You have to build teams and people have to collaborate Human resource systems will drive that

Conclusion

To summarize itrsquos clear that when executed properly there are tremendous benefits associated with an integrated Lean Six Sigma Performance Management initiative Organizational Performance Management information provides strategic information and communicates progress towards a set of goals or objectives across the organization but in instances when things go wrong Performance Management alone does not provide a means to systematically and consistently address problems that arise in the business process or production realm This is where Lean Six Sigma can help assisting organizations in addressing these defects to ensure better results in the future

Norma Simons is president of Simons-White amp Associates a performance consulting company in Ann Arbor Michigan that has been in business for over 16 years and employs performance improvement systems such as Lean Six Sigma Quality Management Systems Business Operating Systems and Balanced Scorecards Certified as a quality engineer reliability engineer and a Six Sigma Black Belt Ms Simons has an MS in industrial engineeringoperations research from Wayne State University in Detroit Michigan Contact Ms Simons at nsimonssimons-whitecom or visit wwwsimons-whitecom

In instances when things go wrong Performance Management alone does not provide the means to systematically and consistently address problems that arise in the business process or production realm This is where Lean Six Sigma can help

ldquo

rdquoldquoWith the Actuate BIRT Performance Scorecard in place now we are able to communicate lsquowhat is important to the organizationrsquo across hierarchies and geographies seamlesslyhellipcause-andndasheffect maps have become the basis for all reviews and prioritization of strategic initiativesrdquo

- Gopal Sharma Senior Manager Business ExcellenceVoltas Limited Dubai

To deliver on its mission to provide high quality cost-effective project management and engineering services to customers throughout Asia Voltas

Internationalrsquos Electrical and Mechanical Division (EMD) adopted the Balanced Scorecard (BSc) as a tool for strategy deployment in 2004 The BSc was designed for EMD in line with the strategic objectives and cascaded further to all units and business heads for effective implementation The measures were tracked on a quarterly basis using Excel spreadsheets

Tracking BSc measures through spreadsheets proved to be ineffective in tracking progress on divisional performance

measures Moreover due to lack of integration the Performance Management tracking through BSc was limited to financial measures only The non-financial measures were not tracked due to lack of aggregation of data across levels and geographies This led to misalignment among various functions resulting in ineffective strategy deployment across the division

The major hurdle was ensuring the integrity of the performance data on non-financial measures hence an integrated system was required to ensure the flow and aggregation of data across all levels Also the reporting structure on various key performance indicators (KPIs) was not streamlined for effective Performance Management in the division

The situation prompted Voltas to seek automation of the Balanced Scorecard with integrated tracking and monitoring of the KPIs related to strategic objectives of the company

The SolutionA team was formed to explore more robust Performance Management tools Voltas conducted its due diligence in

Putting the Wheels Into MotionVoltas Views a Dramatic Shift Towards Transparency

Alignment and Dynamic Response

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finding an appropriate solution and in December 2007 chose the Actuate BIRT Performance Scorecard as its Balanced Scorecard solution

The software was customized in-house to the divisionrsquos needs and implemented across levels and locations The major challenges overcome during implementation were

bull Complexity of location structure and measures structure This sophistication and flexibility was a requirement to ensure the integrity and correct aggregation of the data and needed to be incorporated into the overall system

bull Aggregation of financial performance data from different countries in different currencies Led by the local support team and Actuate partner EU Partners a currency conversion facility was created to overcome this hurdle

bull Software access through smart client route at project sites A weak internet connection problem was resolved by Actuate Customer Support which installed the clientrsquos executable file on the local PC An Excel import and export tool is used for data updates to the system

About VoltasElectrical Mechanical amp HVAC Solutions (International) is part of Voltasrsquo Electro-Mechanical Projects amp Services cluster Established in 1978 as Voltas International Limited (a wholly-owned subsidiary of Voltas Limited) to handle international business interests the business looks after core business activities in the Mechanical Electrical amp Public Works (MEP) project areas specifically turnkey projects in

bull Electro-mechanical works comprising electrical building services HVAC (heating ventilation amp air conditioning) plumbing public health fire fighting ELV amp specialized systems

bull Electrical power projects

Voltas Limited a TATA enterprise offers engineering solutions for a wide spectrum of industries in areas such as heating ventilation and air conditioning refrigeration electro-mechanical projects textile machinery machine tools mining and construction equipment materials handling water management building management systems indoor air quality and chemicals EMD is one of four independent business-specific clusters within Voltas Ltd each with its own facilities for market coverage and service to customers

All of the above challenges were addressed easily to match the companyrsquos needs thanks to the versatility and customizable features in the BIRT Performance Scorecard

The initial rollout of the Performance Management system started in March 2008 with successful system deployment across all locations by the end of August 2008 The implementation involved user training on the software and BSc measures

Benefits

All business reviews are now being conducted online in the system both at the regional and corporate levels Managers can view the status of each project by just logging in as well as review and approve actions planned by the project lead without waiting for any formal performance review meetings This has led to a dramatic shift in the way Voltas manages its performance and has improved the transparency in tracking KPIs

Major benefits derived from the implementation are as follows

Solution OverviewIndustry Engineering Services

Company Size $400 million 3800 Employees

Challenges

bull Spreadsheets ineffective in tracking divisional performance

bull Non-financial measures were omitted due to data integrity issues lack of aggregation

bull Strategy unevenly deployed leading to misalignment

Solution

bull Actuate BIRT Performance Management Software Suite

bull Integration consulting services

bull Customized smart client

Benefits

bull Transparency in tracking KPIs all in one place

bull Alignment of action plans to division strategy

bull Dynamic Performance Management timely reviews

Design Stage

bull Measurement system evolution and refinement during system configuration

bull Clear consensus on KPI definitions and descriptions

bull Minimal support required during configuration and implementation

bull User training and access with individual user ID and password cementing ownership and accountability of the scorecard across hierarchies in the division

bull BIRT Scorecardrsquos ease of customization to business needs enabled instantaneous execution of required changes in the system

Rollout and Implementation

bull Strategy Map and other Cause amp Effect Maps have become highly illustrative in communicating the relevance of various measures and their integration with strategic objectives

bull Action Plans are fully aligned to divisional strategy and can be monitored online

bull Timely business reviews and dynamic communication of performance

bull All key performance indicators are tracked and available in one place business performance reports are generated as and when required

Going forward Voltas plans to roll out BIRT Scorecard access to its subsidiaries and to joint ventures in order to track the Balanced Scorecard of allied companies on the same platform The goal is to use it as a comprehensive Performance Management tool for the international operations of the entire company

Voltas has branch offices in Abu Dhabi Dubai Qatar Singapore and Kingdom of Saudi Arabia For more information on the company visit wwwvoltascom

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In todayrsquos economic climate careful decisions are needed to help

business remain competitive and to continue to succeed To stay smarter they need to build deploy and maintain business-critical reporting and information applications

Open Source Business Intelligence while it comes with its own set of technical challenges and misconceptions is often the right solution to deliver that Actuatersquos Business Intelligence Reporting Tools (BIRT) Open Source solution ndash developed with the Eclipse Foundation ndash is one example of a robust and web-centric Open Source Business Intelligence tool

The Open Source Model

An economic shift has occurred in the past decade introduced with the rise of the internet The internet provides connectivity which in turn connects demand to supply this removes the capital equation and shifts conditions in the market People with computers all over the world provide the means of conduction and with easy ways for these people to connect they can easily collaborate on projects with very little infrastructure This in turn led to the popularity of Open Source

Open Source has had many consequences for the enterprise software market primarily by making it a commodity market and by driving down price It also allows people who have a desire to do something to make money from doing it Production inputs are widely distributed and the raw materials are there to produce things in new ways Many argue that this shift has been about software licensing but actually it is largely about the production and distribution of software it is therefore a change that is more about economics that about ideology That economic base ndash the combination of connectivity of easier ways to market produce and distribute software and the fact that the internet acts as a giant copying machine ndash changes the conditions under which software can be sold That is why Open Source continues to disrupt the market and to force vendors to come up with new ways to cope with it Enterprise software is not going away rather it has been forced to shift

A 2008 survey by North Bridge Venture Partners asked Which sector of the software industry is most vulnerable to disruption by Open Source At the top of the resulting list was web publishing and content management a market thatrsquos currently highly fragmented and therefore perfect for introducing Open Source products The second sector was social software an entirely new category that has been difficult to define and difficult currently for commercial vendors to make money from again Open Source is the ideal solution

Business Intelligence was the third sector listed in the North Bridge survey Again this is understandable since BI tools and data warehousing tools are exactly that tools While end users consume the outputs theyrsquore not themselves often put into the hands of end users rather IT sets up the meta-data defines metrics etc Which means Open Source is targeted at the right audience there is a platform in a data warehouse that has multiple layers any one of which can be Open Source or

LEVE

RAG

ING

O

PEN

SO

URC

E

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proprietary Those modular boundaries make Open Source an ideal fit

What IT Looks For

IT acts ndash for the most part ndash as the gatekeeper to Business Intelligence When searching out new software IT generally looks for three things

1 Better alternatives to the status quo Specific features that are better for example

2 Ways to cut costs With commodity infrastructure in place IT has to try to drive down costs

3 Unique attributes There may be something they want to do but cannot do using their current system or features that might not be available (For example their mainstream BI package might not have web-accessible dashboarding that can be self-service)

Why Open Source

In addition to examining the sectors left vulnerable by Open Source the North Bridge Venture survey also asked What makes Open Source attractive Price was the most popular answer In addition to the capital cost of licensing Open Source drives down acquisition cost as companies no longer have to go through heavy proof of concept Itrsquos also easier to trial things and if license costs are less then maintenance costs are also less Finally unbundling maintenance support and service means that businesses can choose from a menu of services instead of being forced into a 20 percent single lump fee

The study also showed that companies found that Open Source offered freedom from vendor lock-in In addition it is flexible with easy access to commodity code in order to develop embed and build content into websites

Another 2008 study by The 451 Group gave a list of what organizations saw as benefits to Open Source once it was already introduced At that point flexibility ndash by 05 percent ndash came out over cost In this instance though the definition of flexibility was different respondents were impressed by the fact that there is no vendor that dictates when they have to upgrade how they have to upgrade and why they have to upgrade For a commercial vendor at end of life or desupporting versions of their software a sales and marketing schedule will often require a release every Q1 whether they are ready or not As a result

companies will be forced into an upgrade they donrsquot want that was released simply because marketing dictated it and not necessarily because it was ready Open Source is typically not under those same types of pressures

Buyers were also impressed by scaling costs if an organization has 50 initial licenses and pushes it out to 150 more people in BI lowered costs come in beyond the initial capital costs As well companies are not dependent on vendors for service or for additional pieces of technology

Whorsquos Adopting

Open Source Business Intelligence adopters include

bull Independent software vendors solution providers and OEMs They are taking Open Source BI and pushing it into products that need reporting and dashboards Theyrsquore beginning to build capabilities using Open Source into quality networking gear file servers and databases

bull People who have traditionally been underserved and have not been getting what they need for whatever reason They may not have had the budget or their current vendor might not offer some of the functionalities that they want Possibly it could be over-serve at least half of the features in a major BI stack today never get used

bull Developers Web developers provide information ndash especially database information ndash on their websites while internal developers have to build reporting features into applications and typically do not have access to the tools they need Tools like BusinessObjects and MicroStrategy live in a data warehouse in a different area of the organization and canrsquot be embedded easily

In terms of the organizations adopting Open Source BI many are on the small side with less than $100 million in revenue But very large organizations are just as likely to adopt Open Source solutions as well This is the inverse bell curve of Open Source BI implementation

Smaller-sized organizations have fewer data sources and more manageable data volumes are more interested in cost flow and also donrsquot have the same level of data volume and complexity that might exist in a medium-to-large organization or deployment Much more manageable data volumes less cost to scaling and fewer technology issues in terms of complexity make these ideal environments for Open Source

Open Source drives down acquisition cost as companies no longer have to go through heavy proof of concept ldquo

rdquo Large organizations though have equally ideal environments They arenrsquot for the most part introducing Open Source at an enterprise-wide level but rather have projects with specific features that need to get done The project in question may exist only within a single department which pushes down data sizes and deployment complexities making them a good target

Introducing Open Source BI

Open Source BI use often comes in at the edges and results from discontinuity An example of such a discontinuity might be a company restart many data warehouse projects started with a particular data model ndash copying a production database and putting reporting on it for example ndash and have to do a schema change At that point the cost of switching from one BI tool to another or from one ETL tool to another is fairly low Everything has to be changed anyway metrics change schemas change queries change The same is true with platforms moving from one database to another involves an integration of an entirely new set of systems These discontinuities often allow for the introduction of Open Source

New interface requirements can also lead to Open Source implementation as a company attempts to bring data-warehouse data into an application deploying it out through a website or via an application But some users may only need a few single simple production reports and donrsquot need to be served through a tool that costs between $1000 and $1500 per seat which is the average per-seat deployment cost of iTools Companies can reserve their BI tools for core individuals who need the flexibility and features and can build Open Source into applications for large-scale but simple reporting

In fact in most cases organizations donrsquot replace an entire system with Open Source That only happens in the cases of large discontinuous change where the features are good enough in an Open Source tool the deployment matches and there is no reason for pushing through a high-cost high-complexity solution Whatrsquos more likely to happen is an augmentation where a particular department ndash or a segment of users or particular class of tool ndash is given something that they need in Open Source For example a BI tool might be good and flexible with interactive reporting that can get production reports out and do the schedule but perhaps doesnrsquot have statistical features rolling out something like R to only a couple of analysts and layering that on top of the warehouse may be the solution

Augmenting and bringing in new features and capabilities in areas where Business Intelligence tools might be weak is typical of Open Source implementation This is an opportunity to augment an existing environment in a cost-effective manner to build features into that environment and to get the features specifically needed without paying for a whole package that isnrsquot all necessary

In contrast with what happens in the case of most traditional models much of the time the need for Open Source applications comes from the bottom-up and is established from a point of need from a developer or a department trying to get something done There are no enterprise sales representatives making calls or going through a procurement process where vendors and financials are examined There is also the ability to put something out in real terms instead of relying on a fake proof of concept where following that proof of concept companies are forced to either pull out and throw it away or to license the software

Roadblocks to Implementing Open Source

Misconceptions still exist around Open Source based largely on the idea that these projects are being developed by teenagers in their parentsrsquo basement a myth that is more than a decade outdated as today Open Source projects are generally run by commercial Open Source providers with paid developers Still a lack of information can prove a problem for organizations introducing Open Source This often plays out in the legal department which reviews all contracts and may not be informed when it comes to Open Source software licenses An Open Source license will be missing half the standard clauses the lawyers are used to clauses of restriction that dictate how to deploy what can be deployed where it can be deployed and how the software can be used Most Open Source licenses do not have these same clauses and lawyers will want to know why theyrsquore missing That can be another road bump in getting the software acquired

Support can also be more confusing Most major projects have commercial vendor support behind them But unbundling is also available which means buyers donrsquot have to purchase support but instead can buy the subscription model that covers only bug fixes integrated patch testing and certification against databases This is because enterprise support is often overrated more often than not internal support solves more problems than the vendor does

Augmenting and bringing in new features and capabilities in areas where BI tools might be weak is typical of Open Source implementation ldquo

rdquo

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Implementing Actuatersquos BIRT Open Source Technology

BIRT Actuatersquos Open Source technology was developed with the Eclipse Foundation and does an exceptional job in meeting web-reporting requirements while utilizing the Open Source model Itrsquos a Java tool with a web-centric development and design paradigm BIRT reports are built with the intent of publishing to the web exclusively or more exclusively than is the case with other alternatives that are typically intended originally for paper BIRT is also very modular and very component based allowing users to do as much or as little as they want to deploy as much or as little as they need when theyrsquore creating their reports or embedding this technology within their environment

One of the goals of BIRT is to cater to the power that is needed for many of todayrsquos reporting projects but also to offer the simplicity that means an individual report creator can be very effective at doing their job simply by using the BIRT design tool itself That goal has proven successful so far with 65 million downloads of BIRT since the projectrsquos inception 45 million of them in 2008 alone BIRT is in fact one of the fastest growing Open Source projects on the internet right now

BIRT does a great job of supporting a wide variety of report types it supports BRD Pro BRD BRS and IV and as users

build components throughout the project they can reuse those elements in subsequent future reports It also supports standards such as HTML cascading style sheets JavaScript Java and XML adding the underpinning technologies for either customization or enhancement and allowing developers to leverage BIRT while using the skills that theyrsquove already developed As an integrated report development environment BIRT also provides graphical and robust tools for the most common reporting tasks including query building ndash such as graphical object layout ndash and representing such as charting As well BIRT includes both online help and documentation

Itrsquos an incredibly robust tool and is capable of being embedded of being delivered to small groups or across the enterprise leveraging Actuatersquos commercial platform New capabilities include the ability to add interactive Flash objects into the environment to build personalized dashboards to create ad hoc reports and to create interactive viewing Actuate also recently introduced the JavaScript API which allows users to embed approximately a dozen lines of JavaScript into any webpage and from that access any content within the Actuate environment including any BIRT report that is hosted in that environment which in turn can be delivered to any type of JavaScript-enabled browser

BIRT is built in the Eclipse Project Actuate sponsors and chairs the project management committee for the BIRT project It is Actuatersquos third reporting technology built from scratch which means there is a high degree of long-term experience integrated into the BIRT environment

How the End User Benefits From BIRT

BIRT comes complete with 65 million sets of eyes worldwide looking at it and suggesting changes That has driven its enhancement in the marketplace The overall number of committers on BIRT historically is high and the current level of committers on the project remains high itrsquos nearly the same as Apache committers in the market today

Actuate ndash in its sponsorship of BIRT ndash has added and created a community called BIRT Exchange which is a resource for the BIRT development user to continue to enhance their BIRT expertise and to continue to gain help if needed from the BIRT community No question goes unanswered on BIRT Exchange which is at odds with what people often find in other Open Source forums where a huge number of questions remain unanswered from the audience Within the BIRT Exchange environment there are three different forum administrators who make sure every single question is answered BIRT Exchange also hosts the documentation for the entire BIRT product line as well as videos and webinars designed to further the training and adoption of BIRT itself

Actuate employs more than 50 developers on the Eclipse project itself with documentation and publications available in support of the project available at amazoncom

Actuatersquos Value Add

BIRT is modern and flexible and open Since itrsquos built within the Eclipse Project anyone who knows Eclipse knows how to use it Actuate adds interactivity which take the form of Flash widgets embedded into the BIRT development environment ndash allowing users to build their own types of dashboards ndash or through interactive viewing to transform a report from being static to something an end user can manipulate and evolve over time This is important because reports typically become obsolete quickly the requirements that they originally meet changes as users use the reports to become smarter and then the questions they want answered change Which means that providing this kind of interactive content is key to the success of a Business Intelligence project

Extending BIRT Capabilities

BIRT development tools and the BIRT engine are available as Open Source and are widely distributed Typical capabilities such as JavaScript and SQL skills are required to become familiar with the BIRT product

The second level of capability is the ability to embed BIRT within applications and to begin to add degrees of interactivity to the environment such as Flash widgets or the interactive viewer This allows a user to create robust rich embedded applications

The third level is for workgroup or departmental-style applications or small organization-type applications To adopt this type of Open Source technology individuals would introduce BIRT plus the single server iServer Express a hybrid of Open Source and commercial technology

Finally there are organizations that seek enterprise-caliber or enterprise-level deployments that want to publish BIRT applications outside the firewall to secure these applications for millions of users and to support very high degrees of performance and reliability This type of scalability requires both good design and trial and error as operating systems platforms and other elements continue to evolve Maintaining best performance for very large-scale environments means making sure that each one of these items is optimized

Open Source Vs Commercial Technology

The overall platform that BIRT delivers is a complete set of both development and deployment options for creating any type of environment Users can be characterized across a number of different lines from incredibly skilled Java developers to everyday report developers from people familiar with Actuate to those who are not from power users to business users etc

There are two fundamental questions that these users need to answer

1 Is BIRT the right technology for the application theyrsquore creating

2 Whatrsquos the best way to deploy it through Open Source or through commercial deployment means

The answer to the second question is reliant on a number of variables In the following situations for example Open Source would be the ideal alternative

bull Those users who want to use BIRT for individual use

bull Those who want to embed it into their own project

bull An ISV who has the technology in their own application to support printing and baked-in reporting needs

Converting to or supporting a commercial model meanwhile occurs most frequently at the enterprise-server level for organizations deploying the environment to hundreds or thousands of users It supports a wide variety of types of users

But both the Open Source and commercial models employ a common report design format Itrsquos a progressive development experience or a collaborative report design and collaborative process allowing each user to participate in the definition and the evolution of their reporting environment while at the same time using tools that are appropriate for their skills a novice user isnrsquot being overwhelmed by too many features while the power user or the highly skilled users receive exactly the right kind of technology and level of development capabilities theyrsquore accustomed to

Yet some of the decision-making criteria lean more effectively towards a do-it-yourself situation using the Open Source type

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of model and some lean more appropriately to a commercial investment and a commercial tool A growing level of complexity often drives commercial interest but certain complex functionalities ndash including supporting web services or web services SQL or other examples of integration techniques ndash the Open Source model is more than capable of supporting on its own

The applications Actuate deploys are information applications When choosing the paths of how to proceed ndash with regards to choosing either the Open Source or commercial interest ndash there are typically four premises to consider in an information application

1 Is the report or the application able to consume and collect data from one or many sources whether itrsquos a single report or a complex application Typically when the data sources are simple and the data connections well understood either Open Source or commercial interests are appropriate With meta-data layers and extraction layers the commercial model tends to be more effective But if itrsquos an embedded project using POJOs or other Open Source or specialty connectors ndash unique connectors ndash that often keeps a project more suited for an Open Source deployment

2 How is it able to aggregate and transform that data into meaningful information Looking at aggregation the same premise holds true if therersquos simple aggregate functions or automatic cross tabs or even custom or reuseable business functions both the Open Source and commercial models are appropriate In terms of embedded Java functions those aggregations are appropriate in either case Itrsquos when entering into areas of security ndash of parameter-driven values dynamic-parameter collection cascading menus etc ndash that a commercial purchase tends to excel over the Open Source version

3 What are the presentation options or formats available to present that data When the presentationrsquos fairly simple both Open Source and commercial apply When

charting cross tabs and embedded graphics are the norm then the two are served both in Open Source or commercial interests When JavaScript is starting to be used as a customization or a dynamic-properties delivery vehicle both the Open Source and commercial models are effective although keeping this content embedded within an environment is probably more appropriate using Open Source Itrsquos only when introducing elements such as interactive viewing capability or the ability to manage an environment through a management console capability that the commercial option begins to edge out

4 Are we able to achieve the levels of scale that we need to get that information out to every user whorsquos interested in it When individual use is appropriate Open Source is a better fit When transient content is what a company is delivering thatrsquos usually a better fit with Open Source as well as is embedding To support a collaborative reporting effect or to support a variety of developers and users ndash especially users with different skills ndash the shift begins to move towards a commercial style of delivery When therersquos custom delivery required such as JavaScript API the commercial environment is also more appropriate

These are the capabilities of different deployment options for both the Open Source platform as well as the Actuate commercial platform geared towards allowing organizations to get the value that they most see fit within their environment or their application Typically for environments that have a heavy requirement for infrastructure thatrsquos what drives the commercial purchase whereas customization or individual interests typically drive Open Source

The key thing for any organization is to first decide what kind of reporting technology they need ndash whether it be Open Source or commercial ndash and then to look at their own needs And finally consider the BIRT environment as a vehicle that meets web reporting needs

For more information on BIRT visit actuatecom

A growing level of complexity often drives commercial interest but certain complex functionalities ndash including supporting web service or web service SQL or other examples of integration techniques ndash the Open Source model is more than capable of supporting on its own

ldquordquo

One of the benefits of Actuatersquos Business Intelligence Reporting Tools (BIRT) is that very capability for flexible functionality thatrsquos adjustable to usersrsquo needs Every component of the BIRT technology ndash whether in the Open Source or commercial versions ndash builds upon the components before it creating a robust and flexible system designed to meet each organizationrsquos unique Business Intelligence needs

Choose the Right Graphical ToolThe first step towards evolving organizational Business Intelligence is choosing the right graphical tool The Eclipse BIRT technology for one is a visual designer thatrsquos geared at report developers as well as JavaScript and Java developers and can create a wide range of reporting technologies and web reports BIRT builds content that is specifically intended for the web and uses techniques that are expected when building web pages and web content It doesnrsquot use a banded report writer design or development metaphor typical of many older report-authoring products including Crystal Reports or Jasper

BIRT is the third from-scratch product that Actuate has sponsored and developed and as such it takes into account more modern capabilities and techniques for developing web content In building BIRT Actuate has drawn from its extensive market knowledge borrowing best concepts from other products as well as from its own Reusability and the ability to include programmability within the environment have been traditional Actuate capabilities that have been included in BIRT but BIRT technology also uses de-facto standard programming capabilities such as embedding JavaScript and Java into the application rather than using a proprietary language

Open Source is the core reporting capability and value-added commercial products can be added to it More than 50 developers are employed by Actuate on the BIRT Open Source project similar to the number of developers Apache has applied to the Apache project Alongside these Open Source developers are Actuate developers working on the commercial product of BIRT

Open Source BI

Cost-Effectively Deploying

When deploying Open Source Business Intelligence technologies multi-layered functionality that can be added as needed serves to create a cost-effective way to build a solution specific to an organizationrsquos needs Each function acts as a building block as a company creates exactly the capabilities necessary for the job on hand without wasting money and resources on items that arenrsquot needed

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Another benefit of BIRT is the BIRT Exchange community Actuatersquos user forum which is far more robust and extensive with documentation and help information than has been found traditionally Nearly every forum post has an answer to it in some form which is not likely to be experienced with any other Open Source project or forum-based community Meanwhile the community itself is vast and growing rapidly Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate ndash where a developer may have downloaded 20 copies over its history ndash adds up to 350000 different users of BIRT technology That number is growing at roughly double the rate of the other two most popular Open Source projects

Add Value Through Features

Actuate BIRT technology has a range of features that will add value to a companyrsquos BI project

1 In addition to being a graphical report design tool BIRT takes into account the long-standing tradition of Actuate to support reuse libraries and reusability across the entire environment It is able to not only reuse BIRT objects and BIRT components ndash such as charts and tables ndash but also to incorporate and use JavaScript objects and Java libraries in the reports themselves This creates a rich experience for driving and building web-oriented reports

2 BIRT offers navigability While a user is in a graphical design tool they should be able to take advantage of some of the core capabilities that the technology offers such as a visual hyperlink builder that keeps information in context as well as the ability to create cross tabs dashboards and charting mechanisms that are active and navigable Inserting type of content ndash so that it is both consumable and scoped in context for the user ndash is important to the success of deployment Hyperlinking in context is one of the key elements to supporting Open Source deployments

3 The Eclipse BIRT environment supports a variety of graphical types or charting types including not only grids and tables but both static and dynamic images as well that can be linked back to databases or can support conditional formatting and a variety of conditions baked into the report BIRT is able to handle a large variety of chart types and styles allowing organizations to convey exactly what theyrsquore trying to deliver to their users Supporting rich charting is one of BIRTrsquos key core capabilities

4 The Open Source Eclipse engine can be embedded into or deployed from an application quickly within a JVM Users can add content generation or report generation functionality easily and quickly to their application by inserting it into their run time The BIRT engine itself is a key component in the Eclipse BIRT project It has a variety of extension points built into it which means itrsquos able to not only generate supported output types ndash such as HTML or Adobe PDF ndash but can also create custom emissions from a BIRT report such as an emitter for mobile content or an emitter for a particular report format of the userrsquos own perhaps to feed another application With a robust API structure within the Eclipse BIRT engine these are all possible

Build On Interactivity for a Richer Experience

Building onto that BIRT experience organizations can add more interactive and visual elements to create more appeal within their BI projects

Animated Flash Visuals Animated Flash visuals built into BIRT reports lend to a richer more enjoyable experience for end users They can take advantage of the navigation enhanced with the visual and animated appeal that Adobe Flash offers

The Actuate BIRT development tools include 266 Flash widgets This is one feature that differentiates BIRT Open Source with the BIRT commercial product Those who purchase the development tools from Actuate will immediately receive these Flash objects that can be deployed not only within Actuate BIRT reports but within Eclipse BIRT reports as well they are portable across both environments

Interactive Viewing Often users have a difficult time articulating their requirements to report authors That problem is alleviated when authors can deliver them an interactive viewing experience allowing the report to become changeable and adjustable by the user The user can select a particular column and can apply a filter to that column they can toggle back and forth between viewing perspectives rotate charts change the grouping of a report or add more visualization to it with something such as conditional formatting They could even navigate within the report using a joystick or deploy that report or portlet content anywhere they want And ultimately they could drag and drop and change ndash or add columns to the report directly ndash by manipulating the report as needed

This interactivity gives the end user the ability to enjoy more freedom with regards to how they use the report It also

addresses one of the biggest conundrums with regards to report delivery giving users a report provides them with content that makes them smarter and as they get smarter they take that information and they work it into their knowledge which in turn changes the questions that they ask of the report This means that what they need from a report changes over time Allowing users to modify reports themselves is a key goal in supporting BI processes because as users become smarter about what theyrsquore doing with their content they can help assist in defining what the next iterations of their web content might be

Choose the RIght Server to Store and Schedule Content

Actuate has spent the last 15 years developing the Actuate iServer It comes in two styles ndash iServer Enterprise and iServer Express ndash and offers a robust environment for creating managing and delivering BIRT report content to users on schedule on demand or on an ad-hoc basis directly

The iServer Express is a single-server deployment that is appropriate in scenarios where there is less active usage it supports a sequential batch generation capability and roughly 10 user connections per second as the users connect to the server It offers that scheduling and deployment capability at a very cost-effective price point while allowing organizations to secure their report content using the iServer repository to take advantage of some of the presentation layer capabilities that Actuate offers through its information console to present and manage that content on behalf of the users and ultimately to create a full reporting experience for users directly

Alternatively for those deploying a very large system ndash perhaps one that operates outside of the firewall in a traditional web information application ndash there is the iServer Enterprise The iServer Enterprise is massively scaleable but also very predictably scaleable as companies double the resources that they can apply to their environment they double the throughput and user numbers that theyrsquore able to support with the iServer It is also highly configurable in regards to how content is deployed and supports multi-tenet environments or multiple application environments In addition it can be componentized so that a presentation layer can be separated from a content creation layer or a business logic layer from a data management layer ndash including the meta-data layer itself ndash to help abstract and manage the queries driven

Determine Where Content Can Be Distributed

Actuate JavaScript API is a mechanism that allows the user to take a JavaScript library embed it into any HTML page and then from that JavaScript library securely access Actuate content from the iServer This particular capability allows the user to put either a report part ndash a reportlet ndash or an entire report directly into new locations This could be used as a user attraction vehicle it could be used as a dashboarding vehicle or it could be an integration point for systems that are written in NET rather than in the j2e environments that BIRT typically supports

Deliver Mash-Up Applications

Delivering mash-up applications using all of the functionalities listed above is simple in the BIRT technology and lets users themselves participate in the definition saving creation and management of their own dashboard displays and it allows them to watch exactly the KPIs that they care about

This is done through Actuatersquos Mashboard Customization to the Information Console which allows users to take any BIRT report content and to deploy it directly into a mash-up style environment where they can define exactly what pieces of content go into their application and what doesnrsquot These dashboards can also be roll-based so that particular pieces of content can be deployed to particular types of users directly then if they want to continue to customize that capability theyrsquore able to do so

Conclusion

Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques such as Flash and Ajax in a web-based design metaphor It is designed to evolve effectively over time and is meant to give organizations a choice for every type of user The first decision point of any organization is to recognize whether or not BIRT is the right reporting technology for the information application in question Once thatrsquos decided companies must choose the technologies they want to offer each type of user and then consider how they want to deploy those technologies directly

A wide variety of capabilities can be build into the BIRT environment ranging from Open Source to commercial Actuate products It is a flexible environment and is robust for delivering to users any type of information-driven web content

Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate adds up to 350000 different users of BIRT technology ldquo

rdquo Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques ldquo

rdquo

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The Challenge

Guiding a ship requires visibility into navigation operational performance and up-to-date information to make decisions This type of customer challenge drove ABS Nautical Systems

to incorporate Actuatersquos BIRT technology into its NS5 fleet management software

A leading software provider to the maritime industry ABS and its NS5 modular ERP system help customers manage principal operating expenses associated with vessels and offshore rigs ABS provided basic scheduled reporting and offered ad hoc reports in response to specific customer requests but customers demanded better functionality including the ability to easily extract and create both standard and custom reports

Producing reports to customersrsquo satisfaction took time as reporting was not central to ABS Nautical Systemsrsquo expertise Further it took valuable programmer time away from developing new features and functions for its core product This created the need for ABS to leverage a tool to provide highly-developed rich information application functionality increasing the power of its fleet management software while enabling its customers to access more flexible reporting tools

The Solution

With its own expertise in Java development and their existing reporting ABS searched for an Open Source reporting platformtool that they could leverage and seamlessly embed in their software ndash one that would deliver for ABS and their customers both immediately and for future expansion After considering Jaspersoft Actuate and Pentaho ABS selected Actuate and BIRT for their on-demand reporting solution

ldquoActuate has a clear roadmap and direction scalable platform financial stability and Open Source development platform The Actuate offering was an excellent fit because the technology

ABS Nautical Systems (NS) is one of the leading providers of fleet management software packages available to the

marine and offshore industries It offers a fully integrated modular approach to managing the principal operational expenses associated with a vessel or offshore rig ranging from maintenance and repair to regulatory requirements purchasing and inventory and crew management and payroll

SAFE AT SEAABS Nautical Systems A Case Study

ldquoBoth the technology roadmap and scaling are key It was an excellent fit for us actually ndash you had the right technology yoursquore Open Source based BIRT technology was key and you were the most helpful in helping us do the prototyperdquo

- Sandipan Bhattacharya ABS Nautical Systems

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Vol 6 Issue 2 2009

used Open Source BIRT allowing us great flexibility in developing NS5 Actuate was most supportive in helping ABS NS do the prototype ndash both their Professional Services as well as the account teamrdquo states Sandipan Bhattacharya CTO for ABS NS

The new BIRT-based on-demand reporting tool within ABS NS5 is a web-based application that enables clients to quickly and easily generate custom reports from any NS5 module It handles reporting for the central elements of operational management ndash from regulatory requirements to payroll to planned maintenance programs But it takes NS5 beyond operational duties to consolidate data from across software modules to better monitor key performance indicators (KPIs) such as time to repair spare parts turnover and purchasing cycle times

The interactive information views that BIRT provides help fleet managers to achieve maximum efficiency empowering NS5 software users to get what they want in terms of the reports they need in the way they want them as each department or company may want to look at data in a different way Lastly that same data is more accurate because it comes as near real-time information at the time they need and can be benchmarked against how well they are performing to provide trends for evaluation

BenefitsResults

bull Speed time to market with new features by focusing on core competence in its software platform This allows ABS to focus development on its core product and improve customer satisfaction by rolling out and providing complete reporting modules This also helps decrease development expenses and support costs

bull Expand available market with completely new product lines enabling ABS to increase its client base to companies that didnrsquot know about them or had previously disregarded their offering The additional modules make the product more attractive to existing clients creating additional revenue sources for ABS

ldquoThe BIRT Open Source platform allows for a great deal of flexibility in the development stages Additionally the ease of integration into our OEM package was a great benefit Lastly the Actuate and BIRT offering has proved to be well suited to ABS Nautical Systemsrsquo needs and Actuatersquos roadmap shows what we can do in the futurerdquo states Bhattacharya

Self-serve customization drives flexibility and ease of creating reports BIRT empowers users to produce reports customized to their individual and departmental needs and preferences And as government reporting requirements change they can

Solution OverviewCompany Profile Integrated fleet management software for marine industries

Industry Software

Location Houston with offices worldwide

Challenges

bull Customer need for better more timely reports

bull Enable customers to self-serve for ad hoc needs and regulatory requirements

bull Focus on core software expertise and feature requests

Solution Integrate Actuatersquos Open Source-based BIRT reporting with ABSrsquo NS5 fleet management software

Business Benefits

bull Faster time to market broadened portfolio

bull Ease of integration development flexibility

bull Increased visibility into operations aids customer competitiveness efficiency

bull Users empowered to customize reports

Does your companyrsquos mission and vision statement place the customer at the center of your universe

Does it promise to maximize customer value and deliver the best customer experience possible If it does your mission and vision statement is surprisingly similar to nearly every other organization And much like them chances are your organization is struggling to make this vision a reality to actually reinvent itself as truly customer-centric

ldquoCustomer-centricrdquo has become the new buzz phrase thrown about at most executive planning sessions and has replaced ldquoinnovativerdquo as the new mandatory strategic language The truth is it takes a lot more to become customer-centric than changing the company vision ndash it requires a departure from years of tradition a clear look at who and what your organization is and a deeper understanding of what motivates your customers to buy from you or from your competitor Fortunately the cost to make this change is surprisingly low while the benefits and the returns can be shockingly high

Finding Your Customer

Customer-centric implies that the customer is central to the organization but this is too esoteric to have any real meaning An organization turns materials into a product or service which is then sold Everything the organization does must lead to this

event (with no sale after all therersquos no customer) This logic works for most people and most organizations and it logically follows that the focus should be upon the creation of the best possible product or service because this is what causes a prospect to become an actual customer

This logic fits nicely with traditional thinking It was popularized by Michael Porterrsquos value chain approach in the mid-80s The value chain is a string of critical processes that begins with raw materials or inputs and ends with a product or service delivered to a happy customer Thinking this way makes sense because it is easy to place the customer at the end of the process But this mind-set doesnrsquot just affect how executives structure the organization it weaves its way into every aspect of how the organization manages itself and how managers make decisions

For example the finance department performs the close process each month so that it can deliver financial information to managers with actual bottom-line responsibility These managers from executives to cost center managers are financersquos customers just as shareholders are when they deliver quarterly reports Once these reports are delivered finance goes back to the business of accounting and managing revenue and expense until the next month Engineers work to design new products that will keep them one step ahead of their competition Manufacturing produces goods to meet customer

respond more quickly adapting them by themselves instead of depending on ABS to supply reports

ldquoActuate empowers users to get exactly the reports they need the way they want them Empowerment is key as well as flexibility as each department or company may want to look at data in a different wayrdquo states Bhattacharya

Rich information drives efficiency through increased visibility and better insight into operations improving customer competitiveness With highly accurate real-time information on how well they are performing management can control both overall and specific costs of operating and maintaining their shipping fleets ldquoThey donrsquot have to wait hellip they can see all contributing factors day to day It helps improve efficiency at every level For the first time a shiprsquos captain can have insight into the operational performance of his ship while still at seardquo says Bhattacharya

Creating the Customer-Centric

OrganizationFinding Your Customer-Critical Path

By David F GiannettoCEO

The Telos Group

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33

Vol 6 Issue 2 2009

orders or demand projections The sales department courts potential buyers so that they become actual customers Once they do so sales then returns to identify new targets and tries to transition them Manufacturing works to refill shelves Engineering continues developing products

Employees throughout the organization are focused upon delivering the product or service for which they are responsible The product attributes become the value proposition that will appeal to their customer regardless of whether or not this is an internal or external customer Employees are trained to think in terms of product development delivery and value The organization becomes even if it doesnrsquot know it product centric Believing that a mainstream management theory such as the value chain approach could not be wrong or outdated management is comfortable with this view of their world When they try to become customer-centric they do not know how

Making the Change

Consider for example the electricity powering the light by which you are reading this article It is a fairly simple product that was mainstreamed decades ago and except for new types of power generation it has remained essentially unchanged The traditional value chain for this industry is fairly straightforward Power is generated by a complex and often dangerous power plant and it is delivered to the customer via a complicated and often dangerous network The customer then consumes this power and must pay for it creating the

need for back-office operations such as accounting finance and customer service

Given the complexity of power generation and delivery operations the organization is staffed by a high percentage of engineers many with doctorate degrees and years of specialized training The generation and delivery assets themselves are maintained by highly-trained highly-specialized workers A large percentage of the management team also comes from this background and rose through the ranks of organizations identically structured Combined these employees represent over 75 percent of the organization

Collectively these employees create a culture that is consistent in almost every power utility in the world Their cultures respect academic achievement technical expertise and years of experience in the industry They typically believe in rigid structures inflexible procedures and consistency in design and execution They are truly product focused

Given the potential hazards it is easy to see why they behave the way they do But what happens when this type of organization has to compete in a more open market when transparency is increased or when the customer such as a municipality has a stronger voice or is under the growing influence of being green What happens when the power company must become truly customer-centric

It is nearly impossible for them to succeed Seventy-five percent of the organization has little to do with or has little understanding of the customer

Departing from Tradition

While this product focus is exaggerated within a power utility largely because of their technical nature these factors affect nearly every organization Employees who have great influence within the organization will not yield it to those who have less but who understand the customer better Funding is unlikely to shift from traditionally respected areas to those areas that most affect the customer

For a power utility this means that engineers who have often dedicated their entire lives to the study of their work must be considered equal to project managers and customer service agents most of who do not hold any degrees Money resources and staffing must focus on project management and call center technology not just on million- or billion-dollar assets There must be recognition that these areas equally affect the customer This new perspective must be executed by executives who have spent their entire careers adhering to the traditional values of the product-centric culture But this shift is what customer-centric really means truly understanding and meeting your customersrsquo needs It starts with the customer more specifically it starts with a prospect

Customer-Critical Path

This means that the traditional value chain must be rethought and renamed more appropriately to the customer-critical path A prospect travels this path on their journey to become a customer a customer travels this path toward the goal of becoming a happy customer This is the true value chain of the organization ndash a string of processes that become critical because they directly affect your customer regardless of the product service organizational chart academic degree or bias Find the customer-critical path and you can guide your customers through your organization in the way that is most meaningful to both them and you

But not all customer needs are the same even within an industry that has only one real product like a power utility The customer-critical path may start in several places meeting the needs of

several different types of customers ndash household customers that simply need power turned on or major projects that require significant project management and pre-planning Eventually these starting paths merge It will occur at the point at which all customers are happy From there they may take a different path

again some will terminate service or have new needs There is not one value chain there are many paths a customer might travel through your organization

This new approach offers significant value for organizations that adopt it It allows them to better understand their customers so that they can be more effectively segmented and targeted by products or services This drives the bottom line in several ways A stronger value proposition increases appeal thus driving revenue Better service and customer interaction improve the customer experience and increase customer loyalty driving customer lifetime value

The customer-critical path also becomes a vital decision-making tool for management It provides a clear and unbiased perspective on where resources should and should not be spent It defines the relative worth of projects assets and expenditures painting a clear picture of what the results will be if the customer-critical path is not

properly maintained

And if your mission and vision statement says you are customer-centric it makes your strategic plan more than simple semantics It makes it actionable setting your organization on a path towards true differentiation and market leadership Properly crafted the customer-critical path becomes a pleasant stroll through the park for your customers and it can also become the most profitable path for your organization

David F Giannetto is CEO of The Telos Group co-author of The Performance Power Grid The Proven Method to Create and Sustain Superior

Organizational Performance (J Wiley amp Sons 2006) and a professor in the Executive MBA program of Rutgers University

Mr Giannetto can be reached by email at dgiannettotelosconsultingcom

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Vol 6 Issue 2 2009

I Introduction and Background

Who the NMDP is

The National Marrow Donor Programreg (NMDP) and Be The Match FoundationSM are non-profit organizations dedicated to creating an opportunity for all patients to receive the bone marrow or umbilical cord blood transplant they need when they need it Every year thousands of people of

all ages are diagnosed with leukemia and other life-threatening diseases Many of them will die unless they get a bone marrow or cord blood transplant from a matching donor Seventy percent of people do not have a matching donor in their family and depend on the Be The Match RegistrySM to find a match to save their life

The Beginning

When their 10-year-old daughter Laura was diagnosed with leukemia Robert Graves DVM and his wife Sherry were ready to do anything they could to save her They agreed to try a bone marrow transplant from an unrelated donor ndash the first ever for a leukemia patient Laura received her transplant in 1979 at the Fred Hutchinson Cancer Research Center The treatment gave her an extra year and a half of life

The National Bone Marrow

Donor Program

The Balanced ScorecardVision into

Action JourneyBy Howard Rohm

President amp CEO Balanced Scorecard Institute under the guidance of The National Marrow Donation

Programrsquos Michael Boo Chief Strategy Officerand John Rudrud Senior Analyst

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Vol 6 Issue 2 2009

The experience inspired Dr Graves to create a national registry of volunteers willing to donate marrow His early efforts brought together other patient families and transplant doctors spurring a federal mandate that led to the creation of the National Marrow Donor Program NMDP began connecting patients with unrelated donors in 1987 with a registry of just 10000 volunteers

What the NMDP Does

The Be The Match Registry has grown to more than seven million donors and over 150000 cord blood units the largest and most racially and ethnically diverse registry of its kind in the world Medical advances are making marrow and umbilical cord blood transplants available to more patients all the time Since 1987 NMDP has arranged for more than 35000 transplants to give patients a second chance at life Today NMDP facilitates more than 4300 transplants a year

Planning for the Future

Many more patients still need help In order to meet the needs of all patients NMDP will need to facilitate 10000 transplants per year by 2015 That is more than double the number of transplants the organization facilitates today NMDP is working to meet this need but canrsquot do it alone Efforts are sustained by

bull A global network of more than 490 leading hospitals blood centers cord blood banks and laboratories

bull Agreements with donor centers cooperative donor registries and cord blood banks worldwide through which the program provides patients access to more than 12 million donors and 300000 cord blood units

bull Continued support from the US government which has entrusted the NMDP to operate the CW Bill Young Cell Transplantation Program the federal program supporting bone marrow and cord blood donation and transplantation

bull Partnerships with corporations service organizations student groups faith-based communities and other organizations

A new and different way of thinking about the NMDPrsquos long-term strategy was required in order to make sure that NMDP would be capable of delivering 10000 transplants per year in 2015 ldquoBusiness as usualrdquo would not get the organization where it needed to be NMDP needed to identify and

aggressively improve in strategic areas critical to the delivery of 10000 transplants

II The Balanced Scorecard Approach

Background

The strategic planning system that had been used at NMDP up to 2007 was a fairly well-developed planning process that tracked initiative performance under seven primary areas of strategic focus While this approach provided a measure of strategic planning for the organization it was too focused on activities and projects rather than on impacts

Early in 2007 NMDP leaders Gordon Bryan Chief Financial Officer and Michael Boo Chief Strategy Officer began developing strategic metrics designed to identify measure and communicate progress in strategic plan objective areas

Selection

As the senior management team evaluated options to integrate broader strategic metrics with the existing strategic business plan the Balanced Scorecard approach emerged as a leading candidate during the initial assessment of planning models because it

bullEncourages development of strategic themes and provides the ability to focus on areas where long-term continuous improvement is needed

bullPermits identification of cause-and-effect relationships between Strategic Objectives within each Theme

bull Facilitates communication of Strategic Objectives that can be portrayed on a strategy map that is easily understood by all employees and stakeholders and shows how the perspectives work together to achieve the mission

bull Assures that the organization focuses on Strategic Objectives and Measures from a CustomerStakeholder perspective and a PeopleKnowledgeTechnology perspective (Historically the organizationrsquos focus was skewed toward the Process and Financial perspectives)

bull Enables leadership to track Strategic Objective performance over the long term rather than tracking the status of supporting projects and initiatives

bull Creates a framework for prioritization of projects initiatives and funding opportunities based on contribution to and support of the Strategic Objectives

bull Allows organizational Strategic Objectives to be cascaded into Department Objectives thereby giving each employee

a more specific understanding of how his or her work impacts and contributes to the Strategic Objectives

bull Drives long-term continuous improvement as Strategic Measures improve over time

bull Facilitates a ldquolearning organizationrdquo where corrective actions are implemented in cases where Strategic or Department Objective Measures are not being met

The NMDP planning team looked at a number of planning models ndash including Balanced Scorecard Six Sigma Lean and TQM ndash and concluded that the Balanced Scorecard approach provided the most versatile and relevant framework for future growth and organizational development

III Scorecard Development ndash NMDP Officer Input

Early to mid 2007 NMDP began the Balanced Scorecard development effort with the help of consultants from the Balanced Scorecard Institute

A comprehensive review of the organizationrsquos strengths weaknesses opportunities and threats organizational pains organization enablers vision and mission was conducted over several days with NMDP officers and senior management These sessions produced a new Mission and Vision Statement and four Strategic Themes (rather than the original seven)

The former mission statement Extend and improve life through innovative cellular transplant therapies was changed to We save lives through cellular transplantation ndash science service and support

ldquoThis new mission statement captures and communicates more directly why we exist and it clearly articulates the three ways that we are able to save livesrdquo explained NMDP CEO Dr Jeffrey Chell

The Overarching Strategic Result in place of a vision statement was developed and shared with employees throughout the organization Meeting the need for 10000 transplants per year by 2015 The senior management team developed a longer more descriptive version of this statement but felt that the shorter version had more impact

ldquoWersquove found that the Overarching Strategic Result has been a great tool to get people thinking about how we will manage

to do more than double our current transplant volumes in a relatively short time ndash just five years from nowrdquo explained initiative sponsor Michael Boo ldquoThis has driven a lot of creative thinking around how to dramatically improve the efficiencies and cost effectiveness of many internal systems and delivery processesrdquo

The four Strategic themes that the NMDP officer group developed and agreed upon are

bull Global Access and Acceptance ndash Getting to Yes Overcome non-cell source barriers to transplant (eg no insurance no transportation no post-transplant support)

bull Deliver Excellent Stakeholder Experience Overcome Cell Source Barriers (making sure a cell source donation is available when itrsquos needed ndash adult or cord)

bull Research Pursue research to improve cell transplantation as a therapy

bull Culture of Excellence Keep up-to-date with talent structure and resources needed to continually improve transplant services

IV Scorecard Development ndash Senior Management

Throughout the spring and summer of 2007 four Theme Teams comprised of senior management met to develop

Theme Team strategy maps that included Theme Objectives by Perspective and proposed Measures for each Theme Objective These served as detailed roadmaps with specific objective areas identified ndash where NMDP needed to focus in order to improve them

The four Theme Team maps were subsequently

combined into an NMDP Strategy Map that included all relevant components from each theme This NMDP Strategy Map is comprised of 13 Strategic Objectives 46 Strategic Measures and seven Strategic Initiatives

Narratives were captured regarding the intent and ultimate end state for each Strategic Objective and detailed descriptions were created for measurement information including rational frequency owner and unit of measure

At this stage in the process the team named the Balanced Scorecard tool ldquoVision into Actionrdquo or ViA ndash NMDPrsquos strategic Performance Management tool On June 1 2007 the ViA Themes and NMDP Strategy Map details were presented to the board of directors by senior management and approved along with a plan to proceed to the next phase of department cascading

A ViA Communications Team was formed to communicate ViA progress to employees on the development of the new Mission Statement Vision Statement and the 13 Strategic Objectives This was done through a combination of pulse checks newsletters

38

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Vol 6 Issue 2 2009

intranet messaging e-mails from the CEO leadership training all-staff meetings and promotional contests This was an extremely integral step in the ViA roll-out that provided transparency and generated excitement around the benefits of ViA

V ViA Department Cascading

All departments at the NMDP were scheduled for sessions to develop their department Objectives Measures and Initiatives These were facilitated by internal subject matter experts and included an initial two-day exercise to help the department identify where and how each department contributed to the NMDP Strategic Objectives Worksheets and other preparation material were provided to each participant and collected prior to the cascade session The pre-work information was used to expedite the affinity exercises at each session

These were followed up with sessions to finalize detailed measures with individual measure owners Department teams were comprised of five to 10 key members of each department

The department cascading efforts provided a number of primary benefits to the organization including

bull The articulation in easy-to-understand terms of how each department contributes to the overall success of the Strategic Objectives and ultimately the NMDP Mission

bull A tool to identify gaps or overlaps between departments that can also be a tool for departments to communicate with each other in terms of supporting initiatives

bull A tool for each department to prioritize initiatives and activities Also it provided a mechanism to support requests for funding new opportunities

bull A clear framework for corrective action where measures are not being successfully met

bull A common format and mechanism for reporting department performance to officers and senior management

bull A common format and mechanism for reporting and reviewing department performance with staff

bull Help with the development of individual job performance appraisal content ndash which should be designed to support Department Objectives

Department Cascading was complete in early 2009 There are over 200 separate department measures that are tracked each quarter

VI NMDP ViA Today

NMDP has established a department Champions Council Members of the Council are becoming experts at using the automated ViA software Today this is being used at department staff meetings to facilitate discussion around corrective action for underperforming or unacceptable Department Measures Departments use the department Strategy Maps to guide staff meeting discussions on performance measures and corrective action plans

ldquoAll business cases or requests for funding must be submitted with clear tangible descriptions of how the effort will impact ViA Strategic Objectivesrdquo explained Boo ldquoOnce all business cases have been submitted to the officer group for final approval they are prioritized in order of their impact on ViA Strategic Objectivesrdquo

All strategic and department measures are required to be reported into the ViA system each quarter Each is color coded based on an officer-approved target matrix Each measure owner is required to provide comments regarding the measure performance for the quarter and discuss how he or she expects the measure to end the fiscal year This information is shared with senior management for review and follow-up with measure owners ifwhen necessary

Senior management uses the color-coded NMDP Strategic Map as a basis for discussing quarterly performance and identifying

Strategic Objective areas that may need attention corrective action andor more resources NMDP tries to focus not only on corrective action items but also highlight success stories where outstanding performance has been reported

All employees will soon have access to the web-based ViA application to provide as much transparency and visibility as possible in order to become a truly strategy-focused organization

ldquoVision into Action has been successful within the organization to a great extent because of the consistent support and guidance provided by NMDP leadership including our CEO Dr Jeffrey Chell my fellow Officers and the Board of Directorsrdquo said Boo

Howard Rohm President and CEO of the Balanced Scorecard Institute is a Performance Management trainer consultant and technologist with over 40 years experience Mr Rohm has helped dozens of organizations worldwide build Balanced Scorecard and other performance planning and management systems

48

Pe

rform

Mag

azine

Info

rmatio

n in

Actio

n

A community for BIRT users and developers sponsored by Actuate

A Report Writing Portal lets your end users browse reports modify them and even develop

new ones You can set one up in three steps when you use AJAX-based BIRT technology

Because the end user tools to modify and create reports are AJAX-based therersquos no desktop

software to install Users get the reports they need quicker while the burden on development

resources to create new reports is reduced

BIRT Exchange is a community site that offers the broadest collection of resources for the Eclipse BIRT (Business Intelligence

and Reporting Tools) project and for integrating spreadsheets with Java The site is sponsored by Actuate a co-leader of the BIRT project

Sponsored by

See a Demo

at Booth

602

For More Information

Contact us by phone at 1-800-884-8665

1-913-851-5300 from outside of the United States

wwwbirt-exchangecom wwwactuatecom

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Vol 6 Issue 2 2009

JCIrsquos previous approach of one-off negotiating as well as its spirit of continuous improvement and customer focus meant that it had only one-off measures in every location The company for example had 127 variations of the measure lsquomaintenance managementrsquo Many were very similar but since they were not exactly the same they could not be compared effectively Inefficiency at gathering and maintaining data at different locations across the globe made the task difficult as well Data was collected any way possible thrown into a cell or a Power Point slide and handed in at the end of the month It was highly inefficient extremely customized at every location and did not allow any ability to benchmark compare or look at best practices These concerns and requirements drove JCI on its scorecarding journey

The Solution

In initiating its scorecarding solution JCI first had to establish the right measures Business leaders were chosen for all of the scorecard categories and for each of them a business owner was selected for each region these business leaders and owners were responsible for defining the standards and measures Data collection systems in some cases proved difficult there wasnrsquot always centralized information available ndash in some cases data needed to be gathered right down at the account level This meant that the process of data collection and identifying measures was a significant job To get started though JCIrsquos web programmers were able to put up some scorecards quickly to allow the company to start architecting measures this allowed business leaders across the globe to start identifying their measures and to put the processes in place regionally to collect information

Before committing to a technology JCI wanted to know 100 percent of their business requirements and this was the point of their web-based scorecard To assist in this endeavor Actuate ndash prior to selection ndash let the company test drive their product The JCI team went through and looked at every single screen determining where they had to configure the tool and for every single screen they also made what they called a lsquoblueprintrsquo creating an Excel template with fields to correspond with every field on each screen It was incredibly detailed work but they wanted to ensure no mistakes were made and that the business requirements were defined To accomplish this there was an extreme amount of detailed coordination globally with twice-weekly meetings for the worldwide team in charge of the initiative A byproduct of the process was that the team learned to use the Actuate BIRT Performance Scorecard and basically built all of the blueprints for the project design

JCIrsquos audience for the project upon kick off were the 300 external customers that would have access to this information Customers previous to this were getting their information via Excel and PowerPoint In addition to these external customers was the population of approximately 1000 internal users within JCI itself These included account leaders and functional leaders including those from HR Finance Safety etc

Three primary functions of the project were

1 To replace the PowerPoint slides used in global and regional monthly internal operational reviews

2 To very quickly be able to become best in class JCI wanted everyone who had an account to be able to see where they sat compared to their peers This provided individuals ndash when faced with a problem ndash the ability to quickly identify and contact others who had solved the same issue

3 To standardize customer faith in contractually required performance measures This was a key goal of the company which felt that if they were going to benchmark and compare they needed to bring in the best practices learned at one location to their work at other locations

These three primary functions were heavily loaded in JCIrsquos rating system as the company set out to choose the right software for their scorecarding project It was also important that the software be intuitive as there was no time for hundreds of hours of global-wide training The software had to be rapid and easily configurable with limited IT assistance As JCI is a very large organization with a lot of systems in place the team in charge also wanted the software to be easily adjustable to the companyrsquos rapidly changing business they didnrsquot want to have to get into queue for IT every time a change had to be introduced or a new customer added

JCI Chooses ActuateFour vendors were evaluated for JCIrsquos scorecarding project with a global team in place to provide a systematic discussion of the defined business process and requirements The product chosen was the BIRT Performance Scorecard JCI had 30 days of Actuate Professional Services and planned for monthly micro improvements and quarterly macro improvements

Upon purchasing the BIRT Scorecard in January 2007 using the blueprints theyrsquod established already the company wrote their business processes They were able to go live in 90 days helped by the homework they did with the blueprints the web scorecard and the data collection processes It was an incredibly smooth implementation overall

The Results

Whereas JCI originally started out with a model of one-off negotiations with customer measures the scorecarding project has led to approximately 70 percent agreement on JCI standard metrics The company does a customer satisfaction survey both annually and quarterly and aims to demonstrate evidence towards continual improvement

Since implementation of the project the company has also been solving its data integrity issues Previously two regions might have been using the same words but not the same data collection methods ndash this made it impossible to introduce benchmarking and comparison between areas Now those problems are being solved and benchmarking and comparison are possible to the benefit of both JCI as it strives for best-in-class status and its customers

By David F GiannettoCEOThe Telos Group

Johnson Controls Incorporated (JCI) is a $38 billion company with a total of 140000 employees working out of more than 1300 locations in 125 countries worldwide Headquartered in Milwaukee Wisconsin the company provides a range of services including

real-estate portfolio management property management facility management and design and construction services

To initiate its scorecarding project JCI began by creating five categories of measurement Business Performance (this includes all financial measures) Service Delivery Customer Satisfaction Safety and People While the other four categories may be typical to most organizations the Service Delivery category was designed to take JCIrsquos measurements down to the client-site level which includes over 300 locations globally where the company has contracts In some cases there might be one staff member assigned to manage a single building while other times a staff member has a whole portfolio they maintain Measuring performance at all of these locations and levels proved a complex undertaking

Strategic Initiatives

Like all service providers JCI has to demonstrate that they add value Scorecarding allows them to do this both internally

and externally using data-driven results Since JCI has always been very much a data-driven organization anyway with a manufacturing background this was a natural fit for the corporation

JCIrsquos organization-wide motto is to be as good everywhere as they are somewhere Theyrsquove found that in any one account they may excel in several areas but perhaps not in all areas elsewhere though on another account someone else might have the skills needed to fill in those gaps The companyrsquos goal was to share information and communicate it between different locations across the globe allowing the company as a whole to get better faster and to benefit from the skills and strengths of its individual members Scorecarding was introduced as a way to help share this information and to introduce benchmarking within the company

The Requirements

To get started on their scorecarding initiative JCI examined each of their US contracts What they found was that there were no standards between clients and therefore no ability to benchmark Customers though wanted the ability to find out how they stood in relation to other customers This was impossible under the circumstances

Global Operational Excellence and a Performance Scorecard System A Case Study of

Johnson Controls Incorporated

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Out of Touch With Crucial Data

Previously when Helzbergrsquos divisional and regional vice presidents went on the road access to their key performance metrics was restricted Without a laptop and a WiFi or hotel network connection to the internet they were ldquoflying blindrdquo according to Greg Backhus Helzbergrsquos Director of Data Warehouse and Decision Support Systems As a result they did a lot of faxing it was the only way they could get the current data that they needed in order to

About Webalo

Webalo technology transforms enterprise applications and data to make them compatible with mobile

devices This eliminates the need for traditional custom programming reducing the deployment of mobile applications from weeks or months to in most cases less than a day The resulting ldquoanywhere anytime on-demandrdquo availability of enterprise data on handheld devices turns such devices into viable alternatives to desktop laptop and palmtop computer hardware and lets mobile employees work more productively ndash on the spot ndash to solve problems answer questions monitor operations close sales and make informed decisions

The Webalo Mobile Dashboard Service ndash available in both internet-based and enterprise intranet-based implementations ndash lets non-IT business administrators securely specify the content of mobile-accessible information and the companion Webalo Proxy Server configures it in seconds to conform to the native user interface of any BlackBerry Windows Mobile Pocket PC Palm Symbian or Java-enabled smartphone

CLARITY CUT AND CARATSHow Helzberg Diamonds Made Sales Data Clearer Eliminated

Delays and Lightened the Load for its Divisional Executives

A diamond may be forever but a lot has changed in how theyrsquove been marketed and sold during Helzberg Diamondsrsquo nine decades in business A single store has expanded to nearly 300 locations from coast to coast and border to border Sales can also be made online now And information about every sale can be accessed in an instance through the companyrsquos enterprise systems

bull Compare actual sales to their goals and plans

bull Determine transaction counts for total dollar volume and average sales value

bull Break down sales by product category

bull Monitor attachment rates for products and services related to the main product sale

For example onsite at individual stores it was difficult to gauge how an active price-reduction sale was affecting unit and dollar

volumes unless there happened to be a coffee shop next door with a WiFi connection that would let Helzbergrsquos executives access the enterprise system

The Three Cs of Information Access

The three Cs of diamond grading ndash clarity cut and carats (or weight) ndash turned out to be applicable to data access as well But it took a transition to handheld devices and to the Webalo Mobile Dashboard to achieve it

Though laptop computers had gotten lighter and lighter over the years they were still considerably heavier than the Pocket PC-based smartphones that Helzbergrsquos executives used Since they were carrying those handhelds in addition to their laptops the VPs were open to the idea of being able to

bull Access sales metrics on their handhelds

bull Have data available on-demand from any location with a wireless signal

bull Navigate quickly to the figures they needed

bull Get updates to their metrics automatically

bull Review the information offline

It was the only time that carrying less weight ndash or carats ndash added more value Using a simple step-by-step wizard Helzbergrsquos support staff was able to configure their enterprise reports in a matter of hours They then assigned access privileges to each executive to control who could see what information and uploaded the file to the Webalo server That satisfied how data was ldquocutrdquo

For each mobile user regardless of the brand and model of smartphone they used the Webalo Mobile Dashboard conformed the information to the devicesrsquo user interface The application worked and looked exactly like any other application developed specifically for their mobile devices the on-screen text was easy to read and navigation used the same menu structure That meant there was no learning curve to delay user acceptance and productivity Clarity was essential and the Mobile Dashboard delivered it right down to the ability to bookmark commonly-referred-to displays for instant reference enhancing on-the-spot productivity even more

Speed and Simplicity

Productivity was also improved on the IT side Without the need for custom programming to conform the information to each smartphone brand and model deployment was reduced from months to hours

Since adopting the Webalo Mobile Dashboard Backhus says ldquoThe Divisional VPs find it invaluable They get more done because they donrsquot have the delays they used to haverdquo Decisions that used to have to wait for current data are now made right away relying on the right data presented in the right format

44

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Sustainable practice has graduated from being market hype

to becoming a strategic initiative important for driving a successful enterprise It not only reduces a companyrsquos impact on the environment but can help organizations achieve a competitive advantage to build their brand impact top and bottom line and improve customer acquisition satisfaction and retention

Creating a road map towards sustainable management can require an entire shift in corporate thinking one that involves searching for buy-in at all levels establishing useful metrics and introducing practices that get beyond the green hype The end result though is not just a greener organization but also one with a more prosperous future

Why Sustainability

In August 2008 a survey undertaken by CIO Insight examined green practices in business focusing on the reasons why CIOs introduce sustainability efforts into their organizations The number one reason why organizations went green the study found was that the people within those companies sincerely had a concern for the environment A total of 74 percent of respondents answered that way 32 percent of which listed it as their most influential driver

Other influential drivers named in the survey included

Financial Drivers Companies found sustainability to be a way of cutting costs If they could cut energy costs not only would that help the environment but it would also help create cost savings The second most popular answer in the CIO Insight study financial impacts are key to implementing sustainability in most organizations Examples of financial impacts possible from sustainability were presented at CFO

2 The CFO Green

Conference which took place in May 2008

bull Dupont reduced its CO2 emissions by 70 percent saving the company $3 billion

bull FedEx redesigned its delivery trucks making them more aerodynamic This reduced the amount of particulate pollutants nitrogen and carbon the trucks put into the atmosphere and it also reduced the companyrsquos fuel costs exceptionally

Customer Image In the CIO Insight survey the third motive listed by CIOs for introducing sustainability ndash at 64 percent ndash was company image Consumers are becoming more and more aware of whether companies or organizations are living up to sustainability ideals They will notice if a company image or brand value reflects this concern for the environment Meaningful sustainability efforts can help gain customer approval as in the following case

bull Wal-Mart and Procter amp Gamble together agreed to sell liquid laundry detergent only in concentrated form This saved shelf space for Wal-Mart reduced water use by 400 million gallons for Procter amp Gamble and eliminated 45 million pounds of plastic waste

Regulatory Requirements The surveyrsquos fourth most popular reply ndash at only 25 percent ndash were current or potential regulations including the cap and trade systems being implemented which will require companies to buy carbon and sell carbon credits

Shareholder Pressure Finally at fifth in the CIO Insight survey ndash with 14 percent of responses ndash was shareholder or public pressure pressure building from shareholders to put forth sustainability efforts Pressure at this level is often mixed though as shareholders are also likely to express a desire that they donrsquot want shares to decline in value The general message may be that it is fine to introduce sustainability measures only as long as there is no risk that they will hurt the company

A Road Map Towards Sustainability

Step 1 Identify What Drives Your Organization

The first step in the road map towards sustainability is identifying key drivers Some drivers vary from one organization to another while others seem to drive any organization regardless of the industry Drivers incude

Internal drivers

bull Cost cuttings and savings

bull Employees including both the satisfaction of current employees as well as the recruitment and retention of future employees

bull Investment

External Drivers

bull Stakeholders including both those within the company ndash the employees discussed above ndash as well as stakeholders outside of the company

bull Brand awareness because consumers are becoming increasingly aware of the choices that are available to them and are making choices based on a companyrsquos green initiatives

Future drivers

bull Tax incentives

bull The recruitment and retention of future customers

Step 2 Select Your Metrics

In general terms sustainability metrics will fall into one of four major categories those that affect the climate those that affect the oceans those that affect human health and those that affect common issues like the land the water the wildlife etc

Within those large categories are smaller areas of interest that companies must examine to introduce organization-wide sustainability management carbon monoxide use energy consumption water consumption and fuel consumption are prime examples

Carbon Monoxide Use Many of the questions companies are asking themselves in regards to carbon monoxide use include

A Road Map of Key

Sustainability Metrics

That Impact Bottom

Line

46

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Vol 6 Issue 2 2009

bull How much carbon monoxide do we produce

bull Which processes in our overall manufacturing or delivery use produce the most emissions

bull Can we determine the indirect emissions For example leave a computer plugged in and itrsquos still on the grid creating an indirect carbon dioxide emitter How can we measure that

bull Whatrsquos our cost Do we have metrics that tell us what our CO2 emissions cost us

bull Can we predict into the future If we continue on this path without doing anything where will we be next month Next quarter Next year

Some examples of metrics related to carbon monoxide use include carbon dioxide emissions per employee (similar to revenue per employee) carbon footprint metrics and transportation distances

Energy Consumption Areas of interest related to corporate energy consumption may include the following

bull How much do we consume From what sources

bull Are we on the grid Are we using solar power or wind power or another alternative power

bull How much is used by our data center How do we make the data center greener

bull Where can we reduce consumption

Companies today are reducing energy consumption in a variety of ways by introducing energy audits and looking at energy-saving appliances and also through energy incentive programs for employees within which companies can incentivize and introduce bonus plans

Water Consumption An examination of a companyrsquos water consumption may include some of the following queries

bull How much water do we currently use and where

bull Where in our processes do we use the most water

bull Can we predict how much wersquore going to use in the future

Some of the examples of metrics that companies introduce in terms of water consumption include improved water quality how much impact low-flow or low-volume toilets have on water consumption and how much water is or can be recycled

Fuel Consumption Questions to consider in relation to fuel consumption include

bull How much fuel do we use

bull Where are the inefficiencies

bull Whatrsquos being predicted for fuel usage in the future

bull Can we analyze our logistics so that we can determine how to reduce our fuel consumption For example where are our trucks traveling How are they traveling What kinds of loads are they carrying

Step 3 Recognize Challenges

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly As such easier ways to enhance communication and to increase visibility need to be introduced both inside and outside of an organization

There are also constantly evolving requirements measures and standards of success With everything so new companies are challenged to find ways to compare their sustainability efforts with other organizations The biggest challenge in implementing these processes or attracting metrics may be that they require an entire shift in thinking Additional challenges that exist in the implementation of a sustainability model include

1 Financial concerns Companies must truly see potential for returns on investment or these initiatives can become non-starters or stall

2 Lack of regulatory motivation While not as common as it once was certain organizations arenrsquot motivated to introduce sustainability until government regulations are in place

3 Lack of a formal strategy for sustainability Without a formal strategy it is difficult for companies to determine where they need to go

4 Determining appropriate metrics Companies must choose metrics that are useful demonstrate impact and say something about their own corporate environment

5 Calculating metrics Standard algorithms and calculations exist to calculate metrics but companies must find the appropriate ones and use them

6 Finding quality data to plug into those calculations As in any Business Intelligence project if the quality of the data is questionable then so are the sustainability metrics themselves

7 Determining the scope of the sustainability project The scope is critical Narrow it down to something achievable feasible and useful

Step 4 Learn from Best Practices

What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde

bull Assign an executive champion Without an executive champion to drive the project initiatives are more likely to lack a holistic view and a clear vision for an implementation strategy they may take longer to implement and theyrsquore less likely to yield the required results To provide motivation consider linking the championrsquos salary directly to sustainability savings or to the increased revenues that result from sustainability efforts

bull Implement internal training and education Educate employees on what to expect and what is expected from them

bull Improve communication Communicate both to employees and to stakeholders outside of the organization

bull Start to think about alternative energy management and control strategies

bull Engage the use of technology and services For companies not sure where to begin a sustainability consultant can assist with program selection as can vendors such as Actuate which has a sustainability management solution in place

Step 5 Get Started

Understand that sustainability development is a business opportunity Donrsquot look at it solely as environmental although that is also important Itrsquos an opportunity for companies to introduce more cost-effective processes and procedures and to become more cost effective in their vehicle fleet manufacturing delivery etc

bull Create globally consistent metrics and goals Large agencies have to make sure that the entire group is on board and that they have consistent metrics and consistent goals across the enterprise

bull Find the value and drive the action What is the value of monitoring these sustainability areas and whatrsquos the course of action if you see that theyrsquore going off kilter or are not tracking as expected

bull Start small Initiatives such as these can become incredibly complex very quickly Start small and build in the complexity with each ensuing project

bull Get buy in People need to understand what the metrics are why theyrsquore there and what they mean to each individualrsquos situation (as reflected in individual bonus plans perhaps) Measure using industry-accepted methodologies and industry-accepted protocols continually improve metrics through optimization and forecasting and constantly optimize metrics and forecast into the future

bull As much as possible accurately report to everybody environmental performance Let employees shareholders customers and regulators know If data is questionable fix it get quality processes in place and then run the metrics

bull Determine environmental impact Has waste been reduced Has resource utilization been reduced Has the company improved environmental factors

Also consider using an Open Source vendor The Open Source community is beginning to develop sustainability metrics and Open Source reduces the costs of developing metrics while software costs for the project are reduced as well

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly ldquo

rdquo What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde ldquo

rdquo

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Vol 6 Issue 2 2009

Step 6 Move from Green Hype to Sustainable Action

A successful sustainability initiative involves identifying metrics that will translate into cost savings and benefits while avoiding metrics that are not likely to yield required results To accomplish this start small start with a small department within the organization and then repeat this continuing to repeat it throughout the enterprise

bull Start with basic conservation Change behavior reduce consumption and in the process increase investment

bull Start reusing Improve productivity improve efficiency and create less waste

bull When this translates into cost savings re-invest Grow make larger improvements and increase involvement

Projects that make good starting points

bull Measure carbon dioxide emissions throughout a value chain or product lifespan Look for potential improvements

bull Ensure regulatory compliance By knowing what the regulations are companies can determine what metrics need to be in place

bull Identify ways to promote and profit from more environmentally-respectful goods and services Companies can promote environmentally-respectful goods and services while also using sustainability to help the company

Monitor the effects of each project to determine which strategies have the most impact both physically in terms of

the environment and financially in terms of revenues and cost savings Publicize how metrics are tracking over time

Actuate for Sustainability Management

Actuate for Sustainability Management is a solution by Actuate that integrates highly interactive visually rich dashboards There are pre-built sustainability scorecards strategy maps and over 100 pre-built metrics across the economic social and environmental aspects of sustainability

The Actuate BIRT Performance Scorecard supports the metrics defined including

bull Reducing an organizationrsquos environmental footprint

bull Building green facilities and buildings

bull Compliance and reporting

bull Manufacturing

bull Community and engagement

bull Human development including employee well-being and satisfaction

Actuate for Sustainability Management provides collaboration across regulators consumers and non-governmental organizations Dashboards and scorecards come integrated with reporting so as to improve reporting to stakeholders both outside and inside of an organization All of the products are built on Actuatersquos dependable cost-effective and scaleable platform

Performance Management solutions help organizations understand act on and influence business decisions processes and measures of business success The 2009 Actuate Performance Management Excellence Awards will honor customer success stories in four key areas Over the next several issues Perform Magazine will highlight some of the entries in these categories

Category 1 Go Green

Each year the concept of environmental responsibility has implications for both the private and public sector specifically with regards to how each measures the performance of their operations For organizations using the Actuate BIRT Performance Scorecard to measure the progress of organizational Green initiatives how have they responded to the challenge and how do they use the BIRT Performance Scorecard to ensure they stay on track

Category 2 The Perfect Slice

Successful Performance Management comes in all sizes Some initiatives are enterprise-wide while others are focused around specific business units or functions yet still encompass a holistic approach to Performance Management by looking beyond financial indicators to a more balanced set of indicators This category includes organizations deploying the Actuate BIRT Performance Scorecard with a focus on improving the performance of individual business units or functions and includes the measurement of people and processes

Category 3 Big Bang

Carefully executed Performance Management initiatives begin with a measured approach to the initial implementation and quickly expand to other parts of the organization aligning business units to strategy at each step This category is open to Actuate customers who initially implemented the Actuate BIRT Performance Scorecard to a limited user community and through careful change management and planning expanded the use of the BIRT Performance Scorecard throughout the organization

Category 4 Super Size

Award-winning enterprises achieve breakthrough results in the financial customer operational and people perspectives of their business and leverage internal champions across the organization to ensure ongoing and sustainable success The key to achieving these results lies in total visibility of all business units aligned to strategy This category is open to any Actuate customer with a fully deployed enterprise-wide Actuate BIRT Performance Scorecard implementation

Actuate Performance Management Excellence Awards2009

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HealthNow New York Inc headquartered in Buffalo is one of New York Statersquos leading healthcare companies doing business as BlueCross BlueShield of Western New York BlueShield of Northeastern New York HealthNow in the Central New York region and Brokerage Concepts Inc in Pennsylvania

Improving the health of people and communities are HealthNowrsquos corporate priorities and for more than 70 years the company has been a proactive partner in health working to improve the quality of care and the quality of life for everyone it serves In 2008 HealthNow provided access to care to more than 820000 members and in 2008 company revenues grew to $227 billion

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution and describe what you were trying to achieve as a group function or department

A few years ago HealthNow New York Inc determined that the key to its continued success would be its ability to differentiate itself from other healthcare plans in ways that could not be readily duplicated or copied by their competitors In an increasingly crowded marketplace to get the attention of new customers and retain existing ones HealthNow needed to set itself apart from others

This lasting competitive advantage needed to come from an organizational culture that was dedicated to a relentless focus on meeting customersrsquo needs It needed to be highly responsive supportive flexible and nimble particularly as the healthcare marketplace continues to change with more responsibility placed upon its customers

To that end a new business model was implemented to provide the framework for customer focus Under the new structure the company was divided into four strategic business units (SBUs) each responsible for financial contribution customer satisfaction medical utilization and market share of a specific book of business

Each SBU includes its own set of functions including sales account and broker management product configuration customer intelligence pricing enrollment and billing customer service medical management and HR support Each business unit is led by an executive who is fully accountable for the unit operations and for bottom-line performance of the entire business unit Each SBU is supported by various corporate support functions (Actuarial IT Legal etc)

Implementation of the new business model began with a reorganization of the senior management structure The senior management of each SBU has specific incentive goals as well as strategic goals aligned with the corporate incentive Those strategic goals then drill down to ldquoteamrdquo incentives and to a blend of strategic and operational goals

This was a completely new way of looking at our business It was a blank slate requiring new processes and new methodology as well as an examination of existing metrics and processes to determine what added value and where the strengths weaknesses opportunities and gaps were

Under this new structure the Government Programs State and Federal products SBU ndash which historically had some inefficient end-to-end processes lacked internal controls and had minimal oversight of financial performance ndash was able to set a foundation and develop a growth strategy In order to achieve this mission and to align track monitor improve and communicate performance the Senior Vice President of the Government Programs SBU elected to utilize a Performance Management framework via the Actuate BIRT Performance Scorecard

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

As a point of reference the Government Programs SBU is comprised of a State Government Programs team a Federal Government Programs team an Operations team and a Sales team The Performance Management design team was comprised of the Actuate system administratorfacilitator the Government Program financial reporting manager and two SBU data analysts Input from the various teamsrsquo management staff was gathered as the design got more granular

Discussions around the design of the Government Programs scorecard began with two basic questions

1 What are the handful (ideally six to eight) of key performance indicators that are necessary to run and manage your business and to indicate that yoursquore on the right path to achieving your goals

Defining the key performance indicators was a challenge that required the Actuate system administrator in a facilitative role to get intimately involved in order to keep the discussions focused and high level and to limit scope creep The incentive goals were clearly defined at the corporate and SBU level however the tough question was how should they drill down in the BIRT Performance Scorecard The facilitator posed the following questions to the other members of the design team

bull How do you usually look at your business

bull How are the primary source documents that capture this information structured

bull What other ways do you look at your business

Taking the answers to these questions a step further the facilitator asked the next question Is the drill-down structure the same for the core strategic or team metrics The answer was yes By taking this approach we were provided with consistency in how the teams look at their business and the performance of their core indicators

Once the incentive and strategic goals were identified more leading and lagging operational measures were defined such as

bull Call centers

bull Accuracy

bull Quality

bull Sales Performance

2 Who is your audience

Through the entire measure selection and definition process the design team was constantly reminded to keep a second question ndash who is your audience ndash in mind This helped keep the focus on the critical few and keep the number of metrics down to a manageable amount Links to supporting documentation were created to provide easy access to the granular data without burdening the scorecardrsquos objective

The audience in this case was the SBUrsquos Senior Vice President followed by the State Director Federal Director Operations Director and Sales General Manager It then cascades down to each directorrsquos management team and the data providers

In order to provide a complete and consistent picture of State and Federal performance for senior management where

gt Performance Management Excellence Awards

HealthNow New YorkCategory 2 Entry The Perfect Slice

gt Performance Management Excellence Awards

[ Figure 131 Homepage Map ]

52

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Vol 6 Issue 2 2009

possible the same or comparable measures were created for each team For example when looking at the various call center metrics ndash even if the definitions and targets slightly differed ndash if one team was consistently exceeding or meeting their target it sparked group discussion around best practices processes staffing and target definition

Utilization of Maps continues to play a major role in communicating performance Again focusing on our audience there is a Map at the Senior VP level which then links to a high-level Map for the State director and staff and for the Federal director and staff The one-page snapshot allows management to easily view performance then to drill down to specifics via additional detailed Maps or Books Because the audience embraces the Maps concept a ldquoWhere is itrdquo Map containing all Maps and Books by SBU was created Itrsquos a quick and easy reference tool

3 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

Quantitative results are achieved through the promotion of visibility and awareness The Return on Investment may not fit a conventional definition but can be measurable and accomplished by challenging the data targets and accompanying commentaryaction plan narrative to drive performance improvement Are the targets realistic yet aggressive Are action plans being documented and carried out Are the actions discussions and decisions leading to improved performance and processes

Government Programsrsquo membership is measured and monitored in various ways via the BIRT Scorecard and other sources For example Federal membership is measured by product then by plan It is also measured by market then by product then by plan By creatively visualizing performance in multiple ways via a Map those same data results can sometimes become very obvious telling a different story that may not be obvious via standard reporting methods It may clearly illustrate that a specific product in a specific market is continuously under-performing for example Fact-based decisions can then be made as to whether or not to continue with this product in this market or it may initiate discussions as to how to grow and retain profitable membership for this product in this market

Another more recent example is an initiative to track claims-review savings By reviewing claims via various processes what savings can be recouped or realized What specific areas are State and Federal teams focusing on that can contribute to overall savings for the SBU Again where applicable there should be consistency in the metrics across

teams Placeholders are included to promote visibility to keep them in the forefront even though the data or processes may not be in place yet But by capturing results on one page via a Map it bridges potential gaps between the teams promoting awareness and synergy across the SBU

4 Qualitative results What ldquosoftrdquo or intangible benefits has the group department or organization received as a result of this solution

A major benefit of the scorecard framework for the Government Programs SBU has been the identification and alignment of roles responsibilities and accountability

The SBUrsquos Senior VP monthly leadership meeting focuses on four areas

bull Performance Performance is covered via the existing incentive strategic and operational metrics

bull Action plans Documenting action plans in the Performance Management Software Suite versus verbalizing action plans establishes ownership and accountability At subsequent meetings management follows up on key action items or plans to determine whether or not the corrective action did take place and if yes did it have the desired results

bull Strategic direction The strategic direction of the various teams is captured as a springboard to strategic thinking discussions and planning So as not to lose sight of short- and long-term strategic planning this aspect of the business now is housed in the BIRT Scorecard completing the strategic planning of the ldquoHow are we going to get thererdquo and ldquoAre we there yetrdquo cycle This holistic approach helps minimize the chances of our scorecard becoming too focused on operational performance and keeps strategic planning dynamic and visible

The value of these metrics is not in the data but in the commentary The individual teamsrsquo strategic direction ldquometricsrdquo are subjective red = 1 yellow = 2 green = 3 The target = 3 Each metric includes a description of the specific strategic path we need to research or move forward on as well as what goal achievement it supports The ldquodatardquo ndash or color ndash is based on basic questions like What did you hope to achieve this month vs What did you actually achieve this month Were there any successes barriers obstacles In addition to accountability the entire SBU benefits from the sharing of information having meaningful discussion taking appropriate action and collaboration

bull Key initiatives The last critical component is the identification and alignment of key initiatives that

are necessary to support achievement of the various incentives strategic goals and direction and operational goals As with the strategic direction metrics the value is in the narrative with the color reflecting what was accomplished for the specific reporting period

5 Innovation Why should this solution be considered an Innovative Solution What makes it unique groundbreaking and superior What unintended results did you realize

Over time the Government Programs Performance Management framework evolved into an innovative solution The process drives performance and isnrsquot necessarily focused on ldquocolorrdquo Rather itrsquos about having the right people in the same room on a regular basis to drive meaningful discussion and to take appropriate action to improve performance

Outside of the standard processes it was the monthly review process that drove effectiveness revisions enhancements and restructuring of the meeting schedule agenda and format The Government Program financial reporting manager would meet with each director and general manager to review their scorecard for completeness as well as for performance from an operational perspective The State and Federal team directors would then meet with their respective management teams to review and discuss performance results in preparation for the joint Government Programs Leadership Meetings The audience included the Senior VP down to team managers key data analysts (data providers) and support function representatives Through trial and error management learned to maximize their time and effectiveness by concentrating on key metrics and topics rather than trying to review all metrics identify leading indicators versus only outcome results and include strategic thinking and initiatives Today the monthly leadership

meetings are much more productive and look at strategic and operational performance

As involvement and participation increased in the team meetings as well as in the leadership meetings it removed silos opened communications enabled the sharing of information and best practices and promoted teamwork across the SBU But most importantly it brought about an awareness and a sense of unity and commitment within the SBU to achieve their goals something that was lacking before

While it was not part of the initial scope management realized shortly after implementation that efficiencies could be gained by replacing an in-depth hard copy monthly report with BIRT-generated results Since the BIRT Scorecard contained the same data with supporting narrative ndash plus additional metrics with narrative ndash monthly performance was captured via a monthly report Book various Maps and BIRT-generated reports Elimination of the hard-copy report was an unintended way of encouraging a more active use of the Performance Management software by management to monitor performance thereby increasing user familiarity with the contents features functionality and navigation

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

Sustainability is achieved through a continuous process of revisiting the scorecard when there are organizational changes looking at the business direction shifts goal changes process changes etc To ensure that metrics are still relevant a filtering process is held with each director and general manager every six to eight months or as necessary During this exercise questions such as the following are asked

gt Performance Management Excellence Awards gt Performance Management Excellence Awards

[ Figure 132 CEOrsquos Book ]

54

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Vol 6 Issue 2 2009

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

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3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

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  1. Button 3
Page 5: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

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9

Vol 6 Issue 2 2009

Need More InformationVisit the Actuate Website

wwwactuatecomwhy-actuateapplicationsstimulus-management

Download a Brochure of the Actuate Stimulus Management Solution

wwwactuatecomdownloadbrochures-datasheetsOPM-Stimulus-Management-briefpdf

Get access Actuate Stimulus Management Live click here

wwwactuatecominfoStimulus-Management-Live

a means to share best practices report templates measure structures scorecards etc that are not readily accessible with a closed model Additionally since governments serve to improve performance at all levels to their constituents the concept of collaboration exists in its truest sense because ldquocompetitionrdquo does not exist (as it does in the corporate sector) Governments in this sense are unique in that they can focus on collaborating with other government organizations to ensure that they learn from each other and can benefit from enhancements from either a technical or business standpoint

Responding to the ARRA How Do You Get There

Open Source ndash The Best Option for US Government

By no means is Open Source a new idea Open Source technologies and solutions such as Java Linux Solaris MySQL Apache and OpenOffice are well established and well proven with billions of people using them Some of the worldrsquos most successful companies ndash including Google and Facebook -- run their businesses on Open Source technologies

There are a few success stories in the US government yet we still lag behind governments in the United Kingdom Brazil Denmark the Netherlands China and Germany etc Governments there have engaged in formal wide-scale deployments of Open Source technology with many having articulated specific policy on Open Source As such without a clear Open Source policy in place the United States risks widening economic and technological competitive gaps between itself and the rest of the world

Do You Know BIRT

When it comes to solutions designed to respond to the reporting and transparency requirements outlined in the American Recovery and Reinvestment Act government leaders

will be pleased to hear that a full suite of value-added products and solutions are available today that are built specifically to address the ever-changing reporting complexities of the Act

Sitting at the core of this pre-built Stimulus Management Application is the Actuate BIRT Performance Scorecard the most fully-featured Integrated Performance Management System ldquoIntegratedrdquo is the key word here ndash because true performance insight requires access to all of your information so that it remains in context with your search at all times regardless of where your data resides

So what sets BIRT apart Itrsquos Open Source to start In fact itrsquos the most widely-used and accepted Open Source business projects in the world and it is reshaping how people in the workplace collaborate to use assemble and view information through the enhanced dynamic interactivity it delivers to every user across the enterprise

This rich collaborative environment is different because of how quickly changes can be deployed and enhancements added to the core technology stack BIRT will change how internal consumers view and use information and their changing needs help dictate future enhancements

Components of Actuate BIRT Stimulus Management

bull Pre-built framework of over 250 ARRA metrics

bull Dynamic BIRT templates including cost reports and interactive Google Maps

bull Actuate BIRT Performance Scorecard The most fully featured Performance Management system Proven methodology delivers concrete milestones tailored for each customer

bull Actuate BIRT and Flash Objects Intuitive rich dashboards display financial and non-financial metrics in context of other leading operational indicators with drill-through into personalized analysis-ready BIRT reports

bull Actuate BIRT Spreadsheets Automate the Excel spreadsheet creation process eliminating errors introduced by manual intervention thereby minimizing risk and improving data accuracy in business-critical spreadsheets

bull Consulting Services Unmatched Operational and Strategic Performance Management knowledge software consulting coupled with knowledge transfer

bull Metrics Library Leverage an extensive library of over 12000 metrics and a tailored ARRA solution database

John Katsoulis joined Actuate in November 2002 and is currently Senior Manager Product Marketing He has 13 years of combined experience in software consulting product management and product marketing John is responsible for the product marketing and development of new applications for Actuatersquos Performance Management solutions and also the editor of Perform Magazine

By Norma SimonsPresidentSimons-White amp Associates Inc

As workplaces become more complex with higher expectations the demand becomes greater for accountability and performance results As a result internal pressures escalate for organizational change which ndash if implemented

correctly ndash can lead to sustainable success for both corporate and government organizations

Itrsquos well known that Performance Management models and frameworks can help any organization create better alignment

by ensuring all resources are directed to those areas that are deemed strategic ndash but is that enough What about instances where alignment still falls short of expectations when the organization in question is still plagued with higher-than-expected levels of waste and inefficient processes How do you manage these processes and can traditional Performance Management methodologies provide enough insight to ensure success Or are other tools needed as well

With so many models and improvement tools available for organizations to use the challenge becomes one of identifying gaps and of implementing supplementary frameworks that fill those gaps These frameworks aim to fix operational areas that impact both top- and bottom-line strategy This article

TEN CRITERIA for Integrating SIX SIGMA with

Performance Management

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11

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will address how any organization can leverage its current Performance Management efforts and enhance outcomes and results by integrating and applying Lean Six Sigma If done properly organizations can use Lean Six Sigma with Performance Management to systematically improve operational performance by eliminating waste and by creating efficient business processes

For those who are not familiar Lean Six Sigma focuses on improving the quality of process outputs by identifying and removing errors and variability in manufacturing or business processes The Lean approach leverages statistical methods and analysis and requires that an organization create a special internal team of people who are experts in these methods (Black Belts Green Belts etc) As such Lean Six Sigma projects follow specific steps and have quantified targets Another way to look at Lean Six Sigma is as a project that is focused on cost savings and on removing mistakes or defects in a process

A Performance Management system is key to any Lean Six Sigma implementation Itrsquos the foundation from which Lean Six Sigma projects are built which means organizations that donrsquot have a functional Performance Management system are starting the Lean Six Sigma journey without the right tools Performance Management helps to clarify the business case to link projects to the bottom line and to provide a baseline of comparison as performance improvement occurs project by project If you donrsquot have a good Performance Management system you donrsquot have an effective method to set priorities in terms of which project you need to start on first

Performance Management then becomes the skeleton or backbone to Lean Six Sigma initiatives ensuring that you select the right projects that projects are linked to the bottom line and that they are done in the right order according to priorities that make sense And once the project is done Performance Management ensures that improvements are monitored and therefore sustained for long-term success

Initiating a Lean Six Sigma project begins with an assessment based on available Performance Management information You identify the approach you want to use ndash whether itrsquos Six Sigma or Lean will depend on what the challenge is ndash you execute the project and finally you monitor the business process to replicate the benefits Many times Lean Six Sigma will fail because of an organizationrsquos inability to replicate success yoursquove done a project there was success but you canrsquot repeat the process If you start off with a Performance Management system it becomes the DNA of the company that you can use to keep and maintain projects

There are 10 criteria that should be used as a baseline focus for the design of a Lean Six Sigma initiative integrated with Performance Management These 10 criteria will vary depending on whether yoursquore with government education healthcare or manufacturing and each has unique requirements that will impact how your program is going to be designed ndash but the fundamental principles in each criteria stay true across these segments

1 Customer Focus

Customer focus is one major criterion that will impact how a Lean Six Sigma initiative is designed Companies should be asking these five questions

1 Is the organization focused on the needs of the customer rather than just internal organizational requirements

2 Is there a process to capture the voice of the customer in an active way Are there surveys for example or are there means of talking to the customer to capture that information

3 Is that information collected Do they keep track of customer data

4 Is the data reviewed and disseminated so that people internally can understand how the organization is viewed

5 Are people aware of the internal customers as well as the external customers

This idea of customer focus is easy to grasp in the manufacturing environment because at the end of the day you are producing a product ndash a deliverable thatrsquos physical In other words many times when you go into a manufacturing plant there is some visual clue that gives you an idea of the extent of customer complaints especially external customer complaints There are also some areas of the organization that will be actively capturing the voice of the customer ndash in the marketing and engineering departments for example ndash communicating that information and using that information in the design process

Government organizations present a different challenge since customer focus is not something that is generally paid much attention to there What we find is that in the public sector you have a captive audience When you think about going to any public-sector organization ndash any city council or the mayorrsquos office etc ndash you are not there by choice As a result people within those environments lose sight of value because their remuneration is not tied to customer satisfaction instead they tend to be very internally driven and focused more on specific procedures that need to be followed and adhered to no matter what They donrsquot try to make things user friendly because they donrsquot have a natural customer focus built into their organizational DNA This is a major struggle in government

Similarly in the case of education customer focus is not a concept that is always embraced or translated in a way that produces desired results for stakeholders Individuals seem to forget or try to get around the idea that students are actually critical customers They are the deliverables of the entire educational system and their tuitions fund the school yet

despite this reality you still find professors and administrators who lose sight of who the customer is Again you have a service being provided without any dialogue or feedback and the people who are paying for it donrsquot get to ask any questions The customer focus is not very strong

Finally in healthcare everybody understands customer focus Everybody is panicked about the patient the safety of the patient and the care the patient needs But the system is not designed to deliver effective patient care they have not structured the system with that in mind Instead cost efficiencies and utilization take precedence

2 Leadership Commitment

Leadership commitment is also very critical to any Lean Six Sigma rollout What we typically find is leaders who are experts in their fields but who have limited or no knowledge of Lean Six Sigma they may hear of the terminology and think it sounds like a good thing but when itrsquos deployed they donrsquot get involved Companies that are successful in Lean Six Sigma are ones where management has been on board and an active part of the rollout from the beginning If management understands what Lean Six Sigma is about they can demonstrate the value it delivers therersquos a connection between processes and

business priorities and they can be more proactive in their involvement of Lean Six Sigma when these connections and the impact of their improvements are made clear to them

Traditionally leadership commitment in Lean Six Sigma has been weak no matter the industry In the manufacturing environment managers in some cases have bought on but in healthcare education and government leadership commitment is still weak In most cases itrsquos unfortunately one of the weakest links of any Lean Six Sigma initiative

3 Organizational Culture

A major problem in many organizations is the insufficient use of data not having the right data or not understanding how to use the data These stumbling blocks can have a tremendous impact on the culture of an organization since there is a strong psychological component attached to performance data This psychological component isnrsquot just related to how data is collected but also to how itrsquos viewed and the response it elicits For example when performance data is used to point out who went wrong theyrsquove in turn introduced a culture of fear that precludes the collecting and effective

use of data In turn this results in fewer people using the performance information and can also lead to people actually fixing the numbers because they know that data will be used against them The psychological component is critical

Also important is teamwork and collaboration across departments Wersquove seen more movement towards collaboration in the past 10 years in the manufacturing industry where certain initiatives have forced people in that sector to be more collaborative than they were originally A good example is concurrent engineering which allows for products and processes to be developed and refined by teams of people some of whom may work in the same building while others are in a different city or country their processes and goals are aligned to ensure a common output

In sectors where collaboration is less evident there are indications that this is partly due to strong departmentally driven organizational silos that prevent the collaboration needed to get to the next level As such the concept has had little impact in these organizations which most people characterize as being rule and process driven When presented to work together to improve performance these organizations are more likely to find out where the problem exists to ensure the right people are held accountable instead of using the cross-functional platform to ascertain how the organizational process of one or many departments can be improved to ensure better results in the future

If you are just beginning a Lean Six Sigma project and run across an organizational culture that is built on fear and mistrust or one heavily influenced by departmental silos and rules yoursquoll have to leverage Performance Management and demonstrate its benefits as you slowly align groups and people to a common set of goals and objectives while along the way you link to processes If done properly this key success factor will ensure you maintain the momentum needed to effectively engage and implement Lean Six Sigma and Performance Management

4 Company Strategy

If a company strategy is not embraced at the start of a project you can go down the path of putting together a Performance Management system and working on Lean Six Sigma with no alignment to top-level strategy or mission You many find that many projects will have no clear link to the direction and overall

purpose of the company Therefore they wonrsquot drive the right results The whole initiative will become short-lived as a result because when therersquos a crisis everybody will just move in a different direction

Everyone needs to understand the company strategy This will ensure that corporate strategy drives Performance Management that your improvement initiatives are closely aligned to top-level goals

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and KPIs and that your people naturally work on the right projects

Demonstrating this linkage and the success you can attain by engaging the process properly can build the business case Another way is to demonstrate what can happen if you donrsquot fix the problem and its overall impact on the organization

5 Process Management

Process management is a foundation on which to build a cross-functional silo which is a good thing because it allows you to break through the traditional barriers associated with processes which for the most part tend to be focused around individual departments or business units Introducing the concept of process management into an organization can be disruptive especially if this individual is tasked with looking at the linkages of business processes across departments and how they can be improved

Most organizations typically already have departmental managers who run functional areas Whatrsquos missing in most cases are process managers who are tasked with focusing on critical cross-functional processes key to the survival of the organization and to the elimination of waste and increase of value through overall improvements

In organizations with siloed ldquofunctionally drivenrdquo cultures disconnects between different departments create waste and over time this erodes value To ensure success any improvement effort needs to be executed carefully facility by facility or function by function looking at processes baselines and at collaboration across these areas This is key to eliminating inefficiencies in organizations

6 Support for Change

Itrsquos important to recognize that Lean Six Sigmarsquos integration with Performance Management is providing many industries with a new way of looking at running complex organizations As such it needs to be embraced by everybody People need to have a positive view of Lean Six Sigma and the organization has to be prepared for the suggested changes Many times individuals misinterpret recommendations as an attack on how they are executing their duties but actually Lean Six

Sigma can be leveraged to amplify the efficiencies of individual departments by ensuring the same level of scrutiny is applied at process junction points

When managing change it is important to take into account the characteristics of the industry in question including the history of the organization the organizationrsquos overall cross-functional culture and the attitudes of its workforce and management In many instances people donrsquot want to initiate change because they think any new process is a phase that will soon pass and that theyrsquoll be returning to business as usual at some point in the future To ensure these difficult situations donrsquot impede on the Lean initiative there has to be some kind of orientation that has to match the industry in question whether itrsquos government manufacturing health care etc

7 Performance Measurement

Companies must identify their true performance drivers or Key Performance Indicators as opposed to measurements that are collected regularly that donrsquot relate to anything Often those numbers have been created randomly which means theyrsquore not driving organizational performance and as a result wonrsquot provide the insight needed to make informed decisions In other cases these measurements are in place because at some point in time someone thought they would be a good idea but under more careful scrutiny they reveal very little For many this problem exists because people donrsquot know the difference between a metric and a Key Performance Indicator

Performance metrics are measures of an organizationrsquos activities and performance Performance metrics should support a range of organizational needs in order to provide proper performance insight While traditionally many metrics are finance based ndash inwardly focusing on the performance of the organization ndash metrics may also focus on performance against customer requirements and value and also include information and performance insight into employees and processes

As mentioned a criticism of performance metrics is that many organizations choose measures that have little value In most cases this is caused by selecting what is immediately measurable even if these measurements have low value and by a tendency to ignore high-value measurements simply because they seem harder to measure

Key Performance Indicators (or KPIs) are financial and non-financial measures or metrics used to help an organization define and evaluate how successful it is typically in terms of

how it is making progress towards long-term organizational goals KPIs can be specified by answering the question lsquoWhat is really important to different stakeholders both internally and externallyrsquo KPIs differ depending on the nature of the organization and the organizationrsquos strategy They help to evaluate the progress of an organization towards its vision and long-term goals especially towards difficult to quantify knowledge-based goals You can measure a process with many metrics but only a few of those metrics are key for your organization (for example based on your business strategy andor operational improvement initiatives)

The intent of performance measurement is not just to have measurements but to have the right measurements at the right time in the right place and to make sure that those measurements drive overall performance Itrsquos key for setting a foundation for Lean and Six Sigma If there is a good performance measurement system in place that takes into consideration Key Performance Indicators or key drivers then it becomes much easier to set up the entire project

8 Problem-Solving Skills

Performance Management systems become key indicators to groups of individuals within an organization helping them to measure their own performance Without performance measurement without a good system in place they have to wait for their boss to tell them theyrsquore not doing the right

thing Performance measurement then offers a mirror or a type of feedback mechanism on how well a process is doing Problem-solving skills meanwhile provide you with the tools to do something about it

A lack of problem-solving skills can be a major stumbling block for people and organizations they may be measuring things but if theyrsquore not doing anything with the results that becomes useless Recognition is only the first step having the skills to do something about it is the second Itrsquos the critical second half to Performance Management

While problem-solving skills ndash in the manufacturing environment at least ndash have become a priority over the last 10 to 15 years theyrsquore still not ingrained into the industryrsquos DNA People coming into the workforce are coming without proper problem-solving skills and they have to learn them as they go But one problem is that information silos exist and because individuals are not seeing across those silos they miss the solution to the problem at hand Thatrsquos one barrier A second one is that people often think that problem solving is for someone else that itrsquos not part of their job description Theyrsquore not trained in problem solving they donrsquot know how

to recognize problems and identify problems and describe problems and find the root causes of problems Coming up with a structured methodology for problem solving and problem resolution is a piece thatrsquos missed across the board

This is the main reason why problems occur over and over again because people are aware that theyrsquore occurring but donrsquot know how to respond to them they donrsquot have the skill set to do so Moreover theyrsquore often not even allowed to do so because itrsquos not part of their job descriptions Or some problems might be initiated between departments which means that without a culture of collaboration things donrsquot come together

When yoursquore solving a problem it canrsquot be a random event it has to be with structured methodology Before anything a scope must be determined What is the problem How do I identify the problem How can I measure that this is a problem Whatrsquos my baseline performance Now that I know my baseline performance whatrsquos my root cause And the root cause has to correspond to drawbacks that exist in the system that are preventing you from achieving a certain objective

The number one reason why we canrsquot solve problems is that we canrsquot describe them and you can only describe a problem if you have a measurement system in place that helps you understand where you are In any environment a problem is defined as a gap in performance between where you are and where you want to be Thatrsquos it If you canrsquot describe the problem in those terms then you canrsquot solve it Many organizations will say that communication is their biggest problem and they canrsquot seem to resolve it But why not Because communication is a symptom of whatrsquos happening not the problem itself Most times people respond to symptoms and not to actual problems

Finally often when a problem occurs the first thing asked is lsquoWho is at faultrsquo But if thatrsquos the first question then the chance to resolve the issue is immediately lost Because if you ask lsquoWho is at faultrsquo everyone immediately tries to protect themselves if someone feels that they could be at blame then theyrsquore not going to come forward to try to solve the problem ndash rather their objective is going to be to protect themselves When this occurs because they donrsquot want to be at fault they might generate another piece of data to cover themselves another procedure on top of another procedure That only adds more complexity and generates more waste Which is why the first question should always be lsquoWhy did it happenrsquo instead of lsquoWho is at faultrsquo

9 Business Intelligence

You canrsquot run an organization department or process based on data that you received a month ago Which his why in todayrsquos environment information applications need to provide you with up-to-date real-time data in addition to the summarized performance information that can be used to identify potential longer-term performance issues

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Vol 6 Issue 2 2009

Everybody within the company needs information and uses data In most cases employees are interacting with real-time information and making decisions based on historical performance The problem is people tend to want to report on everything which preoccupies employees and takes them away from their core duties Fully integrated Rich Information Applications address these issues by providing employees with real-time enterprise data using a single version of the truth delivered in a dynamic environment that allows any user to interact and modify the information to answer business questions specific to their function

10 Human Resources

Finally one of the things that also has prevented success and is sometimes a stumbling block for Lean Six Sigma deployment is the fact that the training programs that are rolled out by human resources may not be closely aligned with the companyrsquos mission

Once a company starts down the path of Lean Six Sigma the human resource systems need to change alongside it At the heart of Lean Six Sigma is a team approach reward and recognition systems need to reflect that so human resource systems will need to address it

Also critical is that team building has to occur across functional silos You have to build teams and people have to collaborate Human resource systems will drive that

Conclusion

To summarize itrsquos clear that when executed properly there are tremendous benefits associated with an integrated Lean Six Sigma Performance Management initiative Organizational Performance Management information provides strategic information and communicates progress towards a set of goals or objectives across the organization but in instances when things go wrong Performance Management alone does not provide a means to systematically and consistently address problems that arise in the business process or production realm This is where Lean Six Sigma can help assisting organizations in addressing these defects to ensure better results in the future

Norma Simons is president of Simons-White amp Associates a performance consulting company in Ann Arbor Michigan that has been in business for over 16 years and employs performance improvement systems such as Lean Six Sigma Quality Management Systems Business Operating Systems and Balanced Scorecards Certified as a quality engineer reliability engineer and a Six Sigma Black Belt Ms Simons has an MS in industrial engineeringoperations research from Wayne State University in Detroit Michigan Contact Ms Simons at nsimonssimons-whitecom or visit wwwsimons-whitecom

In instances when things go wrong Performance Management alone does not provide the means to systematically and consistently address problems that arise in the business process or production realm This is where Lean Six Sigma can help

ldquo

rdquoldquoWith the Actuate BIRT Performance Scorecard in place now we are able to communicate lsquowhat is important to the organizationrsquo across hierarchies and geographies seamlesslyhellipcause-andndasheffect maps have become the basis for all reviews and prioritization of strategic initiativesrdquo

- Gopal Sharma Senior Manager Business ExcellenceVoltas Limited Dubai

To deliver on its mission to provide high quality cost-effective project management and engineering services to customers throughout Asia Voltas

Internationalrsquos Electrical and Mechanical Division (EMD) adopted the Balanced Scorecard (BSc) as a tool for strategy deployment in 2004 The BSc was designed for EMD in line with the strategic objectives and cascaded further to all units and business heads for effective implementation The measures were tracked on a quarterly basis using Excel spreadsheets

Tracking BSc measures through spreadsheets proved to be ineffective in tracking progress on divisional performance

measures Moreover due to lack of integration the Performance Management tracking through BSc was limited to financial measures only The non-financial measures were not tracked due to lack of aggregation of data across levels and geographies This led to misalignment among various functions resulting in ineffective strategy deployment across the division

The major hurdle was ensuring the integrity of the performance data on non-financial measures hence an integrated system was required to ensure the flow and aggregation of data across all levels Also the reporting structure on various key performance indicators (KPIs) was not streamlined for effective Performance Management in the division

The situation prompted Voltas to seek automation of the Balanced Scorecard with integrated tracking and monitoring of the KPIs related to strategic objectives of the company

The SolutionA team was formed to explore more robust Performance Management tools Voltas conducted its due diligence in

Putting the Wheels Into MotionVoltas Views a Dramatic Shift Towards Transparency

Alignment and Dynamic Response

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finding an appropriate solution and in December 2007 chose the Actuate BIRT Performance Scorecard as its Balanced Scorecard solution

The software was customized in-house to the divisionrsquos needs and implemented across levels and locations The major challenges overcome during implementation were

bull Complexity of location structure and measures structure This sophistication and flexibility was a requirement to ensure the integrity and correct aggregation of the data and needed to be incorporated into the overall system

bull Aggregation of financial performance data from different countries in different currencies Led by the local support team and Actuate partner EU Partners a currency conversion facility was created to overcome this hurdle

bull Software access through smart client route at project sites A weak internet connection problem was resolved by Actuate Customer Support which installed the clientrsquos executable file on the local PC An Excel import and export tool is used for data updates to the system

About VoltasElectrical Mechanical amp HVAC Solutions (International) is part of Voltasrsquo Electro-Mechanical Projects amp Services cluster Established in 1978 as Voltas International Limited (a wholly-owned subsidiary of Voltas Limited) to handle international business interests the business looks after core business activities in the Mechanical Electrical amp Public Works (MEP) project areas specifically turnkey projects in

bull Electro-mechanical works comprising electrical building services HVAC (heating ventilation amp air conditioning) plumbing public health fire fighting ELV amp specialized systems

bull Electrical power projects

Voltas Limited a TATA enterprise offers engineering solutions for a wide spectrum of industries in areas such as heating ventilation and air conditioning refrigeration electro-mechanical projects textile machinery machine tools mining and construction equipment materials handling water management building management systems indoor air quality and chemicals EMD is one of four independent business-specific clusters within Voltas Ltd each with its own facilities for market coverage and service to customers

All of the above challenges were addressed easily to match the companyrsquos needs thanks to the versatility and customizable features in the BIRT Performance Scorecard

The initial rollout of the Performance Management system started in March 2008 with successful system deployment across all locations by the end of August 2008 The implementation involved user training on the software and BSc measures

Benefits

All business reviews are now being conducted online in the system both at the regional and corporate levels Managers can view the status of each project by just logging in as well as review and approve actions planned by the project lead without waiting for any formal performance review meetings This has led to a dramatic shift in the way Voltas manages its performance and has improved the transparency in tracking KPIs

Major benefits derived from the implementation are as follows

Solution OverviewIndustry Engineering Services

Company Size $400 million 3800 Employees

Challenges

bull Spreadsheets ineffective in tracking divisional performance

bull Non-financial measures were omitted due to data integrity issues lack of aggregation

bull Strategy unevenly deployed leading to misalignment

Solution

bull Actuate BIRT Performance Management Software Suite

bull Integration consulting services

bull Customized smart client

Benefits

bull Transparency in tracking KPIs all in one place

bull Alignment of action plans to division strategy

bull Dynamic Performance Management timely reviews

Design Stage

bull Measurement system evolution and refinement during system configuration

bull Clear consensus on KPI definitions and descriptions

bull Minimal support required during configuration and implementation

bull User training and access with individual user ID and password cementing ownership and accountability of the scorecard across hierarchies in the division

bull BIRT Scorecardrsquos ease of customization to business needs enabled instantaneous execution of required changes in the system

Rollout and Implementation

bull Strategy Map and other Cause amp Effect Maps have become highly illustrative in communicating the relevance of various measures and their integration with strategic objectives

bull Action Plans are fully aligned to divisional strategy and can be monitored online

bull Timely business reviews and dynamic communication of performance

bull All key performance indicators are tracked and available in one place business performance reports are generated as and when required

Going forward Voltas plans to roll out BIRT Scorecard access to its subsidiaries and to joint ventures in order to track the Balanced Scorecard of allied companies on the same platform The goal is to use it as a comprehensive Performance Management tool for the international operations of the entire company

Voltas has branch offices in Abu Dhabi Dubai Qatar Singapore and Kingdom of Saudi Arabia For more information on the company visit wwwvoltascom

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In todayrsquos economic climate careful decisions are needed to help

business remain competitive and to continue to succeed To stay smarter they need to build deploy and maintain business-critical reporting and information applications

Open Source Business Intelligence while it comes with its own set of technical challenges and misconceptions is often the right solution to deliver that Actuatersquos Business Intelligence Reporting Tools (BIRT) Open Source solution ndash developed with the Eclipse Foundation ndash is one example of a robust and web-centric Open Source Business Intelligence tool

The Open Source Model

An economic shift has occurred in the past decade introduced with the rise of the internet The internet provides connectivity which in turn connects demand to supply this removes the capital equation and shifts conditions in the market People with computers all over the world provide the means of conduction and with easy ways for these people to connect they can easily collaborate on projects with very little infrastructure This in turn led to the popularity of Open Source

Open Source has had many consequences for the enterprise software market primarily by making it a commodity market and by driving down price It also allows people who have a desire to do something to make money from doing it Production inputs are widely distributed and the raw materials are there to produce things in new ways Many argue that this shift has been about software licensing but actually it is largely about the production and distribution of software it is therefore a change that is more about economics that about ideology That economic base ndash the combination of connectivity of easier ways to market produce and distribute software and the fact that the internet acts as a giant copying machine ndash changes the conditions under which software can be sold That is why Open Source continues to disrupt the market and to force vendors to come up with new ways to cope with it Enterprise software is not going away rather it has been forced to shift

A 2008 survey by North Bridge Venture Partners asked Which sector of the software industry is most vulnerable to disruption by Open Source At the top of the resulting list was web publishing and content management a market thatrsquos currently highly fragmented and therefore perfect for introducing Open Source products The second sector was social software an entirely new category that has been difficult to define and difficult currently for commercial vendors to make money from again Open Source is the ideal solution

Business Intelligence was the third sector listed in the North Bridge survey Again this is understandable since BI tools and data warehousing tools are exactly that tools While end users consume the outputs theyrsquore not themselves often put into the hands of end users rather IT sets up the meta-data defines metrics etc Which means Open Source is targeted at the right audience there is a platform in a data warehouse that has multiple layers any one of which can be Open Source or

LEVE

RAG

ING

O

PEN

SO

URC

E

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proprietary Those modular boundaries make Open Source an ideal fit

What IT Looks For

IT acts ndash for the most part ndash as the gatekeeper to Business Intelligence When searching out new software IT generally looks for three things

1 Better alternatives to the status quo Specific features that are better for example

2 Ways to cut costs With commodity infrastructure in place IT has to try to drive down costs

3 Unique attributes There may be something they want to do but cannot do using their current system or features that might not be available (For example their mainstream BI package might not have web-accessible dashboarding that can be self-service)

Why Open Source

In addition to examining the sectors left vulnerable by Open Source the North Bridge Venture survey also asked What makes Open Source attractive Price was the most popular answer In addition to the capital cost of licensing Open Source drives down acquisition cost as companies no longer have to go through heavy proof of concept Itrsquos also easier to trial things and if license costs are less then maintenance costs are also less Finally unbundling maintenance support and service means that businesses can choose from a menu of services instead of being forced into a 20 percent single lump fee

The study also showed that companies found that Open Source offered freedom from vendor lock-in In addition it is flexible with easy access to commodity code in order to develop embed and build content into websites

Another 2008 study by The 451 Group gave a list of what organizations saw as benefits to Open Source once it was already introduced At that point flexibility ndash by 05 percent ndash came out over cost In this instance though the definition of flexibility was different respondents were impressed by the fact that there is no vendor that dictates when they have to upgrade how they have to upgrade and why they have to upgrade For a commercial vendor at end of life or desupporting versions of their software a sales and marketing schedule will often require a release every Q1 whether they are ready or not As a result

companies will be forced into an upgrade they donrsquot want that was released simply because marketing dictated it and not necessarily because it was ready Open Source is typically not under those same types of pressures

Buyers were also impressed by scaling costs if an organization has 50 initial licenses and pushes it out to 150 more people in BI lowered costs come in beyond the initial capital costs As well companies are not dependent on vendors for service or for additional pieces of technology

Whorsquos Adopting

Open Source Business Intelligence adopters include

bull Independent software vendors solution providers and OEMs They are taking Open Source BI and pushing it into products that need reporting and dashboards Theyrsquore beginning to build capabilities using Open Source into quality networking gear file servers and databases

bull People who have traditionally been underserved and have not been getting what they need for whatever reason They may not have had the budget or their current vendor might not offer some of the functionalities that they want Possibly it could be over-serve at least half of the features in a major BI stack today never get used

bull Developers Web developers provide information ndash especially database information ndash on their websites while internal developers have to build reporting features into applications and typically do not have access to the tools they need Tools like BusinessObjects and MicroStrategy live in a data warehouse in a different area of the organization and canrsquot be embedded easily

In terms of the organizations adopting Open Source BI many are on the small side with less than $100 million in revenue But very large organizations are just as likely to adopt Open Source solutions as well This is the inverse bell curve of Open Source BI implementation

Smaller-sized organizations have fewer data sources and more manageable data volumes are more interested in cost flow and also donrsquot have the same level of data volume and complexity that might exist in a medium-to-large organization or deployment Much more manageable data volumes less cost to scaling and fewer technology issues in terms of complexity make these ideal environments for Open Source

Open Source drives down acquisition cost as companies no longer have to go through heavy proof of concept ldquo

rdquo Large organizations though have equally ideal environments They arenrsquot for the most part introducing Open Source at an enterprise-wide level but rather have projects with specific features that need to get done The project in question may exist only within a single department which pushes down data sizes and deployment complexities making them a good target

Introducing Open Source BI

Open Source BI use often comes in at the edges and results from discontinuity An example of such a discontinuity might be a company restart many data warehouse projects started with a particular data model ndash copying a production database and putting reporting on it for example ndash and have to do a schema change At that point the cost of switching from one BI tool to another or from one ETL tool to another is fairly low Everything has to be changed anyway metrics change schemas change queries change The same is true with platforms moving from one database to another involves an integration of an entirely new set of systems These discontinuities often allow for the introduction of Open Source

New interface requirements can also lead to Open Source implementation as a company attempts to bring data-warehouse data into an application deploying it out through a website or via an application But some users may only need a few single simple production reports and donrsquot need to be served through a tool that costs between $1000 and $1500 per seat which is the average per-seat deployment cost of iTools Companies can reserve their BI tools for core individuals who need the flexibility and features and can build Open Source into applications for large-scale but simple reporting

In fact in most cases organizations donrsquot replace an entire system with Open Source That only happens in the cases of large discontinuous change where the features are good enough in an Open Source tool the deployment matches and there is no reason for pushing through a high-cost high-complexity solution Whatrsquos more likely to happen is an augmentation where a particular department ndash or a segment of users or particular class of tool ndash is given something that they need in Open Source For example a BI tool might be good and flexible with interactive reporting that can get production reports out and do the schedule but perhaps doesnrsquot have statistical features rolling out something like R to only a couple of analysts and layering that on top of the warehouse may be the solution

Augmenting and bringing in new features and capabilities in areas where Business Intelligence tools might be weak is typical of Open Source implementation This is an opportunity to augment an existing environment in a cost-effective manner to build features into that environment and to get the features specifically needed without paying for a whole package that isnrsquot all necessary

In contrast with what happens in the case of most traditional models much of the time the need for Open Source applications comes from the bottom-up and is established from a point of need from a developer or a department trying to get something done There are no enterprise sales representatives making calls or going through a procurement process where vendors and financials are examined There is also the ability to put something out in real terms instead of relying on a fake proof of concept where following that proof of concept companies are forced to either pull out and throw it away or to license the software

Roadblocks to Implementing Open Source

Misconceptions still exist around Open Source based largely on the idea that these projects are being developed by teenagers in their parentsrsquo basement a myth that is more than a decade outdated as today Open Source projects are generally run by commercial Open Source providers with paid developers Still a lack of information can prove a problem for organizations introducing Open Source This often plays out in the legal department which reviews all contracts and may not be informed when it comes to Open Source software licenses An Open Source license will be missing half the standard clauses the lawyers are used to clauses of restriction that dictate how to deploy what can be deployed where it can be deployed and how the software can be used Most Open Source licenses do not have these same clauses and lawyers will want to know why theyrsquore missing That can be another road bump in getting the software acquired

Support can also be more confusing Most major projects have commercial vendor support behind them But unbundling is also available which means buyers donrsquot have to purchase support but instead can buy the subscription model that covers only bug fixes integrated patch testing and certification against databases This is because enterprise support is often overrated more often than not internal support solves more problems than the vendor does

Augmenting and bringing in new features and capabilities in areas where BI tools might be weak is typical of Open Source implementation ldquo

rdquo

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Implementing Actuatersquos BIRT Open Source Technology

BIRT Actuatersquos Open Source technology was developed with the Eclipse Foundation and does an exceptional job in meeting web-reporting requirements while utilizing the Open Source model Itrsquos a Java tool with a web-centric development and design paradigm BIRT reports are built with the intent of publishing to the web exclusively or more exclusively than is the case with other alternatives that are typically intended originally for paper BIRT is also very modular and very component based allowing users to do as much or as little as they want to deploy as much or as little as they need when theyrsquore creating their reports or embedding this technology within their environment

One of the goals of BIRT is to cater to the power that is needed for many of todayrsquos reporting projects but also to offer the simplicity that means an individual report creator can be very effective at doing their job simply by using the BIRT design tool itself That goal has proven successful so far with 65 million downloads of BIRT since the projectrsquos inception 45 million of them in 2008 alone BIRT is in fact one of the fastest growing Open Source projects on the internet right now

BIRT does a great job of supporting a wide variety of report types it supports BRD Pro BRD BRS and IV and as users

build components throughout the project they can reuse those elements in subsequent future reports It also supports standards such as HTML cascading style sheets JavaScript Java and XML adding the underpinning technologies for either customization or enhancement and allowing developers to leverage BIRT while using the skills that theyrsquove already developed As an integrated report development environment BIRT also provides graphical and robust tools for the most common reporting tasks including query building ndash such as graphical object layout ndash and representing such as charting As well BIRT includes both online help and documentation

Itrsquos an incredibly robust tool and is capable of being embedded of being delivered to small groups or across the enterprise leveraging Actuatersquos commercial platform New capabilities include the ability to add interactive Flash objects into the environment to build personalized dashboards to create ad hoc reports and to create interactive viewing Actuate also recently introduced the JavaScript API which allows users to embed approximately a dozen lines of JavaScript into any webpage and from that access any content within the Actuate environment including any BIRT report that is hosted in that environment which in turn can be delivered to any type of JavaScript-enabled browser

BIRT is built in the Eclipse Project Actuate sponsors and chairs the project management committee for the BIRT project It is Actuatersquos third reporting technology built from scratch which means there is a high degree of long-term experience integrated into the BIRT environment

How the End User Benefits From BIRT

BIRT comes complete with 65 million sets of eyes worldwide looking at it and suggesting changes That has driven its enhancement in the marketplace The overall number of committers on BIRT historically is high and the current level of committers on the project remains high itrsquos nearly the same as Apache committers in the market today

Actuate ndash in its sponsorship of BIRT ndash has added and created a community called BIRT Exchange which is a resource for the BIRT development user to continue to enhance their BIRT expertise and to continue to gain help if needed from the BIRT community No question goes unanswered on BIRT Exchange which is at odds with what people often find in other Open Source forums where a huge number of questions remain unanswered from the audience Within the BIRT Exchange environment there are three different forum administrators who make sure every single question is answered BIRT Exchange also hosts the documentation for the entire BIRT product line as well as videos and webinars designed to further the training and adoption of BIRT itself

Actuate employs more than 50 developers on the Eclipse project itself with documentation and publications available in support of the project available at amazoncom

Actuatersquos Value Add

BIRT is modern and flexible and open Since itrsquos built within the Eclipse Project anyone who knows Eclipse knows how to use it Actuate adds interactivity which take the form of Flash widgets embedded into the BIRT development environment ndash allowing users to build their own types of dashboards ndash or through interactive viewing to transform a report from being static to something an end user can manipulate and evolve over time This is important because reports typically become obsolete quickly the requirements that they originally meet changes as users use the reports to become smarter and then the questions they want answered change Which means that providing this kind of interactive content is key to the success of a Business Intelligence project

Extending BIRT Capabilities

BIRT development tools and the BIRT engine are available as Open Source and are widely distributed Typical capabilities such as JavaScript and SQL skills are required to become familiar with the BIRT product

The second level of capability is the ability to embed BIRT within applications and to begin to add degrees of interactivity to the environment such as Flash widgets or the interactive viewer This allows a user to create robust rich embedded applications

The third level is for workgroup or departmental-style applications or small organization-type applications To adopt this type of Open Source technology individuals would introduce BIRT plus the single server iServer Express a hybrid of Open Source and commercial technology

Finally there are organizations that seek enterprise-caliber or enterprise-level deployments that want to publish BIRT applications outside the firewall to secure these applications for millions of users and to support very high degrees of performance and reliability This type of scalability requires both good design and trial and error as operating systems platforms and other elements continue to evolve Maintaining best performance for very large-scale environments means making sure that each one of these items is optimized

Open Source Vs Commercial Technology

The overall platform that BIRT delivers is a complete set of both development and deployment options for creating any type of environment Users can be characterized across a number of different lines from incredibly skilled Java developers to everyday report developers from people familiar with Actuate to those who are not from power users to business users etc

There are two fundamental questions that these users need to answer

1 Is BIRT the right technology for the application theyrsquore creating

2 Whatrsquos the best way to deploy it through Open Source or through commercial deployment means

The answer to the second question is reliant on a number of variables In the following situations for example Open Source would be the ideal alternative

bull Those users who want to use BIRT for individual use

bull Those who want to embed it into their own project

bull An ISV who has the technology in their own application to support printing and baked-in reporting needs

Converting to or supporting a commercial model meanwhile occurs most frequently at the enterprise-server level for organizations deploying the environment to hundreds or thousands of users It supports a wide variety of types of users

But both the Open Source and commercial models employ a common report design format Itrsquos a progressive development experience or a collaborative report design and collaborative process allowing each user to participate in the definition and the evolution of their reporting environment while at the same time using tools that are appropriate for their skills a novice user isnrsquot being overwhelmed by too many features while the power user or the highly skilled users receive exactly the right kind of technology and level of development capabilities theyrsquore accustomed to

Yet some of the decision-making criteria lean more effectively towards a do-it-yourself situation using the Open Source type

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of model and some lean more appropriately to a commercial investment and a commercial tool A growing level of complexity often drives commercial interest but certain complex functionalities ndash including supporting web services or web services SQL or other examples of integration techniques ndash the Open Source model is more than capable of supporting on its own

The applications Actuate deploys are information applications When choosing the paths of how to proceed ndash with regards to choosing either the Open Source or commercial interest ndash there are typically four premises to consider in an information application

1 Is the report or the application able to consume and collect data from one or many sources whether itrsquos a single report or a complex application Typically when the data sources are simple and the data connections well understood either Open Source or commercial interests are appropriate With meta-data layers and extraction layers the commercial model tends to be more effective But if itrsquos an embedded project using POJOs or other Open Source or specialty connectors ndash unique connectors ndash that often keeps a project more suited for an Open Source deployment

2 How is it able to aggregate and transform that data into meaningful information Looking at aggregation the same premise holds true if therersquos simple aggregate functions or automatic cross tabs or even custom or reuseable business functions both the Open Source and commercial models are appropriate In terms of embedded Java functions those aggregations are appropriate in either case Itrsquos when entering into areas of security ndash of parameter-driven values dynamic-parameter collection cascading menus etc ndash that a commercial purchase tends to excel over the Open Source version

3 What are the presentation options or formats available to present that data When the presentationrsquos fairly simple both Open Source and commercial apply When

charting cross tabs and embedded graphics are the norm then the two are served both in Open Source or commercial interests When JavaScript is starting to be used as a customization or a dynamic-properties delivery vehicle both the Open Source and commercial models are effective although keeping this content embedded within an environment is probably more appropriate using Open Source Itrsquos only when introducing elements such as interactive viewing capability or the ability to manage an environment through a management console capability that the commercial option begins to edge out

4 Are we able to achieve the levels of scale that we need to get that information out to every user whorsquos interested in it When individual use is appropriate Open Source is a better fit When transient content is what a company is delivering thatrsquos usually a better fit with Open Source as well as is embedding To support a collaborative reporting effect or to support a variety of developers and users ndash especially users with different skills ndash the shift begins to move towards a commercial style of delivery When therersquos custom delivery required such as JavaScript API the commercial environment is also more appropriate

These are the capabilities of different deployment options for both the Open Source platform as well as the Actuate commercial platform geared towards allowing organizations to get the value that they most see fit within their environment or their application Typically for environments that have a heavy requirement for infrastructure thatrsquos what drives the commercial purchase whereas customization or individual interests typically drive Open Source

The key thing for any organization is to first decide what kind of reporting technology they need ndash whether it be Open Source or commercial ndash and then to look at their own needs And finally consider the BIRT environment as a vehicle that meets web reporting needs

For more information on BIRT visit actuatecom

A growing level of complexity often drives commercial interest but certain complex functionalities ndash including supporting web service or web service SQL or other examples of integration techniques ndash the Open Source model is more than capable of supporting on its own

ldquordquo

One of the benefits of Actuatersquos Business Intelligence Reporting Tools (BIRT) is that very capability for flexible functionality thatrsquos adjustable to usersrsquo needs Every component of the BIRT technology ndash whether in the Open Source or commercial versions ndash builds upon the components before it creating a robust and flexible system designed to meet each organizationrsquos unique Business Intelligence needs

Choose the Right Graphical ToolThe first step towards evolving organizational Business Intelligence is choosing the right graphical tool The Eclipse BIRT technology for one is a visual designer thatrsquos geared at report developers as well as JavaScript and Java developers and can create a wide range of reporting technologies and web reports BIRT builds content that is specifically intended for the web and uses techniques that are expected when building web pages and web content It doesnrsquot use a banded report writer design or development metaphor typical of many older report-authoring products including Crystal Reports or Jasper

BIRT is the third from-scratch product that Actuate has sponsored and developed and as such it takes into account more modern capabilities and techniques for developing web content In building BIRT Actuate has drawn from its extensive market knowledge borrowing best concepts from other products as well as from its own Reusability and the ability to include programmability within the environment have been traditional Actuate capabilities that have been included in BIRT but BIRT technology also uses de-facto standard programming capabilities such as embedding JavaScript and Java into the application rather than using a proprietary language

Open Source is the core reporting capability and value-added commercial products can be added to it More than 50 developers are employed by Actuate on the BIRT Open Source project similar to the number of developers Apache has applied to the Apache project Alongside these Open Source developers are Actuate developers working on the commercial product of BIRT

Open Source BI

Cost-Effectively Deploying

When deploying Open Source Business Intelligence technologies multi-layered functionality that can be added as needed serves to create a cost-effective way to build a solution specific to an organizationrsquos needs Each function acts as a building block as a company creates exactly the capabilities necessary for the job on hand without wasting money and resources on items that arenrsquot needed

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Another benefit of BIRT is the BIRT Exchange community Actuatersquos user forum which is far more robust and extensive with documentation and help information than has been found traditionally Nearly every forum post has an answer to it in some form which is not likely to be experienced with any other Open Source project or forum-based community Meanwhile the community itself is vast and growing rapidly Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate ndash where a developer may have downloaded 20 copies over its history ndash adds up to 350000 different users of BIRT technology That number is growing at roughly double the rate of the other two most popular Open Source projects

Add Value Through Features

Actuate BIRT technology has a range of features that will add value to a companyrsquos BI project

1 In addition to being a graphical report design tool BIRT takes into account the long-standing tradition of Actuate to support reuse libraries and reusability across the entire environment It is able to not only reuse BIRT objects and BIRT components ndash such as charts and tables ndash but also to incorporate and use JavaScript objects and Java libraries in the reports themselves This creates a rich experience for driving and building web-oriented reports

2 BIRT offers navigability While a user is in a graphical design tool they should be able to take advantage of some of the core capabilities that the technology offers such as a visual hyperlink builder that keeps information in context as well as the ability to create cross tabs dashboards and charting mechanisms that are active and navigable Inserting type of content ndash so that it is both consumable and scoped in context for the user ndash is important to the success of deployment Hyperlinking in context is one of the key elements to supporting Open Source deployments

3 The Eclipse BIRT environment supports a variety of graphical types or charting types including not only grids and tables but both static and dynamic images as well that can be linked back to databases or can support conditional formatting and a variety of conditions baked into the report BIRT is able to handle a large variety of chart types and styles allowing organizations to convey exactly what theyrsquore trying to deliver to their users Supporting rich charting is one of BIRTrsquos key core capabilities

4 The Open Source Eclipse engine can be embedded into or deployed from an application quickly within a JVM Users can add content generation or report generation functionality easily and quickly to their application by inserting it into their run time The BIRT engine itself is a key component in the Eclipse BIRT project It has a variety of extension points built into it which means itrsquos able to not only generate supported output types ndash such as HTML or Adobe PDF ndash but can also create custom emissions from a BIRT report such as an emitter for mobile content or an emitter for a particular report format of the userrsquos own perhaps to feed another application With a robust API structure within the Eclipse BIRT engine these are all possible

Build On Interactivity for a Richer Experience

Building onto that BIRT experience organizations can add more interactive and visual elements to create more appeal within their BI projects

Animated Flash Visuals Animated Flash visuals built into BIRT reports lend to a richer more enjoyable experience for end users They can take advantage of the navigation enhanced with the visual and animated appeal that Adobe Flash offers

The Actuate BIRT development tools include 266 Flash widgets This is one feature that differentiates BIRT Open Source with the BIRT commercial product Those who purchase the development tools from Actuate will immediately receive these Flash objects that can be deployed not only within Actuate BIRT reports but within Eclipse BIRT reports as well they are portable across both environments

Interactive Viewing Often users have a difficult time articulating their requirements to report authors That problem is alleviated when authors can deliver them an interactive viewing experience allowing the report to become changeable and adjustable by the user The user can select a particular column and can apply a filter to that column they can toggle back and forth between viewing perspectives rotate charts change the grouping of a report or add more visualization to it with something such as conditional formatting They could even navigate within the report using a joystick or deploy that report or portlet content anywhere they want And ultimately they could drag and drop and change ndash or add columns to the report directly ndash by manipulating the report as needed

This interactivity gives the end user the ability to enjoy more freedom with regards to how they use the report It also

addresses one of the biggest conundrums with regards to report delivery giving users a report provides them with content that makes them smarter and as they get smarter they take that information and they work it into their knowledge which in turn changes the questions that they ask of the report This means that what they need from a report changes over time Allowing users to modify reports themselves is a key goal in supporting BI processes because as users become smarter about what theyrsquore doing with their content they can help assist in defining what the next iterations of their web content might be

Choose the RIght Server to Store and Schedule Content

Actuate has spent the last 15 years developing the Actuate iServer It comes in two styles ndash iServer Enterprise and iServer Express ndash and offers a robust environment for creating managing and delivering BIRT report content to users on schedule on demand or on an ad-hoc basis directly

The iServer Express is a single-server deployment that is appropriate in scenarios where there is less active usage it supports a sequential batch generation capability and roughly 10 user connections per second as the users connect to the server It offers that scheduling and deployment capability at a very cost-effective price point while allowing organizations to secure their report content using the iServer repository to take advantage of some of the presentation layer capabilities that Actuate offers through its information console to present and manage that content on behalf of the users and ultimately to create a full reporting experience for users directly

Alternatively for those deploying a very large system ndash perhaps one that operates outside of the firewall in a traditional web information application ndash there is the iServer Enterprise The iServer Enterprise is massively scaleable but also very predictably scaleable as companies double the resources that they can apply to their environment they double the throughput and user numbers that theyrsquore able to support with the iServer It is also highly configurable in regards to how content is deployed and supports multi-tenet environments or multiple application environments In addition it can be componentized so that a presentation layer can be separated from a content creation layer or a business logic layer from a data management layer ndash including the meta-data layer itself ndash to help abstract and manage the queries driven

Determine Where Content Can Be Distributed

Actuate JavaScript API is a mechanism that allows the user to take a JavaScript library embed it into any HTML page and then from that JavaScript library securely access Actuate content from the iServer This particular capability allows the user to put either a report part ndash a reportlet ndash or an entire report directly into new locations This could be used as a user attraction vehicle it could be used as a dashboarding vehicle or it could be an integration point for systems that are written in NET rather than in the j2e environments that BIRT typically supports

Deliver Mash-Up Applications

Delivering mash-up applications using all of the functionalities listed above is simple in the BIRT technology and lets users themselves participate in the definition saving creation and management of their own dashboard displays and it allows them to watch exactly the KPIs that they care about

This is done through Actuatersquos Mashboard Customization to the Information Console which allows users to take any BIRT report content and to deploy it directly into a mash-up style environment where they can define exactly what pieces of content go into their application and what doesnrsquot These dashboards can also be roll-based so that particular pieces of content can be deployed to particular types of users directly then if they want to continue to customize that capability theyrsquore able to do so

Conclusion

Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques such as Flash and Ajax in a web-based design metaphor It is designed to evolve effectively over time and is meant to give organizations a choice for every type of user The first decision point of any organization is to recognize whether or not BIRT is the right reporting technology for the information application in question Once thatrsquos decided companies must choose the technologies they want to offer each type of user and then consider how they want to deploy those technologies directly

A wide variety of capabilities can be build into the BIRT environment ranging from Open Source to commercial Actuate products It is a flexible environment and is robust for delivering to users any type of information-driven web content

Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate adds up to 350000 different users of BIRT technology ldquo

rdquo Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques ldquo

rdquo

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The Challenge

Guiding a ship requires visibility into navigation operational performance and up-to-date information to make decisions This type of customer challenge drove ABS Nautical Systems

to incorporate Actuatersquos BIRT technology into its NS5 fleet management software

A leading software provider to the maritime industry ABS and its NS5 modular ERP system help customers manage principal operating expenses associated with vessels and offshore rigs ABS provided basic scheduled reporting and offered ad hoc reports in response to specific customer requests but customers demanded better functionality including the ability to easily extract and create both standard and custom reports

Producing reports to customersrsquo satisfaction took time as reporting was not central to ABS Nautical Systemsrsquo expertise Further it took valuable programmer time away from developing new features and functions for its core product This created the need for ABS to leverage a tool to provide highly-developed rich information application functionality increasing the power of its fleet management software while enabling its customers to access more flexible reporting tools

The Solution

With its own expertise in Java development and their existing reporting ABS searched for an Open Source reporting platformtool that they could leverage and seamlessly embed in their software ndash one that would deliver for ABS and their customers both immediately and for future expansion After considering Jaspersoft Actuate and Pentaho ABS selected Actuate and BIRT for their on-demand reporting solution

ldquoActuate has a clear roadmap and direction scalable platform financial stability and Open Source development platform The Actuate offering was an excellent fit because the technology

ABS Nautical Systems (NS) is one of the leading providers of fleet management software packages available to the

marine and offshore industries It offers a fully integrated modular approach to managing the principal operational expenses associated with a vessel or offshore rig ranging from maintenance and repair to regulatory requirements purchasing and inventory and crew management and payroll

SAFE AT SEAABS Nautical Systems A Case Study

ldquoBoth the technology roadmap and scaling are key It was an excellent fit for us actually ndash you had the right technology yoursquore Open Source based BIRT technology was key and you were the most helpful in helping us do the prototyperdquo

- Sandipan Bhattacharya ABS Nautical Systems

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Vol 6 Issue 2 2009

used Open Source BIRT allowing us great flexibility in developing NS5 Actuate was most supportive in helping ABS NS do the prototype ndash both their Professional Services as well as the account teamrdquo states Sandipan Bhattacharya CTO for ABS NS

The new BIRT-based on-demand reporting tool within ABS NS5 is a web-based application that enables clients to quickly and easily generate custom reports from any NS5 module It handles reporting for the central elements of operational management ndash from regulatory requirements to payroll to planned maintenance programs But it takes NS5 beyond operational duties to consolidate data from across software modules to better monitor key performance indicators (KPIs) such as time to repair spare parts turnover and purchasing cycle times

The interactive information views that BIRT provides help fleet managers to achieve maximum efficiency empowering NS5 software users to get what they want in terms of the reports they need in the way they want them as each department or company may want to look at data in a different way Lastly that same data is more accurate because it comes as near real-time information at the time they need and can be benchmarked against how well they are performing to provide trends for evaluation

BenefitsResults

bull Speed time to market with new features by focusing on core competence in its software platform This allows ABS to focus development on its core product and improve customer satisfaction by rolling out and providing complete reporting modules This also helps decrease development expenses and support costs

bull Expand available market with completely new product lines enabling ABS to increase its client base to companies that didnrsquot know about them or had previously disregarded their offering The additional modules make the product more attractive to existing clients creating additional revenue sources for ABS

ldquoThe BIRT Open Source platform allows for a great deal of flexibility in the development stages Additionally the ease of integration into our OEM package was a great benefit Lastly the Actuate and BIRT offering has proved to be well suited to ABS Nautical Systemsrsquo needs and Actuatersquos roadmap shows what we can do in the futurerdquo states Bhattacharya

Self-serve customization drives flexibility and ease of creating reports BIRT empowers users to produce reports customized to their individual and departmental needs and preferences And as government reporting requirements change they can

Solution OverviewCompany Profile Integrated fleet management software for marine industries

Industry Software

Location Houston with offices worldwide

Challenges

bull Customer need for better more timely reports

bull Enable customers to self-serve for ad hoc needs and regulatory requirements

bull Focus on core software expertise and feature requests

Solution Integrate Actuatersquos Open Source-based BIRT reporting with ABSrsquo NS5 fleet management software

Business Benefits

bull Faster time to market broadened portfolio

bull Ease of integration development flexibility

bull Increased visibility into operations aids customer competitiveness efficiency

bull Users empowered to customize reports

Does your companyrsquos mission and vision statement place the customer at the center of your universe

Does it promise to maximize customer value and deliver the best customer experience possible If it does your mission and vision statement is surprisingly similar to nearly every other organization And much like them chances are your organization is struggling to make this vision a reality to actually reinvent itself as truly customer-centric

ldquoCustomer-centricrdquo has become the new buzz phrase thrown about at most executive planning sessions and has replaced ldquoinnovativerdquo as the new mandatory strategic language The truth is it takes a lot more to become customer-centric than changing the company vision ndash it requires a departure from years of tradition a clear look at who and what your organization is and a deeper understanding of what motivates your customers to buy from you or from your competitor Fortunately the cost to make this change is surprisingly low while the benefits and the returns can be shockingly high

Finding Your Customer

Customer-centric implies that the customer is central to the organization but this is too esoteric to have any real meaning An organization turns materials into a product or service which is then sold Everything the organization does must lead to this

event (with no sale after all therersquos no customer) This logic works for most people and most organizations and it logically follows that the focus should be upon the creation of the best possible product or service because this is what causes a prospect to become an actual customer

This logic fits nicely with traditional thinking It was popularized by Michael Porterrsquos value chain approach in the mid-80s The value chain is a string of critical processes that begins with raw materials or inputs and ends with a product or service delivered to a happy customer Thinking this way makes sense because it is easy to place the customer at the end of the process But this mind-set doesnrsquot just affect how executives structure the organization it weaves its way into every aspect of how the organization manages itself and how managers make decisions

For example the finance department performs the close process each month so that it can deliver financial information to managers with actual bottom-line responsibility These managers from executives to cost center managers are financersquos customers just as shareholders are when they deliver quarterly reports Once these reports are delivered finance goes back to the business of accounting and managing revenue and expense until the next month Engineers work to design new products that will keep them one step ahead of their competition Manufacturing produces goods to meet customer

respond more quickly adapting them by themselves instead of depending on ABS to supply reports

ldquoActuate empowers users to get exactly the reports they need the way they want them Empowerment is key as well as flexibility as each department or company may want to look at data in a different wayrdquo states Bhattacharya

Rich information drives efficiency through increased visibility and better insight into operations improving customer competitiveness With highly accurate real-time information on how well they are performing management can control both overall and specific costs of operating and maintaining their shipping fleets ldquoThey donrsquot have to wait hellip they can see all contributing factors day to day It helps improve efficiency at every level For the first time a shiprsquos captain can have insight into the operational performance of his ship while still at seardquo says Bhattacharya

Creating the Customer-Centric

OrganizationFinding Your Customer-Critical Path

By David F GiannettoCEO

The Telos Group

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Vol 6 Issue 2 2009

orders or demand projections The sales department courts potential buyers so that they become actual customers Once they do so sales then returns to identify new targets and tries to transition them Manufacturing works to refill shelves Engineering continues developing products

Employees throughout the organization are focused upon delivering the product or service for which they are responsible The product attributes become the value proposition that will appeal to their customer regardless of whether or not this is an internal or external customer Employees are trained to think in terms of product development delivery and value The organization becomes even if it doesnrsquot know it product centric Believing that a mainstream management theory such as the value chain approach could not be wrong or outdated management is comfortable with this view of their world When they try to become customer-centric they do not know how

Making the Change

Consider for example the electricity powering the light by which you are reading this article It is a fairly simple product that was mainstreamed decades ago and except for new types of power generation it has remained essentially unchanged The traditional value chain for this industry is fairly straightforward Power is generated by a complex and often dangerous power plant and it is delivered to the customer via a complicated and often dangerous network The customer then consumes this power and must pay for it creating the

need for back-office operations such as accounting finance and customer service

Given the complexity of power generation and delivery operations the organization is staffed by a high percentage of engineers many with doctorate degrees and years of specialized training The generation and delivery assets themselves are maintained by highly-trained highly-specialized workers A large percentage of the management team also comes from this background and rose through the ranks of organizations identically structured Combined these employees represent over 75 percent of the organization

Collectively these employees create a culture that is consistent in almost every power utility in the world Their cultures respect academic achievement technical expertise and years of experience in the industry They typically believe in rigid structures inflexible procedures and consistency in design and execution They are truly product focused

Given the potential hazards it is easy to see why they behave the way they do But what happens when this type of organization has to compete in a more open market when transparency is increased or when the customer such as a municipality has a stronger voice or is under the growing influence of being green What happens when the power company must become truly customer-centric

It is nearly impossible for them to succeed Seventy-five percent of the organization has little to do with or has little understanding of the customer

Departing from Tradition

While this product focus is exaggerated within a power utility largely because of their technical nature these factors affect nearly every organization Employees who have great influence within the organization will not yield it to those who have less but who understand the customer better Funding is unlikely to shift from traditionally respected areas to those areas that most affect the customer

For a power utility this means that engineers who have often dedicated their entire lives to the study of their work must be considered equal to project managers and customer service agents most of who do not hold any degrees Money resources and staffing must focus on project management and call center technology not just on million- or billion-dollar assets There must be recognition that these areas equally affect the customer This new perspective must be executed by executives who have spent their entire careers adhering to the traditional values of the product-centric culture But this shift is what customer-centric really means truly understanding and meeting your customersrsquo needs It starts with the customer more specifically it starts with a prospect

Customer-Critical Path

This means that the traditional value chain must be rethought and renamed more appropriately to the customer-critical path A prospect travels this path on their journey to become a customer a customer travels this path toward the goal of becoming a happy customer This is the true value chain of the organization ndash a string of processes that become critical because they directly affect your customer regardless of the product service organizational chart academic degree or bias Find the customer-critical path and you can guide your customers through your organization in the way that is most meaningful to both them and you

But not all customer needs are the same even within an industry that has only one real product like a power utility The customer-critical path may start in several places meeting the needs of

several different types of customers ndash household customers that simply need power turned on or major projects that require significant project management and pre-planning Eventually these starting paths merge It will occur at the point at which all customers are happy From there they may take a different path

again some will terminate service or have new needs There is not one value chain there are many paths a customer might travel through your organization

This new approach offers significant value for organizations that adopt it It allows them to better understand their customers so that they can be more effectively segmented and targeted by products or services This drives the bottom line in several ways A stronger value proposition increases appeal thus driving revenue Better service and customer interaction improve the customer experience and increase customer loyalty driving customer lifetime value

The customer-critical path also becomes a vital decision-making tool for management It provides a clear and unbiased perspective on where resources should and should not be spent It defines the relative worth of projects assets and expenditures painting a clear picture of what the results will be if the customer-critical path is not

properly maintained

And if your mission and vision statement says you are customer-centric it makes your strategic plan more than simple semantics It makes it actionable setting your organization on a path towards true differentiation and market leadership Properly crafted the customer-critical path becomes a pleasant stroll through the park for your customers and it can also become the most profitable path for your organization

David F Giannetto is CEO of The Telos Group co-author of The Performance Power Grid The Proven Method to Create and Sustain Superior

Organizational Performance (J Wiley amp Sons 2006) and a professor in the Executive MBA program of Rutgers University

Mr Giannetto can be reached by email at dgiannettotelosconsultingcom

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Vol 6 Issue 2 2009

I Introduction and Background

Who the NMDP is

The National Marrow Donor Programreg (NMDP) and Be The Match FoundationSM are non-profit organizations dedicated to creating an opportunity for all patients to receive the bone marrow or umbilical cord blood transplant they need when they need it Every year thousands of people of

all ages are diagnosed with leukemia and other life-threatening diseases Many of them will die unless they get a bone marrow or cord blood transplant from a matching donor Seventy percent of people do not have a matching donor in their family and depend on the Be The Match RegistrySM to find a match to save their life

The Beginning

When their 10-year-old daughter Laura was diagnosed with leukemia Robert Graves DVM and his wife Sherry were ready to do anything they could to save her They agreed to try a bone marrow transplant from an unrelated donor ndash the first ever for a leukemia patient Laura received her transplant in 1979 at the Fred Hutchinson Cancer Research Center The treatment gave her an extra year and a half of life

The National Bone Marrow

Donor Program

The Balanced ScorecardVision into

Action JourneyBy Howard Rohm

President amp CEO Balanced Scorecard Institute under the guidance of The National Marrow Donation

Programrsquos Michael Boo Chief Strategy Officerand John Rudrud Senior Analyst

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Vol 6 Issue 2 2009

The experience inspired Dr Graves to create a national registry of volunteers willing to donate marrow His early efforts brought together other patient families and transplant doctors spurring a federal mandate that led to the creation of the National Marrow Donor Program NMDP began connecting patients with unrelated donors in 1987 with a registry of just 10000 volunteers

What the NMDP Does

The Be The Match Registry has grown to more than seven million donors and over 150000 cord blood units the largest and most racially and ethnically diverse registry of its kind in the world Medical advances are making marrow and umbilical cord blood transplants available to more patients all the time Since 1987 NMDP has arranged for more than 35000 transplants to give patients a second chance at life Today NMDP facilitates more than 4300 transplants a year

Planning for the Future

Many more patients still need help In order to meet the needs of all patients NMDP will need to facilitate 10000 transplants per year by 2015 That is more than double the number of transplants the organization facilitates today NMDP is working to meet this need but canrsquot do it alone Efforts are sustained by

bull A global network of more than 490 leading hospitals blood centers cord blood banks and laboratories

bull Agreements with donor centers cooperative donor registries and cord blood banks worldwide through which the program provides patients access to more than 12 million donors and 300000 cord blood units

bull Continued support from the US government which has entrusted the NMDP to operate the CW Bill Young Cell Transplantation Program the federal program supporting bone marrow and cord blood donation and transplantation

bull Partnerships with corporations service organizations student groups faith-based communities and other organizations

A new and different way of thinking about the NMDPrsquos long-term strategy was required in order to make sure that NMDP would be capable of delivering 10000 transplants per year in 2015 ldquoBusiness as usualrdquo would not get the organization where it needed to be NMDP needed to identify and

aggressively improve in strategic areas critical to the delivery of 10000 transplants

II The Balanced Scorecard Approach

Background

The strategic planning system that had been used at NMDP up to 2007 was a fairly well-developed planning process that tracked initiative performance under seven primary areas of strategic focus While this approach provided a measure of strategic planning for the organization it was too focused on activities and projects rather than on impacts

Early in 2007 NMDP leaders Gordon Bryan Chief Financial Officer and Michael Boo Chief Strategy Officer began developing strategic metrics designed to identify measure and communicate progress in strategic plan objective areas

Selection

As the senior management team evaluated options to integrate broader strategic metrics with the existing strategic business plan the Balanced Scorecard approach emerged as a leading candidate during the initial assessment of planning models because it

bullEncourages development of strategic themes and provides the ability to focus on areas where long-term continuous improvement is needed

bullPermits identification of cause-and-effect relationships between Strategic Objectives within each Theme

bull Facilitates communication of Strategic Objectives that can be portrayed on a strategy map that is easily understood by all employees and stakeholders and shows how the perspectives work together to achieve the mission

bull Assures that the organization focuses on Strategic Objectives and Measures from a CustomerStakeholder perspective and a PeopleKnowledgeTechnology perspective (Historically the organizationrsquos focus was skewed toward the Process and Financial perspectives)

bull Enables leadership to track Strategic Objective performance over the long term rather than tracking the status of supporting projects and initiatives

bull Creates a framework for prioritization of projects initiatives and funding opportunities based on contribution to and support of the Strategic Objectives

bull Allows organizational Strategic Objectives to be cascaded into Department Objectives thereby giving each employee

a more specific understanding of how his or her work impacts and contributes to the Strategic Objectives

bull Drives long-term continuous improvement as Strategic Measures improve over time

bull Facilitates a ldquolearning organizationrdquo where corrective actions are implemented in cases where Strategic or Department Objective Measures are not being met

The NMDP planning team looked at a number of planning models ndash including Balanced Scorecard Six Sigma Lean and TQM ndash and concluded that the Balanced Scorecard approach provided the most versatile and relevant framework for future growth and organizational development

III Scorecard Development ndash NMDP Officer Input

Early to mid 2007 NMDP began the Balanced Scorecard development effort with the help of consultants from the Balanced Scorecard Institute

A comprehensive review of the organizationrsquos strengths weaknesses opportunities and threats organizational pains organization enablers vision and mission was conducted over several days with NMDP officers and senior management These sessions produced a new Mission and Vision Statement and four Strategic Themes (rather than the original seven)

The former mission statement Extend and improve life through innovative cellular transplant therapies was changed to We save lives through cellular transplantation ndash science service and support

ldquoThis new mission statement captures and communicates more directly why we exist and it clearly articulates the three ways that we are able to save livesrdquo explained NMDP CEO Dr Jeffrey Chell

The Overarching Strategic Result in place of a vision statement was developed and shared with employees throughout the organization Meeting the need for 10000 transplants per year by 2015 The senior management team developed a longer more descriptive version of this statement but felt that the shorter version had more impact

ldquoWersquove found that the Overarching Strategic Result has been a great tool to get people thinking about how we will manage

to do more than double our current transplant volumes in a relatively short time ndash just five years from nowrdquo explained initiative sponsor Michael Boo ldquoThis has driven a lot of creative thinking around how to dramatically improve the efficiencies and cost effectiveness of many internal systems and delivery processesrdquo

The four Strategic themes that the NMDP officer group developed and agreed upon are

bull Global Access and Acceptance ndash Getting to Yes Overcome non-cell source barriers to transplant (eg no insurance no transportation no post-transplant support)

bull Deliver Excellent Stakeholder Experience Overcome Cell Source Barriers (making sure a cell source donation is available when itrsquos needed ndash adult or cord)

bull Research Pursue research to improve cell transplantation as a therapy

bull Culture of Excellence Keep up-to-date with talent structure and resources needed to continually improve transplant services

IV Scorecard Development ndash Senior Management

Throughout the spring and summer of 2007 four Theme Teams comprised of senior management met to develop

Theme Team strategy maps that included Theme Objectives by Perspective and proposed Measures for each Theme Objective These served as detailed roadmaps with specific objective areas identified ndash where NMDP needed to focus in order to improve them

The four Theme Team maps were subsequently

combined into an NMDP Strategy Map that included all relevant components from each theme This NMDP Strategy Map is comprised of 13 Strategic Objectives 46 Strategic Measures and seven Strategic Initiatives

Narratives were captured regarding the intent and ultimate end state for each Strategic Objective and detailed descriptions were created for measurement information including rational frequency owner and unit of measure

At this stage in the process the team named the Balanced Scorecard tool ldquoVision into Actionrdquo or ViA ndash NMDPrsquos strategic Performance Management tool On June 1 2007 the ViA Themes and NMDP Strategy Map details were presented to the board of directors by senior management and approved along with a plan to proceed to the next phase of department cascading

A ViA Communications Team was formed to communicate ViA progress to employees on the development of the new Mission Statement Vision Statement and the 13 Strategic Objectives This was done through a combination of pulse checks newsletters

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Vol 6 Issue 2 2009

intranet messaging e-mails from the CEO leadership training all-staff meetings and promotional contests This was an extremely integral step in the ViA roll-out that provided transparency and generated excitement around the benefits of ViA

V ViA Department Cascading

All departments at the NMDP were scheduled for sessions to develop their department Objectives Measures and Initiatives These were facilitated by internal subject matter experts and included an initial two-day exercise to help the department identify where and how each department contributed to the NMDP Strategic Objectives Worksheets and other preparation material were provided to each participant and collected prior to the cascade session The pre-work information was used to expedite the affinity exercises at each session

These were followed up with sessions to finalize detailed measures with individual measure owners Department teams were comprised of five to 10 key members of each department

The department cascading efforts provided a number of primary benefits to the organization including

bull The articulation in easy-to-understand terms of how each department contributes to the overall success of the Strategic Objectives and ultimately the NMDP Mission

bull A tool to identify gaps or overlaps between departments that can also be a tool for departments to communicate with each other in terms of supporting initiatives

bull A tool for each department to prioritize initiatives and activities Also it provided a mechanism to support requests for funding new opportunities

bull A clear framework for corrective action where measures are not being successfully met

bull A common format and mechanism for reporting department performance to officers and senior management

bull A common format and mechanism for reporting and reviewing department performance with staff

bull Help with the development of individual job performance appraisal content ndash which should be designed to support Department Objectives

Department Cascading was complete in early 2009 There are over 200 separate department measures that are tracked each quarter

VI NMDP ViA Today

NMDP has established a department Champions Council Members of the Council are becoming experts at using the automated ViA software Today this is being used at department staff meetings to facilitate discussion around corrective action for underperforming or unacceptable Department Measures Departments use the department Strategy Maps to guide staff meeting discussions on performance measures and corrective action plans

ldquoAll business cases or requests for funding must be submitted with clear tangible descriptions of how the effort will impact ViA Strategic Objectivesrdquo explained Boo ldquoOnce all business cases have been submitted to the officer group for final approval they are prioritized in order of their impact on ViA Strategic Objectivesrdquo

All strategic and department measures are required to be reported into the ViA system each quarter Each is color coded based on an officer-approved target matrix Each measure owner is required to provide comments regarding the measure performance for the quarter and discuss how he or she expects the measure to end the fiscal year This information is shared with senior management for review and follow-up with measure owners ifwhen necessary

Senior management uses the color-coded NMDP Strategic Map as a basis for discussing quarterly performance and identifying

Strategic Objective areas that may need attention corrective action andor more resources NMDP tries to focus not only on corrective action items but also highlight success stories where outstanding performance has been reported

All employees will soon have access to the web-based ViA application to provide as much transparency and visibility as possible in order to become a truly strategy-focused organization

ldquoVision into Action has been successful within the organization to a great extent because of the consistent support and guidance provided by NMDP leadership including our CEO Dr Jeffrey Chell my fellow Officers and the Board of Directorsrdquo said Boo

Howard Rohm President and CEO of the Balanced Scorecard Institute is a Performance Management trainer consultant and technologist with over 40 years experience Mr Rohm has helped dozens of organizations worldwide build Balanced Scorecard and other performance planning and management systems

48

Pe

rform

Mag

azine

Info

rmatio

n in

Actio

n

A community for BIRT users and developers sponsored by Actuate

A Report Writing Portal lets your end users browse reports modify them and even develop

new ones You can set one up in three steps when you use AJAX-based BIRT technology

Because the end user tools to modify and create reports are AJAX-based therersquos no desktop

software to install Users get the reports they need quicker while the burden on development

resources to create new reports is reduced

BIRT Exchange is a community site that offers the broadest collection of resources for the Eclipse BIRT (Business Intelligence

and Reporting Tools) project and for integrating spreadsheets with Java The site is sponsored by Actuate a co-leader of the BIRT project

Sponsored by

See a Demo

at Booth

602

For More Information

Contact us by phone at 1-800-884-8665

1-913-851-5300 from outside of the United States

wwwbirt-exchangecom wwwactuatecom

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Vol 6 Issue 2 2009

JCIrsquos previous approach of one-off negotiating as well as its spirit of continuous improvement and customer focus meant that it had only one-off measures in every location The company for example had 127 variations of the measure lsquomaintenance managementrsquo Many were very similar but since they were not exactly the same they could not be compared effectively Inefficiency at gathering and maintaining data at different locations across the globe made the task difficult as well Data was collected any way possible thrown into a cell or a Power Point slide and handed in at the end of the month It was highly inefficient extremely customized at every location and did not allow any ability to benchmark compare or look at best practices These concerns and requirements drove JCI on its scorecarding journey

The Solution

In initiating its scorecarding solution JCI first had to establish the right measures Business leaders were chosen for all of the scorecard categories and for each of them a business owner was selected for each region these business leaders and owners were responsible for defining the standards and measures Data collection systems in some cases proved difficult there wasnrsquot always centralized information available ndash in some cases data needed to be gathered right down at the account level This meant that the process of data collection and identifying measures was a significant job To get started though JCIrsquos web programmers were able to put up some scorecards quickly to allow the company to start architecting measures this allowed business leaders across the globe to start identifying their measures and to put the processes in place regionally to collect information

Before committing to a technology JCI wanted to know 100 percent of their business requirements and this was the point of their web-based scorecard To assist in this endeavor Actuate ndash prior to selection ndash let the company test drive their product The JCI team went through and looked at every single screen determining where they had to configure the tool and for every single screen they also made what they called a lsquoblueprintrsquo creating an Excel template with fields to correspond with every field on each screen It was incredibly detailed work but they wanted to ensure no mistakes were made and that the business requirements were defined To accomplish this there was an extreme amount of detailed coordination globally with twice-weekly meetings for the worldwide team in charge of the initiative A byproduct of the process was that the team learned to use the Actuate BIRT Performance Scorecard and basically built all of the blueprints for the project design

JCIrsquos audience for the project upon kick off were the 300 external customers that would have access to this information Customers previous to this were getting their information via Excel and PowerPoint In addition to these external customers was the population of approximately 1000 internal users within JCI itself These included account leaders and functional leaders including those from HR Finance Safety etc

Three primary functions of the project were

1 To replace the PowerPoint slides used in global and regional monthly internal operational reviews

2 To very quickly be able to become best in class JCI wanted everyone who had an account to be able to see where they sat compared to their peers This provided individuals ndash when faced with a problem ndash the ability to quickly identify and contact others who had solved the same issue

3 To standardize customer faith in contractually required performance measures This was a key goal of the company which felt that if they were going to benchmark and compare they needed to bring in the best practices learned at one location to their work at other locations

These three primary functions were heavily loaded in JCIrsquos rating system as the company set out to choose the right software for their scorecarding project It was also important that the software be intuitive as there was no time for hundreds of hours of global-wide training The software had to be rapid and easily configurable with limited IT assistance As JCI is a very large organization with a lot of systems in place the team in charge also wanted the software to be easily adjustable to the companyrsquos rapidly changing business they didnrsquot want to have to get into queue for IT every time a change had to be introduced or a new customer added

JCI Chooses ActuateFour vendors were evaluated for JCIrsquos scorecarding project with a global team in place to provide a systematic discussion of the defined business process and requirements The product chosen was the BIRT Performance Scorecard JCI had 30 days of Actuate Professional Services and planned for monthly micro improvements and quarterly macro improvements

Upon purchasing the BIRT Scorecard in January 2007 using the blueprints theyrsquod established already the company wrote their business processes They were able to go live in 90 days helped by the homework they did with the blueprints the web scorecard and the data collection processes It was an incredibly smooth implementation overall

The Results

Whereas JCI originally started out with a model of one-off negotiations with customer measures the scorecarding project has led to approximately 70 percent agreement on JCI standard metrics The company does a customer satisfaction survey both annually and quarterly and aims to demonstrate evidence towards continual improvement

Since implementation of the project the company has also been solving its data integrity issues Previously two regions might have been using the same words but not the same data collection methods ndash this made it impossible to introduce benchmarking and comparison between areas Now those problems are being solved and benchmarking and comparison are possible to the benefit of both JCI as it strives for best-in-class status and its customers

By David F GiannettoCEOThe Telos Group

Johnson Controls Incorporated (JCI) is a $38 billion company with a total of 140000 employees working out of more than 1300 locations in 125 countries worldwide Headquartered in Milwaukee Wisconsin the company provides a range of services including

real-estate portfolio management property management facility management and design and construction services

To initiate its scorecarding project JCI began by creating five categories of measurement Business Performance (this includes all financial measures) Service Delivery Customer Satisfaction Safety and People While the other four categories may be typical to most organizations the Service Delivery category was designed to take JCIrsquos measurements down to the client-site level which includes over 300 locations globally where the company has contracts In some cases there might be one staff member assigned to manage a single building while other times a staff member has a whole portfolio they maintain Measuring performance at all of these locations and levels proved a complex undertaking

Strategic Initiatives

Like all service providers JCI has to demonstrate that they add value Scorecarding allows them to do this both internally

and externally using data-driven results Since JCI has always been very much a data-driven organization anyway with a manufacturing background this was a natural fit for the corporation

JCIrsquos organization-wide motto is to be as good everywhere as they are somewhere Theyrsquove found that in any one account they may excel in several areas but perhaps not in all areas elsewhere though on another account someone else might have the skills needed to fill in those gaps The companyrsquos goal was to share information and communicate it between different locations across the globe allowing the company as a whole to get better faster and to benefit from the skills and strengths of its individual members Scorecarding was introduced as a way to help share this information and to introduce benchmarking within the company

The Requirements

To get started on their scorecarding initiative JCI examined each of their US contracts What they found was that there were no standards between clients and therefore no ability to benchmark Customers though wanted the ability to find out how they stood in relation to other customers This was impossible under the circumstances

Global Operational Excellence and a Performance Scorecard System A Case Study of

Johnson Controls Incorporated

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Out of Touch With Crucial Data

Previously when Helzbergrsquos divisional and regional vice presidents went on the road access to their key performance metrics was restricted Without a laptop and a WiFi or hotel network connection to the internet they were ldquoflying blindrdquo according to Greg Backhus Helzbergrsquos Director of Data Warehouse and Decision Support Systems As a result they did a lot of faxing it was the only way they could get the current data that they needed in order to

About Webalo

Webalo technology transforms enterprise applications and data to make them compatible with mobile

devices This eliminates the need for traditional custom programming reducing the deployment of mobile applications from weeks or months to in most cases less than a day The resulting ldquoanywhere anytime on-demandrdquo availability of enterprise data on handheld devices turns such devices into viable alternatives to desktop laptop and palmtop computer hardware and lets mobile employees work more productively ndash on the spot ndash to solve problems answer questions monitor operations close sales and make informed decisions

The Webalo Mobile Dashboard Service ndash available in both internet-based and enterprise intranet-based implementations ndash lets non-IT business administrators securely specify the content of mobile-accessible information and the companion Webalo Proxy Server configures it in seconds to conform to the native user interface of any BlackBerry Windows Mobile Pocket PC Palm Symbian or Java-enabled smartphone

CLARITY CUT AND CARATSHow Helzberg Diamonds Made Sales Data Clearer Eliminated

Delays and Lightened the Load for its Divisional Executives

A diamond may be forever but a lot has changed in how theyrsquove been marketed and sold during Helzberg Diamondsrsquo nine decades in business A single store has expanded to nearly 300 locations from coast to coast and border to border Sales can also be made online now And information about every sale can be accessed in an instance through the companyrsquos enterprise systems

bull Compare actual sales to their goals and plans

bull Determine transaction counts for total dollar volume and average sales value

bull Break down sales by product category

bull Monitor attachment rates for products and services related to the main product sale

For example onsite at individual stores it was difficult to gauge how an active price-reduction sale was affecting unit and dollar

volumes unless there happened to be a coffee shop next door with a WiFi connection that would let Helzbergrsquos executives access the enterprise system

The Three Cs of Information Access

The three Cs of diamond grading ndash clarity cut and carats (or weight) ndash turned out to be applicable to data access as well But it took a transition to handheld devices and to the Webalo Mobile Dashboard to achieve it

Though laptop computers had gotten lighter and lighter over the years they were still considerably heavier than the Pocket PC-based smartphones that Helzbergrsquos executives used Since they were carrying those handhelds in addition to their laptops the VPs were open to the idea of being able to

bull Access sales metrics on their handhelds

bull Have data available on-demand from any location with a wireless signal

bull Navigate quickly to the figures they needed

bull Get updates to their metrics automatically

bull Review the information offline

It was the only time that carrying less weight ndash or carats ndash added more value Using a simple step-by-step wizard Helzbergrsquos support staff was able to configure their enterprise reports in a matter of hours They then assigned access privileges to each executive to control who could see what information and uploaded the file to the Webalo server That satisfied how data was ldquocutrdquo

For each mobile user regardless of the brand and model of smartphone they used the Webalo Mobile Dashboard conformed the information to the devicesrsquo user interface The application worked and looked exactly like any other application developed specifically for their mobile devices the on-screen text was easy to read and navigation used the same menu structure That meant there was no learning curve to delay user acceptance and productivity Clarity was essential and the Mobile Dashboard delivered it right down to the ability to bookmark commonly-referred-to displays for instant reference enhancing on-the-spot productivity even more

Speed and Simplicity

Productivity was also improved on the IT side Without the need for custom programming to conform the information to each smartphone brand and model deployment was reduced from months to hours

Since adopting the Webalo Mobile Dashboard Backhus says ldquoThe Divisional VPs find it invaluable They get more done because they donrsquot have the delays they used to haverdquo Decisions that used to have to wait for current data are now made right away relying on the right data presented in the right format

44

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Sustainable practice has graduated from being market hype

to becoming a strategic initiative important for driving a successful enterprise It not only reduces a companyrsquos impact on the environment but can help organizations achieve a competitive advantage to build their brand impact top and bottom line and improve customer acquisition satisfaction and retention

Creating a road map towards sustainable management can require an entire shift in corporate thinking one that involves searching for buy-in at all levels establishing useful metrics and introducing practices that get beyond the green hype The end result though is not just a greener organization but also one with a more prosperous future

Why Sustainability

In August 2008 a survey undertaken by CIO Insight examined green practices in business focusing on the reasons why CIOs introduce sustainability efforts into their organizations The number one reason why organizations went green the study found was that the people within those companies sincerely had a concern for the environment A total of 74 percent of respondents answered that way 32 percent of which listed it as their most influential driver

Other influential drivers named in the survey included

Financial Drivers Companies found sustainability to be a way of cutting costs If they could cut energy costs not only would that help the environment but it would also help create cost savings The second most popular answer in the CIO Insight study financial impacts are key to implementing sustainability in most organizations Examples of financial impacts possible from sustainability were presented at CFO

2 The CFO Green

Conference which took place in May 2008

bull Dupont reduced its CO2 emissions by 70 percent saving the company $3 billion

bull FedEx redesigned its delivery trucks making them more aerodynamic This reduced the amount of particulate pollutants nitrogen and carbon the trucks put into the atmosphere and it also reduced the companyrsquos fuel costs exceptionally

Customer Image In the CIO Insight survey the third motive listed by CIOs for introducing sustainability ndash at 64 percent ndash was company image Consumers are becoming more and more aware of whether companies or organizations are living up to sustainability ideals They will notice if a company image or brand value reflects this concern for the environment Meaningful sustainability efforts can help gain customer approval as in the following case

bull Wal-Mart and Procter amp Gamble together agreed to sell liquid laundry detergent only in concentrated form This saved shelf space for Wal-Mart reduced water use by 400 million gallons for Procter amp Gamble and eliminated 45 million pounds of plastic waste

Regulatory Requirements The surveyrsquos fourth most popular reply ndash at only 25 percent ndash were current or potential regulations including the cap and trade systems being implemented which will require companies to buy carbon and sell carbon credits

Shareholder Pressure Finally at fifth in the CIO Insight survey ndash with 14 percent of responses ndash was shareholder or public pressure pressure building from shareholders to put forth sustainability efforts Pressure at this level is often mixed though as shareholders are also likely to express a desire that they donrsquot want shares to decline in value The general message may be that it is fine to introduce sustainability measures only as long as there is no risk that they will hurt the company

A Road Map Towards Sustainability

Step 1 Identify What Drives Your Organization

The first step in the road map towards sustainability is identifying key drivers Some drivers vary from one organization to another while others seem to drive any organization regardless of the industry Drivers incude

Internal drivers

bull Cost cuttings and savings

bull Employees including both the satisfaction of current employees as well as the recruitment and retention of future employees

bull Investment

External Drivers

bull Stakeholders including both those within the company ndash the employees discussed above ndash as well as stakeholders outside of the company

bull Brand awareness because consumers are becoming increasingly aware of the choices that are available to them and are making choices based on a companyrsquos green initiatives

Future drivers

bull Tax incentives

bull The recruitment and retention of future customers

Step 2 Select Your Metrics

In general terms sustainability metrics will fall into one of four major categories those that affect the climate those that affect the oceans those that affect human health and those that affect common issues like the land the water the wildlife etc

Within those large categories are smaller areas of interest that companies must examine to introduce organization-wide sustainability management carbon monoxide use energy consumption water consumption and fuel consumption are prime examples

Carbon Monoxide Use Many of the questions companies are asking themselves in regards to carbon monoxide use include

A Road Map of Key

Sustainability Metrics

That Impact Bottom

Line

46

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Vol 6 Issue 2 2009

bull How much carbon monoxide do we produce

bull Which processes in our overall manufacturing or delivery use produce the most emissions

bull Can we determine the indirect emissions For example leave a computer plugged in and itrsquos still on the grid creating an indirect carbon dioxide emitter How can we measure that

bull Whatrsquos our cost Do we have metrics that tell us what our CO2 emissions cost us

bull Can we predict into the future If we continue on this path without doing anything where will we be next month Next quarter Next year

Some examples of metrics related to carbon monoxide use include carbon dioxide emissions per employee (similar to revenue per employee) carbon footprint metrics and transportation distances

Energy Consumption Areas of interest related to corporate energy consumption may include the following

bull How much do we consume From what sources

bull Are we on the grid Are we using solar power or wind power or another alternative power

bull How much is used by our data center How do we make the data center greener

bull Where can we reduce consumption

Companies today are reducing energy consumption in a variety of ways by introducing energy audits and looking at energy-saving appliances and also through energy incentive programs for employees within which companies can incentivize and introduce bonus plans

Water Consumption An examination of a companyrsquos water consumption may include some of the following queries

bull How much water do we currently use and where

bull Where in our processes do we use the most water

bull Can we predict how much wersquore going to use in the future

Some of the examples of metrics that companies introduce in terms of water consumption include improved water quality how much impact low-flow or low-volume toilets have on water consumption and how much water is or can be recycled

Fuel Consumption Questions to consider in relation to fuel consumption include

bull How much fuel do we use

bull Where are the inefficiencies

bull Whatrsquos being predicted for fuel usage in the future

bull Can we analyze our logistics so that we can determine how to reduce our fuel consumption For example where are our trucks traveling How are they traveling What kinds of loads are they carrying

Step 3 Recognize Challenges

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly As such easier ways to enhance communication and to increase visibility need to be introduced both inside and outside of an organization

There are also constantly evolving requirements measures and standards of success With everything so new companies are challenged to find ways to compare their sustainability efforts with other organizations The biggest challenge in implementing these processes or attracting metrics may be that they require an entire shift in thinking Additional challenges that exist in the implementation of a sustainability model include

1 Financial concerns Companies must truly see potential for returns on investment or these initiatives can become non-starters or stall

2 Lack of regulatory motivation While not as common as it once was certain organizations arenrsquot motivated to introduce sustainability until government regulations are in place

3 Lack of a formal strategy for sustainability Without a formal strategy it is difficult for companies to determine where they need to go

4 Determining appropriate metrics Companies must choose metrics that are useful demonstrate impact and say something about their own corporate environment

5 Calculating metrics Standard algorithms and calculations exist to calculate metrics but companies must find the appropriate ones and use them

6 Finding quality data to plug into those calculations As in any Business Intelligence project if the quality of the data is questionable then so are the sustainability metrics themselves

7 Determining the scope of the sustainability project The scope is critical Narrow it down to something achievable feasible and useful

Step 4 Learn from Best Practices

What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde

bull Assign an executive champion Without an executive champion to drive the project initiatives are more likely to lack a holistic view and a clear vision for an implementation strategy they may take longer to implement and theyrsquore less likely to yield the required results To provide motivation consider linking the championrsquos salary directly to sustainability savings or to the increased revenues that result from sustainability efforts

bull Implement internal training and education Educate employees on what to expect and what is expected from them

bull Improve communication Communicate both to employees and to stakeholders outside of the organization

bull Start to think about alternative energy management and control strategies

bull Engage the use of technology and services For companies not sure where to begin a sustainability consultant can assist with program selection as can vendors such as Actuate which has a sustainability management solution in place

Step 5 Get Started

Understand that sustainability development is a business opportunity Donrsquot look at it solely as environmental although that is also important Itrsquos an opportunity for companies to introduce more cost-effective processes and procedures and to become more cost effective in their vehicle fleet manufacturing delivery etc

bull Create globally consistent metrics and goals Large agencies have to make sure that the entire group is on board and that they have consistent metrics and consistent goals across the enterprise

bull Find the value and drive the action What is the value of monitoring these sustainability areas and whatrsquos the course of action if you see that theyrsquore going off kilter or are not tracking as expected

bull Start small Initiatives such as these can become incredibly complex very quickly Start small and build in the complexity with each ensuing project

bull Get buy in People need to understand what the metrics are why theyrsquore there and what they mean to each individualrsquos situation (as reflected in individual bonus plans perhaps) Measure using industry-accepted methodologies and industry-accepted protocols continually improve metrics through optimization and forecasting and constantly optimize metrics and forecast into the future

bull As much as possible accurately report to everybody environmental performance Let employees shareholders customers and regulators know If data is questionable fix it get quality processes in place and then run the metrics

bull Determine environmental impact Has waste been reduced Has resource utilization been reduced Has the company improved environmental factors

Also consider using an Open Source vendor The Open Source community is beginning to develop sustainability metrics and Open Source reduces the costs of developing metrics while software costs for the project are reduced as well

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly ldquo

rdquo What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde ldquo

rdquo

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Vol 6 Issue 2 2009

Step 6 Move from Green Hype to Sustainable Action

A successful sustainability initiative involves identifying metrics that will translate into cost savings and benefits while avoiding metrics that are not likely to yield required results To accomplish this start small start with a small department within the organization and then repeat this continuing to repeat it throughout the enterprise

bull Start with basic conservation Change behavior reduce consumption and in the process increase investment

bull Start reusing Improve productivity improve efficiency and create less waste

bull When this translates into cost savings re-invest Grow make larger improvements and increase involvement

Projects that make good starting points

bull Measure carbon dioxide emissions throughout a value chain or product lifespan Look for potential improvements

bull Ensure regulatory compliance By knowing what the regulations are companies can determine what metrics need to be in place

bull Identify ways to promote and profit from more environmentally-respectful goods and services Companies can promote environmentally-respectful goods and services while also using sustainability to help the company

Monitor the effects of each project to determine which strategies have the most impact both physically in terms of

the environment and financially in terms of revenues and cost savings Publicize how metrics are tracking over time

Actuate for Sustainability Management

Actuate for Sustainability Management is a solution by Actuate that integrates highly interactive visually rich dashboards There are pre-built sustainability scorecards strategy maps and over 100 pre-built metrics across the economic social and environmental aspects of sustainability

The Actuate BIRT Performance Scorecard supports the metrics defined including

bull Reducing an organizationrsquos environmental footprint

bull Building green facilities and buildings

bull Compliance and reporting

bull Manufacturing

bull Community and engagement

bull Human development including employee well-being and satisfaction

Actuate for Sustainability Management provides collaboration across regulators consumers and non-governmental organizations Dashboards and scorecards come integrated with reporting so as to improve reporting to stakeholders both outside and inside of an organization All of the products are built on Actuatersquos dependable cost-effective and scaleable platform

Performance Management solutions help organizations understand act on and influence business decisions processes and measures of business success The 2009 Actuate Performance Management Excellence Awards will honor customer success stories in four key areas Over the next several issues Perform Magazine will highlight some of the entries in these categories

Category 1 Go Green

Each year the concept of environmental responsibility has implications for both the private and public sector specifically with regards to how each measures the performance of their operations For organizations using the Actuate BIRT Performance Scorecard to measure the progress of organizational Green initiatives how have they responded to the challenge and how do they use the BIRT Performance Scorecard to ensure they stay on track

Category 2 The Perfect Slice

Successful Performance Management comes in all sizes Some initiatives are enterprise-wide while others are focused around specific business units or functions yet still encompass a holistic approach to Performance Management by looking beyond financial indicators to a more balanced set of indicators This category includes organizations deploying the Actuate BIRT Performance Scorecard with a focus on improving the performance of individual business units or functions and includes the measurement of people and processes

Category 3 Big Bang

Carefully executed Performance Management initiatives begin with a measured approach to the initial implementation and quickly expand to other parts of the organization aligning business units to strategy at each step This category is open to Actuate customers who initially implemented the Actuate BIRT Performance Scorecard to a limited user community and through careful change management and planning expanded the use of the BIRT Performance Scorecard throughout the organization

Category 4 Super Size

Award-winning enterprises achieve breakthrough results in the financial customer operational and people perspectives of their business and leverage internal champions across the organization to ensure ongoing and sustainable success The key to achieving these results lies in total visibility of all business units aligned to strategy This category is open to any Actuate customer with a fully deployed enterprise-wide Actuate BIRT Performance Scorecard implementation

Actuate Performance Management Excellence Awards2009

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HealthNow New York Inc headquartered in Buffalo is one of New York Statersquos leading healthcare companies doing business as BlueCross BlueShield of Western New York BlueShield of Northeastern New York HealthNow in the Central New York region and Brokerage Concepts Inc in Pennsylvania

Improving the health of people and communities are HealthNowrsquos corporate priorities and for more than 70 years the company has been a proactive partner in health working to improve the quality of care and the quality of life for everyone it serves In 2008 HealthNow provided access to care to more than 820000 members and in 2008 company revenues grew to $227 billion

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution and describe what you were trying to achieve as a group function or department

A few years ago HealthNow New York Inc determined that the key to its continued success would be its ability to differentiate itself from other healthcare plans in ways that could not be readily duplicated or copied by their competitors In an increasingly crowded marketplace to get the attention of new customers and retain existing ones HealthNow needed to set itself apart from others

This lasting competitive advantage needed to come from an organizational culture that was dedicated to a relentless focus on meeting customersrsquo needs It needed to be highly responsive supportive flexible and nimble particularly as the healthcare marketplace continues to change with more responsibility placed upon its customers

To that end a new business model was implemented to provide the framework for customer focus Under the new structure the company was divided into four strategic business units (SBUs) each responsible for financial contribution customer satisfaction medical utilization and market share of a specific book of business

Each SBU includes its own set of functions including sales account and broker management product configuration customer intelligence pricing enrollment and billing customer service medical management and HR support Each business unit is led by an executive who is fully accountable for the unit operations and for bottom-line performance of the entire business unit Each SBU is supported by various corporate support functions (Actuarial IT Legal etc)

Implementation of the new business model began with a reorganization of the senior management structure The senior management of each SBU has specific incentive goals as well as strategic goals aligned with the corporate incentive Those strategic goals then drill down to ldquoteamrdquo incentives and to a blend of strategic and operational goals

This was a completely new way of looking at our business It was a blank slate requiring new processes and new methodology as well as an examination of existing metrics and processes to determine what added value and where the strengths weaknesses opportunities and gaps were

Under this new structure the Government Programs State and Federal products SBU ndash which historically had some inefficient end-to-end processes lacked internal controls and had minimal oversight of financial performance ndash was able to set a foundation and develop a growth strategy In order to achieve this mission and to align track monitor improve and communicate performance the Senior Vice President of the Government Programs SBU elected to utilize a Performance Management framework via the Actuate BIRT Performance Scorecard

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

As a point of reference the Government Programs SBU is comprised of a State Government Programs team a Federal Government Programs team an Operations team and a Sales team The Performance Management design team was comprised of the Actuate system administratorfacilitator the Government Program financial reporting manager and two SBU data analysts Input from the various teamsrsquo management staff was gathered as the design got more granular

Discussions around the design of the Government Programs scorecard began with two basic questions

1 What are the handful (ideally six to eight) of key performance indicators that are necessary to run and manage your business and to indicate that yoursquore on the right path to achieving your goals

Defining the key performance indicators was a challenge that required the Actuate system administrator in a facilitative role to get intimately involved in order to keep the discussions focused and high level and to limit scope creep The incentive goals were clearly defined at the corporate and SBU level however the tough question was how should they drill down in the BIRT Performance Scorecard The facilitator posed the following questions to the other members of the design team

bull How do you usually look at your business

bull How are the primary source documents that capture this information structured

bull What other ways do you look at your business

Taking the answers to these questions a step further the facilitator asked the next question Is the drill-down structure the same for the core strategic or team metrics The answer was yes By taking this approach we were provided with consistency in how the teams look at their business and the performance of their core indicators

Once the incentive and strategic goals were identified more leading and lagging operational measures were defined such as

bull Call centers

bull Accuracy

bull Quality

bull Sales Performance

2 Who is your audience

Through the entire measure selection and definition process the design team was constantly reminded to keep a second question ndash who is your audience ndash in mind This helped keep the focus on the critical few and keep the number of metrics down to a manageable amount Links to supporting documentation were created to provide easy access to the granular data without burdening the scorecardrsquos objective

The audience in this case was the SBUrsquos Senior Vice President followed by the State Director Federal Director Operations Director and Sales General Manager It then cascades down to each directorrsquos management team and the data providers

In order to provide a complete and consistent picture of State and Federal performance for senior management where

gt Performance Management Excellence Awards

HealthNow New YorkCategory 2 Entry The Perfect Slice

gt Performance Management Excellence Awards

[ Figure 131 Homepage Map ]

52

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Vol 6 Issue 2 2009

possible the same or comparable measures were created for each team For example when looking at the various call center metrics ndash even if the definitions and targets slightly differed ndash if one team was consistently exceeding or meeting their target it sparked group discussion around best practices processes staffing and target definition

Utilization of Maps continues to play a major role in communicating performance Again focusing on our audience there is a Map at the Senior VP level which then links to a high-level Map for the State director and staff and for the Federal director and staff The one-page snapshot allows management to easily view performance then to drill down to specifics via additional detailed Maps or Books Because the audience embraces the Maps concept a ldquoWhere is itrdquo Map containing all Maps and Books by SBU was created Itrsquos a quick and easy reference tool

3 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

Quantitative results are achieved through the promotion of visibility and awareness The Return on Investment may not fit a conventional definition but can be measurable and accomplished by challenging the data targets and accompanying commentaryaction plan narrative to drive performance improvement Are the targets realistic yet aggressive Are action plans being documented and carried out Are the actions discussions and decisions leading to improved performance and processes

Government Programsrsquo membership is measured and monitored in various ways via the BIRT Scorecard and other sources For example Federal membership is measured by product then by plan It is also measured by market then by product then by plan By creatively visualizing performance in multiple ways via a Map those same data results can sometimes become very obvious telling a different story that may not be obvious via standard reporting methods It may clearly illustrate that a specific product in a specific market is continuously under-performing for example Fact-based decisions can then be made as to whether or not to continue with this product in this market or it may initiate discussions as to how to grow and retain profitable membership for this product in this market

Another more recent example is an initiative to track claims-review savings By reviewing claims via various processes what savings can be recouped or realized What specific areas are State and Federal teams focusing on that can contribute to overall savings for the SBU Again where applicable there should be consistency in the metrics across

teams Placeholders are included to promote visibility to keep them in the forefront even though the data or processes may not be in place yet But by capturing results on one page via a Map it bridges potential gaps between the teams promoting awareness and synergy across the SBU

4 Qualitative results What ldquosoftrdquo or intangible benefits has the group department or organization received as a result of this solution

A major benefit of the scorecard framework for the Government Programs SBU has been the identification and alignment of roles responsibilities and accountability

The SBUrsquos Senior VP monthly leadership meeting focuses on four areas

bull Performance Performance is covered via the existing incentive strategic and operational metrics

bull Action plans Documenting action plans in the Performance Management Software Suite versus verbalizing action plans establishes ownership and accountability At subsequent meetings management follows up on key action items or plans to determine whether or not the corrective action did take place and if yes did it have the desired results

bull Strategic direction The strategic direction of the various teams is captured as a springboard to strategic thinking discussions and planning So as not to lose sight of short- and long-term strategic planning this aspect of the business now is housed in the BIRT Scorecard completing the strategic planning of the ldquoHow are we going to get thererdquo and ldquoAre we there yetrdquo cycle This holistic approach helps minimize the chances of our scorecard becoming too focused on operational performance and keeps strategic planning dynamic and visible

The value of these metrics is not in the data but in the commentary The individual teamsrsquo strategic direction ldquometricsrdquo are subjective red = 1 yellow = 2 green = 3 The target = 3 Each metric includes a description of the specific strategic path we need to research or move forward on as well as what goal achievement it supports The ldquodatardquo ndash or color ndash is based on basic questions like What did you hope to achieve this month vs What did you actually achieve this month Were there any successes barriers obstacles In addition to accountability the entire SBU benefits from the sharing of information having meaningful discussion taking appropriate action and collaboration

bull Key initiatives The last critical component is the identification and alignment of key initiatives that

are necessary to support achievement of the various incentives strategic goals and direction and operational goals As with the strategic direction metrics the value is in the narrative with the color reflecting what was accomplished for the specific reporting period

5 Innovation Why should this solution be considered an Innovative Solution What makes it unique groundbreaking and superior What unintended results did you realize

Over time the Government Programs Performance Management framework evolved into an innovative solution The process drives performance and isnrsquot necessarily focused on ldquocolorrdquo Rather itrsquos about having the right people in the same room on a regular basis to drive meaningful discussion and to take appropriate action to improve performance

Outside of the standard processes it was the monthly review process that drove effectiveness revisions enhancements and restructuring of the meeting schedule agenda and format The Government Program financial reporting manager would meet with each director and general manager to review their scorecard for completeness as well as for performance from an operational perspective The State and Federal team directors would then meet with their respective management teams to review and discuss performance results in preparation for the joint Government Programs Leadership Meetings The audience included the Senior VP down to team managers key data analysts (data providers) and support function representatives Through trial and error management learned to maximize their time and effectiveness by concentrating on key metrics and topics rather than trying to review all metrics identify leading indicators versus only outcome results and include strategic thinking and initiatives Today the monthly leadership

meetings are much more productive and look at strategic and operational performance

As involvement and participation increased in the team meetings as well as in the leadership meetings it removed silos opened communications enabled the sharing of information and best practices and promoted teamwork across the SBU But most importantly it brought about an awareness and a sense of unity and commitment within the SBU to achieve their goals something that was lacking before

While it was not part of the initial scope management realized shortly after implementation that efficiencies could be gained by replacing an in-depth hard copy monthly report with BIRT-generated results Since the BIRT Scorecard contained the same data with supporting narrative ndash plus additional metrics with narrative ndash monthly performance was captured via a monthly report Book various Maps and BIRT-generated reports Elimination of the hard-copy report was an unintended way of encouraging a more active use of the Performance Management software by management to monitor performance thereby increasing user familiarity with the contents features functionality and navigation

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

Sustainability is achieved through a continuous process of revisiting the scorecard when there are organizational changes looking at the business direction shifts goal changes process changes etc To ensure that metrics are still relevant a filtering process is held with each director and general manager every six to eight months or as necessary During this exercise questions such as the following are asked

gt Performance Management Excellence Awards gt Performance Management Excellence Awards

[ Figure 132 CEOrsquos Book ]

54

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Vol 6 Issue 2 2009

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

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3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

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  1. Button 3
Page 6: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

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will address how any organization can leverage its current Performance Management efforts and enhance outcomes and results by integrating and applying Lean Six Sigma If done properly organizations can use Lean Six Sigma with Performance Management to systematically improve operational performance by eliminating waste and by creating efficient business processes

For those who are not familiar Lean Six Sigma focuses on improving the quality of process outputs by identifying and removing errors and variability in manufacturing or business processes The Lean approach leverages statistical methods and analysis and requires that an organization create a special internal team of people who are experts in these methods (Black Belts Green Belts etc) As such Lean Six Sigma projects follow specific steps and have quantified targets Another way to look at Lean Six Sigma is as a project that is focused on cost savings and on removing mistakes or defects in a process

A Performance Management system is key to any Lean Six Sigma implementation Itrsquos the foundation from which Lean Six Sigma projects are built which means organizations that donrsquot have a functional Performance Management system are starting the Lean Six Sigma journey without the right tools Performance Management helps to clarify the business case to link projects to the bottom line and to provide a baseline of comparison as performance improvement occurs project by project If you donrsquot have a good Performance Management system you donrsquot have an effective method to set priorities in terms of which project you need to start on first

Performance Management then becomes the skeleton or backbone to Lean Six Sigma initiatives ensuring that you select the right projects that projects are linked to the bottom line and that they are done in the right order according to priorities that make sense And once the project is done Performance Management ensures that improvements are monitored and therefore sustained for long-term success

Initiating a Lean Six Sigma project begins with an assessment based on available Performance Management information You identify the approach you want to use ndash whether itrsquos Six Sigma or Lean will depend on what the challenge is ndash you execute the project and finally you monitor the business process to replicate the benefits Many times Lean Six Sigma will fail because of an organizationrsquos inability to replicate success yoursquove done a project there was success but you canrsquot repeat the process If you start off with a Performance Management system it becomes the DNA of the company that you can use to keep and maintain projects

There are 10 criteria that should be used as a baseline focus for the design of a Lean Six Sigma initiative integrated with Performance Management These 10 criteria will vary depending on whether yoursquore with government education healthcare or manufacturing and each has unique requirements that will impact how your program is going to be designed ndash but the fundamental principles in each criteria stay true across these segments

1 Customer Focus

Customer focus is one major criterion that will impact how a Lean Six Sigma initiative is designed Companies should be asking these five questions

1 Is the organization focused on the needs of the customer rather than just internal organizational requirements

2 Is there a process to capture the voice of the customer in an active way Are there surveys for example or are there means of talking to the customer to capture that information

3 Is that information collected Do they keep track of customer data

4 Is the data reviewed and disseminated so that people internally can understand how the organization is viewed

5 Are people aware of the internal customers as well as the external customers

This idea of customer focus is easy to grasp in the manufacturing environment because at the end of the day you are producing a product ndash a deliverable thatrsquos physical In other words many times when you go into a manufacturing plant there is some visual clue that gives you an idea of the extent of customer complaints especially external customer complaints There are also some areas of the organization that will be actively capturing the voice of the customer ndash in the marketing and engineering departments for example ndash communicating that information and using that information in the design process

Government organizations present a different challenge since customer focus is not something that is generally paid much attention to there What we find is that in the public sector you have a captive audience When you think about going to any public-sector organization ndash any city council or the mayorrsquos office etc ndash you are not there by choice As a result people within those environments lose sight of value because their remuneration is not tied to customer satisfaction instead they tend to be very internally driven and focused more on specific procedures that need to be followed and adhered to no matter what They donrsquot try to make things user friendly because they donrsquot have a natural customer focus built into their organizational DNA This is a major struggle in government

Similarly in the case of education customer focus is not a concept that is always embraced or translated in a way that produces desired results for stakeholders Individuals seem to forget or try to get around the idea that students are actually critical customers They are the deliverables of the entire educational system and their tuitions fund the school yet

despite this reality you still find professors and administrators who lose sight of who the customer is Again you have a service being provided without any dialogue or feedback and the people who are paying for it donrsquot get to ask any questions The customer focus is not very strong

Finally in healthcare everybody understands customer focus Everybody is panicked about the patient the safety of the patient and the care the patient needs But the system is not designed to deliver effective patient care they have not structured the system with that in mind Instead cost efficiencies and utilization take precedence

2 Leadership Commitment

Leadership commitment is also very critical to any Lean Six Sigma rollout What we typically find is leaders who are experts in their fields but who have limited or no knowledge of Lean Six Sigma they may hear of the terminology and think it sounds like a good thing but when itrsquos deployed they donrsquot get involved Companies that are successful in Lean Six Sigma are ones where management has been on board and an active part of the rollout from the beginning If management understands what Lean Six Sigma is about they can demonstrate the value it delivers therersquos a connection between processes and

business priorities and they can be more proactive in their involvement of Lean Six Sigma when these connections and the impact of their improvements are made clear to them

Traditionally leadership commitment in Lean Six Sigma has been weak no matter the industry In the manufacturing environment managers in some cases have bought on but in healthcare education and government leadership commitment is still weak In most cases itrsquos unfortunately one of the weakest links of any Lean Six Sigma initiative

3 Organizational Culture

A major problem in many organizations is the insufficient use of data not having the right data or not understanding how to use the data These stumbling blocks can have a tremendous impact on the culture of an organization since there is a strong psychological component attached to performance data This psychological component isnrsquot just related to how data is collected but also to how itrsquos viewed and the response it elicits For example when performance data is used to point out who went wrong theyrsquove in turn introduced a culture of fear that precludes the collecting and effective

use of data In turn this results in fewer people using the performance information and can also lead to people actually fixing the numbers because they know that data will be used against them The psychological component is critical

Also important is teamwork and collaboration across departments Wersquove seen more movement towards collaboration in the past 10 years in the manufacturing industry where certain initiatives have forced people in that sector to be more collaborative than they were originally A good example is concurrent engineering which allows for products and processes to be developed and refined by teams of people some of whom may work in the same building while others are in a different city or country their processes and goals are aligned to ensure a common output

In sectors where collaboration is less evident there are indications that this is partly due to strong departmentally driven organizational silos that prevent the collaboration needed to get to the next level As such the concept has had little impact in these organizations which most people characterize as being rule and process driven When presented to work together to improve performance these organizations are more likely to find out where the problem exists to ensure the right people are held accountable instead of using the cross-functional platform to ascertain how the organizational process of one or many departments can be improved to ensure better results in the future

If you are just beginning a Lean Six Sigma project and run across an organizational culture that is built on fear and mistrust or one heavily influenced by departmental silos and rules yoursquoll have to leverage Performance Management and demonstrate its benefits as you slowly align groups and people to a common set of goals and objectives while along the way you link to processes If done properly this key success factor will ensure you maintain the momentum needed to effectively engage and implement Lean Six Sigma and Performance Management

4 Company Strategy

If a company strategy is not embraced at the start of a project you can go down the path of putting together a Performance Management system and working on Lean Six Sigma with no alignment to top-level strategy or mission You many find that many projects will have no clear link to the direction and overall

purpose of the company Therefore they wonrsquot drive the right results The whole initiative will become short-lived as a result because when therersquos a crisis everybody will just move in a different direction

Everyone needs to understand the company strategy This will ensure that corporate strategy drives Performance Management that your improvement initiatives are closely aligned to top-level goals

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and KPIs and that your people naturally work on the right projects

Demonstrating this linkage and the success you can attain by engaging the process properly can build the business case Another way is to demonstrate what can happen if you donrsquot fix the problem and its overall impact on the organization

5 Process Management

Process management is a foundation on which to build a cross-functional silo which is a good thing because it allows you to break through the traditional barriers associated with processes which for the most part tend to be focused around individual departments or business units Introducing the concept of process management into an organization can be disruptive especially if this individual is tasked with looking at the linkages of business processes across departments and how they can be improved

Most organizations typically already have departmental managers who run functional areas Whatrsquos missing in most cases are process managers who are tasked with focusing on critical cross-functional processes key to the survival of the organization and to the elimination of waste and increase of value through overall improvements

In organizations with siloed ldquofunctionally drivenrdquo cultures disconnects between different departments create waste and over time this erodes value To ensure success any improvement effort needs to be executed carefully facility by facility or function by function looking at processes baselines and at collaboration across these areas This is key to eliminating inefficiencies in organizations

6 Support for Change

Itrsquos important to recognize that Lean Six Sigmarsquos integration with Performance Management is providing many industries with a new way of looking at running complex organizations As such it needs to be embraced by everybody People need to have a positive view of Lean Six Sigma and the organization has to be prepared for the suggested changes Many times individuals misinterpret recommendations as an attack on how they are executing their duties but actually Lean Six

Sigma can be leveraged to amplify the efficiencies of individual departments by ensuring the same level of scrutiny is applied at process junction points

When managing change it is important to take into account the characteristics of the industry in question including the history of the organization the organizationrsquos overall cross-functional culture and the attitudes of its workforce and management In many instances people donrsquot want to initiate change because they think any new process is a phase that will soon pass and that theyrsquoll be returning to business as usual at some point in the future To ensure these difficult situations donrsquot impede on the Lean initiative there has to be some kind of orientation that has to match the industry in question whether itrsquos government manufacturing health care etc

7 Performance Measurement

Companies must identify their true performance drivers or Key Performance Indicators as opposed to measurements that are collected regularly that donrsquot relate to anything Often those numbers have been created randomly which means theyrsquore not driving organizational performance and as a result wonrsquot provide the insight needed to make informed decisions In other cases these measurements are in place because at some point in time someone thought they would be a good idea but under more careful scrutiny they reveal very little For many this problem exists because people donrsquot know the difference between a metric and a Key Performance Indicator

Performance metrics are measures of an organizationrsquos activities and performance Performance metrics should support a range of organizational needs in order to provide proper performance insight While traditionally many metrics are finance based ndash inwardly focusing on the performance of the organization ndash metrics may also focus on performance against customer requirements and value and also include information and performance insight into employees and processes

As mentioned a criticism of performance metrics is that many organizations choose measures that have little value In most cases this is caused by selecting what is immediately measurable even if these measurements have low value and by a tendency to ignore high-value measurements simply because they seem harder to measure

Key Performance Indicators (or KPIs) are financial and non-financial measures or metrics used to help an organization define and evaluate how successful it is typically in terms of

how it is making progress towards long-term organizational goals KPIs can be specified by answering the question lsquoWhat is really important to different stakeholders both internally and externallyrsquo KPIs differ depending on the nature of the organization and the organizationrsquos strategy They help to evaluate the progress of an organization towards its vision and long-term goals especially towards difficult to quantify knowledge-based goals You can measure a process with many metrics but only a few of those metrics are key for your organization (for example based on your business strategy andor operational improvement initiatives)

The intent of performance measurement is not just to have measurements but to have the right measurements at the right time in the right place and to make sure that those measurements drive overall performance Itrsquos key for setting a foundation for Lean and Six Sigma If there is a good performance measurement system in place that takes into consideration Key Performance Indicators or key drivers then it becomes much easier to set up the entire project

8 Problem-Solving Skills

Performance Management systems become key indicators to groups of individuals within an organization helping them to measure their own performance Without performance measurement without a good system in place they have to wait for their boss to tell them theyrsquore not doing the right

thing Performance measurement then offers a mirror or a type of feedback mechanism on how well a process is doing Problem-solving skills meanwhile provide you with the tools to do something about it

A lack of problem-solving skills can be a major stumbling block for people and organizations they may be measuring things but if theyrsquore not doing anything with the results that becomes useless Recognition is only the first step having the skills to do something about it is the second Itrsquos the critical second half to Performance Management

While problem-solving skills ndash in the manufacturing environment at least ndash have become a priority over the last 10 to 15 years theyrsquore still not ingrained into the industryrsquos DNA People coming into the workforce are coming without proper problem-solving skills and they have to learn them as they go But one problem is that information silos exist and because individuals are not seeing across those silos they miss the solution to the problem at hand Thatrsquos one barrier A second one is that people often think that problem solving is for someone else that itrsquos not part of their job description Theyrsquore not trained in problem solving they donrsquot know how

to recognize problems and identify problems and describe problems and find the root causes of problems Coming up with a structured methodology for problem solving and problem resolution is a piece thatrsquos missed across the board

This is the main reason why problems occur over and over again because people are aware that theyrsquore occurring but donrsquot know how to respond to them they donrsquot have the skill set to do so Moreover theyrsquore often not even allowed to do so because itrsquos not part of their job descriptions Or some problems might be initiated between departments which means that without a culture of collaboration things donrsquot come together

When yoursquore solving a problem it canrsquot be a random event it has to be with structured methodology Before anything a scope must be determined What is the problem How do I identify the problem How can I measure that this is a problem Whatrsquos my baseline performance Now that I know my baseline performance whatrsquos my root cause And the root cause has to correspond to drawbacks that exist in the system that are preventing you from achieving a certain objective

The number one reason why we canrsquot solve problems is that we canrsquot describe them and you can only describe a problem if you have a measurement system in place that helps you understand where you are In any environment a problem is defined as a gap in performance between where you are and where you want to be Thatrsquos it If you canrsquot describe the problem in those terms then you canrsquot solve it Many organizations will say that communication is their biggest problem and they canrsquot seem to resolve it But why not Because communication is a symptom of whatrsquos happening not the problem itself Most times people respond to symptoms and not to actual problems

Finally often when a problem occurs the first thing asked is lsquoWho is at faultrsquo But if thatrsquos the first question then the chance to resolve the issue is immediately lost Because if you ask lsquoWho is at faultrsquo everyone immediately tries to protect themselves if someone feels that they could be at blame then theyrsquore not going to come forward to try to solve the problem ndash rather their objective is going to be to protect themselves When this occurs because they donrsquot want to be at fault they might generate another piece of data to cover themselves another procedure on top of another procedure That only adds more complexity and generates more waste Which is why the first question should always be lsquoWhy did it happenrsquo instead of lsquoWho is at faultrsquo

9 Business Intelligence

You canrsquot run an organization department or process based on data that you received a month ago Which his why in todayrsquos environment information applications need to provide you with up-to-date real-time data in addition to the summarized performance information that can be used to identify potential longer-term performance issues

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Vol 6 Issue 2 2009

Everybody within the company needs information and uses data In most cases employees are interacting with real-time information and making decisions based on historical performance The problem is people tend to want to report on everything which preoccupies employees and takes them away from their core duties Fully integrated Rich Information Applications address these issues by providing employees with real-time enterprise data using a single version of the truth delivered in a dynamic environment that allows any user to interact and modify the information to answer business questions specific to their function

10 Human Resources

Finally one of the things that also has prevented success and is sometimes a stumbling block for Lean Six Sigma deployment is the fact that the training programs that are rolled out by human resources may not be closely aligned with the companyrsquos mission

Once a company starts down the path of Lean Six Sigma the human resource systems need to change alongside it At the heart of Lean Six Sigma is a team approach reward and recognition systems need to reflect that so human resource systems will need to address it

Also critical is that team building has to occur across functional silos You have to build teams and people have to collaborate Human resource systems will drive that

Conclusion

To summarize itrsquos clear that when executed properly there are tremendous benefits associated with an integrated Lean Six Sigma Performance Management initiative Organizational Performance Management information provides strategic information and communicates progress towards a set of goals or objectives across the organization but in instances when things go wrong Performance Management alone does not provide a means to systematically and consistently address problems that arise in the business process or production realm This is where Lean Six Sigma can help assisting organizations in addressing these defects to ensure better results in the future

Norma Simons is president of Simons-White amp Associates a performance consulting company in Ann Arbor Michigan that has been in business for over 16 years and employs performance improvement systems such as Lean Six Sigma Quality Management Systems Business Operating Systems and Balanced Scorecards Certified as a quality engineer reliability engineer and a Six Sigma Black Belt Ms Simons has an MS in industrial engineeringoperations research from Wayne State University in Detroit Michigan Contact Ms Simons at nsimonssimons-whitecom or visit wwwsimons-whitecom

In instances when things go wrong Performance Management alone does not provide the means to systematically and consistently address problems that arise in the business process or production realm This is where Lean Six Sigma can help

ldquo

rdquoldquoWith the Actuate BIRT Performance Scorecard in place now we are able to communicate lsquowhat is important to the organizationrsquo across hierarchies and geographies seamlesslyhellipcause-andndasheffect maps have become the basis for all reviews and prioritization of strategic initiativesrdquo

- Gopal Sharma Senior Manager Business ExcellenceVoltas Limited Dubai

To deliver on its mission to provide high quality cost-effective project management and engineering services to customers throughout Asia Voltas

Internationalrsquos Electrical and Mechanical Division (EMD) adopted the Balanced Scorecard (BSc) as a tool for strategy deployment in 2004 The BSc was designed for EMD in line with the strategic objectives and cascaded further to all units and business heads for effective implementation The measures were tracked on a quarterly basis using Excel spreadsheets

Tracking BSc measures through spreadsheets proved to be ineffective in tracking progress on divisional performance

measures Moreover due to lack of integration the Performance Management tracking through BSc was limited to financial measures only The non-financial measures were not tracked due to lack of aggregation of data across levels and geographies This led to misalignment among various functions resulting in ineffective strategy deployment across the division

The major hurdle was ensuring the integrity of the performance data on non-financial measures hence an integrated system was required to ensure the flow and aggregation of data across all levels Also the reporting structure on various key performance indicators (KPIs) was not streamlined for effective Performance Management in the division

The situation prompted Voltas to seek automation of the Balanced Scorecard with integrated tracking and monitoring of the KPIs related to strategic objectives of the company

The SolutionA team was formed to explore more robust Performance Management tools Voltas conducted its due diligence in

Putting the Wheels Into MotionVoltas Views a Dramatic Shift Towards Transparency

Alignment and Dynamic Response

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finding an appropriate solution and in December 2007 chose the Actuate BIRT Performance Scorecard as its Balanced Scorecard solution

The software was customized in-house to the divisionrsquos needs and implemented across levels and locations The major challenges overcome during implementation were

bull Complexity of location structure and measures structure This sophistication and flexibility was a requirement to ensure the integrity and correct aggregation of the data and needed to be incorporated into the overall system

bull Aggregation of financial performance data from different countries in different currencies Led by the local support team and Actuate partner EU Partners a currency conversion facility was created to overcome this hurdle

bull Software access through smart client route at project sites A weak internet connection problem was resolved by Actuate Customer Support which installed the clientrsquos executable file on the local PC An Excel import and export tool is used for data updates to the system

About VoltasElectrical Mechanical amp HVAC Solutions (International) is part of Voltasrsquo Electro-Mechanical Projects amp Services cluster Established in 1978 as Voltas International Limited (a wholly-owned subsidiary of Voltas Limited) to handle international business interests the business looks after core business activities in the Mechanical Electrical amp Public Works (MEP) project areas specifically turnkey projects in

bull Electro-mechanical works comprising electrical building services HVAC (heating ventilation amp air conditioning) plumbing public health fire fighting ELV amp specialized systems

bull Electrical power projects

Voltas Limited a TATA enterprise offers engineering solutions for a wide spectrum of industries in areas such as heating ventilation and air conditioning refrigeration electro-mechanical projects textile machinery machine tools mining and construction equipment materials handling water management building management systems indoor air quality and chemicals EMD is one of four independent business-specific clusters within Voltas Ltd each with its own facilities for market coverage and service to customers

All of the above challenges were addressed easily to match the companyrsquos needs thanks to the versatility and customizable features in the BIRT Performance Scorecard

The initial rollout of the Performance Management system started in March 2008 with successful system deployment across all locations by the end of August 2008 The implementation involved user training on the software and BSc measures

Benefits

All business reviews are now being conducted online in the system both at the regional and corporate levels Managers can view the status of each project by just logging in as well as review and approve actions planned by the project lead without waiting for any formal performance review meetings This has led to a dramatic shift in the way Voltas manages its performance and has improved the transparency in tracking KPIs

Major benefits derived from the implementation are as follows

Solution OverviewIndustry Engineering Services

Company Size $400 million 3800 Employees

Challenges

bull Spreadsheets ineffective in tracking divisional performance

bull Non-financial measures were omitted due to data integrity issues lack of aggregation

bull Strategy unevenly deployed leading to misalignment

Solution

bull Actuate BIRT Performance Management Software Suite

bull Integration consulting services

bull Customized smart client

Benefits

bull Transparency in tracking KPIs all in one place

bull Alignment of action plans to division strategy

bull Dynamic Performance Management timely reviews

Design Stage

bull Measurement system evolution and refinement during system configuration

bull Clear consensus on KPI definitions and descriptions

bull Minimal support required during configuration and implementation

bull User training and access with individual user ID and password cementing ownership and accountability of the scorecard across hierarchies in the division

bull BIRT Scorecardrsquos ease of customization to business needs enabled instantaneous execution of required changes in the system

Rollout and Implementation

bull Strategy Map and other Cause amp Effect Maps have become highly illustrative in communicating the relevance of various measures and their integration with strategic objectives

bull Action Plans are fully aligned to divisional strategy and can be monitored online

bull Timely business reviews and dynamic communication of performance

bull All key performance indicators are tracked and available in one place business performance reports are generated as and when required

Going forward Voltas plans to roll out BIRT Scorecard access to its subsidiaries and to joint ventures in order to track the Balanced Scorecard of allied companies on the same platform The goal is to use it as a comprehensive Performance Management tool for the international operations of the entire company

Voltas has branch offices in Abu Dhabi Dubai Qatar Singapore and Kingdom of Saudi Arabia For more information on the company visit wwwvoltascom

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In todayrsquos economic climate careful decisions are needed to help

business remain competitive and to continue to succeed To stay smarter they need to build deploy and maintain business-critical reporting and information applications

Open Source Business Intelligence while it comes with its own set of technical challenges and misconceptions is often the right solution to deliver that Actuatersquos Business Intelligence Reporting Tools (BIRT) Open Source solution ndash developed with the Eclipse Foundation ndash is one example of a robust and web-centric Open Source Business Intelligence tool

The Open Source Model

An economic shift has occurred in the past decade introduced with the rise of the internet The internet provides connectivity which in turn connects demand to supply this removes the capital equation and shifts conditions in the market People with computers all over the world provide the means of conduction and with easy ways for these people to connect they can easily collaborate on projects with very little infrastructure This in turn led to the popularity of Open Source

Open Source has had many consequences for the enterprise software market primarily by making it a commodity market and by driving down price It also allows people who have a desire to do something to make money from doing it Production inputs are widely distributed and the raw materials are there to produce things in new ways Many argue that this shift has been about software licensing but actually it is largely about the production and distribution of software it is therefore a change that is more about economics that about ideology That economic base ndash the combination of connectivity of easier ways to market produce and distribute software and the fact that the internet acts as a giant copying machine ndash changes the conditions under which software can be sold That is why Open Source continues to disrupt the market and to force vendors to come up with new ways to cope with it Enterprise software is not going away rather it has been forced to shift

A 2008 survey by North Bridge Venture Partners asked Which sector of the software industry is most vulnerable to disruption by Open Source At the top of the resulting list was web publishing and content management a market thatrsquos currently highly fragmented and therefore perfect for introducing Open Source products The second sector was social software an entirely new category that has been difficult to define and difficult currently for commercial vendors to make money from again Open Source is the ideal solution

Business Intelligence was the third sector listed in the North Bridge survey Again this is understandable since BI tools and data warehousing tools are exactly that tools While end users consume the outputs theyrsquore not themselves often put into the hands of end users rather IT sets up the meta-data defines metrics etc Which means Open Source is targeted at the right audience there is a platform in a data warehouse that has multiple layers any one of which can be Open Source or

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proprietary Those modular boundaries make Open Source an ideal fit

What IT Looks For

IT acts ndash for the most part ndash as the gatekeeper to Business Intelligence When searching out new software IT generally looks for three things

1 Better alternatives to the status quo Specific features that are better for example

2 Ways to cut costs With commodity infrastructure in place IT has to try to drive down costs

3 Unique attributes There may be something they want to do but cannot do using their current system or features that might not be available (For example their mainstream BI package might not have web-accessible dashboarding that can be self-service)

Why Open Source

In addition to examining the sectors left vulnerable by Open Source the North Bridge Venture survey also asked What makes Open Source attractive Price was the most popular answer In addition to the capital cost of licensing Open Source drives down acquisition cost as companies no longer have to go through heavy proof of concept Itrsquos also easier to trial things and if license costs are less then maintenance costs are also less Finally unbundling maintenance support and service means that businesses can choose from a menu of services instead of being forced into a 20 percent single lump fee

The study also showed that companies found that Open Source offered freedom from vendor lock-in In addition it is flexible with easy access to commodity code in order to develop embed and build content into websites

Another 2008 study by The 451 Group gave a list of what organizations saw as benefits to Open Source once it was already introduced At that point flexibility ndash by 05 percent ndash came out over cost In this instance though the definition of flexibility was different respondents were impressed by the fact that there is no vendor that dictates when they have to upgrade how they have to upgrade and why they have to upgrade For a commercial vendor at end of life or desupporting versions of their software a sales and marketing schedule will often require a release every Q1 whether they are ready or not As a result

companies will be forced into an upgrade they donrsquot want that was released simply because marketing dictated it and not necessarily because it was ready Open Source is typically not under those same types of pressures

Buyers were also impressed by scaling costs if an organization has 50 initial licenses and pushes it out to 150 more people in BI lowered costs come in beyond the initial capital costs As well companies are not dependent on vendors for service or for additional pieces of technology

Whorsquos Adopting

Open Source Business Intelligence adopters include

bull Independent software vendors solution providers and OEMs They are taking Open Source BI and pushing it into products that need reporting and dashboards Theyrsquore beginning to build capabilities using Open Source into quality networking gear file servers and databases

bull People who have traditionally been underserved and have not been getting what they need for whatever reason They may not have had the budget or their current vendor might not offer some of the functionalities that they want Possibly it could be over-serve at least half of the features in a major BI stack today never get used

bull Developers Web developers provide information ndash especially database information ndash on their websites while internal developers have to build reporting features into applications and typically do not have access to the tools they need Tools like BusinessObjects and MicroStrategy live in a data warehouse in a different area of the organization and canrsquot be embedded easily

In terms of the organizations adopting Open Source BI many are on the small side with less than $100 million in revenue But very large organizations are just as likely to adopt Open Source solutions as well This is the inverse bell curve of Open Source BI implementation

Smaller-sized organizations have fewer data sources and more manageable data volumes are more interested in cost flow and also donrsquot have the same level of data volume and complexity that might exist in a medium-to-large organization or deployment Much more manageable data volumes less cost to scaling and fewer technology issues in terms of complexity make these ideal environments for Open Source

Open Source drives down acquisition cost as companies no longer have to go through heavy proof of concept ldquo

rdquo Large organizations though have equally ideal environments They arenrsquot for the most part introducing Open Source at an enterprise-wide level but rather have projects with specific features that need to get done The project in question may exist only within a single department which pushes down data sizes and deployment complexities making them a good target

Introducing Open Source BI

Open Source BI use often comes in at the edges and results from discontinuity An example of such a discontinuity might be a company restart many data warehouse projects started with a particular data model ndash copying a production database and putting reporting on it for example ndash and have to do a schema change At that point the cost of switching from one BI tool to another or from one ETL tool to another is fairly low Everything has to be changed anyway metrics change schemas change queries change The same is true with platforms moving from one database to another involves an integration of an entirely new set of systems These discontinuities often allow for the introduction of Open Source

New interface requirements can also lead to Open Source implementation as a company attempts to bring data-warehouse data into an application deploying it out through a website or via an application But some users may only need a few single simple production reports and donrsquot need to be served through a tool that costs between $1000 and $1500 per seat which is the average per-seat deployment cost of iTools Companies can reserve their BI tools for core individuals who need the flexibility and features and can build Open Source into applications for large-scale but simple reporting

In fact in most cases organizations donrsquot replace an entire system with Open Source That only happens in the cases of large discontinuous change where the features are good enough in an Open Source tool the deployment matches and there is no reason for pushing through a high-cost high-complexity solution Whatrsquos more likely to happen is an augmentation where a particular department ndash or a segment of users or particular class of tool ndash is given something that they need in Open Source For example a BI tool might be good and flexible with interactive reporting that can get production reports out and do the schedule but perhaps doesnrsquot have statistical features rolling out something like R to only a couple of analysts and layering that on top of the warehouse may be the solution

Augmenting and bringing in new features and capabilities in areas where Business Intelligence tools might be weak is typical of Open Source implementation This is an opportunity to augment an existing environment in a cost-effective manner to build features into that environment and to get the features specifically needed without paying for a whole package that isnrsquot all necessary

In contrast with what happens in the case of most traditional models much of the time the need for Open Source applications comes from the bottom-up and is established from a point of need from a developer or a department trying to get something done There are no enterprise sales representatives making calls or going through a procurement process where vendors and financials are examined There is also the ability to put something out in real terms instead of relying on a fake proof of concept where following that proof of concept companies are forced to either pull out and throw it away or to license the software

Roadblocks to Implementing Open Source

Misconceptions still exist around Open Source based largely on the idea that these projects are being developed by teenagers in their parentsrsquo basement a myth that is more than a decade outdated as today Open Source projects are generally run by commercial Open Source providers with paid developers Still a lack of information can prove a problem for organizations introducing Open Source This often plays out in the legal department which reviews all contracts and may not be informed when it comes to Open Source software licenses An Open Source license will be missing half the standard clauses the lawyers are used to clauses of restriction that dictate how to deploy what can be deployed where it can be deployed and how the software can be used Most Open Source licenses do not have these same clauses and lawyers will want to know why theyrsquore missing That can be another road bump in getting the software acquired

Support can also be more confusing Most major projects have commercial vendor support behind them But unbundling is also available which means buyers donrsquot have to purchase support but instead can buy the subscription model that covers only bug fixes integrated patch testing and certification against databases This is because enterprise support is often overrated more often than not internal support solves more problems than the vendor does

Augmenting and bringing in new features and capabilities in areas where BI tools might be weak is typical of Open Source implementation ldquo

rdquo

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Implementing Actuatersquos BIRT Open Source Technology

BIRT Actuatersquos Open Source technology was developed with the Eclipse Foundation and does an exceptional job in meeting web-reporting requirements while utilizing the Open Source model Itrsquos a Java tool with a web-centric development and design paradigm BIRT reports are built with the intent of publishing to the web exclusively or more exclusively than is the case with other alternatives that are typically intended originally for paper BIRT is also very modular and very component based allowing users to do as much or as little as they want to deploy as much or as little as they need when theyrsquore creating their reports or embedding this technology within their environment

One of the goals of BIRT is to cater to the power that is needed for many of todayrsquos reporting projects but also to offer the simplicity that means an individual report creator can be very effective at doing their job simply by using the BIRT design tool itself That goal has proven successful so far with 65 million downloads of BIRT since the projectrsquos inception 45 million of them in 2008 alone BIRT is in fact one of the fastest growing Open Source projects on the internet right now

BIRT does a great job of supporting a wide variety of report types it supports BRD Pro BRD BRS and IV and as users

build components throughout the project they can reuse those elements in subsequent future reports It also supports standards such as HTML cascading style sheets JavaScript Java and XML adding the underpinning technologies for either customization or enhancement and allowing developers to leverage BIRT while using the skills that theyrsquove already developed As an integrated report development environment BIRT also provides graphical and robust tools for the most common reporting tasks including query building ndash such as graphical object layout ndash and representing such as charting As well BIRT includes both online help and documentation

Itrsquos an incredibly robust tool and is capable of being embedded of being delivered to small groups or across the enterprise leveraging Actuatersquos commercial platform New capabilities include the ability to add interactive Flash objects into the environment to build personalized dashboards to create ad hoc reports and to create interactive viewing Actuate also recently introduced the JavaScript API which allows users to embed approximately a dozen lines of JavaScript into any webpage and from that access any content within the Actuate environment including any BIRT report that is hosted in that environment which in turn can be delivered to any type of JavaScript-enabled browser

BIRT is built in the Eclipse Project Actuate sponsors and chairs the project management committee for the BIRT project It is Actuatersquos third reporting technology built from scratch which means there is a high degree of long-term experience integrated into the BIRT environment

How the End User Benefits From BIRT

BIRT comes complete with 65 million sets of eyes worldwide looking at it and suggesting changes That has driven its enhancement in the marketplace The overall number of committers on BIRT historically is high and the current level of committers on the project remains high itrsquos nearly the same as Apache committers in the market today

Actuate ndash in its sponsorship of BIRT ndash has added and created a community called BIRT Exchange which is a resource for the BIRT development user to continue to enhance their BIRT expertise and to continue to gain help if needed from the BIRT community No question goes unanswered on BIRT Exchange which is at odds with what people often find in other Open Source forums where a huge number of questions remain unanswered from the audience Within the BIRT Exchange environment there are three different forum administrators who make sure every single question is answered BIRT Exchange also hosts the documentation for the entire BIRT product line as well as videos and webinars designed to further the training and adoption of BIRT itself

Actuate employs more than 50 developers on the Eclipse project itself with documentation and publications available in support of the project available at amazoncom

Actuatersquos Value Add

BIRT is modern and flexible and open Since itrsquos built within the Eclipse Project anyone who knows Eclipse knows how to use it Actuate adds interactivity which take the form of Flash widgets embedded into the BIRT development environment ndash allowing users to build their own types of dashboards ndash or through interactive viewing to transform a report from being static to something an end user can manipulate and evolve over time This is important because reports typically become obsolete quickly the requirements that they originally meet changes as users use the reports to become smarter and then the questions they want answered change Which means that providing this kind of interactive content is key to the success of a Business Intelligence project

Extending BIRT Capabilities

BIRT development tools and the BIRT engine are available as Open Source and are widely distributed Typical capabilities such as JavaScript and SQL skills are required to become familiar with the BIRT product

The second level of capability is the ability to embed BIRT within applications and to begin to add degrees of interactivity to the environment such as Flash widgets or the interactive viewer This allows a user to create robust rich embedded applications

The third level is for workgroup or departmental-style applications or small organization-type applications To adopt this type of Open Source technology individuals would introduce BIRT plus the single server iServer Express a hybrid of Open Source and commercial technology

Finally there are organizations that seek enterprise-caliber or enterprise-level deployments that want to publish BIRT applications outside the firewall to secure these applications for millions of users and to support very high degrees of performance and reliability This type of scalability requires both good design and trial and error as operating systems platforms and other elements continue to evolve Maintaining best performance for very large-scale environments means making sure that each one of these items is optimized

Open Source Vs Commercial Technology

The overall platform that BIRT delivers is a complete set of both development and deployment options for creating any type of environment Users can be characterized across a number of different lines from incredibly skilled Java developers to everyday report developers from people familiar with Actuate to those who are not from power users to business users etc

There are two fundamental questions that these users need to answer

1 Is BIRT the right technology for the application theyrsquore creating

2 Whatrsquos the best way to deploy it through Open Source or through commercial deployment means

The answer to the second question is reliant on a number of variables In the following situations for example Open Source would be the ideal alternative

bull Those users who want to use BIRT for individual use

bull Those who want to embed it into their own project

bull An ISV who has the technology in their own application to support printing and baked-in reporting needs

Converting to or supporting a commercial model meanwhile occurs most frequently at the enterprise-server level for organizations deploying the environment to hundreds or thousands of users It supports a wide variety of types of users

But both the Open Source and commercial models employ a common report design format Itrsquos a progressive development experience or a collaborative report design and collaborative process allowing each user to participate in the definition and the evolution of their reporting environment while at the same time using tools that are appropriate for their skills a novice user isnrsquot being overwhelmed by too many features while the power user or the highly skilled users receive exactly the right kind of technology and level of development capabilities theyrsquore accustomed to

Yet some of the decision-making criteria lean more effectively towards a do-it-yourself situation using the Open Source type

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of model and some lean more appropriately to a commercial investment and a commercial tool A growing level of complexity often drives commercial interest but certain complex functionalities ndash including supporting web services or web services SQL or other examples of integration techniques ndash the Open Source model is more than capable of supporting on its own

The applications Actuate deploys are information applications When choosing the paths of how to proceed ndash with regards to choosing either the Open Source or commercial interest ndash there are typically four premises to consider in an information application

1 Is the report or the application able to consume and collect data from one or many sources whether itrsquos a single report or a complex application Typically when the data sources are simple and the data connections well understood either Open Source or commercial interests are appropriate With meta-data layers and extraction layers the commercial model tends to be more effective But if itrsquos an embedded project using POJOs or other Open Source or specialty connectors ndash unique connectors ndash that often keeps a project more suited for an Open Source deployment

2 How is it able to aggregate and transform that data into meaningful information Looking at aggregation the same premise holds true if therersquos simple aggregate functions or automatic cross tabs or even custom or reuseable business functions both the Open Source and commercial models are appropriate In terms of embedded Java functions those aggregations are appropriate in either case Itrsquos when entering into areas of security ndash of parameter-driven values dynamic-parameter collection cascading menus etc ndash that a commercial purchase tends to excel over the Open Source version

3 What are the presentation options or formats available to present that data When the presentationrsquos fairly simple both Open Source and commercial apply When

charting cross tabs and embedded graphics are the norm then the two are served both in Open Source or commercial interests When JavaScript is starting to be used as a customization or a dynamic-properties delivery vehicle both the Open Source and commercial models are effective although keeping this content embedded within an environment is probably more appropriate using Open Source Itrsquos only when introducing elements such as interactive viewing capability or the ability to manage an environment through a management console capability that the commercial option begins to edge out

4 Are we able to achieve the levels of scale that we need to get that information out to every user whorsquos interested in it When individual use is appropriate Open Source is a better fit When transient content is what a company is delivering thatrsquos usually a better fit with Open Source as well as is embedding To support a collaborative reporting effect or to support a variety of developers and users ndash especially users with different skills ndash the shift begins to move towards a commercial style of delivery When therersquos custom delivery required such as JavaScript API the commercial environment is also more appropriate

These are the capabilities of different deployment options for both the Open Source platform as well as the Actuate commercial platform geared towards allowing organizations to get the value that they most see fit within their environment or their application Typically for environments that have a heavy requirement for infrastructure thatrsquos what drives the commercial purchase whereas customization or individual interests typically drive Open Source

The key thing for any organization is to first decide what kind of reporting technology they need ndash whether it be Open Source or commercial ndash and then to look at their own needs And finally consider the BIRT environment as a vehicle that meets web reporting needs

For more information on BIRT visit actuatecom

A growing level of complexity often drives commercial interest but certain complex functionalities ndash including supporting web service or web service SQL or other examples of integration techniques ndash the Open Source model is more than capable of supporting on its own

ldquordquo

One of the benefits of Actuatersquos Business Intelligence Reporting Tools (BIRT) is that very capability for flexible functionality thatrsquos adjustable to usersrsquo needs Every component of the BIRT technology ndash whether in the Open Source or commercial versions ndash builds upon the components before it creating a robust and flexible system designed to meet each organizationrsquos unique Business Intelligence needs

Choose the Right Graphical ToolThe first step towards evolving organizational Business Intelligence is choosing the right graphical tool The Eclipse BIRT technology for one is a visual designer thatrsquos geared at report developers as well as JavaScript and Java developers and can create a wide range of reporting technologies and web reports BIRT builds content that is specifically intended for the web and uses techniques that are expected when building web pages and web content It doesnrsquot use a banded report writer design or development metaphor typical of many older report-authoring products including Crystal Reports or Jasper

BIRT is the third from-scratch product that Actuate has sponsored and developed and as such it takes into account more modern capabilities and techniques for developing web content In building BIRT Actuate has drawn from its extensive market knowledge borrowing best concepts from other products as well as from its own Reusability and the ability to include programmability within the environment have been traditional Actuate capabilities that have been included in BIRT but BIRT technology also uses de-facto standard programming capabilities such as embedding JavaScript and Java into the application rather than using a proprietary language

Open Source is the core reporting capability and value-added commercial products can be added to it More than 50 developers are employed by Actuate on the BIRT Open Source project similar to the number of developers Apache has applied to the Apache project Alongside these Open Source developers are Actuate developers working on the commercial product of BIRT

Open Source BI

Cost-Effectively Deploying

When deploying Open Source Business Intelligence technologies multi-layered functionality that can be added as needed serves to create a cost-effective way to build a solution specific to an organizationrsquos needs Each function acts as a building block as a company creates exactly the capabilities necessary for the job on hand without wasting money and resources on items that arenrsquot needed

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Another benefit of BIRT is the BIRT Exchange community Actuatersquos user forum which is far more robust and extensive with documentation and help information than has been found traditionally Nearly every forum post has an answer to it in some form which is not likely to be experienced with any other Open Source project or forum-based community Meanwhile the community itself is vast and growing rapidly Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate ndash where a developer may have downloaded 20 copies over its history ndash adds up to 350000 different users of BIRT technology That number is growing at roughly double the rate of the other two most popular Open Source projects

Add Value Through Features

Actuate BIRT technology has a range of features that will add value to a companyrsquos BI project

1 In addition to being a graphical report design tool BIRT takes into account the long-standing tradition of Actuate to support reuse libraries and reusability across the entire environment It is able to not only reuse BIRT objects and BIRT components ndash such as charts and tables ndash but also to incorporate and use JavaScript objects and Java libraries in the reports themselves This creates a rich experience for driving and building web-oriented reports

2 BIRT offers navigability While a user is in a graphical design tool they should be able to take advantage of some of the core capabilities that the technology offers such as a visual hyperlink builder that keeps information in context as well as the ability to create cross tabs dashboards and charting mechanisms that are active and navigable Inserting type of content ndash so that it is both consumable and scoped in context for the user ndash is important to the success of deployment Hyperlinking in context is one of the key elements to supporting Open Source deployments

3 The Eclipse BIRT environment supports a variety of graphical types or charting types including not only grids and tables but both static and dynamic images as well that can be linked back to databases or can support conditional formatting and a variety of conditions baked into the report BIRT is able to handle a large variety of chart types and styles allowing organizations to convey exactly what theyrsquore trying to deliver to their users Supporting rich charting is one of BIRTrsquos key core capabilities

4 The Open Source Eclipse engine can be embedded into or deployed from an application quickly within a JVM Users can add content generation or report generation functionality easily and quickly to their application by inserting it into their run time The BIRT engine itself is a key component in the Eclipse BIRT project It has a variety of extension points built into it which means itrsquos able to not only generate supported output types ndash such as HTML or Adobe PDF ndash but can also create custom emissions from a BIRT report such as an emitter for mobile content or an emitter for a particular report format of the userrsquos own perhaps to feed another application With a robust API structure within the Eclipse BIRT engine these are all possible

Build On Interactivity for a Richer Experience

Building onto that BIRT experience organizations can add more interactive and visual elements to create more appeal within their BI projects

Animated Flash Visuals Animated Flash visuals built into BIRT reports lend to a richer more enjoyable experience for end users They can take advantage of the navigation enhanced with the visual and animated appeal that Adobe Flash offers

The Actuate BIRT development tools include 266 Flash widgets This is one feature that differentiates BIRT Open Source with the BIRT commercial product Those who purchase the development tools from Actuate will immediately receive these Flash objects that can be deployed not only within Actuate BIRT reports but within Eclipse BIRT reports as well they are portable across both environments

Interactive Viewing Often users have a difficult time articulating their requirements to report authors That problem is alleviated when authors can deliver them an interactive viewing experience allowing the report to become changeable and adjustable by the user The user can select a particular column and can apply a filter to that column they can toggle back and forth between viewing perspectives rotate charts change the grouping of a report or add more visualization to it with something such as conditional formatting They could even navigate within the report using a joystick or deploy that report or portlet content anywhere they want And ultimately they could drag and drop and change ndash or add columns to the report directly ndash by manipulating the report as needed

This interactivity gives the end user the ability to enjoy more freedom with regards to how they use the report It also

addresses one of the biggest conundrums with regards to report delivery giving users a report provides them with content that makes them smarter and as they get smarter they take that information and they work it into their knowledge which in turn changes the questions that they ask of the report This means that what they need from a report changes over time Allowing users to modify reports themselves is a key goal in supporting BI processes because as users become smarter about what theyrsquore doing with their content they can help assist in defining what the next iterations of their web content might be

Choose the RIght Server to Store and Schedule Content

Actuate has spent the last 15 years developing the Actuate iServer It comes in two styles ndash iServer Enterprise and iServer Express ndash and offers a robust environment for creating managing and delivering BIRT report content to users on schedule on demand or on an ad-hoc basis directly

The iServer Express is a single-server deployment that is appropriate in scenarios where there is less active usage it supports a sequential batch generation capability and roughly 10 user connections per second as the users connect to the server It offers that scheduling and deployment capability at a very cost-effective price point while allowing organizations to secure their report content using the iServer repository to take advantage of some of the presentation layer capabilities that Actuate offers through its information console to present and manage that content on behalf of the users and ultimately to create a full reporting experience for users directly

Alternatively for those deploying a very large system ndash perhaps one that operates outside of the firewall in a traditional web information application ndash there is the iServer Enterprise The iServer Enterprise is massively scaleable but also very predictably scaleable as companies double the resources that they can apply to their environment they double the throughput and user numbers that theyrsquore able to support with the iServer It is also highly configurable in regards to how content is deployed and supports multi-tenet environments or multiple application environments In addition it can be componentized so that a presentation layer can be separated from a content creation layer or a business logic layer from a data management layer ndash including the meta-data layer itself ndash to help abstract and manage the queries driven

Determine Where Content Can Be Distributed

Actuate JavaScript API is a mechanism that allows the user to take a JavaScript library embed it into any HTML page and then from that JavaScript library securely access Actuate content from the iServer This particular capability allows the user to put either a report part ndash a reportlet ndash or an entire report directly into new locations This could be used as a user attraction vehicle it could be used as a dashboarding vehicle or it could be an integration point for systems that are written in NET rather than in the j2e environments that BIRT typically supports

Deliver Mash-Up Applications

Delivering mash-up applications using all of the functionalities listed above is simple in the BIRT technology and lets users themselves participate in the definition saving creation and management of their own dashboard displays and it allows them to watch exactly the KPIs that they care about

This is done through Actuatersquos Mashboard Customization to the Information Console which allows users to take any BIRT report content and to deploy it directly into a mash-up style environment where they can define exactly what pieces of content go into their application and what doesnrsquot These dashboards can also be roll-based so that particular pieces of content can be deployed to particular types of users directly then if they want to continue to customize that capability theyrsquore able to do so

Conclusion

Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques such as Flash and Ajax in a web-based design metaphor It is designed to evolve effectively over time and is meant to give organizations a choice for every type of user The first decision point of any organization is to recognize whether or not BIRT is the right reporting technology for the information application in question Once thatrsquos decided companies must choose the technologies they want to offer each type of user and then consider how they want to deploy those technologies directly

A wide variety of capabilities can be build into the BIRT environment ranging from Open Source to commercial Actuate products It is a flexible environment and is robust for delivering to users any type of information-driven web content

Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate adds up to 350000 different users of BIRT technology ldquo

rdquo Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques ldquo

rdquo

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The Challenge

Guiding a ship requires visibility into navigation operational performance and up-to-date information to make decisions This type of customer challenge drove ABS Nautical Systems

to incorporate Actuatersquos BIRT technology into its NS5 fleet management software

A leading software provider to the maritime industry ABS and its NS5 modular ERP system help customers manage principal operating expenses associated with vessels and offshore rigs ABS provided basic scheduled reporting and offered ad hoc reports in response to specific customer requests but customers demanded better functionality including the ability to easily extract and create both standard and custom reports

Producing reports to customersrsquo satisfaction took time as reporting was not central to ABS Nautical Systemsrsquo expertise Further it took valuable programmer time away from developing new features and functions for its core product This created the need for ABS to leverage a tool to provide highly-developed rich information application functionality increasing the power of its fleet management software while enabling its customers to access more flexible reporting tools

The Solution

With its own expertise in Java development and their existing reporting ABS searched for an Open Source reporting platformtool that they could leverage and seamlessly embed in their software ndash one that would deliver for ABS and their customers both immediately and for future expansion After considering Jaspersoft Actuate and Pentaho ABS selected Actuate and BIRT for their on-demand reporting solution

ldquoActuate has a clear roadmap and direction scalable platform financial stability and Open Source development platform The Actuate offering was an excellent fit because the technology

ABS Nautical Systems (NS) is one of the leading providers of fleet management software packages available to the

marine and offshore industries It offers a fully integrated modular approach to managing the principal operational expenses associated with a vessel or offshore rig ranging from maintenance and repair to regulatory requirements purchasing and inventory and crew management and payroll

SAFE AT SEAABS Nautical Systems A Case Study

ldquoBoth the technology roadmap and scaling are key It was an excellent fit for us actually ndash you had the right technology yoursquore Open Source based BIRT technology was key and you were the most helpful in helping us do the prototyperdquo

- Sandipan Bhattacharya ABS Nautical Systems

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used Open Source BIRT allowing us great flexibility in developing NS5 Actuate was most supportive in helping ABS NS do the prototype ndash both their Professional Services as well as the account teamrdquo states Sandipan Bhattacharya CTO for ABS NS

The new BIRT-based on-demand reporting tool within ABS NS5 is a web-based application that enables clients to quickly and easily generate custom reports from any NS5 module It handles reporting for the central elements of operational management ndash from regulatory requirements to payroll to planned maintenance programs But it takes NS5 beyond operational duties to consolidate data from across software modules to better monitor key performance indicators (KPIs) such as time to repair spare parts turnover and purchasing cycle times

The interactive information views that BIRT provides help fleet managers to achieve maximum efficiency empowering NS5 software users to get what they want in terms of the reports they need in the way they want them as each department or company may want to look at data in a different way Lastly that same data is more accurate because it comes as near real-time information at the time they need and can be benchmarked against how well they are performing to provide trends for evaluation

BenefitsResults

bull Speed time to market with new features by focusing on core competence in its software platform This allows ABS to focus development on its core product and improve customer satisfaction by rolling out and providing complete reporting modules This also helps decrease development expenses and support costs

bull Expand available market with completely new product lines enabling ABS to increase its client base to companies that didnrsquot know about them or had previously disregarded their offering The additional modules make the product more attractive to existing clients creating additional revenue sources for ABS

ldquoThe BIRT Open Source platform allows for a great deal of flexibility in the development stages Additionally the ease of integration into our OEM package was a great benefit Lastly the Actuate and BIRT offering has proved to be well suited to ABS Nautical Systemsrsquo needs and Actuatersquos roadmap shows what we can do in the futurerdquo states Bhattacharya

Self-serve customization drives flexibility and ease of creating reports BIRT empowers users to produce reports customized to their individual and departmental needs and preferences And as government reporting requirements change they can

Solution OverviewCompany Profile Integrated fleet management software for marine industries

Industry Software

Location Houston with offices worldwide

Challenges

bull Customer need for better more timely reports

bull Enable customers to self-serve for ad hoc needs and regulatory requirements

bull Focus on core software expertise and feature requests

Solution Integrate Actuatersquos Open Source-based BIRT reporting with ABSrsquo NS5 fleet management software

Business Benefits

bull Faster time to market broadened portfolio

bull Ease of integration development flexibility

bull Increased visibility into operations aids customer competitiveness efficiency

bull Users empowered to customize reports

Does your companyrsquos mission and vision statement place the customer at the center of your universe

Does it promise to maximize customer value and deliver the best customer experience possible If it does your mission and vision statement is surprisingly similar to nearly every other organization And much like them chances are your organization is struggling to make this vision a reality to actually reinvent itself as truly customer-centric

ldquoCustomer-centricrdquo has become the new buzz phrase thrown about at most executive planning sessions and has replaced ldquoinnovativerdquo as the new mandatory strategic language The truth is it takes a lot more to become customer-centric than changing the company vision ndash it requires a departure from years of tradition a clear look at who and what your organization is and a deeper understanding of what motivates your customers to buy from you or from your competitor Fortunately the cost to make this change is surprisingly low while the benefits and the returns can be shockingly high

Finding Your Customer

Customer-centric implies that the customer is central to the organization but this is too esoteric to have any real meaning An organization turns materials into a product or service which is then sold Everything the organization does must lead to this

event (with no sale after all therersquos no customer) This logic works for most people and most organizations and it logically follows that the focus should be upon the creation of the best possible product or service because this is what causes a prospect to become an actual customer

This logic fits nicely with traditional thinking It was popularized by Michael Porterrsquos value chain approach in the mid-80s The value chain is a string of critical processes that begins with raw materials or inputs and ends with a product or service delivered to a happy customer Thinking this way makes sense because it is easy to place the customer at the end of the process But this mind-set doesnrsquot just affect how executives structure the organization it weaves its way into every aspect of how the organization manages itself and how managers make decisions

For example the finance department performs the close process each month so that it can deliver financial information to managers with actual bottom-line responsibility These managers from executives to cost center managers are financersquos customers just as shareholders are when they deliver quarterly reports Once these reports are delivered finance goes back to the business of accounting and managing revenue and expense until the next month Engineers work to design new products that will keep them one step ahead of their competition Manufacturing produces goods to meet customer

respond more quickly adapting them by themselves instead of depending on ABS to supply reports

ldquoActuate empowers users to get exactly the reports they need the way they want them Empowerment is key as well as flexibility as each department or company may want to look at data in a different wayrdquo states Bhattacharya

Rich information drives efficiency through increased visibility and better insight into operations improving customer competitiveness With highly accurate real-time information on how well they are performing management can control both overall and specific costs of operating and maintaining their shipping fleets ldquoThey donrsquot have to wait hellip they can see all contributing factors day to day It helps improve efficiency at every level For the first time a shiprsquos captain can have insight into the operational performance of his ship while still at seardquo says Bhattacharya

Creating the Customer-Centric

OrganizationFinding Your Customer-Critical Path

By David F GiannettoCEO

The Telos Group

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33

Vol 6 Issue 2 2009

orders or demand projections The sales department courts potential buyers so that they become actual customers Once they do so sales then returns to identify new targets and tries to transition them Manufacturing works to refill shelves Engineering continues developing products

Employees throughout the organization are focused upon delivering the product or service for which they are responsible The product attributes become the value proposition that will appeal to their customer regardless of whether or not this is an internal or external customer Employees are trained to think in terms of product development delivery and value The organization becomes even if it doesnrsquot know it product centric Believing that a mainstream management theory such as the value chain approach could not be wrong or outdated management is comfortable with this view of their world When they try to become customer-centric they do not know how

Making the Change

Consider for example the electricity powering the light by which you are reading this article It is a fairly simple product that was mainstreamed decades ago and except for new types of power generation it has remained essentially unchanged The traditional value chain for this industry is fairly straightforward Power is generated by a complex and often dangerous power plant and it is delivered to the customer via a complicated and often dangerous network The customer then consumes this power and must pay for it creating the

need for back-office operations such as accounting finance and customer service

Given the complexity of power generation and delivery operations the organization is staffed by a high percentage of engineers many with doctorate degrees and years of specialized training The generation and delivery assets themselves are maintained by highly-trained highly-specialized workers A large percentage of the management team also comes from this background and rose through the ranks of organizations identically structured Combined these employees represent over 75 percent of the organization

Collectively these employees create a culture that is consistent in almost every power utility in the world Their cultures respect academic achievement technical expertise and years of experience in the industry They typically believe in rigid structures inflexible procedures and consistency in design and execution They are truly product focused

Given the potential hazards it is easy to see why they behave the way they do But what happens when this type of organization has to compete in a more open market when transparency is increased or when the customer such as a municipality has a stronger voice or is under the growing influence of being green What happens when the power company must become truly customer-centric

It is nearly impossible for them to succeed Seventy-five percent of the organization has little to do with or has little understanding of the customer

Departing from Tradition

While this product focus is exaggerated within a power utility largely because of their technical nature these factors affect nearly every organization Employees who have great influence within the organization will not yield it to those who have less but who understand the customer better Funding is unlikely to shift from traditionally respected areas to those areas that most affect the customer

For a power utility this means that engineers who have often dedicated their entire lives to the study of their work must be considered equal to project managers and customer service agents most of who do not hold any degrees Money resources and staffing must focus on project management and call center technology not just on million- or billion-dollar assets There must be recognition that these areas equally affect the customer This new perspective must be executed by executives who have spent their entire careers adhering to the traditional values of the product-centric culture But this shift is what customer-centric really means truly understanding and meeting your customersrsquo needs It starts with the customer more specifically it starts with a prospect

Customer-Critical Path

This means that the traditional value chain must be rethought and renamed more appropriately to the customer-critical path A prospect travels this path on their journey to become a customer a customer travels this path toward the goal of becoming a happy customer This is the true value chain of the organization ndash a string of processes that become critical because they directly affect your customer regardless of the product service organizational chart academic degree or bias Find the customer-critical path and you can guide your customers through your organization in the way that is most meaningful to both them and you

But not all customer needs are the same even within an industry that has only one real product like a power utility The customer-critical path may start in several places meeting the needs of

several different types of customers ndash household customers that simply need power turned on or major projects that require significant project management and pre-planning Eventually these starting paths merge It will occur at the point at which all customers are happy From there they may take a different path

again some will terminate service or have new needs There is not one value chain there are many paths a customer might travel through your organization

This new approach offers significant value for organizations that adopt it It allows them to better understand their customers so that they can be more effectively segmented and targeted by products or services This drives the bottom line in several ways A stronger value proposition increases appeal thus driving revenue Better service and customer interaction improve the customer experience and increase customer loyalty driving customer lifetime value

The customer-critical path also becomes a vital decision-making tool for management It provides a clear and unbiased perspective on where resources should and should not be spent It defines the relative worth of projects assets and expenditures painting a clear picture of what the results will be if the customer-critical path is not

properly maintained

And if your mission and vision statement says you are customer-centric it makes your strategic plan more than simple semantics It makes it actionable setting your organization on a path towards true differentiation and market leadership Properly crafted the customer-critical path becomes a pleasant stroll through the park for your customers and it can also become the most profitable path for your organization

David F Giannetto is CEO of The Telos Group co-author of The Performance Power Grid The Proven Method to Create and Sustain Superior

Organizational Performance (J Wiley amp Sons 2006) and a professor in the Executive MBA program of Rutgers University

Mr Giannetto can be reached by email at dgiannettotelosconsultingcom

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35

Vol 6 Issue 2 2009

I Introduction and Background

Who the NMDP is

The National Marrow Donor Programreg (NMDP) and Be The Match FoundationSM are non-profit organizations dedicated to creating an opportunity for all patients to receive the bone marrow or umbilical cord blood transplant they need when they need it Every year thousands of people of

all ages are diagnosed with leukemia and other life-threatening diseases Many of them will die unless they get a bone marrow or cord blood transplant from a matching donor Seventy percent of people do not have a matching donor in their family and depend on the Be The Match RegistrySM to find a match to save their life

The Beginning

When their 10-year-old daughter Laura was diagnosed with leukemia Robert Graves DVM and his wife Sherry were ready to do anything they could to save her They agreed to try a bone marrow transplant from an unrelated donor ndash the first ever for a leukemia patient Laura received her transplant in 1979 at the Fred Hutchinson Cancer Research Center The treatment gave her an extra year and a half of life

The National Bone Marrow

Donor Program

The Balanced ScorecardVision into

Action JourneyBy Howard Rohm

President amp CEO Balanced Scorecard Institute under the guidance of The National Marrow Donation

Programrsquos Michael Boo Chief Strategy Officerand John Rudrud Senior Analyst

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Vol 6 Issue 2 2009

The experience inspired Dr Graves to create a national registry of volunteers willing to donate marrow His early efforts brought together other patient families and transplant doctors spurring a federal mandate that led to the creation of the National Marrow Donor Program NMDP began connecting patients with unrelated donors in 1987 with a registry of just 10000 volunteers

What the NMDP Does

The Be The Match Registry has grown to more than seven million donors and over 150000 cord blood units the largest and most racially and ethnically diverse registry of its kind in the world Medical advances are making marrow and umbilical cord blood transplants available to more patients all the time Since 1987 NMDP has arranged for more than 35000 transplants to give patients a second chance at life Today NMDP facilitates more than 4300 transplants a year

Planning for the Future

Many more patients still need help In order to meet the needs of all patients NMDP will need to facilitate 10000 transplants per year by 2015 That is more than double the number of transplants the organization facilitates today NMDP is working to meet this need but canrsquot do it alone Efforts are sustained by

bull A global network of more than 490 leading hospitals blood centers cord blood banks and laboratories

bull Agreements with donor centers cooperative donor registries and cord blood banks worldwide through which the program provides patients access to more than 12 million donors and 300000 cord blood units

bull Continued support from the US government which has entrusted the NMDP to operate the CW Bill Young Cell Transplantation Program the federal program supporting bone marrow and cord blood donation and transplantation

bull Partnerships with corporations service organizations student groups faith-based communities and other organizations

A new and different way of thinking about the NMDPrsquos long-term strategy was required in order to make sure that NMDP would be capable of delivering 10000 transplants per year in 2015 ldquoBusiness as usualrdquo would not get the organization where it needed to be NMDP needed to identify and

aggressively improve in strategic areas critical to the delivery of 10000 transplants

II The Balanced Scorecard Approach

Background

The strategic planning system that had been used at NMDP up to 2007 was a fairly well-developed planning process that tracked initiative performance under seven primary areas of strategic focus While this approach provided a measure of strategic planning for the organization it was too focused on activities and projects rather than on impacts

Early in 2007 NMDP leaders Gordon Bryan Chief Financial Officer and Michael Boo Chief Strategy Officer began developing strategic metrics designed to identify measure and communicate progress in strategic plan objective areas

Selection

As the senior management team evaluated options to integrate broader strategic metrics with the existing strategic business plan the Balanced Scorecard approach emerged as a leading candidate during the initial assessment of planning models because it

bullEncourages development of strategic themes and provides the ability to focus on areas where long-term continuous improvement is needed

bullPermits identification of cause-and-effect relationships between Strategic Objectives within each Theme

bull Facilitates communication of Strategic Objectives that can be portrayed on a strategy map that is easily understood by all employees and stakeholders and shows how the perspectives work together to achieve the mission

bull Assures that the organization focuses on Strategic Objectives and Measures from a CustomerStakeholder perspective and a PeopleKnowledgeTechnology perspective (Historically the organizationrsquos focus was skewed toward the Process and Financial perspectives)

bull Enables leadership to track Strategic Objective performance over the long term rather than tracking the status of supporting projects and initiatives

bull Creates a framework for prioritization of projects initiatives and funding opportunities based on contribution to and support of the Strategic Objectives

bull Allows organizational Strategic Objectives to be cascaded into Department Objectives thereby giving each employee

a more specific understanding of how his or her work impacts and contributes to the Strategic Objectives

bull Drives long-term continuous improvement as Strategic Measures improve over time

bull Facilitates a ldquolearning organizationrdquo where corrective actions are implemented in cases where Strategic or Department Objective Measures are not being met

The NMDP planning team looked at a number of planning models ndash including Balanced Scorecard Six Sigma Lean and TQM ndash and concluded that the Balanced Scorecard approach provided the most versatile and relevant framework for future growth and organizational development

III Scorecard Development ndash NMDP Officer Input

Early to mid 2007 NMDP began the Balanced Scorecard development effort with the help of consultants from the Balanced Scorecard Institute

A comprehensive review of the organizationrsquos strengths weaknesses opportunities and threats organizational pains organization enablers vision and mission was conducted over several days with NMDP officers and senior management These sessions produced a new Mission and Vision Statement and four Strategic Themes (rather than the original seven)

The former mission statement Extend and improve life through innovative cellular transplant therapies was changed to We save lives through cellular transplantation ndash science service and support

ldquoThis new mission statement captures and communicates more directly why we exist and it clearly articulates the three ways that we are able to save livesrdquo explained NMDP CEO Dr Jeffrey Chell

The Overarching Strategic Result in place of a vision statement was developed and shared with employees throughout the organization Meeting the need for 10000 transplants per year by 2015 The senior management team developed a longer more descriptive version of this statement but felt that the shorter version had more impact

ldquoWersquove found that the Overarching Strategic Result has been a great tool to get people thinking about how we will manage

to do more than double our current transplant volumes in a relatively short time ndash just five years from nowrdquo explained initiative sponsor Michael Boo ldquoThis has driven a lot of creative thinking around how to dramatically improve the efficiencies and cost effectiveness of many internal systems and delivery processesrdquo

The four Strategic themes that the NMDP officer group developed and agreed upon are

bull Global Access and Acceptance ndash Getting to Yes Overcome non-cell source barriers to transplant (eg no insurance no transportation no post-transplant support)

bull Deliver Excellent Stakeholder Experience Overcome Cell Source Barriers (making sure a cell source donation is available when itrsquos needed ndash adult or cord)

bull Research Pursue research to improve cell transplantation as a therapy

bull Culture of Excellence Keep up-to-date with talent structure and resources needed to continually improve transplant services

IV Scorecard Development ndash Senior Management

Throughout the spring and summer of 2007 four Theme Teams comprised of senior management met to develop

Theme Team strategy maps that included Theme Objectives by Perspective and proposed Measures for each Theme Objective These served as detailed roadmaps with specific objective areas identified ndash where NMDP needed to focus in order to improve them

The four Theme Team maps were subsequently

combined into an NMDP Strategy Map that included all relevant components from each theme This NMDP Strategy Map is comprised of 13 Strategic Objectives 46 Strategic Measures and seven Strategic Initiatives

Narratives were captured regarding the intent and ultimate end state for each Strategic Objective and detailed descriptions were created for measurement information including rational frequency owner and unit of measure

At this stage in the process the team named the Balanced Scorecard tool ldquoVision into Actionrdquo or ViA ndash NMDPrsquos strategic Performance Management tool On June 1 2007 the ViA Themes and NMDP Strategy Map details were presented to the board of directors by senior management and approved along with a plan to proceed to the next phase of department cascading

A ViA Communications Team was formed to communicate ViA progress to employees on the development of the new Mission Statement Vision Statement and the 13 Strategic Objectives This was done through a combination of pulse checks newsletters

38

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39

Vol 6 Issue 2 2009

intranet messaging e-mails from the CEO leadership training all-staff meetings and promotional contests This was an extremely integral step in the ViA roll-out that provided transparency and generated excitement around the benefits of ViA

V ViA Department Cascading

All departments at the NMDP were scheduled for sessions to develop their department Objectives Measures and Initiatives These were facilitated by internal subject matter experts and included an initial two-day exercise to help the department identify where and how each department contributed to the NMDP Strategic Objectives Worksheets and other preparation material were provided to each participant and collected prior to the cascade session The pre-work information was used to expedite the affinity exercises at each session

These were followed up with sessions to finalize detailed measures with individual measure owners Department teams were comprised of five to 10 key members of each department

The department cascading efforts provided a number of primary benefits to the organization including

bull The articulation in easy-to-understand terms of how each department contributes to the overall success of the Strategic Objectives and ultimately the NMDP Mission

bull A tool to identify gaps or overlaps between departments that can also be a tool for departments to communicate with each other in terms of supporting initiatives

bull A tool for each department to prioritize initiatives and activities Also it provided a mechanism to support requests for funding new opportunities

bull A clear framework for corrective action where measures are not being successfully met

bull A common format and mechanism for reporting department performance to officers and senior management

bull A common format and mechanism for reporting and reviewing department performance with staff

bull Help with the development of individual job performance appraisal content ndash which should be designed to support Department Objectives

Department Cascading was complete in early 2009 There are over 200 separate department measures that are tracked each quarter

VI NMDP ViA Today

NMDP has established a department Champions Council Members of the Council are becoming experts at using the automated ViA software Today this is being used at department staff meetings to facilitate discussion around corrective action for underperforming or unacceptable Department Measures Departments use the department Strategy Maps to guide staff meeting discussions on performance measures and corrective action plans

ldquoAll business cases or requests for funding must be submitted with clear tangible descriptions of how the effort will impact ViA Strategic Objectivesrdquo explained Boo ldquoOnce all business cases have been submitted to the officer group for final approval they are prioritized in order of their impact on ViA Strategic Objectivesrdquo

All strategic and department measures are required to be reported into the ViA system each quarter Each is color coded based on an officer-approved target matrix Each measure owner is required to provide comments regarding the measure performance for the quarter and discuss how he or she expects the measure to end the fiscal year This information is shared with senior management for review and follow-up with measure owners ifwhen necessary

Senior management uses the color-coded NMDP Strategic Map as a basis for discussing quarterly performance and identifying

Strategic Objective areas that may need attention corrective action andor more resources NMDP tries to focus not only on corrective action items but also highlight success stories where outstanding performance has been reported

All employees will soon have access to the web-based ViA application to provide as much transparency and visibility as possible in order to become a truly strategy-focused organization

ldquoVision into Action has been successful within the organization to a great extent because of the consistent support and guidance provided by NMDP leadership including our CEO Dr Jeffrey Chell my fellow Officers and the Board of Directorsrdquo said Boo

Howard Rohm President and CEO of the Balanced Scorecard Institute is a Performance Management trainer consultant and technologist with over 40 years experience Mr Rohm has helped dozens of organizations worldwide build Balanced Scorecard and other performance planning and management systems

48

Pe

rform

Mag

azine

Info

rmatio

n in

Actio

n

A community for BIRT users and developers sponsored by Actuate

A Report Writing Portal lets your end users browse reports modify them and even develop

new ones You can set one up in three steps when you use AJAX-based BIRT technology

Because the end user tools to modify and create reports are AJAX-based therersquos no desktop

software to install Users get the reports they need quicker while the burden on development

resources to create new reports is reduced

BIRT Exchange is a community site that offers the broadest collection of resources for the Eclipse BIRT (Business Intelligence

and Reporting Tools) project and for integrating spreadsheets with Java The site is sponsored by Actuate a co-leader of the BIRT project

Sponsored by

See a Demo

at Booth

602

For More Information

Contact us by phone at 1-800-884-8665

1-913-851-5300 from outside of the United States

wwwbirt-exchangecom wwwactuatecom

40

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41

Vol 6 Issue 2 2009

JCIrsquos previous approach of one-off negotiating as well as its spirit of continuous improvement and customer focus meant that it had only one-off measures in every location The company for example had 127 variations of the measure lsquomaintenance managementrsquo Many were very similar but since they were not exactly the same they could not be compared effectively Inefficiency at gathering and maintaining data at different locations across the globe made the task difficult as well Data was collected any way possible thrown into a cell or a Power Point slide and handed in at the end of the month It was highly inefficient extremely customized at every location and did not allow any ability to benchmark compare or look at best practices These concerns and requirements drove JCI on its scorecarding journey

The Solution

In initiating its scorecarding solution JCI first had to establish the right measures Business leaders were chosen for all of the scorecard categories and for each of them a business owner was selected for each region these business leaders and owners were responsible for defining the standards and measures Data collection systems in some cases proved difficult there wasnrsquot always centralized information available ndash in some cases data needed to be gathered right down at the account level This meant that the process of data collection and identifying measures was a significant job To get started though JCIrsquos web programmers were able to put up some scorecards quickly to allow the company to start architecting measures this allowed business leaders across the globe to start identifying their measures and to put the processes in place regionally to collect information

Before committing to a technology JCI wanted to know 100 percent of their business requirements and this was the point of their web-based scorecard To assist in this endeavor Actuate ndash prior to selection ndash let the company test drive their product The JCI team went through and looked at every single screen determining where they had to configure the tool and for every single screen they also made what they called a lsquoblueprintrsquo creating an Excel template with fields to correspond with every field on each screen It was incredibly detailed work but they wanted to ensure no mistakes were made and that the business requirements were defined To accomplish this there was an extreme amount of detailed coordination globally with twice-weekly meetings for the worldwide team in charge of the initiative A byproduct of the process was that the team learned to use the Actuate BIRT Performance Scorecard and basically built all of the blueprints for the project design

JCIrsquos audience for the project upon kick off were the 300 external customers that would have access to this information Customers previous to this were getting their information via Excel and PowerPoint In addition to these external customers was the population of approximately 1000 internal users within JCI itself These included account leaders and functional leaders including those from HR Finance Safety etc

Three primary functions of the project were

1 To replace the PowerPoint slides used in global and regional monthly internal operational reviews

2 To very quickly be able to become best in class JCI wanted everyone who had an account to be able to see where they sat compared to their peers This provided individuals ndash when faced with a problem ndash the ability to quickly identify and contact others who had solved the same issue

3 To standardize customer faith in contractually required performance measures This was a key goal of the company which felt that if they were going to benchmark and compare they needed to bring in the best practices learned at one location to their work at other locations

These three primary functions were heavily loaded in JCIrsquos rating system as the company set out to choose the right software for their scorecarding project It was also important that the software be intuitive as there was no time for hundreds of hours of global-wide training The software had to be rapid and easily configurable with limited IT assistance As JCI is a very large organization with a lot of systems in place the team in charge also wanted the software to be easily adjustable to the companyrsquos rapidly changing business they didnrsquot want to have to get into queue for IT every time a change had to be introduced or a new customer added

JCI Chooses ActuateFour vendors were evaluated for JCIrsquos scorecarding project with a global team in place to provide a systematic discussion of the defined business process and requirements The product chosen was the BIRT Performance Scorecard JCI had 30 days of Actuate Professional Services and planned for monthly micro improvements and quarterly macro improvements

Upon purchasing the BIRT Scorecard in January 2007 using the blueprints theyrsquod established already the company wrote their business processes They were able to go live in 90 days helped by the homework they did with the blueprints the web scorecard and the data collection processes It was an incredibly smooth implementation overall

The Results

Whereas JCI originally started out with a model of one-off negotiations with customer measures the scorecarding project has led to approximately 70 percent agreement on JCI standard metrics The company does a customer satisfaction survey both annually and quarterly and aims to demonstrate evidence towards continual improvement

Since implementation of the project the company has also been solving its data integrity issues Previously two regions might have been using the same words but not the same data collection methods ndash this made it impossible to introduce benchmarking and comparison between areas Now those problems are being solved and benchmarking and comparison are possible to the benefit of both JCI as it strives for best-in-class status and its customers

By David F GiannettoCEOThe Telos Group

Johnson Controls Incorporated (JCI) is a $38 billion company with a total of 140000 employees working out of more than 1300 locations in 125 countries worldwide Headquartered in Milwaukee Wisconsin the company provides a range of services including

real-estate portfolio management property management facility management and design and construction services

To initiate its scorecarding project JCI began by creating five categories of measurement Business Performance (this includes all financial measures) Service Delivery Customer Satisfaction Safety and People While the other four categories may be typical to most organizations the Service Delivery category was designed to take JCIrsquos measurements down to the client-site level which includes over 300 locations globally where the company has contracts In some cases there might be one staff member assigned to manage a single building while other times a staff member has a whole portfolio they maintain Measuring performance at all of these locations and levels proved a complex undertaking

Strategic Initiatives

Like all service providers JCI has to demonstrate that they add value Scorecarding allows them to do this both internally

and externally using data-driven results Since JCI has always been very much a data-driven organization anyway with a manufacturing background this was a natural fit for the corporation

JCIrsquos organization-wide motto is to be as good everywhere as they are somewhere Theyrsquove found that in any one account they may excel in several areas but perhaps not in all areas elsewhere though on another account someone else might have the skills needed to fill in those gaps The companyrsquos goal was to share information and communicate it between different locations across the globe allowing the company as a whole to get better faster and to benefit from the skills and strengths of its individual members Scorecarding was introduced as a way to help share this information and to introduce benchmarking within the company

The Requirements

To get started on their scorecarding initiative JCI examined each of their US contracts What they found was that there were no standards between clients and therefore no ability to benchmark Customers though wanted the ability to find out how they stood in relation to other customers This was impossible under the circumstances

Global Operational Excellence and a Performance Scorecard System A Case Study of

Johnson Controls Incorporated

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Vol 6 Issue 2 2009

Out of Touch With Crucial Data

Previously when Helzbergrsquos divisional and regional vice presidents went on the road access to their key performance metrics was restricted Without a laptop and a WiFi or hotel network connection to the internet they were ldquoflying blindrdquo according to Greg Backhus Helzbergrsquos Director of Data Warehouse and Decision Support Systems As a result they did a lot of faxing it was the only way they could get the current data that they needed in order to

About Webalo

Webalo technology transforms enterprise applications and data to make them compatible with mobile

devices This eliminates the need for traditional custom programming reducing the deployment of mobile applications from weeks or months to in most cases less than a day The resulting ldquoanywhere anytime on-demandrdquo availability of enterprise data on handheld devices turns such devices into viable alternatives to desktop laptop and palmtop computer hardware and lets mobile employees work more productively ndash on the spot ndash to solve problems answer questions monitor operations close sales and make informed decisions

The Webalo Mobile Dashboard Service ndash available in both internet-based and enterprise intranet-based implementations ndash lets non-IT business administrators securely specify the content of mobile-accessible information and the companion Webalo Proxy Server configures it in seconds to conform to the native user interface of any BlackBerry Windows Mobile Pocket PC Palm Symbian or Java-enabled smartphone

CLARITY CUT AND CARATSHow Helzberg Diamonds Made Sales Data Clearer Eliminated

Delays and Lightened the Load for its Divisional Executives

A diamond may be forever but a lot has changed in how theyrsquove been marketed and sold during Helzberg Diamondsrsquo nine decades in business A single store has expanded to nearly 300 locations from coast to coast and border to border Sales can also be made online now And information about every sale can be accessed in an instance through the companyrsquos enterprise systems

bull Compare actual sales to their goals and plans

bull Determine transaction counts for total dollar volume and average sales value

bull Break down sales by product category

bull Monitor attachment rates for products and services related to the main product sale

For example onsite at individual stores it was difficult to gauge how an active price-reduction sale was affecting unit and dollar

volumes unless there happened to be a coffee shop next door with a WiFi connection that would let Helzbergrsquos executives access the enterprise system

The Three Cs of Information Access

The three Cs of diamond grading ndash clarity cut and carats (or weight) ndash turned out to be applicable to data access as well But it took a transition to handheld devices and to the Webalo Mobile Dashboard to achieve it

Though laptop computers had gotten lighter and lighter over the years they were still considerably heavier than the Pocket PC-based smartphones that Helzbergrsquos executives used Since they were carrying those handhelds in addition to their laptops the VPs were open to the idea of being able to

bull Access sales metrics on their handhelds

bull Have data available on-demand from any location with a wireless signal

bull Navigate quickly to the figures they needed

bull Get updates to their metrics automatically

bull Review the information offline

It was the only time that carrying less weight ndash or carats ndash added more value Using a simple step-by-step wizard Helzbergrsquos support staff was able to configure their enterprise reports in a matter of hours They then assigned access privileges to each executive to control who could see what information and uploaded the file to the Webalo server That satisfied how data was ldquocutrdquo

For each mobile user regardless of the brand and model of smartphone they used the Webalo Mobile Dashboard conformed the information to the devicesrsquo user interface The application worked and looked exactly like any other application developed specifically for their mobile devices the on-screen text was easy to read and navigation used the same menu structure That meant there was no learning curve to delay user acceptance and productivity Clarity was essential and the Mobile Dashboard delivered it right down to the ability to bookmark commonly-referred-to displays for instant reference enhancing on-the-spot productivity even more

Speed and Simplicity

Productivity was also improved on the IT side Without the need for custom programming to conform the information to each smartphone brand and model deployment was reduced from months to hours

Since adopting the Webalo Mobile Dashboard Backhus says ldquoThe Divisional VPs find it invaluable They get more done because they donrsquot have the delays they used to haverdquo Decisions that used to have to wait for current data are now made right away relying on the right data presented in the right format

44

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Vol 6 Issue 2 2009

Sustainable practice has graduated from being market hype

to becoming a strategic initiative important for driving a successful enterprise It not only reduces a companyrsquos impact on the environment but can help organizations achieve a competitive advantage to build their brand impact top and bottom line and improve customer acquisition satisfaction and retention

Creating a road map towards sustainable management can require an entire shift in corporate thinking one that involves searching for buy-in at all levels establishing useful metrics and introducing practices that get beyond the green hype The end result though is not just a greener organization but also one with a more prosperous future

Why Sustainability

In August 2008 a survey undertaken by CIO Insight examined green practices in business focusing on the reasons why CIOs introduce sustainability efforts into their organizations The number one reason why organizations went green the study found was that the people within those companies sincerely had a concern for the environment A total of 74 percent of respondents answered that way 32 percent of which listed it as their most influential driver

Other influential drivers named in the survey included

Financial Drivers Companies found sustainability to be a way of cutting costs If they could cut energy costs not only would that help the environment but it would also help create cost savings The second most popular answer in the CIO Insight study financial impacts are key to implementing sustainability in most organizations Examples of financial impacts possible from sustainability were presented at CFO

2 The CFO Green

Conference which took place in May 2008

bull Dupont reduced its CO2 emissions by 70 percent saving the company $3 billion

bull FedEx redesigned its delivery trucks making them more aerodynamic This reduced the amount of particulate pollutants nitrogen and carbon the trucks put into the atmosphere and it also reduced the companyrsquos fuel costs exceptionally

Customer Image In the CIO Insight survey the third motive listed by CIOs for introducing sustainability ndash at 64 percent ndash was company image Consumers are becoming more and more aware of whether companies or organizations are living up to sustainability ideals They will notice if a company image or brand value reflects this concern for the environment Meaningful sustainability efforts can help gain customer approval as in the following case

bull Wal-Mart and Procter amp Gamble together agreed to sell liquid laundry detergent only in concentrated form This saved shelf space for Wal-Mart reduced water use by 400 million gallons for Procter amp Gamble and eliminated 45 million pounds of plastic waste

Regulatory Requirements The surveyrsquos fourth most popular reply ndash at only 25 percent ndash were current or potential regulations including the cap and trade systems being implemented which will require companies to buy carbon and sell carbon credits

Shareholder Pressure Finally at fifth in the CIO Insight survey ndash with 14 percent of responses ndash was shareholder or public pressure pressure building from shareholders to put forth sustainability efforts Pressure at this level is often mixed though as shareholders are also likely to express a desire that they donrsquot want shares to decline in value The general message may be that it is fine to introduce sustainability measures only as long as there is no risk that they will hurt the company

A Road Map Towards Sustainability

Step 1 Identify What Drives Your Organization

The first step in the road map towards sustainability is identifying key drivers Some drivers vary from one organization to another while others seem to drive any organization regardless of the industry Drivers incude

Internal drivers

bull Cost cuttings and savings

bull Employees including both the satisfaction of current employees as well as the recruitment and retention of future employees

bull Investment

External Drivers

bull Stakeholders including both those within the company ndash the employees discussed above ndash as well as stakeholders outside of the company

bull Brand awareness because consumers are becoming increasingly aware of the choices that are available to them and are making choices based on a companyrsquos green initiatives

Future drivers

bull Tax incentives

bull The recruitment and retention of future customers

Step 2 Select Your Metrics

In general terms sustainability metrics will fall into one of four major categories those that affect the climate those that affect the oceans those that affect human health and those that affect common issues like the land the water the wildlife etc

Within those large categories are smaller areas of interest that companies must examine to introduce organization-wide sustainability management carbon monoxide use energy consumption water consumption and fuel consumption are prime examples

Carbon Monoxide Use Many of the questions companies are asking themselves in regards to carbon monoxide use include

A Road Map of Key

Sustainability Metrics

That Impact Bottom

Line

46

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Vol 6 Issue 2 2009

bull How much carbon monoxide do we produce

bull Which processes in our overall manufacturing or delivery use produce the most emissions

bull Can we determine the indirect emissions For example leave a computer plugged in and itrsquos still on the grid creating an indirect carbon dioxide emitter How can we measure that

bull Whatrsquos our cost Do we have metrics that tell us what our CO2 emissions cost us

bull Can we predict into the future If we continue on this path without doing anything where will we be next month Next quarter Next year

Some examples of metrics related to carbon monoxide use include carbon dioxide emissions per employee (similar to revenue per employee) carbon footprint metrics and transportation distances

Energy Consumption Areas of interest related to corporate energy consumption may include the following

bull How much do we consume From what sources

bull Are we on the grid Are we using solar power or wind power or another alternative power

bull How much is used by our data center How do we make the data center greener

bull Where can we reduce consumption

Companies today are reducing energy consumption in a variety of ways by introducing energy audits and looking at energy-saving appliances and also through energy incentive programs for employees within which companies can incentivize and introduce bonus plans

Water Consumption An examination of a companyrsquos water consumption may include some of the following queries

bull How much water do we currently use and where

bull Where in our processes do we use the most water

bull Can we predict how much wersquore going to use in the future

Some of the examples of metrics that companies introduce in terms of water consumption include improved water quality how much impact low-flow or low-volume toilets have on water consumption and how much water is or can be recycled

Fuel Consumption Questions to consider in relation to fuel consumption include

bull How much fuel do we use

bull Where are the inefficiencies

bull Whatrsquos being predicted for fuel usage in the future

bull Can we analyze our logistics so that we can determine how to reduce our fuel consumption For example where are our trucks traveling How are they traveling What kinds of loads are they carrying

Step 3 Recognize Challenges

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly As such easier ways to enhance communication and to increase visibility need to be introduced both inside and outside of an organization

There are also constantly evolving requirements measures and standards of success With everything so new companies are challenged to find ways to compare their sustainability efforts with other organizations The biggest challenge in implementing these processes or attracting metrics may be that they require an entire shift in thinking Additional challenges that exist in the implementation of a sustainability model include

1 Financial concerns Companies must truly see potential for returns on investment or these initiatives can become non-starters or stall

2 Lack of regulatory motivation While not as common as it once was certain organizations arenrsquot motivated to introduce sustainability until government regulations are in place

3 Lack of a formal strategy for sustainability Without a formal strategy it is difficult for companies to determine where they need to go

4 Determining appropriate metrics Companies must choose metrics that are useful demonstrate impact and say something about their own corporate environment

5 Calculating metrics Standard algorithms and calculations exist to calculate metrics but companies must find the appropriate ones and use them

6 Finding quality data to plug into those calculations As in any Business Intelligence project if the quality of the data is questionable then so are the sustainability metrics themselves

7 Determining the scope of the sustainability project The scope is critical Narrow it down to something achievable feasible and useful

Step 4 Learn from Best Practices

What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde

bull Assign an executive champion Without an executive champion to drive the project initiatives are more likely to lack a holistic view and a clear vision for an implementation strategy they may take longer to implement and theyrsquore less likely to yield the required results To provide motivation consider linking the championrsquos salary directly to sustainability savings or to the increased revenues that result from sustainability efforts

bull Implement internal training and education Educate employees on what to expect and what is expected from them

bull Improve communication Communicate both to employees and to stakeholders outside of the organization

bull Start to think about alternative energy management and control strategies

bull Engage the use of technology and services For companies not sure where to begin a sustainability consultant can assist with program selection as can vendors such as Actuate which has a sustainability management solution in place

Step 5 Get Started

Understand that sustainability development is a business opportunity Donrsquot look at it solely as environmental although that is also important Itrsquos an opportunity for companies to introduce more cost-effective processes and procedures and to become more cost effective in their vehicle fleet manufacturing delivery etc

bull Create globally consistent metrics and goals Large agencies have to make sure that the entire group is on board and that they have consistent metrics and consistent goals across the enterprise

bull Find the value and drive the action What is the value of monitoring these sustainability areas and whatrsquos the course of action if you see that theyrsquore going off kilter or are not tracking as expected

bull Start small Initiatives such as these can become incredibly complex very quickly Start small and build in the complexity with each ensuing project

bull Get buy in People need to understand what the metrics are why theyrsquore there and what they mean to each individualrsquos situation (as reflected in individual bonus plans perhaps) Measure using industry-accepted methodologies and industry-accepted protocols continually improve metrics through optimization and forecasting and constantly optimize metrics and forecast into the future

bull As much as possible accurately report to everybody environmental performance Let employees shareholders customers and regulators know If data is questionable fix it get quality processes in place and then run the metrics

bull Determine environmental impact Has waste been reduced Has resource utilization been reduced Has the company improved environmental factors

Also consider using an Open Source vendor The Open Source community is beginning to develop sustainability metrics and Open Source reduces the costs of developing metrics while software costs for the project are reduced as well

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly ldquo

rdquo What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde ldquo

rdquo

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Vol 6 Issue 2 2009

Step 6 Move from Green Hype to Sustainable Action

A successful sustainability initiative involves identifying metrics that will translate into cost savings and benefits while avoiding metrics that are not likely to yield required results To accomplish this start small start with a small department within the organization and then repeat this continuing to repeat it throughout the enterprise

bull Start with basic conservation Change behavior reduce consumption and in the process increase investment

bull Start reusing Improve productivity improve efficiency and create less waste

bull When this translates into cost savings re-invest Grow make larger improvements and increase involvement

Projects that make good starting points

bull Measure carbon dioxide emissions throughout a value chain or product lifespan Look for potential improvements

bull Ensure regulatory compliance By knowing what the regulations are companies can determine what metrics need to be in place

bull Identify ways to promote and profit from more environmentally-respectful goods and services Companies can promote environmentally-respectful goods and services while also using sustainability to help the company

Monitor the effects of each project to determine which strategies have the most impact both physically in terms of

the environment and financially in terms of revenues and cost savings Publicize how metrics are tracking over time

Actuate for Sustainability Management

Actuate for Sustainability Management is a solution by Actuate that integrates highly interactive visually rich dashboards There are pre-built sustainability scorecards strategy maps and over 100 pre-built metrics across the economic social and environmental aspects of sustainability

The Actuate BIRT Performance Scorecard supports the metrics defined including

bull Reducing an organizationrsquos environmental footprint

bull Building green facilities and buildings

bull Compliance and reporting

bull Manufacturing

bull Community and engagement

bull Human development including employee well-being and satisfaction

Actuate for Sustainability Management provides collaboration across regulators consumers and non-governmental organizations Dashboards and scorecards come integrated with reporting so as to improve reporting to stakeholders both outside and inside of an organization All of the products are built on Actuatersquos dependable cost-effective and scaleable platform

Performance Management solutions help organizations understand act on and influence business decisions processes and measures of business success The 2009 Actuate Performance Management Excellence Awards will honor customer success stories in four key areas Over the next several issues Perform Magazine will highlight some of the entries in these categories

Category 1 Go Green

Each year the concept of environmental responsibility has implications for both the private and public sector specifically with regards to how each measures the performance of their operations For organizations using the Actuate BIRT Performance Scorecard to measure the progress of organizational Green initiatives how have they responded to the challenge and how do they use the BIRT Performance Scorecard to ensure they stay on track

Category 2 The Perfect Slice

Successful Performance Management comes in all sizes Some initiatives are enterprise-wide while others are focused around specific business units or functions yet still encompass a holistic approach to Performance Management by looking beyond financial indicators to a more balanced set of indicators This category includes organizations deploying the Actuate BIRT Performance Scorecard with a focus on improving the performance of individual business units or functions and includes the measurement of people and processes

Category 3 Big Bang

Carefully executed Performance Management initiatives begin with a measured approach to the initial implementation and quickly expand to other parts of the organization aligning business units to strategy at each step This category is open to Actuate customers who initially implemented the Actuate BIRT Performance Scorecard to a limited user community and through careful change management and planning expanded the use of the BIRT Performance Scorecard throughout the organization

Category 4 Super Size

Award-winning enterprises achieve breakthrough results in the financial customer operational and people perspectives of their business and leverage internal champions across the organization to ensure ongoing and sustainable success The key to achieving these results lies in total visibility of all business units aligned to strategy This category is open to any Actuate customer with a fully deployed enterprise-wide Actuate BIRT Performance Scorecard implementation

Actuate Performance Management Excellence Awards2009

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HealthNow New York Inc headquartered in Buffalo is one of New York Statersquos leading healthcare companies doing business as BlueCross BlueShield of Western New York BlueShield of Northeastern New York HealthNow in the Central New York region and Brokerage Concepts Inc in Pennsylvania

Improving the health of people and communities are HealthNowrsquos corporate priorities and for more than 70 years the company has been a proactive partner in health working to improve the quality of care and the quality of life for everyone it serves In 2008 HealthNow provided access to care to more than 820000 members and in 2008 company revenues grew to $227 billion

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution and describe what you were trying to achieve as a group function or department

A few years ago HealthNow New York Inc determined that the key to its continued success would be its ability to differentiate itself from other healthcare plans in ways that could not be readily duplicated or copied by their competitors In an increasingly crowded marketplace to get the attention of new customers and retain existing ones HealthNow needed to set itself apart from others

This lasting competitive advantage needed to come from an organizational culture that was dedicated to a relentless focus on meeting customersrsquo needs It needed to be highly responsive supportive flexible and nimble particularly as the healthcare marketplace continues to change with more responsibility placed upon its customers

To that end a new business model was implemented to provide the framework for customer focus Under the new structure the company was divided into four strategic business units (SBUs) each responsible for financial contribution customer satisfaction medical utilization and market share of a specific book of business

Each SBU includes its own set of functions including sales account and broker management product configuration customer intelligence pricing enrollment and billing customer service medical management and HR support Each business unit is led by an executive who is fully accountable for the unit operations and for bottom-line performance of the entire business unit Each SBU is supported by various corporate support functions (Actuarial IT Legal etc)

Implementation of the new business model began with a reorganization of the senior management structure The senior management of each SBU has specific incentive goals as well as strategic goals aligned with the corporate incentive Those strategic goals then drill down to ldquoteamrdquo incentives and to a blend of strategic and operational goals

This was a completely new way of looking at our business It was a blank slate requiring new processes and new methodology as well as an examination of existing metrics and processes to determine what added value and where the strengths weaknesses opportunities and gaps were

Under this new structure the Government Programs State and Federal products SBU ndash which historically had some inefficient end-to-end processes lacked internal controls and had minimal oversight of financial performance ndash was able to set a foundation and develop a growth strategy In order to achieve this mission and to align track monitor improve and communicate performance the Senior Vice President of the Government Programs SBU elected to utilize a Performance Management framework via the Actuate BIRT Performance Scorecard

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

As a point of reference the Government Programs SBU is comprised of a State Government Programs team a Federal Government Programs team an Operations team and a Sales team The Performance Management design team was comprised of the Actuate system administratorfacilitator the Government Program financial reporting manager and two SBU data analysts Input from the various teamsrsquo management staff was gathered as the design got more granular

Discussions around the design of the Government Programs scorecard began with two basic questions

1 What are the handful (ideally six to eight) of key performance indicators that are necessary to run and manage your business and to indicate that yoursquore on the right path to achieving your goals

Defining the key performance indicators was a challenge that required the Actuate system administrator in a facilitative role to get intimately involved in order to keep the discussions focused and high level and to limit scope creep The incentive goals were clearly defined at the corporate and SBU level however the tough question was how should they drill down in the BIRT Performance Scorecard The facilitator posed the following questions to the other members of the design team

bull How do you usually look at your business

bull How are the primary source documents that capture this information structured

bull What other ways do you look at your business

Taking the answers to these questions a step further the facilitator asked the next question Is the drill-down structure the same for the core strategic or team metrics The answer was yes By taking this approach we were provided with consistency in how the teams look at their business and the performance of their core indicators

Once the incentive and strategic goals were identified more leading and lagging operational measures were defined such as

bull Call centers

bull Accuracy

bull Quality

bull Sales Performance

2 Who is your audience

Through the entire measure selection and definition process the design team was constantly reminded to keep a second question ndash who is your audience ndash in mind This helped keep the focus on the critical few and keep the number of metrics down to a manageable amount Links to supporting documentation were created to provide easy access to the granular data without burdening the scorecardrsquos objective

The audience in this case was the SBUrsquos Senior Vice President followed by the State Director Federal Director Operations Director and Sales General Manager It then cascades down to each directorrsquos management team and the data providers

In order to provide a complete and consistent picture of State and Federal performance for senior management where

gt Performance Management Excellence Awards

HealthNow New YorkCategory 2 Entry The Perfect Slice

gt Performance Management Excellence Awards

[ Figure 131 Homepage Map ]

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Vol 6 Issue 2 2009

possible the same or comparable measures were created for each team For example when looking at the various call center metrics ndash even if the definitions and targets slightly differed ndash if one team was consistently exceeding or meeting their target it sparked group discussion around best practices processes staffing and target definition

Utilization of Maps continues to play a major role in communicating performance Again focusing on our audience there is a Map at the Senior VP level which then links to a high-level Map for the State director and staff and for the Federal director and staff The one-page snapshot allows management to easily view performance then to drill down to specifics via additional detailed Maps or Books Because the audience embraces the Maps concept a ldquoWhere is itrdquo Map containing all Maps and Books by SBU was created Itrsquos a quick and easy reference tool

3 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

Quantitative results are achieved through the promotion of visibility and awareness The Return on Investment may not fit a conventional definition but can be measurable and accomplished by challenging the data targets and accompanying commentaryaction plan narrative to drive performance improvement Are the targets realistic yet aggressive Are action plans being documented and carried out Are the actions discussions and decisions leading to improved performance and processes

Government Programsrsquo membership is measured and monitored in various ways via the BIRT Scorecard and other sources For example Federal membership is measured by product then by plan It is also measured by market then by product then by plan By creatively visualizing performance in multiple ways via a Map those same data results can sometimes become very obvious telling a different story that may not be obvious via standard reporting methods It may clearly illustrate that a specific product in a specific market is continuously under-performing for example Fact-based decisions can then be made as to whether or not to continue with this product in this market or it may initiate discussions as to how to grow and retain profitable membership for this product in this market

Another more recent example is an initiative to track claims-review savings By reviewing claims via various processes what savings can be recouped or realized What specific areas are State and Federal teams focusing on that can contribute to overall savings for the SBU Again where applicable there should be consistency in the metrics across

teams Placeholders are included to promote visibility to keep them in the forefront even though the data or processes may not be in place yet But by capturing results on one page via a Map it bridges potential gaps between the teams promoting awareness and synergy across the SBU

4 Qualitative results What ldquosoftrdquo or intangible benefits has the group department or organization received as a result of this solution

A major benefit of the scorecard framework for the Government Programs SBU has been the identification and alignment of roles responsibilities and accountability

The SBUrsquos Senior VP monthly leadership meeting focuses on four areas

bull Performance Performance is covered via the existing incentive strategic and operational metrics

bull Action plans Documenting action plans in the Performance Management Software Suite versus verbalizing action plans establishes ownership and accountability At subsequent meetings management follows up on key action items or plans to determine whether or not the corrective action did take place and if yes did it have the desired results

bull Strategic direction The strategic direction of the various teams is captured as a springboard to strategic thinking discussions and planning So as not to lose sight of short- and long-term strategic planning this aspect of the business now is housed in the BIRT Scorecard completing the strategic planning of the ldquoHow are we going to get thererdquo and ldquoAre we there yetrdquo cycle This holistic approach helps minimize the chances of our scorecard becoming too focused on operational performance and keeps strategic planning dynamic and visible

The value of these metrics is not in the data but in the commentary The individual teamsrsquo strategic direction ldquometricsrdquo are subjective red = 1 yellow = 2 green = 3 The target = 3 Each metric includes a description of the specific strategic path we need to research or move forward on as well as what goal achievement it supports The ldquodatardquo ndash or color ndash is based on basic questions like What did you hope to achieve this month vs What did you actually achieve this month Were there any successes barriers obstacles In addition to accountability the entire SBU benefits from the sharing of information having meaningful discussion taking appropriate action and collaboration

bull Key initiatives The last critical component is the identification and alignment of key initiatives that

are necessary to support achievement of the various incentives strategic goals and direction and operational goals As with the strategic direction metrics the value is in the narrative with the color reflecting what was accomplished for the specific reporting period

5 Innovation Why should this solution be considered an Innovative Solution What makes it unique groundbreaking and superior What unintended results did you realize

Over time the Government Programs Performance Management framework evolved into an innovative solution The process drives performance and isnrsquot necessarily focused on ldquocolorrdquo Rather itrsquos about having the right people in the same room on a regular basis to drive meaningful discussion and to take appropriate action to improve performance

Outside of the standard processes it was the monthly review process that drove effectiveness revisions enhancements and restructuring of the meeting schedule agenda and format The Government Program financial reporting manager would meet with each director and general manager to review their scorecard for completeness as well as for performance from an operational perspective The State and Federal team directors would then meet with their respective management teams to review and discuss performance results in preparation for the joint Government Programs Leadership Meetings The audience included the Senior VP down to team managers key data analysts (data providers) and support function representatives Through trial and error management learned to maximize their time and effectiveness by concentrating on key metrics and topics rather than trying to review all metrics identify leading indicators versus only outcome results and include strategic thinking and initiatives Today the monthly leadership

meetings are much more productive and look at strategic and operational performance

As involvement and participation increased in the team meetings as well as in the leadership meetings it removed silos opened communications enabled the sharing of information and best practices and promoted teamwork across the SBU But most importantly it brought about an awareness and a sense of unity and commitment within the SBU to achieve their goals something that was lacking before

While it was not part of the initial scope management realized shortly after implementation that efficiencies could be gained by replacing an in-depth hard copy monthly report with BIRT-generated results Since the BIRT Scorecard contained the same data with supporting narrative ndash plus additional metrics with narrative ndash monthly performance was captured via a monthly report Book various Maps and BIRT-generated reports Elimination of the hard-copy report was an unintended way of encouraging a more active use of the Performance Management software by management to monitor performance thereby increasing user familiarity with the contents features functionality and navigation

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

Sustainability is achieved through a continuous process of revisiting the scorecard when there are organizational changes looking at the business direction shifts goal changes process changes etc To ensure that metrics are still relevant a filtering process is held with each director and general manager every six to eight months or as necessary During this exercise questions such as the following are asked

gt Performance Management Excellence Awards gt Performance Management Excellence Awards

[ Figure 132 CEOrsquos Book ]

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Vol 6 Issue 2 2009

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

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3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

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Page 7: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

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and KPIs and that your people naturally work on the right projects

Demonstrating this linkage and the success you can attain by engaging the process properly can build the business case Another way is to demonstrate what can happen if you donrsquot fix the problem and its overall impact on the organization

5 Process Management

Process management is a foundation on which to build a cross-functional silo which is a good thing because it allows you to break through the traditional barriers associated with processes which for the most part tend to be focused around individual departments or business units Introducing the concept of process management into an organization can be disruptive especially if this individual is tasked with looking at the linkages of business processes across departments and how they can be improved

Most organizations typically already have departmental managers who run functional areas Whatrsquos missing in most cases are process managers who are tasked with focusing on critical cross-functional processes key to the survival of the organization and to the elimination of waste and increase of value through overall improvements

In organizations with siloed ldquofunctionally drivenrdquo cultures disconnects between different departments create waste and over time this erodes value To ensure success any improvement effort needs to be executed carefully facility by facility or function by function looking at processes baselines and at collaboration across these areas This is key to eliminating inefficiencies in organizations

6 Support for Change

Itrsquos important to recognize that Lean Six Sigmarsquos integration with Performance Management is providing many industries with a new way of looking at running complex organizations As such it needs to be embraced by everybody People need to have a positive view of Lean Six Sigma and the organization has to be prepared for the suggested changes Many times individuals misinterpret recommendations as an attack on how they are executing their duties but actually Lean Six

Sigma can be leveraged to amplify the efficiencies of individual departments by ensuring the same level of scrutiny is applied at process junction points

When managing change it is important to take into account the characteristics of the industry in question including the history of the organization the organizationrsquos overall cross-functional culture and the attitudes of its workforce and management In many instances people donrsquot want to initiate change because they think any new process is a phase that will soon pass and that theyrsquoll be returning to business as usual at some point in the future To ensure these difficult situations donrsquot impede on the Lean initiative there has to be some kind of orientation that has to match the industry in question whether itrsquos government manufacturing health care etc

7 Performance Measurement

Companies must identify their true performance drivers or Key Performance Indicators as opposed to measurements that are collected regularly that donrsquot relate to anything Often those numbers have been created randomly which means theyrsquore not driving organizational performance and as a result wonrsquot provide the insight needed to make informed decisions In other cases these measurements are in place because at some point in time someone thought they would be a good idea but under more careful scrutiny they reveal very little For many this problem exists because people donrsquot know the difference between a metric and a Key Performance Indicator

Performance metrics are measures of an organizationrsquos activities and performance Performance metrics should support a range of organizational needs in order to provide proper performance insight While traditionally many metrics are finance based ndash inwardly focusing on the performance of the organization ndash metrics may also focus on performance against customer requirements and value and also include information and performance insight into employees and processes

As mentioned a criticism of performance metrics is that many organizations choose measures that have little value In most cases this is caused by selecting what is immediately measurable even if these measurements have low value and by a tendency to ignore high-value measurements simply because they seem harder to measure

Key Performance Indicators (or KPIs) are financial and non-financial measures or metrics used to help an organization define and evaluate how successful it is typically in terms of

how it is making progress towards long-term organizational goals KPIs can be specified by answering the question lsquoWhat is really important to different stakeholders both internally and externallyrsquo KPIs differ depending on the nature of the organization and the organizationrsquos strategy They help to evaluate the progress of an organization towards its vision and long-term goals especially towards difficult to quantify knowledge-based goals You can measure a process with many metrics but only a few of those metrics are key for your organization (for example based on your business strategy andor operational improvement initiatives)

The intent of performance measurement is not just to have measurements but to have the right measurements at the right time in the right place and to make sure that those measurements drive overall performance Itrsquos key for setting a foundation for Lean and Six Sigma If there is a good performance measurement system in place that takes into consideration Key Performance Indicators or key drivers then it becomes much easier to set up the entire project

8 Problem-Solving Skills

Performance Management systems become key indicators to groups of individuals within an organization helping them to measure their own performance Without performance measurement without a good system in place they have to wait for their boss to tell them theyrsquore not doing the right

thing Performance measurement then offers a mirror or a type of feedback mechanism on how well a process is doing Problem-solving skills meanwhile provide you with the tools to do something about it

A lack of problem-solving skills can be a major stumbling block for people and organizations they may be measuring things but if theyrsquore not doing anything with the results that becomes useless Recognition is only the first step having the skills to do something about it is the second Itrsquos the critical second half to Performance Management

While problem-solving skills ndash in the manufacturing environment at least ndash have become a priority over the last 10 to 15 years theyrsquore still not ingrained into the industryrsquos DNA People coming into the workforce are coming without proper problem-solving skills and they have to learn them as they go But one problem is that information silos exist and because individuals are not seeing across those silos they miss the solution to the problem at hand Thatrsquos one barrier A second one is that people often think that problem solving is for someone else that itrsquos not part of their job description Theyrsquore not trained in problem solving they donrsquot know how

to recognize problems and identify problems and describe problems and find the root causes of problems Coming up with a structured methodology for problem solving and problem resolution is a piece thatrsquos missed across the board

This is the main reason why problems occur over and over again because people are aware that theyrsquore occurring but donrsquot know how to respond to them they donrsquot have the skill set to do so Moreover theyrsquore often not even allowed to do so because itrsquos not part of their job descriptions Or some problems might be initiated between departments which means that without a culture of collaboration things donrsquot come together

When yoursquore solving a problem it canrsquot be a random event it has to be with structured methodology Before anything a scope must be determined What is the problem How do I identify the problem How can I measure that this is a problem Whatrsquos my baseline performance Now that I know my baseline performance whatrsquos my root cause And the root cause has to correspond to drawbacks that exist in the system that are preventing you from achieving a certain objective

The number one reason why we canrsquot solve problems is that we canrsquot describe them and you can only describe a problem if you have a measurement system in place that helps you understand where you are In any environment a problem is defined as a gap in performance between where you are and where you want to be Thatrsquos it If you canrsquot describe the problem in those terms then you canrsquot solve it Many organizations will say that communication is their biggest problem and they canrsquot seem to resolve it But why not Because communication is a symptom of whatrsquos happening not the problem itself Most times people respond to symptoms and not to actual problems

Finally often when a problem occurs the first thing asked is lsquoWho is at faultrsquo But if thatrsquos the first question then the chance to resolve the issue is immediately lost Because if you ask lsquoWho is at faultrsquo everyone immediately tries to protect themselves if someone feels that they could be at blame then theyrsquore not going to come forward to try to solve the problem ndash rather their objective is going to be to protect themselves When this occurs because they donrsquot want to be at fault they might generate another piece of data to cover themselves another procedure on top of another procedure That only adds more complexity and generates more waste Which is why the first question should always be lsquoWhy did it happenrsquo instead of lsquoWho is at faultrsquo

9 Business Intelligence

You canrsquot run an organization department or process based on data that you received a month ago Which his why in todayrsquos environment information applications need to provide you with up-to-date real-time data in addition to the summarized performance information that can be used to identify potential longer-term performance issues

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Everybody within the company needs information and uses data In most cases employees are interacting with real-time information and making decisions based on historical performance The problem is people tend to want to report on everything which preoccupies employees and takes them away from their core duties Fully integrated Rich Information Applications address these issues by providing employees with real-time enterprise data using a single version of the truth delivered in a dynamic environment that allows any user to interact and modify the information to answer business questions specific to their function

10 Human Resources

Finally one of the things that also has prevented success and is sometimes a stumbling block for Lean Six Sigma deployment is the fact that the training programs that are rolled out by human resources may not be closely aligned with the companyrsquos mission

Once a company starts down the path of Lean Six Sigma the human resource systems need to change alongside it At the heart of Lean Six Sigma is a team approach reward and recognition systems need to reflect that so human resource systems will need to address it

Also critical is that team building has to occur across functional silos You have to build teams and people have to collaborate Human resource systems will drive that

Conclusion

To summarize itrsquos clear that when executed properly there are tremendous benefits associated with an integrated Lean Six Sigma Performance Management initiative Organizational Performance Management information provides strategic information and communicates progress towards a set of goals or objectives across the organization but in instances when things go wrong Performance Management alone does not provide a means to systematically and consistently address problems that arise in the business process or production realm This is where Lean Six Sigma can help assisting organizations in addressing these defects to ensure better results in the future

Norma Simons is president of Simons-White amp Associates a performance consulting company in Ann Arbor Michigan that has been in business for over 16 years and employs performance improvement systems such as Lean Six Sigma Quality Management Systems Business Operating Systems and Balanced Scorecards Certified as a quality engineer reliability engineer and a Six Sigma Black Belt Ms Simons has an MS in industrial engineeringoperations research from Wayne State University in Detroit Michigan Contact Ms Simons at nsimonssimons-whitecom or visit wwwsimons-whitecom

In instances when things go wrong Performance Management alone does not provide the means to systematically and consistently address problems that arise in the business process or production realm This is where Lean Six Sigma can help

ldquo

rdquoldquoWith the Actuate BIRT Performance Scorecard in place now we are able to communicate lsquowhat is important to the organizationrsquo across hierarchies and geographies seamlesslyhellipcause-andndasheffect maps have become the basis for all reviews and prioritization of strategic initiativesrdquo

- Gopal Sharma Senior Manager Business ExcellenceVoltas Limited Dubai

To deliver on its mission to provide high quality cost-effective project management and engineering services to customers throughout Asia Voltas

Internationalrsquos Electrical and Mechanical Division (EMD) adopted the Balanced Scorecard (BSc) as a tool for strategy deployment in 2004 The BSc was designed for EMD in line with the strategic objectives and cascaded further to all units and business heads for effective implementation The measures were tracked on a quarterly basis using Excel spreadsheets

Tracking BSc measures through spreadsheets proved to be ineffective in tracking progress on divisional performance

measures Moreover due to lack of integration the Performance Management tracking through BSc was limited to financial measures only The non-financial measures were not tracked due to lack of aggregation of data across levels and geographies This led to misalignment among various functions resulting in ineffective strategy deployment across the division

The major hurdle was ensuring the integrity of the performance data on non-financial measures hence an integrated system was required to ensure the flow and aggregation of data across all levels Also the reporting structure on various key performance indicators (KPIs) was not streamlined for effective Performance Management in the division

The situation prompted Voltas to seek automation of the Balanced Scorecard with integrated tracking and monitoring of the KPIs related to strategic objectives of the company

The SolutionA team was formed to explore more robust Performance Management tools Voltas conducted its due diligence in

Putting the Wheels Into MotionVoltas Views a Dramatic Shift Towards Transparency

Alignment and Dynamic Response

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finding an appropriate solution and in December 2007 chose the Actuate BIRT Performance Scorecard as its Balanced Scorecard solution

The software was customized in-house to the divisionrsquos needs and implemented across levels and locations The major challenges overcome during implementation were

bull Complexity of location structure and measures structure This sophistication and flexibility was a requirement to ensure the integrity and correct aggregation of the data and needed to be incorporated into the overall system

bull Aggregation of financial performance data from different countries in different currencies Led by the local support team and Actuate partner EU Partners a currency conversion facility was created to overcome this hurdle

bull Software access through smart client route at project sites A weak internet connection problem was resolved by Actuate Customer Support which installed the clientrsquos executable file on the local PC An Excel import and export tool is used for data updates to the system

About VoltasElectrical Mechanical amp HVAC Solutions (International) is part of Voltasrsquo Electro-Mechanical Projects amp Services cluster Established in 1978 as Voltas International Limited (a wholly-owned subsidiary of Voltas Limited) to handle international business interests the business looks after core business activities in the Mechanical Electrical amp Public Works (MEP) project areas specifically turnkey projects in

bull Electro-mechanical works comprising electrical building services HVAC (heating ventilation amp air conditioning) plumbing public health fire fighting ELV amp specialized systems

bull Electrical power projects

Voltas Limited a TATA enterprise offers engineering solutions for a wide spectrum of industries in areas such as heating ventilation and air conditioning refrigeration electro-mechanical projects textile machinery machine tools mining and construction equipment materials handling water management building management systems indoor air quality and chemicals EMD is one of four independent business-specific clusters within Voltas Ltd each with its own facilities for market coverage and service to customers

All of the above challenges were addressed easily to match the companyrsquos needs thanks to the versatility and customizable features in the BIRT Performance Scorecard

The initial rollout of the Performance Management system started in March 2008 with successful system deployment across all locations by the end of August 2008 The implementation involved user training on the software and BSc measures

Benefits

All business reviews are now being conducted online in the system both at the regional and corporate levels Managers can view the status of each project by just logging in as well as review and approve actions planned by the project lead without waiting for any formal performance review meetings This has led to a dramatic shift in the way Voltas manages its performance and has improved the transparency in tracking KPIs

Major benefits derived from the implementation are as follows

Solution OverviewIndustry Engineering Services

Company Size $400 million 3800 Employees

Challenges

bull Spreadsheets ineffective in tracking divisional performance

bull Non-financial measures were omitted due to data integrity issues lack of aggregation

bull Strategy unevenly deployed leading to misalignment

Solution

bull Actuate BIRT Performance Management Software Suite

bull Integration consulting services

bull Customized smart client

Benefits

bull Transparency in tracking KPIs all in one place

bull Alignment of action plans to division strategy

bull Dynamic Performance Management timely reviews

Design Stage

bull Measurement system evolution and refinement during system configuration

bull Clear consensus on KPI definitions and descriptions

bull Minimal support required during configuration and implementation

bull User training and access with individual user ID and password cementing ownership and accountability of the scorecard across hierarchies in the division

bull BIRT Scorecardrsquos ease of customization to business needs enabled instantaneous execution of required changes in the system

Rollout and Implementation

bull Strategy Map and other Cause amp Effect Maps have become highly illustrative in communicating the relevance of various measures and their integration with strategic objectives

bull Action Plans are fully aligned to divisional strategy and can be monitored online

bull Timely business reviews and dynamic communication of performance

bull All key performance indicators are tracked and available in one place business performance reports are generated as and when required

Going forward Voltas plans to roll out BIRT Scorecard access to its subsidiaries and to joint ventures in order to track the Balanced Scorecard of allied companies on the same platform The goal is to use it as a comprehensive Performance Management tool for the international operations of the entire company

Voltas has branch offices in Abu Dhabi Dubai Qatar Singapore and Kingdom of Saudi Arabia For more information on the company visit wwwvoltascom

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Vol 6 Issue 2 2009

In todayrsquos economic climate careful decisions are needed to help

business remain competitive and to continue to succeed To stay smarter they need to build deploy and maintain business-critical reporting and information applications

Open Source Business Intelligence while it comes with its own set of technical challenges and misconceptions is often the right solution to deliver that Actuatersquos Business Intelligence Reporting Tools (BIRT) Open Source solution ndash developed with the Eclipse Foundation ndash is one example of a robust and web-centric Open Source Business Intelligence tool

The Open Source Model

An economic shift has occurred in the past decade introduced with the rise of the internet The internet provides connectivity which in turn connects demand to supply this removes the capital equation and shifts conditions in the market People with computers all over the world provide the means of conduction and with easy ways for these people to connect they can easily collaborate on projects with very little infrastructure This in turn led to the popularity of Open Source

Open Source has had many consequences for the enterprise software market primarily by making it a commodity market and by driving down price It also allows people who have a desire to do something to make money from doing it Production inputs are widely distributed and the raw materials are there to produce things in new ways Many argue that this shift has been about software licensing but actually it is largely about the production and distribution of software it is therefore a change that is more about economics that about ideology That economic base ndash the combination of connectivity of easier ways to market produce and distribute software and the fact that the internet acts as a giant copying machine ndash changes the conditions under which software can be sold That is why Open Source continues to disrupt the market and to force vendors to come up with new ways to cope with it Enterprise software is not going away rather it has been forced to shift

A 2008 survey by North Bridge Venture Partners asked Which sector of the software industry is most vulnerable to disruption by Open Source At the top of the resulting list was web publishing and content management a market thatrsquos currently highly fragmented and therefore perfect for introducing Open Source products The second sector was social software an entirely new category that has been difficult to define and difficult currently for commercial vendors to make money from again Open Source is the ideal solution

Business Intelligence was the third sector listed in the North Bridge survey Again this is understandable since BI tools and data warehousing tools are exactly that tools While end users consume the outputs theyrsquore not themselves often put into the hands of end users rather IT sets up the meta-data defines metrics etc Which means Open Source is targeted at the right audience there is a platform in a data warehouse that has multiple layers any one of which can be Open Source or

LEVE

RAG

ING

O

PEN

SO

URC

E

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proprietary Those modular boundaries make Open Source an ideal fit

What IT Looks For

IT acts ndash for the most part ndash as the gatekeeper to Business Intelligence When searching out new software IT generally looks for three things

1 Better alternatives to the status quo Specific features that are better for example

2 Ways to cut costs With commodity infrastructure in place IT has to try to drive down costs

3 Unique attributes There may be something they want to do but cannot do using their current system or features that might not be available (For example their mainstream BI package might not have web-accessible dashboarding that can be self-service)

Why Open Source

In addition to examining the sectors left vulnerable by Open Source the North Bridge Venture survey also asked What makes Open Source attractive Price was the most popular answer In addition to the capital cost of licensing Open Source drives down acquisition cost as companies no longer have to go through heavy proof of concept Itrsquos also easier to trial things and if license costs are less then maintenance costs are also less Finally unbundling maintenance support and service means that businesses can choose from a menu of services instead of being forced into a 20 percent single lump fee

The study also showed that companies found that Open Source offered freedom from vendor lock-in In addition it is flexible with easy access to commodity code in order to develop embed and build content into websites

Another 2008 study by The 451 Group gave a list of what organizations saw as benefits to Open Source once it was already introduced At that point flexibility ndash by 05 percent ndash came out over cost In this instance though the definition of flexibility was different respondents were impressed by the fact that there is no vendor that dictates when they have to upgrade how they have to upgrade and why they have to upgrade For a commercial vendor at end of life or desupporting versions of their software a sales and marketing schedule will often require a release every Q1 whether they are ready or not As a result

companies will be forced into an upgrade they donrsquot want that was released simply because marketing dictated it and not necessarily because it was ready Open Source is typically not under those same types of pressures

Buyers were also impressed by scaling costs if an organization has 50 initial licenses and pushes it out to 150 more people in BI lowered costs come in beyond the initial capital costs As well companies are not dependent on vendors for service or for additional pieces of technology

Whorsquos Adopting

Open Source Business Intelligence adopters include

bull Independent software vendors solution providers and OEMs They are taking Open Source BI and pushing it into products that need reporting and dashboards Theyrsquore beginning to build capabilities using Open Source into quality networking gear file servers and databases

bull People who have traditionally been underserved and have not been getting what they need for whatever reason They may not have had the budget or their current vendor might not offer some of the functionalities that they want Possibly it could be over-serve at least half of the features in a major BI stack today never get used

bull Developers Web developers provide information ndash especially database information ndash on their websites while internal developers have to build reporting features into applications and typically do not have access to the tools they need Tools like BusinessObjects and MicroStrategy live in a data warehouse in a different area of the organization and canrsquot be embedded easily

In terms of the organizations adopting Open Source BI many are on the small side with less than $100 million in revenue But very large organizations are just as likely to adopt Open Source solutions as well This is the inverse bell curve of Open Source BI implementation

Smaller-sized organizations have fewer data sources and more manageable data volumes are more interested in cost flow and also donrsquot have the same level of data volume and complexity that might exist in a medium-to-large organization or deployment Much more manageable data volumes less cost to scaling and fewer technology issues in terms of complexity make these ideal environments for Open Source

Open Source drives down acquisition cost as companies no longer have to go through heavy proof of concept ldquo

rdquo Large organizations though have equally ideal environments They arenrsquot for the most part introducing Open Source at an enterprise-wide level but rather have projects with specific features that need to get done The project in question may exist only within a single department which pushes down data sizes and deployment complexities making them a good target

Introducing Open Source BI

Open Source BI use often comes in at the edges and results from discontinuity An example of such a discontinuity might be a company restart many data warehouse projects started with a particular data model ndash copying a production database and putting reporting on it for example ndash and have to do a schema change At that point the cost of switching from one BI tool to another or from one ETL tool to another is fairly low Everything has to be changed anyway metrics change schemas change queries change The same is true with platforms moving from one database to another involves an integration of an entirely new set of systems These discontinuities often allow for the introduction of Open Source

New interface requirements can also lead to Open Source implementation as a company attempts to bring data-warehouse data into an application deploying it out through a website or via an application But some users may only need a few single simple production reports and donrsquot need to be served through a tool that costs between $1000 and $1500 per seat which is the average per-seat deployment cost of iTools Companies can reserve their BI tools for core individuals who need the flexibility and features and can build Open Source into applications for large-scale but simple reporting

In fact in most cases organizations donrsquot replace an entire system with Open Source That only happens in the cases of large discontinuous change where the features are good enough in an Open Source tool the deployment matches and there is no reason for pushing through a high-cost high-complexity solution Whatrsquos more likely to happen is an augmentation where a particular department ndash or a segment of users or particular class of tool ndash is given something that they need in Open Source For example a BI tool might be good and flexible with interactive reporting that can get production reports out and do the schedule but perhaps doesnrsquot have statistical features rolling out something like R to only a couple of analysts and layering that on top of the warehouse may be the solution

Augmenting and bringing in new features and capabilities in areas where Business Intelligence tools might be weak is typical of Open Source implementation This is an opportunity to augment an existing environment in a cost-effective manner to build features into that environment and to get the features specifically needed without paying for a whole package that isnrsquot all necessary

In contrast with what happens in the case of most traditional models much of the time the need for Open Source applications comes from the bottom-up and is established from a point of need from a developer or a department trying to get something done There are no enterprise sales representatives making calls or going through a procurement process where vendors and financials are examined There is also the ability to put something out in real terms instead of relying on a fake proof of concept where following that proof of concept companies are forced to either pull out and throw it away or to license the software

Roadblocks to Implementing Open Source

Misconceptions still exist around Open Source based largely on the idea that these projects are being developed by teenagers in their parentsrsquo basement a myth that is more than a decade outdated as today Open Source projects are generally run by commercial Open Source providers with paid developers Still a lack of information can prove a problem for organizations introducing Open Source This often plays out in the legal department which reviews all contracts and may not be informed when it comes to Open Source software licenses An Open Source license will be missing half the standard clauses the lawyers are used to clauses of restriction that dictate how to deploy what can be deployed where it can be deployed and how the software can be used Most Open Source licenses do not have these same clauses and lawyers will want to know why theyrsquore missing That can be another road bump in getting the software acquired

Support can also be more confusing Most major projects have commercial vendor support behind them But unbundling is also available which means buyers donrsquot have to purchase support but instead can buy the subscription model that covers only bug fixes integrated patch testing and certification against databases This is because enterprise support is often overrated more often than not internal support solves more problems than the vendor does

Augmenting and bringing in new features and capabilities in areas where BI tools might be weak is typical of Open Source implementation ldquo

rdquo

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Implementing Actuatersquos BIRT Open Source Technology

BIRT Actuatersquos Open Source technology was developed with the Eclipse Foundation and does an exceptional job in meeting web-reporting requirements while utilizing the Open Source model Itrsquos a Java tool with a web-centric development and design paradigm BIRT reports are built with the intent of publishing to the web exclusively or more exclusively than is the case with other alternatives that are typically intended originally for paper BIRT is also very modular and very component based allowing users to do as much or as little as they want to deploy as much or as little as they need when theyrsquore creating their reports or embedding this technology within their environment

One of the goals of BIRT is to cater to the power that is needed for many of todayrsquos reporting projects but also to offer the simplicity that means an individual report creator can be very effective at doing their job simply by using the BIRT design tool itself That goal has proven successful so far with 65 million downloads of BIRT since the projectrsquos inception 45 million of them in 2008 alone BIRT is in fact one of the fastest growing Open Source projects on the internet right now

BIRT does a great job of supporting a wide variety of report types it supports BRD Pro BRD BRS and IV and as users

build components throughout the project they can reuse those elements in subsequent future reports It also supports standards such as HTML cascading style sheets JavaScript Java and XML adding the underpinning technologies for either customization or enhancement and allowing developers to leverage BIRT while using the skills that theyrsquove already developed As an integrated report development environment BIRT also provides graphical and robust tools for the most common reporting tasks including query building ndash such as graphical object layout ndash and representing such as charting As well BIRT includes both online help and documentation

Itrsquos an incredibly robust tool and is capable of being embedded of being delivered to small groups or across the enterprise leveraging Actuatersquos commercial platform New capabilities include the ability to add interactive Flash objects into the environment to build personalized dashboards to create ad hoc reports and to create interactive viewing Actuate also recently introduced the JavaScript API which allows users to embed approximately a dozen lines of JavaScript into any webpage and from that access any content within the Actuate environment including any BIRT report that is hosted in that environment which in turn can be delivered to any type of JavaScript-enabled browser

BIRT is built in the Eclipse Project Actuate sponsors and chairs the project management committee for the BIRT project It is Actuatersquos third reporting technology built from scratch which means there is a high degree of long-term experience integrated into the BIRT environment

How the End User Benefits From BIRT

BIRT comes complete with 65 million sets of eyes worldwide looking at it and suggesting changes That has driven its enhancement in the marketplace The overall number of committers on BIRT historically is high and the current level of committers on the project remains high itrsquos nearly the same as Apache committers in the market today

Actuate ndash in its sponsorship of BIRT ndash has added and created a community called BIRT Exchange which is a resource for the BIRT development user to continue to enhance their BIRT expertise and to continue to gain help if needed from the BIRT community No question goes unanswered on BIRT Exchange which is at odds with what people often find in other Open Source forums where a huge number of questions remain unanswered from the audience Within the BIRT Exchange environment there are three different forum administrators who make sure every single question is answered BIRT Exchange also hosts the documentation for the entire BIRT product line as well as videos and webinars designed to further the training and adoption of BIRT itself

Actuate employs more than 50 developers on the Eclipse project itself with documentation and publications available in support of the project available at amazoncom

Actuatersquos Value Add

BIRT is modern and flexible and open Since itrsquos built within the Eclipse Project anyone who knows Eclipse knows how to use it Actuate adds interactivity which take the form of Flash widgets embedded into the BIRT development environment ndash allowing users to build their own types of dashboards ndash or through interactive viewing to transform a report from being static to something an end user can manipulate and evolve over time This is important because reports typically become obsolete quickly the requirements that they originally meet changes as users use the reports to become smarter and then the questions they want answered change Which means that providing this kind of interactive content is key to the success of a Business Intelligence project

Extending BIRT Capabilities

BIRT development tools and the BIRT engine are available as Open Source and are widely distributed Typical capabilities such as JavaScript and SQL skills are required to become familiar with the BIRT product

The second level of capability is the ability to embed BIRT within applications and to begin to add degrees of interactivity to the environment such as Flash widgets or the interactive viewer This allows a user to create robust rich embedded applications

The third level is for workgroup or departmental-style applications or small organization-type applications To adopt this type of Open Source technology individuals would introduce BIRT plus the single server iServer Express a hybrid of Open Source and commercial technology

Finally there are organizations that seek enterprise-caliber or enterprise-level deployments that want to publish BIRT applications outside the firewall to secure these applications for millions of users and to support very high degrees of performance and reliability This type of scalability requires both good design and trial and error as operating systems platforms and other elements continue to evolve Maintaining best performance for very large-scale environments means making sure that each one of these items is optimized

Open Source Vs Commercial Technology

The overall platform that BIRT delivers is a complete set of both development and deployment options for creating any type of environment Users can be characterized across a number of different lines from incredibly skilled Java developers to everyday report developers from people familiar with Actuate to those who are not from power users to business users etc

There are two fundamental questions that these users need to answer

1 Is BIRT the right technology for the application theyrsquore creating

2 Whatrsquos the best way to deploy it through Open Source or through commercial deployment means

The answer to the second question is reliant on a number of variables In the following situations for example Open Source would be the ideal alternative

bull Those users who want to use BIRT for individual use

bull Those who want to embed it into their own project

bull An ISV who has the technology in their own application to support printing and baked-in reporting needs

Converting to or supporting a commercial model meanwhile occurs most frequently at the enterprise-server level for organizations deploying the environment to hundreds or thousands of users It supports a wide variety of types of users

But both the Open Source and commercial models employ a common report design format Itrsquos a progressive development experience or a collaborative report design and collaborative process allowing each user to participate in the definition and the evolution of their reporting environment while at the same time using tools that are appropriate for their skills a novice user isnrsquot being overwhelmed by too many features while the power user or the highly skilled users receive exactly the right kind of technology and level of development capabilities theyrsquore accustomed to

Yet some of the decision-making criteria lean more effectively towards a do-it-yourself situation using the Open Source type

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of model and some lean more appropriately to a commercial investment and a commercial tool A growing level of complexity often drives commercial interest but certain complex functionalities ndash including supporting web services or web services SQL or other examples of integration techniques ndash the Open Source model is more than capable of supporting on its own

The applications Actuate deploys are information applications When choosing the paths of how to proceed ndash with regards to choosing either the Open Source or commercial interest ndash there are typically four premises to consider in an information application

1 Is the report or the application able to consume and collect data from one or many sources whether itrsquos a single report or a complex application Typically when the data sources are simple and the data connections well understood either Open Source or commercial interests are appropriate With meta-data layers and extraction layers the commercial model tends to be more effective But if itrsquos an embedded project using POJOs or other Open Source or specialty connectors ndash unique connectors ndash that often keeps a project more suited for an Open Source deployment

2 How is it able to aggregate and transform that data into meaningful information Looking at aggregation the same premise holds true if therersquos simple aggregate functions or automatic cross tabs or even custom or reuseable business functions both the Open Source and commercial models are appropriate In terms of embedded Java functions those aggregations are appropriate in either case Itrsquos when entering into areas of security ndash of parameter-driven values dynamic-parameter collection cascading menus etc ndash that a commercial purchase tends to excel over the Open Source version

3 What are the presentation options or formats available to present that data When the presentationrsquos fairly simple both Open Source and commercial apply When

charting cross tabs and embedded graphics are the norm then the two are served both in Open Source or commercial interests When JavaScript is starting to be used as a customization or a dynamic-properties delivery vehicle both the Open Source and commercial models are effective although keeping this content embedded within an environment is probably more appropriate using Open Source Itrsquos only when introducing elements such as interactive viewing capability or the ability to manage an environment through a management console capability that the commercial option begins to edge out

4 Are we able to achieve the levels of scale that we need to get that information out to every user whorsquos interested in it When individual use is appropriate Open Source is a better fit When transient content is what a company is delivering thatrsquos usually a better fit with Open Source as well as is embedding To support a collaborative reporting effect or to support a variety of developers and users ndash especially users with different skills ndash the shift begins to move towards a commercial style of delivery When therersquos custom delivery required such as JavaScript API the commercial environment is also more appropriate

These are the capabilities of different deployment options for both the Open Source platform as well as the Actuate commercial platform geared towards allowing organizations to get the value that they most see fit within their environment or their application Typically for environments that have a heavy requirement for infrastructure thatrsquos what drives the commercial purchase whereas customization or individual interests typically drive Open Source

The key thing for any organization is to first decide what kind of reporting technology they need ndash whether it be Open Source or commercial ndash and then to look at their own needs And finally consider the BIRT environment as a vehicle that meets web reporting needs

For more information on BIRT visit actuatecom

A growing level of complexity often drives commercial interest but certain complex functionalities ndash including supporting web service or web service SQL or other examples of integration techniques ndash the Open Source model is more than capable of supporting on its own

ldquordquo

One of the benefits of Actuatersquos Business Intelligence Reporting Tools (BIRT) is that very capability for flexible functionality thatrsquos adjustable to usersrsquo needs Every component of the BIRT technology ndash whether in the Open Source or commercial versions ndash builds upon the components before it creating a robust and flexible system designed to meet each organizationrsquos unique Business Intelligence needs

Choose the Right Graphical ToolThe first step towards evolving organizational Business Intelligence is choosing the right graphical tool The Eclipse BIRT technology for one is a visual designer thatrsquos geared at report developers as well as JavaScript and Java developers and can create a wide range of reporting technologies and web reports BIRT builds content that is specifically intended for the web and uses techniques that are expected when building web pages and web content It doesnrsquot use a banded report writer design or development metaphor typical of many older report-authoring products including Crystal Reports or Jasper

BIRT is the third from-scratch product that Actuate has sponsored and developed and as such it takes into account more modern capabilities and techniques for developing web content In building BIRT Actuate has drawn from its extensive market knowledge borrowing best concepts from other products as well as from its own Reusability and the ability to include programmability within the environment have been traditional Actuate capabilities that have been included in BIRT but BIRT technology also uses de-facto standard programming capabilities such as embedding JavaScript and Java into the application rather than using a proprietary language

Open Source is the core reporting capability and value-added commercial products can be added to it More than 50 developers are employed by Actuate on the BIRT Open Source project similar to the number of developers Apache has applied to the Apache project Alongside these Open Source developers are Actuate developers working on the commercial product of BIRT

Open Source BI

Cost-Effectively Deploying

When deploying Open Source Business Intelligence technologies multi-layered functionality that can be added as needed serves to create a cost-effective way to build a solution specific to an organizationrsquos needs Each function acts as a building block as a company creates exactly the capabilities necessary for the job on hand without wasting money and resources on items that arenrsquot needed

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Another benefit of BIRT is the BIRT Exchange community Actuatersquos user forum which is far more robust and extensive with documentation and help information than has been found traditionally Nearly every forum post has an answer to it in some form which is not likely to be experienced with any other Open Source project or forum-based community Meanwhile the community itself is vast and growing rapidly Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate ndash where a developer may have downloaded 20 copies over its history ndash adds up to 350000 different users of BIRT technology That number is growing at roughly double the rate of the other two most popular Open Source projects

Add Value Through Features

Actuate BIRT technology has a range of features that will add value to a companyrsquos BI project

1 In addition to being a graphical report design tool BIRT takes into account the long-standing tradition of Actuate to support reuse libraries and reusability across the entire environment It is able to not only reuse BIRT objects and BIRT components ndash such as charts and tables ndash but also to incorporate and use JavaScript objects and Java libraries in the reports themselves This creates a rich experience for driving and building web-oriented reports

2 BIRT offers navigability While a user is in a graphical design tool they should be able to take advantage of some of the core capabilities that the technology offers such as a visual hyperlink builder that keeps information in context as well as the ability to create cross tabs dashboards and charting mechanisms that are active and navigable Inserting type of content ndash so that it is both consumable and scoped in context for the user ndash is important to the success of deployment Hyperlinking in context is one of the key elements to supporting Open Source deployments

3 The Eclipse BIRT environment supports a variety of graphical types or charting types including not only grids and tables but both static and dynamic images as well that can be linked back to databases or can support conditional formatting and a variety of conditions baked into the report BIRT is able to handle a large variety of chart types and styles allowing organizations to convey exactly what theyrsquore trying to deliver to their users Supporting rich charting is one of BIRTrsquos key core capabilities

4 The Open Source Eclipse engine can be embedded into or deployed from an application quickly within a JVM Users can add content generation or report generation functionality easily and quickly to their application by inserting it into their run time The BIRT engine itself is a key component in the Eclipse BIRT project It has a variety of extension points built into it which means itrsquos able to not only generate supported output types ndash such as HTML or Adobe PDF ndash but can also create custom emissions from a BIRT report such as an emitter for mobile content or an emitter for a particular report format of the userrsquos own perhaps to feed another application With a robust API structure within the Eclipse BIRT engine these are all possible

Build On Interactivity for a Richer Experience

Building onto that BIRT experience organizations can add more interactive and visual elements to create more appeal within their BI projects

Animated Flash Visuals Animated Flash visuals built into BIRT reports lend to a richer more enjoyable experience for end users They can take advantage of the navigation enhanced with the visual and animated appeal that Adobe Flash offers

The Actuate BIRT development tools include 266 Flash widgets This is one feature that differentiates BIRT Open Source with the BIRT commercial product Those who purchase the development tools from Actuate will immediately receive these Flash objects that can be deployed not only within Actuate BIRT reports but within Eclipse BIRT reports as well they are portable across both environments

Interactive Viewing Often users have a difficult time articulating their requirements to report authors That problem is alleviated when authors can deliver them an interactive viewing experience allowing the report to become changeable and adjustable by the user The user can select a particular column and can apply a filter to that column they can toggle back and forth between viewing perspectives rotate charts change the grouping of a report or add more visualization to it with something such as conditional formatting They could even navigate within the report using a joystick or deploy that report or portlet content anywhere they want And ultimately they could drag and drop and change ndash or add columns to the report directly ndash by manipulating the report as needed

This interactivity gives the end user the ability to enjoy more freedom with regards to how they use the report It also

addresses one of the biggest conundrums with regards to report delivery giving users a report provides them with content that makes them smarter and as they get smarter they take that information and they work it into their knowledge which in turn changes the questions that they ask of the report This means that what they need from a report changes over time Allowing users to modify reports themselves is a key goal in supporting BI processes because as users become smarter about what theyrsquore doing with their content they can help assist in defining what the next iterations of their web content might be

Choose the RIght Server to Store and Schedule Content

Actuate has spent the last 15 years developing the Actuate iServer It comes in two styles ndash iServer Enterprise and iServer Express ndash and offers a robust environment for creating managing and delivering BIRT report content to users on schedule on demand or on an ad-hoc basis directly

The iServer Express is a single-server deployment that is appropriate in scenarios where there is less active usage it supports a sequential batch generation capability and roughly 10 user connections per second as the users connect to the server It offers that scheduling and deployment capability at a very cost-effective price point while allowing organizations to secure their report content using the iServer repository to take advantage of some of the presentation layer capabilities that Actuate offers through its information console to present and manage that content on behalf of the users and ultimately to create a full reporting experience for users directly

Alternatively for those deploying a very large system ndash perhaps one that operates outside of the firewall in a traditional web information application ndash there is the iServer Enterprise The iServer Enterprise is massively scaleable but also very predictably scaleable as companies double the resources that they can apply to their environment they double the throughput and user numbers that theyrsquore able to support with the iServer It is also highly configurable in regards to how content is deployed and supports multi-tenet environments or multiple application environments In addition it can be componentized so that a presentation layer can be separated from a content creation layer or a business logic layer from a data management layer ndash including the meta-data layer itself ndash to help abstract and manage the queries driven

Determine Where Content Can Be Distributed

Actuate JavaScript API is a mechanism that allows the user to take a JavaScript library embed it into any HTML page and then from that JavaScript library securely access Actuate content from the iServer This particular capability allows the user to put either a report part ndash a reportlet ndash or an entire report directly into new locations This could be used as a user attraction vehicle it could be used as a dashboarding vehicle or it could be an integration point for systems that are written in NET rather than in the j2e environments that BIRT typically supports

Deliver Mash-Up Applications

Delivering mash-up applications using all of the functionalities listed above is simple in the BIRT technology and lets users themselves participate in the definition saving creation and management of their own dashboard displays and it allows them to watch exactly the KPIs that they care about

This is done through Actuatersquos Mashboard Customization to the Information Console which allows users to take any BIRT report content and to deploy it directly into a mash-up style environment where they can define exactly what pieces of content go into their application and what doesnrsquot These dashboards can also be roll-based so that particular pieces of content can be deployed to particular types of users directly then if they want to continue to customize that capability theyrsquore able to do so

Conclusion

Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques such as Flash and Ajax in a web-based design metaphor It is designed to evolve effectively over time and is meant to give organizations a choice for every type of user The first decision point of any organization is to recognize whether or not BIRT is the right reporting technology for the information application in question Once thatrsquos decided companies must choose the technologies they want to offer each type of user and then consider how they want to deploy those technologies directly

A wide variety of capabilities can be build into the BIRT environment ranging from Open Source to commercial Actuate products It is a flexible environment and is robust for delivering to users any type of information-driven web content

Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate adds up to 350000 different users of BIRT technology ldquo

rdquo Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques ldquo

rdquo

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The Challenge

Guiding a ship requires visibility into navigation operational performance and up-to-date information to make decisions This type of customer challenge drove ABS Nautical Systems

to incorporate Actuatersquos BIRT technology into its NS5 fleet management software

A leading software provider to the maritime industry ABS and its NS5 modular ERP system help customers manage principal operating expenses associated with vessels and offshore rigs ABS provided basic scheduled reporting and offered ad hoc reports in response to specific customer requests but customers demanded better functionality including the ability to easily extract and create both standard and custom reports

Producing reports to customersrsquo satisfaction took time as reporting was not central to ABS Nautical Systemsrsquo expertise Further it took valuable programmer time away from developing new features and functions for its core product This created the need for ABS to leverage a tool to provide highly-developed rich information application functionality increasing the power of its fleet management software while enabling its customers to access more flexible reporting tools

The Solution

With its own expertise in Java development and their existing reporting ABS searched for an Open Source reporting platformtool that they could leverage and seamlessly embed in their software ndash one that would deliver for ABS and their customers both immediately and for future expansion After considering Jaspersoft Actuate and Pentaho ABS selected Actuate and BIRT for their on-demand reporting solution

ldquoActuate has a clear roadmap and direction scalable platform financial stability and Open Source development platform The Actuate offering was an excellent fit because the technology

ABS Nautical Systems (NS) is one of the leading providers of fleet management software packages available to the

marine and offshore industries It offers a fully integrated modular approach to managing the principal operational expenses associated with a vessel or offshore rig ranging from maintenance and repair to regulatory requirements purchasing and inventory and crew management and payroll

SAFE AT SEAABS Nautical Systems A Case Study

ldquoBoth the technology roadmap and scaling are key It was an excellent fit for us actually ndash you had the right technology yoursquore Open Source based BIRT technology was key and you were the most helpful in helping us do the prototyperdquo

- Sandipan Bhattacharya ABS Nautical Systems

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used Open Source BIRT allowing us great flexibility in developing NS5 Actuate was most supportive in helping ABS NS do the prototype ndash both their Professional Services as well as the account teamrdquo states Sandipan Bhattacharya CTO for ABS NS

The new BIRT-based on-demand reporting tool within ABS NS5 is a web-based application that enables clients to quickly and easily generate custom reports from any NS5 module It handles reporting for the central elements of operational management ndash from regulatory requirements to payroll to planned maintenance programs But it takes NS5 beyond operational duties to consolidate data from across software modules to better monitor key performance indicators (KPIs) such as time to repair spare parts turnover and purchasing cycle times

The interactive information views that BIRT provides help fleet managers to achieve maximum efficiency empowering NS5 software users to get what they want in terms of the reports they need in the way they want them as each department or company may want to look at data in a different way Lastly that same data is more accurate because it comes as near real-time information at the time they need and can be benchmarked against how well they are performing to provide trends for evaluation

BenefitsResults

bull Speed time to market with new features by focusing on core competence in its software platform This allows ABS to focus development on its core product and improve customer satisfaction by rolling out and providing complete reporting modules This also helps decrease development expenses and support costs

bull Expand available market with completely new product lines enabling ABS to increase its client base to companies that didnrsquot know about them or had previously disregarded their offering The additional modules make the product more attractive to existing clients creating additional revenue sources for ABS

ldquoThe BIRT Open Source platform allows for a great deal of flexibility in the development stages Additionally the ease of integration into our OEM package was a great benefit Lastly the Actuate and BIRT offering has proved to be well suited to ABS Nautical Systemsrsquo needs and Actuatersquos roadmap shows what we can do in the futurerdquo states Bhattacharya

Self-serve customization drives flexibility and ease of creating reports BIRT empowers users to produce reports customized to their individual and departmental needs and preferences And as government reporting requirements change they can

Solution OverviewCompany Profile Integrated fleet management software for marine industries

Industry Software

Location Houston with offices worldwide

Challenges

bull Customer need for better more timely reports

bull Enable customers to self-serve for ad hoc needs and regulatory requirements

bull Focus on core software expertise and feature requests

Solution Integrate Actuatersquos Open Source-based BIRT reporting with ABSrsquo NS5 fleet management software

Business Benefits

bull Faster time to market broadened portfolio

bull Ease of integration development flexibility

bull Increased visibility into operations aids customer competitiveness efficiency

bull Users empowered to customize reports

Does your companyrsquos mission and vision statement place the customer at the center of your universe

Does it promise to maximize customer value and deliver the best customer experience possible If it does your mission and vision statement is surprisingly similar to nearly every other organization And much like them chances are your organization is struggling to make this vision a reality to actually reinvent itself as truly customer-centric

ldquoCustomer-centricrdquo has become the new buzz phrase thrown about at most executive planning sessions and has replaced ldquoinnovativerdquo as the new mandatory strategic language The truth is it takes a lot more to become customer-centric than changing the company vision ndash it requires a departure from years of tradition a clear look at who and what your organization is and a deeper understanding of what motivates your customers to buy from you or from your competitor Fortunately the cost to make this change is surprisingly low while the benefits and the returns can be shockingly high

Finding Your Customer

Customer-centric implies that the customer is central to the organization but this is too esoteric to have any real meaning An organization turns materials into a product or service which is then sold Everything the organization does must lead to this

event (with no sale after all therersquos no customer) This logic works for most people and most organizations and it logically follows that the focus should be upon the creation of the best possible product or service because this is what causes a prospect to become an actual customer

This logic fits nicely with traditional thinking It was popularized by Michael Porterrsquos value chain approach in the mid-80s The value chain is a string of critical processes that begins with raw materials or inputs and ends with a product or service delivered to a happy customer Thinking this way makes sense because it is easy to place the customer at the end of the process But this mind-set doesnrsquot just affect how executives structure the organization it weaves its way into every aspect of how the organization manages itself and how managers make decisions

For example the finance department performs the close process each month so that it can deliver financial information to managers with actual bottom-line responsibility These managers from executives to cost center managers are financersquos customers just as shareholders are when they deliver quarterly reports Once these reports are delivered finance goes back to the business of accounting and managing revenue and expense until the next month Engineers work to design new products that will keep them one step ahead of their competition Manufacturing produces goods to meet customer

respond more quickly adapting them by themselves instead of depending on ABS to supply reports

ldquoActuate empowers users to get exactly the reports they need the way they want them Empowerment is key as well as flexibility as each department or company may want to look at data in a different wayrdquo states Bhattacharya

Rich information drives efficiency through increased visibility and better insight into operations improving customer competitiveness With highly accurate real-time information on how well they are performing management can control both overall and specific costs of operating and maintaining their shipping fleets ldquoThey donrsquot have to wait hellip they can see all contributing factors day to day It helps improve efficiency at every level For the first time a shiprsquos captain can have insight into the operational performance of his ship while still at seardquo says Bhattacharya

Creating the Customer-Centric

OrganizationFinding Your Customer-Critical Path

By David F GiannettoCEO

The Telos Group

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orders or demand projections The sales department courts potential buyers so that they become actual customers Once they do so sales then returns to identify new targets and tries to transition them Manufacturing works to refill shelves Engineering continues developing products

Employees throughout the organization are focused upon delivering the product or service for which they are responsible The product attributes become the value proposition that will appeal to their customer regardless of whether or not this is an internal or external customer Employees are trained to think in terms of product development delivery and value The organization becomes even if it doesnrsquot know it product centric Believing that a mainstream management theory such as the value chain approach could not be wrong or outdated management is comfortable with this view of their world When they try to become customer-centric they do not know how

Making the Change

Consider for example the electricity powering the light by which you are reading this article It is a fairly simple product that was mainstreamed decades ago and except for new types of power generation it has remained essentially unchanged The traditional value chain for this industry is fairly straightforward Power is generated by a complex and often dangerous power plant and it is delivered to the customer via a complicated and often dangerous network The customer then consumes this power and must pay for it creating the

need for back-office operations such as accounting finance and customer service

Given the complexity of power generation and delivery operations the organization is staffed by a high percentage of engineers many with doctorate degrees and years of specialized training The generation and delivery assets themselves are maintained by highly-trained highly-specialized workers A large percentage of the management team also comes from this background and rose through the ranks of organizations identically structured Combined these employees represent over 75 percent of the organization

Collectively these employees create a culture that is consistent in almost every power utility in the world Their cultures respect academic achievement technical expertise and years of experience in the industry They typically believe in rigid structures inflexible procedures and consistency in design and execution They are truly product focused

Given the potential hazards it is easy to see why they behave the way they do But what happens when this type of organization has to compete in a more open market when transparency is increased or when the customer such as a municipality has a stronger voice or is under the growing influence of being green What happens when the power company must become truly customer-centric

It is nearly impossible for them to succeed Seventy-five percent of the organization has little to do with or has little understanding of the customer

Departing from Tradition

While this product focus is exaggerated within a power utility largely because of their technical nature these factors affect nearly every organization Employees who have great influence within the organization will not yield it to those who have less but who understand the customer better Funding is unlikely to shift from traditionally respected areas to those areas that most affect the customer

For a power utility this means that engineers who have often dedicated their entire lives to the study of their work must be considered equal to project managers and customer service agents most of who do not hold any degrees Money resources and staffing must focus on project management and call center technology not just on million- or billion-dollar assets There must be recognition that these areas equally affect the customer This new perspective must be executed by executives who have spent their entire careers adhering to the traditional values of the product-centric culture But this shift is what customer-centric really means truly understanding and meeting your customersrsquo needs It starts with the customer more specifically it starts with a prospect

Customer-Critical Path

This means that the traditional value chain must be rethought and renamed more appropriately to the customer-critical path A prospect travels this path on their journey to become a customer a customer travels this path toward the goal of becoming a happy customer This is the true value chain of the organization ndash a string of processes that become critical because they directly affect your customer regardless of the product service organizational chart academic degree or bias Find the customer-critical path and you can guide your customers through your organization in the way that is most meaningful to both them and you

But not all customer needs are the same even within an industry that has only one real product like a power utility The customer-critical path may start in several places meeting the needs of

several different types of customers ndash household customers that simply need power turned on or major projects that require significant project management and pre-planning Eventually these starting paths merge It will occur at the point at which all customers are happy From there they may take a different path

again some will terminate service or have new needs There is not one value chain there are many paths a customer might travel through your organization

This new approach offers significant value for organizations that adopt it It allows them to better understand their customers so that they can be more effectively segmented and targeted by products or services This drives the bottom line in several ways A stronger value proposition increases appeal thus driving revenue Better service and customer interaction improve the customer experience and increase customer loyalty driving customer lifetime value

The customer-critical path also becomes a vital decision-making tool for management It provides a clear and unbiased perspective on where resources should and should not be spent It defines the relative worth of projects assets and expenditures painting a clear picture of what the results will be if the customer-critical path is not

properly maintained

And if your mission and vision statement says you are customer-centric it makes your strategic plan more than simple semantics It makes it actionable setting your organization on a path towards true differentiation and market leadership Properly crafted the customer-critical path becomes a pleasant stroll through the park for your customers and it can also become the most profitable path for your organization

David F Giannetto is CEO of The Telos Group co-author of The Performance Power Grid The Proven Method to Create and Sustain Superior

Organizational Performance (J Wiley amp Sons 2006) and a professor in the Executive MBA program of Rutgers University

Mr Giannetto can be reached by email at dgiannettotelosconsultingcom

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I Introduction and Background

Who the NMDP is

The National Marrow Donor Programreg (NMDP) and Be The Match FoundationSM are non-profit organizations dedicated to creating an opportunity for all patients to receive the bone marrow or umbilical cord blood transplant they need when they need it Every year thousands of people of

all ages are diagnosed with leukemia and other life-threatening diseases Many of them will die unless they get a bone marrow or cord blood transplant from a matching donor Seventy percent of people do not have a matching donor in their family and depend on the Be The Match RegistrySM to find a match to save their life

The Beginning

When their 10-year-old daughter Laura was diagnosed with leukemia Robert Graves DVM and his wife Sherry were ready to do anything they could to save her They agreed to try a bone marrow transplant from an unrelated donor ndash the first ever for a leukemia patient Laura received her transplant in 1979 at the Fred Hutchinson Cancer Research Center The treatment gave her an extra year and a half of life

The National Bone Marrow

Donor Program

The Balanced ScorecardVision into

Action JourneyBy Howard Rohm

President amp CEO Balanced Scorecard Institute under the guidance of The National Marrow Donation

Programrsquos Michael Boo Chief Strategy Officerand John Rudrud Senior Analyst

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The experience inspired Dr Graves to create a national registry of volunteers willing to donate marrow His early efforts brought together other patient families and transplant doctors spurring a federal mandate that led to the creation of the National Marrow Donor Program NMDP began connecting patients with unrelated donors in 1987 with a registry of just 10000 volunteers

What the NMDP Does

The Be The Match Registry has grown to more than seven million donors and over 150000 cord blood units the largest and most racially and ethnically diverse registry of its kind in the world Medical advances are making marrow and umbilical cord blood transplants available to more patients all the time Since 1987 NMDP has arranged for more than 35000 transplants to give patients a second chance at life Today NMDP facilitates more than 4300 transplants a year

Planning for the Future

Many more patients still need help In order to meet the needs of all patients NMDP will need to facilitate 10000 transplants per year by 2015 That is more than double the number of transplants the organization facilitates today NMDP is working to meet this need but canrsquot do it alone Efforts are sustained by

bull A global network of more than 490 leading hospitals blood centers cord blood banks and laboratories

bull Agreements with donor centers cooperative donor registries and cord blood banks worldwide through which the program provides patients access to more than 12 million donors and 300000 cord blood units

bull Continued support from the US government which has entrusted the NMDP to operate the CW Bill Young Cell Transplantation Program the federal program supporting bone marrow and cord blood donation and transplantation

bull Partnerships with corporations service organizations student groups faith-based communities and other organizations

A new and different way of thinking about the NMDPrsquos long-term strategy was required in order to make sure that NMDP would be capable of delivering 10000 transplants per year in 2015 ldquoBusiness as usualrdquo would not get the organization where it needed to be NMDP needed to identify and

aggressively improve in strategic areas critical to the delivery of 10000 transplants

II The Balanced Scorecard Approach

Background

The strategic planning system that had been used at NMDP up to 2007 was a fairly well-developed planning process that tracked initiative performance under seven primary areas of strategic focus While this approach provided a measure of strategic planning for the organization it was too focused on activities and projects rather than on impacts

Early in 2007 NMDP leaders Gordon Bryan Chief Financial Officer and Michael Boo Chief Strategy Officer began developing strategic metrics designed to identify measure and communicate progress in strategic plan objective areas

Selection

As the senior management team evaluated options to integrate broader strategic metrics with the existing strategic business plan the Balanced Scorecard approach emerged as a leading candidate during the initial assessment of planning models because it

bullEncourages development of strategic themes and provides the ability to focus on areas where long-term continuous improvement is needed

bullPermits identification of cause-and-effect relationships between Strategic Objectives within each Theme

bull Facilitates communication of Strategic Objectives that can be portrayed on a strategy map that is easily understood by all employees and stakeholders and shows how the perspectives work together to achieve the mission

bull Assures that the organization focuses on Strategic Objectives and Measures from a CustomerStakeholder perspective and a PeopleKnowledgeTechnology perspective (Historically the organizationrsquos focus was skewed toward the Process and Financial perspectives)

bull Enables leadership to track Strategic Objective performance over the long term rather than tracking the status of supporting projects and initiatives

bull Creates a framework for prioritization of projects initiatives and funding opportunities based on contribution to and support of the Strategic Objectives

bull Allows organizational Strategic Objectives to be cascaded into Department Objectives thereby giving each employee

a more specific understanding of how his or her work impacts and contributes to the Strategic Objectives

bull Drives long-term continuous improvement as Strategic Measures improve over time

bull Facilitates a ldquolearning organizationrdquo where corrective actions are implemented in cases where Strategic or Department Objective Measures are not being met

The NMDP planning team looked at a number of planning models ndash including Balanced Scorecard Six Sigma Lean and TQM ndash and concluded that the Balanced Scorecard approach provided the most versatile and relevant framework for future growth and organizational development

III Scorecard Development ndash NMDP Officer Input

Early to mid 2007 NMDP began the Balanced Scorecard development effort with the help of consultants from the Balanced Scorecard Institute

A comprehensive review of the organizationrsquos strengths weaknesses opportunities and threats organizational pains organization enablers vision and mission was conducted over several days with NMDP officers and senior management These sessions produced a new Mission and Vision Statement and four Strategic Themes (rather than the original seven)

The former mission statement Extend and improve life through innovative cellular transplant therapies was changed to We save lives through cellular transplantation ndash science service and support

ldquoThis new mission statement captures and communicates more directly why we exist and it clearly articulates the three ways that we are able to save livesrdquo explained NMDP CEO Dr Jeffrey Chell

The Overarching Strategic Result in place of a vision statement was developed and shared with employees throughout the organization Meeting the need for 10000 transplants per year by 2015 The senior management team developed a longer more descriptive version of this statement but felt that the shorter version had more impact

ldquoWersquove found that the Overarching Strategic Result has been a great tool to get people thinking about how we will manage

to do more than double our current transplant volumes in a relatively short time ndash just five years from nowrdquo explained initiative sponsor Michael Boo ldquoThis has driven a lot of creative thinking around how to dramatically improve the efficiencies and cost effectiveness of many internal systems and delivery processesrdquo

The four Strategic themes that the NMDP officer group developed and agreed upon are

bull Global Access and Acceptance ndash Getting to Yes Overcome non-cell source barriers to transplant (eg no insurance no transportation no post-transplant support)

bull Deliver Excellent Stakeholder Experience Overcome Cell Source Barriers (making sure a cell source donation is available when itrsquos needed ndash adult or cord)

bull Research Pursue research to improve cell transplantation as a therapy

bull Culture of Excellence Keep up-to-date with talent structure and resources needed to continually improve transplant services

IV Scorecard Development ndash Senior Management

Throughout the spring and summer of 2007 four Theme Teams comprised of senior management met to develop

Theme Team strategy maps that included Theme Objectives by Perspective and proposed Measures for each Theme Objective These served as detailed roadmaps with specific objective areas identified ndash where NMDP needed to focus in order to improve them

The four Theme Team maps were subsequently

combined into an NMDP Strategy Map that included all relevant components from each theme This NMDP Strategy Map is comprised of 13 Strategic Objectives 46 Strategic Measures and seven Strategic Initiatives

Narratives were captured regarding the intent and ultimate end state for each Strategic Objective and detailed descriptions were created for measurement information including rational frequency owner and unit of measure

At this stage in the process the team named the Balanced Scorecard tool ldquoVision into Actionrdquo or ViA ndash NMDPrsquos strategic Performance Management tool On June 1 2007 the ViA Themes and NMDP Strategy Map details were presented to the board of directors by senior management and approved along with a plan to proceed to the next phase of department cascading

A ViA Communications Team was formed to communicate ViA progress to employees on the development of the new Mission Statement Vision Statement and the 13 Strategic Objectives This was done through a combination of pulse checks newsletters

38

Perform M

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39

Vol 6 Issue 2 2009

intranet messaging e-mails from the CEO leadership training all-staff meetings and promotional contests This was an extremely integral step in the ViA roll-out that provided transparency and generated excitement around the benefits of ViA

V ViA Department Cascading

All departments at the NMDP were scheduled for sessions to develop their department Objectives Measures and Initiatives These were facilitated by internal subject matter experts and included an initial two-day exercise to help the department identify where and how each department contributed to the NMDP Strategic Objectives Worksheets and other preparation material were provided to each participant and collected prior to the cascade session The pre-work information was used to expedite the affinity exercises at each session

These were followed up with sessions to finalize detailed measures with individual measure owners Department teams were comprised of five to 10 key members of each department

The department cascading efforts provided a number of primary benefits to the organization including

bull The articulation in easy-to-understand terms of how each department contributes to the overall success of the Strategic Objectives and ultimately the NMDP Mission

bull A tool to identify gaps or overlaps between departments that can also be a tool for departments to communicate with each other in terms of supporting initiatives

bull A tool for each department to prioritize initiatives and activities Also it provided a mechanism to support requests for funding new opportunities

bull A clear framework for corrective action where measures are not being successfully met

bull A common format and mechanism for reporting department performance to officers and senior management

bull A common format and mechanism for reporting and reviewing department performance with staff

bull Help with the development of individual job performance appraisal content ndash which should be designed to support Department Objectives

Department Cascading was complete in early 2009 There are over 200 separate department measures that are tracked each quarter

VI NMDP ViA Today

NMDP has established a department Champions Council Members of the Council are becoming experts at using the automated ViA software Today this is being used at department staff meetings to facilitate discussion around corrective action for underperforming or unacceptable Department Measures Departments use the department Strategy Maps to guide staff meeting discussions on performance measures and corrective action plans

ldquoAll business cases or requests for funding must be submitted with clear tangible descriptions of how the effort will impact ViA Strategic Objectivesrdquo explained Boo ldquoOnce all business cases have been submitted to the officer group for final approval they are prioritized in order of their impact on ViA Strategic Objectivesrdquo

All strategic and department measures are required to be reported into the ViA system each quarter Each is color coded based on an officer-approved target matrix Each measure owner is required to provide comments regarding the measure performance for the quarter and discuss how he or she expects the measure to end the fiscal year This information is shared with senior management for review and follow-up with measure owners ifwhen necessary

Senior management uses the color-coded NMDP Strategic Map as a basis for discussing quarterly performance and identifying

Strategic Objective areas that may need attention corrective action andor more resources NMDP tries to focus not only on corrective action items but also highlight success stories where outstanding performance has been reported

All employees will soon have access to the web-based ViA application to provide as much transparency and visibility as possible in order to become a truly strategy-focused organization

ldquoVision into Action has been successful within the organization to a great extent because of the consistent support and guidance provided by NMDP leadership including our CEO Dr Jeffrey Chell my fellow Officers and the Board of Directorsrdquo said Boo

Howard Rohm President and CEO of the Balanced Scorecard Institute is a Performance Management trainer consultant and technologist with over 40 years experience Mr Rohm has helped dozens of organizations worldwide build Balanced Scorecard and other performance planning and management systems

48

Pe

rform

Mag

azine

Info

rmatio

n in

Actio

n

A community for BIRT users and developers sponsored by Actuate

A Report Writing Portal lets your end users browse reports modify them and even develop

new ones You can set one up in three steps when you use AJAX-based BIRT technology

Because the end user tools to modify and create reports are AJAX-based therersquos no desktop

software to install Users get the reports they need quicker while the burden on development

resources to create new reports is reduced

BIRT Exchange is a community site that offers the broadest collection of resources for the Eclipse BIRT (Business Intelligence

and Reporting Tools) project and for integrating spreadsheets with Java The site is sponsored by Actuate a co-leader of the BIRT project

Sponsored by

See a Demo

at Booth

602

For More Information

Contact us by phone at 1-800-884-8665

1-913-851-5300 from outside of the United States

wwwbirt-exchangecom wwwactuatecom

40

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41

Vol 6 Issue 2 2009

JCIrsquos previous approach of one-off negotiating as well as its spirit of continuous improvement and customer focus meant that it had only one-off measures in every location The company for example had 127 variations of the measure lsquomaintenance managementrsquo Many were very similar but since they were not exactly the same they could not be compared effectively Inefficiency at gathering and maintaining data at different locations across the globe made the task difficult as well Data was collected any way possible thrown into a cell or a Power Point slide and handed in at the end of the month It was highly inefficient extremely customized at every location and did not allow any ability to benchmark compare or look at best practices These concerns and requirements drove JCI on its scorecarding journey

The Solution

In initiating its scorecarding solution JCI first had to establish the right measures Business leaders were chosen for all of the scorecard categories and for each of them a business owner was selected for each region these business leaders and owners were responsible for defining the standards and measures Data collection systems in some cases proved difficult there wasnrsquot always centralized information available ndash in some cases data needed to be gathered right down at the account level This meant that the process of data collection and identifying measures was a significant job To get started though JCIrsquos web programmers were able to put up some scorecards quickly to allow the company to start architecting measures this allowed business leaders across the globe to start identifying their measures and to put the processes in place regionally to collect information

Before committing to a technology JCI wanted to know 100 percent of their business requirements and this was the point of their web-based scorecard To assist in this endeavor Actuate ndash prior to selection ndash let the company test drive their product The JCI team went through and looked at every single screen determining where they had to configure the tool and for every single screen they also made what they called a lsquoblueprintrsquo creating an Excel template with fields to correspond with every field on each screen It was incredibly detailed work but they wanted to ensure no mistakes were made and that the business requirements were defined To accomplish this there was an extreme amount of detailed coordination globally with twice-weekly meetings for the worldwide team in charge of the initiative A byproduct of the process was that the team learned to use the Actuate BIRT Performance Scorecard and basically built all of the blueprints for the project design

JCIrsquos audience for the project upon kick off were the 300 external customers that would have access to this information Customers previous to this were getting their information via Excel and PowerPoint In addition to these external customers was the population of approximately 1000 internal users within JCI itself These included account leaders and functional leaders including those from HR Finance Safety etc

Three primary functions of the project were

1 To replace the PowerPoint slides used in global and regional monthly internal operational reviews

2 To very quickly be able to become best in class JCI wanted everyone who had an account to be able to see where they sat compared to their peers This provided individuals ndash when faced with a problem ndash the ability to quickly identify and contact others who had solved the same issue

3 To standardize customer faith in contractually required performance measures This was a key goal of the company which felt that if they were going to benchmark and compare they needed to bring in the best practices learned at one location to their work at other locations

These three primary functions were heavily loaded in JCIrsquos rating system as the company set out to choose the right software for their scorecarding project It was also important that the software be intuitive as there was no time for hundreds of hours of global-wide training The software had to be rapid and easily configurable with limited IT assistance As JCI is a very large organization with a lot of systems in place the team in charge also wanted the software to be easily adjustable to the companyrsquos rapidly changing business they didnrsquot want to have to get into queue for IT every time a change had to be introduced or a new customer added

JCI Chooses ActuateFour vendors were evaluated for JCIrsquos scorecarding project with a global team in place to provide a systematic discussion of the defined business process and requirements The product chosen was the BIRT Performance Scorecard JCI had 30 days of Actuate Professional Services and planned for monthly micro improvements and quarterly macro improvements

Upon purchasing the BIRT Scorecard in January 2007 using the blueprints theyrsquod established already the company wrote their business processes They were able to go live in 90 days helped by the homework they did with the blueprints the web scorecard and the data collection processes It was an incredibly smooth implementation overall

The Results

Whereas JCI originally started out with a model of one-off negotiations with customer measures the scorecarding project has led to approximately 70 percent agreement on JCI standard metrics The company does a customer satisfaction survey both annually and quarterly and aims to demonstrate evidence towards continual improvement

Since implementation of the project the company has also been solving its data integrity issues Previously two regions might have been using the same words but not the same data collection methods ndash this made it impossible to introduce benchmarking and comparison between areas Now those problems are being solved and benchmarking and comparison are possible to the benefit of both JCI as it strives for best-in-class status and its customers

By David F GiannettoCEOThe Telos Group

Johnson Controls Incorporated (JCI) is a $38 billion company with a total of 140000 employees working out of more than 1300 locations in 125 countries worldwide Headquartered in Milwaukee Wisconsin the company provides a range of services including

real-estate portfolio management property management facility management and design and construction services

To initiate its scorecarding project JCI began by creating five categories of measurement Business Performance (this includes all financial measures) Service Delivery Customer Satisfaction Safety and People While the other four categories may be typical to most organizations the Service Delivery category was designed to take JCIrsquos measurements down to the client-site level which includes over 300 locations globally where the company has contracts In some cases there might be one staff member assigned to manage a single building while other times a staff member has a whole portfolio they maintain Measuring performance at all of these locations and levels proved a complex undertaking

Strategic Initiatives

Like all service providers JCI has to demonstrate that they add value Scorecarding allows them to do this both internally

and externally using data-driven results Since JCI has always been very much a data-driven organization anyway with a manufacturing background this was a natural fit for the corporation

JCIrsquos organization-wide motto is to be as good everywhere as they are somewhere Theyrsquove found that in any one account they may excel in several areas but perhaps not in all areas elsewhere though on another account someone else might have the skills needed to fill in those gaps The companyrsquos goal was to share information and communicate it between different locations across the globe allowing the company as a whole to get better faster and to benefit from the skills and strengths of its individual members Scorecarding was introduced as a way to help share this information and to introduce benchmarking within the company

The Requirements

To get started on their scorecarding initiative JCI examined each of their US contracts What they found was that there were no standards between clients and therefore no ability to benchmark Customers though wanted the ability to find out how they stood in relation to other customers This was impossible under the circumstances

Global Operational Excellence and a Performance Scorecard System A Case Study of

Johnson Controls Incorporated

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43

Vol 6 Issue 2 2009

Out of Touch With Crucial Data

Previously when Helzbergrsquos divisional and regional vice presidents went on the road access to their key performance metrics was restricted Without a laptop and a WiFi or hotel network connection to the internet they were ldquoflying blindrdquo according to Greg Backhus Helzbergrsquos Director of Data Warehouse and Decision Support Systems As a result they did a lot of faxing it was the only way they could get the current data that they needed in order to

About Webalo

Webalo technology transforms enterprise applications and data to make them compatible with mobile

devices This eliminates the need for traditional custom programming reducing the deployment of mobile applications from weeks or months to in most cases less than a day The resulting ldquoanywhere anytime on-demandrdquo availability of enterprise data on handheld devices turns such devices into viable alternatives to desktop laptop and palmtop computer hardware and lets mobile employees work more productively ndash on the spot ndash to solve problems answer questions monitor operations close sales and make informed decisions

The Webalo Mobile Dashboard Service ndash available in both internet-based and enterprise intranet-based implementations ndash lets non-IT business administrators securely specify the content of mobile-accessible information and the companion Webalo Proxy Server configures it in seconds to conform to the native user interface of any BlackBerry Windows Mobile Pocket PC Palm Symbian or Java-enabled smartphone

CLARITY CUT AND CARATSHow Helzberg Diamonds Made Sales Data Clearer Eliminated

Delays and Lightened the Load for its Divisional Executives

A diamond may be forever but a lot has changed in how theyrsquove been marketed and sold during Helzberg Diamondsrsquo nine decades in business A single store has expanded to nearly 300 locations from coast to coast and border to border Sales can also be made online now And information about every sale can be accessed in an instance through the companyrsquos enterprise systems

bull Compare actual sales to their goals and plans

bull Determine transaction counts for total dollar volume and average sales value

bull Break down sales by product category

bull Monitor attachment rates for products and services related to the main product sale

For example onsite at individual stores it was difficult to gauge how an active price-reduction sale was affecting unit and dollar

volumes unless there happened to be a coffee shop next door with a WiFi connection that would let Helzbergrsquos executives access the enterprise system

The Three Cs of Information Access

The three Cs of diamond grading ndash clarity cut and carats (or weight) ndash turned out to be applicable to data access as well But it took a transition to handheld devices and to the Webalo Mobile Dashboard to achieve it

Though laptop computers had gotten lighter and lighter over the years they were still considerably heavier than the Pocket PC-based smartphones that Helzbergrsquos executives used Since they were carrying those handhelds in addition to their laptops the VPs were open to the idea of being able to

bull Access sales metrics on their handhelds

bull Have data available on-demand from any location with a wireless signal

bull Navigate quickly to the figures they needed

bull Get updates to their metrics automatically

bull Review the information offline

It was the only time that carrying less weight ndash or carats ndash added more value Using a simple step-by-step wizard Helzbergrsquos support staff was able to configure their enterprise reports in a matter of hours They then assigned access privileges to each executive to control who could see what information and uploaded the file to the Webalo server That satisfied how data was ldquocutrdquo

For each mobile user regardless of the brand and model of smartphone they used the Webalo Mobile Dashboard conformed the information to the devicesrsquo user interface The application worked and looked exactly like any other application developed specifically for their mobile devices the on-screen text was easy to read and navigation used the same menu structure That meant there was no learning curve to delay user acceptance and productivity Clarity was essential and the Mobile Dashboard delivered it right down to the ability to bookmark commonly-referred-to displays for instant reference enhancing on-the-spot productivity even more

Speed and Simplicity

Productivity was also improved on the IT side Without the need for custom programming to conform the information to each smartphone brand and model deployment was reduced from months to hours

Since adopting the Webalo Mobile Dashboard Backhus says ldquoThe Divisional VPs find it invaluable They get more done because they donrsquot have the delays they used to haverdquo Decisions that used to have to wait for current data are now made right away relying on the right data presented in the right format

44

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Vol 6 Issue 2 2009

Sustainable practice has graduated from being market hype

to becoming a strategic initiative important for driving a successful enterprise It not only reduces a companyrsquos impact on the environment but can help organizations achieve a competitive advantage to build their brand impact top and bottom line and improve customer acquisition satisfaction and retention

Creating a road map towards sustainable management can require an entire shift in corporate thinking one that involves searching for buy-in at all levels establishing useful metrics and introducing practices that get beyond the green hype The end result though is not just a greener organization but also one with a more prosperous future

Why Sustainability

In August 2008 a survey undertaken by CIO Insight examined green practices in business focusing on the reasons why CIOs introduce sustainability efforts into their organizations The number one reason why organizations went green the study found was that the people within those companies sincerely had a concern for the environment A total of 74 percent of respondents answered that way 32 percent of which listed it as their most influential driver

Other influential drivers named in the survey included

Financial Drivers Companies found sustainability to be a way of cutting costs If they could cut energy costs not only would that help the environment but it would also help create cost savings The second most popular answer in the CIO Insight study financial impacts are key to implementing sustainability in most organizations Examples of financial impacts possible from sustainability were presented at CFO

2 The CFO Green

Conference which took place in May 2008

bull Dupont reduced its CO2 emissions by 70 percent saving the company $3 billion

bull FedEx redesigned its delivery trucks making them more aerodynamic This reduced the amount of particulate pollutants nitrogen and carbon the trucks put into the atmosphere and it also reduced the companyrsquos fuel costs exceptionally

Customer Image In the CIO Insight survey the third motive listed by CIOs for introducing sustainability ndash at 64 percent ndash was company image Consumers are becoming more and more aware of whether companies or organizations are living up to sustainability ideals They will notice if a company image or brand value reflects this concern for the environment Meaningful sustainability efforts can help gain customer approval as in the following case

bull Wal-Mart and Procter amp Gamble together agreed to sell liquid laundry detergent only in concentrated form This saved shelf space for Wal-Mart reduced water use by 400 million gallons for Procter amp Gamble and eliminated 45 million pounds of plastic waste

Regulatory Requirements The surveyrsquos fourth most popular reply ndash at only 25 percent ndash were current or potential regulations including the cap and trade systems being implemented which will require companies to buy carbon and sell carbon credits

Shareholder Pressure Finally at fifth in the CIO Insight survey ndash with 14 percent of responses ndash was shareholder or public pressure pressure building from shareholders to put forth sustainability efforts Pressure at this level is often mixed though as shareholders are also likely to express a desire that they donrsquot want shares to decline in value The general message may be that it is fine to introduce sustainability measures only as long as there is no risk that they will hurt the company

A Road Map Towards Sustainability

Step 1 Identify What Drives Your Organization

The first step in the road map towards sustainability is identifying key drivers Some drivers vary from one organization to another while others seem to drive any organization regardless of the industry Drivers incude

Internal drivers

bull Cost cuttings and savings

bull Employees including both the satisfaction of current employees as well as the recruitment and retention of future employees

bull Investment

External Drivers

bull Stakeholders including both those within the company ndash the employees discussed above ndash as well as stakeholders outside of the company

bull Brand awareness because consumers are becoming increasingly aware of the choices that are available to them and are making choices based on a companyrsquos green initiatives

Future drivers

bull Tax incentives

bull The recruitment and retention of future customers

Step 2 Select Your Metrics

In general terms sustainability metrics will fall into one of four major categories those that affect the climate those that affect the oceans those that affect human health and those that affect common issues like the land the water the wildlife etc

Within those large categories are smaller areas of interest that companies must examine to introduce organization-wide sustainability management carbon monoxide use energy consumption water consumption and fuel consumption are prime examples

Carbon Monoxide Use Many of the questions companies are asking themselves in regards to carbon monoxide use include

A Road Map of Key

Sustainability Metrics

That Impact Bottom

Line

46

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47

Vol 6 Issue 2 2009

bull How much carbon monoxide do we produce

bull Which processes in our overall manufacturing or delivery use produce the most emissions

bull Can we determine the indirect emissions For example leave a computer plugged in and itrsquos still on the grid creating an indirect carbon dioxide emitter How can we measure that

bull Whatrsquos our cost Do we have metrics that tell us what our CO2 emissions cost us

bull Can we predict into the future If we continue on this path without doing anything where will we be next month Next quarter Next year

Some examples of metrics related to carbon monoxide use include carbon dioxide emissions per employee (similar to revenue per employee) carbon footprint metrics and transportation distances

Energy Consumption Areas of interest related to corporate energy consumption may include the following

bull How much do we consume From what sources

bull Are we on the grid Are we using solar power or wind power or another alternative power

bull How much is used by our data center How do we make the data center greener

bull Where can we reduce consumption

Companies today are reducing energy consumption in a variety of ways by introducing energy audits and looking at energy-saving appliances and also through energy incentive programs for employees within which companies can incentivize and introduce bonus plans

Water Consumption An examination of a companyrsquos water consumption may include some of the following queries

bull How much water do we currently use and where

bull Where in our processes do we use the most water

bull Can we predict how much wersquore going to use in the future

Some of the examples of metrics that companies introduce in terms of water consumption include improved water quality how much impact low-flow or low-volume toilets have on water consumption and how much water is or can be recycled

Fuel Consumption Questions to consider in relation to fuel consumption include

bull How much fuel do we use

bull Where are the inefficiencies

bull Whatrsquos being predicted for fuel usage in the future

bull Can we analyze our logistics so that we can determine how to reduce our fuel consumption For example where are our trucks traveling How are they traveling What kinds of loads are they carrying

Step 3 Recognize Challenges

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly As such easier ways to enhance communication and to increase visibility need to be introduced both inside and outside of an organization

There are also constantly evolving requirements measures and standards of success With everything so new companies are challenged to find ways to compare their sustainability efforts with other organizations The biggest challenge in implementing these processes or attracting metrics may be that they require an entire shift in thinking Additional challenges that exist in the implementation of a sustainability model include

1 Financial concerns Companies must truly see potential for returns on investment or these initiatives can become non-starters or stall

2 Lack of regulatory motivation While not as common as it once was certain organizations arenrsquot motivated to introduce sustainability until government regulations are in place

3 Lack of a formal strategy for sustainability Without a formal strategy it is difficult for companies to determine where they need to go

4 Determining appropriate metrics Companies must choose metrics that are useful demonstrate impact and say something about their own corporate environment

5 Calculating metrics Standard algorithms and calculations exist to calculate metrics but companies must find the appropriate ones and use them

6 Finding quality data to plug into those calculations As in any Business Intelligence project if the quality of the data is questionable then so are the sustainability metrics themselves

7 Determining the scope of the sustainability project The scope is critical Narrow it down to something achievable feasible and useful

Step 4 Learn from Best Practices

What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde

bull Assign an executive champion Without an executive champion to drive the project initiatives are more likely to lack a holistic view and a clear vision for an implementation strategy they may take longer to implement and theyrsquore less likely to yield the required results To provide motivation consider linking the championrsquos salary directly to sustainability savings or to the increased revenues that result from sustainability efforts

bull Implement internal training and education Educate employees on what to expect and what is expected from them

bull Improve communication Communicate both to employees and to stakeholders outside of the organization

bull Start to think about alternative energy management and control strategies

bull Engage the use of technology and services For companies not sure where to begin a sustainability consultant can assist with program selection as can vendors such as Actuate which has a sustainability management solution in place

Step 5 Get Started

Understand that sustainability development is a business opportunity Donrsquot look at it solely as environmental although that is also important Itrsquos an opportunity for companies to introduce more cost-effective processes and procedures and to become more cost effective in their vehicle fleet manufacturing delivery etc

bull Create globally consistent metrics and goals Large agencies have to make sure that the entire group is on board and that they have consistent metrics and consistent goals across the enterprise

bull Find the value and drive the action What is the value of monitoring these sustainability areas and whatrsquos the course of action if you see that theyrsquore going off kilter or are not tracking as expected

bull Start small Initiatives such as these can become incredibly complex very quickly Start small and build in the complexity with each ensuing project

bull Get buy in People need to understand what the metrics are why theyrsquore there and what they mean to each individualrsquos situation (as reflected in individual bonus plans perhaps) Measure using industry-accepted methodologies and industry-accepted protocols continually improve metrics through optimization and forecasting and constantly optimize metrics and forecast into the future

bull As much as possible accurately report to everybody environmental performance Let employees shareholders customers and regulators know If data is questionable fix it get quality processes in place and then run the metrics

bull Determine environmental impact Has waste been reduced Has resource utilization been reduced Has the company improved environmental factors

Also consider using an Open Source vendor The Open Source community is beginning to develop sustainability metrics and Open Source reduces the costs of developing metrics while software costs for the project are reduced as well

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly ldquo

rdquo What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde ldquo

rdquo

48

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Vol 6 Issue 2 2009

Step 6 Move from Green Hype to Sustainable Action

A successful sustainability initiative involves identifying metrics that will translate into cost savings and benefits while avoiding metrics that are not likely to yield required results To accomplish this start small start with a small department within the organization and then repeat this continuing to repeat it throughout the enterprise

bull Start with basic conservation Change behavior reduce consumption and in the process increase investment

bull Start reusing Improve productivity improve efficiency and create less waste

bull When this translates into cost savings re-invest Grow make larger improvements and increase involvement

Projects that make good starting points

bull Measure carbon dioxide emissions throughout a value chain or product lifespan Look for potential improvements

bull Ensure regulatory compliance By knowing what the regulations are companies can determine what metrics need to be in place

bull Identify ways to promote and profit from more environmentally-respectful goods and services Companies can promote environmentally-respectful goods and services while also using sustainability to help the company

Monitor the effects of each project to determine which strategies have the most impact both physically in terms of

the environment and financially in terms of revenues and cost savings Publicize how metrics are tracking over time

Actuate for Sustainability Management

Actuate for Sustainability Management is a solution by Actuate that integrates highly interactive visually rich dashboards There are pre-built sustainability scorecards strategy maps and over 100 pre-built metrics across the economic social and environmental aspects of sustainability

The Actuate BIRT Performance Scorecard supports the metrics defined including

bull Reducing an organizationrsquos environmental footprint

bull Building green facilities and buildings

bull Compliance and reporting

bull Manufacturing

bull Community and engagement

bull Human development including employee well-being and satisfaction

Actuate for Sustainability Management provides collaboration across regulators consumers and non-governmental organizations Dashboards and scorecards come integrated with reporting so as to improve reporting to stakeholders both outside and inside of an organization All of the products are built on Actuatersquos dependable cost-effective and scaleable platform

Performance Management solutions help organizations understand act on and influence business decisions processes and measures of business success The 2009 Actuate Performance Management Excellence Awards will honor customer success stories in four key areas Over the next several issues Perform Magazine will highlight some of the entries in these categories

Category 1 Go Green

Each year the concept of environmental responsibility has implications for both the private and public sector specifically with regards to how each measures the performance of their operations For organizations using the Actuate BIRT Performance Scorecard to measure the progress of organizational Green initiatives how have they responded to the challenge and how do they use the BIRT Performance Scorecard to ensure they stay on track

Category 2 The Perfect Slice

Successful Performance Management comes in all sizes Some initiatives are enterprise-wide while others are focused around specific business units or functions yet still encompass a holistic approach to Performance Management by looking beyond financial indicators to a more balanced set of indicators This category includes organizations deploying the Actuate BIRT Performance Scorecard with a focus on improving the performance of individual business units or functions and includes the measurement of people and processes

Category 3 Big Bang

Carefully executed Performance Management initiatives begin with a measured approach to the initial implementation and quickly expand to other parts of the organization aligning business units to strategy at each step This category is open to Actuate customers who initially implemented the Actuate BIRT Performance Scorecard to a limited user community and through careful change management and planning expanded the use of the BIRT Performance Scorecard throughout the organization

Category 4 Super Size

Award-winning enterprises achieve breakthrough results in the financial customer operational and people perspectives of their business and leverage internal champions across the organization to ensure ongoing and sustainable success The key to achieving these results lies in total visibility of all business units aligned to strategy This category is open to any Actuate customer with a fully deployed enterprise-wide Actuate BIRT Performance Scorecard implementation

Actuate Performance Management Excellence Awards2009

50

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Vol 6 Issue 2 2009

HealthNow New York Inc headquartered in Buffalo is one of New York Statersquos leading healthcare companies doing business as BlueCross BlueShield of Western New York BlueShield of Northeastern New York HealthNow in the Central New York region and Brokerage Concepts Inc in Pennsylvania

Improving the health of people and communities are HealthNowrsquos corporate priorities and for more than 70 years the company has been a proactive partner in health working to improve the quality of care and the quality of life for everyone it serves In 2008 HealthNow provided access to care to more than 820000 members and in 2008 company revenues grew to $227 billion

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution and describe what you were trying to achieve as a group function or department

A few years ago HealthNow New York Inc determined that the key to its continued success would be its ability to differentiate itself from other healthcare plans in ways that could not be readily duplicated or copied by their competitors In an increasingly crowded marketplace to get the attention of new customers and retain existing ones HealthNow needed to set itself apart from others

This lasting competitive advantage needed to come from an organizational culture that was dedicated to a relentless focus on meeting customersrsquo needs It needed to be highly responsive supportive flexible and nimble particularly as the healthcare marketplace continues to change with more responsibility placed upon its customers

To that end a new business model was implemented to provide the framework for customer focus Under the new structure the company was divided into four strategic business units (SBUs) each responsible for financial contribution customer satisfaction medical utilization and market share of a specific book of business

Each SBU includes its own set of functions including sales account and broker management product configuration customer intelligence pricing enrollment and billing customer service medical management and HR support Each business unit is led by an executive who is fully accountable for the unit operations and for bottom-line performance of the entire business unit Each SBU is supported by various corporate support functions (Actuarial IT Legal etc)

Implementation of the new business model began with a reorganization of the senior management structure The senior management of each SBU has specific incentive goals as well as strategic goals aligned with the corporate incentive Those strategic goals then drill down to ldquoteamrdquo incentives and to a blend of strategic and operational goals

This was a completely new way of looking at our business It was a blank slate requiring new processes and new methodology as well as an examination of existing metrics and processes to determine what added value and where the strengths weaknesses opportunities and gaps were

Under this new structure the Government Programs State and Federal products SBU ndash which historically had some inefficient end-to-end processes lacked internal controls and had minimal oversight of financial performance ndash was able to set a foundation and develop a growth strategy In order to achieve this mission and to align track monitor improve and communicate performance the Senior Vice President of the Government Programs SBU elected to utilize a Performance Management framework via the Actuate BIRT Performance Scorecard

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

As a point of reference the Government Programs SBU is comprised of a State Government Programs team a Federal Government Programs team an Operations team and a Sales team The Performance Management design team was comprised of the Actuate system administratorfacilitator the Government Program financial reporting manager and two SBU data analysts Input from the various teamsrsquo management staff was gathered as the design got more granular

Discussions around the design of the Government Programs scorecard began with two basic questions

1 What are the handful (ideally six to eight) of key performance indicators that are necessary to run and manage your business and to indicate that yoursquore on the right path to achieving your goals

Defining the key performance indicators was a challenge that required the Actuate system administrator in a facilitative role to get intimately involved in order to keep the discussions focused and high level and to limit scope creep The incentive goals were clearly defined at the corporate and SBU level however the tough question was how should they drill down in the BIRT Performance Scorecard The facilitator posed the following questions to the other members of the design team

bull How do you usually look at your business

bull How are the primary source documents that capture this information structured

bull What other ways do you look at your business

Taking the answers to these questions a step further the facilitator asked the next question Is the drill-down structure the same for the core strategic or team metrics The answer was yes By taking this approach we were provided with consistency in how the teams look at their business and the performance of their core indicators

Once the incentive and strategic goals were identified more leading and lagging operational measures were defined such as

bull Call centers

bull Accuracy

bull Quality

bull Sales Performance

2 Who is your audience

Through the entire measure selection and definition process the design team was constantly reminded to keep a second question ndash who is your audience ndash in mind This helped keep the focus on the critical few and keep the number of metrics down to a manageable amount Links to supporting documentation were created to provide easy access to the granular data without burdening the scorecardrsquos objective

The audience in this case was the SBUrsquos Senior Vice President followed by the State Director Federal Director Operations Director and Sales General Manager It then cascades down to each directorrsquos management team and the data providers

In order to provide a complete and consistent picture of State and Federal performance for senior management where

gt Performance Management Excellence Awards

HealthNow New YorkCategory 2 Entry The Perfect Slice

gt Performance Management Excellence Awards

[ Figure 131 Homepage Map ]

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possible the same or comparable measures were created for each team For example when looking at the various call center metrics ndash even if the definitions and targets slightly differed ndash if one team was consistently exceeding or meeting their target it sparked group discussion around best practices processes staffing and target definition

Utilization of Maps continues to play a major role in communicating performance Again focusing on our audience there is a Map at the Senior VP level which then links to a high-level Map for the State director and staff and for the Federal director and staff The one-page snapshot allows management to easily view performance then to drill down to specifics via additional detailed Maps or Books Because the audience embraces the Maps concept a ldquoWhere is itrdquo Map containing all Maps and Books by SBU was created Itrsquos a quick and easy reference tool

3 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

Quantitative results are achieved through the promotion of visibility and awareness The Return on Investment may not fit a conventional definition but can be measurable and accomplished by challenging the data targets and accompanying commentaryaction plan narrative to drive performance improvement Are the targets realistic yet aggressive Are action plans being documented and carried out Are the actions discussions and decisions leading to improved performance and processes

Government Programsrsquo membership is measured and monitored in various ways via the BIRT Scorecard and other sources For example Federal membership is measured by product then by plan It is also measured by market then by product then by plan By creatively visualizing performance in multiple ways via a Map those same data results can sometimes become very obvious telling a different story that may not be obvious via standard reporting methods It may clearly illustrate that a specific product in a specific market is continuously under-performing for example Fact-based decisions can then be made as to whether or not to continue with this product in this market or it may initiate discussions as to how to grow and retain profitable membership for this product in this market

Another more recent example is an initiative to track claims-review savings By reviewing claims via various processes what savings can be recouped or realized What specific areas are State and Federal teams focusing on that can contribute to overall savings for the SBU Again where applicable there should be consistency in the metrics across

teams Placeholders are included to promote visibility to keep them in the forefront even though the data or processes may not be in place yet But by capturing results on one page via a Map it bridges potential gaps between the teams promoting awareness and synergy across the SBU

4 Qualitative results What ldquosoftrdquo or intangible benefits has the group department or organization received as a result of this solution

A major benefit of the scorecard framework for the Government Programs SBU has been the identification and alignment of roles responsibilities and accountability

The SBUrsquos Senior VP monthly leadership meeting focuses on four areas

bull Performance Performance is covered via the existing incentive strategic and operational metrics

bull Action plans Documenting action plans in the Performance Management Software Suite versus verbalizing action plans establishes ownership and accountability At subsequent meetings management follows up on key action items or plans to determine whether or not the corrective action did take place and if yes did it have the desired results

bull Strategic direction The strategic direction of the various teams is captured as a springboard to strategic thinking discussions and planning So as not to lose sight of short- and long-term strategic planning this aspect of the business now is housed in the BIRT Scorecard completing the strategic planning of the ldquoHow are we going to get thererdquo and ldquoAre we there yetrdquo cycle This holistic approach helps minimize the chances of our scorecard becoming too focused on operational performance and keeps strategic planning dynamic and visible

The value of these metrics is not in the data but in the commentary The individual teamsrsquo strategic direction ldquometricsrdquo are subjective red = 1 yellow = 2 green = 3 The target = 3 Each metric includes a description of the specific strategic path we need to research or move forward on as well as what goal achievement it supports The ldquodatardquo ndash or color ndash is based on basic questions like What did you hope to achieve this month vs What did you actually achieve this month Were there any successes barriers obstacles In addition to accountability the entire SBU benefits from the sharing of information having meaningful discussion taking appropriate action and collaboration

bull Key initiatives The last critical component is the identification and alignment of key initiatives that

are necessary to support achievement of the various incentives strategic goals and direction and operational goals As with the strategic direction metrics the value is in the narrative with the color reflecting what was accomplished for the specific reporting period

5 Innovation Why should this solution be considered an Innovative Solution What makes it unique groundbreaking and superior What unintended results did you realize

Over time the Government Programs Performance Management framework evolved into an innovative solution The process drives performance and isnrsquot necessarily focused on ldquocolorrdquo Rather itrsquos about having the right people in the same room on a regular basis to drive meaningful discussion and to take appropriate action to improve performance

Outside of the standard processes it was the monthly review process that drove effectiveness revisions enhancements and restructuring of the meeting schedule agenda and format The Government Program financial reporting manager would meet with each director and general manager to review their scorecard for completeness as well as for performance from an operational perspective The State and Federal team directors would then meet with their respective management teams to review and discuss performance results in preparation for the joint Government Programs Leadership Meetings The audience included the Senior VP down to team managers key data analysts (data providers) and support function representatives Through trial and error management learned to maximize their time and effectiveness by concentrating on key metrics and topics rather than trying to review all metrics identify leading indicators versus only outcome results and include strategic thinking and initiatives Today the monthly leadership

meetings are much more productive and look at strategic and operational performance

As involvement and participation increased in the team meetings as well as in the leadership meetings it removed silos opened communications enabled the sharing of information and best practices and promoted teamwork across the SBU But most importantly it brought about an awareness and a sense of unity and commitment within the SBU to achieve their goals something that was lacking before

While it was not part of the initial scope management realized shortly after implementation that efficiencies could be gained by replacing an in-depth hard copy monthly report with BIRT-generated results Since the BIRT Scorecard contained the same data with supporting narrative ndash plus additional metrics with narrative ndash monthly performance was captured via a monthly report Book various Maps and BIRT-generated reports Elimination of the hard-copy report was an unintended way of encouraging a more active use of the Performance Management software by management to monitor performance thereby increasing user familiarity with the contents features functionality and navigation

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

Sustainability is achieved through a continuous process of revisiting the scorecard when there are organizational changes looking at the business direction shifts goal changes process changes etc To ensure that metrics are still relevant a filtering process is held with each director and general manager every six to eight months or as necessary During this exercise questions such as the following are asked

gt Performance Management Excellence Awards gt Performance Management Excellence Awards

[ Figure 132 CEOrsquos Book ]

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Vol 6 Issue 2 2009

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

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3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

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  1. Button 3
Page 8: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

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Everybody within the company needs information and uses data In most cases employees are interacting with real-time information and making decisions based on historical performance The problem is people tend to want to report on everything which preoccupies employees and takes them away from their core duties Fully integrated Rich Information Applications address these issues by providing employees with real-time enterprise data using a single version of the truth delivered in a dynamic environment that allows any user to interact and modify the information to answer business questions specific to their function

10 Human Resources

Finally one of the things that also has prevented success and is sometimes a stumbling block for Lean Six Sigma deployment is the fact that the training programs that are rolled out by human resources may not be closely aligned with the companyrsquos mission

Once a company starts down the path of Lean Six Sigma the human resource systems need to change alongside it At the heart of Lean Six Sigma is a team approach reward and recognition systems need to reflect that so human resource systems will need to address it

Also critical is that team building has to occur across functional silos You have to build teams and people have to collaborate Human resource systems will drive that

Conclusion

To summarize itrsquos clear that when executed properly there are tremendous benefits associated with an integrated Lean Six Sigma Performance Management initiative Organizational Performance Management information provides strategic information and communicates progress towards a set of goals or objectives across the organization but in instances when things go wrong Performance Management alone does not provide a means to systematically and consistently address problems that arise in the business process or production realm This is where Lean Six Sigma can help assisting organizations in addressing these defects to ensure better results in the future

Norma Simons is president of Simons-White amp Associates a performance consulting company in Ann Arbor Michigan that has been in business for over 16 years and employs performance improvement systems such as Lean Six Sigma Quality Management Systems Business Operating Systems and Balanced Scorecards Certified as a quality engineer reliability engineer and a Six Sigma Black Belt Ms Simons has an MS in industrial engineeringoperations research from Wayne State University in Detroit Michigan Contact Ms Simons at nsimonssimons-whitecom or visit wwwsimons-whitecom

In instances when things go wrong Performance Management alone does not provide the means to systematically and consistently address problems that arise in the business process or production realm This is where Lean Six Sigma can help

ldquo

rdquoldquoWith the Actuate BIRT Performance Scorecard in place now we are able to communicate lsquowhat is important to the organizationrsquo across hierarchies and geographies seamlesslyhellipcause-andndasheffect maps have become the basis for all reviews and prioritization of strategic initiativesrdquo

- Gopal Sharma Senior Manager Business ExcellenceVoltas Limited Dubai

To deliver on its mission to provide high quality cost-effective project management and engineering services to customers throughout Asia Voltas

Internationalrsquos Electrical and Mechanical Division (EMD) adopted the Balanced Scorecard (BSc) as a tool for strategy deployment in 2004 The BSc was designed for EMD in line with the strategic objectives and cascaded further to all units and business heads for effective implementation The measures were tracked on a quarterly basis using Excel spreadsheets

Tracking BSc measures through spreadsheets proved to be ineffective in tracking progress on divisional performance

measures Moreover due to lack of integration the Performance Management tracking through BSc was limited to financial measures only The non-financial measures were not tracked due to lack of aggregation of data across levels and geographies This led to misalignment among various functions resulting in ineffective strategy deployment across the division

The major hurdle was ensuring the integrity of the performance data on non-financial measures hence an integrated system was required to ensure the flow and aggregation of data across all levels Also the reporting structure on various key performance indicators (KPIs) was not streamlined for effective Performance Management in the division

The situation prompted Voltas to seek automation of the Balanced Scorecard with integrated tracking and monitoring of the KPIs related to strategic objectives of the company

The SolutionA team was formed to explore more robust Performance Management tools Voltas conducted its due diligence in

Putting the Wheels Into MotionVoltas Views a Dramatic Shift Towards Transparency

Alignment and Dynamic Response

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Vol 6 Issue 2 2009

finding an appropriate solution and in December 2007 chose the Actuate BIRT Performance Scorecard as its Balanced Scorecard solution

The software was customized in-house to the divisionrsquos needs and implemented across levels and locations The major challenges overcome during implementation were

bull Complexity of location structure and measures structure This sophistication and flexibility was a requirement to ensure the integrity and correct aggregation of the data and needed to be incorporated into the overall system

bull Aggregation of financial performance data from different countries in different currencies Led by the local support team and Actuate partner EU Partners a currency conversion facility was created to overcome this hurdle

bull Software access through smart client route at project sites A weak internet connection problem was resolved by Actuate Customer Support which installed the clientrsquos executable file on the local PC An Excel import and export tool is used for data updates to the system

About VoltasElectrical Mechanical amp HVAC Solutions (International) is part of Voltasrsquo Electro-Mechanical Projects amp Services cluster Established in 1978 as Voltas International Limited (a wholly-owned subsidiary of Voltas Limited) to handle international business interests the business looks after core business activities in the Mechanical Electrical amp Public Works (MEP) project areas specifically turnkey projects in

bull Electro-mechanical works comprising electrical building services HVAC (heating ventilation amp air conditioning) plumbing public health fire fighting ELV amp specialized systems

bull Electrical power projects

Voltas Limited a TATA enterprise offers engineering solutions for a wide spectrum of industries in areas such as heating ventilation and air conditioning refrigeration electro-mechanical projects textile machinery machine tools mining and construction equipment materials handling water management building management systems indoor air quality and chemicals EMD is one of four independent business-specific clusters within Voltas Ltd each with its own facilities for market coverage and service to customers

All of the above challenges were addressed easily to match the companyrsquos needs thanks to the versatility and customizable features in the BIRT Performance Scorecard

The initial rollout of the Performance Management system started in March 2008 with successful system deployment across all locations by the end of August 2008 The implementation involved user training on the software and BSc measures

Benefits

All business reviews are now being conducted online in the system both at the regional and corporate levels Managers can view the status of each project by just logging in as well as review and approve actions planned by the project lead without waiting for any formal performance review meetings This has led to a dramatic shift in the way Voltas manages its performance and has improved the transparency in tracking KPIs

Major benefits derived from the implementation are as follows

Solution OverviewIndustry Engineering Services

Company Size $400 million 3800 Employees

Challenges

bull Spreadsheets ineffective in tracking divisional performance

bull Non-financial measures were omitted due to data integrity issues lack of aggregation

bull Strategy unevenly deployed leading to misalignment

Solution

bull Actuate BIRT Performance Management Software Suite

bull Integration consulting services

bull Customized smart client

Benefits

bull Transparency in tracking KPIs all in one place

bull Alignment of action plans to division strategy

bull Dynamic Performance Management timely reviews

Design Stage

bull Measurement system evolution and refinement during system configuration

bull Clear consensus on KPI definitions and descriptions

bull Minimal support required during configuration and implementation

bull User training and access with individual user ID and password cementing ownership and accountability of the scorecard across hierarchies in the division

bull BIRT Scorecardrsquos ease of customization to business needs enabled instantaneous execution of required changes in the system

Rollout and Implementation

bull Strategy Map and other Cause amp Effect Maps have become highly illustrative in communicating the relevance of various measures and their integration with strategic objectives

bull Action Plans are fully aligned to divisional strategy and can be monitored online

bull Timely business reviews and dynamic communication of performance

bull All key performance indicators are tracked and available in one place business performance reports are generated as and when required

Going forward Voltas plans to roll out BIRT Scorecard access to its subsidiaries and to joint ventures in order to track the Balanced Scorecard of allied companies on the same platform The goal is to use it as a comprehensive Performance Management tool for the international operations of the entire company

Voltas has branch offices in Abu Dhabi Dubai Qatar Singapore and Kingdom of Saudi Arabia For more information on the company visit wwwvoltascom

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In todayrsquos economic climate careful decisions are needed to help

business remain competitive and to continue to succeed To stay smarter they need to build deploy and maintain business-critical reporting and information applications

Open Source Business Intelligence while it comes with its own set of technical challenges and misconceptions is often the right solution to deliver that Actuatersquos Business Intelligence Reporting Tools (BIRT) Open Source solution ndash developed with the Eclipse Foundation ndash is one example of a robust and web-centric Open Source Business Intelligence tool

The Open Source Model

An economic shift has occurred in the past decade introduced with the rise of the internet The internet provides connectivity which in turn connects demand to supply this removes the capital equation and shifts conditions in the market People with computers all over the world provide the means of conduction and with easy ways for these people to connect they can easily collaborate on projects with very little infrastructure This in turn led to the popularity of Open Source

Open Source has had many consequences for the enterprise software market primarily by making it a commodity market and by driving down price It also allows people who have a desire to do something to make money from doing it Production inputs are widely distributed and the raw materials are there to produce things in new ways Many argue that this shift has been about software licensing but actually it is largely about the production and distribution of software it is therefore a change that is more about economics that about ideology That economic base ndash the combination of connectivity of easier ways to market produce and distribute software and the fact that the internet acts as a giant copying machine ndash changes the conditions under which software can be sold That is why Open Source continues to disrupt the market and to force vendors to come up with new ways to cope with it Enterprise software is not going away rather it has been forced to shift

A 2008 survey by North Bridge Venture Partners asked Which sector of the software industry is most vulnerable to disruption by Open Source At the top of the resulting list was web publishing and content management a market thatrsquos currently highly fragmented and therefore perfect for introducing Open Source products The second sector was social software an entirely new category that has been difficult to define and difficult currently for commercial vendors to make money from again Open Source is the ideal solution

Business Intelligence was the third sector listed in the North Bridge survey Again this is understandable since BI tools and data warehousing tools are exactly that tools While end users consume the outputs theyrsquore not themselves often put into the hands of end users rather IT sets up the meta-data defines metrics etc Which means Open Source is targeted at the right audience there is a platform in a data warehouse that has multiple layers any one of which can be Open Source or

LEVE

RAG

ING

O

PEN

SO

URC

E

20

Perform M

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21

Vol 6 Issue 2 2009

proprietary Those modular boundaries make Open Source an ideal fit

What IT Looks For

IT acts ndash for the most part ndash as the gatekeeper to Business Intelligence When searching out new software IT generally looks for three things

1 Better alternatives to the status quo Specific features that are better for example

2 Ways to cut costs With commodity infrastructure in place IT has to try to drive down costs

3 Unique attributes There may be something they want to do but cannot do using their current system or features that might not be available (For example their mainstream BI package might not have web-accessible dashboarding that can be self-service)

Why Open Source

In addition to examining the sectors left vulnerable by Open Source the North Bridge Venture survey also asked What makes Open Source attractive Price was the most popular answer In addition to the capital cost of licensing Open Source drives down acquisition cost as companies no longer have to go through heavy proof of concept Itrsquos also easier to trial things and if license costs are less then maintenance costs are also less Finally unbundling maintenance support and service means that businesses can choose from a menu of services instead of being forced into a 20 percent single lump fee

The study also showed that companies found that Open Source offered freedom from vendor lock-in In addition it is flexible with easy access to commodity code in order to develop embed and build content into websites

Another 2008 study by The 451 Group gave a list of what organizations saw as benefits to Open Source once it was already introduced At that point flexibility ndash by 05 percent ndash came out over cost In this instance though the definition of flexibility was different respondents were impressed by the fact that there is no vendor that dictates when they have to upgrade how they have to upgrade and why they have to upgrade For a commercial vendor at end of life or desupporting versions of their software a sales and marketing schedule will often require a release every Q1 whether they are ready or not As a result

companies will be forced into an upgrade they donrsquot want that was released simply because marketing dictated it and not necessarily because it was ready Open Source is typically not under those same types of pressures

Buyers were also impressed by scaling costs if an organization has 50 initial licenses and pushes it out to 150 more people in BI lowered costs come in beyond the initial capital costs As well companies are not dependent on vendors for service or for additional pieces of technology

Whorsquos Adopting

Open Source Business Intelligence adopters include

bull Independent software vendors solution providers and OEMs They are taking Open Source BI and pushing it into products that need reporting and dashboards Theyrsquore beginning to build capabilities using Open Source into quality networking gear file servers and databases

bull People who have traditionally been underserved and have not been getting what they need for whatever reason They may not have had the budget or their current vendor might not offer some of the functionalities that they want Possibly it could be over-serve at least half of the features in a major BI stack today never get used

bull Developers Web developers provide information ndash especially database information ndash on their websites while internal developers have to build reporting features into applications and typically do not have access to the tools they need Tools like BusinessObjects and MicroStrategy live in a data warehouse in a different area of the organization and canrsquot be embedded easily

In terms of the organizations adopting Open Source BI many are on the small side with less than $100 million in revenue But very large organizations are just as likely to adopt Open Source solutions as well This is the inverse bell curve of Open Source BI implementation

Smaller-sized organizations have fewer data sources and more manageable data volumes are more interested in cost flow and also donrsquot have the same level of data volume and complexity that might exist in a medium-to-large organization or deployment Much more manageable data volumes less cost to scaling and fewer technology issues in terms of complexity make these ideal environments for Open Source

Open Source drives down acquisition cost as companies no longer have to go through heavy proof of concept ldquo

rdquo Large organizations though have equally ideal environments They arenrsquot for the most part introducing Open Source at an enterprise-wide level but rather have projects with specific features that need to get done The project in question may exist only within a single department which pushes down data sizes and deployment complexities making them a good target

Introducing Open Source BI

Open Source BI use often comes in at the edges and results from discontinuity An example of such a discontinuity might be a company restart many data warehouse projects started with a particular data model ndash copying a production database and putting reporting on it for example ndash and have to do a schema change At that point the cost of switching from one BI tool to another or from one ETL tool to another is fairly low Everything has to be changed anyway metrics change schemas change queries change The same is true with platforms moving from one database to another involves an integration of an entirely new set of systems These discontinuities often allow for the introduction of Open Source

New interface requirements can also lead to Open Source implementation as a company attempts to bring data-warehouse data into an application deploying it out through a website or via an application But some users may only need a few single simple production reports and donrsquot need to be served through a tool that costs between $1000 and $1500 per seat which is the average per-seat deployment cost of iTools Companies can reserve their BI tools for core individuals who need the flexibility and features and can build Open Source into applications for large-scale but simple reporting

In fact in most cases organizations donrsquot replace an entire system with Open Source That only happens in the cases of large discontinuous change where the features are good enough in an Open Source tool the deployment matches and there is no reason for pushing through a high-cost high-complexity solution Whatrsquos more likely to happen is an augmentation where a particular department ndash or a segment of users or particular class of tool ndash is given something that they need in Open Source For example a BI tool might be good and flexible with interactive reporting that can get production reports out and do the schedule but perhaps doesnrsquot have statistical features rolling out something like R to only a couple of analysts and layering that on top of the warehouse may be the solution

Augmenting and bringing in new features and capabilities in areas where Business Intelligence tools might be weak is typical of Open Source implementation This is an opportunity to augment an existing environment in a cost-effective manner to build features into that environment and to get the features specifically needed without paying for a whole package that isnrsquot all necessary

In contrast with what happens in the case of most traditional models much of the time the need for Open Source applications comes from the bottom-up and is established from a point of need from a developer or a department trying to get something done There are no enterprise sales representatives making calls or going through a procurement process where vendors and financials are examined There is also the ability to put something out in real terms instead of relying on a fake proof of concept where following that proof of concept companies are forced to either pull out and throw it away or to license the software

Roadblocks to Implementing Open Source

Misconceptions still exist around Open Source based largely on the idea that these projects are being developed by teenagers in their parentsrsquo basement a myth that is more than a decade outdated as today Open Source projects are generally run by commercial Open Source providers with paid developers Still a lack of information can prove a problem for organizations introducing Open Source This often plays out in the legal department which reviews all contracts and may not be informed when it comes to Open Source software licenses An Open Source license will be missing half the standard clauses the lawyers are used to clauses of restriction that dictate how to deploy what can be deployed where it can be deployed and how the software can be used Most Open Source licenses do not have these same clauses and lawyers will want to know why theyrsquore missing That can be another road bump in getting the software acquired

Support can also be more confusing Most major projects have commercial vendor support behind them But unbundling is also available which means buyers donrsquot have to purchase support but instead can buy the subscription model that covers only bug fixes integrated patch testing and certification against databases This is because enterprise support is often overrated more often than not internal support solves more problems than the vendor does

Augmenting and bringing in new features and capabilities in areas where BI tools might be weak is typical of Open Source implementation ldquo

rdquo

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Implementing Actuatersquos BIRT Open Source Technology

BIRT Actuatersquos Open Source technology was developed with the Eclipse Foundation and does an exceptional job in meeting web-reporting requirements while utilizing the Open Source model Itrsquos a Java tool with a web-centric development and design paradigm BIRT reports are built with the intent of publishing to the web exclusively or more exclusively than is the case with other alternatives that are typically intended originally for paper BIRT is also very modular and very component based allowing users to do as much or as little as they want to deploy as much or as little as they need when theyrsquore creating their reports or embedding this technology within their environment

One of the goals of BIRT is to cater to the power that is needed for many of todayrsquos reporting projects but also to offer the simplicity that means an individual report creator can be very effective at doing their job simply by using the BIRT design tool itself That goal has proven successful so far with 65 million downloads of BIRT since the projectrsquos inception 45 million of them in 2008 alone BIRT is in fact one of the fastest growing Open Source projects on the internet right now

BIRT does a great job of supporting a wide variety of report types it supports BRD Pro BRD BRS and IV and as users

build components throughout the project they can reuse those elements in subsequent future reports It also supports standards such as HTML cascading style sheets JavaScript Java and XML adding the underpinning technologies for either customization or enhancement and allowing developers to leverage BIRT while using the skills that theyrsquove already developed As an integrated report development environment BIRT also provides graphical and robust tools for the most common reporting tasks including query building ndash such as graphical object layout ndash and representing such as charting As well BIRT includes both online help and documentation

Itrsquos an incredibly robust tool and is capable of being embedded of being delivered to small groups or across the enterprise leveraging Actuatersquos commercial platform New capabilities include the ability to add interactive Flash objects into the environment to build personalized dashboards to create ad hoc reports and to create interactive viewing Actuate also recently introduced the JavaScript API which allows users to embed approximately a dozen lines of JavaScript into any webpage and from that access any content within the Actuate environment including any BIRT report that is hosted in that environment which in turn can be delivered to any type of JavaScript-enabled browser

BIRT is built in the Eclipse Project Actuate sponsors and chairs the project management committee for the BIRT project It is Actuatersquos third reporting technology built from scratch which means there is a high degree of long-term experience integrated into the BIRT environment

How the End User Benefits From BIRT

BIRT comes complete with 65 million sets of eyes worldwide looking at it and suggesting changes That has driven its enhancement in the marketplace The overall number of committers on BIRT historically is high and the current level of committers on the project remains high itrsquos nearly the same as Apache committers in the market today

Actuate ndash in its sponsorship of BIRT ndash has added and created a community called BIRT Exchange which is a resource for the BIRT development user to continue to enhance their BIRT expertise and to continue to gain help if needed from the BIRT community No question goes unanswered on BIRT Exchange which is at odds with what people often find in other Open Source forums where a huge number of questions remain unanswered from the audience Within the BIRT Exchange environment there are three different forum administrators who make sure every single question is answered BIRT Exchange also hosts the documentation for the entire BIRT product line as well as videos and webinars designed to further the training and adoption of BIRT itself

Actuate employs more than 50 developers on the Eclipse project itself with documentation and publications available in support of the project available at amazoncom

Actuatersquos Value Add

BIRT is modern and flexible and open Since itrsquos built within the Eclipse Project anyone who knows Eclipse knows how to use it Actuate adds interactivity which take the form of Flash widgets embedded into the BIRT development environment ndash allowing users to build their own types of dashboards ndash or through interactive viewing to transform a report from being static to something an end user can manipulate and evolve over time This is important because reports typically become obsolete quickly the requirements that they originally meet changes as users use the reports to become smarter and then the questions they want answered change Which means that providing this kind of interactive content is key to the success of a Business Intelligence project

Extending BIRT Capabilities

BIRT development tools and the BIRT engine are available as Open Source and are widely distributed Typical capabilities such as JavaScript and SQL skills are required to become familiar with the BIRT product

The second level of capability is the ability to embed BIRT within applications and to begin to add degrees of interactivity to the environment such as Flash widgets or the interactive viewer This allows a user to create robust rich embedded applications

The third level is for workgroup or departmental-style applications or small organization-type applications To adopt this type of Open Source technology individuals would introduce BIRT plus the single server iServer Express a hybrid of Open Source and commercial technology

Finally there are organizations that seek enterprise-caliber or enterprise-level deployments that want to publish BIRT applications outside the firewall to secure these applications for millions of users and to support very high degrees of performance and reliability This type of scalability requires both good design and trial and error as operating systems platforms and other elements continue to evolve Maintaining best performance for very large-scale environments means making sure that each one of these items is optimized

Open Source Vs Commercial Technology

The overall platform that BIRT delivers is a complete set of both development and deployment options for creating any type of environment Users can be characterized across a number of different lines from incredibly skilled Java developers to everyday report developers from people familiar with Actuate to those who are not from power users to business users etc

There are two fundamental questions that these users need to answer

1 Is BIRT the right technology for the application theyrsquore creating

2 Whatrsquos the best way to deploy it through Open Source or through commercial deployment means

The answer to the second question is reliant on a number of variables In the following situations for example Open Source would be the ideal alternative

bull Those users who want to use BIRT for individual use

bull Those who want to embed it into their own project

bull An ISV who has the technology in their own application to support printing and baked-in reporting needs

Converting to or supporting a commercial model meanwhile occurs most frequently at the enterprise-server level for organizations deploying the environment to hundreds or thousands of users It supports a wide variety of types of users

But both the Open Source and commercial models employ a common report design format Itrsquos a progressive development experience or a collaborative report design and collaborative process allowing each user to participate in the definition and the evolution of their reporting environment while at the same time using tools that are appropriate for their skills a novice user isnrsquot being overwhelmed by too many features while the power user or the highly skilled users receive exactly the right kind of technology and level of development capabilities theyrsquore accustomed to

Yet some of the decision-making criteria lean more effectively towards a do-it-yourself situation using the Open Source type

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of model and some lean more appropriately to a commercial investment and a commercial tool A growing level of complexity often drives commercial interest but certain complex functionalities ndash including supporting web services or web services SQL or other examples of integration techniques ndash the Open Source model is more than capable of supporting on its own

The applications Actuate deploys are information applications When choosing the paths of how to proceed ndash with regards to choosing either the Open Source or commercial interest ndash there are typically four premises to consider in an information application

1 Is the report or the application able to consume and collect data from one or many sources whether itrsquos a single report or a complex application Typically when the data sources are simple and the data connections well understood either Open Source or commercial interests are appropriate With meta-data layers and extraction layers the commercial model tends to be more effective But if itrsquos an embedded project using POJOs or other Open Source or specialty connectors ndash unique connectors ndash that often keeps a project more suited for an Open Source deployment

2 How is it able to aggregate and transform that data into meaningful information Looking at aggregation the same premise holds true if therersquos simple aggregate functions or automatic cross tabs or even custom or reuseable business functions both the Open Source and commercial models are appropriate In terms of embedded Java functions those aggregations are appropriate in either case Itrsquos when entering into areas of security ndash of parameter-driven values dynamic-parameter collection cascading menus etc ndash that a commercial purchase tends to excel over the Open Source version

3 What are the presentation options or formats available to present that data When the presentationrsquos fairly simple both Open Source and commercial apply When

charting cross tabs and embedded graphics are the norm then the two are served both in Open Source or commercial interests When JavaScript is starting to be used as a customization or a dynamic-properties delivery vehicle both the Open Source and commercial models are effective although keeping this content embedded within an environment is probably more appropriate using Open Source Itrsquos only when introducing elements such as interactive viewing capability or the ability to manage an environment through a management console capability that the commercial option begins to edge out

4 Are we able to achieve the levels of scale that we need to get that information out to every user whorsquos interested in it When individual use is appropriate Open Source is a better fit When transient content is what a company is delivering thatrsquos usually a better fit with Open Source as well as is embedding To support a collaborative reporting effect or to support a variety of developers and users ndash especially users with different skills ndash the shift begins to move towards a commercial style of delivery When therersquos custom delivery required such as JavaScript API the commercial environment is also more appropriate

These are the capabilities of different deployment options for both the Open Source platform as well as the Actuate commercial platform geared towards allowing organizations to get the value that they most see fit within their environment or their application Typically for environments that have a heavy requirement for infrastructure thatrsquos what drives the commercial purchase whereas customization or individual interests typically drive Open Source

The key thing for any organization is to first decide what kind of reporting technology they need ndash whether it be Open Source or commercial ndash and then to look at their own needs And finally consider the BIRT environment as a vehicle that meets web reporting needs

For more information on BIRT visit actuatecom

A growing level of complexity often drives commercial interest but certain complex functionalities ndash including supporting web service or web service SQL or other examples of integration techniques ndash the Open Source model is more than capable of supporting on its own

ldquordquo

One of the benefits of Actuatersquos Business Intelligence Reporting Tools (BIRT) is that very capability for flexible functionality thatrsquos adjustable to usersrsquo needs Every component of the BIRT technology ndash whether in the Open Source or commercial versions ndash builds upon the components before it creating a robust and flexible system designed to meet each organizationrsquos unique Business Intelligence needs

Choose the Right Graphical ToolThe first step towards evolving organizational Business Intelligence is choosing the right graphical tool The Eclipse BIRT technology for one is a visual designer thatrsquos geared at report developers as well as JavaScript and Java developers and can create a wide range of reporting technologies and web reports BIRT builds content that is specifically intended for the web and uses techniques that are expected when building web pages and web content It doesnrsquot use a banded report writer design or development metaphor typical of many older report-authoring products including Crystal Reports or Jasper

BIRT is the third from-scratch product that Actuate has sponsored and developed and as such it takes into account more modern capabilities and techniques for developing web content In building BIRT Actuate has drawn from its extensive market knowledge borrowing best concepts from other products as well as from its own Reusability and the ability to include programmability within the environment have been traditional Actuate capabilities that have been included in BIRT but BIRT technology also uses de-facto standard programming capabilities such as embedding JavaScript and Java into the application rather than using a proprietary language

Open Source is the core reporting capability and value-added commercial products can be added to it More than 50 developers are employed by Actuate on the BIRT Open Source project similar to the number of developers Apache has applied to the Apache project Alongside these Open Source developers are Actuate developers working on the commercial product of BIRT

Open Source BI

Cost-Effectively Deploying

When deploying Open Source Business Intelligence technologies multi-layered functionality that can be added as needed serves to create a cost-effective way to build a solution specific to an organizationrsquos needs Each function acts as a building block as a company creates exactly the capabilities necessary for the job on hand without wasting money and resources on items that arenrsquot needed

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Another benefit of BIRT is the BIRT Exchange community Actuatersquos user forum which is far more robust and extensive with documentation and help information than has been found traditionally Nearly every forum post has an answer to it in some form which is not likely to be experienced with any other Open Source project or forum-based community Meanwhile the community itself is vast and growing rapidly Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate ndash where a developer may have downloaded 20 copies over its history ndash adds up to 350000 different users of BIRT technology That number is growing at roughly double the rate of the other two most popular Open Source projects

Add Value Through Features

Actuate BIRT technology has a range of features that will add value to a companyrsquos BI project

1 In addition to being a graphical report design tool BIRT takes into account the long-standing tradition of Actuate to support reuse libraries and reusability across the entire environment It is able to not only reuse BIRT objects and BIRT components ndash such as charts and tables ndash but also to incorporate and use JavaScript objects and Java libraries in the reports themselves This creates a rich experience for driving and building web-oriented reports

2 BIRT offers navigability While a user is in a graphical design tool they should be able to take advantage of some of the core capabilities that the technology offers such as a visual hyperlink builder that keeps information in context as well as the ability to create cross tabs dashboards and charting mechanisms that are active and navigable Inserting type of content ndash so that it is both consumable and scoped in context for the user ndash is important to the success of deployment Hyperlinking in context is one of the key elements to supporting Open Source deployments

3 The Eclipse BIRT environment supports a variety of graphical types or charting types including not only grids and tables but both static and dynamic images as well that can be linked back to databases or can support conditional formatting and a variety of conditions baked into the report BIRT is able to handle a large variety of chart types and styles allowing organizations to convey exactly what theyrsquore trying to deliver to their users Supporting rich charting is one of BIRTrsquos key core capabilities

4 The Open Source Eclipse engine can be embedded into or deployed from an application quickly within a JVM Users can add content generation or report generation functionality easily and quickly to their application by inserting it into their run time The BIRT engine itself is a key component in the Eclipse BIRT project It has a variety of extension points built into it which means itrsquos able to not only generate supported output types ndash such as HTML or Adobe PDF ndash but can also create custom emissions from a BIRT report such as an emitter for mobile content or an emitter for a particular report format of the userrsquos own perhaps to feed another application With a robust API structure within the Eclipse BIRT engine these are all possible

Build On Interactivity for a Richer Experience

Building onto that BIRT experience organizations can add more interactive and visual elements to create more appeal within their BI projects

Animated Flash Visuals Animated Flash visuals built into BIRT reports lend to a richer more enjoyable experience for end users They can take advantage of the navigation enhanced with the visual and animated appeal that Adobe Flash offers

The Actuate BIRT development tools include 266 Flash widgets This is one feature that differentiates BIRT Open Source with the BIRT commercial product Those who purchase the development tools from Actuate will immediately receive these Flash objects that can be deployed not only within Actuate BIRT reports but within Eclipse BIRT reports as well they are portable across both environments

Interactive Viewing Often users have a difficult time articulating their requirements to report authors That problem is alleviated when authors can deliver them an interactive viewing experience allowing the report to become changeable and adjustable by the user The user can select a particular column and can apply a filter to that column they can toggle back and forth between viewing perspectives rotate charts change the grouping of a report or add more visualization to it with something such as conditional formatting They could even navigate within the report using a joystick or deploy that report or portlet content anywhere they want And ultimately they could drag and drop and change ndash or add columns to the report directly ndash by manipulating the report as needed

This interactivity gives the end user the ability to enjoy more freedom with regards to how they use the report It also

addresses one of the biggest conundrums with regards to report delivery giving users a report provides them with content that makes them smarter and as they get smarter they take that information and they work it into their knowledge which in turn changes the questions that they ask of the report This means that what they need from a report changes over time Allowing users to modify reports themselves is a key goal in supporting BI processes because as users become smarter about what theyrsquore doing with their content they can help assist in defining what the next iterations of their web content might be

Choose the RIght Server to Store and Schedule Content

Actuate has spent the last 15 years developing the Actuate iServer It comes in two styles ndash iServer Enterprise and iServer Express ndash and offers a robust environment for creating managing and delivering BIRT report content to users on schedule on demand or on an ad-hoc basis directly

The iServer Express is a single-server deployment that is appropriate in scenarios where there is less active usage it supports a sequential batch generation capability and roughly 10 user connections per second as the users connect to the server It offers that scheduling and deployment capability at a very cost-effective price point while allowing organizations to secure their report content using the iServer repository to take advantage of some of the presentation layer capabilities that Actuate offers through its information console to present and manage that content on behalf of the users and ultimately to create a full reporting experience for users directly

Alternatively for those deploying a very large system ndash perhaps one that operates outside of the firewall in a traditional web information application ndash there is the iServer Enterprise The iServer Enterprise is massively scaleable but also very predictably scaleable as companies double the resources that they can apply to their environment they double the throughput and user numbers that theyrsquore able to support with the iServer It is also highly configurable in regards to how content is deployed and supports multi-tenet environments or multiple application environments In addition it can be componentized so that a presentation layer can be separated from a content creation layer or a business logic layer from a data management layer ndash including the meta-data layer itself ndash to help abstract and manage the queries driven

Determine Where Content Can Be Distributed

Actuate JavaScript API is a mechanism that allows the user to take a JavaScript library embed it into any HTML page and then from that JavaScript library securely access Actuate content from the iServer This particular capability allows the user to put either a report part ndash a reportlet ndash or an entire report directly into new locations This could be used as a user attraction vehicle it could be used as a dashboarding vehicle or it could be an integration point for systems that are written in NET rather than in the j2e environments that BIRT typically supports

Deliver Mash-Up Applications

Delivering mash-up applications using all of the functionalities listed above is simple in the BIRT technology and lets users themselves participate in the definition saving creation and management of their own dashboard displays and it allows them to watch exactly the KPIs that they care about

This is done through Actuatersquos Mashboard Customization to the Information Console which allows users to take any BIRT report content and to deploy it directly into a mash-up style environment where they can define exactly what pieces of content go into their application and what doesnrsquot These dashboards can also be roll-based so that particular pieces of content can be deployed to particular types of users directly then if they want to continue to customize that capability theyrsquore able to do so

Conclusion

Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques such as Flash and Ajax in a web-based design metaphor It is designed to evolve effectively over time and is meant to give organizations a choice for every type of user The first decision point of any organization is to recognize whether or not BIRT is the right reporting technology for the information application in question Once thatrsquos decided companies must choose the technologies they want to offer each type of user and then consider how they want to deploy those technologies directly

A wide variety of capabilities can be build into the BIRT environment ranging from Open Source to commercial Actuate products It is a flexible environment and is robust for delivering to users any type of information-driven web content

Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate adds up to 350000 different users of BIRT technology ldquo

rdquo Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques ldquo

rdquo

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The Challenge

Guiding a ship requires visibility into navigation operational performance and up-to-date information to make decisions This type of customer challenge drove ABS Nautical Systems

to incorporate Actuatersquos BIRT technology into its NS5 fleet management software

A leading software provider to the maritime industry ABS and its NS5 modular ERP system help customers manage principal operating expenses associated with vessels and offshore rigs ABS provided basic scheduled reporting and offered ad hoc reports in response to specific customer requests but customers demanded better functionality including the ability to easily extract and create both standard and custom reports

Producing reports to customersrsquo satisfaction took time as reporting was not central to ABS Nautical Systemsrsquo expertise Further it took valuable programmer time away from developing new features and functions for its core product This created the need for ABS to leverage a tool to provide highly-developed rich information application functionality increasing the power of its fleet management software while enabling its customers to access more flexible reporting tools

The Solution

With its own expertise in Java development and their existing reporting ABS searched for an Open Source reporting platformtool that they could leverage and seamlessly embed in their software ndash one that would deliver for ABS and their customers both immediately and for future expansion After considering Jaspersoft Actuate and Pentaho ABS selected Actuate and BIRT for their on-demand reporting solution

ldquoActuate has a clear roadmap and direction scalable platform financial stability and Open Source development platform The Actuate offering was an excellent fit because the technology

ABS Nautical Systems (NS) is one of the leading providers of fleet management software packages available to the

marine and offshore industries It offers a fully integrated modular approach to managing the principal operational expenses associated with a vessel or offshore rig ranging from maintenance and repair to regulatory requirements purchasing and inventory and crew management and payroll

SAFE AT SEAABS Nautical Systems A Case Study

ldquoBoth the technology roadmap and scaling are key It was an excellent fit for us actually ndash you had the right technology yoursquore Open Source based BIRT technology was key and you were the most helpful in helping us do the prototyperdquo

- Sandipan Bhattacharya ABS Nautical Systems

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used Open Source BIRT allowing us great flexibility in developing NS5 Actuate was most supportive in helping ABS NS do the prototype ndash both their Professional Services as well as the account teamrdquo states Sandipan Bhattacharya CTO for ABS NS

The new BIRT-based on-demand reporting tool within ABS NS5 is a web-based application that enables clients to quickly and easily generate custom reports from any NS5 module It handles reporting for the central elements of operational management ndash from regulatory requirements to payroll to planned maintenance programs But it takes NS5 beyond operational duties to consolidate data from across software modules to better monitor key performance indicators (KPIs) such as time to repair spare parts turnover and purchasing cycle times

The interactive information views that BIRT provides help fleet managers to achieve maximum efficiency empowering NS5 software users to get what they want in terms of the reports they need in the way they want them as each department or company may want to look at data in a different way Lastly that same data is more accurate because it comes as near real-time information at the time they need and can be benchmarked against how well they are performing to provide trends for evaluation

BenefitsResults

bull Speed time to market with new features by focusing on core competence in its software platform This allows ABS to focus development on its core product and improve customer satisfaction by rolling out and providing complete reporting modules This also helps decrease development expenses and support costs

bull Expand available market with completely new product lines enabling ABS to increase its client base to companies that didnrsquot know about them or had previously disregarded their offering The additional modules make the product more attractive to existing clients creating additional revenue sources for ABS

ldquoThe BIRT Open Source platform allows for a great deal of flexibility in the development stages Additionally the ease of integration into our OEM package was a great benefit Lastly the Actuate and BIRT offering has proved to be well suited to ABS Nautical Systemsrsquo needs and Actuatersquos roadmap shows what we can do in the futurerdquo states Bhattacharya

Self-serve customization drives flexibility and ease of creating reports BIRT empowers users to produce reports customized to their individual and departmental needs and preferences And as government reporting requirements change they can

Solution OverviewCompany Profile Integrated fleet management software for marine industries

Industry Software

Location Houston with offices worldwide

Challenges

bull Customer need for better more timely reports

bull Enable customers to self-serve for ad hoc needs and regulatory requirements

bull Focus on core software expertise and feature requests

Solution Integrate Actuatersquos Open Source-based BIRT reporting with ABSrsquo NS5 fleet management software

Business Benefits

bull Faster time to market broadened portfolio

bull Ease of integration development flexibility

bull Increased visibility into operations aids customer competitiveness efficiency

bull Users empowered to customize reports

Does your companyrsquos mission and vision statement place the customer at the center of your universe

Does it promise to maximize customer value and deliver the best customer experience possible If it does your mission and vision statement is surprisingly similar to nearly every other organization And much like them chances are your organization is struggling to make this vision a reality to actually reinvent itself as truly customer-centric

ldquoCustomer-centricrdquo has become the new buzz phrase thrown about at most executive planning sessions and has replaced ldquoinnovativerdquo as the new mandatory strategic language The truth is it takes a lot more to become customer-centric than changing the company vision ndash it requires a departure from years of tradition a clear look at who and what your organization is and a deeper understanding of what motivates your customers to buy from you or from your competitor Fortunately the cost to make this change is surprisingly low while the benefits and the returns can be shockingly high

Finding Your Customer

Customer-centric implies that the customer is central to the organization but this is too esoteric to have any real meaning An organization turns materials into a product or service which is then sold Everything the organization does must lead to this

event (with no sale after all therersquos no customer) This logic works for most people and most organizations and it logically follows that the focus should be upon the creation of the best possible product or service because this is what causes a prospect to become an actual customer

This logic fits nicely with traditional thinking It was popularized by Michael Porterrsquos value chain approach in the mid-80s The value chain is a string of critical processes that begins with raw materials or inputs and ends with a product or service delivered to a happy customer Thinking this way makes sense because it is easy to place the customer at the end of the process But this mind-set doesnrsquot just affect how executives structure the organization it weaves its way into every aspect of how the organization manages itself and how managers make decisions

For example the finance department performs the close process each month so that it can deliver financial information to managers with actual bottom-line responsibility These managers from executives to cost center managers are financersquos customers just as shareholders are when they deliver quarterly reports Once these reports are delivered finance goes back to the business of accounting and managing revenue and expense until the next month Engineers work to design new products that will keep them one step ahead of their competition Manufacturing produces goods to meet customer

respond more quickly adapting them by themselves instead of depending on ABS to supply reports

ldquoActuate empowers users to get exactly the reports they need the way they want them Empowerment is key as well as flexibility as each department or company may want to look at data in a different wayrdquo states Bhattacharya

Rich information drives efficiency through increased visibility and better insight into operations improving customer competitiveness With highly accurate real-time information on how well they are performing management can control both overall and specific costs of operating and maintaining their shipping fleets ldquoThey donrsquot have to wait hellip they can see all contributing factors day to day It helps improve efficiency at every level For the first time a shiprsquos captain can have insight into the operational performance of his ship while still at seardquo says Bhattacharya

Creating the Customer-Centric

OrganizationFinding Your Customer-Critical Path

By David F GiannettoCEO

The Telos Group

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orders or demand projections The sales department courts potential buyers so that they become actual customers Once they do so sales then returns to identify new targets and tries to transition them Manufacturing works to refill shelves Engineering continues developing products

Employees throughout the organization are focused upon delivering the product or service for which they are responsible The product attributes become the value proposition that will appeal to their customer regardless of whether or not this is an internal or external customer Employees are trained to think in terms of product development delivery and value The organization becomes even if it doesnrsquot know it product centric Believing that a mainstream management theory such as the value chain approach could not be wrong or outdated management is comfortable with this view of their world When they try to become customer-centric they do not know how

Making the Change

Consider for example the electricity powering the light by which you are reading this article It is a fairly simple product that was mainstreamed decades ago and except for new types of power generation it has remained essentially unchanged The traditional value chain for this industry is fairly straightforward Power is generated by a complex and often dangerous power plant and it is delivered to the customer via a complicated and often dangerous network The customer then consumes this power and must pay for it creating the

need for back-office operations such as accounting finance and customer service

Given the complexity of power generation and delivery operations the organization is staffed by a high percentage of engineers many with doctorate degrees and years of specialized training The generation and delivery assets themselves are maintained by highly-trained highly-specialized workers A large percentage of the management team also comes from this background and rose through the ranks of organizations identically structured Combined these employees represent over 75 percent of the organization

Collectively these employees create a culture that is consistent in almost every power utility in the world Their cultures respect academic achievement technical expertise and years of experience in the industry They typically believe in rigid structures inflexible procedures and consistency in design and execution They are truly product focused

Given the potential hazards it is easy to see why they behave the way they do But what happens when this type of organization has to compete in a more open market when transparency is increased or when the customer such as a municipality has a stronger voice or is under the growing influence of being green What happens when the power company must become truly customer-centric

It is nearly impossible for them to succeed Seventy-five percent of the organization has little to do with or has little understanding of the customer

Departing from Tradition

While this product focus is exaggerated within a power utility largely because of their technical nature these factors affect nearly every organization Employees who have great influence within the organization will not yield it to those who have less but who understand the customer better Funding is unlikely to shift from traditionally respected areas to those areas that most affect the customer

For a power utility this means that engineers who have often dedicated their entire lives to the study of their work must be considered equal to project managers and customer service agents most of who do not hold any degrees Money resources and staffing must focus on project management and call center technology not just on million- or billion-dollar assets There must be recognition that these areas equally affect the customer This new perspective must be executed by executives who have spent their entire careers adhering to the traditional values of the product-centric culture But this shift is what customer-centric really means truly understanding and meeting your customersrsquo needs It starts with the customer more specifically it starts with a prospect

Customer-Critical Path

This means that the traditional value chain must be rethought and renamed more appropriately to the customer-critical path A prospect travels this path on their journey to become a customer a customer travels this path toward the goal of becoming a happy customer This is the true value chain of the organization ndash a string of processes that become critical because they directly affect your customer regardless of the product service organizational chart academic degree or bias Find the customer-critical path and you can guide your customers through your organization in the way that is most meaningful to both them and you

But not all customer needs are the same even within an industry that has only one real product like a power utility The customer-critical path may start in several places meeting the needs of

several different types of customers ndash household customers that simply need power turned on or major projects that require significant project management and pre-planning Eventually these starting paths merge It will occur at the point at which all customers are happy From there they may take a different path

again some will terminate service or have new needs There is not one value chain there are many paths a customer might travel through your organization

This new approach offers significant value for organizations that adopt it It allows them to better understand their customers so that they can be more effectively segmented and targeted by products or services This drives the bottom line in several ways A stronger value proposition increases appeal thus driving revenue Better service and customer interaction improve the customer experience and increase customer loyalty driving customer lifetime value

The customer-critical path also becomes a vital decision-making tool for management It provides a clear and unbiased perspective on where resources should and should not be spent It defines the relative worth of projects assets and expenditures painting a clear picture of what the results will be if the customer-critical path is not

properly maintained

And if your mission and vision statement says you are customer-centric it makes your strategic plan more than simple semantics It makes it actionable setting your organization on a path towards true differentiation and market leadership Properly crafted the customer-critical path becomes a pleasant stroll through the park for your customers and it can also become the most profitable path for your organization

David F Giannetto is CEO of The Telos Group co-author of The Performance Power Grid The Proven Method to Create and Sustain Superior

Organizational Performance (J Wiley amp Sons 2006) and a professor in the Executive MBA program of Rutgers University

Mr Giannetto can be reached by email at dgiannettotelosconsultingcom

34

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35

Vol 6 Issue 2 2009

I Introduction and Background

Who the NMDP is

The National Marrow Donor Programreg (NMDP) and Be The Match FoundationSM are non-profit organizations dedicated to creating an opportunity for all patients to receive the bone marrow or umbilical cord blood transplant they need when they need it Every year thousands of people of

all ages are diagnosed with leukemia and other life-threatening diseases Many of them will die unless they get a bone marrow or cord blood transplant from a matching donor Seventy percent of people do not have a matching donor in their family and depend on the Be The Match RegistrySM to find a match to save their life

The Beginning

When their 10-year-old daughter Laura was diagnosed with leukemia Robert Graves DVM and his wife Sherry were ready to do anything they could to save her They agreed to try a bone marrow transplant from an unrelated donor ndash the first ever for a leukemia patient Laura received her transplant in 1979 at the Fred Hutchinson Cancer Research Center The treatment gave her an extra year and a half of life

The National Bone Marrow

Donor Program

The Balanced ScorecardVision into

Action JourneyBy Howard Rohm

President amp CEO Balanced Scorecard Institute under the guidance of The National Marrow Donation

Programrsquos Michael Boo Chief Strategy Officerand John Rudrud Senior Analyst

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37

Vol 6 Issue 2 2009

The experience inspired Dr Graves to create a national registry of volunteers willing to donate marrow His early efforts brought together other patient families and transplant doctors spurring a federal mandate that led to the creation of the National Marrow Donor Program NMDP began connecting patients with unrelated donors in 1987 with a registry of just 10000 volunteers

What the NMDP Does

The Be The Match Registry has grown to more than seven million donors and over 150000 cord blood units the largest and most racially and ethnically diverse registry of its kind in the world Medical advances are making marrow and umbilical cord blood transplants available to more patients all the time Since 1987 NMDP has arranged for more than 35000 transplants to give patients a second chance at life Today NMDP facilitates more than 4300 transplants a year

Planning for the Future

Many more patients still need help In order to meet the needs of all patients NMDP will need to facilitate 10000 transplants per year by 2015 That is more than double the number of transplants the organization facilitates today NMDP is working to meet this need but canrsquot do it alone Efforts are sustained by

bull A global network of more than 490 leading hospitals blood centers cord blood banks and laboratories

bull Agreements with donor centers cooperative donor registries and cord blood banks worldwide through which the program provides patients access to more than 12 million donors and 300000 cord blood units

bull Continued support from the US government which has entrusted the NMDP to operate the CW Bill Young Cell Transplantation Program the federal program supporting bone marrow and cord blood donation and transplantation

bull Partnerships with corporations service organizations student groups faith-based communities and other organizations

A new and different way of thinking about the NMDPrsquos long-term strategy was required in order to make sure that NMDP would be capable of delivering 10000 transplants per year in 2015 ldquoBusiness as usualrdquo would not get the organization where it needed to be NMDP needed to identify and

aggressively improve in strategic areas critical to the delivery of 10000 transplants

II The Balanced Scorecard Approach

Background

The strategic planning system that had been used at NMDP up to 2007 was a fairly well-developed planning process that tracked initiative performance under seven primary areas of strategic focus While this approach provided a measure of strategic planning for the organization it was too focused on activities and projects rather than on impacts

Early in 2007 NMDP leaders Gordon Bryan Chief Financial Officer and Michael Boo Chief Strategy Officer began developing strategic metrics designed to identify measure and communicate progress in strategic plan objective areas

Selection

As the senior management team evaluated options to integrate broader strategic metrics with the existing strategic business plan the Balanced Scorecard approach emerged as a leading candidate during the initial assessment of planning models because it

bullEncourages development of strategic themes and provides the ability to focus on areas where long-term continuous improvement is needed

bullPermits identification of cause-and-effect relationships between Strategic Objectives within each Theme

bull Facilitates communication of Strategic Objectives that can be portrayed on a strategy map that is easily understood by all employees and stakeholders and shows how the perspectives work together to achieve the mission

bull Assures that the organization focuses on Strategic Objectives and Measures from a CustomerStakeholder perspective and a PeopleKnowledgeTechnology perspective (Historically the organizationrsquos focus was skewed toward the Process and Financial perspectives)

bull Enables leadership to track Strategic Objective performance over the long term rather than tracking the status of supporting projects and initiatives

bull Creates a framework for prioritization of projects initiatives and funding opportunities based on contribution to and support of the Strategic Objectives

bull Allows organizational Strategic Objectives to be cascaded into Department Objectives thereby giving each employee

a more specific understanding of how his or her work impacts and contributes to the Strategic Objectives

bull Drives long-term continuous improvement as Strategic Measures improve over time

bull Facilitates a ldquolearning organizationrdquo where corrective actions are implemented in cases where Strategic or Department Objective Measures are not being met

The NMDP planning team looked at a number of planning models ndash including Balanced Scorecard Six Sigma Lean and TQM ndash and concluded that the Balanced Scorecard approach provided the most versatile and relevant framework for future growth and organizational development

III Scorecard Development ndash NMDP Officer Input

Early to mid 2007 NMDP began the Balanced Scorecard development effort with the help of consultants from the Balanced Scorecard Institute

A comprehensive review of the organizationrsquos strengths weaknesses opportunities and threats organizational pains organization enablers vision and mission was conducted over several days with NMDP officers and senior management These sessions produced a new Mission and Vision Statement and four Strategic Themes (rather than the original seven)

The former mission statement Extend and improve life through innovative cellular transplant therapies was changed to We save lives through cellular transplantation ndash science service and support

ldquoThis new mission statement captures and communicates more directly why we exist and it clearly articulates the three ways that we are able to save livesrdquo explained NMDP CEO Dr Jeffrey Chell

The Overarching Strategic Result in place of a vision statement was developed and shared with employees throughout the organization Meeting the need for 10000 transplants per year by 2015 The senior management team developed a longer more descriptive version of this statement but felt that the shorter version had more impact

ldquoWersquove found that the Overarching Strategic Result has been a great tool to get people thinking about how we will manage

to do more than double our current transplant volumes in a relatively short time ndash just five years from nowrdquo explained initiative sponsor Michael Boo ldquoThis has driven a lot of creative thinking around how to dramatically improve the efficiencies and cost effectiveness of many internal systems and delivery processesrdquo

The four Strategic themes that the NMDP officer group developed and agreed upon are

bull Global Access and Acceptance ndash Getting to Yes Overcome non-cell source barriers to transplant (eg no insurance no transportation no post-transplant support)

bull Deliver Excellent Stakeholder Experience Overcome Cell Source Barriers (making sure a cell source donation is available when itrsquos needed ndash adult or cord)

bull Research Pursue research to improve cell transplantation as a therapy

bull Culture of Excellence Keep up-to-date with talent structure and resources needed to continually improve transplant services

IV Scorecard Development ndash Senior Management

Throughout the spring and summer of 2007 four Theme Teams comprised of senior management met to develop

Theme Team strategy maps that included Theme Objectives by Perspective and proposed Measures for each Theme Objective These served as detailed roadmaps with specific objective areas identified ndash where NMDP needed to focus in order to improve them

The four Theme Team maps were subsequently

combined into an NMDP Strategy Map that included all relevant components from each theme This NMDP Strategy Map is comprised of 13 Strategic Objectives 46 Strategic Measures and seven Strategic Initiatives

Narratives were captured regarding the intent and ultimate end state for each Strategic Objective and detailed descriptions were created for measurement information including rational frequency owner and unit of measure

At this stage in the process the team named the Balanced Scorecard tool ldquoVision into Actionrdquo or ViA ndash NMDPrsquos strategic Performance Management tool On June 1 2007 the ViA Themes and NMDP Strategy Map details were presented to the board of directors by senior management and approved along with a plan to proceed to the next phase of department cascading

A ViA Communications Team was formed to communicate ViA progress to employees on the development of the new Mission Statement Vision Statement and the 13 Strategic Objectives This was done through a combination of pulse checks newsletters

38

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39

Vol 6 Issue 2 2009

intranet messaging e-mails from the CEO leadership training all-staff meetings and promotional contests This was an extremely integral step in the ViA roll-out that provided transparency and generated excitement around the benefits of ViA

V ViA Department Cascading

All departments at the NMDP were scheduled for sessions to develop their department Objectives Measures and Initiatives These were facilitated by internal subject matter experts and included an initial two-day exercise to help the department identify where and how each department contributed to the NMDP Strategic Objectives Worksheets and other preparation material were provided to each participant and collected prior to the cascade session The pre-work information was used to expedite the affinity exercises at each session

These were followed up with sessions to finalize detailed measures with individual measure owners Department teams were comprised of five to 10 key members of each department

The department cascading efforts provided a number of primary benefits to the organization including

bull The articulation in easy-to-understand terms of how each department contributes to the overall success of the Strategic Objectives and ultimately the NMDP Mission

bull A tool to identify gaps or overlaps between departments that can also be a tool for departments to communicate with each other in terms of supporting initiatives

bull A tool for each department to prioritize initiatives and activities Also it provided a mechanism to support requests for funding new opportunities

bull A clear framework for corrective action where measures are not being successfully met

bull A common format and mechanism for reporting department performance to officers and senior management

bull A common format and mechanism for reporting and reviewing department performance with staff

bull Help with the development of individual job performance appraisal content ndash which should be designed to support Department Objectives

Department Cascading was complete in early 2009 There are over 200 separate department measures that are tracked each quarter

VI NMDP ViA Today

NMDP has established a department Champions Council Members of the Council are becoming experts at using the automated ViA software Today this is being used at department staff meetings to facilitate discussion around corrective action for underperforming or unacceptable Department Measures Departments use the department Strategy Maps to guide staff meeting discussions on performance measures and corrective action plans

ldquoAll business cases or requests for funding must be submitted with clear tangible descriptions of how the effort will impact ViA Strategic Objectivesrdquo explained Boo ldquoOnce all business cases have been submitted to the officer group for final approval they are prioritized in order of their impact on ViA Strategic Objectivesrdquo

All strategic and department measures are required to be reported into the ViA system each quarter Each is color coded based on an officer-approved target matrix Each measure owner is required to provide comments regarding the measure performance for the quarter and discuss how he or she expects the measure to end the fiscal year This information is shared with senior management for review and follow-up with measure owners ifwhen necessary

Senior management uses the color-coded NMDP Strategic Map as a basis for discussing quarterly performance and identifying

Strategic Objective areas that may need attention corrective action andor more resources NMDP tries to focus not only on corrective action items but also highlight success stories where outstanding performance has been reported

All employees will soon have access to the web-based ViA application to provide as much transparency and visibility as possible in order to become a truly strategy-focused organization

ldquoVision into Action has been successful within the organization to a great extent because of the consistent support and guidance provided by NMDP leadership including our CEO Dr Jeffrey Chell my fellow Officers and the Board of Directorsrdquo said Boo

Howard Rohm President and CEO of the Balanced Scorecard Institute is a Performance Management trainer consultant and technologist with over 40 years experience Mr Rohm has helped dozens of organizations worldwide build Balanced Scorecard and other performance planning and management systems

48

Pe

rform

Mag

azine

Info

rmatio

n in

Actio

n

A community for BIRT users and developers sponsored by Actuate

A Report Writing Portal lets your end users browse reports modify them and even develop

new ones You can set one up in three steps when you use AJAX-based BIRT technology

Because the end user tools to modify and create reports are AJAX-based therersquos no desktop

software to install Users get the reports they need quicker while the burden on development

resources to create new reports is reduced

BIRT Exchange is a community site that offers the broadest collection of resources for the Eclipse BIRT (Business Intelligence

and Reporting Tools) project and for integrating spreadsheets with Java The site is sponsored by Actuate a co-leader of the BIRT project

Sponsored by

See a Demo

at Booth

602

For More Information

Contact us by phone at 1-800-884-8665

1-913-851-5300 from outside of the United States

wwwbirt-exchangecom wwwactuatecom

40

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41

Vol 6 Issue 2 2009

JCIrsquos previous approach of one-off negotiating as well as its spirit of continuous improvement and customer focus meant that it had only one-off measures in every location The company for example had 127 variations of the measure lsquomaintenance managementrsquo Many were very similar but since they were not exactly the same they could not be compared effectively Inefficiency at gathering and maintaining data at different locations across the globe made the task difficult as well Data was collected any way possible thrown into a cell or a Power Point slide and handed in at the end of the month It was highly inefficient extremely customized at every location and did not allow any ability to benchmark compare or look at best practices These concerns and requirements drove JCI on its scorecarding journey

The Solution

In initiating its scorecarding solution JCI first had to establish the right measures Business leaders were chosen for all of the scorecard categories and for each of them a business owner was selected for each region these business leaders and owners were responsible for defining the standards and measures Data collection systems in some cases proved difficult there wasnrsquot always centralized information available ndash in some cases data needed to be gathered right down at the account level This meant that the process of data collection and identifying measures was a significant job To get started though JCIrsquos web programmers were able to put up some scorecards quickly to allow the company to start architecting measures this allowed business leaders across the globe to start identifying their measures and to put the processes in place regionally to collect information

Before committing to a technology JCI wanted to know 100 percent of their business requirements and this was the point of their web-based scorecard To assist in this endeavor Actuate ndash prior to selection ndash let the company test drive their product The JCI team went through and looked at every single screen determining where they had to configure the tool and for every single screen they also made what they called a lsquoblueprintrsquo creating an Excel template with fields to correspond with every field on each screen It was incredibly detailed work but they wanted to ensure no mistakes were made and that the business requirements were defined To accomplish this there was an extreme amount of detailed coordination globally with twice-weekly meetings for the worldwide team in charge of the initiative A byproduct of the process was that the team learned to use the Actuate BIRT Performance Scorecard and basically built all of the blueprints for the project design

JCIrsquos audience for the project upon kick off were the 300 external customers that would have access to this information Customers previous to this were getting their information via Excel and PowerPoint In addition to these external customers was the population of approximately 1000 internal users within JCI itself These included account leaders and functional leaders including those from HR Finance Safety etc

Three primary functions of the project were

1 To replace the PowerPoint slides used in global and regional monthly internal operational reviews

2 To very quickly be able to become best in class JCI wanted everyone who had an account to be able to see where they sat compared to their peers This provided individuals ndash when faced with a problem ndash the ability to quickly identify and contact others who had solved the same issue

3 To standardize customer faith in contractually required performance measures This was a key goal of the company which felt that if they were going to benchmark and compare they needed to bring in the best practices learned at one location to their work at other locations

These three primary functions were heavily loaded in JCIrsquos rating system as the company set out to choose the right software for their scorecarding project It was also important that the software be intuitive as there was no time for hundreds of hours of global-wide training The software had to be rapid and easily configurable with limited IT assistance As JCI is a very large organization with a lot of systems in place the team in charge also wanted the software to be easily adjustable to the companyrsquos rapidly changing business they didnrsquot want to have to get into queue for IT every time a change had to be introduced or a new customer added

JCI Chooses ActuateFour vendors were evaluated for JCIrsquos scorecarding project with a global team in place to provide a systematic discussion of the defined business process and requirements The product chosen was the BIRT Performance Scorecard JCI had 30 days of Actuate Professional Services and planned for monthly micro improvements and quarterly macro improvements

Upon purchasing the BIRT Scorecard in January 2007 using the blueprints theyrsquod established already the company wrote their business processes They were able to go live in 90 days helped by the homework they did with the blueprints the web scorecard and the data collection processes It was an incredibly smooth implementation overall

The Results

Whereas JCI originally started out with a model of one-off negotiations with customer measures the scorecarding project has led to approximately 70 percent agreement on JCI standard metrics The company does a customer satisfaction survey both annually and quarterly and aims to demonstrate evidence towards continual improvement

Since implementation of the project the company has also been solving its data integrity issues Previously two regions might have been using the same words but not the same data collection methods ndash this made it impossible to introduce benchmarking and comparison between areas Now those problems are being solved and benchmarking and comparison are possible to the benefit of both JCI as it strives for best-in-class status and its customers

By David F GiannettoCEOThe Telos Group

Johnson Controls Incorporated (JCI) is a $38 billion company with a total of 140000 employees working out of more than 1300 locations in 125 countries worldwide Headquartered in Milwaukee Wisconsin the company provides a range of services including

real-estate portfolio management property management facility management and design and construction services

To initiate its scorecarding project JCI began by creating five categories of measurement Business Performance (this includes all financial measures) Service Delivery Customer Satisfaction Safety and People While the other four categories may be typical to most organizations the Service Delivery category was designed to take JCIrsquos measurements down to the client-site level which includes over 300 locations globally where the company has contracts In some cases there might be one staff member assigned to manage a single building while other times a staff member has a whole portfolio they maintain Measuring performance at all of these locations and levels proved a complex undertaking

Strategic Initiatives

Like all service providers JCI has to demonstrate that they add value Scorecarding allows them to do this both internally

and externally using data-driven results Since JCI has always been very much a data-driven organization anyway with a manufacturing background this was a natural fit for the corporation

JCIrsquos organization-wide motto is to be as good everywhere as they are somewhere Theyrsquove found that in any one account they may excel in several areas but perhaps not in all areas elsewhere though on another account someone else might have the skills needed to fill in those gaps The companyrsquos goal was to share information and communicate it between different locations across the globe allowing the company as a whole to get better faster and to benefit from the skills and strengths of its individual members Scorecarding was introduced as a way to help share this information and to introduce benchmarking within the company

The Requirements

To get started on their scorecarding initiative JCI examined each of their US contracts What they found was that there were no standards between clients and therefore no ability to benchmark Customers though wanted the ability to find out how they stood in relation to other customers This was impossible under the circumstances

Global Operational Excellence and a Performance Scorecard System A Case Study of

Johnson Controls Incorporated

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Vol 6 Issue 2 2009

Out of Touch With Crucial Data

Previously when Helzbergrsquos divisional and regional vice presidents went on the road access to their key performance metrics was restricted Without a laptop and a WiFi or hotel network connection to the internet they were ldquoflying blindrdquo according to Greg Backhus Helzbergrsquos Director of Data Warehouse and Decision Support Systems As a result they did a lot of faxing it was the only way they could get the current data that they needed in order to

About Webalo

Webalo technology transforms enterprise applications and data to make them compatible with mobile

devices This eliminates the need for traditional custom programming reducing the deployment of mobile applications from weeks or months to in most cases less than a day The resulting ldquoanywhere anytime on-demandrdquo availability of enterprise data on handheld devices turns such devices into viable alternatives to desktop laptop and palmtop computer hardware and lets mobile employees work more productively ndash on the spot ndash to solve problems answer questions monitor operations close sales and make informed decisions

The Webalo Mobile Dashboard Service ndash available in both internet-based and enterprise intranet-based implementations ndash lets non-IT business administrators securely specify the content of mobile-accessible information and the companion Webalo Proxy Server configures it in seconds to conform to the native user interface of any BlackBerry Windows Mobile Pocket PC Palm Symbian or Java-enabled smartphone

CLARITY CUT AND CARATSHow Helzberg Diamonds Made Sales Data Clearer Eliminated

Delays and Lightened the Load for its Divisional Executives

A diamond may be forever but a lot has changed in how theyrsquove been marketed and sold during Helzberg Diamondsrsquo nine decades in business A single store has expanded to nearly 300 locations from coast to coast and border to border Sales can also be made online now And information about every sale can be accessed in an instance through the companyrsquos enterprise systems

bull Compare actual sales to their goals and plans

bull Determine transaction counts for total dollar volume and average sales value

bull Break down sales by product category

bull Monitor attachment rates for products and services related to the main product sale

For example onsite at individual stores it was difficult to gauge how an active price-reduction sale was affecting unit and dollar

volumes unless there happened to be a coffee shop next door with a WiFi connection that would let Helzbergrsquos executives access the enterprise system

The Three Cs of Information Access

The three Cs of diamond grading ndash clarity cut and carats (or weight) ndash turned out to be applicable to data access as well But it took a transition to handheld devices and to the Webalo Mobile Dashboard to achieve it

Though laptop computers had gotten lighter and lighter over the years they were still considerably heavier than the Pocket PC-based smartphones that Helzbergrsquos executives used Since they were carrying those handhelds in addition to their laptops the VPs were open to the idea of being able to

bull Access sales metrics on their handhelds

bull Have data available on-demand from any location with a wireless signal

bull Navigate quickly to the figures they needed

bull Get updates to their metrics automatically

bull Review the information offline

It was the only time that carrying less weight ndash or carats ndash added more value Using a simple step-by-step wizard Helzbergrsquos support staff was able to configure their enterprise reports in a matter of hours They then assigned access privileges to each executive to control who could see what information and uploaded the file to the Webalo server That satisfied how data was ldquocutrdquo

For each mobile user regardless of the brand and model of smartphone they used the Webalo Mobile Dashboard conformed the information to the devicesrsquo user interface The application worked and looked exactly like any other application developed specifically for their mobile devices the on-screen text was easy to read and navigation used the same menu structure That meant there was no learning curve to delay user acceptance and productivity Clarity was essential and the Mobile Dashboard delivered it right down to the ability to bookmark commonly-referred-to displays for instant reference enhancing on-the-spot productivity even more

Speed and Simplicity

Productivity was also improved on the IT side Without the need for custom programming to conform the information to each smartphone brand and model deployment was reduced from months to hours

Since adopting the Webalo Mobile Dashboard Backhus says ldquoThe Divisional VPs find it invaluable They get more done because they donrsquot have the delays they used to haverdquo Decisions that used to have to wait for current data are now made right away relying on the right data presented in the right format

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Vol 6 Issue 2 2009

Sustainable practice has graduated from being market hype

to becoming a strategic initiative important for driving a successful enterprise It not only reduces a companyrsquos impact on the environment but can help organizations achieve a competitive advantage to build their brand impact top and bottom line and improve customer acquisition satisfaction and retention

Creating a road map towards sustainable management can require an entire shift in corporate thinking one that involves searching for buy-in at all levels establishing useful metrics and introducing practices that get beyond the green hype The end result though is not just a greener organization but also one with a more prosperous future

Why Sustainability

In August 2008 a survey undertaken by CIO Insight examined green practices in business focusing on the reasons why CIOs introduce sustainability efforts into their organizations The number one reason why organizations went green the study found was that the people within those companies sincerely had a concern for the environment A total of 74 percent of respondents answered that way 32 percent of which listed it as their most influential driver

Other influential drivers named in the survey included

Financial Drivers Companies found sustainability to be a way of cutting costs If they could cut energy costs not only would that help the environment but it would also help create cost savings The second most popular answer in the CIO Insight study financial impacts are key to implementing sustainability in most organizations Examples of financial impacts possible from sustainability were presented at CFO

2 The CFO Green

Conference which took place in May 2008

bull Dupont reduced its CO2 emissions by 70 percent saving the company $3 billion

bull FedEx redesigned its delivery trucks making them more aerodynamic This reduced the amount of particulate pollutants nitrogen and carbon the trucks put into the atmosphere and it also reduced the companyrsquos fuel costs exceptionally

Customer Image In the CIO Insight survey the third motive listed by CIOs for introducing sustainability ndash at 64 percent ndash was company image Consumers are becoming more and more aware of whether companies or organizations are living up to sustainability ideals They will notice if a company image or brand value reflects this concern for the environment Meaningful sustainability efforts can help gain customer approval as in the following case

bull Wal-Mart and Procter amp Gamble together agreed to sell liquid laundry detergent only in concentrated form This saved shelf space for Wal-Mart reduced water use by 400 million gallons for Procter amp Gamble and eliminated 45 million pounds of plastic waste

Regulatory Requirements The surveyrsquos fourth most popular reply ndash at only 25 percent ndash were current or potential regulations including the cap and trade systems being implemented which will require companies to buy carbon and sell carbon credits

Shareholder Pressure Finally at fifth in the CIO Insight survey ndash with 14 percent of responses ndash was shareholder or public pressure pressure building from shareholders to put forth sustainability efforts Pressure at this level is often mixed though as shareholders are also likely to express a desire that they donrsquot want shares to decline in value The general message may be that it is fine to introduce sustainability measures only as long as there is no risk that they will hurt the company

A Road Map Towards Sustainability

Step 1 Identify What Drives Your Organization

The first step in the road map towards sustainability is identifying key drivers Some drivers vary from one organization to another while others seem to drive any organization regardless of the industry Drivers incude

Internal drivers

bull Cost cuttings and savings

bull Employees including both the satisfaction of current employees as well as the recruitment and retention of future employees

bull Investment

External Drivers

bull Stakeholders including both those within the company ndash the employees discussed above ndash as well as stakeholders outside of the company

bull Brand awareness because consumers are becoming increasingly aware of the choices that are available to them and are making choices based on a companyrsquos green initiatives

Future drivers

bull Tax incentives

bull The recruitment and retention of future customers

Step 2 Select Your Metrics

In general terms sustainability metrics will fall into one of four major categories those that affect the climate those that affect the oceans those that affect human health and those that affect common issues like the land the water the wildlife etc

Within those large categories are smaller areas of interest that companies must examine to introduce organization-wide sustainability management carbon monoxide use energy consumption water consumption and fuel consumption are prime examples

Carbon Monoxide Use Many of the questions companies are asking themselves in regards to carbon monoxide use include

A Road Map of Key

Sustainability Metrics

That Impact Bottom

Line

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Vol 6 Issue 2 2009

bull How much carbon monoxide do we produce

bull Which processes in our overall manufacturing or delivery use produce the most emissions

bull Can we determine the indirect emissions For example leave a computer plugged in and itrsquos still on the grid creating an indirect carbon dioxide emitter How can we measure that

bull Whatrsquos our cost Do we have metrics that tell us what our CO2 emissions cost us

bull Can we predict into the future If we continue on this path without doing anything where will we be next month Next quarter Next year

Some examples of metrics related to carbon monoxide use include carbon dioxide emissions per employee (similar to revenue per employee) carbon footprint metrics and transportation distances

Energy Consumption Areas of interest related to corporate energy consumption may include the following

bull How much do we consume From what sources

bull Are we on the grid Are we using solar power or wind power or another alternative power

bull How much is used by our data center How do we make the data center greener

bull Where can we reduce consumption

Companies today are reducing energy consumption in a variety of ways by introducing energy audits and looking at energy-saving appliances and also through energy incentive programs for employees within which companies can incentivize and introduce bonus plans

Water Consumption An examination of a companyrsquos water consumption may include some of the following queries

bull How much water do we currently use and where

bull Where in our processes do we use the most water

bull Can we predict how much wersquore going to use in the future

Some of the examples of metrics that companies introduce in terms of water consumption include improved water quality how much impact low-flow or low-volume toilets have on water consumption and how much water is or can be recycled

Fuel Consumption Questions to consider in relation to fuel consumption include

bull How much fuel do we use

bull Where are the inefficiencies

bull Whatrsquos being predicted for fuel usage in the future

bull Can we analyze our logistics so that we can determine how to reduce our fuel consumption For example where are our trucks traveling How are they traveling What kinds of loads are they carrying

Step 3 Recognize Challenges

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly As such easier ways to enhance communication and to increase visibility need to be introduced both inside and outside of an organization

There are also constantly evolving requirements measures and standards of success With everything so new companies are challenged to find ways to compare their sustainability efforts with other organizations The biggest challenge in implementing these processes or attracting metrics may be that they require an entire shift in thinking Additional challenges that exist in the implementation of a sustainability model include

1 Financial concerns Companies must truly see potential for returns on investment or these initiatives can become non-starters or stall

2 Lack of regulatory motivation While not as common as it once was certain organizations arenrsquot motivated to introduce sustainability until government regulations are in place

3 Lack of a formal strategy for sustainability Without a formal strategy it is difficult for companies to determine where they need to go

4 Determining appropriate metrics Companies must choose metrics that are useful demonstrate impact and say something about their own corporate environment

5 Calculating metrics Standard algorithms and calculations exist to calculate metrics but companies must find the appropriate ones and use them

6 Finding quality data to plug into those calculations As in any Business Intelligence project if the quality of the data is questionable then so are the sustainability metrics themselves

7 Determining the scope of the sustainability project The scope is critical Narrow it down to something achievable feasible and useful

Step 4 Learn from Best Practices

What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde

bull Assign an executive champion Without an executive champion to drive the project initiatives are more likely to lack a holistic view and a clear vision for an implementation strategy they may take longer to implement and theyrsquore less likely to yield the required results To provide motivation consider linking the championrsquos salary directly to sustainability savings or to the increased revenues that result from sustainability efforts

bull Implement internal training and education Educate employees on what to expect and what is expected from them

bull Improve communication Communicate both to employees and to stakeholders outside of the organization

bull Start to think about alternative energy management and control strategies

bull Engage the use of technology and services For companies not sure where to begin a sustainability consultant can assist with program selection as can vendors such as Actuate which has a sustainability management solution in place

Step 5 Get Started

Understand that sustainability development is a business opportunity Donrsquot look at it solely as environmental although that is also important Itrsquos an opportunity for companies to introduce more cost-effective processes and procedures and to become more cost effective in their vehicle fleet manufacturing delivery etc

bull Create globally consistent metrics and goals Large agencies have to make sure that the entire group is on board and that they have consistent metrics and consistent goals across the enterprise

bull Find the value and drive the action What is the value of monitoring these sustainability areas and whatrsquos the course of action if you see that theyrsquore going off kilter or are not tracking as expected

bull Start small Initiatives such as these can become incredibly complex very quickly Start small and build in the complexity with each ensuing project

bull Get buy in People need to understand what the metrics are why theyrsquore there and what they mean to each individualrsquos situation (as reflected in individual bonus plans perhaps) Measure using industry-accepted methodologies and industry-accepted protocols continually improve metrics through optimization and forecasting and constantly optimize metrics and forecast into the future

bull As much as possible accurately report to everybody environmental performance Let employees shareholders customers and regulators know If data is questionable fix it get quality processes in place and then run the metrics

bull Determine environmental impact Has waste been reduced Has resource utilization been reduced Has the company improved environmental factors

Also consider using an Open Source vendor The Open Source community is beginning to develop sustainability metrics and Open Source reduces the costs of developing metrics while software costs for the project are reduced as well

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly ldquo

rdquo What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde ldquo

rdquo

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Step 6 Move from Green Hype to Sustainable Action

A successful sustainability initiative involves identifying metrics that will translate into cost savings and benefits while avoiding metrics that are not likely to yield required results To accomplish this start small start with a small department within the organization and then repeat this continuing to repeat it throughout the enterprise

bull Start with basic conservation Change behavior reduce consumption and in the process increase investment

bull Start reusing Improve productivity improve efficiency and create less waste

bull When this translates into cost savings re-invest Grow make larger improvements and increase involvement

Projects that make good starting points

bull Measure carbon dioxide emissions throughout a value chain or product lifespan Look for potential improvements

bull Ensure regulatory compliance By knowing what the regulations are companies can determine what metrics need to be in place

bull Identify ways to promote and profit from more environmentally-respectful goods and services Companies can promote environmentally-respectful goods and services while also using sustainability to help the company

Monitor the effects of each project to determine which strategies have the most impact both physically in terms of

the environment and financially in terms of revenues and cost savings Publicize how metrics are tracking over time

Actuate for Sustainability Management

Actuate for Sustainability Management is a solution by Actuate that integrates highly interactive visually rich dashboards There are pre-built sustainability scorecards strategy maps and over 100 pre-built metrics across the economic social and environmental aspects of sustainability

The Actuate BIRT Performance Scorecard supports the metrics defined including

bull Reducing an organizationrsquos environmental footprint

bull Building green facilities and buildings

bull Compliance and reporting

bull Manufacturing

bull Community and engagement

bull Human development including employee well-being and satisfaction

Actuate for Sustainability Management provides collaboration across regulators consumers and non-governmental organizations Dashboards and scorecards come integrated with reporting so as to improve reporting to stakeholders both outside and inside of an organization All of the products are built on Actuatersquos dependable cost-effective and scaleable platform

Performance Management solutions help organizations understand act on and influence business decisions processes and measures of business success The 2009 Actuate Performance Management Excellence Awards will honor customer success stories in four key areas Over the next several issues Perform Magazine will highlight some of the entries in these categories

Category 1 Go Green

Each year the concept of environmental responsibility has implications for both the private and public sector specifically with regards to how each measures the performance of their operations For organizations using the Actuate BIRT Performance Scorecard to measure the progress of organizational Green initiatives how have they responded to the challenge and how do they use the BIRT Performance Scorecard to ensure they stay on track

Category 2 The Perfect Slice

Successful Performance Management comes in all sizes Some initiatives are enterprise-wide while others are focused around specific business units or functions yet still encompass a holistic approach to Performance Management by looking beyond financial indicators to a more balanced set of indicators This category includes organizations deploying the Actuate BIRT Performance Scorecard with a focus on improving the performance of individual business units or functions and includes the measurement of people and processes

Category 3 Big Bang

Carefully executed Performance Management initiatives begin with a measured approach to the initial implementation and quickly expand to other parts of the organization aligning business units to strategy at each step This category is open to Actuate customers who initially implemented the Actuate BIRT Performance Scorecard to a limited user community and through careful change management and planning expanded the use of the BIRT Performance Scorecard throughout the organization

Category 4 Super Size

Award-winning enterprises achieve breakthrough results in the financial customer operational and people perspectives of their business and leverage internal champions across the organization to ensure ongoing and sustainable success The key to achieving these results lies in total visibility of all business units aligned to strategy This category is open to any Actuate customer with a fully deployed enterprise-wide Actuate BIRT Performance Scorecard implementation

Actuate Performance Management Excellence Awards2009

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HealthNow New York Inc headquartered in Buffalo is one of New York Statersquos leading healthcare companies doing business as BlueCross BlueShield of Western New York BlueShield of Northeastern New York HealthNow in the Central New York region and Brokerage Concepts Inc in Pennsylvania

Improving the health of people and communities are HealthNowrsquos corporate priorities and for more than 70 years the company has been a proactive partner in health working to improve the quality of care and the quality of life for everyone it serves In 2008 HealthNow provided access to care to more than 820000 members and in 2008 company revenues grew to $227 billion

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution and describe what you were trying to achieve as a group function or department

A few years ago HealthNow New York Inc determined that the key to its continued success would be its ability to differentiate itself from other healthcare plans in ways that could not be readily duplicated or copied by their competitors In an increasingly crowded marketplace to get the attention of new customers and retain existing ones HealthNow needed to set itself apart from others

This lasting competitive advantage needed to come from an organizational culture that was dedicated to a relentless focus on meeting customersrsquo needs It needed to be highly responsive supportive flexible and nimble particularly as the healthcare marketplace continues to change with more responsibility placed upon its customers

To that end a new business model was implemented to provide the framework for customer focus Under the new structure the company was divided into four strategic business units (SBUs) each responsible for financial contribution customer satisfaction medical utilization and market share of a specific book of business

Each SBU includes its own set of functions including sales account and broker management product configuration customer intelligence pricing enrollment and billing customer service medical management and HR support Each business unit is led by an executive who is fully accountable for the unit operations and for bottom-line performance of the entire business unit Each SBU is supported by various corporate support functions (Actuarial IT Legal etc)

Implementation of the new business model began with a reorganization of the senior management structure The senior management of each SBU has specific incentive goals as well as strategic goals aligned with the corporate incentive Those strategic goals then drill down to ldquoteamrdquo incentives and to a blend of strategic and operational goals

This was a completely new way of looking at our business It was a blank slate requiring new processes and new methodology as well as an examination of existing metrics and processes to determine what added value and where the strengths weaknesses opportunities and gaps were

Under this new structure the Government Programs State and Federal products SBU ndash which historically had some inefficient end-to-end processes lacked internal controls and had minimal oversight of financial performance ndash was able to set a foundation and develop a growth strategy In order to achieve this mission and to align track monitor improve and communicate performance the Senior Vice President of the Government Programs SBU elected to utilize a Performance Management framework via the Actuate BIRT Performance Scorecard

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

As a point of reference the Government Programs SBU is comprised of a State Government Programs team a Federal Government Programs team an Operations team and a Sales team The Performance Management design team was comprised of the Actuate system administratorfacilitator the Government Program financial reporting manager and two SBU data analysts Input from the various teamsrsquo management staff was gathered as the design got more granular

Discussions around the design of the Government Programs scorecard began with two basic questions

1 What are the handful (ideally six to eight) of key performance indicators that are necessary to run and manage your business and to indicate that yoursquore on the right path to achieving your goals

Defining the key performance indicators was a challenge that required the Actuate system administrator in a facilitative role to get intimately involved in order to keep the discussions focused and high level and to limit scope creep The incentive goals were clearly defined at the corporate and SBU level however the tough question was how should they drill down in the BIRT Performance Scorecard The facilitator posed the following questions to the other members of the design team

bull How do you usually look at your business

bull How are the primary source documents that capture this information structured

bull What other ways do you look at your business

Taking the answers to these questions a step further the facilitator asked the next question Is the drill-down structure the same for the core strategic or team metrics The answer was yes By taking this approach we were provided with consistency in how the teams look at their business and the performance of their core indicators

Once the incentive and strategic goals were identified more leading and lagging operational measures were defined such as

bull Call centers

bull Accuracy

bull Quality

bull Sales Performance

2 Who is your audience

Through the entire measure selection and definition process the design team was constantly reminded to keep a second question ndash who is your audience ndash in mind This helped keep the focus on the critical few and keep the number of metrics down to a manageable amount Links to supporting documentation were created to provide easy access to the granular data without burdening the scorecardrsquos objective

The audience in this case was the SBUrsquos Senior Vice President followed by the State Director Federal Director Operations Director and Sales General Manager It then cascades down to each directorrsquos management team and the data providers

In order to provide a complete and consistent picture of State and Federal performance for senior management where

gt Performance Management Excellence Awards

HealthNow New YorkCategory 2 Entry The Perfect Slice

gt Performance Management Excellence Awards

[ Figure 131 Homepage Map ]

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Vol 6 Issue 2 2009

possible the same or comparable measures were created for each team For example when looking at the various call center metrics ndash even if the definitions and targets slightly differed ndash if one team was consistently exceeding or meeting their target it sparked group discussion around best practices processes staffing and target definition

Utilization of Maps continues to play a major role in communicating performance Again focusing on our audience there is a Map at the Senior VP level which then links to a high-level Map for the State director and staff and for the Federal director and staff The one-page snapshot allows management to easily view performance then to drill down to specifics via additional detailed Maps or Books Because the audience embraces the Maps concept a ldquoWhere is itrdquo Map containing all Maps and Books by SBU was created Itrsquos a quick and easy reference tool

3 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

Quantitative results are achieved through the promotion of visibility and awareness The Return on Investment may not fit a conventional definition but can be measurable and accomplished by challenging the data targets and accompanying commentaryaction plan narrative to drive performance improvement Are the targets realistic yet aggressive Are action plans being documented and carried out Are the actions discussions and decisions leading to improved performance and processes

Government Programsrsquo membership is measured and monitored in various ways via the BIRT Scorecard and other sources For example Federal membership is measured by product then by plan It is also measured by market then by product then by plan By creatively visualizing performance in multiple ways via a Map those same data results can sometimes become very obvious telling a different story that may not be obvious via standard reporting methods It may clearly illustrate that a specific product in a specific market is continuously under-performing for example Fact-based decisions can then be made as to whether or not to continue with this product in this market or it may initiate discussions as to how to grow and retain profitable membership for this product in this market

Another more recent example is an initiative to track claims-review savings By reviewing claims via various processes what savings can be recouped or realized What specific areas are State and Federal teams focusing on that can contribute to overall savings for the SBU Again where applicable there should be consistency in the metrics across

teams Placeholders are included to promote visibility to keep them in the forefront even though the data or processes may not be in place yet But by capturing results on one page via a Map it bridges potential gaps between the teams promoting awareness and synergy across the SBU

4 Qualitative results What ldquosoftrdquo or intangible benefits has the group department or organization received as a result of this solution

A major benefit of the scorecard framework for the Government Programs SBU has been the identification and alignment of roles responsibilities and accountability

The SBUrsquos Senior VP monthly leadership meeting focuses on four areas

bull Performance Performance is covered via the existing incentive strategic and operational metrics

bull Action plans Documenting action plans in the Performance Management Software Suite versus verbalizing action plans establishes ownership and accountability At subsequent meetings management follows up on key action items or plans to determine whether or not the corrective action did take place and if yes did it have the desired results

bull Strategic direction The strategic direction of the various teams is captured as a springboard to strategic thinking discussions and planning So as not to lose sight of short- and long-term strategic planning this aspect of the business now is housed in the BIRT Scorecard completing the strategic planning of the ldquoHow are we going to get thererdquo and ldquoAre we there yetrdquo cycle This holistic approach helps minimize the chances of our scorecard becoming too focused on operational performance and keeps strategic planning dynamic and visible

The value of these metrics is not in the data but in the commentary The individual teamsrsquo strategic direction ldquometricsrdquo are subjective red = 1 yellow = 2 green = 3 The target = 3 Each metric includes a description of the specific strategic path we need to research or move forward on as well as what goal achievement it supports The ldquodatardquo ndash or color ndash is based on basic questions like What did you hope to achieve this month vs What did you actually achieve this month Were there any successes barriers obstacles In addition to accountability the entire SBU benefits from the sharing of information having meaningful discussion taking appropriate action and collaboration

bull Key initiatives The last critical component is the identification and alignment of key initiatives that

are necessary to support achievement of the various incentives strategic goals and direction and operational goals As with the strategic direction metrics the value is in the narrative with the color reflecting what was accomplished for the specific reporting period

5 Innovation Why should this solution be considered an Innovative Solution What makes it unique groundbreaking and superior What unintended results did you realize

Over time the Government Programs Performance Management framework evolved into an innovative solution The process drives performance and isnrsquot necessarily focused on ldquocolorrdquo Rather itrsquos about having the right people in the same room on a regular basis to drive meaningful discussion and to take appropriate action to improve performance

Outside of the standard processes it was the monthly review process that drove effectiveness revisions enhancements and restructuring of the meeting schedule agenda and format The Government Program financial reporting manager would meet with each director and general manager to review their scorecard for completeness as well as for performance from an operational perspective The State and Federal team directors would then meet with their respective management teams to review and discuss performance results in preparation for the joint Government Programs Leadership Meetings The audience included the Senior VP down to team managers key data analysts (data providers) and support function representatives Through trial and error management learned to maximize their time and effectiveness by concentrating on key metrics and topics rather than trying to review all metrics identify leading indicators versus only outcome results and include strategic thinking and initiatives Today the monthly leadership

meetings are much more productive and look at strategic and operational performance

As involvement and participation increased in the team meetings as well as in the leadership meetings it removed silos opened communications enabled the sharing of information and best practices and promoted teamwork across the SBU But most importantly it brought about an awareness and a sense of unity and commitment within the SBU to achieve their goals something that was lacking before

While it was not part of the initial scope management realized shortly after implementation that efficiencies could be gained by replacing an in-depth hard copy monthly report with BIRT-generated results Since the BIRT Scorecard contained the same data with supporting narrative ndash plus additional metrics with narrative ndash monthly performance was captured via a monthly report Book various Maps and BIRT-generated reports Elimination of the hard-copy report was an unintended way of encouraging a more active use of the Performance Management software by management to monitor performance thereby increasing user familiarity with the contents features functionality and navigation

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

Sustainability is achieved through a continuous process of revisiting the scorecard when there are organizational changes looking at the business direction shifts goal changes process changes etc To ensure that metrics are still relevant a filtering process is held with each director and general manager every six to eight months or as necessary During this exercise questions such as the following are asked

gt Performance Management Excellence Awards gt Performance Management Excellence Awards

[ Figure 132 CEOrsquos Book ]

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Vol 6 Issue 2 2009

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

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3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

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  1. Button 3
Page 9: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

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Vol 6 Issue 2 2009

finding an appropriate solution and in December 2007 chose the Actuate BIRT Performance Scorecard as its Balanced Scorecard solution

The software was customized in-house to the divisionrsquos needs and implemented across levels and locations The major challenges overcome during implementation were

bull Complexity of location structure and measures structure This sophistication and flexibility was a requirement to ensure the integrity and correct aggregation of the data and needed to be incorporated into the overall system

bull Aggregation of financial performance data from different countries in different currencies Led by the local support team and Actuate partner EU Partners a currency conversion facility was created to overcome this hurdle

bull Software access through smart client route at project sites A weak internet connection problem was resolved by Actuate Customer Support which installed the clientrsquos executable file on the local PC An Excel import and export tool is used for data updates to the system

About VoltasElectrical Mechanical amp HVAC Solutions (International) is part of Voltasrsquo Electro-Mechanical Projects amp Services cluster Established in 1978 as Voltas International Limited (a wholly-owned subsidiary of Voltas Limited) to handle international business interests the business looks after core business activities in the Mechanical Electrical amp Public Works (MEP) project areas specifically turnkey projects in

bull Electro-mechanical works comprising electrical building services HVAC (heating ventilation amp air conditioning) plumbing public health fire fighting ELV amp specialized systems

bull Electrical power projects

Voltas Limited a TATA enterprise offers engineering solutions for a wide spectrum of industries in areas such as heating ventilation and air conditioning refrigeration electro-mechanical projects textile machinery machine tools mining and construction equipment materials handling water management building management systems indoor air quality and chemicals EMD is one of four independent business-specific clusters within Voltas Ltd each with its own facilities for market coverage and service to customers

All of the above challenges were addressed easily to match the companyrsquos needs thanks to the versatility and customizable features in the BIRT Performance Scorecard

The initial rollout of the Performance Management system started in March 2008 with successful system deployment across all locations by the end of August 2008 The implementation involved user training on the software and BSc measures

Benefits

All business reviews are now being conducted online in the system both at the regional and corporate levels Managers can view the status of each project by just logging in as well as review and approve actions planned by the project lead without waiting for any formal performance review meetings This has led to a dramatic shift in the way Voltas manages its performance and has improved the transparency in tracking KPIs

Major benefits derived from the implementation are as follows

Solution OverviewIndustry Engineering Services

Company Size $400 million 3800 Employees

Challenges

bull Spreadsheets ineffective in tracking divisional performance

bull Non-financial measures were omitted due to data integrity issues lack of aggregation

bull Strategy unevenly deployed leading to misalignment

Solution

bull Actuate BIRT Performance Management Software Suite

bull Integration consulting services

bull Customized smart client

Benefits

bull Transparency in tracking KPIs all in one place

bull Alignment of action plans to division strategy

bull Dynamic Performance Management timely reviews

Design Stage

bull Measurement system evolution and refinement during system configuration

bull Clear consensus on KPI definitions and descriptions

bull Minimal support required during configuration and implementation

bull User training and access with individual user ID and password cementing ownership and accountability of the scorecard across hierarchies in the division

bull BIRT Scorecardrsquos ease of customization to business needs enabled instantaneous execution of required changes in the system

Rollout and Implementation

bull Strategy Map and other Cause amp Effect Maps have become highly illustrative in communicating the relevance of various measures and their integration with strategic objectives

bull Action Plans are fully aligned to divisional strategy and can be monitored online

bull Timely business reviews and dynamic communication of performance

bull All key performance indicators are tracked and available in one place business performance reports are generated as and when required

Going forward Voltas plans to roll out BIRT Scorecard access to its subsidiaries and to joint ventures in order to track the Balanced Scorecard of allied companies on the same platform The goal is to use it as a comprehensive Performance Management tool for the international operations of the entire company

Voltas has branch offices in Abu Dhabi Dubai Qatar Singapore and Kingdom of Saudi Arabia For more information on the company visit wwwvoltascom

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Vol 6 Issue 2 2009

In todayrsquos economic climate careful decisions are needed to help

business remain competitive and to continue to succeed To stay smarter they need to build deploy and maintain business-critical reporting and information applications

Open Source Business Intelligence while it comes with its own set of technical challenges and misconceptions is often the right solution to deliver that Actuatersquos Business Intelligence Reporting Tools (BIRT) Open Source solution ndash developed with the Eclipse Foundation ndash is one example of a robust and web-centric Open Source Business Intelligence tool

The Open Source Model

An economic shift has occurred in the past decade introduced with the rise of the internet The internet provides connectivity which in turn connects demand to supply this removes the capital equation and shifts conditions in the market People with computers all over the world provide the means of conduction and with easy ways for these people to connect they can easily collaborate on projects with very little infrastructure This in turn led to the popularity of Open Source

Open Source has had many consequences for the enterprise software market primarily by making it a commodity market and by driving down price It also allows people who have a desire to do something to make money from doing it Production inputs are widely distributed and the raw materials are there to produce things in new ways Many argue that this shift has been about software licensing but actually it is largely about the production and distribution of software it is therefore a change that is more about economics that about ideology That economic base ndash the combination of connectivity of easier ways to market produce and distribute software and the fact that the internet acts as a giant copying machine ndash changes the conditions under which software can be sold That is why Open Source continues to disrupt the market and to force vendors to come up with new ways to cope with it Enterprise software is not going away rather it has been forced to shift

A 2008 survey by North Bridge Venture Partners asked Which sector of the software industry is most vulnerable to disruption by Open Source At the top of the resulting list was web publishing and content management a market thatrsquos currently highly fragmented and therefore perfect for introducing Open Source products The second sector was social software an entirely new category that has been difficult to define and difficult currently for commercial vendors to make money from again Open Source is the ideal solution

Business Intelligence was the third sector listed in the North Bridge survey Again this is understandable since BI tools and data warehousing tools are exactly that tools While end users consume the outputs theyrsquore not themselves often put into the hands of end users rather IT sets up the meta-data defines metrics etc Which means Open Source is targeted at the right audience there is a platform in a data warehouse that has multiple layers any one of which can be Open Source or

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proprietary Those modular boundaries make Open Source an ideal fit

What IT Looks For

IT acts ndash for the most part ndash as the gatekeeper to Business Intelligence When searching out new software IT generally looks for three things

1 Better alternatives to the status quo Specific features that are better for example

2 Ways to cut costs With commodity infrastructure in place IT has to try to drive down costs

3 Unique attributes There may be something they want to do but cannot do using their current system or features that might not be available (For example their mainstream BI package might not have web-accessible dashboarding that can be self-service)

Why Open Source

In addition to examining the sectors left vulnerable by Open Source the North Bridge Venture survey also asked What makes Open Source attractive Price was the most popular answer In addition to the capital cost of licensing Open Source drives down acquisition cost as companies no longer have to go through heavy proof of concept Itrsquos also easier to trial things and if license costs are less then maintenance costs are also less Finally unbundling maintenance support and service means that businesses can choose from a menu of services instead of being forced into a 20 percent single lump fee

The study also showed that companies found that Open Source offered freedom from vendor lock-in In addition it is flexible with easy access to commodity code in order to develop embed and build content into websites

Another 2008 study by The 451 Group gave a list of what organizations saw as benefits to Open Source once it was already introduced At that point flexibility ndash by 05 percent ndash came out over cost In this instance though the definition of flexibility was different respondents were impressed by the fact that there is no vendor that dictates when they have to upgrade how they have to upgrade and why they have to upgrade For a commercial vendor at end of life or desupporting versions of their software a sales and marketing schedule will often require a release every Q1 whether they are ready or not As a result

companies will be forced into an upgrade they donrsquot want that was released simply because marketing dictated it and not necessarily because it was ready Open Source is typically not under those same types of pressures

Buyers were also impressed by scaling costs if an organization has 50 initial licenses and pushes it out to 150 more people in BI lowered costs come in beyond the initial capital costs As well companies are not dependent on vendors for service or for additional pieces of technology

Whorsquos Adopting

Open Source Business Intelligence adopters include

bull Independent software vendors solution providers and OEMs They are taking Open Source BI and pushing it into products that need reporting and dashboards Theyrsquore beginning to build capabilities using Open Source into quality networking gear file servers and databases

bull People who have traditionally been underserved and have not been getting what they need for whatever reason They may not have had the budget or their current vendor might not offer some of the functionalities that they want Possibly it could be over-serve at least half of the features in a major BI stack today never get used

bull Developers Web developers provide information ndash especially database information ndash on their websites while internal developers have to build reporting features into applications and typically do not have access to the tools they need Tools like BusinessObjects and MicroStrategy live in a data warehouse in a different area of the organization and canrsquot be embedded easily

In terms of the organizations adopting Open Source BI many are on the small side with less than $100 million in revenue But very large organizations are just as likely to adopt Open Source solutions as well This is the inverse bell curve of Open Source BI implementation

Smaller-sized organizations have fewer data sources and more manageable data volumes are more interested in cost flow and also donrsquot have the same level of data volume and complexity that might exist in a medium-to-large organization or deployment Much more manageable data volumes less cost to scaling and fewer technology issues in terms of complexity make these ideal environments for Open Source

Open Source drives down acquisition cost as companies no longer have to go through heavy proof of concept ldquo

rdquo Large organizations though have equally ideal environments They arenrsquot for the most part introducing Open Source at an enterprise-wide level but rather have projects with specific features that need to get done The project in question may exist only within a single department which pushes down data sizes and deployment complexities making them a good target

Introducing Open Source BI

Open Source BI use often comes in at the edges and results from discontinuity An example of such a discontinuity might be a company restart many data warehouse projects started with a particular data model ndash copying a production database and putting reporting on it for example ndash and have to do a schema change At that point the cost of switching from one BI tool to another or from one ETL tool to another is fairly low Everything has to be changed anyway metrics change schemas change queries change The same is true with platforms moving from one database to another involves an integration of an entirely new set of systems These discontinuities often allow for the introduction of Open Source

New interface requirements can also lead to Open Source implementation as a company attempts to bring data-warehouse data into an application deploying it out through a website or via an application But some users may only need a few single simple production reports and donrsquot need to be served through a tool that costs between $1000 and $1500 per seat which is the average per-seat deployment cost of iTools Companies can reserve their BI tools for core individuals who need the flexibility and features and can build Open Source into applications for large-scale but simple reporting

In fact in most cases organizations donrsquot replace an entire system with Open Source That only happens in the cases of large discontinuous change where the features are good enough in an Open Source tool the deployment matches and there is no reason for pushing through a high-cost high-complexity solution Whatrsquos more likely to happen is an augmentation where a particular department ndash or a segment of users or particular class of tool ndash is given something that they need in Open Source For example a BI tool might be good and flexible with interactive reporting that can get production reports out and do the schedule but perhaps doesnrsquot have statistical features rolling out something like R to only a couple of analysts and layering that on top of the warehouse may be the solution

Augmenting and bringing in new features and capabilities in areas where Business Intelligence tools might be weak is typical of Open Source implementation This is an opportunity to augment an existing environment in a cost-effective manner to build features into that environment and to get the features specifically needed without paying for a whole package that isnrsquot all necessary

In contrast with what happens in the case of most traditional models much of the time the need for Open Source applications comes from the bottom-up and is established from a point of need from a developer or a department trying to get something done There are no enterprise sales representatives making calls or going through a procurement process where vendors and financials are examined There is also the ability to put something out in real terms instead of relying on a fake proof of concept where following that proof of concept companies are forced to either pull out and throw it away or to license the software

Roadblocks to Implementing Open Source

Misconceptions still exist around Open Source based largely on the idea that these projects are being developed by teenagers in their parentsrsquo basement a myth that is more than a decade outdated as today Open Source projects are generally run by commercial Open Source providers with paid developers Still a lack of information can prove a problem for organizations introducing Open Source This often plays out in the legal department which reviews all contracts and may not be informed when it comes to Open Source software licenses An Open Source license will be missing half the standard clauses the lawyers are used to clauses of restriction that dictate how to deploy what can be deployed where it can be deployed and how the software can be used Most Open Source licenses do not have these same clauses and lawyers will want to know why theyrsquore missing That can be another road bump in getting the software acquired

Support can also be more confusing Most major projects have commercial vendor support behind them But unbundling is also available which means buyers donrsquot have to purchase support but instead can buy the subscription model that covers only bug fixes integrated patch testing and certification against databases This is because enterprise support is often overrated more often than not internal support solves more problems than the vendor does

Augmenting and bringing in new features and capabilities in areas where BI tools might be weak is typical of Open Source implementation ldquo

rdquo

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Implementing Actuatersquos BIRT Open Source Technology

BIRT Actuatersquos Open Source technology was developed with the Eclipse Foundation and does an exceptional job in meeting web-reporting requirements while utilizing the Open Source model Itrsquos a Java tool with a web-centric development and design paradigm BIRT reports are built with the intent of publishing to the web exclusively or more exclusively than is the case with other alternatives that are typically intended originally for paper BIRT is also very modular and very component based allowing users to do as much or as little as they want to deploy as much or as little as they need when theyrsquore creating their reports or embedding this technology within their environment

One of the goals of BIRT is to cater to the power that is needed for many of todayrsquos reporting projects but also to offer the simplicity that means an individual report creator can be very effective at doing their job simply by using the BIRT design tool itself That goal has proven successful so far with 65 million downloads of BIRT since the projectrsquos inception 45 million of them in 2008 alone BIRT is in fact one of the fastest growing Open Source projects on the internet right now

BIRT does a great job of supporting a wide variety of report types it supports BRD Pro BRD BRS and IV and as users

build components throughout the project they can reuse those elements in subsequent future reports It also supports standards such as HTML cascading style sheets JavaScript Java and XML adding the underpinning technologies for either customization or enhancement and allowing developers to leverage BIRT while using the skills that theyrsquove already developed As an integrated report development environment BIRT also provides graphical and robust tools for the most common reporting tasks including query building ndash such as graphical object layout ndash and representing such as charting As well BIRT includes both online help and documentation

Itrsquos an incredibly robust tool and is capable of being embedded of being delivered to small groups or across the enterprise leveraging Actuatersquos commercial platform New capabilities include the ability to add interactive Flash objects into the environment to build personalized dashboards to create ad hoc reports and to create interactive viewing Actuate also recently introduced the JavaScript API which allows users to embed approximately a dozen lines of JavaScript into any webpage and from that access any content within the Actuate environment including any BIRT report that is hosted in that environment which in turn can be delivered to any type of JavaScript-enabled browser

BIRT is built in the Eclipse Project Actuate sponsors and chairs the project management committee for the BIRT project It is Actuatersquos third reporting technology built from scratch which means there is a high degree of long-term experience integrated into the BIRT environment

How the End User Benefits From BIRT

BIRT comes complete with 65 million sets of eyes worldwide looking at it and suggesting changes That has driven its enhancement in the marketplace The overall number of committers on BIRT historically is high and the current level of committers on the project remains high itrsquos nearly the same as Apache committers in the market today

Actuate ndash in its sponsorship of BIRT ndash has added and created a community called BIRT Exchange which is a resource for the BIRT development user to continue to enhance their BIRT expertise and to continue to gain help if needed from the BIRT community No question goes unanswered on BIRT Exchange which is at odds with what people often find in other Open Source forums where a huge number of questions remain unanswered from the audience Within the BIRT Exchange environment there are three different forum administrators who make sure every single question is answered BIRT Exchange also hosts the documentation for the entire BIRT product line as well as videos and webinars designed to further the training and adoption of BIRT itself

Actuate employs more than 50 developers on the Eclipse project itself with documentation and publications available in support of the project available at amazoncom

Actuatersquos Value Add

BIRT is modern and flexible and open Since itrsquos built within the Eclipse Project anyone who knows Eclipse knows how to use it Actuate adds interactivity which take the form of Flash widgets embedded into the BIRT development environment ndash allowing users to build their own types of dashboards ndash or through interactive viewing to transform a report from being static to something an end user can manipulate and evolve over time This is important because reports typically become obsolete quickly the requirements that they originally meet changes as users use the reports to become smarter and then the questions they want answered change Which means that providing this kind of interactive content is key to the success of a Business Intelligence project

Extending BIRT Capabilities

BIRT development tools and the BIRT engine are available as Open Source and are widely distributed Typical capabilities such as JavaScript and SQL skills are required to become familiar with the BIRT product

The second level of capability is the ability to embed BIRT within applications and to begin to add degrees of interactivity to the environment such as Flash widgets or the interactive viewer This allows a user to create robust rich embedded applications

The third level is for workgroup or departmental-style applications or small organization-type applications To adopt this type of Open Source technology individuals would introduce BIRT plus the single server iServer Express a hybrid of Open Source and commercial technology

Finally there are organizations that seek enterprise-caliber or enterprise-level deployments that want to publish BIRT applications outside the firewall to secure these applications for millions of users and to support very high degrees of performance and reliability This type of scalability requires both good design and trial and error as operating systems platforms and other elements continue to evolve Maintaining best performance for very large-scale environments means making sure that each one of these items is optimized

Open Source Vs Commercial Technology

The overall platform that BIRT delivers is a complete set of both development and deployment options for creating any type of environment Users can be characterized across a number of different lines from incredibly skilled Java developers to everyday report developers from people familiar with Actuate to those who are not from power users to business users etc

There are two fundamental questions that these users need to answer

1 Is BIRT the right technology for the application theyrsquore creating

2 Whatrsquos the best way to deploy it through Open Source or through commercial deployment means

The answer to the second question is reliant on a number of variables In the following situations for example Open Source would be the ideal alternative

bull Those users who want to use BIRT for individual use

bull Those who want to embed it into their own project

bull An ISV who has the technology in their own application to support printing and baked-in reporting needs

Converting to or supporting a commercial model meanwhile occurs most frequently at the enterprise-server level for organizations deploying the environment to hundreds or thousands of users It supports a wide variety of types of users

But both the Open Source and commercial models employ a common report design format Itrsquos a progressive development experience or a collaborative report design and collaborative process allowing each user to participate in the definition and the evolution of their reporting environment while at the same time using tools that are appropriate for their skills a novice user isnrsquot being overwhelmed by too many features while the power user or the highly skilled users receive exactly the right kind of technology and level of development capabilities theyrsquore accustomed to

Yet some of the decision-making criteria lean more effectively towards a do-it-yourself situation using the Open Source type

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of model and some lean more appropriately to a commercial investment and a commercial tool A growing level of complexity often drives commercial interest but certain complex functionalities ndash including supporting web services or web services SQL or other examples of integration techniques ndash the Open Source model is more than capable of supporting on its own

The applications Actuate deploys are information applications When choosing the paths of how to proceed ndash with regards to choosing either the Open Source or commercial interest ndash there are typically four premises to consider in an information application

1 Is the report or the application able to consume and collect data from one or many sources whether itrsquos a single report or a complex application Typically when the data sources are simple and the data connections well understood either Open Source or commercial interests are appropriate With meta-data layers and extraction layers the commercial model tends to be more effective But if itrsquos an embedded project using POJOs or other Open Source or specialty connectors ndash unique connectors ndash that often keeps a project more suited for an Open Source deployment

2 How is it able to aggregate and transform that data into meaningful information Looking at aggregation the same premise holds true if therersquos simple aggregate functions or automatic cross tabs or even custom or reuseable business functions both the Open Source and commercial models are appropriate In terms of embedded Java functions those aggregations are appropriate in either case Itrsquos when entering into areas of security ndash of parameter-driven values dynamic-parameter collection cascading menus etc ndash that a commercial purchase tends to excel over the Open Source version

3 What are the presentation options or formats available to present that data When the presentationrsquos fairly simple both Open Source and commercial apply When

charting cross tabs and embedded graphics are the norm then the two are served both in Open Source or commercial interests When JavaScript is starting to be used as a customization or a dynamic-properties delivery vehicle both the Open Source and commercial models are effective although keeping this content embedded within an environment is probably more appropriate using Open Source Itrsquos only when introducing elements such as interactive viewing capability or the ability to manage an environment through a management console capability that the commercial option begins to edge out

4 Are we able to achieve the levels of scale that we need to get that information out to every user whorsquos interested in it When individual use is appropriate Open Source is a better fit When transient content is what a company is delivering thatrsquos usually a better fit with Open Source as well as is embedding To support a collaborative reporting effect or to support a variety of developers and users ndash especially users with different skills ndash the shift begins to move towards a commercial style of delivery When therersquos custom delivery required such as JavaScript API the commercial environment is also more appropriate

These are the capabilities of different deployment options for both the Open Source platform as well as the Actuate commercial platform geared towards allowing organizations to get the value that they most see fit within their environment or their application Typically for environments that have a heavy requirement for infrastructure thatrsquos what drives the commercial purchase whereas customization or individual interests typically drive Open Source

The key thing for any organization is to first decide what kind of reporting technology they need ndash whether it be Open Source or commercial ndash and then to look at their own needs And finally consider the BIRT environment as a vehicle that meets web reporting needs

For more information on BIRT visit actuatecom

A growing level of complexity often drives commercial interest but certain complex functionalities ndash including supporting web service or web service SQL or other examples of integration techniques ndash the Open Source model is more than capable of supporting on its own

ldquordquo

One of the benefits of Actuatersquos Business Intelligence Reporting Tools (BIRT) is that very capability for flexible functionality thatrsquos adjustable to usersrsquo needs Every component of the BIRT technology ndash whether in the Open Source or commercial versions ndash builds upon the components before it creating a robust and flexible system designed to meet each organizationrsquos unique Business Intelligence needs

Choose the Right Graphical ToolThe first step towards evolving organizational Business Intelligence is choosing the right graphical tool The Eclipse BIRT technology for one is a visual designer thatrsquos geared at report developers as well as JavaScript and Java developers and can create a wide range of reporting technologies and web reports BIRT builds content that is specifically intended for the web and uses techniques that are expected when building web pages and web content It doesnrsquot use a banded report writer design or development metaphor typical of many older report-authoring products including Crystal Reports or Jasper

BIRT is the third from-scratch product that Actuate has sponsored and developed and as such it takes into account more modern capabilities and techniques for developing web content In building BIRT Actuate has drawn from its extensive market knowledge borrowing best concepts from other products as well as from its own Reusability and the ability to include programmability within the environment have been traditional Actuate capabilities that have been included in BIRT but BIRT technology also uses de-facto standard programming capabilities such as embedding JavaScript and Java into the application rather than using a proprietary language

Open Source is the core reporting capability and value-added commercial products can be added to it More than 50 developers are employed by Actuate on the BIRT Open Source project similar to the number of developers Apache has applied to the Apache project Alongside these Open Source developers are Actuate developers working on the commercial product of BIRT

Open Source BI

Cost-Effectively Deploying

When deploying Open Source Business Intelligence technologies multi-layered functionality that can be added as needed serves to create a cost-effective way to build a solution specific to an organizationrsquos needs Each function acts as a building block as a company creates exactly the capabilities necessary for the job on hand without wasting money and resources on items that arenrsquot needed

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Another benefit of BIRT is the BIRT Exchange community Actuatersquos user forum which is far more robust and extensive with documentation and help information than has been found traditionally Nearly every forum post has an answer to it in some form which is not likely to be experienced with any other Open Source project or forum-based community Meanwhile the community itself is vast and growing rapidly Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate ndash where a developer may have downloaded 20 copies over its history ndash adds up to 350000 different users of BIRT technology That number is growing at roughly double the rate of the other two most popular Open Source projects

Add Value Through Features

Actuate BIRT technology has a range of features that will add value to a companyrsquos BI project

1 In addition to being a graphical report design tool BIRT takes into account the long-standing tradition of Actuate to support reuse libraries and reusability across the entire environment It is able to not only reuse BIRT objects and BIRT components ndash such as charts and tables ndash but also to incorporate and use JavaScript objects and Java libraries in the reports themselves This creates a rich experience for driving and building web-oriented reports

2 BIRT offers navigability While a user is in a graphical design tool they should be able to take advantage of some of the core capabilities that the technology offers such as a visual hyperlink builder that keeps information in context as well as the ability to create cross tabs dashboards and charting mechanisms that are active and navigable Inserting type of content ndash so that it is both consumable and scoped in context for the user ndash is important to the success of deployment Hyperlinking in context is one of the key elements to supporting Open Source deployments

3 The Eclipse BIRT environment supports a variety of graphical types or charting types including not only grids and tables but both static and dynamic images as well that can be linked back to databases or can support conditional formatting and a variety of conditions baked into the report BIRT is able to handle a large variety of chart types and styles allowing organizations to convey exactly what theyrsquore trying to deliver to their users Supporting rich charting is one of BIRTrsquos key core capabilities

4 The Open Source Eclipse engine can be embedded into or deployed from an application quickly within a JVM Users can add content generation or report generation functionality easily and quickly to their application by inserting it into their run time The BIRT engine itself is a key component in the Eclipse BIRT project It has a variety of extension points built into it which means itrsquos able to not only generate supported output types ndash such as HTML or Adobe PDF ndash but can also create custom emissions from a BIRT report such as an emitter for mobile content or an emitter for a particular report format of the userrsquos own perhaps to feed another application With a robust API structure within the Eclipse BIRT engine these are all possible

Build On Interactivity for a Richer Experience

Building onto that BIRT experience organizations can add more interactive and visual elements to create more appeal within their BI projects

Animated Flash Visuals Animated Flash visuals built into BIRT reports lend to a richer more enjoyable experience for end users They can take advantage of the navigation enhanced with the visual and animated appeal that Adobe Flash offers

The Actuate BIRT development tools include 266 Flash widgets This is one feature that differentiates BIRT Open Source with the BIRT commercial product Those who purchase the development tools from Actuate will immediately receive these Flash objects that can be deployed not only within Actuate BIRT reports but within Eclipse BIRT reports as well they are portable across both environments

Interactive Viewing Often users have a difficult time articulating their requirements to report authors That problem is alleviated when authors can deliver them an interactive viewing experience allowing the report to become changeable and adjustable by the user The user can select a particular column and can apply a filter to that column they can toggle back and forth between viewing perspectives rotate charts change the grouping of a report or add more visualization to it with something such as conditional formatting They could even navigate within the report using a joystick or deploy that report or portlet content anywhere they want And ultimately they could drag and drop and change ndash or add columns to the report directly ndash by manipulating the report as needed

This interactivity gives the end user the ability to enjoy more freedom with regards to how they use the report It also

addresses one of the biggest conundrums with regards to report delivery giving users a report provides them with content that makes them smarter and as they get smarter they take that information and they work it into their knowledge which in turn changes the questions that they ask of the report This means that what they need from a report changes over time Allowing users to modify reports themselves is a key goal in supporting BI processes because as users become smarter about what theyrsquore doing with their content they can help assist in defining what the next iterations of their web content might be

Choose the RIght Server to Store and Schedule Content

Actuate has spent the last 15 years developing the Actuate iServer It comes in two styles ndash iServer Enterprise and iServer Express ndash and offers a robust environment for creating managing and delivering BIRT report content to users on schedule on demand or on an ad-hoc basis directly

The iServer Express is a single-server deployment that is appropriate in scenarios where there is less active usage it supports a sequential batch generation capability and roughly 10 user connections per second as the users connect to the server It offers that scheduling and deployment capability at a very cost-effective price point while allowing organizations to secure their report content using the iServer repository to take advantage of some of the presentation layer capabilities that Actuate offers through its information console to present and manage that content on behalf of the users and ultimately to create a full reporting experience for users directly

Alternatively for those deploying a very large system ndash perhaps one that operates outside of the firewall in a traditional web information application ndash there is the iServer Enterprise The iServer Enterprise is massively scaleable but also very predictably scaleable as companies double the resources that they can apply to their environment they double the throughput and user numbers that theyrsquore able to support with the iServer It is also highly configurable in regards to how content is deployed and supports multi-tenet environments or multiple application environments In addition it can be componentized so that a presentation layer can be separated from a content creation layer or a business logic layer from a data management layer ndash including the meta-data layer itself ndash to help abstract and manage the queries driven

Determine Where Content Can Be Distributed

Actuate JavaScript API is a mechanism that allows the user to take a JavaScript library embed it into any HTML page and then from that JavaScript library securely access Actuate content from the iServer This particular capability allows the user to put either a report part ndash a reportlet ndash or an entire report directly into new locations This could be used as a user attraction vehicle it could be used as a dashboarding vehicle or it could be an integration point for systems that are written in NET rather than in the j2e environments that BIRT typically supports

Deliver Mash-Up Applications

Delivering mash-up applications using all of the functionalities listed above is simple in the BIRT technology and lets users themselves participate in the definition saving creation and management of their own dashboard displays and it allows them to watch exactly the KPIs that they care about

This is done through Actuatersquos Mashboard Customization to the Information Console which allows users to take any BIRT report content and to deploy it directly into a mash-up style environment where they can define exactly what pieces of content go into their application and what doesnrsquot These dashboards can also be roll-based so that particular pieces of content can be deployed to particular types of users directly then if they want to continue to customize that capability theyrsquore able to do so

Conclusion

Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques such as Flash and Ajax in a web-based design metaphor It is designed to evolve effectively over time and is meant to give organizations a choice for every type of user The first decision point of any organization is to recognize whether or not BIRT is the right reporting technology for the information application in question Once thatrsquos decided companies must choose the technologies they want to offer each type of user and then consider how they want to deploy those technologies directly

A wide variety of capabilities can be build into the BIRT environment ranging from Open Source to commercial Actuate products It is a flexible environment and is robust for delivering to users any type of information-driven web content

Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate adds up to 350000 different users of BIRT technology ldquo

rdquo Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques ldquo

rdquo

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The Challenge

Guiding a ship requires visibility into navigation operational performance and up-to-date information to make decisions This type of customer challenge drove ABS Nautical Systems

to incorporate Actuatersquos BIRT technology into its NS5 fleet management software

A leading software provider to the maritime industry ABS and its NS5 modular ERP system help customers manage principal operating expenses associated with vessels and offshore rigs ABS provided basic scheduled reporting and offered ad hoc reports in response to specific customer requests but customers demanded better functionality including the ability to easily extract and create both standard and custom reports

Producing reports to customersrsquo satisfaction took time as reporting was not central to ABS Nautical Systemsrsquo expertise Further it took valuable programmer time away from developing new features and functions for its core product This created the need for ABS to leverage a tool to provide highly-developed rich information application functionality increasing the power of its fleet management software while enabling its customers to access more flexible reporting tools

The Solution

With its own expertise in Java development and their existing reporting ABS searched for an Open Source reporting platformtool that they could leverage and seamlessly embed in their software ndash one that would deliver for ABS and their customers both immediately and for future expansion After considering Jaspersoft Actuate and Pentaho ABS selected Actuate and BIRT for their on-demand reporting solution

ldquoActuate has a clear roadmap and direction scalable platform financial stability and Open Source development platform The Actuate offering was an excellent fit because the technology

ABS Nautical Systems (NS) is one of the leading providers of fleet management software packages available to the

marine and offshore industries It offers a fully integrated modular approach to managing the principal operational expenses associated with a vessel or offshore rig ranging from maintenance and repair to regulatory requirements purchasing and inventory and crew management and payroll

SAFE AT SEAABS Nautical Systems A Case Study

ldquoBoth the technology roadmap and scaling are key It was an excellent fit for us actually ndash you had the right technology yoursquore Open Source based BIRT technology was key and you were the most helpful in helping us do the prototyperdquo

- Sandipan Bhattacharya ABS Nautical Systems

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used Open Source BIRT allowing us great flexibility in developing NS5 Actuate was most supportive in helping ABS NS do the prototype ndash both their Professional Services as well as the account teamrdquo states Sandipan Bhattacharya CTO for ABS NS

The new BIRT-based on-demand reporting tool within ABS NS5 is a web-based application that enables clients to quickly and easily generate custom reports from any NS5 module It handles reporting for the central elements of operational management ndash from regulatory requirements to payroll to planned maintenance programs But it takes NS5 beyond operational duties to consolidate data from across software modules to better monitor key performance indicators (KPIs) such as time to repair spare parts turnover and purchasing cycle times

The interactive information views that BIRT provides help fleet managers to achieve maximum efficiency empowering NS5 software users to get what they want in terms of the reports they need in the way they want them as each department or company may want to look at data in a different way Lastly that same data is more accurate because it comes as near real-time information at the time they need and can be benchmarked against how well they are performing to provide trends for evaluation

BenefitsResults

bull Speed time to market with new features by focusing on core competence in its software platform This allows ABS to focus development on its core product and improve customer satisfaction by rolling out and providing complete reporting modules This also helps decrease development expenses and support costs

bull Expand available market with completely new product lines enabling ABS to increase its client base to companies that didnrsquot know about them or had previously disregarded their offering The additional modules make the product more attractive to existing clients creating additional revenue sources for ABS

ldquoThe BIRT Open Source platform allows for a great deal of flexibility in the development stages Additionally the ease of integration into our OEM package was a great benefit Lastly the Actuate and BIRT offering has proved to be well suited to ABS Nautical Systemsrsquo needs and Actuatersquos roadmap shows what we can do in the futurerdquo states Bhattacharya

Self-serve customization drives flexibility and ease of creating reports BIRT empowers users to produce reports customized to their individual and departmental needs and preferences And as government reporting requirements change they can

Solution OverviewCompany Profile Integrated fleet management software for marine industries

Industry Software

Location Houston with offices worldwide

Challenges

bull Customer need for better more timely reports

bull Enable customers to self-serve for ad hoc needs and regulatory requirements

bull Focus on core software expertise and feature requests

Solution Integrate Actuatersquos Open Source-based BIRT reporting with ABSrsquo NS5 fleet management software

Business Benefits

bull Faster time to market broadened portfolio

bull Ease of integration development flexibility

bull Increased visibility into operations aids customer competitiveness efficiency

bull Users empowered to customize reports

Does your companyrsquos mission and vision statement place the customer at the center of your universe

Does it promise to maximize customer value and deliver the best customer experience possible If it does your mission and vision statement is surprisingly similar to nearly every other organization And much like them chances are your organization is struggling to make this vision a reality to actually reinvent itself as truly customer-centric

ldquoCustomer-centricrdquo has become the new buzz phrase thrown about at most executive planning sessions and has replaced ldquoinnovativerdquo as the new mandatory strategic language The truth is it takes a lot more to become customer-centric than changing the company vision ndash it requires a departure from years of tradition a clear look at who and what your organization is and a deeper understanding of what motivates your customers to buy from you or from your competitor Fortunately the cost to make this change is surprisingly low while the benefits and the returns can be shockingly high

Finding Your Customer

Customer-centric implies that the customer is central to the organization but this is too esoteric to have any real meaning An organization turns materials into a product or service which is then sold Everything the organization does must lead to this

event (with no sale after all therersquos no customer) This logic works for most people and most organizations and it logically follows that the focus should be upon the creation of the best possible product or service because this is what causes a prospect to become an actual customer

This logic fits nicely with traditional thinking It was popularized by Michael Porterrsquos value chain approach in the mid-80s The value chain is a string of critical processes that begins with raw materials or inputs and ends with a product or service delivered to a happy customer Thinking this way makes sense because it is easy to place the customer at the end of the process But this mind-set doesnrsquot just affect how executives structure the organization it weaves its way into every aspect of how the organization manages itself and how managers make decisions

For example the finance department performs the close process each month so that it can deliver financial information to managers with actual bottom-line responsibility These managers from executives to cost center managers are financersquos customers just as shareholders are when they deliver quarterly reports Once these reports are delivered finance goes back to the business of accounting and managing revenue and expense until the next month Engineers work to design new products that will keep them one step ahead of their competition Manufacturing produces goods to meet customer

respond more quickly adapting them by themselves instead of depending on ABS to supply reports

ldquoActuate empowers users to get exactly the reports they need the way they want them Empowerment is key as well as flexibility as each department or company may want to look at data in a different wayrdquo states Bhattacharya

Rich information drives efficiency through increased visibility and better insight into operations improving customer competitiveness With highly accurate real-time information on how well they are performing management can control both overall and specific costs of operating and maintaining their shipping fleets ldquoThey donrsquot have to wait hellip they can see all contributing factors day to day It helps improve efficiency at every level For the first time a shiprsquos captain can have insight into the operational performance of his ship while still at seardquo says Bhattacharya

Creating the Customer-Centric

OrganizationFinding Your Customer-Critical Path

By David F GiannettoCEO

The Telos Group

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33

Vol 6 Issue 2 2009

orders or demand projections The sales department courts potential buyers so that they become actual customers Once they do so sales then returns to identify new targets and tries to transition them Manufacturing works to refill shelves Engineering continues developing products

Employees throughout the organization are focused upon delivering the product or service for which they are responsible The product attributes become the value proposition that will appeal to their customer regardless of whether or not this is an internal or external customer Employees are trained to think in terms of product development delivery and value The organization becomes even if it doesnrsquot know it product centric Believing that a mainstream management theory such as the value chain approach could not be wrong or outdated management is comfortable with this view of their world When they try to become customer-centric they do not know how

Making the Change

Consider for example the electricity powering the light by which you are reading this article It is a fairly simple product that was mainstreamed decades ago and except for new types of power generation it has remained essentially unchanged The traditional value chain for this industry is fairly straightforward Power is generated by a complex and often dangerous power plant and it is delivered to the customer via a complicated and often dangerous network The customer then consumes this power and must pay for it creating the

need for back-office operations such as accounting finance and customer service

Given the complexity of power generation and delivery operations the organization is staffed by a high percentage of engineers many with doctorate degrees and years of specialized training The generation and delivery assets themselves are maintained by highly-trained highly-specialized workers A large percentage of the management team also comes from this background and rose through the ranks of organizations identically structured Combined these employees represent over 75 percent of the organization

Collectively these employees create a culture that is consistent in almost every power utility in the world Their cultures respect academic achievement technical expertise and years of experience in the industry They typically believe in rigid structures inflexible procedures and consistency in design and execution They are truly product focused

Given the potential hazards it is easy to see why they behave the way they do But what happens when this type of organization has to compete in a more open market when transparency is increased or when the customer such as a municipality has a stronger voice or is under the growing influence of being green What happens when the power company must become truly customer-centric

It is nearly impossible for them to succeed Seventy-five percent of the organization has little to do with or has little understanding of the customer

Departing from Tradition

While this product focus is exaggerated within a power utility largely because of their technical nature these factors affect nearly every organization Employees who have great influence within the organization will not yield it to those who have less but who understand the customer better Funding is unlikely to shift from traditionally respected areas to those areas that most affect the customer

For a power utility this means that engineers who have often dedicated their entire lives to the study of their work must be considered equal to project managers and customer service agents most of who do not hold any degrees Money resources and staffing must focus on project management and call center technology not just on million- or billion-dollar assets There must be recognition that these areas equally affect the customer This new perspective must be executed by executives who have spent their entire careers adhering to the traditional values of the product-centric culture But this shift is what customer-centric really means truly understanding and meeting your customersrsquo needs It starts with the customer more specifically it starts with a prospect

Customer-Critical Path

This means that the traditional value chain must be rethought and renamed more appropriately to the customer-critical path A prospect travels this path on their journey to become a customer a customer travels this path toward the goal of becoming a happy customer This is the true value chain of the organization ndash a string of processes that become critical because they directly affect your customer regardless of the product service organizational chart academic degree or bias Find the customer-critical path and you can guide your customers through your organization in the way that is most meaningful to both them and you

But not all customer needs are the same even within an industry that has only one real product like a power utility The customer-critical path may start in several places meeting the needs of

several different types of customers ndash household customers that simply need power turned on or major projects that require significant project management and pre-planning Eventually these starting paths merge It will occur at the point at which all customers are happy From there they may take a different path

again some will terminate service or have new needs There is not one value chain there are many paths a customer might travel through your organization

This new approach offers significant value for organizations that adopt it It allows them to better understand their customers so that they can be more effectively segmented and targeted by products or services This drives the bottom line in several ways A stronger value proposition increases appeal thus driving revenue Better service and customer interaction improve the customer experience and increase customer loyalty driving customer lifetime value

The customer-critical path also becomes a vital decision-making tool for management It provides a clear and unbiased perspective on where resources should and should not be spent It defines the relative worth of projects assets and expenditures painting a clear picture of what the results will be if the customer-critical path is not

properly maintained

And if your mission and vision statement says you are customer-centric it makes your strategic plan more than simple semantics It makes it actionable setting your organization on a path towards true differentiation and market leadership Properly crafted the customer-critical path becomes a pleasant stroll through the park for your customers and it can also become the most profitable path for your organization

David F Giannetto is CEO of The Telos Group co-author of The Performance Power Grid The Proven Method to Create and Sustain Superior

Organizational Performance (J Wiley amp Sons 2006) and a professor in the Executive MBA program of Rutgers University

Mr Giannetto can be reached by email at dgiannettotelosconsultingcom

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35

Vol 6 Issue 2 2009

I Introduction and Background

Who the NMDP is

The National Marrow Donor Programreg (NMDP) and Be The Match FoundationSM are non-profit organizations dedicated to creating an opportunity for all patients to receive the bone marrow or umbilical cord blood transplant they need when they need it Every year thousands of people of

all ages are diagnosed with leukemia and other life-threatening diseases Many of them will die unless they get a bone marrow or cord blood transplant from a matching donor Seventy percent of people do not have a matching donor in their family and depend on the Be The Match RegistrySM to find a match to save their life

The Beginning

When their 10-year-old daughter Laura was diagnosed with leukemia Robert Graves DVM and his wife Sherry were ready to do anything they could to save her They agreed to try a bone marrow transplant from an unrelated donor ndash the first ever for a leukemia patient Laura received her transplant in 1979 at the Fred Hutchinson Cancer Research Center The treatment gave her an extra year and a half of life

The National Bone Marrow

Donor Program

The Balanced ScorecardVision into

Action JourneyBy Howard Rohm

President amp CEO Balanced Scorecard Institute under the guidance of The National Marrow Donation

Programrsquos Michael Boo Chief Strategy Officerand John Rudrud Senior Analyst

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37

Vol 6 Issue 2 2009

The experience inspired Dr Graves to create a national registry of volunteers willing to donate marrow His early efforts brought together other patient families and transplant doctors spurring a federal mandate that led to the creation of the National Marrow Donor Program NMDP began connecting patients with unrelated donors in 1987 with a registry of just 10000 volunteers

What the NMDP Does

The Be The Match Registry has grown to more than seven million donors and over 150000 cord blood units the largest and most racially and ethnically diverse registry of its kind in the world Medical advances are making marrow and umbilical cord blood transplants available to more patients all the time Since 1987 NMDP has arranged for more than 35000 transplants to give patients a second chance at life Today NMDP facilitates more than 4300 transplants a year

Planning for the Future

Many more patients still need help In order to meet the needs of all patients NMDP will need to facilitate 10000 transplants per year by 2015 That is more than double the number of transplants the organization facilitates today NMDP is working to meet this need but canrsquot do it alone Efforts are sustained by

bull A global network of more than 490 leading hospitals blood centers cord blood banks and laboratories

bull Agreements with donor centers cooperative donor registries and cord blood banks worldwide through which the program provides patients access to more than 12 million donors and 300000 cord blood units

bull Continued support from the US government which has entrusted the NMDP to operate the CW Bill Young Cell Transplantation Program the federal program supporting bone marrow and cord blood donation and transplantation

bull Partnerships with corporations service organizations student groups faith-based communities and other organizations

A new and different way of thinking about the NMDPrsquos long-term strategy was required in order to make sure that NMDP would be capable of delivering 10000 transplants per year in 2015 ldquoBusiness as usualrdquo would not get the organization where it needed to be NMDP needed to identify and

aggressively improve in strategic areas critical to the delivery of 10000 transplants

II The Balanced Scorecard Approach

Background

The strategic planning system that had been used at NMDP up to 2007 was a fairly well-developed planning process that tracked initiative performance under seven primary areas of strategic focus While this approach provided a measure of strategic planning for the organization it was too focused on activities and projects rather than on impacts

Early in 2007 NMDP leaders Gordon Bryan Chief Financial Officer and Michael Boo Chief Strategy Officer began developing strategic metrics designed to identify measure and communicate progress in strategic plan objective areas

Selection

As the senior management team evaluated options to integrate broader strategic metrics with the existing strategic business plan the Balanced Scorecard approach emerged as a leading candidate during the initial assessment of planning models because it

bullEncourages development of strategic themes and provides the ability to focus on areas where long-term continuous improvement is needed

bullPermits identification of cause-and-effect relationships between Strategic Objectives within each Theme

bull Facilitates communication of Strategic Objectives that can be portrayed on a strategy map that is easily understood by all employees and stakeholders and shows how the perspectives work together to achieve the mission

bull Assures that the organization focuses on Strategic Objectives and Measures from a CustomerStakeholder perspective and a PeopleKnowledgeTechnology perspective (Historically the organizationrsquos focus was skewed toward the Process and Financial perspectives)

bull Enables leadership to track Strategic Objective performance over the long term rather than tracking the status of supporting projects and initiatives

bull Creates a framework for prioritization of projects initiatives and funding opportunities based on contribution to and support of the Strategic Objectives

bull Allows organizational Strategic Objectives to be cascaded into Department Objectives thereby giving each employee

a more specific understanding of how his or her work impacts and contributes to the Strategic Objectives

bull Drives long-term continuous improvement as Strategic Measures improve over time

bull Facilitates a ldquolearning organizationrdquo where corrective actions are implemented in cases where Strategic or Department Objective Measures are not being met

The NMDP planning team looked at a number of planning models ndash including Balanced Scorecard Six Sigma Lean and TQM ndash and concluded that the Balanced Scorecard approach provided the most versatile and relevant framework for future growth and organizational development

III Scorecard Development ndash NMDP Officer Input

Early to mid 2007 NMDP began the Balanced Scorecard development effort with the help of consultants from the Balanced Scorecard Institute

A comprehensive review of the organizationrsquos strengths weaknesses opportunities and threats organizational pains organization enablers vision and mission was conducted over several days with NMDP officers and senior management These sessions produced a new Mission and Vision Statement and four Strategic Themes (rather than the original seven)

The former mission statement Extend and improve life through innovative cellular transplant therapies was changed to We save lives through cellular transplantation ndash science service and support

ldquoThis new mission statement captures and communicates more directly why we exist and it clearly articulates the three ways that we are able to save livesrdquo explained NMDP CEO Dr Jeffrey Chell

The Overarching Strategic Result in place of a vision statement was developed and shared with employees throughout the organization Meeting the need for 10000 transplants per year by 2015 The senior management team developed a longer more descriptive version of this statement but felt that the shorter version had more impact

ldquoWersquove found that the Overarching Strategic Result has been a great tool to get people thinking about how we will manage

to do more than double our current transplant volumes in a relatively short time ndash just five years from nowrdquo explained initiative sponsor Michael Boo ldquoThis has driven a lot of creative thinking around how to dramatically improve the efficiencies and cost effectiveness of many internal systems and delivery processesrdquo

The four Strategic themes that the NMDP officer group developed and agreed upon are

bull Global Access and Acceptance ndash Getting to Yes Overcome non-cell source barriers to transplant (eg no insurance no transportation no post-transplant support)

bull Deliver Excellent Stakeholder Experience Overcome Cell Source Barriers (making sure a cell source donation is available when itrsquos needed ndash adult or cord)

bull Research Pursue research to improve cell transplantation as a therapy

bull Culture of Excellence Keep up-to-date with talent structure and resources needed to continually improve transplant services

IV Scorecard Development ndash Senior Management

Throughout the spring and summer of 2007 four Theme Teams comprised of senior management met to develop

Theme Team strategy maps that included Theme Objectives by Perspective and proposed Measures for each Theme Objective These served as detailed roadmaps with specific objective areas identified ndash where NMDP needed to focus in order to improve them

The four Theme Team maps were subsequently

combined into an NMDP Strategy Map that included all relevant components from each theme This NMDP Strategy Map is comprised of 13 Strategic Objectives 46 Strategic Measures and seven Strategic Initiatives

Narratives were captured regarding the intent and ultimate end state for each Strategic Objective and detailed descriptions were created for measurement information including rational frequency owner and unit of measure

At this stage in the process the team named the Balanced Scorecard tool ldquoVision into Actionrdquo or ViA ndash NMDPrsquos strategic Performance Management tool On June 1 2007 the ViA Themes and NMDP Strategy Map details were presented to the board of directors by senior management and approved along with a plan to proceed to the next phase of department cascading

A ViA Communications Team was formed to communicate ViA progress to employees on the development of the new Mission Statement Vision Statement and the 13 Strategic Objectives This was done through a combination of pulse checks newsletters

38

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39

Vol 6 Issue 2 2009

intranet messaging e-mails from the CEO leadership training all-staff meetings and promotional contests This was an extremely integral step in the ViA roll-out that provided transparency and generated excitement around the benefits of ViA

V ViA Department Cascading

All departments at the NMDP were scheduled for sessions to develop their department Objectives Measures and Initiatives These were facilitated by internal subject matter experts and included an initial two-day exercise to help the department identify where and how each department contributed to the NMDP Strategic Objectives Worksheets and other preparation material were provided to each participant and collected prior to the cascade session The pre-work information was used to expedite the affinity exercises at each session

These were followed up with sessions to finalize detailed measures with individual measure owners Department teams were comprised of five to 10 key members of each department

The department cascading efforts provided a number of primary benefits to the organization including

bull The articulation in easy-to-understand terms of how each department contributes to the overall success of the Strategic Objectives and ultimately the NMDP Mission

bull A tool to identify gaps or overlaps between departments that can also be a tool for departments to communicate with each other in terms of supporting initiatives

bull A tool for each department to prioritize initiatives and activities Also it provided a mechanism to support requests for funding new opportunities

bull A clear framework for corrective action where measures are not being successfully met

bull A common format and mechanism for reporting department performance to officers and senior management

bull A common format and mechanism for reporting and reviewing department performance with staff

bull Help with the development of individual job performance appraisal content ndash which should be designed to support Department Objectives

Department Cascading was complete in early 2009 There are over 200 separate department measures that are tracked each quarter

VI NMDP ViA Today

NMDP has established a department Champions Council Members of the Council are becoming experts at using the automated ViA software Today this is being used at department staff meetings to facilitate discussion around corrective action for underperforming or unacceptable Department Measures Departments use the department Strategy Maps to guide staff meeting discussions on performance measures and corrective action plans

ldquoAll business cases or requests for funding must be submitted with clear tangible descriptions of how the effort will impact ViA Strategic Objectivesrdquo explained Boo ldquoOnce all business cases have been submitted to the officer group for final approval they are prioritized in order of their impact on ViA Strategic Objectivesrdquo

All strategic and department measures are required to be reported into the ViA system each quarter Each is color coded based on an officer-approved target matrix Each measure owner is required to provide comments regarding the measure performance for the quarter and discuss how he or she expects the measure to end the fiscal year This information is shared with senior management for review and follow-up with measure owners ifwhen necessary

Senior management uses the color-coded NMDP Strategic Map as a basis for discussing quarterly performance and identifying

Strategic Objective areas that may need attention corrective action andor more resources NMDP tries to focus not only on corrective action items but also highlight success stories where outstanding performance has been reported

All employees will soon have access to the web-based ViA application to provide as much transparency and visibility as possible in order to become a truly strategy-focused organization

ldquoVision into Action has been successful within the organization to a great extent because of the consistent support and guidance provided by NMDP leadership including our CEO Dr Jeffrey Chell my fellow Officers and the Board of Directorsrdquo said Boo

Howard Rohm President and CEO of the Balanced Scorecard Institute is a Performance Management trainer consultant and technologist with over 40 years experience Mr Rohm has helped dozens of organizations worldwide build Balanced Scorecard and other performance planning and management systems

48

Pe

rform

Mag

azine

Info

rmatio

n in

Actio

n

A community for BIRT users and developers sponsored by Actuate

A Report Writing Portal lets your end users browse reports modify them and even develop

new ones You can set one up in three steps when you use AJAX-based BIRT technology

Because the end user tools to modify and create reports are AJAX-based therersquos no desktop

software to install Users get the reports they need quicker while the burden on development

resources to create new reports is reduced

BIRT Exchange is a community site that offers the broadest collection of resources for the Eclipse BIRT (Business Intelligence

and Reporting Tools) project and for integrating spreadsheets with Java The site is sponsored by Actuate a co-leader of the BIRT project

Sponsored by

See a Demo

at Booth

602

For More Information

Contact us by phone at 1-800-884-8665

1-913-851-5300 from outside of the United States

wwwbirt-exchangecom wwwactuatecom

40

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41

Vol 6 Issue 2 2009

JCIrsquos previous approach of one-off negotiating as well as its spirit of continuous improvement and customer focus meant that it had only one-off measures in every location The company for example had 127 variations of the measure lsquomaintenance managementrsquo Many were very similar but since they were not exactly the same they could not be compared effectively Inefficiency at gathering and maintaining data at different locations across the globe made the task difficult as well Data was collected any way possible thrown into a cell or a Power Point slide and handed in at the end of the month It was highly inefficient extremely customized at every location and did not allow any ability to benchmark compare or look at best practices These concerns and requirements drove JCI on its scorecarding journey

The Solution

In initiating its scorecarding solution JCI first had to establish the right measures Business leaders were chosen for all of the scorecard categories and for each of them a business owner was selected for each region these business leaders and owners were responsible for defining the standards and measures Data collection systems in some cases proved difficult there wasnrsquot always centralized information available ndash in some cases data needed to be gathered right down at the account level This meant that the process of data collection and identifying measures was a significant job To get started though JCIrsquos web programmers were able to put up some scorecards quickly to allow the company to start architecting measures this allowed business leaders across the globe to start identifying their measures and to put the processes in place regionally to collect information

Before committing to a technology JCI wanted to know 100 percent of their business requirements and this was the point of their web-based scorecard To assist in this endeavor Actuate ndash prior to selection ndash let the company test drive their product The JCI team went through and looked at every single screen determining where they had to configure the tool and for every single screen they also made what they called a lsquoblueprintrsquo creating an Excel template with fields to correspond with every field on each screen It was incredibly detailed work but they wanted to ensure no mistakes were made and that the business requirements were defined To accomplish this there was an extreme amount of detailed coordination globally with twice-weekly meetings for the worldwide team in charge of the initiative A byproduct of the process was that the team learned to use the Actuate BIRT Performance Scorecard and basically built all of the blueprints for the project design

JCIrsquos audience for the project upon kick off were the 300 external customers that would have access to this information Customers previous to this were getting their information via Excel and PowerPoint In addition to these external customers was the population of approximately 1000 internal users within JCI itself These included account leaders and functional leaders including those from HR Finance Safety etc

Three primary functions of the project were

1 To replace the PowerPoint slides used in global and regional monthly internal operational reviews

2 To very quickly be able to become best in class JCI wanted everyone who had an account to be able to see where they sat compared to their peers This provided individuals ndash when faced with a problem ndash the ability to quickly identify and contact others who had solved the same issue

3 To standardize customer faith in contractually required performance measures This was a key goal of the company which felt that if they were going to benchmark and compare they needed to bring in the best practices learned at one location to their work at other locations

These three primary functions were heavily loaded in JCIrsquos rating system as the company set out to choose the right software for their scorecarding project It was also important that the software be intuitive as there was no time for hundreds of hours of global-wide training The software had to be rapid and easily configurable with limited IT assistance As JCI is a very large organization with a lot of systems in place the team in charge also wanted the software to be easily adjustable to the companyrsquos rapidly changing business they didnrsquot want to have to get into queue for IT every time a change had to be introduced or a new customer added

JCI Chooses ActuateFour vendors were evaluated for JCIrsquos scorecarding project with a global team in place to provide a systematic discussion of the defined business process and requirements The product chosen was the BIRT Performance Scorecard JCI had 30 days of Actuate Professional Services and planned for monthly micro improvements and quarterly macro improvements

Upon purchasing the BIRT Scorecard in January 2007 using the blueprints theyrsquod established already the company wrote their business processes They were able to go live in 90 days helped by the homework they did with the blueprints the web scorecard and the data collection processes It was an incredibly smooth implementation overall

The Results

Whereas JCI originally started out with a model of one-off negotiations with customer measures the scorecarding project has led to approximately 70 percent agreement on JCI standard metrics The company does a customer satisfaction survey both annually and quarterly and aims to demonstrate evidence towards continual improvement

Since implementation of the project the company has also been solving its data integrity issues Previously two regions might have been using the same words but not the same data collection methods ndash this made it impossible to introduce benchmarking and comparison between areas Now those problems are being solved and benchmarking and comparison are possible to the benefit of both JCI as it strives for best-in-class status and its customers

By David F GiannettoCEOThe Telos Group

Johnson Controls Incorporated (JCI) is a $38 billion company with a total of 140000 employees working out of more than 1300 locations in 125 countries worldwide Headquartered in Milwaukee Wisconsin the company provides a range of services including

real-estate portfolio management property management facility management and design and construction services

To initiate its scorecarding project JCI began by creating five categories of measurement Business Performance (this includes all financial measures) Service Delivery Customer Satisfaction Safety and People While the other four categories may be typical to most organizations the Service Delivery category was designed to take JCIrsquos measurements down to the client-site level which includes over 300 locations globally where the company has contracts In some cases there might be one staff member assigned to manage a single building while other times a staff member has a whole portfolio they maintain Measuring performance at all of these locations and levels proved a complex undertaking

Strategic Initiatives

Like all service providers JCI has to demonstrate that they add value Scorecarding allows them to do this both internally

and externally using data-driven results Since JCI has always been very much a data-driven organization anyway with a manufacturing background this was a natural fit for the corporation

JCIrsquos organization-wide motto is to be as good everywhere as they are somewhere Theyrsquove found that in any one account they may excel in several areas but perhaps not in all areas elsewhere though on another account someone else might have the skills needed to fill in those gaps The companyrsquos goal was to share information and communicate it between different locations across the globe allowing the company as a whole to get better faster and to benefit from the skills and strengths of its individual members Scorecarding was introduced as a way to help share this information and to introduce benchmarking within the company

The Requirements

To get started on their scorecarding initiative JCI examined each of their US contracts What they found was that there were no standards between clients and therefore no ability to benchmark Customers though wanted the ability to find out how they stood in relation to other customers This was impossible under the circumstances

Global Operational Excellence and a Performance Scorecard System A Case Study of

Johnson Controls Incorporated

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Vol 6 Issue 2 2009

Out of Touch With Crucial Data

Previously when Helzbergrsquos divisional and regional vice presidents went on the road access to their key performance metrics was restricted Without a laptop and a WiFi or hotel network connection to the internet they were ldquoflying blindrdquo according to Greg Backhus Helzbergrsquos Director of Data Warehouse and Decision Support Systems As a result they did a lot of faxing it was the only way they could get the current data that they needed in order to

About Webalo

Webalo technology transforms enterprise applications and data to make them compatible with mobile

devices This eliminates the need for traditional custom programming reducing the deployment of mobile applications from weeks or months to in most cases less than a day The resulting ldquoanywhere anytime on-demandrdquo availability of enterprise data on handheld devices turns such devices into viable alternatives to desktop laptop and palmtop computer hardware and lets mobile employees work more productively ndash on the spot ndash to solve problems answer questions monitor operations close sales and make informed decisions

The Webalo Mobile Dashboard Service ndash available in both internet-based and enterprise intranet-based implementations ndash lets non-IT business administrators securely specify the content of mobile-accessible information and the companion Webalo Proxy Server configures it in seconds to conform to the native user interface of any BlackBerry Windows Mobile Pocket PC Palm Symbian or Java-enabled smartphone

CLARITY CUT AND CARATSHow Helzberg Diamonds Made Sales Data Clearer Eliminated

Delays and Lightened the Load for its Divisional Executives

A diamond may be forever but a lot has changed in how theyrsquove been marketed and sold during Helzberg Diamondsrsquo nine decades in business A single store has expanded to nearly 300 locations from coast to coast and border to border Sales can also be made online now And information about every sale can be accessed in an instance through the companyrsquos enterprise systems

bull Compare actual sales to their goals and plans

bull Determine transaction counts for total dollar volume and average sales value

bull Break down sales by product category

bull Monitor attachment rates for products and services related to the main product sale

For example onsite at individual stores it was difficult to gauge how an active price-reduction sale was affecting unit and dollar

volumes unless there happened to be a coffee shop next door with a WiFi connection that would let Helzbergrsquos executives access the enterprise system

The Three Cs of Information Access

The three Cs of diamond grading ndash clarity cut and carats (or weight) ndash turned out to be applicable to data access as well But it took a transition to handheld devices and to the Webalo Mobile Dashboard to achieve it

Though laptop computers had gotten lighter and lighter over the years they were still considerably heavier than the Pocket PC-based smartphones that Helzbergrsquos executives used Since they were carrying those handhelds in addition to their laptops the VPs were open to the idea of being able to

bull Access sales metrics on their handhelds

bull Have data available on-demand from any location with a wireless signal

bull Navigate quickly to the figures they needed

bull Get updates to their metrics automatically

bull Review the information offline

It was the only time that carrying less weight ndash or carats ndash added more value Using a simple step-by-step wizard Helzbergrsquos support staff was able to configure their enterprise reports in a matter of hours They then assigned access privileges to each executive to control who could see what information and uploaded the file to the Webalo server That satisfied how data was ldquocutrdquo

For each mobile user regardless of the brand and model of smartphone they used the Webalo Mobile Dashboard conformed the information to the devicesrsquo user interface The application worked and looked exactly like any other application developed specifically for their mobile devices the on-screen text was easy to read and navigation used the same menu structure That meant there was no learning curve to delay user acceptance and productivity Clarity was essential and the Mobile Dashboard delivered it right down to the ability to bookmark commonly-referred-to displays for instant reference enhancing on-the-spot productivity even more

Speed and Simplicity

Productivity was also improved on the IT side Without the need for custom programming to conform the information to each smartphone brand and model deployment was reduced from months to hours

Since adopting the Webalo Mobile Dashboard Backhus says ldquoThe Divisional VPs find it invaluable They get more done because they donrsquot have the delays they used to haverdquo Decisions that used to have to wait for current data are now made right away relying on the right data presented in the right format

44

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Vol 6 Issue 2 2009

Sustainable practice has graduated from being market hype

to becoming a strategic initiative important for driving a successful enterprise It not only reduces a companyrsquos impact on the environment but can help organizations achieve a competitive advantage to build their brand impact top and bottom line and improve customer acquisition satisfaction and retention

Creating a road map towards sustainable management can require an entire shift in corporate thinking one that involves searching for buy-in at all levels establishing useful metrics and introducing practices that get beyond the green hype The end result though is not just a greener organization but also one with a more prosperous future

Why Sustainability

In August 2008 a survey undertaken by CIO Insight examined green practices in business focusing on the reasons why CIOs introduce sustainability efforts into their organizations The number one reason why organizations went green the study found was that the people within those companies sincerely had a concern for the environment A total of 74 percent of respondents answered that way 32 percent of which listed it as their most influential driver

Other influential drivers named in the survey included

Financial Drivers Companies found sustainability to be a way of cutting costs If they could cut energy costs not only would that help the environment but it would also help create cost savings The second most popular answer in the CIO Insight study financial impacts are key to implementing sustainability in most organizations Examples of financial impacts possible from sustainability were presented at CFO

2 The CFO Green

Conference which took place in May 2008

bull Dupont reduced its CO2 emissions by 70 percent saving the company $3 billion

bull FedEx redesigned its delivery trucks making them more aerodynamic This reduced the amount of particulate pollutants nitrogen and carbon the trucks put into the atmosphere and it also reduced the companyrsquos fuel costs exceptionally

Customer Image In the CIO Insight survey the third motive listed by CIOs for introducing sustainability ndash at 64 percent ndash was company image Consumers are becoming more and more aware of whether companies or organizations are living up to sustainability ideals They will notice if a company image or brand value reflects this concern for the environment Meaningful sustainability efforts can help gain customer approval as in the following case

bull Wal-Mart and Procter amp Gamble together agreed to sell liquid laundry detergent only in concentrated form This saved shelf space for Wal-Mart reduced water use by 400 million gallons for Procter amp Gamble and eliminated 45 million pounds of plastic waste

Regulatory Requirements The surveyrsquos fourth most popular reply ndash at only 25 percent ndash were current or potential regulations including the cap and trade systems being implemented which will require companies to buy carbon and sell carbon credits

Shareholder Pressure Finally at fifth in the CIO Insight survey ndash with 14 percent of responses ndash was shareholder or public pressure pressure building from shareholders to put forth sustainability efforts Pressure at this level is often mixed though as shareholders are also likely to express a desire that they donrsquot want shares to decline in value The general message may be that it is fine to introduce sustainability measures only as long as there is no risk that they will hurt the company

A Road Map Towards Sustainability

Step 1 Identify What Drives Your Organization

The first step in the road map towards sustainability is identifying key drivers Some drivers vary from one organization to another while others seem to drive any organization regardless of the industry Drivers incude

Internal drivers

bull Cost cuttings and savings

bull Employees including both the satisfaction of current employees as well as the recruitment and retention of future employees

bull Investment

External Drivers

bull Stakeholders including both those within the company ndash the employees discussed above ndash as well as stakeholders outside of the company

bull Brand awareness because consumers are becoming increasingly aware of the choices that are available to them and are making choices based on a companyrsquos green initiatives

Future drivers

bull Tax incentives

bull The recruitment and retention of future customers

Step 2 Select Your Metrics

In general terms sustainability metrics will fall into one of four major categories those that affect the climate those that affect the oceans those that affect human health and those that affect common issues like the land the water the wildlife etc

Within those large categories are smaller areas of interest that companies must examine to introduce organization-wide sustainability management carbon monoxide use energy consumption water consumption and fuel consumption are prime examples

Carbon Monoxide Use Many of the questions companies are asking themselves in regards to carbon monoxide use include

A Road Map of Key

Sustainability Metrics

That Impact Bottom

Line

46

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Vol 6 Issue 2 2009

bull How much carbon monoxide do we produce

bull Which processes in our overall manufacturing or delivery use produce the most emissions

bull Can we determine the indirect emissions For example leave a computer plugged in and itrsquos still on the grid creating an indirect carbon dioxide emitter How can we measure that

bull Whatrsquos our cost Do we have metrics that tell us what our CO2 emissions cost us

bull Can we predict into the future If we continue on this path without doing anything where will we be next month Next quarter Next year

Some examples of metrics related to carbon monoxide use include carbon dioxide emissions per employee (similar to revenue per employee) carbon footprint metrics and transportation distances

Energy Consumption Areas of interest related to corporate energy consumption may include the following

bull How much do we consume From what sources

bull Are we on the grid Are we using solar power or wind power or another alternative power

bull How much is used by our data center How do we make the data center greener

bull Where can we reduce consumption

Companies today are reducing energy consumption in a variety of ways by introducing energy audits and looking at energy-saving appliances and also through energy incentive programs for employees within which companies can incentivize and introduce bonus plans

Water Consumption An examination of a companyrsquos water consumption may include some of the following queries

bull How much water do we currently use and where

bull Where in our processes do we use the most water

bull Can we predict how much wersquore going to use in the future

Some of the examples of metrics that companies introduce in terms of water consumption include improved water quality how much impact low-flow or low-volume toilets have on water consumption and how much water is or can be recycled

Fuel Consumption Questions to consider in relation to fuel consumption include

bull How much fuel do we use

bull Where are the inefficiencies

bull Whatrsquos being predicted for fuel usage in the future

bull Can we analyze our logistics so that we can determine how to reduce our fuel consumption For example where are our trucks traveling How are they traveling What kinds of loads are they carrying

Step 3 Recognize Challenges

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly As such easier ways to enhance communication and to increase visibility need to be introduced both inside and outside of an organization

There are also constantly evolving requirements measures and standards of success With everything so new companies are challenged to find ways to compare their sustainability efforts with other organizations The biggest challenge in implementing these processes or attracting metrics may be that they require an entire shift in thinking Additional challenges that exist in the implementation of a sustainability model include

1 Financial concerns Companies must truly see potential for returns on investment or these initiatives can become non-starters or stall

2 Lack of regulatory motivation While not as common as it once was certain organizations arenrsquot motivated to introduce sustainability until government regulations are in place

3 Lack of a formal strategy for sustainability Without a formal strategy it is difficult for companies to determine where they need to go

4 Determining appropriate metrics Companies must choose metrics that are useful demonstrate impact and say something about their own corporate environment

5 Calculating metrics Standard algorithms and calculations exist to calculate metrics but companies must find the appropriate ones and use them

6 Finding quality data to plug into those calculations As in any Business Intelligence project if the quality of the data is questionable then so are the sustainability metrics themselves

7 Determining the scope of the sustainability project The scope is critical Narrow it down to something achievable feasible and useful

Step 4 Learn from Best Practices

What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde

bull Assign an executive champion Without an executive champion to drive the project initiatives are more likely to lack a holistic view and a clear vision for an implementation strategy they may take longer to implement and theyrsquore less likely to yield the required results To provide motivation consider linking the championrsquos salary directly to sustainability savings or to the increased revenues that result from sustainability efforts

bull Implement internal training and education Educate employees on what to expect and what is expected from them

bull Improve communication Communicate both to employees and to stakeholders outside of the organization

bull Start to think about alternative energy management and control strategies

bull Engage the use of technology and services For companies not sure where to begin a sustainability consultant can assist with program selection as can vendors such as Actuate which has a sustainability management solution in place

Step 5 Get Started

Understand that sustainability development is a business opportunity Donrsquot look at it solely as environmental although that is also important Itrsquos an opportunity for companies to introduce more cost-effective processes and procedures and to become more cost effective in their vehicle fleet manufacturing delivery etc

bull Create globally consistent metrics and goals Large agencies have to make sure that the entire group is on board and that they have consistent metrics and consistent goals across the enterprise

bull Find the value and drive the action What is the value of monitoring these sustainability areas and whatrsquos the course of action if you see that theyrsquore going off kilter or are not tracking as expected

bull Start small Initiatives such as these can become incredibly complex very quickly Start small and build in the complexity with each ensuing project

bull Get buy in People need to understand what the metrics are why theyrsquore there and what they mean to each individualrsquos situation (as reflected in individual bonus plans perhaps) Measure using industry-accepted methodologies and industry-accepted protocols continually improve metrics through optimization and forecasting and constantly optimize metrics and forecast into the future

bull As much as possible accurately report to everybody environmental performance Let employees shareholders customers and regulators know If data is questionable fix it get quality processes in place and then run the metrics

bull Determine environmental impact Has waste been reduced Has resource utilization been reduced Has the company improved environmental factors

Also consider using an Open Source vendor The Open Source community is beginning to develop sustainability metrics and Open Source reduces the costs of developing metrics while software costs for the project are reduced as well

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly ldquo

rdquo What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde ldquo

rdquo

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Vol 6 Issue 2 2009

Step 6 Move from Green Hype to Sustainable Action

A successful sustainability initiative involves identifying metrics that will translate into cost savings and benefits while avoiding metrics that are not likely to yield required results To accomplish this start small start with a small department within the organization and then repeat this continuing to repeat it throughout the enterprise

bull Start with basic conservation Change behavior reduce consumption and in the process increase investment

bull Start reusing Improve productivity improve efficiency and create less waste

bull When this translates into cost savings re-invest Grow make larger improvements and increase involvement

Projects that make good starting points

bull Measure carbon dioxide emissions throughout a value chain or product lifespan Look for potential improvements

bull Ensure regulatory compliance By knowing what the regulations are companies can determine what metrics need to be in place

bull Identify ways to promote and profit from more environmentally-respectful goods and services Companies can promote environmentally-respectful goods and services while also using sustainability to help the company

Monitor the effects of each project to determine which strategies have the most impact both physically in terms of

the environment and financially in terms of revenues and cost savings Publicize how metrics are tracking over time

Actuate for Sustainability Management

Actuate for Sustainability Management is a solution by Actuate that integrates highly interactive visually rich dashboards There are pre-built sustainability scorecards strategy maps and over 100 pre-built metrics across the economic social and environmental aspects of sustainability

The Actuate BIRT Performance Scorecard supports the metrics defined including

bull Reducing an organizationrsquos environmental footprint

bull Building green facilities and buildings

bull Compliance and reporting

bull Manufacturing

bull Community and engagement

bull Human development including employee well-being and satisfaction

Actuate for Sustainability Management provides collaboration across regulators consumers and non-governmental organizations Dashboards and scorecards come integrated with reporting so as to improve reporting to stakeholders both outside and inside of an organization All of the products are built on Actuatersquos dependable cost-effective and scaleable platform

Performance Management solutions help organizations understand act on and influence business decisions processes and measures of business success The 2009 Actuate Performance Management Excellence Awards will honor customer success stories in four key areas Over the next several issues Perform Magazine will highlight some of the entries in these categories

Category 1 Go Green

Each year the concept of environmental responsibility has implications for both the private and public sector specifically with regards to how each measures the performance of their operations For organizations using the Actuate BIRT Performance Scorecard to measure the progress of organizational Green initiatives how have they responded to the challenge and how do they use the BIRT Performance Scorecard to ensure they stay on track

Category 2 The Perfect Slice

Successful Performance Management comes in all sizes Some initiatives are enterprise-wide while others are focused around specific business units or functions yet still encompass a holistic approach to Performance Management by looking beyond financial indicators to a more balanced set of indicators This category includes organizations deploying the Actuate BIRT Performance Scorecard with a focus on improving the performance of individual business units or functions and includes the measurement of people and processes

Category 3 Big Bang

Carefully executed Performance Management initiatives begin with a measured approach to the initial implementation and quickly expand to other parts of the organization aligning business units to strategy at each step This category is open to Actuate customers who initially implemented the Actuate BIRT Performance Scorecard to a limited user community and through careful change management and planning expanded the use of the BIRT Performance Scorecard throughout the organization

Category 4 Super Size

Award-winning enterprises achieve breakthrough results in the financial customer operational and people perspectives of their business and leverage internal champions across the organization to ensure ongoing and sustainable success The key to achieving these results lies in total visibility of all business units aligned to strategy This category is open to any Actuate customer with a fully deployed enterprise-wide Actuate BIRT Performance Scorecard implementation

Actuate Performance Management Excellence Awards2009

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HealthNow New York Inc headquartered in Buffalo is one of New York Statersquos leading healthcare companies doing business as BlueCross BlueShield of Western New York BlueShield of Northeastern New York HealthNow in the Central New York region and Brokerage Concepts Inc in Pennsylvania

Improving the health of people and communities are HealthNowrsquos corporate priorities and for more than 70 years the company has been a proactive partner in health working to improve the quality of care and the quality of life for everyone it serves In 2008 HealthNow provided access to care to more than 820000 members and in 2008 company revenues grew to $227 billion

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution and describe what you were trying to achieve as a group function or department

A few years ago HealthNow New York Inc determined that the key to its continued success would be its ability to differentiate itself from other healthcare plans in ways that could not be readily duplicated or copied by their competitors In an increasingly crowded marketplace to get the attention of new customers and retain existing ones HealthNow needed to set itself apart from others

This lasting competitive advantage needed to come from an organizational culture that was dedicated to a relentless focus on meeting customersrsquo needs It needed to be highly responsive supportive flexible and nimble particularly as the healthcare marketplace continues to change with more responsibility placed upon its customers

To that end a new business model was implemented to provide the framework for customer focus Under the new structure the company was divided into four strategic business units (SBUs) each responsible for financial contribution customer satisfaction medical utilization and market share of a specific book of business

Each SBU includes its own set of functions including sales account and broker management product configuration customer intelligence pricing enrollment and billing customer service medical management and HR support Each business unit is led by an executive who is fully accountable for the unit operations and for bottom-line performance of the entire business unit Each SBU is supported by various corporate support functions (Actuarial IT Legal etc)

Implementation of the new business model began with a reorganization of the senior management structure The senior management of each SBU has specific incentive goals as well as strategic goals aligned with the corporate incentive Those strategic goals then drill down to ldquoteamrdquo incentives and to a blend of strategic and operational goals

This was a completely new way of looking at our business It was a blank slate requiring new processes and new methodology as well as an examination of existing metrics and processes to determine what added value and where the strengths weaknesses opportunities and gaps were

Under this new structure the Government Programs State and Federal products SBU ndash which historically had some inefficient end-to-end processes lacked internal controls and had minimal oversight of financial performance ndash was able to set a foundation and develop a growth strategy In order to achieve this mission and to align track monitor improve and communicate performance the Senior Vice President of the Government Programs SBU elected to utilize a Performance Management framework via the Actuate BIRT Performance Scorecard

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

As a point of reference the Government Programs SBU is comprised of a State Government Programs team a Federal Government Programs team an Operations team and a Sales team The Performance Management design team was comprised of the Actuate system administratorfacilitator the Government Program financial reporting manager and two SBU data analysts Input from the various teamsrsquo management staff was gathered as the design got more granular

Discussions around the design of the Government Programs scorecard began with two basic questions

1 What are the handful (ideally six to eight) of key performance indicators that are necessary to run and manage your business and to indicate that yoursquore on the right path to achieving your goals

Defining the key performance indicators was a challenge that required the Actuate system administrator in a facilitative role to get intimately involved in order to keep the discussions focused and high level and to limit scope creep The incentive goals were clearly defined at the corporate and SBU level however the tough question was how should they drill down in the BIRT Performance Scorecard The facilitator posed the following questions to the other members of the design team

bull How do you usually look at your business

bull How are the primary source documents that capture this information structured

bull What other ways do you look at your business

Taking the answers to these questions a step further the facilitator asked the next question Is the drill-down structure the same for the core strategic or team metrics The answer was yes By taking this approach we were provided with consistency in how the teams look at their business and the performance of their core indicators

Once the incentive and strategic goals were identified more leading and lagging operational measures were defined such as

bull Call centers

bull Accuracy

bull Quality

bull Sales Performance

2 Who is your audience

Through the entire measure selection and definition process the design team was constantly reminded to keep a second question ndash who is your audience ndash in mind This helped keep the focus on the critical few and keep the number of metrics down to a manageable amount Links to supporting documentation were created to provide easy access to the granular data without burdening the scorecardrsquos objective

The audience in this case was the SBUrsquos Senior Vice President followed by the State Director Federal Director Operations Director and Sales General Manager It then cascades down to each directorrsquos management team and the data providers

In order to provide a complete and consistent picture of State and Federal performance for senior management where

gt Performance Management Excellence Awards

HealthNow New YorkCategory 2 Entry The Perfect Slice

gt Performance Management Excellence Awards

[ Figure 131 Homepage Map ]

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Vol 6 Issue 2 2009

possible the same or comparable measures were created for each team For example when looking at the various call center metrics ndash even if the definitions and targets slightly differed ndash if one team was consistently exceeding or meeting their target it sparked group discussion around best practices processes staffing and target definition

Utilization of Maps continues to play a major role in communicating performance Again focusing on our audience there is a Map at the Senior VP level which then links to a high-level Map for the State director and staff and for the Federal director and staff The one-page snapshot allows management to easily view performance then to drill down to specifics via additional detailed Maps or Books Because the audience embraces the Maps concept a ldquoWhere is itrdquo Map containing all Maps and Books by SBU was created Itrsquos a quick and easy reference tool

3 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

Quantitative results are achieved through the promotion of visibility and awareness The Return on Investment may not fit a conventional definition but can be measurable and accomplished by challenging the data targets and accompanying commentaryaction plan narrative to drive performance improvement Are the targets realistic yet aggressive Are action plans being documented and carried out Are the actions discussions and decisions leading to improved performance and processes

Government Programsrsquo membership is measured and monitored in various ways via the BIRT Scorecard and other sources For example Federal membership is measured by product then by plan It is also measured by market then by product then by plan By creatively visualizing performance in multiple ways via a Map those same data results can sometimes become very obvious telling a different story that may not be obvious via standard reporting methods It may clearly illustrate that a specific product in a specific market is continuously under-performing for example Fact-based decisions can then be made as to whether or not to continue with this product in this market or it may initiate discussions as to how to grow and retain profitable membership for this product in this market

Another more recent example is an initiative to track claims-review savings By reviewing claims via various processes what savings can be recouped or realized What specific areas are State and Federal teams focusing on that can contribute to overall savings for the SBU Again where applicable there should be consistency in the metrics across

teams Placeholders are included to promote visibility to keep them in the forefront even though the data or processes may not be in place yet But by capturing results on one page via a Map it bridges potential gaps between the teams promoting awareness and synergy across the SBU

4 Qualitative results What ldquosoftrdquo or intangible benefits has the group department or organization received as a result of this solution

A major benefit of the scorecard framework for the Government Programs SBU has been the identification and alignment of roles responsibilities and accountability

The SBUrsquos Senior VP monthly leadership meeting focuses on four areas

bull Performance Performance is covered via the existing incentive strategic and operational metrics

bull Action plans Documenting action plans in the Performance Management Software Suite versus verbalizing action plans establishes ownership and accountability At subsequent meetings management follows up on key action items or plans to determine whether or not the corrective action did take place and if yes did it have the desired results

bull Strategic direction The strategic direction of the various teams is captured as a springboard to strategic thinking discussions and planning So as not to lose sight of short- and long-term strategic planning this aspect of the business now is housed in the BIRT Scorecard completing the strategic planning of the ldquoHow are we going to get thererdquo and ldquoAre we there yetrdquo cycle This holistic approach helps minimize the chances of our scorecard becoming too focused on operational performance and keeps strategic planning dynamic and visible

The value of these metrics is not in the data but in the commentary The individual teamsrsquo strategic direction ldquometricsrdquo are subjective red = 1 yellow = 2 green = 3 The target = 3 Each metric includes a description of the specific strategic path we need to research or move forward on as well as what goal achievement it supports The ldquodatardquo ndash or color ndash is based on basic questions like What did you hope to achieve this month vs What did you actually achieve this month Were there any successes barriers obstacles In addition to accountability the entire SBU benefits from the sharing of information having meaningful discussion taking appropriate action and collaboration

bull Key initiatives The last critical component is the identification and alignment of key initiatives that

are necessary to support achievement of the various incentives strategic goals and direction and operational goals As with the strategic direction metrics the value is in the narrative with the color reflecting what was accomplished for the specific reporting period

5 Innovation Why should this solution be considered an Innovative Solution What makes it unique groundbreaking and superior What unintended results did you realize

Over time the Government Programs Performance Management framework evolved into an innovative solution The process drives performance and isnrsquot necessarily focused on ldquocolorrdquo Rather itrsquos about having the right people in the same room on a regular basis to drive meaningful discussion and to take appropriate action to improve performance

Outside of the standard processes it was the monthly review process that drove effectiveness revisions enhancements and restructuring of the meeting schedule agenda and format The Government Program financial reporting manager would meet with each director and general manager to review their scorecard for completeness as well as for performance from an operational perspective The State and Federal team directors would then meet with their respective management teams to review and discuss performance results in preparation for the joint Government Programs Leadership Meetings The audience included the Senior VP down to team managers key data analysts (data providers) and support function representatives Through trial and error management learned to maximize their time and effectiveness by concentrating on key metrics and topics rather than trying to review all metrics identify leading indicators versus only outcome results and include strategic thinking and initiatives Today the monthly leadership

meetings are much more productive and look at strategic and operational performance

As involvement and participation increased in the team meetings as well as in the leadership meetings it removed silos opened communications enabled the sharing of information and best practices and promoted teamwork across the SBU But most importantly it brought about an awareness and a sense of unity and commitment within the SBU to achieve their goals something that was lacking before

While it was not part of the initial scope management realized shortly after implementation that efficiencies could be gained by replacing an in-depth hard copy monthly report with BIRT-generated results Since the BIRT Scorecard contained the same data with supporting narrative ndash plus additional metrics with narrative ndash monthly performance was captured via a monthly report Book various Maps and BIRT-generated reports Elimination of the hard-copy report was an unintended way of encouraging a more active use of the Performance Management software by management to monitor performance thereby increasing user familiarity with the contents features functionality and navigation

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

Sustainability is achieved through a continuous process of revisiting the scorecard when there are organizational changes looking at the business direction shifts goal changes process changes etc To ensure that metrics are still relevant a filtering process is held with each director and general manager every six to eight months or as necessary During this exercise questions such as the following are asked

gt Performance Management Excellence Awards gt Performance Management Excellence Awards

[ Figure 132 CEOrsquos Book ]

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Vol 6 Issue 2 2009

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

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3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

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Page 10: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

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In todayrsquos economic climate careful decisions are needed to help

business remain competitive and to continue to succeed To stay smarter they need to build deploy and maintain business-critical reporting and information applications

Open Source Business Intelligence while it comes with its own set of technical challenges and misconceptions is often the right solution to deliver that Actuatersquos Business Intelligence Reporting Tools (BIRT) Open Source solution ndash developed with the Eclipse Foundation ndash is one example of a robust and web-centric Open Source Business Intelligence tool

The Open Source Model

An economic shift has occurred in the past decade introduced with the rise of the internet The internet provides connectivity which in turn connects demand to supply this removes the capital equation and shifts conditions in the market People with computers all over the world provide the means of conduction and with easy ways for these people to connect they can easily collaborate on projects with very little infrastructure This in turn led to the popularity of Open Source

Open Source has had many consequences for the enterprise software market primarily by making it a commodity market and by driving down price It also allows people who have a desire to do something to make money from doing it Production inputs are widely distributed and the raw materials are there to produce things in new ways Many argue that this shift has been about software licensing but actually it is largely about the production and distribution of software it is therefore a change that is more about economics that about ideology That economic base ndash the combination of connectivity of easier ways to market produce and distribute software and the fact that the internet acts as a giant copying machine ndash changes the conditions under which software can be sold That is why Open Source continues to disrupt the market and to force vendors to come up with new ways to cope with it Enterprise software is not going away rather it has been forced to shift

A 2008 survey by North Bridge Venture Partners asked Which sector of the software industry is most vulnerable to disruption by Open Source At the top of the resulting list was web publishing and content management a market thatrsquos currently highly fragmented and therefore perfect for introducing Open Source products The second sector was social software an entirely new category that has been difficult to define and difficult currently for commercial vendors to make money from again Open Source is the ideal solution

Business Intelligence was the third sector listed in the North Bridge survey Again this is understandable since BI tools and data warehousing tools are exactly that tools While end users consume the outputs theyrsquore not themselves often put into the hands of end users rather IT sets up the meta-data defines metrics etc Which means Open Source is targeted at the right audience there is a platform in a data warehouse that has multiple layers any one of which can be Open Source or

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proprietary Those modular boundaries make Open Source an ideal fit

What IT Looks For

IT acts ndash for the most part ndash as the gatekeeper to Business Intelligence When searching out new software IT generally looks for three things

1 Better alternatives to the status quo Specific features that are better for example

2 Ways to cut costs With commodity infrastructure in place IT has to try to drive down costs

3 Unique attributes There may be something they want to do but cannot do using their current system or features that might not be available (For example their mainstream BI package might not have web-accessible dashboarding that can be self-service)

Why Open Source

In addition to examining the sectors left vulnerable by Open Source the North Bridge Venture survey also asked What makes Open Source attractive Price was the most popular answer In addition to the capital cost of licensing Open Source drives down acquisition cost as companies no longer have to go through heavy proof of concept Itrsquos also easier to trial things and if license costs are less then maintenance costs are also less Finally unbundling maintenance support and service means that businesses can choose from a menu of services instead of being forced into a 20 percent single lump fee

The study also showed that companies found that Open Source offered freedom from vendor lock-in In addition it is flexible with easy access to commodity code in order to develop embed and build content into websites

Another 2008 study by The 451 Group gave a list of what organizations saw as benefits to Open Source once it was already introduced At that point flexibility ndash by 05 percent ndash came out over cost In this instance though the definition of flexibility was different respondents were impressed by the fact that there is no vendor that dictates when they have to upgrade how they have to upgrade and why they have to upgrade For a commercial vendor at end of life or desupporting versions of their software a sales and marketing schedule will often require a release every Q1 whether they are ready or not As a result

companies will be forced into an upgrade they donrsquot want that was released simply because marketing dictated it and not necessarily because it was ready Open Source is typically not under those same types of pressures

Buyers were also impressed by scaling costs if an organization has 50 initial licenses and pushes it out to 150 more people in BI lowered costs come in beyond the initial capital costs As well companies are not dependent on vendors for service or for additional pieces of technology

Whorsquos Adopting

Open Source Business Intelligence adopters include

bull Independent software vendors solution providers and OEMs They are taking Open Source BI and pushing it into products that need reporting and dashboards Theyrsquore beginning to build capabilities using Open Source into quality networking gear file servers and databases

bull People who have traditionally been underserved and have not been getting what they need for whatever reason They may not have had the budget or their current vendor might not offer some of the functionalities that they want Possibly it could be over-serve at least half of the features in a major BI stack today never get used

bull Developers Web developers provide information ndash especially database information ndash on their websites while internal developers have to build reporting features into applications and typically do not have access to the tools they need Tools like BusinessObjects and MicroStrategy live in a data warehouse in a different area of the organization and canrsquot be embedded easily

In terms of the organizations adopting Open Source BI many are on the small side with less than $100 million in revenue But very large organizations are just as likely to adopt Open Source solutions as well This is the inverse bell curve of Open Source BI implementation

Smaller-sized organizations have fewer data sources and more manageable data volumes are more interested in cost flow and also donrsquot have the same level of data volume and complexity that might exist in a medium-to-large organization or deployment Much more manageable data volumes less cost to scaling and fewer technology issues in terms of complexity make these ideal environments for Open Source

Open Source drives down acquisition cost as companies no longer have to go through heavy proof of concept ldquo

rdquo Large organizations though have equally ideal environments They arenrsquot for the most part introducing Open Source at an enterprise-wide level but rather have projects with specific features that need to get done The project in question may exist only within a single department which pushes down data sizes and deployment complexities making them a good target

Introducing Open Source BI

Open Source BI use often comes in at the edges and results from discontinuity An example of such a discontinuity might be a company restart many data warehouse projects started with a particular data model ndash copying a production database and putting reporting on it for example ndash and have to do a schema change At that point the cost of switching from one BI tool to another or from one ETL tool to another is fairly low Everything has to be changed anyway metrics change schemas change queries change The same is true with platforms moving from one database to another involves an integration of an entirely new set of systems These discontinuities often allow for the introduction of Open Source

New interface requirements can also lead to Open Source implementation as a company attempts to bring data-warehouse data into an application deploying it out through a website or via an application But some users may only need a few single simple production reports and donrsquot need to be served through a tool that costs between $1000 and $1500 per seat which is the average per-seat deployment cost of iTools Companies can reserve their BI tools for core individuals who need the flexibility and features and can build Open Source into applications for large-scale but simple reporting

In fact in most cases organizations donrsquot replace an entire system with Open Source That only happens in the cases of large discontinuous change where the features are good enough in an Open Source tool the deployment matches and there is no reason for pushing through a high-cost high-complexity solution Whatrsquos more likely to happen is an augmentation where a particular department ndash or a segment of users or particular class of tool ndash is given something that they need in Open Source For example a BI tool might be good and flexible with interactive reporting that can get production reports out and do the schedule but perhaps doesnrsquot have statistical features rolling out something like R to only a couple of analysts and layering that on top of the warehouse may be the solution

Augmenting and bringing in new features and capabilities in areas where Business Intelligence tools might be weak is typical of Open Source implementation This is an opportunity to augment an existing environment in a cost-effective manner to build features into that environment and to get the features specifically needed without paying for a whole package that isnrsquot all necessary

In contrast with what happens in the case of most traditional models much of the time the need for Open Source applications comes from the bottom-up and is established from a point of need from a developer or a department trying to get something done There are no enterprise sales representatives making calls or going through a procurement process where vendors and financials are examined There is also the ability to put something out in real terms instead of relying on a fake proof of concept where following that proof of concept companies are forced to either pull out and throw it away or to license the software

Roadblocks to Implementing Open Source

Misconceptions still exist around Open Source based largely on the idea that these projects are being developed by teenagers in their parentsrsquo basement a myth that is more than a decade outdated as today Open Source projects are generally run by commercial Open Source providers with paid developers Still a lack of information can prove a problem for organizations introducing Open Source This often plays out in the legal department which reviews all contracts and may not be informed when it comes to Open Source software licenses An Open Source license will be missing half the standard clauses the lawyers are used to clauses of restriction that dictate how to deploy what can be deployed where it can be deployed and how the software can be used Most Open Source licenses do not have these same clauses and lawyers will want to know why theyrsquore missing That can be another road bump in getting the software acquired

Support can also be more confusing Most major projects have commercial vendor support behind them But unbundling is also available which means buyers donrsquot have to purchase support but instead can buy the subscription model that covers only bug fixes integrated patch testing and certification against databases This is because enterprise support is often overrated more often than not internal support solves more problems than the vendor does

Augmenting and bringing in new features and capabilities in areas where BI tools might be weak is typical of Open Source implementation ldquo

rdquo

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Implementing Actuatersquos BIRT Open Source Technology

BIRT Actuatersquos Open Source technology was developed with the Eclipse Foundation and does an exceptional job in meeting web-reporting requirements while utilizing the Open Source model Itrsquos a Java tool with a web-centric development and design paradigm BIRT reports are built with the intent of publishing to the web exclusively or more exclusively than is the case with other alternatives that are typically intended originally for paper BIRT is also very modular and very component based allowing users to do as much or as little as they want to deploy as much or as little as they need when theyrsquore creating their reports or embedding this technology within their environment

One of the goals of BIRT is to cater to the power that is needed for many of todayrsquos reporting projects but also to offer the simplicity that means an individual report creator can be very effective at doing their job simply by using the BIRT design tool itself That goal has proven successful so far with 65 million downloads of BIRT since the projectrsquos inception 45 million of them in 2008 alone BIRT is in fact one of the fastest growing Open Source projects on the internet right now

BIRT does a great job of supporting a wide variety of report types it supports BRD Pro BRD BRS and IV and as users

build components throughout the project they can reuse those elements in subsequent future reports It also supports standards such as HTML cascading style sheets JavaScript Java and XML adding the underpinning technologies for either customization or enhancement and allowing developers to leverage BIRT while using the skills that theyrsquove already developed As an integrated report development environment BIRT also provides graphical and robust tools for the most common reporting tasks including query building ndash such as graphical object layout ndash and representing such as charting As well BIRT includes both online help and documentation

Itrsquos an incredibly robust tool and is capable of being embedded of being delivered to small groups or across the enterprise leveraging Actuatersquos commercial platform New capabilities include the ability to add interactive Flash objects into the environment to build personalized dashboards to create ad hoc reports and to create interactive viewing Actuate also recently introduced the JavaScript API which allows users to embed approximately a dozen lines of JavaScript into any webpage and from that access any content within the Actuate environment including any BIRT report that is hosted in that environment which in turn can be delivered to any type of JavaScript-enabled browser

BIRT is built in the Eclipse Project Actuate sponsors and chairs the project management committee for the BIRT project It is Actuatersquos third reporting technology built from scratch which means there is a high degree of long-term experience integrated into the BIRT environment

How the End User Benefits From BIRT

BIRT comes complete with 65 million sets of eyes worldwide looking at it and suggesting changes That has driven its enhancement in the marketplace The overall number of committers on BIRT historically is high and the current level of committers on the project remains high itrsquos nearly the same as Apache committers in the market today

Actuate ndash in its sponsorship of BIRT ndash has added and created a community called BIRT Exchange which is a resource for the BIRT development user to continue to enhance their BIRT expertise and to continue to gain help if needed from the BIRT community No question goes unanswered on BIRT Exchange which is at odds with what people often find in other Open Source forums where a huge number of questions remain unanswered from the audience Within the BIRT Exchange environment there are three different forum administrators who make sure every single question is answered BIRT Exchange also hosts the documentation for the entire BIRT product line as well as videos and webinars designed to further the training and adoption of BIRT itself

Actuate employs more than 50 developers on the Eclipse project itself with documentation and publications available in support of the project available at amazoncom

Actuatersquos Value Add

BIRT is modern and flexible and open Since itrsquos built within the Eclipse Project anyone who knows Eclipse knows how to use it Actuate adds interactivity which take the form of Flash widgets embedded into the BIRT development environment ndash allowing users to build their own types of dashboards ndash or through interactive viewing to transform a report from being static to something an end user can manipulate and evolve over time This is important because reports typically become obsolete quickly the requirements that they originally meet changes as users use the reports to become smarter and then the questions they want answered change Which means that providing this kind of interactive content is key to the success of a Business Intelligence project

Extending BIRT Capabilities

BIRT development tools and the BIRT engine are available as Open Source and are widely distributed Typical capabilities such as JavaScript and SQL skills are required to become familiar with the BIRT product

The second level of capability is the ability to embed BIRT within applications and to begin to add degrees of interactivity to the environment such as Flash widgets or the interactive viewer This allows a user to create robust rich embedded applications

The third level is for workgroup or departmental-style applications or small organization-type applications To adopt this type of Open Source technology individuals would introduce BIRT plus the single server iServer Express a hybrid of Open Source and commercial technology

Finally there are organizations that seek enterprise-caliber or enterprise-level deployments that want to publish BIRT applications outside the firewall to secure these applications for millions of users and to support very high degrees of performance and reliability This type of scalability requires both good design and trial and error as operating systems platforms and other elements continue to evolve Maintaining best performance for very large-scale environments means making sure that each one of these items is optimized

Open Source Vs Commercial Technology

The overall platform that BIRT delivers is a complete set of both development and deployment options for creating any type of environment Users can be characterized across a number of different lines from incredibly skilled Java developers to everyday report developers from people familiar with Actuate to those who are not from power users to business users etc

There are two fundamental questions that these users need to answer

1 Is BIRT the right technology for the application theyrsquore creating

2 Whatrsquos the best way to deploy it through Open Source or through commercial deployment means

The answer to the second question is reliant on a number of variables In the following situations for example Open Source would be the ideal alternative

bull Those users who want to use BIRT for individual use

bull Those who want to embed it into their own project

bull An ISV who has the technology in their own application to support printing and baked-in reporting needs

Converting to or supporting a commercial model meanwhile occurs most frequently at the enterprise-server level for organizations deploying the environment to hundreds or thousands of users It supports a wide variety of types of users

But both the Open Source and commercial models employ a common report design format Itrsquos a progressive development experience or a collaborative report design and collaborative process allowing each user to participate in the definition and the evolution of their reporting environment while at the same time using tools that are appropriate for their skills a novice user isnrsquot being overwhelmed by too many features while the power user or the highly skilled users receive exactly the right kind of technology and level of development capabilities theyrsquore accustomed to

Yet some of the decision-making criteria lean more effectively towards a do-it-yourself situation using the Open Source type

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of model and some lean more appropriately to a commercial investment and a commercial tool A growing level of complexity often drives commercial interest but certain complex functionalities ndash including supporting web services or web services SQL or other examples of integration techniques ndash the Open Source model is more than capable of supporting on its own

The applications Actuate deploys are information applications When choosing the paths of how to proceed ndash with regards to choosing either the Open Source or commercial interest ndash there are typically four premises to consider in an information application

1 Is the report or the application able to consume and collect data from one or many sources whether itrsquos a single report or a complex application Typically when the data sources are simple and the data connections well understood either Open Source or commercial interests are appropriate With meta-data layers and extraction layers the commercial model tends to be more effective But if itrsquos an embedded project using POJOs or other Open Source or specialty connectors ndash unique connectors ndash that often keeps a project more suited for an Open Source deployment

2 How is it able to aggregate and transform that data into meaningful information Looking at aggregation the same premise holds true if therersquos simple aggregate functions or automatic cross tabs or even custom or reuseable business functions both the Open Source and commercial models are appropriate In terms of embedded Java functions those aggregations are appropriate in either case Itrsquos when entering into areas of security ndash of parameter-driven values dynamic-parameter collection cascading menus etc ndash that a commercial purchase tends to excel over the Open Source version

3 What are the presentation options or formats available to present that data When the presentationrsquos fairly simple both Open Source and commercial apply When

charting cross tabs and embedded graphics are the norm then the two are served both in Open Source or commercial interests When JavaScript is starting to be used as a customization or a dynamic-properties delivery vehicle both the Open Source and commercial models are effective although keeping this content embedded within an environment is probably more appropriate using Open Source Itrsquos only when introducing elements such as interactive viewing capability or the ability to manage an environment through a management console capability that the commercial option begins to edge out

4 Are we able to achieve the levels of scale that we need to get that information out to every user whorsquos interested in it When individual use is appropriate Open Source is a better fit When transient content is what a company is delivering thatrsquos usually a better fit with Open Source as well as is embedding To support a collaborative reporting effect or to support a variety of developers and users ndash especially users with different skills ndash the shift begins to move towards a commercial style of delivery When therersquos custom delivery required such as JavaScript API the commercial environment is also more appropriate

These are the capabilities of different deployment options for both the Open Source platform as well as the Actuate commercial platform geared towards allowing organizations to get the value that they most see fit within their environment or their application Typically for environments that have a heavy requirement for infrastructure thatrsquos what drives the commercial purchase whereas customization or individual interests typically drive Open Source

The key thing for any organization is to first decide what kind of reporting technology they need ndash whether it be Open Source or commercial ndash and then to look at their own needs And finally consider the BIRT environment as a vehicle that meets web reporting needs

For more information on BIRT visit actuatecom

A growing level of complexity often drives commercial interest but certain complex functionalities ndash including supporting web service or web service SQL or other examples of integration techniques ndash the Open Source model is more than capable of supporting on its own

ldquordquo

One of the benefits of Actuatersquos Business Intelligence Reporting Tools (BIRT) is that very capability for flexible functionality thatrsquos adjustable to usersrsquo needs Every component of the BIRT technology ndash whether in the Open Source or commercial versions ndash builds upon the components before it creating a robust and flexible system designed to meet each organizationrsquos unique Business Intelligence needs

Choose the Right Graphical ToolThe first step towards evolving organizational Business Intelligence is choosing the right graphical tool The Eclipse BIRT technology for one is a visual designer thatrsquos geared at report developers as well as JavaScript and Java developers and can create a wide range of reporting technologies and web reports BIRT builds content that is specifically intended for the web and uses techniques that are expected when building web pages and web content It doesnrsquot use a banded report writer design or development metaphor typical of many older report-authoring products including Crystal Reports or Jasper

BIRT is the third from-scratch product that Actuate has sponsored and developed and as such it takes into account more modern capabilities and techniques for developing web content In building BIRT Actuate has drawn from its extensive market knowledge borrowing best concepts from other products as well as from its own Reusability and the ability to include programmability within the environment have been traditional Actuate capabilities that have been included in BIRT but BIRT technology also uses de-facto standard programming capabilities such as embedding JavaScript and Java into the application rather than using a proprietary language

Open Source is the core reporting capability and value-added commercial products can be added to it More than 50 developers are employed by Actuate on the BIRT Open Source project similar to the number of developers Apache has applied to the Apache project Alongside these Open Source developers are Actuate developers working on the commercial product of BIRT

Open Source BI

Cost-Effectively Deploying

When deploying Open Source Business Intelligence technologies multi-layered functionality that can be added as needed serves to create a cost-effective way to build a solution specific to an organizationrsquos needs Each function acts as a building block as a company creates exactly the capabilities necessary for the job on hand without wasting money and resources on items that arenrsquot needed

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Another benefit of BIRT is the BIRT Exchange community Actuatersquos user forum which is far more robust and extensive with documentation and help information than has been found traditionally Nearly every forum post has an answer to it in some form which is not likely to be experienced with any other Open Source project or forum-based community Meanwhile the community itself is vast and growing rapidly Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate ndash where a developer may have downloaded 20 copies over its history ndash adds up to 350000 different users of BIRT technology That number is growing at roughly double the rate of the other two most popular Open Source projects

Add Value Through Features

Actuate BIRT technology has a range of features that will add value to a companyrsquos BI project

1 In addition to being a graphical report design tool BIRT takes into account the long-standing tradition of Actuate to support reuse libraries and reusability across the entire environment It is able to not only reuse BIRT objects and BIRT components ndash such as charts and tables ndash but also to incorporate and use JavaScript objects and Java libraries in the reports themselves This creates a rich experience for driving and building web-oriented reports

2 BIRT offers navigability While a user is in a graphical design tool they should be able to take advantage of some of the core capabilities that the technology offers such as a visual hyperlink builder that keeps information in context as well as the ability to create cross tabs dashboards and charting mechanisms that are active and navigable Inserting type of content ndash so that it is both consumable and scoped in context for the user ndash is important to the success of deployment Hyperlinking in context is one of the key elements to supporting Open Source deployments

3 The Eclipse BIRT environment supports a variety of graphical types or charting types including not only grids and tables but both static and dynamic images as well that can be linked back to databases or can support conditional formatting and a variety of conditions baked into the report BIRT is able to handle a large variety of chart types and styles allowing organizations to convey exactly what theyrsquore trying to deliver to their users Supporting rich charting is one of BIRTrsquos key core capabilities

4 The Open Source Eclipse engine can be embedded into or deployed from an application quickly within a JVM Users can add content generation or report generation functionality easily and quickly to their application by inserting it into their run time The BIRT engine itself is a key component in the Eclipse BIRT project It has a variety of extension points built into it which means itrsquos able to not only generate supported output types ndash such as HTML or Adobe PDF ndash but can also create custom emissions from a BIRT report such as an emitter for mobile content or an emitter for a particular report format of the userrsquos own perhaps to feed another application With a robust API structure within the Eclipse BIRT engine these are all possible

Build On Interactivity for a Richer Experience

Building onto that BIRT experience organizations can add more interactive and visual elements to create more appeal within their BI projects

Animated Flash Visuals Animated Flash visuals built into BIRT reports lend to a richer more enjoyable experience for end users They can take advantage of the navigation enhanced with the visual and animated appeal that Adobe Flash offers

The Actuate BIRT development tools include 266 Flash widgets This is one feature that differentiates BIRT Open Source with the BIRT commercial product Those who purchase the development tools from Actuate will immediately receive these Flash objects that can be deployed not only within Actuate BIRT reports but within Eclipse BIRT reports as well they are portable across both environments

Interactive Viewing Often users have a difficult time articulating their requirements to report authors That problem is alleviated when authors can deliver them an interactive viewing experience allowing the report to become changeable and adjustable by the user The user can select a particular column and can apply a filter to that column they can toggle back and forth between viewing perspectives rotate charts change the grouping of a report or add more visualization to it with something such as conditional formatting They could even navigate within the report using a joystick or deploy that report or portlet content anywhere they want And ultimately they could drag and drop and change ndash or add columns to the report directly ndash by manipulating the report as needed

This interactivity gives the end user the ability to enjoy more freedom with regards to how they use the report It also

addresses one of the biggest conundrums with regards to report delivery giving users a report provides them with content that makes them smarter and as they get smarter they take that information and they work it into their knowledge which in turn changes the questions that they ask of the report This means that what they need from a report changes over time Allowing users to modify reports themselves is a key goal in supporting BI processes because as users become smarter about what theyrsquore doing with their content they can help assist in defining what the next iterations of their web content might be

Choose the RIght Server to Store and Schedule Content

Actuate has spent the last 15 years developing the Actuate iServer It comes in two styles ndash iServer Enterprise and iServer Express ndash and offers a robust environment for creating managing and delivering BIRT report content to users on schedule on demand or on an ad-hoc basis directly

The iServer Express is a single-server deployment that is appropriate in scenarios where there is less active usage it supports a sequential batch generation capability and roughly 10 user connections per second as the users connect to the server It offers that scheduling and deployment capability at a very cost-effective price point while allowing organizations to secure their report content using the iServer repository to take advantage of some of the presentation layer capabilities that Actuate offers through its information console to present and manage that content on behalf of the users and ultimately to create a full reporting experience for users directly

Alternatively for those deploying a very large system ndash perhaps one that operates outside of the firewall in a traditional web information application ndash there is the iServer Enterprise The iServer Enterprise is massively scaleable but also very predictably scaleable as companies double the resources that they can apply to their environment they double the throughput and user numbers that theyrsquore able to support with the iServer It is also highly configurable in regards to how content is deployed and supports multi-tenet environments or multiple application environments In addition it can be componentized so that a presentation layer can be separated from a content creation layer or a business logic layer from a data management layer ndash including the meta-data layer itself ndash to help abstract and manage the queries driven

Determine Where Content Can Be Distributed

Actuate JavaScript API is a mechanism that allows the user to take a JavaScript library embed it into any HTML page and then from that JavaScript library securely access Actuate content from the iServer This particular capability allows the user to put either a report part ndash a reportlet ndash or an entire report directly into new locations This could be used as a user attraction vehicle it could be used as a dashboarding vehicle or it could be an integration point for systems that are written in NET rather than in the j2e environments that BIRT typically supports

Deliver Mash-Up Applications

Delivering mash-up applications using all of the functionalities listed above is simple in the BIRT technology and lets users themselves participate in the definition saving creation and management of their own dashboard displays and it allows them to watch exactly the KPIs that they care about

This is done through Actuatersquos Mashboard Customization to the Information Console which allows users to take any BIRT report content and to deploy it directly into a mash-up style environment where they can define exactly what pieces of content go into their application and what doesnrsquot These dashboards can also be roll-based so that particular pieces of content can be deployed to particular types of users directly then if they want to continue to customize that capability theyrsquore able to do so

Conclusion

Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques such as Flash and Ajax in a web-based design metaphor It is designed to evolve effectively over time and is meant to give organizations a choice for every type of user The first decision point of any organization is to recognize whether or not BIRT is the right reporting technology for the information application in question Once thatrsquos decided companies must choose the technologies they want to offer each type of user and then consider how they want to deploy those technologies directly

A wide variety of capabilities can be build into the BIRT environment ranging from Open Source to commercial Actuate products It is a flexible environment and is robust for delivering to users any type of information-driven web content

Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate adds up to 350000 different users of BIRT technology ldquo

rdquo Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques ldquo

rdquo

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The Challenge

Guiding a ship requires visibility into navigation operational performance and up-to-date information to make decisions This type of customer challenge drove ABS Nautical Systems

to incorporate Actuatersquos BIRT technology into its NS5 fleet management software

A leading software provider to the maritime industry ABS and its NS5 modular ERP system help customers manage principal operating expenses associated with vessels and offshore rigs ABS provided basic scheduled reporting and offered ad hoc reports in response to specific customer requests but customers demanded better functionality including the ability to easily extract and create both standard and custom reports

Producing reports to customersrsquo satisfaction took time as reporting was not central to ABS Nautical Systemsrsquo expertise Further it took valuable programmer time away from developing new features and functions for its core product This created the need for ABS to leverage a tool to provide highly-developed rich information application functionality increasing the power of its fleet management software while enabling its customers to access more flexible reporting tools

The Solution

With its own expertise in Java development and their existing reporting ABS searched for an Open Source reporting platformtool that they could leverage and seamlessly embed in their software ndash one that would deliver for ABS and their customers both immediately and for future expansion After considering Jaspersoft Actuate and Pentaho ABS selected Actuate and BIRT for their on-demand reporting solution

ldquoActuate has a clear roadmap and direction scalable platform financial stability and Open Source development platform The Actuate offering was an excellent fit because the technology

ABS Nautical Systems (NS) is one of the leading providers of fleet management software packages available to the

marine and offshore industries It offers a fully integrated modular approach to managing the principal operational expenses associated with a vessel or offshore rig ranging from maintenance and repair to regulatory requirements purchasing and inventory and crew management and payroll

SAFE AT SEAABS Nautical Systems A Case Study

ldquoBoth the technology roadmap and scaling are key It was an excellent fit for us actually ndash you had the right technology yoursquore Open Source based BIRT technology was key and you were the most helpful in helping us do the prototyperdquo

- Sandipan Bhattacharya ABS Nautical Systems

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used Open Source BIRT allowing us great flexibility in developing NS5 Actuate was most supportive in helping ABS NS do the prototype ndash both their Professional Services as well as the account teamrdquo states Sandipan Bhattacharya CTO for ABS NS

The new BIRT-based on-demand reporting tool within ABS NS5 is a web-based application that enables clients to quickly and easily generate custom reports from any NS5 module It handles reporting for the central elements of operational management ndash from regulatory requirements to payroll to planned maintenance programs But it takes NS5 beyond operational duties to consolidate data from across software modules to better monitor key performance indicators (KPIs) such as time to repair spare parts turnover and purchasing cycle times

The interactive information views that BIRT provides help fleet managers to achieve maximum efficiency empowering NS5 software users to get what they want in terms of the reports they need in the way they want them as each department or company may want to look at data in a different way Lastly that same data is more accurate because it comes as near real-time information at the time they need and can be benchmarked against how well they are performing to provide trends for evaluation

BenefitsResults

bull Speed time to market with new features by focusing on core competence in its software platform This allows ABS to focus development on its core product and improve customer satisfaction by rolling out and providing complete reporting modules This also helps decrease development expenses and support costs

bull Expand available market with completely new product lines enabling ABS to increase its client base to companies that didnrsquot know about them or had previously disregarded their offering The additional modules make the product more attractive to existing clients creating additional revenue sources for ABS

ldquoThe BIRT Open Source platform allows for a great deal of flexibility in the development stages Additionally the ease of integration into our OEM package was a great benefit Lastly the Actuate and BIRT offering has proved to be well suited to ABS Nautical Systemsrsquo needs and Actuatersquos roadmap shows what we can do in the futurerdquo states Bhattacharya

Self-serve customization drives flexibility and ease of creating reports BIRT empowers users to produce reports customized to their individual and departmental needs and preferences And as government reporting requirements change they can

Solution OverviewCompany Profile Integrated fleet management software for marine industries

Industry Software

Location Houston with offices worldwide

Challenges

bull Customer need for better more timely reports

bull Enable customers to self-serve for ad hoc needs and regulatory requirements

bull Focus on core software expertise and feature requests

Solution Integrate Actuatersquos Open Source-based BIRT reporting with ABSrsquo NS5 fleet management software

Business Benefits

bull Faster time to market broadened portfolio

bull Ease of integration development flexibility

bull Increased visibility into operations aids customer competitiveness efficiency

bull Users empowered to customize reports

Does your companyrsquos mission and vision statement place the customer at the center of your universe

Does it promise to maximize customer value and deliver the best customer experience possible If it does your mission and vision statement is surprisingly similar to nearly every other organization And much like them chances are your organization is struggling to make this vision a reality to actually reinvent itself as truly customer-centric

ldquoCustomer-centricrdquo has become the new buzz phrase thrown about at most executive planning sessions and has replaced ldquoinnovativerdquo as the new mandatory strategic language The truth is it takes a lot more to become customer-centric than changing the company vision ndash it requires a departure from years of tradition a clear look at who and what your organization is and a deeper understanding of what motivates your customers to buy from you or from your competitor Fortunately the cost to make this change is surprisingly low while the benefits and the returns can be shockingly high

Finding Your Customer

Customer-centric implies that the customer is central to the organization but this is too esoteric to have any real meaning An organization turns materials into a product or service which is then sold Everything the organization does must lead to this

event (with no sale after all therersquos no customer) This logic works for most people and most organizations and it logically follows that the focus should be upon the creation of the best possible product or service because this is what causes a prospect to become an actual customer

This logic fits nicely with traditional thinking It was popularized by Michael Porterrsquos value chain approach in the mid-80s The value chain is a string of critical processes that begins with raw materials or inputs and ends with a product or service delivered to a happy customer Thinking this way makes sense because it is easy to place the customer at the end of the process But this mind-set doesnrsquot just affect how executives structure the organization it weaves its way into every aspect of how the organization manages itself and how managers make decisions

For example the finance department performs the close process each month so that it can deliver financial information to managers with actual bottom-line responsibility These managers from executives to cost center managers are financersquos customers just as shareholders are when they deliver quarterly reports Once these reports are delivered finance goes back to the business of accounting and managing revenue and expense until the next month Engineers work to design new products that will keep them one step ahead of their competition Manufacturing produces goods to meet customer

respond more quickly adapting them by themselves instead of depending on ABS to supply reports

ldquoActuate empowers users to get exactly the reports they need the way they want them Empowerment is key as well as flexibility as each department or company may want to look at data in a different wayrdquo states Bhattacharya

Rich information drives efficiency through increased visibility and better insight into operations improving customer competitiveness With highly accurate real-time information on how well they are performing management can control both overall and specific costs of operating and maintaining their shipping fleets ldquoThey donrsquot have to wait hellip they can see all contributing factors day to day It helps improve efficiency at every level For the first time a shiprsquos captain can have insight into the operational performance of his ship while still at seardquo says Bhattacharya

Creating the Customer-Centric

OrganizationFinding Your Customer-Critical Path

By David F GiannettoCEO

The Telos Group

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33

Vol 6 Issue 2 2009

orders or demand projections The sales department courts potential buyers so that they become actual customers Once they do so sales then returns to identify new targets and tries to transition them Manufacturing works to refill shelves Engineering continues developing products

Employees throughout the organization are focused upon delivering the product or service for which they are responsible The product attributes become the value proposition that will appeal to their customer regardless of whether or not this is an internal or external customer Employees are trained to think in terms of product development delivery and value The organization becomes even if it doesnrsquot know it product centric Believing that a mainstream management theory such as the value chain approach could not be wrong or outdated management is comfortable with this view of their world When they try to become customer-centric they do not know how

Making the Change

Consider for example the electricity powering the light by which you are reading this article It is a fairly simple product that was mainstreamed decades ago and except for new types of power generation it has remained essentially unchanged The traditional value chain for this industry is fairly straightforward Power is generated by a complex and often dangerous power plant and it is delivered to the customer via a complicated and often dangerous network The customer then consumes this power and must pay for it creating the

need for back-office operations such as accounting finance and customer service

Given the complexity of power generation and delivery operations the organization is staffed by a high percentage of engineers many with doctorate degrees and years of specialized training The generation and delivery assets themselves are maintained by highly-trained highly-specialized workers A large percentage of the management team also comes from this background and rose through the ranks of organizations identically structured Combined these employees represent over 75 percent of the organization

Collectively these employees create a culture that is consistent in almost every power utility in the world Their cultures respect academic achievement technical expertise and years of experience in the industry They typically believe in rigid structures inflexible procedures and consistency in design and execution They are truly product focused

Given the potential hazards it is easy to see why they behave the way they do But what happens when this type of organization has to compete in a more open market when transparency is increased or when the customer such as a municipality has a stronger voice or is under the growing influence of being green What happens when the power company must become truly customer-centric

It is nearly impossible for them to succeed Seventy-five percent of the organization has little to do with or has little understanding of the customer

Departing from Tradition

While this product focus is exaggerated within a power utility largely because of their technical nature these factors affect nearly every organization Employees who have great influence within the organization will not yield it to those who have less but who understand the customer better Funding is unlikely to shift from traditionally respected areas to those areas that most affect the customer

For a power utility this means that engineers who have often dedicated their entire lives to the study of their work must be considered equal to project managers and customer service agents most of who do not hold any degrees Money resources and staffing must focus on project management and call center technology not just on million- or billion-dollar assets There must be recognition that these areas equally affect the customer This new perspective must be executed by executives who have spent their entire careers adhering to the traditional values of the product-centric culture But this shift is what customer-centric really means truly understanding and meeting your customersrsquo needs It starts with the customer more specifically it starts with a prospect

Customer-Critical Path

This means that the traditional value chain must be rethought and renamed more appropriately to the customer-critical path A prospect travels this path on their journey to become a customer a customer travels this path toward the goal of becoming a happy customer This is the true value chain of the organization ndash a string of processes that become critical because they directly affect your customer regardless of the product service organizational chart academic degree or bias Find the customer-critical path and you can guide your customers through your organization in the way that is most meaningful to both them and you

But not all customer needs are the same even within an industry that has only one real product like a power utility The customer-critical path may start in several places meeting the needs of

several different types of customers ndash household customers that simply need power turned on or major projects that require significant project management and pre-planning Eventually these starting paths merge It will occur at the point at which all customers are happy From there they may take a different path

again some will terminate service or have new needs There is not one value chain there are many paths a customer might travel through your organization

This new approach offers significant value for organizations that adopt it It allows them to better understand their customers so that they can be more effectively segmented and targeted by products or services This drives the bottom line in several ways A stronger value proposition increases appeal thus driving revenue Better service and customer interaction improve the customer experience and increase customer loyalty driving customer lifetime value

The customer-critical path also becomes a vital decision-making tool for management It provides a clear and unbiased perspective on where resources should and should not be spent It defines the relative worth of projects assets and expenditures painting a clear picture of what the results will be if the customer-critical path is not

properly maintained

And if your mission and vision statement says you are customer-centric it makes your strategic plan more than simple semantics It makes it actionable setting your organization on a path towards true differentiation and market leadership Properly crafted the customer-critical path becomes a pleasant stroll through the park for your customers and it can also become the most profitable path for your organization

David F Giannetto is CEO of The Telos Group co-author of The Performance Power Grid The Proven Method to Create and Sustain Superior

Organizational Performance (J Wiley amp Sons 2006) and a professor in the Executive MBA program of Rutgers University

Mr Giannetto can be reached by email at dgiannettotelosconsultingcom

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35

Vol 6 Issue 2 2009

I Introduction and Background

Who the NMDP is

The National Marrow Donor Programreg (NMDP) and Be The Match FoundationSM are non-profit organizations dedicated to creating an opportunity for all patients to receive the bone marrow or umbilical cord blood transplant they need when they need it Every year thousands of people of

all ages are diagnosed with leukemia and other life-threatening diseases Many of them will die unless they get a bone marrow or cord blood transplant from a matching donor Seventy percent of people do not have a matching donor in their family and depend on the Be The Match RegistrySM to find a match to save their life

The Beginning

When their 10-year-old daughter Laura was diagnosed with leukemia Robert Graves DVM and his wife Sherry were ready to do anything they could to save her They agreed to try a bone marrow transplant from an unrelated donor ndash the first ever for a leukemia patient Laura received her transplant in 1979 at the Fred Hutchinson Cancer Research Center The treatment gave her an extra year and a half of life

The National Bone Marrow

Donor Program

The Balanced ScorecardVision into

Action JourneyBy Howard Rohm

President amp CEO Balanced Scorecard Institute under the guidance of The National Marrow Donation

Programrsquos Michael Boo Chief Strategy Officerand John Rudrud Senior Analyst

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37

Vol 6 Issue 2 2009

The experience inspired Dr Graves to create a national registry of volunteers willing to donate marrow His early efforts brought together other patient families and transplant doctors spurring a federal mandate that led to the creation of the National Marrow Donor Program NMDP began connecting patients with unrelated donors in 1987 with a registry of just 10000 volunteers

What the NMDP Does

The Be The Match Registry has grown to more than seven million donors and over 150000 cord blood units the largest and most racially and ethnically diverse registry of its kind in the world Medical advances are making marrow and umbilical cord blood transplants available to more patients all the time Since 1987 NMDP has arranged for more than 35000 transplants to give patients a second chance at life Today NMDP facilitates more than 4300 transplants a year

Planning for the Future

Many more patients still need help In order to meet the needs of all patients NMDP will need to facilitate 10000 transplants per year by 2015 That is more than double the number of transplants the organization facilitates today NMDP is working to meet this need but canrsquot do it alone Efforts are sustained by

bull A global network of more than 490 leading hospitals blood centers cord blood banks and laboratories

bull Agreements with donor centers cooperative donor registries and cord blood banks worldwide through which the program provides patients access to more than 12 million donors and 300000 cord blood units

bull Continued support from the US government which has entrusted the NMDP to operate the CW Bill Young Cell Transplantation Program the federal program supporting bone marrow and cord blood donation and transplantation

bull Partnerships with corporations service organizations student groups faith-based communities and other organizations

A new and different way of thinking about the NMDPrsquos long-term strategy was required in order to make sure that NMDP would be capable of delivering 10000 transplants per year in 2015 ldquoBusiness as usualrdquo would not get the organization where it needed to be NMDP needed to identify and

aggressively improve in strategic areas critical to the delivery of 10000 transplants

II The Balanced Scorecard Approach

Background

The strategic planning system that had been used at NMDP up to 2007 was a fairly well-developed planning process that tracked initiative performance under seven primary areas of strategic focus While this approach provided a measure of strategic planning for the organization it was too focused on activities and projects rather than on impacts

Early in 2007 NMDP leaders Gordon Bryan Chief Financial Officer and Michael Boo Chief Strategy Officer began developing strategic metrics designed to identify measure and communicate progress in strategic plan objective areas

Selection

As the senior management team evaluated options to integrate broader strategic metrics with the existing strategic business plan the Balanced Scorecard approach emerged as a leading candidate during the initial assessment of planning models because it

bullEncourages development of strategic themes and provides the ability to focus on areas where long-term continuous improvement is needed

bullPermits identification of cause-and-effect relationships between Strategic Objectives within each Theme

bull Facilitates communication of Strategic Objectives that can be portrayed on a strategy map that is easily understood by all employees and stakeholders and shows how the perspectives work together to achieve the mission

bull Assures that the organization focuses on Strategic Objectives and Measures from a CustomerStakeholder perspective and a PeopleKnowledgeTechnology perspective (Historically the organizationrsquos focus was skewed toward the Process and Financial perspectives)

bull Enables leadership to track Strategic Objective performance over the long term rather than tracking the status of supporting projects and initiatives

bull Creates a framework for prioritization of projects initiatives and funding opportunities based on contribution to and support of the Strategic Objectives

bull Allows organizational Strategic Objectives to be cascaded into Department Objectives thereby giving each employee

a more specific understanding of how his or her work impacts and contributes to the Strategic Objectives

bull Drives long-term continuous improvement as Strategic Measures improve over time

bull Facilitates a ldquolearning organizationrdquo where corrective actions are implemented in cases where Strategic or Department Objective Measures are not being met

The NMDP planning team looked at a number of planning models ndash including Balanced Scorecard Six Sigma Lean and TQM ndash and concluded that the Balanced Scorecard approach provided the most versatile and relevant framework for future growth and organizational development

III Scorecard Development ndash NMDP Officer Input

Early to mid 2007 NMDP began the Balanced Scorecard development effort with the help of consultants from the Balanced Scorecard Institute

A comprehensive review of the organizationrsquos strengths weaknesses opportunities and threats organizational pains organization enablers vision and mission was conducted over several days with NMDP officers and senior management These sessions produced a new Mission and Vision Statement and four Strategic Themes (rather than the original seven)

The former mission statement Extend and improve life through innovative cellular transplant therapies was changed to We save lives through cellular transplantation ndash science service and support

ldquoThis new mission statement captures and communicates more directly why we exist and it clearly articulates the three ways that we are able to save livesrdquo explained NMDP CEO Dr Jeffrey Chell

The Overarching Strategic Result in place of a vision statement was developed and shared with employees throughout the organization Meeting the need for 10000 transplants per year by 2015 The senior management team developed a longer more descriptive version of this statement but felt that the shorter version had more impact

ldquoWersquove found that the Overarching Strategic Result has been a great tool to get people thinking about how we will manage

to do more than double our current transplant volumes in a relatively short time ndash just five years from nowrdquo explained initiative sponsor Michael Boo ldquoThis has driven a lot of creative thinking around how to dramatically improve the efficiencies and cost effectiveness of many internal systems and delivery processesrdquo

The four Strategic themes that the NMDP officer group developed and agreed upon are

bull Global Access and Acceptance ndash Getting to Yes Overcome non-cell source barriers to transplant (eg no insurance no transportation no post-transplant support)

bull Deliver Excellent Stakeholder Experience Overcome Cell Source Barriers (making sure a cell source donation is available when itrsquos needed ndash adult or cord)

bull Research Pursue research to improve cell transplantation as a therapy

bull Culture of Excellence Keep up-to-date with talent structure and resources needed to continually improve transplant services

IV Scorecard Development ndash Senior Management

Throughout the spring and summer of 2007 four Theme Teams comprised of senior management met to develop

Theme Team strategy maps that included Theme Objectives by Perspective and proposed Measures for each Theme Objective These served as detailed roadmaps with specific objective areas identified ndash where NMDP needed to focus in order to improve them

The four Theme Team maps were subsequently

combined into an NMDP Strategy Map that included all relevant components from each theme This NMDP Strategy Map is comprised of 13 Strategic Objectives 46 Strategic Measures and seven Strategic Initiatives

Narratives were captured regarding the intent and ultimate end state for each Strategic Objective and detailed descriptions were created for measurement information including rational frequency owner and unit of measure

At this stage in the process the team named the Balanced Scorecard tool ldquoVision into Actionrdquo or ViA ndash NMDPrsquos strategic Performance Management tool On June 1 2007 the ViA Themes and NMDP Strategy Map details were presented to the board of directors by senior management and approved along with a plan to proceed to the next phase of department cascading

A ViA Communications Team was formed to communicate ViA progress to employees on the development of the new Mission Statement Vision Statement and the 13 Strategic Objectives This was done through a combination of pulse checks newsletters

38

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Vol 6 Issue 2 2009

intranet messaging e-mails from the CEO leadership training all-staff meetings and promotional contests This was an extremely integral step in the ViA roll-out that provided transparency and generated excitement around the benefits of ViA

V ViA Department Cascading

All departments at the NMDP were scheduled for sessions to develop their department Objectives Measures and Initiatives These were facilitated by internal subject matter experts and included an initial two-day exercise to help the department identify where and how each department contributed to the NMDP Strategic Objectives Worksheets and other preparation material were provided to each participant and collected prior to the cascade session The pre-work information was used to expedite the affinity exercises at each session

These were followed up with sessions to finalize detailed measures with individual measure owners Department teams were comprised of five to 10 key members of each department

The department cascading efforts provided a number of primary benefits to the organization including

bull The articulation in easy-to-understand terms of how each department contributes to the overall success of the Strategic Objectives and ultimately the NMDP Mission

bull A tool to identify gaps or overlaps between departments that can also be a tool for departments to communicate with each other in terms of supporting initiatives

bull A tool for each department to prioritize initiatives and activities Also it provided a mechanism to support requests for funding new opportunities

bull A clear framework for corrective action where measures are not being successfully met

bull A common format and mechanism for reporting department performance to officers and senior management

bull A common format and mechanism for reporting and reviewing department performance with staff

bull Help with the development of individual job performance appraisal content ndash which should be designed to support Department Objectives

Department Cascading was complete in early 2009 There are over 200 separate department measures that are tracked each quarter

VI NMDP ViA Today

NMDP has established a department Champions Council Members of the Council are becoming experts at using the automated ViA software Today this is being used at department staff meetings to facilitate discussion around corrective action for underperforming or unacceptable Department Measures Departments use the department Strategy Maps to guide staff meeting discussions on performance measures and corrective action plans

ldquoAll business cases or requests for funding must be submitted with clear tangible descriptions of how the effort will impact ViA Strategic Objectivesrdquo explained Boo ldquoOnce all business cases have been submitted to the officer group for final approval they are prioritized in order of their impact on ViA Strategic Objectivesrdquo

All strategic and department measures are required to be reported into the ViA system each quarter Each is color coded based on an officer-approved target matrix Each measure owner is required to provide comments regarding the measure performance for the quarter and discuss how he or she expects the measure to end the fiscal year This information is shared with senior management for review and follow-up with measure owners ifwhen necessary

Senior management uses the color-coded NMDP Strategic Map as a basis for discussing quarterly performance and identifying

Strategic Objective areas that may need attention corrective action andor more resources NMDP tries to focus not only on corrective action items but also highlight success stories where outstanding performance has been reported

All employees will soon have access to the web-based ViA application to provide as much transparency and visibility as possible in order to become a truly strategy-focused organization

ldquoVision into Action has been successful within the organization to a great extent because of the consistent support and guidance provided by NMDP leadership including our CEO Dr Jeffrey Chell my fellow Officers and the Board of Directorsrdquo said Boo

Howard Rohm President and CEO of the Balanced Scorecard Institute is a Performance Management trainer consultant and technologist with over 40 years experience Mr Rohm has helped dozens of organizations worldwide build Balanced Scorecard and other performance planning and management systems

48

Pe

rform

Mag

azine

Info

rmatio

n in

Actio

n

A community for BIRT users and developers sponsored by Actuate

A Report Writing Portal lets your end users browse reports modify them and even develop

new ones You can set one up in three steps when you use AJAX-based BIRT technology

Because the end user tools to modify and create reports are AJAX-based therersquos no desktop

software to install Users get the reports they need quicker while the burden on development

resources to create new reports is reduced

BIRT Exchange is a community site that offers the broadest collection of resources for the Eclipse BIRT (Business Intelligence

and Reporting Tools) project and for integrating spreadsheets with Java The site is sponsored by Actuate a co-leader of the BIRT project

Sponsored by

See a Demo

at Booth

602

For More Information

Contact us by phone at 1-800-884-8665

1-913-851-5300 from outside of the United States

wwwbirt-exchangecom wwwactuatecom

40

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41

Vol 6 Issue 2 2009

JCIrsquos previous approach of one-off negotiating as well as its spirit of continuous improvement and customer focus meant that it had only one-off measures in every location The company for example had 127 variations of the measure lsquomaintenance managementrsquo Many were very similar but since they were not exactly the same they could not be compared effectively Inefficiency at gathering and maintaining data at different locations across the globe made the task difficult as well Data was collected any way possible thrown into a cell or a Power Point slide and handed in at the end of the month It was highly inefficient extremely customized at every location and did not allow any ability to benchmark compare or look at best practices These concerns and requirements drove JCI on its scorecarding journey

The Solution

In initiating its scorecarding solution JCI first had to establish the right measures Business leaders were chosen for all of the scorecard categories and for each of them a business owner was selected for each region these business leaders and owners were responsible for defining the standards and measures Data collection systems in some cases proved difficult there wasnrsquot always centralized information available ndash in some cases data needed to be gathered right down at the account level This meant that the process of data collection and identifying measures was a significant job To get started though JCIrsquos web programmers were able to put up some scorecards quickly to allow the company to start architecting measures this allowed business leaders across the globe to start identifying their measures and to put the processes in place regionally to collect information

Before committing to a technology JCI wanted to know 100 percent of their business requirements and this was the point of their web-based scorecard To assist in this endeavor Actuate ndash prior to selection ndash let the company test drive their product The JCI team went through and looked at every single screen determining where they had to configure the tool and for every single screen they also made what they called a lsquoblueprintrsquo creating an Excel template with fields to correspond with every field on each screen It was incredibly detailed work but they wanted to ensure no mistakes were made and that the business requirements were defined To accomplish this there was an extreme amount of detailed coordination globally with twice-weekly meetings for the worldwide team in charge of the initiative A byproduct of the process was that the team learned to use the Actuate BIRT Performance Scorecard and basically built all of the blueprints for the project design

JCIrsquos audience for the project upon kick off were the 300 external customers that would have access to this information Customers previous to this were getting their information via Excel and PowerPoint In addition to these external customers was the population of approximately 1000 internal users within JCI itself These included account leaders and functional leaders including those from HR Finance Safety etc

Three primary functions of the project were

1 To replace the PowerPoint slides used in global and regional monthly internal operational reviews

2 To very quickly be able to become best in class JCI wanted everyone who had an account to be able to see where they sat compared to their peers This provided individuals ndash when faced with a problem ndash the ability to quickly identify and contact others who had solved the same issue

3 To standardize customer faith in contractually required performance measures This was a key goal of the company which felt that if they were going to benchmark and compare they needed to bring in the best practices learned at one location to their work at other locations

These three primary functions were heavily loaded in JCIrsquos rating system as the company set out to choose the right software for their scorecarding project It was also important that the software be intuitive as there was no time for hundreds of hours of global-wide training The software had to be rapid and easily configurable with limited IT assistance As JCI is a very large organization with a lot of systems in place the team in charge also wanted the software to be easily adjustable to the companyrsquos rapidly changing business they didnrsquot want to have to get into queue for IT every time a change had to be introduced or a new customer added

JCI Chooses ActuateFour vendors were evaluated for JCIrsquos scorecarding project with a global team in place to provide a systematic discussion of the defined business process and requirements The product chosen was the BIRT Performance Scorecard JCI had 30 days of Actuate Professional Services and planned for monthly micro improvements and quarterly macro improvements

Upon purchasing the BIRT Scorecard in January 2007 using the blueprints theyrsquod established already the company wrote their business processes They were able to go live in 90 days helped by the homework they did with the blueprints the web scorecard and the data collection processes It was an incredibly smooth implementation overall

The Results

Whereas JCI originally started out with a model of one-off negotiations with customer measures the scorecarding project has led to approximately 70 percent agreement on JCI standard metrics The company does a customer satisfaction survey both annually and quarterly and aims to demonstrate evidence towards continual improvement

Since implementation of the project the company has also been solving its data integrity issues Previously two regions might have been using the same words but not the same data collection methods ndash this made it impossible to introduce benchmarking and comparison between areas Now those problems are being solved and benchmarking and comparison are possible to the benefit of both JCI as it strives for best-in-class status and its customers

By David F GiannettoCEOThe Telos Group

Johnson Controls Incorporated (JCI) is a $38 billion company with a total of 140000 employees working out of more than 1300 locations in 125 countries worldwide Headquartered in Milwaukee Wisconsin the company provides a range of services including

real-estate portfolio management property management facility management and design and construction services

To initiate its scorecarding project JCI began by creating five categories of measurement Business Performance (this includes all financial measures) Service Delivery Customer Satisfaction Safety and People While the other four categories may be typical to most organizations the Service Delivery category was designed to take JCIrsquos measurements down to the client-site level which includes over 300 locations globally where the company has contracts In some cases there might be one staff member assigned to manage a single building while other times a staff member has a whole portfolio they maintain Measuring performance at all of these locations and levels proved a complex undertaking

Strategic Initiatives

Like all service providers JCI has to demonstrate that they add value Scorecarding allows them to do this both internally

and externally using data-driven results Since JCI has always been very much a data-driven organization anyway with a manufacturing background this was a natural fit for the corporation

JCIrsquos organization-wide motto is to be as good everywhere as they are somewhere Theyrsquove found that in any one account they may excel in several areas but perhaps not in all areas elsewhere though on another account someone else might have the skills needed to fill in those gaps The companyrsquos goal was to share information and communicate it between different locations across the globe allowing the company as a whole to get better faster and to benefit from the skills and strengths of its individual members Scorecarding was introduced as a way to help share this information and to introduce benchmarking within the company

The Requirements

To get started on their scorecarding initiative JCI examined each of their US contracts What they found was that there were no standards between clients and therefore no ability to benchmark Customers though wanted the ability to find out how they stood in relation to other customers This was impossible under the circumstances

Global Operational Excellence and a Performance Scorecard System A Case Study of

Johnson Controls Incorporated

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Vol 6 Issue 2 2009

Out of Touch With Crucial Data

Previously when Helzbergrsquos divisional and regional vice presidents went on the road access to their key performance metrics was restricted Without a laptop and a WiFi or hotel network connection to the internet they were ldquoflying blindrdquo according to Greg Backhus Helzbergrsquos Director of Data Warehouse and Decision Support Systems As a result they did a lot of faxing it was the only way they could get the current data that they needed in order to

About Webalo

Webalo technology transforms enterprise applications and data to make them compatible with mobile

devices This eliminates the need for traditional custom programming reducing the deployment of mobile applications from weeks or months to in most cases less than a day The resulting ldquoanywhere anytime on-demandrdquo availability of enterprise data on handheld devices turns such devices into viable alternatives to desktop laptop and palmtop computer hardware and lets mobile employees work more productively ndash on the spot ndash to solve problems answer questions monitor operations close sales and make informed decisions

The Webalo Mobile Dashboard Service ndash available in both internet-based and enterprise intranet-based implementations ndash lets non-IT business administrators securely specify the content of mobile-accessible information and the companion Webalo Proxy Server configures it in seconds to conform to the native user interface of any BlackBerry Windows Mobile Pocket PC Palm Symbian or Java-enabled smartphone

CLARITY CUT AND CARATSHow Helzberg Diamonds Made Sales Data Clearer Eliminated

Delays and Lightened the Load for its Divisional Executives

A diamond may be forever but a lot has changed in how theyrsquove been marketed and sold during Helzberg Diamondsrsquo nine decades in business A single store has expanded to nearly 300 locations from coast to coast and border to border Sales can also be made online now And information about every sale can be accessed in an instance through the companyrsquos enterprise systems

bull Compare actual sales to their goals and plans

bull Determine transaction counts for total dollar volume and average sales value

bull Break down sales by product category

bull Monitor attachment rates for products and services related to the main product sale

For example onsite at individual stores it was difficult to gauge how an active price-reduction sale was affecting unit and dollar

volumes unless there happened to be a coffee shop next door with a WiFi connection that would let Helzbergrsquos executives access the enterprise system

The Three Cs of Information Access

The three Cs of diamond grading ndash clarity cut and carats (or weight) ndash turned out to be applicable to data access as well But it took a transition to handheld devices and to the Webalo Mobile Dashboard to achieve it

Though laptop computers had gotten lighter and lighter over the years they were still considerably heavier than the Pocket PC-based smartphones that Helzbergrsquos executives used Since they were carrying those handhelds in addition to their laptops the VPs were open to the idea of being able to

bull Access sales metrics on their handhelds

bull Have data available on-demand from any location with a wireless signal

bull Navigate quickly to the figures they needed

bull Get updates to their metrics automatically

bull Review the information offline

It was the only time that carrying less weight ndash or carats ndash added more value Using a simple step-by-step wizard Helzbergrsquos support staff was able to configure their enterprise reports in a matter of hours They then assigned access privileges to each executive to control who could see what information and uploaded the file to the Webalo server That satisfied how data was ldquocutrdquo

For each mobile user regardless of the brand and model of smartphone they used the Webalo Mobile Dashboard conformed the information to the devicesrsquo user interface The application worked and looked exactly like any other application developed specifically for their mobile devices the on-screen text was easy to read and navigation used the same menu structure That meant there was no learning curve to delay user acceptance and productivity Clarity was essential and the Mobile Dashboard delivered it right down to the ability to bookmark commonly-referred-to displays for instant reference enhancing on-the-spot productivity even more

Speed and Simplicity

Productivity was also improved on the IT side Without the need for custom programming to conform the information to each smartphone brand and model deployment was reduced from months to hours

Since adopting the Webalo Mobile Dashboard Backhus says ldquoThe Divisional VPs find it invaluable They get more done because they donrsquot have the delays they used to haverdquo Decisions that used to have to wait for current data are now made right away relying on the right data presented in the right format

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Sustainable practice has graduated from being market hype

to becoming a strategic initiative important for driving a successful enterprise It not only reduces a companyrsquos impact on the environment but can help organizations achieve a competitive advantage to build their brand impact top and bottom line and improve customer acquisition satisfaction and retention

Creating a road map towards sustainable management can require an entire shift in corporate thinking one that involves searching for buy-in at all levels establishing useful metrics and introducing practices that get beyond the green hype The end result though is not just a greener organization but also one with a more prosperous future

Why Sustainability

In August 2008 a survey undertaken by CIO Insight examined green practices in business focusing on the reasons why CIOs introduce sustainability efforts into their organizations The number one reason why organizations went green the study found was that the people within those companies sincerely had a concern for the environment A total of 74 percent of respondents answered that way 32 percent of which listed it as their most influential driver

Other influential drivers named in the survey included

Financial Drivers Companies found sustainability to be a way of cutting costs If they could cut energy costs not only would that help the environment but it would also help create cost savings The second most popular answer in the CIO Insight study financial impacts are key to implementing sustainability in most organizations Examples of financial impacts possible from sustainability were presented at CFO

2 The CFO Green

Conference which took place in May 2008

bull Dupont reduced its CO2 emissions by 70 percent saving the company $3 billion

bull FedEx redesigned its delivery trucks making them more aerodynamic This reduced the amount of particulate pollutants nitrogen and carbon the trucks put into the atmosphere and it also reduced the companyrsquos fuel costs exceptionally

Customer Image In the CIO Insight survey the third motive listed by CIOs for introducing sustainability ndash at 64 percent ndash was company image Consumers are becoming more and more aware of whether companies or organizations are living up to sustainability ideals They will notice if a company image or brand value reflects this concern for the environment Meaningful sustainability efforts can help gain customer approval as in the following case

bull Wal-Mart and Procter amp Gamble together agreed to sell liquid laundry detergent only in concentrated form This saved shelf space for Wal-Mart reduced water use by 400 million gallons for Procter amp Gamble and eliminated 45 million pounds of plastic waste

Regulatory Requirements The surveyrsquos fourth most popular reply ndash at only 25 percent ndash were current or potential regulations including the cap and trade systems being implemented which will require companies to buy carbon and sell carbon credits

Shareholder Pressure Finally at fifth in the CIO Insight survey ndash with 14 percent of responses ndash was shareholder or public pressure pressure building from shareholders to put forth sustainability efforts Pressure at this level is often mixed though as shareholders are also likely to express a desire that they donrsquot want shares to decline in value The general message may be that it is fine to introduce sustainability measures only as long as there is no risk that they will hurt the company

A Road Map Towards Sustainability

Step 1 Identify What Drives Your Organization

The first step in the road map towards sustainability is identifying key drivers Some drivers vary from one organization to another while others seem to drive any organization regardless of the industry Drivers incude

Internal drivers

bull Cost cuttings and savings

bull Employees including both the satisfaction of current employees as well as the recruitment and retention of future employees

bull Investment

External Drivers

bull Stakeholders including both those within the company ndash the employees discussed above ndash as well as stakeholders outside of the company

bull Brand awareness because consumers are becoming increasingly aware of the choices that are available to them and are making choices based on a companyrsquos green initiatives

Future drivers

bull Tax incentives

bull The recruitment and retention of future customers

Step 2 Select Your Metrics

In general terms sustainability metrics will fall into one of four major categories those that affect the climate those that affect the oceans those that affect human health and those that affect common issues like the land the water the wildlife etc

Within those large categories are smaller areas of interest that companies must examine to introduce organization-wide sustainability management carbon monoxide use energy consumption water consumption and fuel consumption are prime examples

Carbon Monoxide Use Many of the questions companies are asking themselves in regards to carbon monoxide use include

A Road Map of Key

Sustainability Metrics

That Impact Bottom

Line

46

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Vol 6 Issue 2 2009

bull How much carbon monoxide do we produce

bull Which processes in our overall manufacturing or delivery use produce the most emissions

bull Can we determine the indirect emissions For example leave a computer plugged in and itrsquos still on the grid creating an indirect carbon dioxide emitter How can we measure that

bull Whatrsquos our cost Do we have metrics that tell us what our CO2 emissions cost us

bull Can we predict into the future If we continue on this path without doing anything where will we be next month Next quarter Next year

Some examples of metrics related to carbon monoxide use include carbon dioxide emissions per employee (similar to revenue per employee) carbon footprint metrics and transportation distances

Energy Consumption Areas of interest related to corporate energy consumption may include the following

bull How much do we consume From what sources

bull Are we on the grid Are we using solar power or wind power or another alternative power

bull How much is used by our data center How do we make the data center greener

bull Where can we reduce consumption

Companies today are reducing energy consumption in a variety of ways by introducing energy audits and looking at energy-saving appliances and also through energy incentive programs for employees within which companies can incentivize and introduce bonus plans

Water Consumption An examination of a companyrsquos water consumption may include some of the following queries

bull How much water do we currently use and where

bull Where in our processes do we use the most water

bull Can we predict how much wersquore going to use in the future

Some of the examples of metrics that companies introduce in terms of water consumption include improved water quality how much impact low-flow or low-volume toilets have on water consumption and how much water is or can be recycled

Fuel Consumption Questions to consider in relation to fuel consumption include

bull How much fuel do we use

bull Where are the inefficiencies

bull Whatrsquos being predicted for fuel usage in the future

bull Can we analyze our logistics so that we can determine how to reduce our fuel consumption For example where are our trucks traveling How are they traveling What kinds of loads are they carrying

Step 3 Recognize Challenges

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly As such easier ways to enhance communication and to increase visibility need to be introduced both inside and outside of an organization

There are also constantly evolving requirements measures and standards of success With everything so new companies are challenged to find ways to compare their sustainability efforts with other organizations The biggest challenge in implementing these processes or attracting metrics may be that they require an entire shift in thinking Additional challenges that exist in the implementation of a sustainability model include

1 Financial concerns Companies must truly see potential for returns on investment or these initiatives can become non-starters or stall

2 Lack of regulatory motivation While not as common as it once was certain organizations arenrsquot motivated to introduce sustainability until government regulations are in place

3 Lack of a formal strategy for sustainability Without a formal strategy it is difficult for companies to determine where they need to go

4 Determining appropriate metrics Companies must choose metrics that are useful demonstrate impact and say something about their own corporate environment

5 Calculating metrics Standard algorithms and calculations exist to calculate metrics but companies must find the appropriate ones and use them

6 Finding quality data to plug into those calculations As in any Business Intelligence project if the quality of the data is questionable then so are the sustainability metrics themselves

7 Determining the scope of the sustainability project The scope is critical Narrow it down to something achievable feasible and useful

Step 4 Learn from Best Practices

What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde

bull Assign an executive champion Without an executive champion to drive the project initiatives are more likely to lack a holistic view and a clear vision for an implementation strategy they may take longer to implement and theyrsquore less likely to yield the required results To provide motivation consider linking the championrsquos salary directly to sustainability savings or to the increased revenues that result from sustainability efforts

bull Implement internal training and education Educate employees on what to expect and what is expected from them

bull Improve communication Communicate both to employees and to stakeholders outside of the organization

bull Start to think about alternative energy management and control strategies

bull Engage the use of technology and services For companies not sure where to begin a sustainability consultant can assist with program selection as can vendors such as Actuate which has a sustainability management solution in place

Step 5 Get Started

Understand that sustainability development is a business opportunity Donrsquot look at it solely as environmental although that is also important Itrsquos an opportunity for companies to introduce more cost-effective processes and procedures and to become more cost effective in their vehicle fleet manufacturing delivery etc

bull Create globally consistent metrics and goals Large agencies have to make sure that the entire group is on board and that they have consistent metrics and consistent goals across the enterprise

bull Find the value and drive the action What is the value of monitoring these sustainability areas and whatrsquos the course of action if you see that theyrsquore going off kilter or are not tracking as expected

bull Start small Initiatives such as these can become incredibly complex very quickly Start small and build in the complexity with each ensuing project

bull Get buy in People need to understand what the metrics are why theyrsquore there and what they mean to each individualrsquos situation (as reflected in individual bonus plans perhaps) Measure using industry-accepted methodologies and industry-accepted protocols continually improve metrics through optimization and forecasting and constantly optimize metrics and forecast into the future

bull As much as possible accurately report to everybody environmental performance Let employees shareholders customers and regulators know If data is questionable fix it get quality processes in place and then run the metrics

bull Determine environmental impact Has waste been reduced Has resource utilization been reduced Has the company improved environmental factors

Also consider using an Open Source vendor The Open Source community is beginning to develop sustainability metrics and Open Source reduces the costs of developing metrics while software costs for the project are reduced as well

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly ldquo

rdquo What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde ldquo

rdquo

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Vol 6 Issue 2 2009

Step 6 Move from Green Hype to Sustainable Action

A successful sustainability initiative involves identifying metrics that will translate into cost savings and benefits while avoiding metrics that are not likely to yield required results To accomplish this start small start with a small department within the organization and then repeat this continuing to repeat it throughout the enterprise

bull Start with basic conservation Change behavior reduce consumption and in the process increase investment

bull Start reusing Improve productivity improve efficiency and create less waste

bull When this translates into cost savings re-invest Grow make larger improvements and increase involvement

Projects that make good starting points

bull Measure carbon dioxide emissions throughout a value chain or product lifespan Look for potential improvements

bull Ensure regulatory compliance By knowing what the regulations are companies can determine what metrics need to be in place

bull Identify ways to promote and profit from more environmentally-respectful goods and services Companies can promote environmentally-respectful goods and services while also using sustainability to help the company

Monitor the effects of each project to determine which strategies have the most impact both physically in terms of

the environment and financially in terms of revenues and cost savings Publicize how metrics are tracking over time

Actuate for Sustainability Management

Actuate for Sustainability Management is a solution by Actuate that integrates highly interactive visually rich dashboards There are pre-built sustainability scorecards strategy maps and over 100 pre-built metrics across the economic social and environmental aspects of sustainability

The Actuate BIRT Performance Scorecard supports the metrics defined including

bull Reducing an organizationrsquos environmental footprint

bull Building green facilities and buildings

bull Compliance and reporting

bull Manufacturing

bull Community and engagement

bull Human development including employee well-being and satisfaction

Actuate for Sustainability Management provides collaboration across regulators consumers and non-governmental organizations Dashboards and scorecards come integrated with reporting so as to improve reporting to stakeholders both outside and inside of an organization All of the products are built on Actuatersquos dependable cost-effective and scaleable platform

Performance Management solutions help organizations understand act on and influence business decisions processes and measures of business success The 2009 Actuate Performance Management Excellence Awards will honor customer success stories in four key areas Over the next several issues Perform Magazine will highlight some of the entries in these categories

Category 1 Go Green

Each year the concept of environmental responsibility has implications for both the private and public sector specifically with regards to how each measures the performance of their operations For organizations using the Actuate BIRT Performance Scorecard to measure the progress of organizational Green initiatives how have they responded to the challenge and how do they use the BIRT Performance Scorecard to ensure they stay on track

Category 2 The Perfect Slice

Successful Performance Management comes in all sizes Some initiatives are enterprise-wide while others are focused around specific business units or functions yet still encompass a holistic approach to Performance Management by looking beyond financial indicators to a more balanced set of indicators This category includes organizations deploying the Actuate BIRT Performance Scorecard with a focus on improving the performance of individual business units or functions and includes the measurement of people and processes

Category 3 Big Bang

Carefully executed Performance Management initiatives begin with a measured approach to the initial implementation and quickly expand to other parts of the organization aligning business units to strategy at each step This category is open to Actuate customers who initially implemented the Actuate BIRT Performance Scorecard to a limited user community and through careful change management and planning expanded the use of the BIRT Performance Scorecard throughout the organization

Category 4 Super Size

Award-winning enterprises achieve breakthrough results in the financial customer operational and people perspectives of their business and leverage internal champions across the organization to ensure ongoing and sustainable success The key to achieving these results lies in total visibility of all business units aligned to strategy This category is open to any Actuate customer with a fully deployed enterprise-wide Actuate BIRT Performance Scorecard implementation

Actuate Performance Management Excellence Awards2009

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HealthNow New York Inc headquartered in Buffalo is one of New York Statersquos leading healthcare companies doing business as BlueCross BlueShield of Western New York BlueShield of Northeastern New York HealthNow in the Central New York region and Brokerage Concepts Inc in Pennsylvania

Improving the health of people and communities are HealthNowrsquos corporate priorities and for more than 70 years the company has been a proactive partner in health working to improve the quality of care and the quality of life for everyone it serves In 2008 HealthNow provided access to care to more than 820000 members and in 2008 company revenues grew to $227 billion

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution and describe what you were trying to achieve as a group function or department

A few years ago HealthNow New York Inc determined that the key to its continued success would be its ability to differentiate itself from other healthcare plans in ways that could not be readily duplicated or copied by their competitors In an increasingly crowded marketplace to get the attention of new customers and retain existing ones HealthNow needed to set itself apart from others

This lasting competitive advantage needed to come from an organizational culture that was dedicated to a relentless focus on meeting customersrsquo needs It needed to be highly responsive supportive flexible and nimble particularly as the healthcare marketplace continues to change with more responsibility placed upon its customers

To that end a new business model was implemented to provide the framework for customer focus Under the new structure the company was divided into four strategic business units (SBUs) each responsible for financial contribution customer satisfaction medical utilization and market share of a specific book of business

Each SBU includes its own set of functions including sales account and broker management product configuration customer intelligence pricing enrollment and billing customer service medical management and HR support Each business unit is led by an executive who is fully accountable for the unit operations and for bottom-line performance of the entire business unit Each SBU is supported by various corporate support functions (Actuarial IT Legal etc)

Implementation of the new business model began with a reorganization of the senior management structure The senior management of each SBU has specific incentive goals as well as strategic goals aligned with the corporate incentive Those strategic goals then drill down to ldquoteamrdquo incentives and to a blend of strategic and operational goals

This was a completely new way of looking at our business It was a blank slate requiring new processes and new methodology as well as an examination of existing metrics and processes to determine what added value and where the strengths weaknesses opportunities and gaps were

Under this new structure the Government Programs State and Federal products SBU ndash which historically had some inefficient end-to-end processes lacked internal controls and had minimal oversight of financial performance ndash was able to set a foundation and develop a growth strategy In order to achieve this mission and to align track monitor improve and communicate performance the Senior Vice President of the Government Programs SBU elected to utilize a Performance Management framework via the Actuate BIRT Performance Scorecard

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

As a point of reference the Government Programs SBU is comprised of a State Government Programs team a Federal Government Programs team an Operations team and a Sales team The Performance Management design team was comprised of the Actuate system administratorfacilitator the Government Program financial reporting manager and two SBU data analysts Input from the various teamsrsquo management staff was gathered as the design got more granular

Discussions around the design of the Government Programs scorecard began with two basic questions

1 What are the handful (ideally six to eight) of key performance indicators that are necessary to run and manage your business and to indicate that yoursquore on the right path to achieving your goals

Defining the key performance indicators was a challenge that required the Actuate system administrator in a facilitative role to get intimately involved in order to keep the discussions focused and high level and to limit scope creep The incentive goals were clearly defined at the corporate and SBU level however the tough question was how should they drill down in the BIRT Performance Scorecard The facilitator posed the following questions to the other members of the design team

bull How do you usually look at your business

bull How are the primary source documents that capture this information structured

bull What other ways do you look at your business

Taking the answers to these questions a step further the facilitator asked the next question Is the drill-down structure the same for the core strategic or team metrics The answer was yes By taking this approach we were provided with consistency in how the teams look at their business and the performance of their core indicators

Once the incentive and strategic goals were identified more leading and lagging operational measures were defined such as

bull Call centers

bull Accuracy

bull Quality

bull Sales Performance

2 Who is your audience

Through the entire measure selection and definition process the design team was constantly reminded to keep a second question ndash who is your audience ndash in mind This helped keep the focus on the critical few and keep the number of metrics down to a manageable amount Links to supporting documentation were created to provide easy access to the granular data without burdening the scorecardrsquos objective

The audience in this case was the SBUrsquos Senior Vice President followed by the State Director Federal Director Operations Director and Sales General Manager It then cascades down to each directorrsquos management team and the data providers

In order to provide a complete and consistent picture of State and Federal performance for senior management where

gt Performance Management Excellence Awards

HealthNow New YorkCategory 2 Entry The Perfect Slice

gt Performance Management Excellence Awards

[ Figure 131 Homepage Map ]

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Vol 6 Issue 2 2009

possible the same or comparable measures were created for each team For example when looking at the various call center metrics ndash even if the definitions and targets slightly differed ndash if one team was consistently exceeding or meeting their target it sparked group discussion around best practices processes staffing and target definition

Utilization of Maps continues to play a major role in communicating performance Again focusing on our audience there is a Map at the Senior VP level which then links to a high-level Map for the State director and staff and for the Federal director and staff The one-page snapshot allows management to easily view performance then to drill down to specifics via additional detailed Maps or Books Because the audience embraces the Maps concept a ldquoWhere is itrdquo Map containing all Maps and Books by SBU was created Itrsquos a quick and easy reference tool

3 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

Quantitative results are achieved through the promotion of visibility and awareness The Return on Investment may not fit a conventional definition but can be measurable and accomplished by challenging the data targets and accompanying commentaryaction plan narrative to drive performance improvement Are the targets realistic yet aggressive Are action plans being documented and carried out Are the actions discussions and decisions leading to improved performance and processes

Government Programsrsquo membership is measured and monitored in various ways via the BIRT Scorecard and other sources For example Federal membership is measured by product then by plan It is also measured by market then by product then by plan By creatively visualizing performance in multiple ways via a Map those same data results can sometimes become very obvious telling a different story that may not be obvious via standard reporting methods It may clearly illustrate that a specific product in a specific market is continuously under-performing for example Fact-based decisions can then be made as to whether or not to continue with this product in this market or it may initiate discussions as to how to grow and retain profitable membership for this product in this market

Another more recent example is an initiative to track claims-review savings By reviewing claims via various processes what savings can be recouped or realized What specific areas are State and Federal teams focusing on that can contribute to overall savings for the SBU Again where applicable there should be consistency in the metrics across

teams Placeholders are included to promote visibility to keep them in the forefront even though the data or processes may not be in place yet But by capturing results on one page via a Map it bridges potential gaps between the teams promoting awareness and synergy across the SBU

4 Qualitative results What ldquosoftrdquo or intangible benefits has the group department or organization received as a result of this solution

A major benefit of the scorecard framework for the Government Programs SBU has been the identification and alignment of roles responsibilities and accountability

The SBUrsquos Senior VP monthly leadership meeting focuses on four areas

bull Performance Performance is covered via the existing incentive strategic and operational metrics

bull Action plans Documenting action plans in the Performance Management Software Suite versus verbalizing action plans establishes ownership and accountability At subsequent meetings management follows up on key action items or plans to determine whether or not the corrective action did take place and if yes did it have the desired results

bull Strategic direction The strategic direction of the various teams is captured as a springboard to strategic thinking discussions and planning So as not to lose sight of short- and long-term strategic planning this aspect of the business now is housed in the BIRT Scorecard completing the strategic planning of the ldquoHow are we going to get thererdquo and ldquoAre we there yetrdquo cycle This holistic approach helps minimize the chances of our scorecard becoming too focused on operational performance and keeps strategic planning dynamic and visible

The value of these metrics is not in the data but in the commentary The individual teamsrsquo strategic direction ldquometricsrdquo are subjective red = 1 yellow = 2 green = 3 The target = 3 Each metric includes a description of the specific strategic path we need to research or move forward on as well as what goal achievement it supports The ldquodatardquo ndash or color ndash is based on basic questions like What did you hope to achieve this month vs What did you actually achieve this month Were there any successes barriers obstacles In addition to accountability the entire SBU benefits from the sharing of information having meaningful discussion taking appropriate action and collaboration

bull Key initiatives The last critical component is the identification and alignment of key initiatives that

are necessary to support achievement of the various incentives strategic goals and direction and operational goals As with the strategic direction metrics the value is in the narrative with the color reflecting what was accomplished for the specific reporting period

5 Innovation Why should this solution be considered an Innovative Solution What makes it unique groundbreaking and superior What unintended results did you realize

Over time the Government Programs Performance Management framework evolved into an innovative solution The process drives performance and isnrsquot necessarily focused on ldquocolorrdquo Rather itrsquos about having the right people in the same room on a regular basis to drive meaningful discussion and to take appropriate action to improve performance

Outside of the standard processes it was the monthly review process that drove effectiveness revisions enhancements and restructuring of the meeting schedule agenda and format The Government Program financial reporting manager would meet with each director and general manager to review their scorecard for completeness as well as for performance from an operational perspective The State and Federal team directors would then meet with their respective management teams to review and discuss performance results in preparation for the joint Government Programs Leadership Meetings The audience included the Senior VP down to team managers key data analysts (data providers) and support function representatives Through trial and error management learned to maximize their time and effectiveness by concentrating on key metrics and topics rather than trying to review all metrics identify leading indicators versus only outcome results and include strategic thinking and initiatives Today the monthly leadership

meetings are much more productive and look at strategic and operational performance

As involvement and participation increased in the team meetings as well as in the leadership meetings it removed silos opened communications enabled the sharing of information and best practices and promoted teamwork across the SBU But most importantly it brought about an awareness and a sense of unity and commitment within the SBU to achieve their goals something that was lacking before

While it was not part of the initial scope management realized shortly after implementation that efficiencies could be gained by replacing an in-depth hard copy monthly report with BIRT-generated results Since the BIRT Scorecard contained the same data with supporting narrative ndash plus additional metrics with narrative ndash monthly performance was captured via a monthly report Book various Maps and BIRT-generated reports Elimination of the hard-copy report was an unintended way of encouraging a more active use of the Performance Management software by management to monitor performance thereby increasing user familiarity with the contents features functionality and navigation

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

Sustainability is achieved through a continuous process of revisiting the scorecard when there are organizational changes looking at the business direction shifts goal changes process changes etc To ensure that metrics are still relevant a filtering process is held with each director and general manager every six to eight months or as necessary During this exercise questions such as the following are asked

gt Performance Management Excellence Awards gt Performance Management Excellence Awards

[ Figure 132 CEOrsquos Book ]

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Vol 6 Issue 2 2009

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

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3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

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proprietary Those modular boundaries make Open Source an ideal fit

What IT Looks For

IT acts ndash for the most part ndash as the gatekeeper to Business Intelligence When searching out new software IT generally looks for three things

1 Better alternatives to the status quo Specific features that are better for example

2 Ways to cut costs With commodity infrastructure in place IT has to try to drive down costs

3 Unique attributes There may be something they want to do but cannot do using their current system or features that might not be available (For example their mainstream BI package might not have web-accessible dashboarding that can be self-service)

Why Open Source

In addition to examining the sectors left vulnerable by Open Source the North Bridge Venture survey also asked What makes Open Source attractive Price was the most popular answer In addition to the capital cost of licensing Open Source drives down acquisition cost as companies no longer have to go through heavy proof of concept Itrsquos also easier to trial things and if license costs are less then maintenance costs are also less Finally unbundling maintenance support and service means that businesses can choose from a menu of services instead of being forced into a 20 percent single lump fee

The study also showed that companies found that Open Source offered freedom from vendor lock-in In addition it is flexible with easy access to commodity code in order to develop embed and build content into websites

Another 2008 study by The 451 Group gave a list of what organizations saw as benefits to Open Source once it was already introduced At that point flexibility ndash by 05 percent ndash came out over cost In this instance though the definition of flexibility was different respondents were impressed by the fact that there is no vendor that dictates when they have to upgrade how they have to upgrade and why they have to upgrade For a commercial vendor at end of life or desupporting versions of their software a sales and marketing schedule will often require a release every Q1 whether they are ready or not As a result

companies will be forced into an upgrade they donrsquot want that was released simply because marketing dictated it and not necessarily because it was ready Open Source is typically not under those same types of pressures

Buyers were also impressed by scaling costs if an organization has 50 initial licenses and pushes it out to 150 more people in BI lowered costs come in beyond the initial capital costs As well companies are not dependent on vendors for service or for additional pieces of technology

Whorsquos Adopting

Open Source Business Intelligence adopters include

bull Independent software vendors solution providers and OEMs They are taking Open Source BI and pushing it into products that need reporting and dashboards Theyrsquore beginning to build capabilities using Open Source into quality networking gear file servers and databases

bull People who have traditionally been underserved and have not been getting what they need for whatever reason They may not have had the budget or their current vendor might not offer some of the functionalities that they want Possibly it could be over-serve at least half of the features in a major BI stack today never get used

bull Developers Web developers provide information ndash especially database information ndash on their websites while internal developers have to build reporting features into applications and typically do not have access to the tools they need Tools like BusinessObjects and MicroStrategy live in a data warehouse in a different area of the organization and canrsquot be embedded easily

In terms of the organizations adopting Open Source BI many are on the small side with less than $100 million in revenue But very large organizations are just as likely to adopt Open Source solutions as well This is the inverse bell curve of Open Source BI implementation

Smaller-sized organizations have fewer data sources and more manageable data volumes are more interested in cost flow and also donrsquot have the same level of data volume and complexity that might exist in a medium-to-large organization or deployment Much more manageable data volumes less cost to scaling and fewer technology issues in terms of complexity make these ideal environments for Open Source

Open Source drives down acquisition cost as companies no longer have to go through heavy proof of concept ldquo

rdquo Large organizations though have equally ideal environments They arenrsquot for the most part introducing Open Source at an enterprise-wide level but rather have projects with specific features that need to get done The project in question may exist only within a single department which pushes down data sizes and deployment complexities making them a good target

Introducing Open Source BI

Open Source BI use often comes in at the edges and results from discontinuity An example of such a discontinuity might be a company restart many data warehouse projects started with a particular data model ndash copying a production database and putting reporting on it for example ndash and have to do a schema change At that point the cost of switching from one BI tool to another or from one ETL tool to another is fairly low Everything has to be changed anyway metrics change schemas change queries change The same is true with platforms moving from one database to another involves an integration of an entirely new set of systems These discontinuities often allow for the introduction of Open Source

New interface requirements can also lead to Open Source implementation as a company attempts to bring data-warehouse data into an application deploying it out through a website or via an application But some users may only need a few single simple production reports and donrsquot need to be served through a tool that costs between $1000 and $1500 per seat which is the average per-seat deployment cost of iTools Companies can reserve their BI tools for core individuals who need the flexibility and features and can build Open Source into applications for large-scale but simple reporting

In fact in most cases organizations donrsquot replace an entire system with Open Source That only happens in the cases of large discontinuous change where the features are good enough in an Open Source tool the deployment matches and there is no reason for pushing through a high-cost high-complexity solution Whatrsquos more likely to happen is an augmentation where a particular department ndash or a segment of users or particular class of tool ndash is given something that they need in Open Source For example a BI tool might be good and flexible with interactive reporting that can get production reports out and do the schedule but perhaps doesnrsquot have statistical features rolling out something like R to only a couple of analysts and layering that on top of the warehouse may be the solution

Augmenting and bringing in new features and capabilities in areas where Business Intelligence tools might be weak is typical of Open Source implementation This is an opportunity to augment an existing environment in a cost-effective manner to build features into that environment and to get the features specifically needed without paying for a whole package that isnrsquot all necessary

In contrast with what happens in the case of most traditional models much of the time the need for Open Source applications comes from the bottom-up and is established from a point of need from a developer or a department trying to get something done There are no enterprise sales representatives making calls or going through a procurement process where vendors and financials are examined There is also the ability to put something out in real terms instead of relying on a fake proof of concept where following that proof of concept companies are forced to either pull out and throw it away or to license the software

Roadblocks to Implementing Open Source

Misconceptions still exist around Open Source based largely on the idea that these projects are being developed by teenagers in their parentsrsquo basement a myth that is more than a decade outdated as today Open Source projects are generally run by commercial Open Source providers with paid developers Still a lack of information can prove a problem for organizations introducing Open Source This often plays out in the legal department which reviews all contracts and may not be informed when it comes to Open Source software licenses An Open Source license will be missing half the standard clauses the lawyers are used to clauses of restriction that dictate how to deploy what can be deployed where it can be deployed and how the software can be used Most Open Source licenses do not have these same clauses and lawyers will want to know why theyrsquore missing That can be another road bump in getting the software acquired

Support can also be more confusing Most major projects have commercial vendor support behind them But unbundling is also available which means buyers donrsquot have to purchase support but instead can buy the subscription model that covers only bug fixes integrated patch testing and certification against databases This is because enterprise support is often overrated more often than not internal support solves more problems than the vendor does

Augmenting and bringing in new features and capabilities in areas where BI tools might be weak is typical of Open Source implementation ldquo

rdquo

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Implementing Actuatersquos BIRT Open Source Technology

BIRT Actuatersquos Open Source technology was developed with the Eclipse Foundation and does an exceptional job in meeting web-reporting requirements while utilizing the Open Source model Itrsquos a Java tool with a web-centric development and design paradigm BIRT reports are built with the intent of publishing to the web exclusively or more exclusively than is the case with other alternatives that are typically intended originally for paper BIRT is also very modular and very component based allowing users to do as much or as little as they want to deploy as much or as little as they need when theyrsquore creating their reports or embedding this technology within their environment

One of the goals of BIRT is to cater to the power that is needed for many of todayrsquos reporting projects but also to offer the simplicity that means an individual report creator can be very effective at doing their job simply by using the BIRT design tool itself That goal has proven successful so far with 65 million downloads of BIRT since the projectrsquos inception 45 million of them in 2008 alone BIRT is in fact one of the fastest growing Open Source projects on the internet right now

BIRT does a great job of supporting a wide variety of report types it supports BRD Pro BRD BRS and IV and as users

build components throughout the project they can reuse those elements in subsequent future reports It also supports standards such as HTML cascading style sheets JavaScript Java and XML adding the underpinning technologies for either customization or enhancement and allowing developers to leverage BIRT while using the skills that theyrsquove already developed As an integrated report development environment BIRT also provides graphical and robust tools for the most common reporting tasks including query building ndash such as graphical object layout ndash and representing such as charting As well BIRT includes both online help and documentation

Itrsquos an incredibly robust tool and is capable of being embedded of being delivered to small groups or across the enterprise leveraging Actuatersquos commercial platform New capabilities include the ability to add interactive Flash objects into the environment to build personalized dashboards to create ad hoc reports and to create interactive viewing Actuate also recently introduced the JavaScript API which allows users to embed approximately a dozen lines of JavaScript into any webpage and from that access any content within the Actuate environment including any BIRT report that is hosted in that environment which in turn can be delivered to any type of JavaScript-enabled browser

BIRT is built in the Eclipse Project Actuate sponsors and chairs the project management committee for the BIRT project It is Actuatersquos third reporting technology built from scratch which means there is a high degree of long-term experience integrated into the BIRT environment

How the End User Benefits From BIRT

BIRT comes complete with 65 million sets of eyes worldwide looking at it and suggesting changes That has driven its enhancement in the marketplace The overall number of committers on BIRT historically is high and the current level of committers on the project remains high itrsquos nearly the same as Apache committers in the market today

Actuate ndash in its sponsorship of BIRT ndash has added and created a community called BIRT Exchange which is a resource for the BIRT development user to continue to enhance their BIRT expertise and to continue to gain help if needed from the BIRT community No question goes unanswered on BIRT Exchange which is at odds with what people often find in other Open Source forums where a huge number of questions remain unanswered from the audience Within the BIRT Exchange environment there are three different forum administrators who make sure every single question is answered BIRT Exchange also hosts the documentation for the entire BIRT product line as well as videos and webinars designed to further the training and adoption of BIRT itself

Actuate employs more than 50 developers on the Eclipse project itself with documentation and publications available in support of the project available at amazoncom

Actuatersquos Value Add

BIRT is modern and flexible and open Since itrsquos built within the Eclipse Project anyone who knows Eclipse knows how to use it Actuate adds interactivity which take the form of Flash widgets embedded into the BIRT development environment ndash allowing users to build their own types of dashboards ndash or through interactive viewing to transform a report from being static to something an end user can manipulate and evolve over time This is important because reports typically become obsolete quickly the requirements that they originally meet changes as users use the reports to become smarter and then the questions they want answered change Which means that providing this kind of interactive content is key to the success of a Business Intelligence project

Extending BIRT Capabilities

BIRT development tools and the BIRT engine are available as Open Source and are widely distributed Typical capabilities such as JavaScript and SQL skills are required to become familiar with the BIRT product

The second level of capability is the ability to embed BIRT within applications and to begin to add degrees of interactivity to the environment such as Flash widgets or the interactive viewer This allows a user to create robust rich embedded applications

The third level is for workgroup or departmental-style applications or small organization-type applications To adopt this type of Open Source technology individuals would introduce BIRT plus the single server iServer Express a hybrid of Open Source and commercial technology

Finally there are organizations that seek enterprise-caliber or enterprise-level deployments that want to publish BIRT applications outside the firewall to secure these applications for millions of users and to support very high degrees of performance and reliability This type of scalability requires both good design and trial and error as operating systems platforms and other elements continue to evolve Maintaining best performance for very large-scale environments means making sure that each one of these items is optimized

Open Source Vs Commercial Technology

The overall platform that BIRT delivers is a complete set of both development and deployment options for creating any type of environment Users can be characterized across a number of different lines from incredibly skilled Java developers to everyday report developers from people familiar with Actuate to those who are not from power users to business users etc

There are two fundamental questions that these users need to answer

1 Is BIRT the right technology for the application theyrsquore creating

2 Whatrsquos the best way to deploy it through Open Source or through commercial deployment means

The answer to the second question is reliant on a number of variables In the following situations for example Open Source would be the ideal alternative

bull Those users who want to use BIRT for individual use

bull Those who want to embed it into their own project

bull An ISV who has the technology in their own application to support printing and baked-in reporting needs

Converting to or supporting a commercial model meanwhile occurs most frequently at the enterprise-server level for organizations deploying the environment to hundreds or thousands of users It supports a wide variety of types of users

But both the Open Source and commercial models employ a common report design format Itrsquos a progressive development experience or a collaborative report design and collaborative process allowing each user to participate in the definition and the evolution of their reporting environment while at the same time using tools that are appropriate for their skills a novice user isnrsquot being overwhelmed by too many features while the power user or the highly skilled users receive exactly the right kind of technology and level of development capabilities theyrsquore accustomed to

Yet some of the decision-making criteria lean more effectively towards a do-it-yourself situation using the Open Source type

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of model and some lean more appropriately to a commercial investment and a commercial tool A growing level of complexity often drives commercial interest but certain complex functionalities ndash including supporting web services or web services SQL or other examples of integration techniques ndash the Open Source model is more than capable of supporting on its own

The applications Actuate deploys are information applications When choosing the paths of how to proceed ndash with regards to choosing either the Open Source or commercial interest ndash there are typically four premises to consider in an information application

1 Is the report or the application able to consume and collect data from one or many sources whether itrsquos a single report or a complex application Typically when the data sources are simple and the data connections well understood either Open Source or commercial interests are appropriate With meta-data layers and extraction layers the commercial model tends to be more effective But if itrsquos an embedded project using POJOs or other Open Source or specialty connectors ndash unique connectors ndash that often keeps a project more suited for an Open Source deployment

2 How is it able to aggregate and transform that data into meaningful information Looking at aggregation the same premise holds true if therersquos simple aggregate functions or automatic cross tabs or even custom or reuseable business functions both the Open Source and commercial models are appropriate In terms of embedded Java functions those aggregations are appropriate in either case Itrsquos when entering into areas of security ndash of parameter-driven values dynamic-parameter collection cascading menus etc ndash that a commercial purchase tends to excel over the Open Source version

3 What are the presentation options or formats available to present that data When the presentationrsquos fairly simple both Open Source and commercial apply When

charting cross tabs and embedded graphics are the norm then the two are served both in Open Source or commercial interests When JavaScript is starting to be used as a customization or a dynamic-properties delivery vehicle both the Open Source and commercial models are effective although keeping this content embedded within an environment is probably more appropriate using Open Source Itrsquos only when introducing elements such as interactive viewing capability or the ability to manage an environment through a management console capability that the commercial option begins to edge out

4 Are we able to achieve the levels of scale that we need to get that information out to every user whorsquos interested in it When individual use is appropriate Open Source is a better fit When transient content is what a company is delivering thatrsquos usually a better fit with Open Source as well as is embedding To support a collaborative reporting effect or to support a variety of developers and users ndash especially users with different skills ndash the shift begins to move towards a commercial style of delivery When therersquos custom delivery required such as JavaScript API the commercial environment is also more appropriate

These are the capabilities of different deployment options for both the Open Source platform as well as the Actuate commercial platform geared towards allowing organizations to get the value that they most see fit within their environment or their application Typically for environments that have a heavy requirement for infrastructure thatrsquos what drives the commercial purchase whereas customization or individual interests typically drive Open Source

The key thing for any organization is to first decide what kind of reporting technology they need ndash whether it be Open Source or commercial ndash and then to look at their own needs And finally consider the BIRT environment as a vehicle that meets web reporting needs

For more information on BIRT visit actuatecom

A growing level of complexity often drives commercial interest but certain complex functionalities ndash including supporting web service or web service SQL or other examples of integration techniques ndash the Open Source model is more than capable of supporting on its own

ldquordquo

One of the benefits of Actuatersquos Business Intelligence Reporting Tools (BIRT) is that very capability for flexible functionality thatrsquos adjustable to usersrsquo needs Every component of the BIRT technology ndash whether in the Open Source or commercial versions ndash builds upon the components before it creating a robust and flexible system designed to meet each organizationrsquos unique Business Intelligence needs

Choose the Right Graphical ToolThe first step towards evolving organizational Business Intelligence is choosing the right graphical tool The Eclipse BIRT technology for one is a visual designer thatrsquos geared at report developers as well as JavaScript and Java developers and can create a wide range of reporting technologies and web reports BIRT builds content that is specifically intended for the web and uses techniques that are expected when building web pages and web content It doesnrsquot use a banded report writer design or development metaphor typical of many older report-authoring products including Crystal Reports or Jasper

BIRT is the third from-scratch product that Actuate has sponsored and developed and as such it takes into account more modern capabilities and techniques for developing web content In building BIRT Actuate has drawn from its extensive market knowledge borrowing best concepts from other products as well as from its own Reusability and the ability to include programmability within the environment have been traditional Actuate capabilities that have been included in BIRT but BIRT technology also uses de-facto standard programming capabilities such as embedding JavaScript and Java into the application rather than using a proprietary language

Open Source is the core reporting capability and value-added commercial products can be added to it More than 50 developers are employed by Actuate on the BIRT Open Source project similar to the number of developers Apache has applied to the Apache project Alongside these Open Source developers are Actuate developers working on the commercial product of BIRT

Open Source BI

Cost-Effectively Deploying

When deploying Open Source Business Intelligence technologies multi-layered functionality that can be added as needed serves to create a cost-effective way to build a solution specific to an organizationrsquos needs Each function acts as a building block as a company creates exactly the capabilities necessary for the job on hand without wasting money and resources on items that arenrsquot needed

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Another benefit of BIRT is the BIRT Exchange community Actuatersquos user forum which is far more robust and extensive with documentation and help information than has been found traditionally Nearly every forum post has an answer to it in some form which is not likely to be experienced with any other Open Source project or forum-based community Meanwhile the community itself is vast and growing rapidly Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate ndash where a developer may have downloaded 20 copies over its history ndash adds up to 350000 different users of BIRT technology That number is growing at roughly double the rate of the other two most popular Open Source projects

Add Value Through Features

Actuate BIRT technology has a range of features that will add value to a companyrsquos BI project

1 In addition to being a graphical report design tool BIRT takes into account the long-standing tradition of Actuate to support reuse libraries and reusability across the entire environment It is able to not only reuse BIRT objects and BIRT components ndash such as charts and tables ndash but also to incorporate and use JavaScript objects and Java libraries in the reports themselves This creates a rich experience for driving and building web-oriented reports

2 BIRT offers navigability While a user is in a graphical design tool they should be able to take advantage of some of the core capabilities that the technology offers such as a visual hyperlink builder that keeps information in context as well as the ability to create cross tabs dashboards and charting mechanisms that are active and navigable Inserting type of content ndash so that it is both consumable and scoped in context for the user ndash is important to the success of deployment Hyperlinking in context is one of the key elements to supporting Open Source deployments

3 The Eclipse BIRT environment supports a variety of graphical types or charting types including not only grids and tables but both static and dynamic images as well that can be linked back to databases or can support conditional formatting and a variety of conditions baked into the report BIRT is able to handle a large variety of chart types and styles allowing organizations to convey exactly what theyrsquore trying to deliver to their users Supporting rich charting is one of BIRTrsquos key core capabilities

4 The Open Source Eclipse engine can be embedded into or deployed from an application quickly within a JVM Users can add content generation or report generation functionality easily and quickly to their application by inserting it into their run time The BIRT engine itself is a key component in the Eclipse BIRT project It has a variety of extension points built into it which means itrsquos able to not only generate supported output types ndash such as HTML or Adobe PDF ndash but can also create custom emissions from a BIRT report such as an emitter for mobile content or an emitter for a particular report format of the userrsquos own perhaps to feed another application With a robust API structure within the Eclipse BIRT engine these are all possible

Build On Interactivity for a Richer Experience

Building onto that BIRT experience organizations can add more interactive and visual elements to create more appeal within their BI projects

Animated Flash Visuals Animated Flash visuals built into BIRT reports lend to a richer more enjoyable experience for end users They can take advantage of the navigation enhanced with the visual and animated appeal that Adobe Flash offers

The Actuate BIRT development tools include 266 Flash widgets This is one feature that differentiates BIRT Open Source with the BIRT commercial product Those who purchase the development tools from Actuate will immediately receive these Flash objects that can be deployed not only within Actuate BIRT reports but within Eclipse BIRT reports as well they are portable across both environments

Interactive Viewing Often users have a difficult time articulating their requirements to report authors That problem is alleviated when authors can deliver them an interactive viewing experience allowing the report to become changeable and adjustable by the user The user can select a particular column and can apply a filter to that column they can toggle back and forth between viewing perspectives rotate charts change the grouping of a report or add more visualization to it with something such as conditional formatting They could even navigate within the report using a joystick or deploy that report or portlet content anywhere they want And ultimately they could drag and drop and change ndash or add columns to the report directly ndash by manipulating the report as needed

This interactivity gives the end user the ability to enjoy more freedom with regards to how they use the report It also

addresses one of the biggest conundrums with regards to report delivery giving users a report provides them with content that makes them smarter and as they get smarter they take that information and they work it into their knowledge which in turn changes the questions that they ask of the report This means that what they need from a report changes over time Allowing users to modify reports themselves is a key goal in supporting BI processes because as users become smarter about what theyrsquore doing with their content they can help assist in defining what the next iterations of their web content might be

Choose the RIght Server to Store and Schedule Content

Actuate has spent the last 15 years developing the Actuate iServer It comes in two styles ndash iServer Enterprise and iServer Express ndash and offers a robust environment for creating managing and delivering BIRT report content to users on schedule on demand or on an ad-hoc basis directly

The iServer Express is a single-server deployment that is appropriate in scenarios where there is less active usage it supports a sequential batch generation capability and roughly 10 user connections per second as the users connect to the server It offers that scheduling and deployment capability at a very cost-effective price point while allowing organizations to secure their report content using the iServer repository to take advantage of some of the presentation layer capabilities that Actuate offers through its information console to present and manage that content on behalf of the users and ultimately to create a full reporting experience for users directly

Alternatively for those deploying a very large system ndash perhaps one that operates outside of the firewall in a traditional web information application ndash there is the iServer Enterprise The iServer Enterprise is massively scaleable but also very predictably scaleable as companies double the resources that they can apply to their environment they double the throughput and user numbers that theyrsquore able to support with the iServer It is also highly configurable in regards to how content is deployed and supports multi-tenet environments or multiple application environments In addition it can be componentized so that a presentation layer can be separated from a content creation layer or a business logic layer from a data management layer ndash including the meta-data layer itself ndash to help abstract and manage the queries driven

Determine Where Content Can Be Distributed

Actuate JavaScript API is a mechanism that allows the user to take a JavaScript library embed it into any HTML page and then from that JavaScript library securely access Actuate content from the iServer This particular capability allows the user to put either a report part ndash a reportlet ndash or an entire report directly into new locations This could be used as a user attraction vehicle it could be used as a dashboarding vehicle or it could be an integration point for systems that are written in NET rather than in the j2e environments that BIRT typically supports

Deliver Mash-Up Applications

Delivering mash-up applications using all of the functionalities listed above is simple in the BIRT technology and lets users themselves participate in the definition saving creation and management of their own dashboard displays and it allows them to watch exactly the KPIs that they care about

This is done through Actuatersquos Mashboard Customization to the Information Console which allows users to take any BIRT report content and to deploy it directly into a mash-up style environment where they can define exactly what pieces of content go into their application and what doesnrsquot These dashboards can also be roll-based so that particular pieces of content can be deployed to particular types of users directly then if they want to continue to customize that capability theyrsquore able to do so

Conclusion

Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques such as Flash and Ajax in a web-based design metaphor It is designed to evolve effectively over time and is meant to give organizations a choice for every type of user The first decision point of any organization is to recognize whether or not BIRT is the right reporting technology for the information application in question Once thatrsquos decided companies must choose the technologies they want to offer each type of user and then consider how they want to deploy those technologies directly

A wide variety of capabilities can be build into the BIRT environment ranging from Open Source to commercial Actuate products It is a flexible environment and is robust for delivering to users any type of information-driven web content

Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate adds up to 350000 different users of BIRT technology ldquo

rdquo Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques ldquo

rdquo

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The Challenge

Guiding a ship requires visibility into navigation operational performance and up-to-date information to make decisions This type of customer challenge drove ABS Nautical Systems

to incorporate Actuatersquos BIRT technology into its NS5 fleet management software

A leading software provider to the maritime industry ABS and its NS5 modular ERP system help customers manage principal operating expenses associated with vessels and offshore rigs ABS provided basic scheduled reporting and offered ad hoc reports in response to specific customer requests but customers demanded better functionality including the ability to easily extract and create both standard and custom reports

Producing reports to customersrsquo satisfaction took time as reporting was not central to ABS Nautical Systemsrsquo expertise Further it took valuable programmer time away from developing new features and functions for its core product This created the need for ABS to leverage a tool to provide highly-developed rich information application functionality increasing the power of its fleet management software while enabling its customers to access more flexible reporting tools

The Solution

With its own expertise in Java development and their existing reporting ABS searched for an Open Source reporting platformtool that they could leverage and seamlessly embed in their software ndash one that would deliver for ABS and their customers both immediately and for future expansion After considering Jaspersoft Actuate and Pentaho ABS selected Actuate and BIRT for their on-demand reporting solution

ldquoActuate has a clear roadmap and direction scalable platform financial stability and Open Source development platform The Actuate offering was an excellent fit because the technology

ABS Nautical Systems (NS) is one of the leading providers of fleet management software packages available to the

marine and offshore industries It offers a fully integrated modular approach to managing the principal operational expenses associated with a vessel or offshore rig ranging from maintenance and repair to regulatory requirements purchasing and inventory and crew management and payroll

SAFE AT SEAABS Nautical Systems A Case Study

ldquoBoth the technology roadmap and scaling are key It was an excellent fit for us actually ndash you had the right technology yoursquore Open Source based BIRT technology was key and you were the most helpful in helping us do the prototyperdquo

- Sandipan Bhattacharya ABS Nautical Systems

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31

Vol 6 Issue 2 2009

used Open Source BIRT allowing us great flexibility in developing NS5 Actuate was most supportive in helping ABS NS do the prototype ndash both their Professional Services as well as the account teamrdquo states Sandipan Bhattacharya CTO for ABS NS

The new BIRT-based on-demand reporting tool within ABS NS5 is a web-based application that enables clients to quickly and easily generate custom reports from any NS5 module It handles reporting for the central elements of operational management ndash from regulatory requirements to payroll to planned maintenance programs But it takes NS5 beyond operational duties to consolidate data from across software modules to better monitor key performance indicators (KPIs) such as time to repair spare parts turnover and purchasing cycle times

The interactive information views that BIRT provides help fleet managers to achieve maximum efficiency empowering NS5 software users to get what they want in terms of the reports they need in the way they want them as each department or company may want to look at data in a different way Lastly that same data is more accurate because it comes as near real-time information at the time they need and can be benchmarked against how well they are performing to provide trends for evaluation

BenefitsResults

bull Speed time to market with new features by focusing on core competence in its software platform This allows ABS to focus development on its core product and improve customer satisfaction by rolling out and providing complete reporting modules This also helps decrease development expenses and support costs

bull Expand available market with completely new product lines enabling ABS to increase its client base to companies that didnrsquot know about them or had previously disregarded their offering The additional modules make the product more attractive to existing clients creating additional revenue sources for ABS

ldquoThe BIRT Open Source platform allows for a great deal of flexibility in the development stages Additionally the ease of integration into our OEM package was a great benefit Lastly the Actuate and BIRT offering has proved to be well suited to ABS Nautical Systemsrsquo needs and Actuatersquos roadmap shows what we can do in the futurerdquo states Bhattacharya

Self-serve customization drives flexibility and ease of creating reports BIRT empowers users to produce reports customized to their individual and departmental needs and preferences And as government reporting requirements change they can

Solution OverviewCompany Profile Integrated fleet management software for marine industries

Industry Software

Location Houston with offices worldwide

Challenges

bull Customer need for better more timely reports

bull Enable customers to self-serve for ad hoc needs and regulatory requirements

bull Focus on core software expertise and feature requests

Solution Integrate Actuatersquos Open Source-based BIRT reporting with ABSrsquo NS5 fleet management software

Business Benefits

bull Faster time to market broadened portfolio

bull Ease of integration development flexibility

bull Increased visibility into operations aids customer competitiveness efficiency

bull Users empowered to customize reports

Does your companyrsquos mission and vision statement place the customer at the center of your universe

Does it promise to maximize customer value and deliver the best customer experience possible If it does your mission and vision statement is surprisingly similar to nearly every other organization And much like them chances are your organization is struggling to make this vision a reality to actually reinvent itself as truly customer-centric

ldquoCustomer-centricrdquo has become the new buzz phrase thrown about at most executive planning sessions and has replaced ldquoinnovativerdquo as the new mandatory strategic language The truth is it takes a lot more to become customer-centric than changing the company vision ndash it requires a departure from years of tradition a clear look at who and what your organization is and a deeper understanding of what motivates your customers to buy from you or from your competitor Fortunately the cost to make this change is surprisingly low while the benefits and the returns can be shockingly high

Finding Your Customer

Customer-centric implies that the customer is central to the organization but this is too esoteric to have any real meaning An organization turns materials into a product or service which is then sold Everything the organization does must lead to this

event (with no sale after all therersquos no customer) This logic works for most people and most organizations and it logically follows that the focus should be upon the creation of the best possible product or service because this is what causes a prospect to become an actual customer

This logic fits nicely with traditional thinking It was popularized by Michael Porterrsquos value chain approach in the mid-80s The value chain is a string of critical processes that begins with raw materials or inputs and ends with a product or service delivered to a happy customer Thinking this way makes sense because it is easy to place the customer at the end of the process But this mind-set doesnrsquot just affect how executives structure the organization it weaves its way into every aspect of how the organization manages itself and how managers make decisions

For example the finance department performs the close process each month so that it can deliver financial information to managers with actual bottom-line responsibility These managers from executives to cost center managers are financersquos customers just as shareholders are when they deliver quarterly reports Once these reports are delivered finance goes back to the business of accounting and managing revenue and expense until the next month Engineers work to design new products that will keep them one step ahead of their competition Manufacturing produces goods to meet customer

respond more quickly adapting them by themselves instead of depending on ABS to supply reports

ldquoActuate empowers users to get exactly the reports they need the way they want them Empowerment is key as well as flexibility as each department or company may want to look at data in a different wayrdquo states Bhattacharya

Rich information drives efficiency through increased visibility and better insight into operations improving customer competitiveness With highly accurate real-time information on how well they are performing management can control both overall and specific costs of operating and maintaining their shipping fleets ldquoThey donrsquot have to wait hellip they can see all contributing factors day to day It helps improve efficiency at every level For the first time a shiprsquos captain can have insight into the operational performance of his ship while still at seardquo says Bhattacharya

Creating the Customer-Centric

OrganizationFinding Your Customer-Critical Path

By David F GiannettoCEO

The Telos Group

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33

Vol 6 Issue 2 2009

orders or demand projections The sales department courts potential buyers so that they become actual customers Once they do so sales then returns to identify new targets and tries to transition them Manufacturing works to refill shelves Engineering continues developing products

Employees throughout the organization are focused upon delivering the product or service for which they are responsible The product attributes become the value proposition that will appeal to their customer regardless of whether or not this is an internal or external customer Employees are trained to think in terms of product development delivery and value The organization becomes even if it doesnrsquot know it product centric Believing that a mainstream management theory such as the value chain approach could not be wrong or outdated management is comfortable with this view of their world When they try to become customer-centric they do not know how

Making the Change

Consider for example the electricity powering the light by which you are reading this article It is a fairly simple product that was mainstreamed decades ago and except for new types of power generation it has remained essentially unchanged The traditional value chain for this industry is fairly straightforward Power is generated by a complex and often dangerous power plant and it is delivered to the customer via a complicated and often dangerous network The customer then consumes this power and must pay for it creating the

need for back-office operations such as accounting finance and customer service

Given the complexity of power generation and delivery operations the organization is staffed by a high percentage of engineers many with doctorate degrees and years of specialized training The generation and delivery assets themselves are maintained by highly-trained highly-specialized workers A large percentage of the management team also comes from this background and rose through the ranks of organizations identically structured Combined these employees represent over 75 percent of the organization

Collectively these employees create a culture that is consistent in almost every power utility in the world Their cultures respect academic achievement technical expertise and years of experience in the industry They typically believe in rigid structures inflexible procedures and consistency in design and execution They are truly product focused

Given the potential hazards it is easy to see why they behave the way they do But what happens when this type of organization has to compete in a more open market when transparency is increased or when the customer such as a municipality has a stronger voice or is under the growing influence of being green What happens when the power company must become truly customer-centric

It is nearly impossible for them to succeed Seventy-five percent of the organization has little to do with or has little understanding of the customer

Departing from Tradition

While this product focus is exaggerated within a power utility largely because of their technical nature these factors affect nearly every organization Employees who have great influence within the organization will not yield it to those who have less but who understand the customer better Funding is unlikely to shift from traditionally respected areas to those areas that most affect the customer

For a power utility this means that engineers who have often dedicated their entire lives to the study of their work must be considered equal to project managers and customer service agents most of who do not hold any degrees Money resources and staffing must focus on project management and call center technology not just on million- or billion-dollar assets There must be recognition that these areas equally affect the customer This new perspective must be executed by executives who have spent their entire careers adhering to the traditional values of the product-centric culture But this shift is what customer-centric really means truly understanding and meeting your customersrsquo needs It starts with the customer more specifically it starts with a prospect

Customer-Critical Path

This means that the traditional value chain must be rethought and renamed more appropriately to the customer-critical path A prospect travels this path on their journey to become a customer a customer travels this path toward the goal of becoming a happy customer This is the true value chain of the organization ndash a string of processes that become critical because they directly affect your customer regardless of the product service organizational chart academic degree or bias Find the customer-critical path and you can guide your customers through your organization in the way that is most meaningful to both them and you

But not all customer needs are the same even within an industry that has only one real product like a power utility The customer-critical path may start in several places meeting the needs of

several different types of customers ndash household customers that simply need power turned on or major projects that require significant project management and pre-planning Eventually these starting paths merge It will occur at the point at which all customers are happy From there they may take a different path

again some will terminate service or have new needs There is not one value chain there are many paths a customer might travel through your organization

This new approach offers significant value for organizations that adopt it It allows them to better understand their customers so that they can be more effectively segmented and targeted by products or services This drives the bottom line in several ways A stronger value proposition increases appeal thus driving revenue Better service and customer interaction improve the customer experience and increase customer loyalty driving customer lifetime value

The customer-critical path also becomes a vital decision-making tool for management It provides a clear and unbiased perspective on where resources should and should not be spent It defines the relative worth of projects assets and expenditures painting a clear picture of what the results will be if the customer-critical path is not

properly maintained

And if your mission and vision statement says you are customer-centric it makes your strategic plan more than simple semantics It makes it actionable setting your organization on a path towards true differentiation and market leadership Properly crafted the customer-critical path becomes a pleasant stroll through the park for your customers and it can also become the most profitable path for your organization

David F Giannetto is CEO of The Telos Group co-author of The Performance Power Grid The Proven Method to Create and Sustain Superior

Organizational Performance (J Wiley amp Sons 2006) and a professor in the Executive MBA program of Rutgers University

Mr Giannetto can be reached by email at dgiannettotelosconsultingcom

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35

Vol 6 Issue 2 2009

I Introduction and Background

Who the NMDP is

The National Marrow Donor Programreg (NMDP) and Be The Match FoundationSM are non-profit organizations dedicated to creating an opportunity for all patients to receive the bone marrow or umbilical cord blood transplant they need when they need it Every year thousands of people of

all ages are diagnosed with leukemia and other life-threatening diseases Many of them will die unless they get a bone marrow or cord blood transplant from a matching donor Seventy percent of people do not have a matching donor in their family and depend on the Be The Match RegistrySM to find a match to save their life

The Beginning

When their 10-year-old daughter Laura was diagnosed with leukemia Robert Graves DVM and his wife Sherry were ready to do anything they could to save her They agreed to try a bone marrow transplant from an unrelated donor ndash the first ever for a leukemia patient Laura received her transplant in 1979 at the Fred Hutchinson Cancer Research Center The treatment gave her an extra year and a half of life

The National Bone Marrow

Donor Program

The Balanced ScorecardVision into

Action JourneyBy Howard Rohm

President amp CEO Balanced Scorecard Institute under the guidance of The National Marrow Donation

Programrsquos Michael Boo Chief Strategy Officerand John Rudrud Senior Analyst

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37

Vol 6 Issue 2 2009

The experience inspired Dr Graves to create a national registry of volunteers willing to donate marrow His early efforts brought together other patient families and transplant doctors spurring a federal mandate that led to the creation of the National Marrow Donor Program NMDP began connecting patients with unrelated donors in 1987 with a registry of just 10000 volunteers

What the NMDP Does

The Be The Match Registry has grown to more than seven million donors and over 150000 cord blood units the largest and most racially and ethnically diverse registry of its kind in the world Medical advances are making marrow and umbilical cord blood transplants available to more patients all the time Since 1987 NMDP has arranged for more than 35000 transplants to give patients a second chance at life Today NMDP facilitates more than 4300 transplants a year

Planning for the Future

Many more patients still need help In order to meet the needs of all patients NMDP will need to facilitate 10000 transplants per year by 2015 That is more than double the number of transplants the organization facilitates today NMDP is working to meet this need but canrsquot do it alone Efforts are sustained by

bull A global network of more than 490 leading hospitals blood centers cord blood banks and laboratories

bull Agreements with donor centers cooperative donor registries and cord blood banks worldwide through which the program provides patients access to more than 12 million donors and 300000 cord blood units

bull Continued support from the US government which has entrusted the NMDP to operate the CW Bill Young Cell Transplantation Program the federal program supporting bone marrow and cord blood donation and transplantation

bull Partnerships with corporations service organizations student groups faith-based communities and other organizations

A new and different way of thinking about the NMDPrsquos long-term strategy was required in order to make sure that NMDP would be capable of delivering 10000 transplants per year in 2015 ldquoBusiness as usualrdquo would not get the organization where it needed to be NMDP needed to identify and

aggressively improve in strategic areas critical to the delivery of 10000 transplants

II The Balanced Scorecard Approach

Background

The strategic planning system that had been used at NMDP up to 2007 was a fairly well-developed planning process that tracked initiative performance under seven primary areas of strategic focus While this approach provided a measure of strategic planning for the organization it was too focused on activities and projects rather than on impacts

Early in 2007 NMDP leaders Gordon Bryan Chief Financial Officer and Michael Boo Chief Strategy Officer began developing strategic metrics designed to identify measure and communicate progress in strategic plan objective areas

Selection

As the senior management team evaluated options to integrate broader strategic metrics with the existing strategic business plan the Balanced Scorecard approach emerged as a leading candidate during the initial assessment of planning models because it

bullEncourages development of strategic themes and provides the ability to focus on areas where long-term continuous improvement is needed

bullPermits identification of cause-and-effect relationships between Strategic Objectives within each Theme

bull Facilitates communication of Strategic Objectives that can be portrayed on a strategy map that is easily understood by all employees and stakeholders and shows how the perspectives work together to achieve the mission

bull Assures that the organization focuses on Strategic Objectives and Measures from a CustomerStakeholder perspective and a PeopleKnowledgeTechnology perspective (Historically the organizationrsquos focus was skewed toward the Process and Financial perspectives)

bull Enables leadership to track Strategic Objective performance over the long term rather than tracking the status of supporting projects and initiatives

bull Creates a framework for prioritization of projects initiatives and funding opportunities based on contribution to and support of the Strategic Objectives

bull Allows organizational Strategic Objectives to be cascaded into Department Objectives thereby giving each employee

a more specific understanding of how his or her work impacts and contributes to the Strategic Objectives

bull Drives long-term continuous improvement as Strategic Measures improve over time

bull Facilitates a ldquolearning organizationrdquo where corrective actions are implemented in cases where Strategic or Department Objective Measures are not being met

The NMDP planning team looked at a number of planning models ndash including Balanced Scorecard Six Sigma Lean and TQM ndash and concluded that the Balanced Scorecard approach provided the most versatile and relevant framework for future growth and organizational development

III Scorecard Development ndash NMDP Officer Input

Early to mid 2007 NMDP began the Balanced Scorecard development effort with the help of consultants from the Balanced Scorecard Institute

A comprehensive review of the organizationrsquos strengths weaknesses opportunities and threats organizational pains organization enablers vision and mission was conducted over several days with NMDP officers and senior management These sessions produced a new Mission and Vision Statement and four Strategic Themes (rather than the original seven)

The former mission statement Extend and improve life through innovative cellular transplant therapies was changed to We save lives through cellular transplantation ndash science service and support

ldquoThis new mission statement captures and communicates more directly why we exist and it clearly articulates the three ways that we are able to save livesrdquo explained NMDP CEO Dr Jeffrey Chell

The Overarching Strategic Result in place of a vision statement was developed and shared with employees throughout the organization Meeting the need for 10000 transplants per year by 2015 The senior management team developed a longer more descriptive version of this statement but felt that the shorter version had more impact

ldquoWersquove found that the Overarching Strategic Result has been a great tool to get people thinking about how we will manage

to do more than double our current transplant volumes in a relatively short time ndash just five years from nowrdquo explained initiative sponsor Michael Boo ldquoThis has driven a lot of creative thinking around how to dramatically improve the efficiencies and cost effectiveness of many internal systems and delivery processesrdquo

The four Strategic themes that the NMDP officer group developed and agreed upon are

bull Global Access and Acceptance ndash Getting to Yes Overcome non-cell source barriers to transplant (eg no insurance no transportation no post-transplant support)

bull Deliver Excellent Stakeholder Experience Overcome Cell Source Barriers (making sure a cell source donation is available when itrsquos needed ndash adult or cord)

bull Research Pursue research to improve cell transplantation as a therapy

bull Culture of Excellence Keep up-to-date with talent structure and resources needed to continually improve transplant services

IV Scorecard Development ndash Senior Management

Throughout the spring and summer of 2007 four Theme Teams comprised of senior management met to develop

Theme Team strategy maps that included Theme Objectives by Perspective and proposed Measures for each Theme Objective These served as detailed roadmaps with specific objective areas identified ndash where NMDP needed to focus in order to improve them

The four Theme Team maps were subsequently

combined into an NMDP Strategy Map that included all relevant components from each theme This NMDP Strategy Map is comprised of 13 Strategic Objectives 46 Strategic Measures and seven Strategic Initiatives

Narratives were captured regarding the intent and ultimate end state for each Strategic Objective and detailed descriptions were created for measurement information including rational frequency owner and unit of measure

At this stage in the process the team named the Balanced Scorecard tool ldquoVision into Actionrdquo or ViA ndash NMDPrsquos strategic Performance Management tool On June 1 2007 the ViA Themes and NMDP Strategy Map details were presented to the board of directors by senior management and approved along with a plan to proceed to the next phase of department cascading

A ViA Communications Team was formed to communicate ViA progress to employees on the development of the new Mission Statement Vision Statement and the 13 Strategic Objectives This was done through a combination of pulse checks newsletters

38

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Vol 6 Issue 2 2009

intranet messaging e-mails from the CEO leadership training all-staff meetings and promotional contests This was an extremely integral step in the ViA roll-out that provided transparency and generated excitement around the benefits of ViA

V ViA Department Cascading

All departments at the NMDP were scheduled for sessions to develop their department Objectives Measures and Initiatives These were facilitated by internal subject matter experts and included an initial two-day exercise to help the department identify where and how each department contributed to the NMDP Strategic Objectives Worksheets and other preparation material were provided to each participant and collected prior to the cascade session The pre-work information was used to expedite the affinity exercises at each session

These were followed up with sessions to finalize detailed measures with individual measure owners Department teams were comprised of five to 10 key members of each department

The department cascading efforts provided a number of primary benefits to the organization including

bull The articulation in easy-to-understand terms of how each department contributes to the overall success of the Strategic Objectives and ultimately the NMDP Mission

bull A tool to identify gaps or overlaps between departments that can also be a tool for departments to communicate with each other in terms of supporting initiatives

bull A tool for each department to prioritize initiatives and activities Also it provided a mechanism to support requests for funding new opportunities

bull A clear framework for corrective action where measures are not being successfully met

bull A common format and mechanism for reporting department performance to officers and senior management

bull A common format and mechanism for reporting and reviewing department performance with staff

bull Help with the development of individual job performance appraisal content ndash which should be designed to support Department Objectives

Department Cascading was complete in early 2009 There are over 200 separate department measures that are tracked each quarter

VI NMDP ViA Today

NMDP has established a department Champions Council Members of the Council are becoming experts at using the automated ViA software Today this is being used at department staff meetings to facilitate discussion around corrective action for underperforming or unacceptable Department Measures Departments use the department Strategy Maps to guide staff meeting discussions on performance measures and corrective action plans

ldquoAll business cases or requests for funding must be submitted with clear tangible descriptions of how the effort will impact ViA Strategic Objectivesrdquo explained Boo ldquoOnce all business cases have been submitted to the officer group for final approval they are prioritized in order of their impact on ViA Strategic Objectivesrdquo

All strategic and department measures are required to be reported into the ViA system each quarter Each is color coded based on an officer-approved target matrix Each measure owner is required to provide comments regarding the measure performance for the quarter and discuss how he or she expects the measure to end the fiscal year This information is shared with senior management for review and follow-up with measure owners ifwhen necessary

Senior management uses the color-coded NMDP Strategic Map as a basis for discussing quarterly performance and identifying

Strategic Objective areas that may need attention corrective action andor more resources NMDP tries to focus not only on corrective action items but also highlight success stories where outstanding performance has been reported

All employees will soon have access to the web-based ViA application to provide as much transparency and visibility as possible in order to become a truly strategy-focused organization

ldquoVision into Action has been successful within the organization to a great extent because of the consistent support and guidance provided by NMDP leadership including our CEO Dr Jeffrey Chell my fellow Officers and the Board of Directorsrdquo said Boo

Howard Rohm President and CEO of the Balanced Scorecard Institute is a Performance Management trainer consultant and technologist with over 40 years experience Mr Rohm has helped dozens of organizations worldwide build Balanced Scorecard and other performance planning and management systems

48

Pe

rform

Mag

azine

Info

rmatio

n in

Actio

n

A community for BIRT users and developers sponsored by Actuate

A Report Writing Portal lets your end users browse reports modify them and even develop

new ones You can set one up in three steps when you use AJAX-based BIRT technology

Because the end user tools to modify and create reports are AJAX-based therersquos no desktop

software to install Users get the reports they need quicker while the burden on development

resources to create new reports is reduced

BIRT Exchange is a community site that offers the broadest collection of resources for the Eclipse BIRT (Business Intelligence

and Reporting Tools) project and for integrating spreadsheets with Java The site is sponsored by Actuate a co-leader of the BIRT project

Sponsored by

See a Demo

at Booth

602

For More Information

Contact us by phone at 1-800-884-8665

1-913-851-5300 from outside of the United States

wwwbirt-exchangecom wwwactuatecom

40

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41

Vol 6 Issue 2 2009

JCIrsquos previous approach of one-off negotiating as well as its spirit of continuous improvement and customer focus meant that it had only one-off measures in every location The company for example had 127 variations of the measure lsquomaintenance managementrsquo Many were very similar but since they were not exactly the same they could not be compared effectively Inefficiency at gathering and maintaining data at different locations across the globe made the task difficult as well Data was collected any way possible thrown into a cell or a Power Point slide and handed in at the end of the month It was highly inefficient extremely customized at every location and did not allow any ability to benchmark compare or look at best practices These concerns and requirements drove JCI on its scorecarding journey

The Solution

In initiating its scorecarding solution JCI first had to establish the right measures Business leaders were chosen for all of the scorecard categories and for each of them a business owner was selected for each region these business leaders and owners were responsible for defining the standards and measures Data collection systems in some cases proved difficult there wasnrsquot always centralized information available ndash in some cases data needed to be gathered right down at the account level This meant that the process of data collection and identifying measures was a significant job To get started though JCIrsquos web programmers were able to put up some scorecards quickly to allow the company to start architecting measures this allowed business leaders across the globe to start identifying their measures and to put the processes in place regionally to collect information

Before committing to a technology JCI wanted to know 100 percent of their business requirements and this was the point of their web-based scorecard To assist in this endeavor Actuate ndash prior to selection ndash let the company test drive their product The JCI team went through and looked at every single screen determining where they had to configure the tool and for every single screen they also made what they called a lsquoblueprintrsquo creating an Excel template with fields to correspond with every field on each screen It was incredibly detailed work but they wanted to ensure no mistakes were made and that the business requirements were defined To accomplish this there was an extreme amount of detailed coordination globally with twice-weekly meetings for the worldwide team in charge of the initiative A byproduct of the process was that the team learned to use the Actuate BIRT Performance Scorecard and basically built all of the blueprints for the project design

JCIrsquos audience for the project upon kick off were the 300 external customers that would have access to this information Customers previous to this were getting their information via Excel and PowerPoint In addition to these external customers was the population of approximately 1000 internal users within JCI itself These included account leaders and functional leaders including those from HR Finance Safety etc

Three primary functions of the project were

1 To replace the PowerPoint slides used in global and regional monthly internal operational reviews

2 To very quickly be able to become best in class JCI wanted everyone who had an account to be able to see where they sat compared to their peers This provided individuals ndash when faced with a problem ndash the ability to quickly identify and contact others who had solved the same issue

3 To standardize customer faith in contractually required performance measures This was a key goal of the company which felt that if they were going to benchmark and compare they needed to bring in the best practices learned at one location to their work at other locations

These three primary functions were heavily loaded in JCIrsquos rating system as the company set out to choose the right software for their scorecarding project It was also important that the software be intuitive as there was no time for hundreds of hours of global-wide training The software had to be rapid and easily configurable with limited IT assistance As JCI is a very large organization with a lot of systems in place the team in charge also wanted the software to be easily adjustable to the companyrsquos rapidly changing business they didnrsquot want to have to get into queue for IT every time a change had to be introduced or a new customer added

JCI Chooses ActuateFour vendors were evaluated for JCIrsquos scorecarding project with a global team in place to provide a systematic discussion of the defined business process and requirements The product chosen was the BIRT Performance Scorecard JCI had 30 days of Actuate Professional Services and planned for monthly micro improvements and quarterly macro improvements

Upon purchasing the BIRT Scorecard in January 2007 using the blueprints theyrsquod established already the company wrote their business processes They were able to go live in 90 days helped by the homework they did with the blueprints the web scorecard and the data collection processes It was an incredibly smooth implementation overall

The Results

Whereas JCI originally started out with a model of one-off negotiations with customer measures the scorecarding project has led to approximately 70 percent agreement on JCI standard metrics The company does a customer satisfaction survey both annually and quarterly and aims to demonstrate evidence towards continual improvement

Since implementation of the project the company has also been solving its data integrity issues Previously two regions might have been using the same words but not the same data collection methods ndash this made it impossible to introduce benchmarking and comparison between areas Now those problems are being solved and benchmarking and comparison are possible to the benefit of both JCI as it strives for best-in-class status and its customers

By David F GiannettoCEOThe Telos Group

Johnson Controls Incorporated (JCI) is a $38 billion company with a total of 140000 employees working out of more than 1300 locations in 125 countries worldwide Headquartered in Milwaukee Wisconsin the company provides a range of services including

real-estate portfolio management property management facility management and design and construction services

To initiate its scorecarding project JCI began by creating five categories of measurement Business Performance (this includes all financial measures) Service Delivery Customer Satisfaction Safety and People While the other four categories may be typical to most organizations the Service Delivery category was designed to take JCIrsquos measurements down to the client-site level which includes over 300 locations globally where the company has contracts In some cases there might be one staff member assigned to manage a single building while other times a staff member has a whole portfolio they maintain Measuring performance at all of these locations and levels proved a complex undertaking

Strategic Initiatives

Like all service providers JCI has to demonstrate that they add value Scorecarding allows them to do this both internally

and externally using data-driven results Since JCI has always been very much a data-driven organization anyway with a manufacturing background this was a natural fit for the corporation

JCIrsquos organization-wide motto is to be as good everywhere as they are somewhere Theyrsquove found that in any one account they may excel in several areas but perhaps not in all areas elsewhere though on another account someone else might have the skills needed to fill in those gaps The companyrsquos goal was to share information and communicate it between different locations across the globe allowing the company as a whole to get better faster and to benefit from the skills and strengths of its individual members Scorecarding was introduced as a way to help share this information and to introduce benchmarking within the company

The Requirements

To get started on their scorecarding initiative JCI examined each of their US contracts What they found was that there were no standards between clients and therefore no ability to benchmark Customers though wanted the ability to find out how they stood in relation to other customers This was impossible under the circumstances

Global Operational Excellence and a Performance Scorecard System A Case Study of

Johnson Controls Incorporated

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Vol 6 Issue 2 2009

Out of Touch With Crucial Data

Previously when Helzbergrsquos divisional and regional vice presidents went on the road access to their key performance metrics was restricted Without a laptop and a WiFi or hotel network connection to the internet they were ldquoflying blindrdquo according to Greg Backhus Helzbergrsquos Director of Data Warehouse and Decision Support Systems As a result they did a lot of faxing it was the only way they could get the current data that they needed in order to

About Webalo

Webalo technology transforms enterprise applications and data to make them compatible with mobile

devices This eliminates the need for traditional custom programming reducing the deployment of mobile applications from weeks or months to in most cases less than a day The resulting ldquoanywhere anytime on-demandrdquo availability of enterprise data on handheld devices turns such devices into viable alternatives to desktop laptop and palmtop computer hardware and lets mobile employees work more productively ndash on the spot ndash to solve problems answer questions monitor operations close sales and make informed decisions

The Webalo Mobile Dashboard Service ndash available in both internet-based and enterprise intranet-based implementations ndash lets non-IT business administrators securely specify the content of mobile-accessible information and the companion Webalo Proxy Server configures it in seconds to conform to the native user interface of any BlackBerry Windows Mobile Pocket PC Palm Symbian or Java-enabled smartphone

CLARITY CUT AND CARATSHow Helzberg Diamonds Made Sales Data Clearer Eliminated

Delays and Lightened the Load for its Divisional Executives

A diamond may be forever but a lot has changed in how theyrsquove been marketed and sold during Helzberg Diamondsrsquo nine decades in business A single store has expanded to nearly 300 locations from coast to coast and border to border Sales can also be made online now And information about every sale can be accessed in an instance through the companyrsquos enterprise systems

bull Compare actual sales to their goals and plans

bull Determine transaction counts for total dollar volume and average sales value

bull Break down sales by product category

bull Monitor attachment rates for products and services related to the main product sale

For example onsite at individual stores it was difficult to gauge how an active price-reduction sale was affecting unit and dollar

volumes unless there happened to be a coffee shop next door with a WiFi connection that would let Helzbergrsquos executives access the enterprise system

The Three Cs of Information Access

The three Cs of diamond grading ndash clarity cut and carats (or weight) ndash turned out to be applicable to data access as well But it took a transition to handheld devices and to the Webalo Mobile Dashboard to achieve it

Though laptop computers had gotten lighter and lighter over the years they were still considerably heavier than the Pocket PC-based smartphones that Helzbergrsquos executives used Since they were carrying those handhelds in addition to their laptops the VPs were open to the idea of being able to

bull Access sales metrics on their handhelds

bull Have data available on-demand from any location with a wireless signal

bull Navigate quickly to the figures they needed

bull Get updates to their metrics automatically

bull Review the information offline

It was the only time that carrying less weight ndash or carats ndash added more value Using a simple step-by-step wizard Helzbergrsquos support staff was able to configure their enterprise reports in a matter of hours They then assigned access privileges to each executive to control who could see what information and uploaded the file to the Webalo server That satisfied how data was ldquocutrdquo

For each mobile user regardless of the brand and model of smartphone they used the Webalo Mobile Dashboard conformed the information to the devicesrsquo user interface The application worked and looked exactly like any other application developed specifically for their mobile devices the on-screen text was easy to read and navigation used the same menu structure That meant there was no learning curve to delay user acceptance and productivity Clarity was essential and the Mobile Dashboard delivered it right down to the ability to bookmark commonly-referred-to displays for instant reference enhancing on-the-spot productivity even more

Speed and Simplicity

Productivity was also improved on the IT side Without the need for custom programming to conform the information to each smartphone brand and model deployment was reduced from months to hours

Since adopting the Webalo Mobile Dashboard Backhus says ldquoThe Divisional VPs find it invaluable They get more done because they donrsquot have the delays they used to haverdquo Decisions that used to have to wait for current data are now made right away relying on the right data presented in the right format

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Sustainable practice has graduated from being market hype

to becoming a strategic initiative important for driving a successful enterprise It not only reduces a companyrsquos impact on the environment but can help organizations achieve a competitive advantage to build their brand impact top and bottom line and improve customer acquisition satisfaction and retention

Creating a road map towards sustainable management can require an entire shift in corporate thinking one that involves searching for buy-in at all levels establishing useful metrics and introducing practices that get beyond the green hype The end result though is not just a greener organization but also one with a more prosperous future

Why Sustainability

In August 2008 a survey undertaken by CIO Insight examined green practices in business focusing on the reasons why CIOs introduce sustainability efforts into their organizations The number one reason why organizations went green the study found was that the people within those companies sincerely had a concern for the environment A total of 74 percent of respondents answered that way 32 percent of which listed it as their most influential driver

Other influential drivers named in the survey included

Financial Drivers Companies found sustainability to be a way of cutting costs If they could cut energy costs not only would that help the environment but it would also help create cost savings The second most popular answer in the CIO Insight study financial impacts are key to implementing sustainability in most organizations Examples of financial impacts possible from sustainability were presented at CFO

2 The CFO Green

Conference which took place in May 2008

bull Dupont reduced its CO2 emissions by 70 percent saving the company $3 billion

bull FedEx redesigned its delivery trucks making them more aerodynamic This reduced the amount of particulate pollutants nitrogen and carbon the trucks put into the atmosphere and it also reduced the companyrsquos fuel costs exceptionally

Customer Image In the CIO Insight survey the third motive listed by CIOs for introducing sustainability ndash at 64 percent ndash was company image Consumers are becoming more and more aware of whether companies or organizations are living up to sustainability ideals They will notice if a company image or brand value reflects this concern for the environment Meaningful sustainability efforts can help gain customer approval as in the following case

bull Wal-Mart and Procter amp Gamble together agreed to sell liquid laundry detergent only in concentrated form This saved shelf space for Wal-Mart reduced water use by 400 million gallons for Procter amp Gamble and eliminated 45 million pounds of plastic waste

Regulatory Requirements The surveyrsquos fourth most popular reply ndash at only 25 percent ndash were current or potential regulations including the cap and trade systems being implemented which will require companies to buy carbon and sell carbon credits

Shareholder Pressure Finally at fifth in the CIO Insight survey ndash with 14 percent of responses ndash was shareholder or public pressure pressure building from shareholders to put forth sustainability efforts Pressure at this level is often mixed though as shareholders are also likely to express a desire that they donrsquot want shares to decline in value The general message may be that it is fine to introduce sustainability measures only as long as there is no risk that they will hurt the company

A Road Map Towards Sustainability

Step 1 Identify What Drives Your Organization

The first step in the road map towards sustainability is identifying key drivers Some drivers vary from one organization to another while others seem to drive any organization regardless of the industry Drivers incude

Internal drivers

bull Cost cuttings and savings

bull Employees including both the satisfaction of current employees as well as the recruitment and retention of future employees

bull Investment

External Drivers

bull Stakeholders including both those within the company ndash the employees discussed above ndash as well as stakeholders outside of the company

bull Brand awareness because consumers are becoming increasingly aware of the choices that are available to them and are making choices based on a companyrsquos green initiatives

Future drivers

bull Tax incentives

bull The recruitment and retention of future customers

Step 2 Select Your Metrics

In general terms sustainability metrics will fall into one of four major categories those that affect the climate those that affect the oceans those that affect human health and those that affect common issues like the land the water the wildlife etc

Within those large categories are smaller areas of interest that companies must examine to introduce organization-wide sustainability management carbon monoxide use energy consumption water consumption and fuel consumption are prime examples

Carbon Monoxide Use Many of the questions companies are asking themselves in regards to carbon monoxide use include

A Road Map of Key

Sustainability Metrics

That Impact Bottom

Line

46

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Vol 6 Issue 2 2009

bull How much carbon monoxide do we produce

bull Which processes in our overall manufacturing or delivery use produce the most emissions

bull Can we determine the indirect emissions For example leave a computer plugged in and itrsquos still on the grid creating an indirect carbon dioxide emitter How can we measure that

bull Whatrsquos our cost Do we have metrics that tell us what our CO2 emissions cost us

bull Can we predict into the future If we continue on this path without doing anything where will we be next month Next quarter Next year

Some examples of metrics related to carbon monoxide use include carbon dioxide emissions per employee (similar to revenue per employee) carbon footprint metrics and transportation distances

Energy Consumption Areas of interest related to corporate energy consumption may include the following

bull How much do we consume From what sources

bull Are we on the grid Are we using solar power or wind power or another alternative power

bull How much is used by our data center How do we make the data center greener

bull Where can we reduce consumption

Companies today are reducing energy consumption in a variety of ways by introducing energy audits and looking at energy-saving appliances and also through energy incentive programs for employees within which companies can incentivize and introduce bonus plans

Water Consumption An examination of a companyrsquos water consumption may include some of the following queries

bull How much water do we currently use and where

bull Where in our processes do we use the most water

bull Can we predict how much wersquore going to use in the future

Some of the examples of metrics that companies introduce in terms of water consumption include improved water quality how much impact low-flow or low-volume toilets have on water consumption and how much water is or can be recycled

Fuel Consumption Questions to consider in relation to fuel consumption include

bull How much fuel do we use

bull Where are the inefficiencies

bull Whatrsquos being predicted for fuel usage in the future

bull Can we analyze our logistics so that we can determine how to reduce our fuel consumption For example where are our trucks traveling How are they traveling What kinds of loads are they carrying

Step 3 Recognize Challenges

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly As such easier ways to enhance communication and to increase visibility need to be introduced both inside and outside of an organization

There are also constantly evolving requirements measures and standards of success With everything so new companies are challenged to find ways to compare their sustainability efforts with other organizations The biggest challenge in implementing these processes or attracting metrics may be that they require an entire shift in thinking Additional challenges that exist in the implementation of a sustainability model include

1 Financial concerns Companies must truly see potential for returns on investment or these initiatives can become non-starters or stall

2 Lack of regulatory motivation While not as common as it once was certain organizations arenrsquot motivated to introduce sustainability until government regulations are in place

3 Lack of a formal strategy for sustainability Without a formal strategy it is difficult for companies to determine where they need to go

4 Determining appropriate metrics Companies must choose metrics that are useful demonstrate impact and say something about their own corporate environment

5 Calculating metrics Standard algorithms and calculations exist to calculate metrics but companies must find the appropriate ones and use them

6 Finding quality data to plug into those calculations As in any Business Intelligence project if the quality of the data is questionable then so are the sustainability metrics themselves

7 Determining the scope of the sustainability project The scope is critical Narrow it down to something achievable feasible and useful

Step 4 Learn from Best Practices

What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde

bull Assign an executive champion Without an executive champion to drive the project initiatives are more likely to lack a holistic view and a clear vision for an implementation strategy they may take longer to implement and theyrsquore less likely to yield the required results To provide motivation consider linking the championrsquos salary directly to sustainability savings or to the increased revenues that result from sustainability efforts

bull Implement internal training and education Educate employees on what to expect and what is expected from them

bull Improve communication Communicate both to employees and to stakeholders outside of the organization

bull Start to think about alternative energy management and control strategies

bull Engage the use of technology and services For companies not sure where to begin a sustainability consultant can assist with program selection as can vendors such as Actuate which has a sustainability management solution in place

Step 5 Get Started

Understand that sustainability development is a business opportunity Donrsquot look at it solely as environmental although that is also important Itrsquos an opportunity for companies to introduce more cost-effective processes and procedures and to become more cost effective in their vehicle fleet manufacturing delivery etc

bull Create globally consistent metrics and goals Large agencies have to make sure that the entire group is on board and that they have consistent metrics and consistent goals across the enterprise

bull Find the value and drive the action What is the value of monitoring these sustainability areas and whatrsquos the course of action if you see that theyrsquore going off kilter or are not tracking as expected

bull Start small Initiatives such as these can become incredibly complex very quickly Start small and build in the complexity with each ensuing project

bull Get buy in People need to understand what the metrics are why theyrsquore there and what they mean to each individualrsquos situation (as reflected in individual bonus plans perhaps) Measure using industry-accepted methodologies and industry-accepted protocols continually improve metrics through optimization and forecasting and constantly optimize metrics and forecast into the future

bull As much as possible accurately report to everybody environmental performance Let employees shareholders customers and regulators know If data is questionable fix it get quality processes in place and then run the metrics

bull Determine environmental impact Has waste been reduced Has resource utilization been reduced Has the company improved environmental factors

Also consider using an Open Source vendor The Open Source community is beginning to develop sustainability metrics and Open Source reduces the costs of developing metrics while software costs for the project are reduced as well

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly ldquo

rdquo What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde ldquo

rdquo

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Vol 6 Issue 2 2009

Step 6 Move from Green Hype to Sustainable Action

A successful sustainability initiative involves identifying metrics that will translate into cost savings and benefits while avoiding metrics that are not likely to yield required results To accomplish this start small start with a small department within the organization and then repeat this continuing to repeat it throughout the enterprise

bull Start with basic conservation Change behavior reduce consumption and in the process increase investment

bull Start reusing Improve productivity improve efficiency and create less waste

bull When this translates into cost savings re-invest Grow make larger improvements and increase involvement

Projects that make good starting points

bull Measure carbon dioxide emissions throughout a value chain or product lifespan Look for potential improvements

bull Ensure regulatory compliance By knowing what the regulations are companies can determine what metrics need to be in place

bull Identify ways to promote and profit from more environmentally-respectful goods and services Companies can promote environmentally-respectful goods and services while also using sustainability to help the company

Monitor the effects of each project to determine which strategies have the most impact both physically in terms of

the environment and financially in terms of revenues and cost savings Publicize how metrics are tracking over time

Actuate for Sustainability Management

Actuate for Sustainability Management is a solution by Actuate that integrates highly interactive visually rich dashboards There are pre-built sustainability scorecards strategy maps and over 100 pre-built metrics across the economic social and environmental aspects of sustainability

The Actuate BIRT Performance Scorecard supports the metrics defined including

bull Reducing an organizationrsquos environmental footprint

bull Building green facilities and buildings

bull Compliance and reporting

bull Manufacturing

bull Community and engagement

bull Human development including employee well-being and satisfaction

Actuate for Sustainability Management provides collaboration across regulators consumers and non-governmental organizations Dashboards and scorecards come integrated with reporting so as to improve reporting to stakeholders both outside and inside of an organization All of the products are built on Actuatersquos dependable cost-effective and scaleable platform

Performance Management solutions help organizations understand act on and influence business decisions processes and measures of business success The 2009 Actuate Performance Management Excellence Awards will honor customer success stories in four key areas Over the next several issues Perform Magazine will highlight some of the entries in these categories

Category 1 Go Green

Each year the concept of environmental responsibility has implications for both the private and public sector specifically with regards to how each measures the performance of their operations For organizations using the Actuate BIRT Performance Scorecard to measure the progress of organizational Green initiatives how have they responded to the challenge and how do they use the BIRT Performance Scorecard to ensure they stay on track

Category 2 The Perfect Slice

Successful Performance Management comes in all sizes Some initiatives are enterprise-wide while others are focused around specific business units or functions yet still encompass a holistic approach to Performance Management by looking beyond financial indicators to a more balanced set of indicators This category includes organizations deploying the Actuate BIRT Performance Scorecard with a focus on improving the performance of individual business units or functions and includes the measurement of people and processes

Category 3 Big Bang

Carefully executed Performance Management initiatives begin with a measured approach to the initial implementation and quickly expand to other parts of the organization aligning business units to strategy at each step This category is open to Actuate customers who initially implemented the Actuate BIRT Performance Scorecard to a limited user community and through careful change management and planning expanded the use of the BIRT Performance Scorecard throughout the organization

Category 4 Super Size

Award-winning enterprises achieve breakthrough results in the financial customer operational and people perspectives of their business and leverage internal champions across the organization to ensure ongoing and sustainable success The key to achieving these results lies in total visibility of all business units aligned to strategy This category is open to any Actuate customer with a fully deployed enterprise-wide Actuate BIRT Performance Scorecard implementation

Actuate Performance Management Excellence Awards2009

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HealthNow New York Inc headquartered in Buffalo is one of New York Statersquos leading healthcare companies doing business as BlueCross BlueShield of Western New York BlueShield of Northeastern New York HealthNow in the Central New York region and Brokerage Concepts Inc in Pennsylvania

Improving the health of people and communities are HealthNowrsquos corporate priorities and for more than 70 years the company has been a proactive partner in health working to improve the quality of care and the quality of life for everyone it serves In 2008 HealthNow provided access to care to more than 820000 members and in 2008 company revenues grew to $227 billion

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution and describe what you were trying to achieve as a group function or department

A few years ago HealthNow New York Inc determined that the key to its continued success would be its ability to differentiate itself from other healthcare plans in ways that could not be readily duplicated or copied by their competitors In an increasingly crowded marketplace to get the attention of new customers and retain existing ones HealthNow needed to set itself apart from others

This lasting competitive advantage needed to come from an organizational culture that was dedicated to a relentless focus on meeting customersrsquo needs It needed to be highly responsive supportive flexible and nimble particularly as the healthcare marketplace continues to change with more responsibility placed upon its customers

To that end a new business model was implemented to provide the framework for customer focus Under the new structure the company was divided into four strategic business units (SBUs) each responsible for financial contribution customer satisfaction medical utilization and market share of a specific book of business

Each SBU includes its own set of functions including sales account and broker management product configuration customer intelligence pricing enrollment and billing customer service medical management and HR support Each business unit is led by an executive who is fully accountable for the unit operations and for bottom-line performance of the entire business unit Each SBU is supported by various corporate support functions (Actuarial IT Legal etc)

Implementation of the new business model began with a reorganization of the senior management structure The senior management of each SBU has specific incentive goals as well as strategic goals aligned with the corporate incentive Those strategic goals then drill down to ldquoteamrdquo incentives and to a blend of strategic and operational goals

This was a completely new way of looking at our business It was a blank slate requiring new processes and new methodology as well as an examination of existing metrics and processes to determine what added value and where the strengths weaknesses opportunities and gaps were

Under this new structure the Government Programs State and Federal products SBU ndash which historically had some inefficient end-to-end processes lacked internal controls and had minimal oversight of financial performance ndash was able to set a foundation and develop a growth strategy In order to achieve this mission and to align track monitor improve and communicate performance the Senior Vice President of the Government Programs SBU elected to utilize a Performance Management framework via the Actuate BIRT Performance Scorecard

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

As a point of reference the Government Programs SBU is comprised of a State Government Programs team a Federal Government Programs team an Operations team and a Sales team The Performance Management design team was comprised of the Actuate system administratorfacilitator the Government Program financial reporting manager and two SBU data analysts Input from the various teamsrsquo management staff was gathered as the design got more granular

Discussions around the design of the Government Programs scorecard began with two basic questions

1 What are the handful (ideally six to eight) of key performance indicators that are necessary to run and manage your business and to indicate that yoursquore on the right path to achieving your goals

Defining the key performance indicators was a challenge that required the Actuate system administrator in a facilitative role to get intimately involved in order to keep the discussions focused and high level and to limit scope creep The incentive goals were clearly defined at the corporate and SBU level however the tough question was how should they drill down in the BIRT Performance Scorecard The facilitator posed the following questions to the other members of the design team

bull How do you usually look at your business

bull How are the primary source documents that capture this information structured

bull What other ways do you look at your business

Taking the answers to these questions a step further the facilitator asked the next question Is the drill-down structure the same for the core strategic or team metrics The answer was yes By taking this approach we were provided with consistency in how the teams look at their business and the performance of their core indicators

Once the incentive and strategic goals were identified more leading and lagging operational measures were defined such as

bull Call centers

bull Accuracy

bull Quality

bull Sales Performance

2 Who is your audience

Through the entire measure selection and definition process the design team was constantly reminded to keep a second question ndash who is your audience ndash in mind This helped keep the focus on the critical few and keep the number of metrics down to a manageable amount Links to supporting documentation were created to provide easy access to the granular data without burdening the scorecardrsquos objective

The audience in this case was the SBUrsquos Senior Vice President followed by the State Director Federal Director Operations Director and Sales General Manager It then cascades down to each directorrsquos management team and the data providers

In order to provide a complete and consistent picture of State and Federal performance for senior management where

gt Performance Management Excellence Awards

HealthNow New YorkCategory 2 Entry The Perfect Slice

gt Performance Management Excellence Awards

[ Figure 131 Homepage Map ]

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Vol 6 Issue 2 2009

possible the same or comparable measures were created for each team For example when looking at the various call center metrics ndash even if the definitions and targets slightly differed ndash if one team was consistently exceeding or meeting their target it sparked group discussion around best practices processes staffing and target definition

Utilization of Maps continues to play a major role in communicating performance Again focusing on our audience there is a Map at the Senior VP level which then links to a high-level Map for the State director and staff and for the Federal director and staff The one-page snapshot allows management to easily view performance then to drill down to specifics via additional detailed Maps or Books Because the audience embraces the Maps concept a ldquoWhere is itrdquo Map containing all Maps and Books by SBU was created Itrsquos a quick and easy reference tool

3 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

Quantitative results are achieved through the promotion of visibility and awareness The Return on Investment may not fit a conventional definition but can be measurable and accomplished by challenging the data targets and accompanying commentaryaction plan narrative to drive performance improvement Are the targets realistic yet aggressive Are action plans being documented and carried out Are the actions discussions and decisions leading to improved performance and processes

Government Programsrsquo membership is measured and monitored in various ways via the BIRT Scorecard and other sources For example Federal membership is measured by product then by plan It is also measured by market then by product then by plan By creatively visualizing performance in multiple ways via a Map those same data results can sometimes become very obvious telling a different story that may not be obvious via standard reporting methods It may clearly illustrate that a specific product in a specific market is continuously under-performing for example Fact-based decisions can then be made as to whether or not to continue with this product in this market or it may initiate discussions as to how to grow and retain profitable membership for this product in this market

Another more recent example is an initiative to track claims-review savings By reviewing claims via various processes what savings can be recouped or realized What specific areas are State and Federal teams focusing on that can contribute to overall savings for the SBU Again where applicable there should be consistency in the metrics across

teams Placeholders are included to promote visibility to keep them in the forefront even though the data or processes may not be in place yet But by capturing results on one page via a Map it bridges potential gaps between the teams promoting awareness and synergy across the SBU

4 Qualitative results What ldquosoftrdquo or intangible benefits has the group department or organization received as a result of this solution

A major benefit of the scorecard framework for the Government Programs SBU has been the identification and alignment of roles responsibilities and accountability

The SBUrsquos Senior VP monthly leadership meeting focuses on four areas

bull Performance Performance is covered via the existing incentive strategic and operational metrics

bull Action plans Documenting action plans in the Performance Management Software Suite versus verbalizing action plans establishes ownership and accountability At subsequent meetings management follows up on key action items or plans to determine whether or not the corrective action did take place and if yes did it have the desired results

bull Strategic direction The strategic direction of the various teams is captured as a springboard to strategic thinking discussions and planning So as not to lose sight of short- and long-term strategic planning this aspect of the business now is housed in the BIRT Scorecard completing the strategic planning of the ldquoHow are we going to get thererdquo and ldquoAre we there yetrdquo cycle This holistic approach helps minimize the chances of our scorecard becoming too focused on operational performance and keeps strategic planning dynamic and visible

The value of these metrics is not in the data but in the commentary The individual teamsrsquo strategic direction ldquometricsrdquo are subjective red = 1 yellow = 2 green = 3 The target = 3 Each metric includes a description of the specific strategic path we need to research or move forward on as well as what goal achievement it supports The ldquodatardquo ndash or color ndash is based on basic questions like What did you hope to achieve this month vs What did you actually achieve this month Were there any successes barriers obstacles In addition to accountability the entire SBU benefits from the sharing of information having meaningful discussion taking appropriate action and collaboration

bull Key initiatives The last critical component is the identification and alignment of key initiatives that

are necessary to support achievement of the various incentives strategic goals and direction and operational goals As with the strategic direction metrics the value is in the narrative with the color reflecting what was accomplished for the specific reporting period

5 Innovation Why should this solution be considered an Innovative Solution What makes it unique groundbreaking and superior What unintended results did you realize

Over time the Government Programs Performance Management framework evolved into an innovative solution The process drives performance and isnrsquot necessarily focused on ldquocolorrdquo Rather itrsquos about having the right people in the same room on a regular basis to drive meaningful discussion and to take appropriate action to improve performance

Outside of the standard processes it was the monthly review process that drove effectiveness revisions enhancements and restructuring of the meeting schedule agenda and format The Government Program financial reporting manager would meet with each director and general manager to review their scorecard for completeness as well as for performance from an operational perspective The State and Federal team directors would then meet with their respective management teams to review and discuss performance results in preparation for the joint Government Programs Leadership Meetings The audience included the Senior VP down to team managers key data analysts (data providers) and support function representatives Through trial and error management learned to maximize their time and effectiveness by concentrating on key metrics and topics rather than trying to review all metrics identify leading indicators versus only outcome results and include strategic thinking and initiatives Today the monthly leadership

meetings are much more productive and look at strategic and operational performance

As involvement and participation increased in the team meetings as well as in the leadership meetings it removed silos opened communications enabled the sharing of information and best practices and promoted teamwork across the SBU But most importantly it brought about an awareness and a sense of unity and commitment within the SBU to achieve their goals something that was lacking before

While it was not part of the initial scope management realized shortly after implementation that efficiencies could be gained by replacing an in-depth hard copy monthly report with BIRT-generated results Since the BIRT Scorecard contained the same data with supporting narrative ndash plus additional metrics with narrative ndash monthly performance was captured via a monthly report Book various Maps and BIRT-generated reports Elimination of the hard-copy report was an unintended way of encouraging a more active use of the Performance Management software by management to monitor performance thereby increasing user familiarity with the contents features functionality and navigation

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

Sustainability is achieved through a continuous process of revisiting the scorecard when there are organizational changes looking at the business direction shifts goal changes process changes etc To ensure that metrics are still relevant a filtering process is held with each director and general manager every six to eight months or as necessary During this exercise questions such as the following are asked

gt Performance Management Excellence Awards gt Performance Management Excellence Awards

[ Figure 132 CEOrsquos Book ]

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Vol 6 Issue 2 2009

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

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3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

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  1. Button 3
Page 12: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

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Implementing Actuatersquos BIRT Open Source Technology

BIRT Actuatersquos Open Source technology was developed with the Eclipse Foundation and does an exceptional job in meeting web-reporting requirements while utilizing the Open Source model Itrsquos a Java tool with a web-centric development and design paradigm BIRT reports are built with the intent of publishing to the web exclusively or more exclusively than is the case with other alternatives that are typically intended originally for paper BIRT is also very modular and very component based allowing users to do as much or as little as they want to deploy as much or as little as they need when theyrsquore creating their reports or embedding this technology within their environment

One of the goals of BIRT is to cater to the power that is needed for many of todayrsquos reporting projects but also to offer the simplicity that means an individual report creator can be very effective at doing their job simply by using the BIRT design tool itself That goal has proven successful so far with 65 million downloads of BIRT since the projectrsquos inception 45 million of them in 2008 alone BIRT is in fact one of the fastest growing Open Source projects on the internet right now

BIRT does a great job of supporting a wide variety of report types it supports BRD Pro BRD BRS and IV and as users

build components throughout the project they can reuse those elements in subsequent future reports It also supports standards such as HTML cascading style sheets JavaScript Java and XML adding the underpinning technologies for either customization or enhancement and allowing developers to leverage BIRT while using the skills that theyrsquove already developed As an integrated report development environment BIRT also provides graphical and robust tools for the most common reporting tasks including query building ndash such as graphical object layout ndash and representing such as charting As well BIRT includes both online help and documentation

Itrsquos an incredibly robust tool and is capable of being embedded of being delivered to small groups or across the enterprise leveraging Actuatersquos commercial platform New capabilities include the ability to add interactive Flash objects into the environment to build personalized dashboards to create ad hoc reports and to create interactive viewing Actuate also recently introduced the JavaScript API which allows users to embed approximately a dozen lines of JavaScript into any webpage and from that access any content within the Actuate environment including any BIRT report that is hosted in that environment which in turn can be delivered to any type of JavaScript-enabled browser

BIRT is built in the Eclipse Project Actuate sponsors and chairs the project management committee for the BIRT project It is Actuatersquos third reporting technology built from scratch which means there is a high degree of long-term experience integrated into the BIRT environment

How the End User Benefits From BIRT

BIRT comes complete with 65 million sets of eyes worldwide looking at it and suggesting changes That has driven its enhancement in the marketplace The overall number of committers on BIRT historically is high and the current level of committers on the project remains high itrsquos nearly the same as Apache committers in the market today

Actuate ndash in its sponsorship of BIRT ndash has added and created a community called BIRT Exchange which is a resource for the BIRT development user to continue to enhance their BIRT expertise and to continue to gain help if needed from the BIRT community No question goes unanswered on BIRT Exchange which is at odds with what people often find in other Open Source forums where a huge number of questions remain unanswered from the audience Within the BIRT Exchange environment there are three different forum administrators who make sure every single question is answered BIRT Exchange also hosts the documentation for the entire BIRT product line as well as videos and webinars designed to further the training and adoption of BIRT itself

Actuate employs more than 50 developers on the Eclipse project itself with documentation and publications available in support of the project available at amazoncom

Actuatersquos Value Add

BIRT is modern and flexible and open Since itrsquos built within the Eclipse Project anyone who knows Eclipse knows how to use it Actuate adds interactivity which take the form of Flash widgets embedded into the BIRT development environment ndash allowing users to build their own types of dashboards ndash or through interactive viewing to transform a report from being static to something an end user can manipulate and evolve over time This is important because reports typically become obsolete quickly the requirements that they originally meet changes as users use the reports to become smarter and then the questions they want answered change Which means that providing this kind of interactive content is key to the success of a Business Intelligence project

Extending BIRT Capabilities

BIRT development tools and the BIRT engine are available as Open Source and are widely distributed Typical capabilities such as JavaScript and SQL skills are required to become familiar with the BIRT product

The second level of capability is the ability to embed BIRT within applications and to begin to add degrees of interactivity to the environment such as Flash widgets or the interactive viewer This allows a user to create robust rich embedded applications

The third level is for workgroup or departmental-style applications or small organization-type applications To adopt this type of Open Source technology individuals would introduce BIRT plus the single server iServer Express a hybrid of Open Source and commercial technology

Finally there are organizations that seek enterprise-caliber or enterprise-level deployments that want to publish BIRT applications outside the firewall to secure these applications for millions of users and to support very high degrees of performance and reliability This type of scalability requires both good design and trial and error as operating systems platforms and other elements continue to evolve Maintaining best performance for very large-scale environments means making sure that each one of these items is optimized

Open Source Vs Commercial Technology

The overall platform that BIRT delivers is a complete set of both development and deployment options for creating any type of environment Users can be characterized across a number of different lines from incredibly skilled Java developers to everyday report developers from people familiar with Actuate to those who are not from power users to business users etc

There are two fundamental questions that these users need to answer

1 Is BIRT the right technology for the application theyrsquore creating

2 Whatrsquos the best way to deploy it through Open Source or through commercial deployment means

The answer to the second question is reliant on a number of variables In the following situations for example Open Source would be the ideal alternative

bull Those users who want to use BIRT for individual use

bull Those who want to embed it into their own project

bull An ISV who has the technology in their own application to support printing and baked-in reporting needs

Converting to or supporting a commercial model meanwhile occurs most frequently at the enterprise-server level for organizations deploying the environment to hundreds or thousands of users It supports a wide variety of types of users

But both the Open Source and commercial models employ a common report design format Itrsquos a progressive development experience or a collaborative report design and collaborative process allowing each user to participate in the definition and the evolution of their reporting environment while at the same time using tools that are appropriate for their skills a novice user isnrsquot being overwhelmed by too many features while the power user or the highly skilled users receive exactly the right kind of technology and level of development capabilities theyrsquore accustomed to

Yet some of the decision-making criteria lean more effectively towards a do-it-yourself situation using the Open Source type

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of model and some lean more appropriately to a commercial investment and a commercial tool A growing level of complexity often drives commercial interest but certain complex functionalities ndash including supporting web services or web services SQL or other examples of integration techniques ndash the Open Source model is more than capable of supporting on its own

The applications Actuate deploys are information applications When choosing the paths of how to proceed ndash with regards to choosing either the Open Source or commercial interest ndash there are typically four premises to consider in an information application

1 Is the report or the application able to consume and collect data from one or many sources whether itrsquos a single report or a complex application Typically when the data sources are simple and the data connections well understood either Open Source or commercial interests are appropriate With meta-data layers and extraction layers the commercial model tends to be more effective But if itrsquos an embedded project using POJOs or other Open Source or specialty connectors ndash unique connectors ndash that often keeps a project more suited for an Open Source deployment

2 How is it able to aggregate and transform that data into meaningful information Looking at aggregation the same premise holds true if therersquos simple aggregate functions or automatic cross tabs or even custom or reuseable business functions both the Open Source and commercial models are appropriate In terms of embedded Java functions those aggregations are appropriate in either case Itrsquos when entering into areas of security ndash of parameter-driven values dynamic-parameter collection cascading menus etc ndash that a commercial purchase tends to excel over the Open Source version

3 What are the presentation options or formats available to present that data When the presentationrsquos fairly simple both Open Source and commercial apply When

charting cross tabs and embedded graphics are the norm then the two are served both in Open Source or commercial interests When JavaScript is starting to be used as a customization or a dynamic-properties delivery vehicle both the Open Source and commercial models are effective although keeping this content embedded within an environment is probably more appropriate using Open Source Itrsquos only when introducing elements such as interactive viewing capability or the ability to manage an environment through a management console capability that the commercial option begins to edge out

4 Are we able to achieve the levels of scale that we need to get that information out to every user whorsquos interested in it When individual use is appropriate Open Source is a better fit When transient content is what a company is delivering thatrsquos usually a better fit with Open Source as well as is embedding To support a collaborative reporting effect or to support a variety of developers and users ndash especially users with different skills ndash the shift begins to move towards a commercial style of delivery When therersquos custom delivery required such as JavaScript API the commercial environment is also more appropriate

These are the capabilities of different deployment options for both the Open Source platform as well as the Actuate commercial platform geared towards allowing organizations to get the value that they most see fit within their environment or their application Typically for environments that have a heavy requirement for infrastructure thatrsquos what drives the commercial purchase whereas customization or individual interests typically drive Open Source

The key thing for any organization is to first decide what kind of reporting technology they need ndash whether it be Open Source or commercial ndash and then to look at their own needs And finally consider the BIRT environment as a vehicle that meets web reporting needs

For more information on BIRT visit actuatecom

A growing level of complexity often drives commercial interest but certain complex functionalities ndash including supporting web service or web service SQL or other examples of integration techniques ndash the Open Source model is more than capable of supporting on its own

ldquordquo

One of the benefits of Actuatersquos Business Intelligence Reporting Tools (BIRT) is that very capability for flexible functionality thatrsquos adjustable to usersrsquo needs Every component of the BIRT technology ndash whether in the Open Source or commercial versions ndash builds upon the components before it creating a robust and flexible system designed to meet each organizationrsquos unique Business Intelligence needs

Choose the Right Graphical ToolThe first step towards evolving organizational Business Intelligence is choosing the right graphical tool The Eclipse BIRT technology for one is a visual designer thatrsquos geared at report developers as well as JavaScript and Java developers and can create a wide range of reporting technologies and web reports BIRT builds content that is specifically intended for the web and uses techniques that are expected when building web pages and web content It doesnrsquot use a banded report writer design or development metaphor typical of many older report-authoring products including Crystal Reports or Jasper

BIRT is the third from-scratch product that Actuate has sponsored and developed and as such it takes into account more modern capabilities and techniques for developing web content In building BIRT Actuate has drawn from its extensive market knowledge borrowing best concepts from other products as well as from its own Reusability and the ability to include programmability within the environment have been traditional Actuate capabilities that have been included in BIRT but BIRT technology also uses de-facto standard programming capabilities such as embedding JavaScript and Java into the application rather than using a proprietary language

Open Source is the core reporting capability and value-added commercial products can be added to it More than 50 developers are employed by Actuate on the BIRT Open Source project similar to the number of developers Apache has applied to the Apache project Alongside these Open Source developers are Actuate developers working on the commercial product of BIRT

Open Source BI

Cost-Effectively Deploying

When deploying Open Source Business Intelligence technologies multi-layered functionality that can be added as needed serves to create a cost-effective way to build a solution specific to an organizationrsquos needs Each function acts as a building block as a company creates exactly the capabilities necessary for the job on hand without wasting money and resources on items that arenrsquot needed

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Another benefit of BIRT is the BIRT Exchange community Actuatersquos user forum which is far more robust and extensive with documentation and help information than has been found traditionally Nearly every forum post has an answer to it in some form which is not likely to be experienced with any other Open Source project or forum-based community Meanwhile the community itself is vast and growing rapidly Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate ndash where a developer may have downloaded 20 copies over its history ndash adds up to 350000 different users of BIRT technology That number is growing at roughly double the rate of the other two most popular Open Source projects

Add Value Through Features

Actuate BIRT technology has a range of features that will add value to a companyrsquos BI project

1 In addition to being a graphical report design tool BIRT takes into account the long-standing tradition of Actuate to support reuse libraries and reusability across the entire environment It is able to not only reuse BIRT objects and BIRT components ndash such as charts and tables ndash but also to incorporate and use JavaScript objects and Java libraries in the reports themselves This creates a rich experience for driving and building web-oriented reports

2 BIRT offers navigability While a user is in a graphical design tool they should be able to take advantage of some of the core capabilities that the technology offers such as a visual hyperlink builder that keeps information in context as well as the ability to create cross tabs dashboards and charting mechanisms that are active and navigable Inserting type of content ndash so that it is both consumable and scoped in context for the user ndash is important to the success of deployment Hyperlinking in context is one of the key elements to supporting Open Source deployments

3 The Eclipse BIRT environment supports a variety of graphical types or charting types including not only grids and tables but both static and dynamic images as well that can be linked back to databases or can support conditional formatting and a variety of conditions baked into the report BIRT is able to handle a large variety of chart types and styles allowing organizations to convey exactly what theyrsquore trying to deliver to their users Supporting rich charting is one of BIRTrsquos key core capabilities

4 The Open Source Eclipse engine can be embedded into or deployed from an application quickly within a JVM Users can add content generation or report generation functionality easily and quickly to their application by inserting it into their run time The BIRT engine itself is a key component in the Eclipse BIRT project It has a variety of extension points built into it which means itrsquos able to not only generate supported output types ndash such as HTML or Adobe PDF ndash but can also create custom emissions from a BIRT report such as an emitter for mobile content or an emitter for a particular report format of the userrsquos own perhaps to feed another application With a robust API structure within the Eclipse BIRT engine these are all possible

Build On Interactivity for a Richer Experience

Building onto that BIRT experience organizations can add more interactive and visual elements to create more appeal within their BI projects

Animated Flash Visuals Animated Flash visuals built into BIRT reports lend to a richer more enjoyable experience for end users They can take advantage of the navigation enhanced with the visual and animated appeal that Adobe Flash offers

The Actuate BIRT development tools include 266 Flash widgets This is one feature that differentiates BIRT Open Source with the BIRT commercial product Those who purchase the development tools from Actuate will immediately receive these Flash objects that can be deployed not only within Actuate BIRT reports but within Eclipse BIRT reports as well they are portable across both environments

Interactive Viewing Often users have a difficult time articulating their requirements to report authors That problem is alleviated when authors can deliver them an interactive viewing experience allowing the report to become changeable and adjustable by the user The user can select a particular column and can apply a filter to that column they can toggle back and forth between viewing perspectives rotate charts change the grouping of a report or add more visualization to it with something such as conditional formatting They could even navigate within the report using a joystick or deploy that report or portlet content anywhere they want And ultimately they could drag and drop and change ndash or add columns to the report directly ndash by manipulating the report as needed

This interactivity gives the end user the ability to enjoy more freedom with regards to how they use the report It also

addresses one of the biggest conundrums with regards to report delivery giving users a report provides them with content that makes them smarter and as they get smarter they take that information and they work it into their knowledge which in turn changes the questions that they ask of the report This means that what they need from a report changes over time Allowing users to modify reports themselves is a key goal in supporting BI processes because as users become smarter about what theyrsquore doing with their content they can help assist in defining what the next iterations of their web content might be

Choose the RIght Server to Store and Schedule Content

Actuate has spent the last 15 years developing the Actuate iServer It comes in two styles ndash iServer Enterprise and iServer Express ndash and offers a robust environment for creating managing and delivering BIRT report content to users on schedule on demand or on an ad-hoc basis directly

The iServer Express is a single-server deployment that is appropriate in scenarios where there is less active usage it supports a sequential batch generation capability and roughly 10 user connections per second as the users connect to the server It offers that scheduling and deployment capability at a very cost-effective price point while allowing organizations to secure their report content using the iServer repository to take advantage of some of the presentation layer capabilities that Actuate offers through its information console to present and manage that content on behalf of the users and ultimately to create a full reporting experience for users directly

Alternatively for those deploying a very large system ndash perhaps one that operates outside of the firewall in a traditional web information application ndash there is the iServer Enterprise The iServer Enterprise is massively scaleable but also very predictably scaleable as companies double the resources that they can apply to their environment they double the throughput and user numbers that theyrsquore able to support with the iServer It is also highly configurable in regards to how content is deployed and supports multi-tenet environments or multiple application environments In addition it can be componentized so that a presentation layer can be separated from a content creation layer or a business logic layer from a data management layer ndash including the meta-data layer itself ndash to help abstract and manage the queries driven

Determine Where Content Can Be Distributed

Actuate JavaScript API is a mechanism that allows the user to take a JavaScript library embed it into any HTML page and then from that JavaScript library securely access Actuate content from the iServer This particular capability allows the user to put either a report part ndash a reportlet ndash or an entire report directly into new locations This could be used as a user attraction vehicle it could be used as a dashboarding vehicle or it could be an integration point for systems that are written in NET rather than in the j2e environments that BIRT typically supports

Deliver Mash-Up Applications

Delivering mash-up applications using all of the functionalities listed above is simple in the BIRT technology and lets users themselves participate in the definition saving creation and management of their own dashboard displays and it allows them to watch exactly the KPIs that they care about

This is done through Actuatersquos Mashboard Customization to the Information Console which allows users to take any BIRT report content and to deploy it directly into a mash-up style environment where they can define exactly what pieces of content go into their application and what doesnrsquot These dashboards can also be roll-based so that particular pieces of content can be deployed to particular types of users directly then if they want to continue to customize that capability theyrsquore able to do so

Conclusion

Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques such as Flash and Ajax in a web-based design metaphor It is designed to evolve effectively over time and is meant to give organizations a choice for every type of user The first decision point of any organization is to recognize whether or not BIRT is the right reporting technology for the information application in question Once thatrsquos decided companies must choose the technologies they want to offer each type of user and then consider how they want to deploy those technologies directly

A wide variety of capabilities can be build into the BIRT environment ranging from Open Source to commercial Actuate products It is a flexible environment and is robust for delivering to users any type of information-driven web content

Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate adds up to 350000 different users of BIRT technology ldquo

rdquo Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques ldquo

rdquo

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The Challenge

Guiding a ship requires visibility into navigation operational performance and up-to-date information to make decisions This type of customer challenge drove ABS Nautical Systems

to incorporate Actuatersquos BIRT technology into its NS5 fleet management software

A leading software provider to the maritime industry ABS and its NS5 modular ERP system help customers manage principal operating expenses associated with vessels and offshore rigs ABS provided basic scheduled reporting and offered ad hoc reports in response to specific customer requests but customers demanded better functionality including the ability to easily extract and create both standard and custom reports

Producing reports to customersrsquo satisfaction took time as reporting was not central to ABS Nautical Systemsrsquo expertise Further it took valuable programmer time away from developing new features and functions for its core product This created the need for ABS to leverage a tool to provide highly-developed rich information application functionality increasing the power of its fleet management software while enabling its customers to access more flexible reporting tools

The Solution

With its own expertise in Java development and their existing reporting ABS searched for an Open Source reporting platformtool that they could leverage and seamlessly embed in their software ndash one that would deliver for ABS and their customers both immediately and for future expansion After considering Jaspersoft Actuate and Pentaho ABS selected Actuate and BIRT for their on-demand reporting solution

ldquoActuate has a clear roadmap and direction scalable platform financial stability and Open Source development platform The Actuate offering was an excellent fit because the technology

ABS Nautical Systems (NS) is one of the leading providers of fleet management software packages available to the

marine and offshore industries It offers a fully integrated modular approach to managing the principal operational expenses associated with a vessel or offshore rig ranging from maintenance and repair to regulatory requirements purchasing and inventory and crew management and payroll

SAFE AT SEAABS Nautical Systems A Case Study

ldquoBoth the technology roadmap and scaling are key It was an excellent fit for us actually ndash you had the right technology yoursquore Open Source based BIRT technology was key and you were the most helpful in helping us do the prototyperdquo

- Sandipan Bhattacharya ABS Nautical Systems

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used Open Source BIRT allowing us great flexibility in developing NS5 Actuate was most supportive in helping ABS NS do the prototype ndash both their Professional Services as well as the account teamrdquo states Sandipan Bhattacharya CTO for ABS NS

The new BIRT-based on-demand reporting tool within ABS NS5 is a web-based application that enables clients to quickly and easily generate custom reports from any NS5 module It handles reporting for the central elements of operational management ndash from regulatory requirements to payroll to planned maintenance programs But it takes NS5 beyond operational duties to consolidate data from across software modules to better monitor key performance indicators (KPIs) such as time to repair spare parts turnover and purchasing cycle times

The interactive information views that BIRT provides help fleet managers to achieve maximum efficiency empowering NS5 software users to get what they want in terms of the reports they need in the way they want them as each department or company may want to look at data in a different way Lastly that same data is more accurate because it comes as near real-time information at the time they need and can be benchmarked against how well they are performing to provide trends for evaluation

BenefitsResults

bull Speed time to market with new features by focusing on core competence in its software platform This allows ABS to focus development on its core product and improve customer satisfaction by rolling out and providing complete reporting modules This also helps decrease development expenses and support costs

bull Expand available market with completely new product lines enabling ABS to increase its client base to companies that didnrsquot know about them or had previously disregarded their offering The additional modules make the product more attractive to existing clients creating additional revenue sources for ABS

ldquoThe BIRT Open Source platform allows for a great deal of flexibility in the development stages Additionally the ease of integration into our OEM package was a great benefit Lastly the Actuate and BIRT offering has proved to be well suited to ABS Nautical Systemsrsquo needs and Actuatersquos roadmap shows what we can do in the futurerdquo states Bhattacharya

Self-serve customization drives flexibility and ease of creating reports BIRT empowers users to produce reports customized to their individual and departmental needs and preferences And as government reporting requirements change they can

Solution OverviewCompany Profile Integrated fleet management software for marine industries

Industry Software

Location Houston with offices worldwide

Challenges

bull Customer need for better more timely reports

bull Enable customers to self-serve for ad hoc needs and regulatory requirements

bull Focus on core software expertise and feature requests

Solution Integrate Actuatersquos Open Source-based BIRT reporting with ABSrsquo NS5 fleet management software

Business Benefits

bull Faster time to market broadened portfolio

bull Ease of integration development flexibility

bull Increased visibility into operations aids customer competitiveness efficiency

bull Users empowered to customize reports

Does your companyrsquos mission and vision statement place the customer at the center of your universe

Does it promise to maximize customer value and deliver the best customer experience possible If it does your mission and vision statement is surprisingly similar to nearly every other organization And much like them chances are your organization is struggling to make this vision a reality to actually reinvent itself as truly customer-centric

ldquoCustomer-centricrdquo has become the new buzz phrase thrown about at most executive planning sessions and has replaced ldquoinnovativerdquo as the new mandatory strategic language The truth is it takes a lot more to become customer-centric than changing the company vision ndash it requires a departure from years of tradition a clear look at who and what your organization is and a deeper understanding of what motivates your customers to buy from you or from your competitor Fortunately the cost to make this change is surprisingly low while the benefits and the returns can be shockingly high

Finding Your Customer

Customer-centric implies that the customer is central to the organization but this is too esoteric to have any real meaning An organization turns materials into a product or service which is then sold Everything the organization does must lead to this

event (with no sale after all therersquos no customer) This logic works for most people and most organizations and it logically follows that the focus should be upon the creation of the best possible product or service because this is what causes a prospect to become an actual customer

This logic fits nicely with traditional thinking It was popularized by Michael Porterrsquos value chain approach in the mid-80s The value chain is a string of critical processes that begins with raw materials or inputs and ends with a product or service delivered to a happy customer Thinking this way makes sense because it is easy to place the customer at the end of the process But this mind-set doesnrsquot just affect how executives structure the organization it weaves its way into every aspect of how the organization manages itself and how managers make decisions

For example the finance department performs the close process each month so that it can deliver financial information to managers with actual bottom-line responsibility These managers from executives to cost center managers are financersquos customers just as shareholders are when they deliver quarterly reports Once these reports are delivered finance goes back to the business of accounting and managing revenue and expense until the next month Engineers work to design new products that will keep them one step ahead of their competition Manufacturing produces goods to meet customer

respond more quickly adapting them by themselves instead of depending on ABS to supply reports

ldquoActuate empowers users to get exactly the reports they need the way they want them Empowerment is key as well as flexibility as each department or company may want to look at data in a different wayrdquo states Bhattacharya

Rich information drives efficiency through increased visibility and better insight into operations improving customer competitiveness With highly accurate real-time information on how well they are performing management can control both overall and specific costs of operating and maintaining their shipping fleets ldquoThey donrsquot have to wait hellip they can see all contributing factors day to day It helps improve efficiency at every level For the first time a shiprsquos captain can have insight into the operational performance of his ship while still at seardquo says Bhattacharya

Creating the Customer-Centric

OrganizationFinding Your Customer-Critical Path

By David F GiannettoCEO

The Telos Group

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orders or demand projections The sales department courts potential buyers so that they become actual customers Once they do so sales then returns to identify new targets and tries to transition them Manufacturing works to refill shelves Engineering continues developing products

Employees throughout the organization are focused upon delivering the product or service for which they are responsible The product attributes become the value proposition that will appeal to their customer regardless of whether or not this is an internal or external customer Employees are trained to think in terms of product development delivery and value The organization becomes even if it doesnrsquot know it product centric Believing that a mainstream management theory such as the value chain approach could not be wrong or outdated management is comfortable with this view of their world When they try to become customer-centric they do not know how

Making the Change

Consider for example the electricity powering the light by which you are reading this article It is a fairly simple product that was mainstreamed decades ago and except for new types of power generation it has remained essentially unchanged The traditional value chain for this industry is fairly straightforward Power is generated by a complex and often dangerous power plant and it is delivered to the customer via a complicated and often dangerous network The customer then consumes this power and must pay for it creating the

need for back-office operations such as accounting finance and customer service

Given the complexity of power generation and delivery operations the organization is staffed by a high percentage of engineers many with doctorate degrees and years of specialized training The generation and delivery assets themselves are maintained by highly-trained highly-specialized workers A large percentage of the management team also comes from this background and rose through the ranks of organizations identically structured Combined these employees represent over 75 percent of the organization

Collectively these employees create a culture that is consistent in almost every power utility in the world Their cultures respect academic achievement technical expertise and years of experience in the industry They typically believe in rigid structures inflexible procedures and consistency in design and execution They are truly product focused

Given the potential hazards it is easy to see why they behave the way they do But what happens when this type of organization has to compete in a more open market when transparency is increased or when the customer such as a municipality has a stronger voice or is under the growing influence of being green What happens when the power company must become truly customer-centric

It is nearly impossible for them to succeed Seventy-five percent of the organization has little to do with or has little understanding of the customer

Departing from Tradition

While this product focus is exaggerated within a power utility largely because of their technical nature these factors affect nearly every organization Employees who have great influence within the organization will not yield it to those who have less but who understand the customer better Funding is unlikely to shift from traditionally respected areas to those areas that most affect the customer

For a power utility this means that engineers who have often dedicated their entire lives to the study of their work must be considered equal to project managers and customer service agents most of who do not hold any degrees Money resources and staffing must focus on project management and call center technology not just on million- or billion-dollar assets There must be recognition that these areas equally affect the customer This new perspective must be executed by executives who have spent their entire careers adhering to the traditional values of the product-centric culture But this shift is what customer-centric really means truly understanding and meeting your customersrsquo needs It starts with the customer more specifically it starts with a prospect

Customer-Critical Path

This means that the traditional value chain must be rethought and renamed more appropriately to the customer-critical path A prospect travels this path on their journey to become a customer a customer travels this path toward the goal of becoming a happy customer This is the true value chain of the organization ndash a string of processes that become critical because they directly affect your customer regardless of the product service organizational chart academic degree or bias Find the customer-critical path and you can guide your customers through your organization in the way that is most meaningful to both them and you

But not all customer needs are the same even within an industry that has only one real product like a power utility The customer-critical path may start in several places meeting the needs of

several different types of customers ndash household customers that simply need power turned on or major projects that require significant project management and pre-planning Eventually these starting paths merge It will occur at the point at which all customers are happy From there they may take a different path

again some will terminate service or have new needs There is not one value chain there are many paths a customer might travel through your organization

This new approach offers significant value for organizations that adopt it It allows them to better understand their customers so that they can be more effectively segmented and targeted by products or services This drives the bottom line in several ways A stronger value proposition increases appeal thus driving revenue Better service and customer interaction improve the customer experience and increase customer loyalty driving customer lifetime value

The customer-critical path also becomes a vital decision-making tool for management It provides a clear and unbiased perspective on where resources should and should not be spent It defines the relative worth of projects assets and expenditures painting a clear picture of what the results will be if the customer-critical path is not

properly maintained

And if your mission and vision statement says you are customer-centric it makes your strategic plan more than simple semantics It makes it actionable setting your organization on a path towards true differentiation and market leadership Properly crafted the customer-critical path becomes a pleasant stroll through the park for your customers and it can also become the most profitable path for your organization

David F Giannetto is CEO of The Telos Group co-author of The Performance Power Grid The Proven Method to Create and Sustain Superior

Organizational Performance (J Wiley amp Sons 2006) and a professor in the Executive MBA program of Rutgers University

Mr Giannetto can be reached by email at dgiannettotelosconsultingcom

34

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35

Vol 6 Issue 2 2009

I Introduction and Background

Who the NMDP is

The National Marrow Donor Programreg (NMDP) and Be The Match FoundationSM are non-profit organizations dedicated to creating an opportunity for all patients to receive the bone marrow or umbilical cord blood transplant they need when they need it Every year thousands of people of

all ages are diagnosed with leukemia and other life-threatening diseases Many of them will die unless they get a bone marrow or cord blood transplant from a matching donor Seventy percent of people do not have a matching donor in their family and depend on the Be The Match RegistrySM to find a match to save their life

The Beginning

When their 10-year-old daughter Laura was diagnosed with leukemia Robert Graves DVM and his wife Sherry were ready to do anything they could to save her They agreed to try a bone marrow transplant from an unrelated donor ndash the first ever for a leukemia patient Laura received her transplant in 1979 at the Fred Hutchinson Cancer Research Center The treatment gave her an extra year and a half of life

The National Bone Marrow

Donor Program

The Balanced ScorecardVision into

Action JourneyBy Howard Rohm

President amp CEO Balanced Scorecard Institute under the guidance of The National Marrow Donation

Programrsquos Michael Boo Chief Strategy Officerand John Rudrud Senior Analyst

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37

Vol 6 Issue 2 2009

The experience inspired Dr Graves to create a national registry of volunteers willing to donate marrow His early efforts brought together other patient families and transplant doctors spurring a federal mandate that led to the creation of the National Marrow Donor Program NMDP began connecting patients with unrelated donors in 1987 with a registry of just 10000 volunteers

What the NMDP Does

The Be The Match Registry has grown to more than seven million donors and over 150000 cord blood units the largest and most racially and ethnically diverse registry of its kind in the world Medical advances are making marrow and umbilical cord blood transplants available to more patients all the time Since 1987 NMDP has arranged for more than 35000 transplants to give patients a second chance at life Today NMDP facilitates more than 4300 transplants a year

Planning for the Future

Many more patients still need help In order to meet the needs of all patients NMDP will need to facilitate 10000 transplants per year by 2015 That is more than double the number of transplants the organization facilitates today NMDP is working to meet this need but canrsquot do it alone Efforts are sustained by

bull A global network of more than 490 leading hospitals blood centers cord blood banks and laboratories

bull Agreements with donor centers cooperative donor registries and cord blood banks worldwide through which the program provides patients access to more than 12 million donors and 300000 cord blood units

bull Continued support from the US government which has entrusted the NMDP to operate the CW Bill Young Cell Transplantation Program the federal program supporting bone marrow and cord blood donation and transplantation

bull Partnerships with corporations service organizations student groups faith-based communities and other organizations

A new and different way of thinking about the NMDPrsquos long-term strategy was required in order to make sure that NMDP would be capable of delivering 10000 transplants per year in 2015 ldquoBusiness as usualrdquo would not get the organization where it needed to be NMDP needed to identify and

aggressively improve in strategic areas critical to the delivery of 10000 transplants

II The Balanced Scorecard Approach

Background

The strategic planning system that had been used at NMDP up to 2007 was a fairly well-developed planning process that tracked initiative performance under seven primary areas of strategic focus While this approach provided a measure of strategic planning for the organization it was too focused on activities and projects rather than on impacts

Early in 2007 NMDP leaders Gordon Bryan Chief Financial Officer and Michael Boo Chief Strategy Officer began developing strategic metrics designed to identify measure and communicate progress in strategic plan objective areas

Selection

As the senior management team evaluated options to integrate broader strategic metrics with the existing strategic business plan the Balanced Scorecard approach emerged as a leading candidate during the initial assessment of planning models because it

bullEncourages development of strategic themes and provides the ability to focus on areas where long-term continuous improvement is needed

bullPermits identification of cause-and-effect relationships between Strategic Objectives within each Theme

bull Facilitates communication of Strategic Objectives that can be portrayed on a strategy map that is easily understood by all employees and stakeholders and shows how the perspectives work together to achieve the mission

bull Assures that the organization focuses on Strategic Objectives and Measures from a CustomerStakeholder perspective and a PeopleKnowledgeTechnology perspective (Historically the organizationrsquos focus was skewed toward the Process and Financial perspectives)

bull Enables leadership to track Strategic Objective performance over the long term rather than tracking the status of supporting projects and initiatives

bull Creates a framework for prioritization of projects initiatives and funding opportunities based on contribution to and support of the Strategic Objectives

bull Allows organizational Strategic Objectives to be cascaded into Department Objectives thereby giving each employee

a more specific understanding of how his or her work impacts and contributes to the Strategic Objectives

bull Drives long-term continuous improvement as Strategic Measures improve over time

bull Facilitates a ldquolearning organizationrdquo where corrective actions are implemented in cases where Strategic or Department Objective Measures are not being met

The NMDP planning team looked at a number of planning models ndash including Balanced Scorecard Six Sigma Lean and TQM ndash and concluded that the Balanced Scorecard approach provided the most versatile and relevant framework for future growth and organizational development

III Scorecard Development ndash NMDP Officer Input

Early to mid 2007 NMDP began the Balanced Scorecard development effort with the help of consultants from the Balanced Scorecard Institute

A comprehensive review of the organizationrsquos strengths weaknesses opportunities and threats organizational pains organization enablers vision and mission was conducted over several days with NMDP officers and senior management These sessions produced a new Mission and Vision Statement and four Strategic Themes (rather than the original seven)

The former mission statement Extend and improve life through innovative cellular transplant therapies was changed to We save lives through cellular transplantation ndash science service and support

ldquoThis new mission statement captures and communicates more directly why we exist and it clearly articulates the three ways that we are able to save livesrdquo explained NMDP CEO Dr Jeffrey Chell

The Overarching Strategic Result in place of a vision statement was developed and shared with employees throughout the organization Meeting the need for 10000 transplants per year by 2015 The senior management team developed a longer more descriptive version of this statement but felt that the shorter version had more impact

ldquoWersquove found that the Overarching Strategic Result has been a great tool to get people thinking about how we will manage

to do more than double our current transplant volumes in a relatively short time ndash just five years from nowrdquo explained initiative sponsor Michael Boo ldquoThis has driven a lot of creative thinking around how to dramatically improve the efficiencies and cost effectiveness of many internal systems and delivery processesrdquo

The four Strategic themes that the NMDP officer group developed and agreed upon are

bull Global Access and Acceptance ndash Getting to Yes Overcome non-cell source barriers to transplant (eg no insurance no transportation no post-transplant support)

bull Deliver Excellent Stakeholder Experience Overcome Cell Source Barriers (making sure a cell source donation is available when itrsquos needed ndash adult or cord)

bull Research Pursue research to improve cell transplantation as a therapy

bull Culture of Excellence Keep up-to-date with talent structure and resources needed to continually improve transplant services

IV Scorecard Development ndash Senior Management

Throughout the spring and summer of 2007 four Theme Teams comprised of senior management met to develop

Theme Team strategy maps that included Theme Objectives by Perspective and proposed Measures for each Theme Objective These served as detailed roadmaps with specific objective areas identified ndash where NMDP needed to focus in order to improve them

The four Theme Team maps were subsequently

combined into an NMDP Strategy Map that included all relevant components from each theme This NMDP Strategy Map is comprised of 13 Strategic Objectives 46 Strategic Measures and seven Strategic Initiatives

Narratives were captured regarding the intent and ultimate end state for each Strategic Objective and detailed descriptions were created for measurement information including rational frequency owner and unit of measure

At this stage in the process the team named the Balanced Scorecard tool ldquoVision into Actionrdquo or ViA ndash NMDPrsquos strategic Performance Management tool On June 1 2007 the ViA Themes and NMDP Strategy Map details were presented to the board of directors by senior management and approved along with a plan to proceed to the next phase of department cascading

A ViA Communications Team was formed to communicate ViA progress to employees on the development of the new Mission Statement Vision Statement and the 13 Strategic Objectives This was done through a combination of pulse checks newsletters

38

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39

Vol 6 Issue 2 2009

intranet messaging e-mails from the CEO leadership training all-staff meetings and promotional contests This was an extremely integral step in the ViA roll-out that provided transparency and generated excitement around the benefits of ViA

V ViA Department Cascading

All departments at the NMDP were scheduled for sessions to develop their department Objectives Measures and Initiatives These were facilitated by internal subject matter experts and included an initial two-day exercise to help the department identify where and how each department contributed to the NMDP Strategic Objectives Worksheets and other preparation material were provided to each participant and collected prior to the cascade session The pre-work information was used to expedite the affinity exercises at each session

These were followed up with sessions to finalize detailed measures with individual measure owners Department teams were comprised of five to 10 key members of each department

The department cascading efforts provided a number of primary benefits to the organization including

bull The articulation in easy-to-understand terms of how each department contributes to the overall success of the Strategic Objectives and ultimately the NMDP Mission

bull A tool to identify gaps or overlaps between departments that can also be a tool for departments to communicate with each other in terms of supporting initiatives

bull A tool for each department to prioritize initiatives and activities Also it provided a mechanism to support requests for funding new opportunities

bull A clear framework for corrective action where measures are not being successfully met

bull A common format and mechanism for reporting department performance to officers and senior management

bull A common format and mechanism for reporting and reviewing department performance with staff

bull Help with the development of individual job performance appraisal content ndash which should be designed to support Department Objectives

Department Cascading was complete in early 2009 There are over 200 separate department measures that are tracked each quarter

VI NMDP ViA Today

NMDP has established a department Champions Council Members of the Council are becoming experts at using the automated ViA software Today this is being used at department staff meetings to facilitate discussion around corrective action for underperforming or unacceptable Department Measures Departments use the department Strategy Maps to guide staff meeting discussions on performance measures and corrective action plans

ldquoAll business cases or requests for funding must be submitted with clear tangible descriptions of how the effort will impact ViA Strategic Objectivesrdquo explained Boo ldquoOnce all business cases have been submitted to the officer group for final approval they are prioritized in order of their impact on ViA Strategic Objectivesrdquo

All strategic and department measures are required to be reported into the ViA system each quarter Each is color coded based on an officer-approved target matrix Each measure owner is required to provide comments regarding the measure performance for the quarter and discuss how he or she expects the measure to end the fiscal year This information is shared with senior management for review and follow-up with measure owners ifwhen necessary

Senior management uses the color-coded NMDP Strategic Map as a basis for discussing quarterly performance and identifying

Strategic Objective areas that may need attention corrective action andor more resources NMDP tries to focus not only on corrective action items but also highlight success stories where outstanding performance has been reported

All employees will soon have access to the web-based ViA application to provide as much transparency and visibility as possible in order to become a truly strategy-focused organization

ldquoVision into Action has been successful within the organization to a great extent because of the consistent support and guidance provided by NMDP leadership including our CEO Dr Jeffrey Chell my fellow Officers and the Board of Directorsrdquo said Boo

Howard Rohm President and CEO of the Balanced Scorecard Institute is a Performance Management trainer consultant and technologist with over 40 years experience Mr Rohm has helped dozens of organizations worldwide build Balanced Scorecard and other performance planning and management systems

48

Pe

rform

Mag

azine

Info

rmatio

n in

Actio

n

A community for BIRT users and developers sponsored by Actuate

A Report Writing Portal lets your end users browse reports modify them and even develop

new ones You can set one up in three steps when you use AJAX-based BIRT technology

Because the end user tools to modify and create reports are AJAX-based therersquos no desktop

software to install Users get the reports they need quicker while the burden on development

resources to create new reports is reduced

BIRT Exchange is a community site that offers the broadest collection of resources for the Eclipse BIRT (Business Intelligence

and Reporting Tools) project and for integrating spreadsheets with Java The site is sponsored by Actuate a co-leader of the BIRT project

Sponsored by

See a Demo

at Booth

602

For More Information

Contact us by phone at 1-800-884-8665

1-913-851-5300 from outside of the United States

wwwbirt-exchangecom wwwactuatecom

40

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41

Vol 6 Issue 2 2009

JCIrsquos previous approach of one-off negotiating as well as its spirit of continuous improvement and customer focus meant that it had only one-off measures in every location The company for example had 127 variations of the measure lsquomaintenance managementrsquo Many were very similar but since they were not exactly the same they could not be compared effectively Inefficiency at gathering and maintaining data at different locations across the globe made the task difficult as well Data was collected any way possible thrown into a cell or a Power Point slide and handed in at the end of the month It was highly inefficient extremely customized at every location and did not allow any ability to benchmark compare or look at best practices These concerns and requirements drove JCI on its scorecarding journey

The Solution

In initiating its scorecarding solution JCI first had to establish the right measures Business leaders were chosen for all of the scorecard categories and for each of them a business owner was selected for each region these business leaders and owners were responsible for defining the standards and measures Data collection systems in some cases proved difficult there wasnrsquot always centralized information available ndash in some cases data needed to be gathered right down at the account level This meant that the process of data collection and identifying measures was a significant job To get started though JCIrsquos web programmers were able to put up some scorecards quickly to allow the company to start architecting measures this allowed business leaders across the globe to start identifying their measures and to put the processes in place regionally to collect information

Before committing to a technology JCI wanted to know 100 percent of their business requirements and this was the point of their web-based scorecard To assist in this endeavor Actuate ndash prior to selection ndash let the company test drive their product The JCI team went through and looked at every single screen determining where they had to configure the tool and for every single screen they also made what they called a lsquoblueprintrsquo creating an Excel template with fields to correspond with every field on each screen It was incredibly detailed work but they wanted to ensure no mistakes were made and that the business requirements were defined To accomplish this there was an extreme amount of detailed coordination globally with twice-weekly meetings for the worldwide team in charge of the initiative A byproduct of the process was that the team learned to use the Actuate BIRT Performance Scorecard and basically built all of the blueprints for the project design

JCIrsquos audience for the project upon kick off were the 300 external customers that would have access to this information Customers previous to this were getting their information via Excel and PowerPoint In addition to these external customers was the population of approximately 1000 internal users within JCI itself These included account leaders and functional leaders including those from HR Finance Safety etc

Three primary functions of the project were

1 To replace the PowerPoint slides used in global and regional monthly internal operational reviews

2 To very quickly be able to become best in class JCI wanted everyone who had an account to be able to see where they sat compared to their peers This provided individuals ndash when faced with a problem ndash the ability to quickly identify and contact others who had solved the same issue

3 To standardize customer faith in contractually required performance measures This was a key goal of the company which felt that if they were going to benchmark and compare they needed to bring in the best practices learned at one location to their work at other locations

These three primary functions were heavily loaded in JCIrsquos rating system as the company set out to choose the right software for their scorecarding project It was also important that the software be intuitive as there was no time for hundreds of hours of global-wide training The software had to be rapid and easily configurable with limited IT assistance As JCI is a very large organization with a lot of systems in place the team in charge also wanted the software to be easily adjustable to the companyrsquos rapidly changing business they didnrsquot want to have to get into queue for IT every time a change had to be introduced or a new customer added

JCI Chooses ActuateFour vendors were evaluated for JCIrsquos scorecarding project with a global team in place to provide a systematic discussion of the defined business process and requirements The product chosen was the BIRT Performance Scorecard JCI had 30 days of Actuate Professional Services and planned for monthly micro improvements and quarterly macro improvements

Upon purchasing the BIRT Scorecard in January 2007 using the blueprints theyrsquod established already the company wrote their business processes They were able to go live in 90 days helped by the homework they did with the blueprints the web scorecard and the data collection processes It was an incredibly smooth implementation overall

The Results

Whereas JCI originally started out with a model of one-off negotiations with customer measures the scorecarding project has led to approximately 70 percent agreement on JCI standard metrics The company does a customer satisfaction survey both annually and quarterly and aims to demonstrate evidence towards continual improvement

Since implementation of the project the company has also been solving its data integrity issues Previously two regions might have been using the same words but not the same data collection methods ndash this made it impossible to introduce benchmarking and comparison between areas Now those problems are being solved and benchmarking and comparison are possible to the benefit of both JCI as it strives for best-in-class status and its customers

By David F GiannettoCEOThe Telos Group

Johnson Controls Incorporated (JCI) is a $38 billion company with a total of 140000 employees working out of more than 1300 locations in 125 countries worldwide Headquartered in Milwaukee Wisconsin the company provides a range of services including

real-estate portfolio management property management facility management and design and construction services

To initiate its scorecarding project JCI began by creating five categories of measurement Business Performance (this includes all financial measures) Service Delivery Customer Satisfaction Safety and People While the other four categories may be typical to most organizations the Service Delivery category was designed to take JCIrsquos measurements down to the client-site level which includes over 300 locations globally where the company has contracts In some cases there might be one staff member assigned to manage a single building while other times a staff member has a whole portfolio they maintain Measuring performance at all of these locations and levels proved a complex undertaking

Strategic Initiatives

Like all service providers JCI has to demonstrate that they add value Scorecarding allows them to do this both internally

and externally using data-driven results Since JCI has always been very much a data-driven organization anyway with a manufacturing background this was a natural fit for the corporation

JCIrsquos organization-wide motto is to be as good everywhere as they are somewhere Theyrsquove found that in any one account they may excel in several areas but perhaps not in all areas elsewhere though on another account someone else might have the skills needed to fill in those gaps The companyrsquos goal was to share information and communicate it between different locations across the globe allowing the company as a whole to get better faster and to benefit from the skills and strengths of its individual members Scorecarding was introduced as a way to help share this information and to introduce benchmarking within the company

The Requirements

To get started on their scorecarding initiative JCI examined each of their US contracts What they found was that there were no standards between clients and therefore no ability to benchmark Customers though wanted the ability to find out how they stood in relation to other customers This was impossible under the circumstances

Global Operational Excellence and a Performance Scorecard System A Case Study of

Johnson Controls Incorporated

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Vol 6 Issue 2 2009

Out of Touch With Crucial Data

Previously when Helzbergrsquos divisional and regional vice presidents went on the road access to their key performance metrics was restricted Without a laptop and a WiFi or hotel network connection to the internet they were ldquoflying blindrdquo according to Greg Backhus Helzbergrsquos Director of Data Warehouse and Decision Support Systems As a result they did a lot of faxing it was the only way they could get the current data that they needed in order to

About Webalo

Webalo technology transforms enterprise applications and data to make them compatible with mobile

devices This eliminates the need for traditional custom programming reducing the deployment of mobile applications from weeks or months to in most cases less than a day The resulting ldquoanywhere anytime on-demandrdquo availability of enterprise data on handheld devices turns such devices into viable alternatives to desktop laptop and palmtop computer hardware and lets mobile employees work more productively ndash on the spot ndash to solve problems answer questions monitor operations close sales and make informed decisions

The Webalo Mobile Dashboard Service ndash available in both internet-based and enterprise intranet-based implementations ndash lets non-IT business administrators securely specify the content of mobile-accessible information and the companion Webalo Proxy Server configures it in seconds to conform to the native user interface of any BlackBerry Windows Mobile Pocket PC Palm Symbian or Java-enabled smartphone

CLARITY CUT AND CARATSHow Helzberg Diamonds Made Sales Data Clearer Eliminated

Delays and Lightened the Load for its Divisional Executives

A diamond may be forever but a lot has changed in how theyrsquove been marketed and sold during Helzberg Diamondsrsquo nine decades in business A single store has expanded to nearly 300 locations from coast to coast and border to border Sales can also be made online now And information about every sale can be accessed in an instance through the companyrsquos enterprise systems

bull Compare actual sales to their goals and plans

bull Determine transaction counts for total dollar volume and average sales value

bull Break down sales by product category

bull Monitor attachment rates for products and services related to the main product sale

For example onsite at individual stores it was difficult to gauge how an active price-reduction sale was affecting unit and dollar

volumes unless there happened to be a coffee shop next door with a WiFi connection that would let Helzbergrsquos executives access the enterprise system

The Three Cs of Information Access

The three Cs of diamond grading ndash clarity cut and carats (or weight) ndash turned out to be applicable to data access as well But it took a transition to handheld devices and to the Webalo Mobile Dashboard to achieve it

Though laptop computers had gotten lighter and lighter over the years they were still considerably heavier than the Pocket PC-based smartphones that Helzbergrsquos executives used Since they were carrying those handhelds in addition to their laptops the VPs were open to the idea of being able to

bull Access sales metrics on their handhelds

bull Have data available on-demand from any location with a wireless signal

bull Navigate quickly to the figures they needed

bull Get updates to their metrics automatically

bull Review the information offline

It was the only time that carrying less weight ndash or carats ndash added more value Using a simple step-by-step wizard Helzbergrsquos support staff was able to configure their enterprise reports in a matter of hours They then assigned access privileges to each executive to control who could see what information and uploaded the file to the Webalo server That satisfied how data was ldquocutrdquo

For each mobile user regardless of the brand and model of smartphone they used the Webalo Mobile Dashboard conformed the information to the devicesrsquo user interface The application worked and looked exactly like any other application developed specifically for their mobile devices the on-screen text was easy to read and navigation used the same menu structure That meant there was no learning curve to delay user acceptance and productivity Clarity was essential and the Mobile Dashboard delivered it right down to the ability to bookmark commonly-referred-to displays for instant reference enhancing on-the-spot productivity even more

Speed and Simplicity

Productivity was also improved on the IT side Without the need for custom programming to conform the information to each smartphone brand and model deployment was reduced from months to hours

Since adopting the Webalo Mobile Dashboard Backhus says ldquoThe Divisional VPs find it invaluable They get more done because they donrsquot have the delays they used to haverdquo Decisions that used to have to wait for current data are now made right away relying on the right data presented in the right format

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Vol 6 Issue 2 2009

Sustainable practice has graduated from being market hype

to becoming a strategic initiative important for driving a successful enterprise It not only reduces a companyrsquos impact on the environment but can help organizations achieve a competitive advantage to build their brand impact top and bottom line and improve customer acquisition satisfaction and retention

Creating a road map towards sustainable management can require an entire shift in corporate thinking one that involves searching for buy-in at all levels establishing useful metrics and introducing practices that get beyond the green hype The end result though is not just a greener organization but also one with a more prosperous future

Why Sustainability

In August 2008 a survey undertaken by CIO Insight examined green practices in business focusing on the reasons why CIOs introduce sustainability efforts into their organizations The number one reason why organizations went green the study found was that the people within those companies sincerely had a concern for the environment A total of 74 percent of respondents answered that way 32 percent of which listed it as their most influential driver

Other influential drivers named in the survey included

Financial Drivers Companies found sustainability to be a way of cutting costs If they could cut energy costs not only would that help the environment but it would also help create cost savings The second most popular answer in the CIO Insight study financial impacts are key to implementing sustainability in most organizations Examples of financial impacts possible from sustainability were presented at CFO

2 The CFO Green

Conference which took place in May 2008

bull Dupont reduced its CO2 emissions by 70 percent saving the company $3 billion

bull FedEx redesigned its delivery trucks making them more aerodynamic This reduced the amount of particulate pollutants nitrogen and carbon the trucks put into the atmosphere and it also reduced the companyrsquos fuel costs exceptionally

Customer Image In the CIO Insight survey the third motive listed by CIOs for introducing sustainability ndash at 64 percent ndash was company image Consumers are becoming more and more aware of whether companies or organizations are living up to sustainability ideals They will notice if a company image or brand value reflects this concern for the environment Meaningful sustainability efforts can help gain customer approval as in the following case

bull Wal-Mart and Procter amp Gamble together agreed to sell liquid laundry detergent only in concentrated form This saved shelf space for Wal-Mart reduced water use by 400 million gallons for Procter amp Gamble and eliminated 45 million pounds of plastic waste

Regulatory Requirements The surveyrsquos fourth most popular reply ndash at only 25 percent ndash were current or potential regulations including the cap and trade systems being implemented which will require companies to buy carbon and sell carbon credits

Shareholder Pressure Finally at fifth in the CIO Insight survey ndash with 14 percent of responses ndash was shareholder or public pressure pressure building from shareholders to put forth sustainability efforts Pressure at this level is often mixed though as shareholders are also likely to express a desire that they donrsquot want shares to decline in value The general message may be that it is fine to introduce sustainability measures only as long as there is no risk that they will hurt the company

A Road Map Towards Sustainability

Step 1 Identify What Drives Your Organization

The first step in the road map towards sustainability is identifying key drivers Some drivers vary from one organization to another while others seem to drive any organization regardless of the industry Drivers incude

Internal drivers

bull Cost cuttings and savings

bull Employees including both the satisfaction of current employees as well as the recruitment and retention of future employees

bull Investment

External Drivers

bull Stakeholders including both those within the company ndash the employees discussed above ndash as well as stakeholders outside of the company

bull Brand awareness because consumers are becoming increasingly aware of the choices that are available to them and are making choices based on a companyrsquos green initiatives

Future drivers

bull Tax incentives

bull The recruitment and retention of future customers

Step 2 Select Your Metrics

In general terms sustainability metrics will fall into one of four major categories those that affect the climate those that affect the oceans those that affect human health and those that affect common issues like the land the water the wildlife etc

Within those large categories are smaller areas of interest that companies must examine to introduce organization-wide sustainability management carbon monoxide use energy consumption water consumption and fuel consumption are prime examples

Carbon Monoxide Use Many of the questions companies are asking themselves in regards to carbon monoxide use include

A Road Map of Key

Sustainability Metrics

That Impact Bottom

Line

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Vol 6 Issue 2 2009

bull How much carbon monoxide do we produce

bull Which processes in our overall manufacturing or delivery use produce the most emissions

bull Can we determine the indirect emissions For example leave a computer plugged in and itrsquos still on the grid creating an indirect carbon dioxide emitter How can we measure that

bull Whatrsquos our cost Do we have metrics that tell us what our CO2 emissions cost us

bull Can we predict into the future If we continue on this path without doing anything where will we be next month Next quarter Next year

Some examples of metrics related to carbon monoxide use include carbon dioxide emissions per employee (similar to revenue per employee) carbon footprint metrics and transportation distances

Energy Consumption Areas of interest related to corporate energy consumption may include the following

bull How much do we consume From what sources

bull Are we on the grid Are we using solar power or wind power or another alternative power

bull How much is used by our data center How do we make the data center greener

bull Where can we reduce consumption

Companies today are reducing energy consumption in a variety of ways by introducing energy audits and looking at energy-saving appliances and also through energy incentive programs for employees within which companies can incentivize and introduce bonus plans

Water Consumption An examination of a companyrsquos water consumption may include some of the following queries

bull How much water do we currently use and where

bull Where in our processes do we use the most water

bull Can we predict how much wersquore going to use in the future

Some of the examples of metrics that companies introduce in terms of water consumption include improved water quality how much impact low-flow or low-volume toilets have on water consumption and how much water is or can be recycled

Fuel Consumption Questions to consider in relation to fuel consumption include

bull How much fuel do we use

bull Where are the inefficiencies

bull Whatrsquos being predicted for fuel usage in the future

bull Can we analyze our logistics so that we can determine how to reduce our fuel consumption For example where are our trucks traveling How are they traveling What kinds of loads are they carrying

Step 3 Recognize Challenges

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly As such easier ways to enhance communication and to increase visibility need to be introduced both inside and outside of an organization

There are also constantly evolving requirements measures and standards of success With everything so new companies are challenged to find ways to compare their sustainability efforts with other organizations The biggest challenge in implementing these processes or attracting metrics may be that they require an entire shift in thinking Additional challenges that exist in the implementation of a sustainability model include

1 Financial concerns Companies must truly see potential for returns on investment or these initiatives can become non-starters or stall

2 Lack of regulatory motivation While not as common as it once was certain organizations arenrsquot motivated to introduce sustainability until government regulations are in place

3 Lack of a formal strategy for sustainability Without a formal strategy it is difficult for companies to determine where they need to go

4 Determining appropriate metrics Companies must choose metrics that are useful demonstrate impact and say something about their own corporate environment

5 Calculating metrics Standard algorithms and calculations exist to calculate metrics but companies must find the appropriate ones and use them

6 Finding quality data to plug into those calculations As in any Business Intelligence project if the quality of the data is questionable then so are the sustainability metrics themselves

7 Determining the scope of the sustainability project The scope is critical Narrow it down to something achievable feasible and useful

Step 4 Learn from Best Practices

What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde

bull Assign an executive champion Without an executive champion to drive the project initiatives are more likely to lack a holistic view and a clear vision for an implementation strategy they may take longer to implement and theyrsquore less likely to yield the required results To provide motivation consider linking the championrsquos salary directly to sustainability savings or to the increased revenues that result from sustainability efforts

bull Implement internal training and education Educate employees on what to expect and what is expected from them

bull Improve communication Communicate both to employees and to stakeholders outside of the organization

bull Start to think about alternative energy management and control strategies

bull Engage the use of technology and services For companies not sure where to begin a sustainability consultant can assist with program selection as can vendors such as Actuate which has a sustainability management solution in place

Step 5 Get Started

Understand that sustainability development is a business opportunity Donrsquot look at it solely as environmental although that is also important Itrsquos an opportunity for companies to introduce more cost-effective processes and procedures and to become more cost effective in their vehicle fleet manufacturing delivery etc

bull Create globally consistent metrics and goals Large agencies have to make sure that the entire group is on board and that they have consistent metrics and consistent goals across the enterprise

bull Find the value and drive the action What is the value of monitoring these sustainability areas and whatrsquos the course of action if you see that theyrsquore going off kilter or are not tracking as expected

bull Start small Initiatives such as these can become incredibly complex very quickly Start small and build in the complexity with each ensuing project

bull Get buy in People need to understand what the metrics are why theyrsquore there and what they mean to each individualrsquos situation (as reflected in individual bonus plans perhaps) Measure using industry-accepted methodologies and industry-accepted protocols continually improve metrics through optimization and forecasting and constantly optimize metrics and forecast into the future

bull As much as possible accurately report to everybody environmental performance Let employees shareholders customers and regulators know If data is questionable fix it get quality processes in place and then run the metrics

bull Determine environmental impact Has waste been reduced Has resource utilization been reduced Has the company improved environmental factors

Also consider using an Open Source vendor The Open Source community is beginning to develop sustainability metrics and Open Source reduces the costs of developing metrics while software costs for the project are reduced as well

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly ldquo

rdquo What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde ldquo

rdquo

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Step 6 Move from Green Hype to Sustainable Action

A successful sustainability initiative involves identifying metrics that will translate into cost savings and benefits while avoiding metrics that are not likely to yield required results To accomplish this start small start with a small department within the organization and then repeat this continuing to repeat it throughout the enterprise

bull Start with basic conservation Change behavior reduce consumption and in the process increase investment

bull Start reusing Improve productivity improve efficiency and create less waste

bull When this translates into cost savings re-invest Grow make larger improvements and increase involvement

Projects that make good starting points

bull Measure carbon dioxide emissions throughout a value chain or product lifespan Look for potential improvements

bull Ensure regulatory compliance By knowing what the regulations are companies can determine what metrics need to be in place

bull Identify ways to promote and profit from more environmentally-respectful goods and services Companies can promote environmentally-respectful goods and services while also using sustainability to help the company

Monitor the effects of each project to determine which strategies have the most impact both physically in terms of

the environment and financially in terms of revenues and cost savings Publicize how metrics are tracking over time

Actuate for Sustainability Management

Actuate for Sustainability Management is a solution by Actuate that integrates highly interactive visually rich dashboards There are pre-built sustainability scorecards strategy maps and over 100 pre-built metrics across the economic social and environmental aspects of sustainability

The Actuate BIRT Performance Scorecard supports the metrics defined including

bull Reducing an organizationrsquos environmental footprint

bull Building green facilities and buildings

bull Compliance and reporting

bull Manufacturing

bull Community and engagement

bull Human development including employee well-being and satisfaction

Actuate for Sustainability Management provides collaboration across regulators consumers and non-governmental organizations Dashboards and scorecards come integrated with reporting so as to improve reporting to stakeholders both outside and inside of an organization All of the products are built on Actuatersquos dependable cost-effective and scaleable platform

Performance Management solutions help organizations understand act on and influence business decisions processes and measures of business success The 2009 Actuate Performance Management Excellence Awards will honor customer success stories in four key areas Over the next several issues Perform Magazine will highlight some of the entries in these categories

Category 1 Go Green

Each year the concept of environmental responsibility has implications for both the private and public sector specifically with regards to how each measures the performance of their operations For organizations using the Actuate BIRT Performance Scorecard to measure the progress of organizational Green initiatives how have they responded to the challenge and how do they use the BIRT Performance Scorecard to ensure they stay on track

Category 2 The Perfect Slice

Successful Performance Management comes in all sizes Some initiatives are enterprise-wide while others are focused around specific business units or functions yet still encompass a holistic approach to Performance Management by looking beyond financial indicators to a more balanced set of indicators This category includes organizations deploying the Actuate BIRT Performance Scorecard with a focus on improving the performance of individual business units or functions and includes the measurement of people and processes

Category 3 Big Bang

Carefully executed Performance Management initiatives begin with a measured approach to the initial implementation and quickly expand to other parts of the organization aligning business units to strategy at each step This category is open to Actuate customers who initially implemented the Actuate BIRT Performance Scorecard to a limited user community and through careful change management and planning expanded the use of the BIRT Performance Scorecard throughout the organization

Category 4 Super Size

Award-winning enterprises achieve breakthrough results in the financial customer operational and people perspectives of their business and leverage internal champions across the organization to ensure ongoing and sustainable success The key to achieving these results lies in total visibility of all business units aligned to strategy This category is open to any Actuate customer with a fully deployed enterprise-wide Actuate BIRT Performance Scorecard implementation

Actuate Performance Management Excellence Awards2009

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HealthNow New York Inc headquartered in Buffalo is one of New York Statersquos leading healthcare companies doing business as BlueCross BlueShield of Western New York BlueShield of Northeastern New York HealthNow in the Central New York region and Brokerage Concepts Inc in Pennsylvania

Improving the health of people and communities are HealthNowrsquos corporate priorities and for more than 70 years the company has been a proactive partner in health working to improve the quality of care and the quality of life for everyone it serves In 2008 HealthNow provided access to care to more than 820000 members and in 2008 company revenues grew to $227 billion

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution and describe what you were trying to achieve as a group function or department

A few years ago HealthNow New York Inc determined that the key to its continued success would be its ability to differentiate itself from other healthcare plans in ways that could not be readily duplicated or copied by their competitors In an increasingly crowded marketplace to get the attention of new customers and retain existing ones HealthNow needed to set itself apart from others

This lasting competitive advantage needed to come from an organizational culture that was dedicated to a relentless focus on meeting customersrsquo needs It needed to be highly responsive supportive flexible and nimble particularly as the healthcare marketplace continues to change with more responsibility placed upon its customers

To that end a new business model was implemented to provide the framework for customer focus Under the new structure the company was divided into four strategic business units (SBUs) each responsible for financial contribution customer satisfaction medical utilization and market share of a specific book of business

Each SBU includes its own set of functions including sales account and broker management product configuration customer intelligence pricing enrollment and billing customer service medical management and HR support Each business unit is led by an executive who is fully accountable for the unit operations and for bottom-line performance of the entire business unit Each SBU is supported by various corporate support functions (Actuarial IT Legal etc)

Implementation of the new business model began with a reorganization of the senior management structure The senior management of each SBU has specific incentive goals as well as strategic goals aligned with the corporate incentive Those strategic goals then drill down to ldquoteamrdquo incentives and to a blend of strategic and operational goals

This was a completely new way of looking at our business It was a blank slate requiring new processes and new methodology as well as an examination of existing metrics and processes to determine what added value and where the strengths weaknesses opportunities and gaps were

Under this new structure the Government Programs State and Federal products SBU ndash which historically had some inefficient end-to-end processes lacked internal controls and had minimal oversight of financial performance ndash was able to set a foundation and develop a growth strategy In order to achieve this mission and to align track monitor improve and communicate performance the Senior Vice President of the Government Programs SBU elected to utilize a Performance Management framework via the Actuate BIRT Performance Scorecard

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

As a point of reference the Government Programs SBU is comprised of a State Government Programs team a Federal Government Programs team an Operations team and a Sales team The Performance Management design team was comprised of the Actuate system administratorfacilitator the Government Program financial reporting manager and two SBU data analysts Input from the various teamsrsquo management staff was gathered as the design got more granular

Discussions around the design of the Government Programs scorecard began with two basic questions

1 What are the handful (ideally six to eight) of key performance indicators that are necessary to run and manage your business and to indicate that yoursquore on the right path to achieving your goals

Defining the key performance indicators was a challenge that required the Actuate system administrator in a facilitative role to get intimately involved in order to keep the discussions focused and high level and to limit scope creep The incentive goals were clearly defined at the corporate and SBU level however the tough question was how should they drill down in the BIRT Performance Scorecard The facilitator posed the following questions to the other members of the design team

bull How do you usually look at your business

bull How are the primary source documents that capture this information structured

bull What other ways do you look at your business

Taking the answers to these questions a step further the facilitator asked the next question Is the drill-down structure the same for the core strategic or team metrics The answer was yes By taking this approach we were provided with consistency in how the teams look at their business and the performance of their core indicators

Once the incentive and strategic goals were identified more leading and lagging operational measures were defined such as

bull Call centers

bull Accuracy

bull Quality

bull Sales Performance

2 Who is your audience

Through the entire measure selection and definition process the design team was constantly reminded to keep a second question ndash who is your audience ndash in mind This helped keep the focus on the critical few and keep the number of metrics down to a manageable amount Links to supporting documentation were created to provide easy access to the granular data without burdening the scorecardrsquos objective

The audience in this case was the SBUrsquos Senior Vice President followed by the State Director Federal Director Operations Director and Sales General Manager It then cascades down to each directorrsquos management team and the data providers

In order to provide a complete and consistent picture of State and Federal performance for senior management where

gt Performance Management Excellence Awards

HealthNow New YorkCategory 2 Entry The Perfect Slice

gt Performance Management Excellence Awards

[ Figure 131 Homepage Map ]

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Vol 6 Issue 2 2009

possible the same or comparable measures were created for each team For example when looking at the various call center metrics ndash even if the definitions and targets slightly differed ndash if one team was consistently exceeding or meeting their target it sparked group discussion around best practices processes staffing and target definition

Utilization of Maps continues to play a major role in communicating performance Again focusing on our audience there is a Map at the Senior VP level which then links to a high-level Map for the State director and staff and for the Federal director and staff The one-page snapshot allows management to easily view performance then to drill down to specifics via additional detailed Maps or Books Because the audience embraces the Maps concept a ldquoWhere is itrdquo Map containing all Maps and Books by SBU was created Itrsquos a quick and easy reference tool

3 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

Quantitative results are achieved through the promotion of visibility and awareness The Return on Investment may not fit a conventional definition but can be measurable and accomplished by challenging the data targets and accompanying commentaryaction plan narrative to drive performance improvement Are the targets realistic yet aggressive Are action plans being documented and carried out Are the actions discussions and decisions leading to improved performance and processes

Government Programsrsquo membership is measured and monitored in various ways via the BIRT Scorecard and other sources For example Federal membership is measured by product then by plan It is also measured by market then by product then by plan By creatively visualizing performance in multiple ways via a Map those same data results can sometimes become very obvious telling a different story that may not be obvious via standard reporting methods It may clearly illustrate that a specific product in a specific market is continuously under-performing for example Fact-based decisions can then be made as to whether or not to continue with this product in this market or it may initiate discussions as to how to grow and retain profitable membership for this product in this market

Another more recent example is an initiative to track claims-review savings By reviewing claims via various processes what savings can be recouped or realized What specific areas are State and Federal teams focusing on that can contribute to overall savings for the SBU Again where applicable there should be consistency in the metrics across

teams Placeholders are included to promote visibility to keep them in the forefront even though the data or processes may not be in place yet But by capturing results on one page via a Map it bridges potential gaps between the teams promoting awareness and synergy across the SBU

4 Qualitative results What ldquosoftrdquo or intangible benefits has the group department or organization received as a result of this solution

A major benefit of the scorecard framework for the Government Programs SBU has been the identification and alignment of roles responsibilities and accountability

The SBUrsquos Senior VP monthly leadership meeting focuses on four areas

bull Performance Performance is covered via the existing incentive strategic and operational metrics

bull Action plans Documenting action plans in the Performance Management Software Suite versus verbalizing action plans establishes ownership and accountability At subsequent meetings management follows up on key action items or plans to determine whether or not the corrective action did take place and if yes did it have the desired results

bull Strategic direction The strategic direction of the various teams is captured as a springboard to strategic thinking discussions and planning So as not to lose sight of short- and long-term strategic planning this aspect of the business now is housed in the BIRT Scorecard completing the strategic planning of the ldquoHow are we going to get thererdquo and ldquoAre we there yetrdquo cycle This holistic approach helps minimize the chances of our scorecard becoming too focused on operational performance and keeps strategic planning dynamic and visible

The value of these metrics is not in the data but in the commentary The individual teamsrsquo strategic direction ldquometricsrdquo are subjective red = 1 yellow = 2 green = 3 The target = 3 Each metric includes a description of the specific strategic path we need to research or move forward on as well as what goal achievement it supports The ldquodatardquo ndash or color ndash is based on basic questions like What did you hope to achieve this month vs What did you actually achieve this month Were there any successes barriers obstacles In addition to accountability the entire SBU benefits from the sharing of information having meaningful discussion taking appropriate action and collaboration

bull Key initiatives The last critical component is the identification and alignment of key initiatives that

are necessary to support achievement of the various incentives strategic goals and direction and operational goals As with the strategic direction metrics the value is in the narrative with the color reflecting what was accomplished for the specific reporting period

5 Innovation Why should this solution be considered an Innovative Solution What makes it unique groundbreaking and superior What unintended results did you realize

Over time the Government Programs Performance Management framework evolved into an innovative solution The process drives performance and isnrsquot necessarily focused on ldquocolorrdquo Rather itrsquos about having the right people in the same room on a regular basis to drive meaningful discussion and to take appropriate action to improve performance

Outside of the standard processes it was the monthly review process that drove effectiveness revisions enhancements and restructuring of the meeting schedule agenda and format The Government Program financial reporting manager would meet with each director and general manager to review their scorecard for completeness as well as for performance from an operational perspective The State and Federal team directors would then meet with their respective management teams to review and discuss performance results in preparation for the joint Government Programs Leadership Meetings The audience included the Senior VP down to team managers key data analysts (data providers) and support function representatives Through trial and error management learned to maximize their time and effectiveness by concentrating on key metrics and topics rather than trying to review all metrics identify leading indicators versus only outcome results and include strategic thinking and initiatives Today the monthly leadership

meetings are much more productive and look at strategic and operational performance

As involvement and participation increased in the team meetings as well as in the leadership meetings it removed silos opened communications enabled the sharing of information and best practices and promoted teamwork across the SBU But most importantly it brought about an awareness and a sense of unity and commitment within the SBU to achieve their goals something that was lacking before

While it was not part of the initial scope management realized shortly after implementation that efficiencies could be gained by replacing an in-depth hard copy monthly report with BIRT-generated results Since the BIRT Scorecard contained the same data with supporting narrative ndash plus additional metrics with narrative ndash monthly performance was captured via a monthly report Book various Maps and BIRT-generated reports Elimination of the hard-copy report was an unintended way of encouraging a more active use of the Performance Management software by management to monitor performance thereby increasing user familiarity with the contents features functionality and navigation

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

Sustainability is achieved through a continuous process of revisiting the scorecard when there are organizational changes looking at the business direction shifts goal changes process changes etc To ensure that metrics are still relevant a filtering process is held with each director and general manager every six to eight months or as necessary During this exercise questions such as the following are asked

gt Performance Management Excellence Awards gt Performance Management Excellence Awards

[ Figure 132 CEOrsquos Book ]

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Vol 6 Issue 2 2009

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

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3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

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  1. Button 3
Page 13: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

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of model and some lean more appropriately to a commercial investment and a commercial tool A growing level of complexity often drives commercial interest but certain complex functionalities ndash including supporting web services or web services SQL or other examples of integration techniques ndash the Open Source model is more than capable of supporting on its own

The applications Actuate deploys are information applications When choosing the paths of how to proceed ndash with regards to choosing either the Open Source or commercial interest ndash there are typically four premises to consider in an information application

1 Is the report or the application able to consume and collect data from one or many sources whether itrsquos a single report or a complex application Typically when the data sources are simple and the data connections well understood either Open Source or commercial interests are appropriate With meta-data layers and extraction layers the commercial model tends to be more effective But if itrsquos an embedded project using POJOs or other Open Source or specialty connectors ndash unique connectors ndash that often keeps a project more suited for an Open Source deployment

2 How is it able to aggregate and transform that data into meaningful information Looking at aggregation the same premise holds true if therersquos simple aggregate functions or automatic cross tabs or even custom or reuseable business functions both the Open Source and commercial models are appropriate In terms of embedded Java functions those aggregations are appropriate in either case Itrsquos when entering into areas of security ndash of parameter-driven values dynamic-parameter collection cascading menus etc ndash that a commercial purchase tends to excel over the Open Source version

3 What are the presentation options or formats available to present that data When the presentationrsquos fairly simple both Open Source and commercial apply When

charting cross tabs and embedded graphics are the norm then the two are served both in Open Source or commercial interests When JavaScript is starting to be used as a customization or a dynamic-properties delivery vehicle both the Open Source and commercial models are effective although keeping this content embedded within an environment is probably more appropriate using Open Source Itrsquos only when introducing elements such as interactive viewing capability or the ability to manage an environment through a management console capability that the commercial option begins to edge out

4 Are we able to achieve the levels of scale that we need to get that information out to every user whorsquos interested in it When individual use is appropriate Open Source is a better fit When transient content is what a company is delivering thatrsquos usually a better fit with Open Source as well as is embedding To support a collaborative reporting effect or to support a variety of developers and users ndash especially users with different skills ndash the shift begins to move towards a commercial style of delivery When therersquos custom delivery required such as JavaScript API the commercial environment is also more appropriate

These are the capabilities of different deployment options for both the Open Source platform as well as the Actuate commercial platform geared towards allowing organizations to get the value that they most see fit within their environment or their application Typically for environments that have a heavy requirement for infrastructure thatrsquos what drives the commercial purchase whereas customization or individual interests typically drive Open Source

The key thing for any organization is to first decide what kind of reporting technology they need ndash whether it be Open Source or commercial ndash and then to look at their own needs And finally consider the BIRT environment as a vehicle that meets web reporting needs

For more information on BIRT visit actuatecom

A growing level of complexity often drives commercial interest but certain complex functionalities ndash including supporting web service or web service SQL or other examples of integration techniques ndash the Open Source model is more than capable of supporting on its own

ldquordquo

One of the benefits of Actuatersquos Business Intelligence Reporting Tools (BIRT) is that very capability for flexible functionality thatrsquos adjustable to usersrsquo needs Every component of the BIRT technology ndash whether in the Open Source or commercial versions ndash builds upon the components before it creating a robust and flexible system designed to meet each organizationrsquos unique Business Intelligence needs

Choose the Right Graphical ToolThe first step towards evolving organizational Business Intelligence is choosing the right graphical tool The Eclipse BIRT technology for one is a visual designer thatrsquos geared at report developers as well as JavaScript and Java developers and can create a wide range of reporting technologies and web reports BIRT builds content that is specifically intended for the web and uses techniques that are expected when building web pages and web content It doesnrsquot use a banded report writer design or development metaphor typical of many older report-authoring products including Crystal Reports or Jasper

BIRT is the third from-scratch product that Actuate has sponsored and developed and as such it takes into account more modern capabilities and techniques for developing web content In building BIRT Actuate has drawn from its extensive market knowledge borrowing best concepts from other products as well as from its own Reusability and the ability to include programmability within the environment have been traditional Actuate capabilities that have been included in BIRT but BIRT technology also uses de-facto standard programming capabilities such as embedding JavaScript and Java into the application rather than using a proprietary language

Open Source is the core reporting capability and value-added commercial products can be added to it More than 50 developers are employed by Actuate on the BIRT Open Source project similar to the number of developers Apache has applied to the Apache project Alongside these Open Source developers are Actuate developers working on the commercial product of BIRT

Open Source BI

Cost-Effectively Deploying

When deploying Open Source Business Intelligence technologies multi-layered functionality that can be added as needed serves to create a cost-effective way to build a solution specific to an organizationrsquos needs Each function acts as a building block as a company creates exactly the capabilities necessary for the job on hand without wasting money and resources on items that arenrsquot needed

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Another benefit of BIRT is the BIRT Exchange community Actuatersquos user forum which is far more robust and extensive with documentation and help information than has been found traditionally Nearly every forum post has an answer to it in some form which is not likely to be experienced with any other Open Source project or forum-based community Meanwhile the community itself is vast and growing rapidly Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate ndash where a developer may have downloaded 20 copies over its history ndash adds up to 350000 different users of BIRT technology That number is growing at roughly double the rate of the other two most popular Open Source projects

Add Value Through Features

Actuate BIRT technology has a range of features that will add value to a companyrsquos BI project

1 In addition to being a graphical report design tool BIRT takes into account the long-standing tradition of Actuate to support reuse libraries and reusability across the entire environment It is able to not only reuse BIRT objects and BIRT components ndash such as charts and tables ndash but also to incorporate and use JavaScript objects and Java libraries in the reports themselves This creates a rich experience for driving and building web-oriented reports

2 BIRT offers navigability While a user is in a graphical design tool they should be able to take advantage of some of the core capabilities that the technology offers such as a visual hyperlink builder that keeps information in context as well as the ability to create cross tabs dashboards and charting mechanisms that are active and navigable Inserting type of content ndash so that it is both consumable and scoped in context for the user ndash is important to the success of deployment Hyperlinking in context is one of the key elements to supporting Open Source deployments

3 The Eclipse BIRT environment supports a variety of graphical types or charting types including not only grids and tables but both static and dynamic images as well that can be linked back to databases or can support conditional formatting and a variety of conditions baked into the report BIRT is able to handle a large variety of chart types and styles allowing organizations to convey exactly what theyrsquore trying to deliver to their users Supporting rich charting is one of BIRTrsquos key core capabilities

4 The Open Source Eclipse engine can be embedded into or deployed from an application quickly within a JVM Users can add content generation or report generation functionality easily and quickly to their application by inserting it into their run time The BIRT engine itself is a key component in the Eclipse BIRT project It has a variety of extension points built into it which means itrsquos able to not only generate supported output types ndash such as HTML or Adobe PDF ndash but can also create custom emissions from a BIRT report such as an emitter for mobile content or an emitter for a particular report format of the userrsquos own perhaps to feed another application With a robust API structure within the Eclipse BIRT engine these are all possible

Build On Interactivity for a Richer Experience

Building onto that BIRT experience organizations can add more interactive and visual elements to create more appeal within their BI projects

Animated Flash Visuals Animated Flash visuals built into BIRT reports lend to a richer more enjoyable experience for end users They can take advantage of the navigation enhanced with the visual and animated appeal that Adobe Flash offers

The Actuate BIRT development tools include 266 Flash widgets This is one feature that differentiates BIRT Open Source with the BIRT commercial product Those who purchase the development tools from Actuate will immediately receive these Flash objects that can be deployed not only within Actuate BIRT reports but within Eclipse BIRT reports as well they are portable across both environments

Interactive Viewing Often users have a difficult time articulating their requirements to report authors That problem is alleviated when authors can deliver them an interactive viewing experience allowing the report to become changeable and adjustable by the user The user can select a particular column and can apply a filter to that column they can toggle back and forth between viewing perspectives rotate charts change the grouping of a report or add more visualization to it with something such as conditional formatting They could even navigate within the report using a joystick or deploy that report or portlet content anywhere they want And ultimately they could drag and drop and change ndash or add columns to the report directly ndash by manipulating the report as needed

This interactivity gives the end user the ability to enjoy more freedom with regards to how they use the report It also

addresses one of the biggest conundrums with regards to report delivery giving users a report provides them with content that makes them smarter and as they get smarter they take that information and they work it into their knowledge which in turn changes the questions that they ask of the report This means that what they need from a report changes over time Allowing users to modify reports themselves is a key goal in supporting BI processes because as users become smarter about what theyrsquore doing with their content they can help assist in defining what the next iterations of their web content might be

Choose the RIght Server to Store and Schedule Content

Actuate has spent the last 15 years developing the Actuate iServer It comes in two styles ndash iServer Enterprise and iServer Express ndash and offers a robust environment for creating managing and delivering BIRT report content to users on schedule on demand or on an ad-hoc basis directly

The iServer Express is a single-server deployment that is appropriate in scenarios where there is less active usage it supports a sequential batch generation capability and roughly 10 user connections per second as the users connect to the server It offers that scheduling and deployment capability at a very cost-effective price point while allowing organizations to secure their report content using the iServer repository to take advantage of some of the presentation layer capabilities that Actuate offers through its information console to present and manage that content on behalf of the users and ultimately to create a full reporting experience for users directly

Alternatively for those deploying a very large system ndash perhaps one that operates outside of the firewall in a traditional web information application ndash there is the iServer Enterprise The iServer Enterprise is massively scaleable but also very predictably scaleable as companies double the resources that they can apply to their environment they double the throughput and user numbers that theyrsquore able to support with the iServer It is also highly configurable in regards to how content is deployed and supports multi-tenet environments or multiple application environments In addition it can be componentized so that a presentation layer can be separated from a content creation layer or a business logic layer from a data management layer ndash including the meta-data layer itself ndash to help abstract and manage the queries driven

Determine Where Content Can Be Distributed

Actuate JavaScript API is a mechanism that allows the user to take a JavaScript library embed it into any HTML page and then from that JavaScript library securely access Actuate content from the iServer This particular capability allows the user to put either a report part ndash a reportlet ndash or an entire report directly into new locations This could be used as a user attraction vehicle it could be used as a dashboarding vehicle or it could be an integration point for systems that are written in NET rather than in the j2e environments that BIRT typically supports

Deliver Mash-Up Applications

Delivering mash-up applications using all of the functionalities listed above is simple in the BIRT technology and lets users themselves participate in the definition saving creation and management of their own dashboard displays and it allows them to watch exactly the KPIs that they care about

This is done through Actuatersquos Mashboard Customization to the Information Console which allows users to take any BIRT report content and to deploy it directly into a mash-up style environment where they can define exactly what pieces of content go into their application and what doesnrsquot These dashboards can also be roll-based so that particular pieces of content can be deployed to particular types of users directly then if they want to continue to customize that capability theyrsquore able to do so

Conclusion

Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques such as Flash and Ajax in a web-based design metaphor It is designed to evolve effectively over time and is meant to give organizations a choice for every type of user The first decision point of any organization is to recognize whether or not BIRT is the right reporting technology for the information application in question Once thatrsquos decided companies must choose the technologies they want to offer each type of user and then consider how they want to deploy those technologies directly

A wide variety of capabilities can be build into the BIRT environment ranging from Open Source to commercial Actuate products It is a flexible environment and is robust for delivering to users any type of information-driven web content

Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate adds up to 350000 different users of BIRT technology ldquo

rdquo Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques ldquo

rdquo

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The Challenge

Guiding a ship requires visibility into navigation operational performance and up-to-date information to make decisions This type of customer challenge drove ABS Nautical Systems

to incorporate Actuatersquos BIRT technology into its NS5 fleet management software

A leading software provider to the maritime industry ABS and its NS5 modular ERP system help customers manage principal operating expenses associated with vessels and offshore rigs ABS provided basic scheduled reporting and offered ad hoc reports in response to specific customer requests but customers demanded better functionality including the ability to easily extract and create both standard and custom reports

Producing reports to customersrsquo satisfaction took time as reporting was not central to ABS Nautical Systemsrsquo expertise Further it took valuable programmer time away from developing new features and functions for its core product This created the need for ABS to leverage a tool to provide highly-developed rich information application functionality increasing the power of its fleet management software while enabling its customers to access more flexible reporting tools

The Solution

With its own expertise in Java development and their existing reporting ABS searched for an Open Source reporting platformtool that they could leverage and seamlessly embed in their software ndash one that would deliver for ABS and their customers both immediately and for future expansion After considering Jaspersoft Actuate and Pentaho ABS selected Actuate and BIRT for their on-demand reporting solution

ldquoActuate has a clear roadmap and direction scalable platform financial stability and Open Source development platform The Actuate offering was an excellent fit because the technology

ABS Nautical Systems (NS) is one of the leading providers of fleet management software packages available to the

marine and offshore industries It offers a fully integrated modular approach to managing the principal operational expenses associated with a vessel or offshore rig ranging from maintenance and repair to regulatory requirements purchasing and inventory and crew management and payroll

SAFE AT SEAABS Nautical Systems A Case Study

ldquoBoth the technology roadmap and scaling are key It was an excellent fit for us actually ndash you had the right technology yoursquore Open Source based BIRT technology was key and you were the most helpful in helping us do the prototyperdquo

- Sandipan Bhattacharya ABS Nautical Systems

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used Open Source BIRT allowing us great flexibility in developing NS5 Actuate was most supportive in helping ABS NS do the prototype ndash both their Professional Services as well as the account teamrdquo states Sandipan Bhattacharya CTO for ABS NS

The new BIRT-based on-demand reporting tool within ABS NS5 is a web-based application that enables clients to quickly and easily generate custom reports from any NS5 module It handles reporting for the central elements of operational management ndash from regulatory requirements to payroll to planned maintenance programs But it takes NS5 beyond operational duties to consolidate data from across software modules to better monitor key performance indicators (KPIs) such as time to repair spare parts turnover and purchasing cycle times

The interactive information views that BIRT provides help fleet managers to achieve maximum efficiency empowering NS5 software users to get what they want in terms of the reports they need in the way they want them as each department or company may want to look at data in a different way Lastly that same data is more accurate because it comes as near real-time information at the time they need and can be benchmarked against how well they are performing to provide trends for evaluation

BenefitsResults

bull Speed time to market with new features by focusing on core competence in its software platform This allows ABS to focus development on its core product and improve customer satisfaction by rolling out and providing complete reporting modules This also helps decrease development expenses and support costs

bull Expand available market with completely new product lines enabling ABS to increase its client base to companies that didnrsquot know about them or had previously disregarded their offering The additional modules make the product more attractive to existing clients creating additional revenue sources for ABS

ldquoThe BIRT Open Source platform allows for a great deal of flexibility in the development stages Additionally the ease of integration into our OEM package was a great benefit Lastly the Actuate and BIRT offering has proved to be well suited to ABS Nautical Systemsrsquo needs and Actuatersquos roadmap shows what we can do in the futurerdquo states Bhattacharya

Self-serve customization drives flexibility and ease of creating reports BIRT empowers users to produce reports customized to their individual and departmental needs and preferences And as government reporting requirements change they can

Solution OverviewCompany Profile Integrated fleet management software for marine industries

Industry Software

Location Houston with offices worldwide

Challenges

bull Customer need for better more timely reports

bull Enable customers to self-serve for ad hoc needs and regulatory requirements

bull Focus on core software expertise and feature requests

Solution Integrate Actuatersquos Open Source-based BIRT reporting with ABSrsquo NS5 fleet management software

Business Benefits

bull Faster time to market broadened portfolio

bull Ease of integration development flexibility

bull Increased visibility into operations aids customer competitiveness efficiency

bull Users empowered to customize reports

Does your companyrsquos mission and vision statement place the customer at the center of your universe

Does it promise to maximize customer value and deliver the best customer experience possible If it does your mission and vision statement is surprisingly similar to nearly every other organization And much like them chances are your organization is struggling to make this vision a reality to actually reinvent itself as truly customer-centric

ldquoCustomer-centricrdquo has become the new buzz phrase thrown about at most executive planning sessions and has replaced ldquoinnovativerdquo as the new mandatory strategic language The truth is it takes a lot more to become customer-centric than changing the company vision ndash it requires a departure from years of tradition a clear look at who and what your organization is and a deeper understanding of what motivates your customers to buy from you or from your competitor Fortunately the cost to make this change is surprisingly low while the benefits and the returns can be shockingly high

Finding Your Customer

Customer-centric implies that the customer is central to the organization but this is too esoteric to have any real meaning An organization turns materials into a product or service which is then sold Everything the organization does must lead to this

event (with no sale after all therersquos no customer) This logic works for most people and most organizations and it logically follows that the focus should be upon the creation of the best possible product or service because this is what causes a prospect to become an actual customer

This logic fits nicely with traditional thinking It was popularized by Michael Porterrsquos value chain approach in the mid-80s The value chain is a string of critical processes that begins with raw materials or inputs and ends with a product or service delivered to a happy customer Thinking this way makes sense because it is easy to place the customer at the end of the process But this mind-set doesnrsquot just affect how executives structure the organization it weaves its way into every aspect of how the organization manages itself and how managers make decisions

For example the finance department performs the close process each month so that it can deliver financial information to managers with actual bottom-line responsibility These managers from executives to cost center managers are financersquos customers just as shareholders are when they deliver quarterly reports Once these reports are delivered finance goes back to the business of accounting and managing revenue and expense until the next month Engineers work to design new products that will keep them one step ahead of their competition Manufacturing produces goods to meet customer

respond more quickly adapting them by themselves instead of depending on ABS to supply reports

ldquoActuate empowers users to get exactly the reports they need the way they want them Empowerment is key as well as flexibility as each department or company may want to look at data in a different wayrdquo states Bhattacharya

Rich information drives efficiency through increased visibility and better insight into operations improving customer competitiveness With highly accurate real-time information on how well they are performing management can control both overall and specific costs of operating and maintaining their shipping fleets ldquoThey donrsquot have to wait hellip they can see all contributing factors day to day It helps improve efficiency at every level For the first time a shiprsquos captain can have insight into the operational performance of his ship while still at seardquo says Bhattacharya

Creating the Customer-Centric

OrganizationFinding Your Customer-Critical Path

By David F GiannettoCEO

The Telos Group

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orders or demand projections The sales department courts potential buyers so that they become actual customers Once they do so sales then returns to identify new targets and tries to transition them Manufacturing works to refill shelves Engineering continues developing products

Employees throughout the organization are focused upon delivering the product or service for which they are responsible The product attributes become the value proposition that will appeal to their customer regardless of whether or not this is an internal or external customer Employees are trained to think in terms of product development delivery and value The organization becomes even if it doesnrsquot know it product centric Believing that a mainstream management theory such as the value chain approach could not be wrong or outdated management is comfortable with this view of their world When they try to become customer-centric they do not know how

Making the Change

Consider for example the electricity powering the light by which you are reading this article It is a fairly simple product that was mainstreamed decades ago and except for new types of power generation it has remained essentially unchanged The traditional value chain for this industry is fairly straightforward Power is generated by a complex and often dangerous power plant and it is delivered to the customer via a complicated and often dangerous network The customer then consumes this power and must pay for it creating the

need for back-office operations such as accounting finance and customer service

Given the complexity of power generation and delivery operations the organization is staffed by a high percentage of engineers many with doctorate degrees and years of specialized training The generation and delivery assets themselves are maintained by highly-trained highly-specialized workers A large percentage of the management team also comes from this background and rose through the ranks of organizations identically structured Combined these employees represent over 75 percent of the organization

Collectively these employees create a culture that is consistent in almost every power utility in the world Their cultures respect academic achievement technical expertise and years of experience in the industry They typically believe in rigid structures inflexible procedures and consistency in design and execution They are truly product focused

Given the potential hazards it is easy to see why they behave the way they do But what happens when this type of organization has to compete in a more open market when transparency is increased or when the customer such as a municipality has a stronger voice or is under the growing influence of being green What happens when the power company must become truly customer-centric

It is nearly impossible for them to succeed Seventy-five percent of the organization has little to do with or has little understanding of the customer

Departing from Tradition

While this product focus is exaggerated within a power utility largely because of their technical nature these factors affect nearly every organization Employees who have great influence within the organization will not yield it to those who have less but who understand the customer better Funding is unlikely to shift from traditionally respected areas to those areas that most affect the customer

For a power utility this means that engineers who have often dedicated their entire lives to the study of their work must be considered equal to project managers and customer service agents most of who do not hold any degrees Money resources and staffing must focus on project management and call center technology not just on million- or billion-dollar assets There must be recognition that these areas equally affect the customer This new perspective must be executed by executives who have spent their entire careers adhering to the traditional values of the product-centric culture But this shift is what customer-centric really means truly understanding and meeting your customersrsquo needs It starts with the customer more specifically it starts with a prospect

Customer-Critical Path

This means that the traditional value chain must be rethought and renamed more appropriately to the customer-critical path A prospect travels this path on their journey to become a customer a customer travels this path toward the goal of becoming a happy customer This is the true value chain of the organization ndash a string of processes that become critical because they directly affect your customer regardless of the product service organizational chart academic degree or bias Find the customer-critical path and you can guide your customers through your organization in the way that is most meaningful to both them and you

But not all customer needs are the same even within an industry that has only one real product like a power utility The customer-critical path may start in several places meeting the needs of

several different types of customers ndash household customers that simply need power turned on or major projects that require significant project management and pre-planning Eventually these starting paths merge It will occur at the point at which all customers are happy From there they may take a different path

again some will terminate service or have new needs There is not one value chain there are many paths a customer might travel through your organization

This new approach offers significant value for organizations that adopt it It allows them to better understand their customers so that they can be more effectively segmented and targeted by products or services This drives the bottom line in several ways A stronger value proposition increases appeal thus driving revenue Better service and customer interaction improve the customer experience and increase customer loyalty driving customer lifetime value

The customer-critical path also becomes a vital decision-making tool for management It provides a clear and unbiased perspective on where resources should and should not be spent It defines the relative worth of projects assets and expenditures painting a clear picture of what the results will be if the customer-critical path is not

properly maintained

And if your mission and vision statement says you are customer-centric it makes your strategic plan more than simple semantics It makes it actionable setting your organization on a path towards true differentiation and market leadership Properly crafted the customer-critical path becomes a pleasant stroll through the park for your customers and it can also become the most profitable path for your organization

David F Giannetto is CEO of The Telos Group co-author of The Performance Power Grid The Proven Method to Create and Sustain Superior

Organizational Performance (J Wiley amp Sons 2006) and a professor in the Executive MBA program of Rutgers University

Mr Giannetto can be reached by email at dgiannettotelosconsultingcom

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I Introduction and Background

Who the NMDP is

The National Marrow Donor Programreg (NMDP) and Be The Match FoundationSM are non-profit organizations dedicated to creating an opportunity for all patients to receive the bone marrow or umbilical cord blood transplant they need when they need it Every year thousands of people of

all ages are diagnosed with leukemia and other life-threatening diseases Many of them will die unless they get a bone marrow or cord blood transplant from a matching donor Seventy percent of people do not have a matching donor in their family and depend on the Be The Match RegistrySM to find a match to save their life

The Beginning

When their 10-year-old daughter Laura was diagnosed with leukemia Robert Graves DVM and his wife Sherry were ready to do anything they could to save her They agreed to try a bone marrow transplant from an unrelated donor ndash the first ever for a leukemia patient Laura received her transplant in 1979 at the Fred Hutchinson Cancer Research Center The treatment gave her an extra year and a half of life

The National Bone Marrow

Donor Program

The Balanced ScorecardVision into

Action JourneyBy Howard Rohm

President amp CEO Balanced Scorecard Institute under the guidance of The National Marrow Donation

Programrsquos Michael Boo Chief Strategy Officerand John Rudrud Senior Analyst

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The experience inspired Dr Graves to create a national registry of volunteers willing to donate marrow His early efforts brought together other patient families and transplant doctors spurring a federal mandate that led to the creation of the National Marrow Donor Program NMDP began connecting patients with unrelated donors in 1987 with a registry of just 10000 volunteers

What the NMDP Does

The Be The Match Registry has grown to more than seven million donors and over 150000 cord blood units the largest and most racially and ethnically diverse registry of its kind in the world Medical advances are making marrow and umbilical cord blood transplants available to more patients all the time Since 1987 NMDP has arranged for more than 35000 transplants to give patients a second chance at life Today NMDP facilitates more than 4300 transplants a year

Planning for the Future

Many more patients still need help In order to meet the needs of all patients NMDP will need to facilitate 10000 transplants per year by 2015 That is more than double the number of transplants the organization facilitates today NMDP is working to meet this need but canrsquot do it alone Efforts are sustained by

bull A global network of more than 490 leading hospitals blood centers cord blood banks and laboratories

bull Agreements with donor centers cooperative donor registries and cord blood banks worldwide through which the program provides patients access to more than 12 million donors and 300000 cord blood units

bull Continued support from the US government which has entrusted the NMDP to operate the CW Bill Young Cell Transplantation Program the federal program supporting bone marrow and cord blood donation and transplantation

bull Partnerships with corporations service organizations student groups faith-based communities and other organizations

A new and different way of thinking about the NMDPrsquos long-term strategy was required in order to make sure that NMDP would be capable of delivering 10000 transplants per year in 2015 ldquoBusiness as usualrdquo would not get the organization where it needed to be NMDP needed to identify and

aggressively improve in strategic areas critical to the delivery of 10000 transplants

II The Balanced Scorecard Approach

Background

The strategic planning system that had been used at NMDP up to 2007 was a fairly well-developed planning process that tracked initiative performance under seven primary areas of strategic focus While this approach provided a measure of strategic planning for the organization it was too focused on activities and projects rather than on impacts

Early in 2007 NMDP leaders Gordon Bryan Chief Financial Officer and Michael Boo Chief Strategy Officer began developing strategic metrics designed to identify measure and communicate progress in strategic plan objective areas

Selection

As the senior management team evaluated options to integrate broader strategic metrics with the existing strategic business plan the Balanced Scorecard approach emerged as a leading candidate during the initial assessment of planning models because it

bullEncourages development of strategic themes and provides the ability to focus on areas where long-term continuous improvement is needed

bullPermits identification of cause-and-effect relationships between Strategic Objectives within each Theme

bull Facilitates communication of Strategic Objectives that can be portrayed on a strategy map that is easily understood by all employees and stakeholders and shows how the perspectives work together to achieve the mission

bull Assures that the organization focuses on Strategic Objectives and Measures from a CustomerStakeholder perspective and a PeopleKnowledgeTechnology perspective (Historically the organizationrsquos focus was skewed toward the Process and Financial perspectives)

bull Enables leadership to track Strategic Objective performance over the long term rather than tracking the status of supporting projects and initiatives

bull Creates a framework for prioritization of projects initiatives and funding opportunities based on contribution to and support of the Strategic Objectives

bull Allows organizational Strategic Objectives to be cascaded into Department Objectives thereby giving each employee

a more specific understanding of how his or her work impacts and contributes to the Strategic Objectives

bull Drives long-term continuous improvement as Strategic Measures improve over time

bull Facilitates a ldquolearning organizationrdquo where corrective actions are implemented in cases where Strategic or Department Objective Measures are not being met

The NMDP planning team looked at a number of planning models ndash including Balanced Scorecard Six Sigma Lean and TQM ndash and concluded that the Balanced Scorecard approach provided the most versatile and relevant framework for future growth and organizational development

III Scorecard Development ndash NMDP Officer Input

Early to mid 2007 NMDP began the Balanced Scorecard development effort with the help of consultants from the Balanced Scorecard Institute

A comprehensive review of the organizationrsquos strengths weaknesses opportunities and threats organizational pains organization enablers vision and mission was conducted over several days with NMDP officers and senior management These sessions produced a new Mission and Vision Statement and four Strategic Themes (rather than the original seven)

The former mission statement Extend and improve life through innovative cellular transplant therapies was changed to We save lives through cellular transplantation ndash science service and support

ldquoThis new mission statement captures and communicates more directly why we exist and it clearly articulates the three ways that we are able to save livesrdquo explained NMDP CEO Dr Jeffrey Chell

The Overarching Strategic Result in place of a vision statement was developed and shared with employees throughout the organization Meeting the need for 10000 transplants per year by 2015 The senior management team developed a longer more descriptive version of this statement but felt that the shorter version had more impact

ldquoWersquove found that the Overarching Strategic Result has been a great tool to get people thinking about how we will manage

to do more than double our current transplant volumes in a relatively short time ndash just five years from nowrdquo explained initiative sponsor Michael Boo ldquoThis has driven a lot of creative thinking around how to dramatically improve the efficiencies and cost effectiveness of many internal systems and delivery processesrdquo

The four Strategic themes that the NMDP officer group developed and agreed upon are

bull Global Access and Acceptance ndash Getting to Yes Overcome non-cell source barriers to transplant (eg no insurance no transportation no post-transplant support)

bull Deliver Excellent Stakeholder Experience Overcome Cell Source Barriers (making sure a cell source donation is available when itrsquos needed ndash adult or cord)

bull Research Pursue research to improve cell transplantation as a therapy

bull Culture of Excellence Keep up-to-date with talent structure and resources needed to continually improve transplant services

IV Scorecard Development ndash Senior Management

Throughout the spring and summer of 2007 four Theme Teams comprised of senior management met to develop

Theme Team strategy maps that included Theme Objectives by Perspective and proposed Measures for each Theme Objective These served as detailed roadmaps with specific objective areas identified ndash where NMDP needed to focus in order to improve them

The four Theme Team maps were subsequently

combined into an NMDP Strategy Map that included all relevant components from each theme This NMDP Strategy Map is comprised of 13 Strategic Objectives 46 Strategic Measures and seven Strategic Initiatives

Narratives were captured regarding the intent and ultimate end state for each Strategic Objective and detailed descriptions were created for measurement information including rational frequency owner and unit of measure

At this stage in the process the team named the Balanced Scorecard tool ldquoVision into Actionrdquo or ViA ndash NMDPrsquos strategic Performance Management tool On June 1 2007 the ViA Themes and NMDP Strategy Map details were presented to the board of directors by senior management and approved along with a plan to proceed to the next phase of department cascading

A ViA Communications Team was formed to communicate ViA progress to employees on the development of the new Mission Statement Vision Statement and the 13 Strategic Objectives This was done through a combination of pulse checks newsletters

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intranet messaging e-mails from the CEO leadership training all-staff meetings and promotional contests This was an extremely integral step in the ViA roll-out that provided transparency and generated excitement around the benefits of ViA

V ViA Department Cascading

All departments at the NMDP were scheduled for sessions to develop their department Objectives Measures and Initiatives These were facilitated by internal subject matter experts and included an initial two-day exercise to help the department identify where and how each department contributed to the NMDP Strategic Objectives Worksheets and other preparation material were provided to each participant and collected prior to the cascade session The pre-work information was used to expedite the affinity exercises at each session

These were followed up with sessions to finalize detailed measures with individual measure owners Department teams were comprised of five to 10 key members of each department

The department cascading efforts provided a number of primary benefits to the organization including

bull The articulation in easy-to-understand terms of how each department contributes to the overall success of the Strategic Objectives and ultimately the NMDP Mission

bull A tool to identify gaps or overlaps between departments that can also be a tool for departments to communicate with each other in terms of supporting initiatives

bull A tool for each department to prioritize initiatives and activities Also it provided a mechanism to support requests for funding new opportunities

bull A clear framework for corrective action where measures are not being successfully met

bull A common format and mechanism for reporting department performance to officers and senior management

bull A common format and mechanism for reporting and reviewing department performance with staff

bull Help with the development of individual job performance appraisal content ndash which should be designed to support Department Objectives

Department Cascading was complete in early 2009 There are over 200 separate department measures that are tracked each quarter

VI NMDP ViA Today

NMDP has established a department Champions Council Members of the Council are becoming experts at using the automated ViA software Today this is being used at department staff meetings to facilitate discussion around corrective action for underperforming or unacceptable Department Measures Departments use the department Strategy Maps to guide staff meeting discussions on performance measures and corrective action plans

ldquoAll business cases or requests for funding must be submitted with clear tangible descriptions of how the effort will impact ViA Strategic Objectivesrdquo explained Boo ldquoOnce all business cases have been submitted to the officer group for final approval they are prioritized in order of their impact on ViA Strategic Objectivesrdquo

All strategic and department measures are required to be reported into the ViA system each quarter Each is color coded based on an officer-approved target matrix Each measure owner is required to provide comments regarding the measure performance for the quarter and discuss how he or she expects the measure to end the fiscal year This information is shared with senior management for review and follow-up with measure owners ifwhen necessary

Senior management uses the color-coded NMDP Strategic Map as a basis for discussing quarterly performance and identifying

Strategic Objective areas that may need attention corrective action andor more resources NMDP tries to focus not only on corrective action items but also highlight success stories where outstanding performance has been reported

All employees will soon have access to the web-based ViA application to provide as much transparency and visibility as possible in order to become a truly strategy-focused organization

ldquoVision into Action has been successful within the organization to a great extent because of the consistent support and guidance provided by NMDP leadership including our CEO Dr Jeffrey Chell my fellow Officers and the Board of Directorsrdquo said Boo

Howard Rohm President and CEO of the Balanced Scorecard Institute is a Performance Management trainer consultant and technologist with over 40 years experience Mr Rohm has helped dozens of organizations worldwide build Balanced Scorecard and other performance planning and management systems

48

Pe

rform

Mag

azine

Info

rmatio

n in

Actio

n

A community for BIRT users and developers sponsored by Actuate

A Report Writing Portal lets your end users browse reports modify them and even develop

new ones You can set one up in three steps when you use AJAX-based BIRT technology

Because the end user tools to modify and create reports are AJAX-based therersquos no desktop

software to install Users get the reports they need quicker while the burden on development

resources to create new reports is reduced

BIRT Exchange is a community site that offers the broadest collection of resources for the Eclipse BIRT (Business Intelligence

and Reporting Tools) project and for integrating spreadsheets with Java The site is sponsored by Actuate a co-leader of the BIRT project

Sponsored by

See a Demo

at Booth

602

For More Information

Contact us by phone at 1-800-884-8665

1-913-851-5300 from outside of the United States

wwwbirt-exchangecom wwwactuatecom

40

Perform M

agazine Information in Action

41

Vol 6 Issue 2 2009

JCIrsquos previous approach of one-off negotiating as well as its spirit of continuous improvement and customer focus meant that it had only one-off measures in every location The company for example had 127 variations of the measure lsquomaintenance managementrsquo Many were very similar but since they were not exactly the same they could not be compared effectively Inefficiency at gathering and maintaining data at different locations across the globe made the task difficult as well Data was collected any way possible thrown into a cell or a Power Point slide and handed in at the end of the month It was highly inefficient extremely customized at every location and did not allow any ability to benchmark compare or look at best practices These concerns and requirements drove JCI on its scorecarding journey

The Solution

In initiating its scorecarding solution JCI first had to establish the right measures Business leaders were chosen for all of the scorecard categories and for each of them a business owner was selected for each region these business leaders and owners were responsible for defining the standards and measures Data collection systems in some cases proved difficult there wasnrsquot always centralized information available ndash in some cases data needed to be gathered right down at the account level This meant that the process of data collection and identifying measures was a significant job To get started though JCIrsquos web programmers were able to put up some scorecards quickly to allow the company to start architecting measures this allowed business leaders across the globe to start identifying their measures and to put the processes in place regionally to collect information

Before committing to a technology JCI wanted to know 100 percent of their business requirements and this was the point of their web-based scorecard To assist in this endeavor Actuate ndash prior to selection ndash let the company test drive their product The JCI team went through and looked at every single screen determining where they had to configure the tool and for every single screen they also made what they called a lsquoblueprintrsquo creating an Excel template with fields to correspond with every field on each screen It was incredibly detailed work but they wanted to ensure no mistakes were made and that the business requirements were defined To accomplish this there was an extreme amount of detailed coordination globally with twice-weekly meetings for the worldwide team in charge of the initiative A byproduct of the process was that the team learned to use the Actuate BIRT Performance Scorecard and basically built all of the blueprints for the project design

JCIrsquos audience for the project upon kick off were the 300 external customers that would have access to this information Customers previous to this were getting their information via Excel and PowerPoint In addition to these external customers was the population of approximately 1000 internal users within JCI itself These included account leaders and functional leaders including those from HR Finance Safety etc

Three primary functions of the project were

1 To replace the PowerPoint slides used in global and regional monthly internal operational reviews

2 To very quickly be able to become best in class JCI wanted everyone who had an account to be able to see where they sat compared to their peers This provided individuals ndash when faced with a problem ndash the ability to quickly identify and contact others who had solved the same issue

3 To standardize customer faith in contractually required performance measures This was a key goal of the company which felt that if they were going to benchmark and compare they needed to bring in the best practices learned at one location to their work at other locations

These three primary functions were heavily loaded in JCIrsquos rating system as the company set out to choose the right software for their scorecarding project It was also important that the software be intuitive as there was no time for hundreds of hours of global-wide training The software had to be rapid and easily configurable with limited IT assistance As JCI is a very large organization with a lot of systems in place the team in charge also wanted the software to be easily adjustable to the companyrsquos rapidly changing business they didnrsquot want to have to get into queue for IT every time a change had to be introduced or a new customer added

JCI Chooses ActuateFour vendors were evaluated for JCIrsquos scorecarding project with a global team in place to provide a systematic discussion of the defined business process and requirements The product chosen was the BIRT Performance Scorecard JCI had 30 days of Actuate Professional Services and planned for monthly micro improvements and quarterly macro improvements

Upon purchasing the BIRT Scorecard in January 2007 using the blueprints theyrsquod established already the company wrote their business processes They were able to go live in 90 days helped by the homework they did with the blueprints the web scorecard and the data collection processes It was an incredibly smooth implementation overall

The Results

Whereas JCI originally started out with a model of one-off negotiations with customer measures the scorecarding project has led to approximately 70 percent agreement on JCI standard metrics The company does a customer satisfaction survey both annually and quarterly and aims to demonstrate evidence towards continual improvement

Since implementation of the project the company has also been solving its data integrity issues Previously two regions might have been using the same words but not the same data collection methods ndash this made it impossible to introduce benchmarking and comparison between areas Now those problems are being solved and benchmarking and comparison are possible to the benefit of both JCI as it strives for best-in-class status and its customers

By David F GiannettoCEOThe Telos Group

Johnson Controls Incorporated (JCI) is a $38 billion company with a total of 140000 employees working out of more than 1300 locations in 125 countries worldwide Headquartered in Milwaukee Wisconsin the company provides a range of services including

real-estate portfolio management property management facility management and design and construction services

To initiate its scorecarding project JCI began by creating five categories of measurement Business Performance (this includes all financial measures) Service Delivery Customer Satisfaction Safety and People While the other four categories may be typical to most organizations the Service Delivery category was designed to take JCIrsquos measurements down to the client-site level which includes over 300 locations globally where the company has contracts In some cases there might be one staff member assigned to manage a single building while other times a staff member has a whole portfolio they maintain Measuring performance at all of these locations and levels proved a complex undertaking

Strategic Initiatives

Like all service providers JCI has to demonstrate that they add value Scorecarding allows them to do this both internally

and externally using data-driven results Since JCI has always been very much a data-driven organization anyway with a manufacturing background this was a natural fit for the corporation

JCIrsquos organization-wide motto is to be as good everywhere as they are somewhere Theyrsquove found that in any one account they may excel in several areas but perhaps not in all areas elsewhere though on another account someone else might have the skills needed to fill in those gaps The companyrsquos goal was to share information and communicate it between different locations across the globe allowing the company as a whole to get better faster and to benefit from the skills and strengths of its individual members Scorecarding was introduced as a way to help share this information and to introduce benchmarking within the company

The Requirements

To get started on their scorecarding initiative JCI examined each of their US contracts What they found was that there were no standards between clients and therefore no ability to benchmark Customers though wanted the ability to find out how they stood in relation to other customers This was impossible under the circumstances

Global Operational Excellence and a Performance Scorecard System A Case Study of

Johnson Controls Incorporated

42

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43

Vol 6 Issue 2 2009

Out of Touch With Crucial Data

Previously when Helzbergrsquos divisional and regional vice presidents went on the road access to their key performance metrics was restricted Without a laptop and a WiFi or hotel network connection to the internet they were ldquoflying blindrdquo according to Greg Backhus Helzbergrsquos Director of Data Warehouse and Decision Support Systems As a result they did a lot of faxing it was the only way they could get the current data that they needed in order to

About Webalo

Webalo technology transforms enterprise applications and data to make them compatible with mobile

devices This eliminates the need for traditional custom programming reducing the deployment of mobile applications from weeks or months to in most cases less than a day The resulting ldquoanywhere anytime on-demandrdquo availability of enterprise data on handheld devices turns such devices into viable alternatives to desktop laptop and palmtop computer hardware and lets mobile employees work more productively ndash on the spot ndash to solve problems answer questions monitor operations close sales and make informed decisions

The Webalo Mobile Dashboard Service ndash available in both internet-based and enterprise intranet-based implementations ndash lets non-IT business administrators securely specify the content of mobile-accessible information and the companion Webalo Proxy Server configures it in seconds to conform to the native user interface of any BlackBerry Windows Mobile Pocket PC Palm Symbian or Java-enabled smartphone

CLARITY CUT AND CARATSHow Helzberg Diamonds Made Sales Data Clearer Eliminated

Delays and Lightened the Load for its Divisional Executives

A diamond may be forever but a lot has changed in how theyrsquove been marketed and sold during Helzberg Diamondsrsquo nine decades in business A single store has expanded to nearly 300 locations from coast to coast and border to border Sales can also be made online now And information about every sale can be accessed in an instance through the companyrsquos enterprise systems

bull Compare actual sales to their goals and plans

bull Determine transaction counts for total dollar volume and average sales value

bull Break down sales by product category

bull Monitor attachment rates for products and services related to the main product sale

For example onsite at individual stores it was difficult to gauge how an active price-reduction sale was affecting unit and dollar

volumes unless there happened to be a coffee shop next door with a WiFi connection that would let Helzbergrsquos executives access the enterprise system

The Three Cs of Information Access

The three Cs of diamond grading ndash clarity cut and carats (or weight) ndash turned out to be applicable to data access as well But it took a transition to handheld devices and to the Webalo Mobile Dashboard to achieve it

Though laptop computers had gotten lighter and lighter over the years they were still considerably heavier than the Pocket PC-based smartphones that Helzbergrsquos executives used Since they were carrying those handhelds in addition to their laptops the VPs were open to the idea of being able to

bull Access sales metrics on their handhelds

bull Have data available on-demand from any location with a wireless signal

bull Navigate quickly to the figures they needed

bull Get updates to their metrics automatically

bull Review the information offline

It was the only time that carrying less weight ndash or carats ndash added more value Using a simple step-by-step wizard Helzbergrsquos support staff was able to configure their enterprise reports in a matter of hours They then assigned access privileges to each executive to control who could see what information and uploaded the file to the Webalo server That satisfied how data was ldquocutrdquo

For each mobile user regardless of the brand and model of smartphone they used the Webalo Mobile Dashboard conformed the information to the devicesrsquo user interface The application worked and looked exactly like any other application developed specifically for their mobile devices the on-screen text was easy to read and navigation used the same menu structure That meant there was no learning curve to delay user acceptance and productivity Clarity was essential and the Mobile Dashboard delivered it right down to the ability to bookmark commonly-referred-to displays for instant reference enhancing on-the-spot productivity even more

Speed and Simplicity

Productivity was also improved on the IT side Without the need for custom programming to conform the information to each smartphone brand and model deployment was reduced from months to hours

Since adopting the Webalo Mobile Dashboard Backhus says ldquoThe Divisional VPs find it invaluable They get more done because they donrsquot have the delays they used to haverdquo Decisions that used to have to wait for current data are now made right away relying on the right data presented in the right format

44

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45

Vol 6 Issue 2 2009

Sustainable practice has graduated from being market hype

to becoming a strategic initiative important for driving a successful enterprise It not only reduces a companyrsquos impact on the environment but can help organizations achieve a competitive advantage to build their brand impact top and bottom line and improve customer acquisition satisfaction and retention

Creating a road map towards sustainable management can require an entire shift in corporate thinking one that involves searching for buy-in at all levels establishing useful metrics and introducing practices that get beyond the green hype The end result though is not just a greener organization but also one with a more prosperous future

Why Sustainability

In August 2008 a survey undertaken by CIO Insight examined green practices in business focusing on the reasons why CIOs introduce sustainability efforts into their organizations The number one reason why organizations went green the study found was that the people within those companies sincerely had a concern for the environment A total of 74 percent of respondents answered that way 32 percent of which listed it as their most influential driver

Other influential drivers named in the survey included

Financial Drivers Companies found sustainability to be a way of cutting costs If they could cut energy costs not only would that help the environment but it would also help create cost savings The second most popular answer in the CIO Insight study financial impacts are key to implementing sustainability in most organizations Examples of financial impacts possible from sustainability were presented at CFO

2 The CFO Green

Conference which took place in May 2008

bull Dupont reduced its CO2 emissions by 70 percent saving the company $3 billion

bull FedEx redesigned its delivery trucks making them more aerodynamic This reduced the amount of particulate pollutants nitrogen and carbon the trucks put into the atmosphere and it also reduced the companyrsquos fuel costs exceptionally

Customer Image In the CIO Insight survey the third motive listed by CIOs for introducing sustainability ndash at 64 percent ndash was company image Consumers are becoming more and more aware of whether companies or organizations are living up to sustainability ideals They will notice if a company image or brand value reflects this concern for the environment Meaningful sustainability efforts can help gain customer approval as in the following case

bull Wal-Mart and Procter amp Gamble together agreed to sell liquid laundry detergent only in concentrated form This saved shelf space for Wal-Mart reduced water use by 400 million gallons for Procter amp Gamble and eliminated 45 million pounds of plastic waste

Regulatory Requirements The surveyrsquos fourth most popular reply ndash at only 25 percent ndash were current or potential regulations including the cap and trade systems being implemented which will require companies to buy carbon and sell carbon credits

Shareholder Pressure Finally at fifth in the CIO Insight survey ndash with 14 percent of responses ndash was shareholder or public pressure pressure building from shareholders to put forth sustainability efforts Pressure at this level is often mixed though as shareholders are also likely to express a desire that they donrsquot want shares to decline in value The general message may be that it is fine to introduce sustainability measures only as long as there is no risk that they will hurt the company

A Road Map Towards Sustainability

Step 1 Identify What Drives Your Organization

The first step in the road map towards sustainability is identifying key drivers Some drivers vary from one organization to another while others seem to drive any organization regardless of the industry Drivers incude

Internal drivers

bull Cost cuttings and savings

bull Employees including both the satisfaction of current employees as well as the recruitment and retention of future employees

bull Investment

External Drivers

bull Stakeholders including both those within the company ndash the employees discussed above ndash as well as stakeholders outside of the company

bull Brand awareness because consumers are becoming increasingly aware of the choices that are available to them and are making choices based on a companyrsquos green initiatives

Future drivers

bull Tax incentives

bull The recruitment and retention of future customers

Step 2 Select Your Metrics

In general terms sustainability metrics will fall into one of four major categories those that affect the climate those that affect the oceans those that affect human health and those that affect common issues like the land the water the wildlife etc

Within those large categories are smaller areas of interest that companies must examine to introduce organization-wide sustainability management carbon monoxide use energy consumption water consumption and fuel consumption are prime examples

Carbon Monoxide Use Many of the questions companies are asking themselves in regards to carbon monoxide use include

A Road Map of Key

Sustainability Metrics

That Impact Bottom

Line

46

Perform M

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47

Vol 6 Issue 2 2009

bull How much carbon monoxide do we produce

bull Which processes in our overall manufacturing or delivery use produce the most emissions

bull Can we determine the indirect emissions For example leave a computer plugged in and itrsquos still on the grid creating an indirect carbon dioxide emitter How can we measure that

bull Whatrsquos our cost Do we have metrics that tell us what our CO2 emissions cost us

bull Can we predict into the future If we continue on this path without doing anything where will we be next month Next quarter Next year

Some examples of metrics related to carbon monoxide use include carbon dioxide emissions per employee (similar to revenue per employee) carbon footprint metrics and transportation distances

Energy Consumption Areas of interest related to corporate energy consumption may include the following

bull How much do we consume From what sources

bull Are we on the grid Are we using solar power or wind power or another alternative power

bull How much is used by our data center How do we make the data center greener

bull Where can we reduce consumption

Companies today are reducing energy consumption in a variety of ways by introducing energy audits and looking at energy-saving appliances and also through energy incentive programs for employees within which companies can incentivize and introduce bonus plans

Water Consumption An examination of a companyrsquos water consumption may include some of the following queries

bull How much water do we currently use and where

bull Where in our processes do we use the most water

bull Can we predict how much wersquore going to use in the future

Some of the examples of metrics that companies introduce in terms of water consumption include improved water quality how much impact low-flow or low-volume toilets have on water consumption and how much water is or can be recycled

Fuel Consumption Questions to consider in relation to fuel consumption include

bull How much fuel do we use

bull Where are the inefficiencies

bull Whatrsquos being predicted for fuel usage in the future

bull Can we analyze our logistics so that we can determine how to reduce our fuel consumption For example where are our trucks traveling How are they traveling What kinds of loads are they carrying

Step 3 Recognize Challenges

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly As such easier ways to enhance communication and to increase visibility need to be introduced both inside and outside of an organization

There are also constantly evolving requirements measures and standards of success With everything so new companies are challenged to find ways to compare their sustainability efforts with other organizations The biggest challenge in implementing these processes or attracting metrics may be that they require an entire shift in thinking Additional challenges that exist in the implementation of a sustainability model include

1 Financial concerns Companies must truly see potential for returns on investment or these initiatives can become non-starters or stall

2 Lack of regulatory motivation While not as common as it once was certain organizations arenrsquot motivated to introduce sustainability until government regulations are in place

3 Lack of a formal strategy for sustainability Without a formal strategy it is difficult for companies to determine where they need to go

4 Determining appropriate metrics Companies must choose metrics that are useful demonstrate impact and say something about their own corporate environment

5 Calculating metrics Standard algorithms and calculations exist to calculate metrics but companies must find the appropriate ones and use them

6 Finding quality data to plug into those calculations As in any Business Intelligence project if the quality of the data is questionable then so are the sustainability metrics themselves

7 Determining the scope of the sustainability project The scope is critical Narrow it down to something achievable feasible and useful

Step 4 Learn from Best Practices

What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde

bull Assign an executive champion Without an executive champion to drive the project initiatives are more likely to lack a holistic view and a clear vision for an implementation strategy they may take longer to implement and theyrsquore less likely to yield the required results To provide motivation consider linking the championrsquos salary directly to sustainability savings or to the increased revenues that result from sustainability efforts

bull Implement internal training and education Educate employees on what to expect and what is expected from them

bull Improve communication Communicate both to employees and to stakeholders outside of the organization

bull Start to think about alternative energy management and control strategies

bull Engage the use of technology and services For companies not sure where to begin a sustainability consultant can assist with program selection as can vendors such as Actuate which has a sustainability management solution in place

Step 5 Get Started

Understand that sustainability development is a business opportunity Donrsquot look at it solely as environmental although that is also important Itrsquos an opportunity for companies to introduce more cost-effective processes and procedures and to become more cost effective in their vehicle fleet manufacturing delivery etc

bull Create globally consistent metrics and goals Large agencies have to make sure that the entire group is on board and that they have consistent metrics and consistent goals across the enterprise

bull Find the value and drive the action What is the value of monitoring these sustainability areas and whatrsquos the course of action if you see that theyrsquore going off kilter or are not tracking as expected

bull Start small Initiatives such as these can become incredibly complex very quickly Start small and build in the complexity with each ensuing project

bull Get buy in People need to understand what the metrics are why theyrsquore there and what they mean to each individualrsquos situation (as reflected in individual bonus plans perhaps) Measure using industry-accepted methodologies and industry-accepted protocols continually improve metrics through optimization and forecasting and constantly optimize metrics and forecast into the future

bull As much as possible accurately report to everybody environmental performance Let employees shareholders customers and regulators know If data is questionable fix it get quality processes in place and then run the metrics

bull Determine environmental impact Has waste been reduced Has resource utilization been reduced Has the company improved environmental factors

Also consider using an Open Source vendor The Open Source community is beginning to develop sustainability metrics and Open Source reduces the costs of developing metrics while software costs for the project are reduced as well

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly ldquo

rdquo What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde ldquo

rdquo

48

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49

Vol 6 Issue 2 2009

Step 6 Move from Green Hype to Sustainable Action

A successful sustainability initiative involves identifying metrics that will translate into cost savings and benefits while avoiding metrics that are not likely to yield required results To accomplish this start small start with a small department within the organization and then repeat this continuing to repeat it throughout the enterprise

bull Start with basic conservation Change behavior reduce consumption and in the process increase investment

bull Start reusing Improve productivity improve efficiency and create less waste

bull When this translates into cost savings re-invest Grow make larger improvements and increase involvement

Projects that make good starting points

bull Measure carbon dioxide emissions throughout a value chain or product lifespan Look for potential improvements

bull Ensure regulatory compliance By knowing what the regulations are companies can determine what metrics need to be in place

bull Identify ways to promote and profit from more environmentally-respectful goods and services Companies can promote environmentally-respectful goods and services while also using sustainability to help the company

Monitor the effects of each project to determine which strategies have the most impact both physically in terms of

the environment and financially in terms of revenues and cost savings Publicize how metrics are tracking over time

Actuate for Sustainability Management

Actuate for Sustainability Management is a solution by Actuate that integrates highly interactive visually rich dashboards There are pre-built sustainability scorecards strategy maps and over 100 pre-built metrics across the economic social and environmental aspects of sustainability

The Actuate BIRT Performance Scorecard supports the metrics defined including

bull Reducing an organizationrsquos environmental footprint

bull Building green facilities and buildings

bull Compliance and reporting

bull Manufacturing

bull Community and engagement

bull Human development including employee well-being and satisfaction

Actuate for Sustainability Management provides collaboration across regulators consumers and non-governmental organizations Dashboards and scorecards come integrated with reporting so as to improve reporting to stakeholders both outside and inside of an organization All of the products are built on Actuatersquos dependable cost-effective and scaleable platform

Performance Management solutions help organizations understand act on and influence business decisions processes and measures of business success The 2009 Actuate Performance Management Excellence Awards will honor customer success stories in four key areas Over the next several issues Perform Magazine will highlight some of the entries in these categories

Category 1 Go Green

Each year the concept of environmental responsibility has implications for both the private and public sector specifically with regards to how each measures the performance of their operations For organizations using the Actuate BIRT Performance Scorecard to measure the progress of organizational Green initiatives how have they responded to the challenge and how do they use the BIRT Performance Scorecard to ensure they stay on track

Category 2 The Perfect Slice

Successful Performance Management comes in all sizes Some initiatives are enterprise-wide while others are focused around specific business units or functions yet still encompass a holistic approach to Performance Management by looking beyond financial indicators to a more balanced set of indicators This category includes organizations deploying the Actuate BIRT Performance Scorecard with a focus on improving the performance of individual business units or functions and includes the measurement of people and processes

Category 3 Big Bang

Carefully executed Performance Management initiatives begin with a measured approach to the initial implementation and quickly expand to other parts of the organization aligning business units to strategy at each step This category is open to Actuate customers who initially implemented the Actuate BIRT Performance Scorecard to a limited user community and through careful change management and planning expanded the use of the BIRT Performance Scorecard throughout the organization

Category 4 Super Size

Award-winning enterprises achieve breakthrough results in the financial customer operational and people perspectives of their business and leverage internal champions across the organization to ensure ongoing and sustainable success The key to achieving these results lies in total visibility of all business units aligned to strategy This category is open to any Actuate customer with a fully deployed enterprise-wide Actuate BIRT Performance Scorecard implementation

Actuate Performance Management Excellence Awards2009

50

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Vol 6 Issue 2 2009

HealthNow New York Inc headquartered in Buffalo is one of New York Statersquos leading healthcare companies doing business as BlueCross BlueShield of Western New York BlueShield of Northeastern New York HealthNow in the Central New York region and Brokerage Concepts Inc in Pennsylvania

Improving the health of people and communities are HealthNowrsquos corporate priorities and for more than 70 years the company has been a proactive partner in health working to improve the quality of care and the quality of life for everyone it serves In 2008 HealthNow provided access to care to more than 820000 members and in 2008 company revenues grew to $227 billion

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution and describe what you were trying to achieve as a group function or department

A few years ago HealthNow New York Inc determined that the key to its continued success would be its ability to differentiate itself from other healthcare plans in ways that could not be readily duplicated or copied by their competitors In an increasingly crowded marketplace to get the attention of new customers and retain existing ones HealthNow needed to set itself apart from others

This lasting competitive advantage needed to come from an organizational culture that was dedicated to a relentless focus on meeting customersrsquo needs It needed to be highly responsive supportive flexible and nimble particularly as the healthcare marketplace continues to change with more responsibility placed upon its customers

To that end a new business model was implemented to provide the framework for customer focus Under the new structure the company was divided into four strategic business units (SBUs) each responsible for financial contribution customer satisfaction medical utilization and market share of a specific book of business

Each SBU includes its own set of functions including sales account and broker management product configuration customer intelligence pricing enrollment and billing customer service medical management and HR support Each business unit is led by an executive who is fully accountable for the unit operations and for bottom-line performance of the entire business unit Each SBU is supported by various corporate support functions (Actuarial IT Legal etc)

Implementation of the new business model began with a reorganization of the senior management structure The senior management of each SBU has specific incentive goals as well as strategic goals aligned with the corporate incentive Those strategic goals then drill down to ldquoteamrdquo incentives and to a blend of strategic and operational goals

This was a completely new way of looking at our business It was a blank slate requiring new processes and new methodology as well as an examination of existing metrics and processes to determine what added value and where the strengths weaknesses opportunities and gaps were

Under this new structure the Government Programs State and Federal products SBU ndash which historically had some inefficient end-to-end processes lacked internal controls and had minimal oversight of financial performance ndash was able to set a foundation and develop a growth strategy In order to achieve this mission and to align track monitor improve and communicate performance the Senior Vice President of the Government Programs SBU elected to utilize a Performance Management framework via the Actuate BIRT Performance Scorecard

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

As a point of reference the Government Programs SBU is comprised of a State Government Programs team a Federal Government Programs team an Operations team and a Sales team The Performance Management design team was comprised of the Actuate system administratorfacilitator the Government Program financial reporting manager and two SBU data analysts Input from the various teamsrsquo management staff was gathered as the design got more granular

Discussions around the design of the Government Programs scorecard began with two basic questions

1 What are the handful (ideally six to eight) of key performance indicators that are necessary to run and manage your business and to indicate that yoursquore on the right path to achieving your goals

Defining the key performance indicators was a challenge that required the Actuate system administrator in a facilitative role to get intimately involved in order to keep the discussions focused and high level and to limit scope creep The incentive goals were clearly defined at the corporate and SBU level however the tough question was how should they drill down in the BIRT Performance Scorecard The facilitator posed the following questions to the other members of the design team

bull How do you usually look at your business

bull How are the primary source documents that capture this information structured

bull What other ways do you look at your business

Taking the answers to these questions a step further the facilitator asked the next question Is the drill-down structure the same for the core strategic or team metrics The answer was yes By taking this approach we were provided with consistency in how the teams look at their business and the performance of their core indicators

Once the incentive and strategic goals were identified more leading and lagging operational measures were defined such as

bull Call centers

bull Accuracy

bull Quality

bull Sales Performance

2 Who is your audience

Through the entire measure selection and definition process the design team was constantly reminded to keep a second question ndash who is your audience ndash in mind This helped keep the focus on the critical few and keep the number of metrics down to a manageable amount Links to supporting documentation were created to provide easy access to the granular data without burdening the scorecardrsquos objective

The audience in this case was the SBUrsquos Senior Vice President followed by the State Director Federal Director Operations Director and Sales General Manager It then cascades down to each directorrsquos management team and the data providers

In order to provide a complete and consistent picture of State and Federal performance for senior management where

gt Performance Management Excellence Awards

HealthNow New YorkCategory 2 Entry The Perfect Slice

gt Performance Management Excellence Awards

[ Figure 131 Homepage Map ]

52

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Vol 6 Issue 2 2009

possible the same or comparable measures were created for each team For example when looking at the various call center metrics ndash even if the definitions and targets slightly differed ndash if one team was consistently exceeding or meeting their target it sparked group discussion around best practices processes staffing and target definition

Utilization of Maps continues to play a major role in communicating performance Again focusing on our audience there is a Map at the Senior VP level which then links to a high-level Map for the State director and staff and for the Federal director and staff The one-page snapshot allows management to easily view performance then to drill down to specifics via additional detailed Maps or Books Because the audience embraces the Maps concept a ldquoWhere is itrdquo Map containing all Maps and Books by SBU was created Itrsquos a quick and easy reference tool

3 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

Quantitative results are achieved through the promotion of visibility and awareness The Return on Investment may not fit a conventional definition but can be measurable and accomplished by challenging the data targets and accompanying commentaryaction plan narrative to drive performance improvement Are the targets realistic yet aggressive Are action plans being documented and carried out Are the actions discussions and decisions leading to improved performance and processes

Government Programsrsquo membership is measured and monitored in various ways via the BIRT Scorecard and other sources For example Federal membership is measured by product then by plan It is also measured by market then by product then by plan By creatively visualizing performance in multiple ways via a Map those same data results can sometimes become very obvious telling a different story that may not be obvious via standard reporting methods It may clearly illustrate that a specific product in a specific market is continuously under-performing for example Fact-based decisions can then be made as to whether or not to continue with this product in this market or it may initiate discussions as to how to grow and retain profitable membership for this product in this market

Another more recent example is an initiative to track claims-review savings By reviewing claims via various processes what savings can be recouped or realized What specific areas are State and Federal teams focusing on that can contribute to overall savings for the SBU Again where applicable there should be consistency in the metrics across

teams Placeholders are included to promote visibility to keep them in the forefront even though the data or processes may not be in place yet But by capturing results on one page via a Map it bridges potential gaps between the teams promoting awareness and synergy across the SBU

4 Qualitative results What ldquosoftrdquo or intangible benefits has the group department or organization received as a result of this solution

A major benefit of the scorecard framework for the Government Programs SBU has been the identification and alignment of roles responsibilities and accountability

The SBUrsquos Senior VP monthly leadership meeting focuses on four areas

bull Performance Performance is covered via the existing incentive strategic and operational metrics

bull Action plans Documenting action plans in the Performance Management Software Suite versus verbalizing action plans establishes ownership and accountability At subsequent meetings management follows up on key action items or plans to determine whether or not the corrective action did take place and if yes did it have the desired results

bull Strategic direction The strategic direction of the various teams is captured as a springboard to strategic thinking discussions and planning So as not to lose sight of short- and long-term strategic planning this aspect of the business now is housed in the BIRT Scorecard completing the strategic planning of the ldquoHow are we going to get thererdquo and ldquoAre we there yetrdquo cycle This holistic approach helps minimize the chances of our scorecard becoming too focused on operational performance and keeps strategic planning dynamic and visible

The value of these metrics is not in the data but in the commentary The individual teamsrsquo strategic direction ldquometricsrdquo are subjective red = 1 yellow = 2 green = 3 The target = 3 Each metric includes a description of the specific strategic path we need to research or move forward on as well as what goal achievement it supports The ldquodatardquo ndash or color ndash is based on basic questions like What did you hope to achieve this month vs What did you actually achieve this month Were there any successes barriers obstacles In addition to accountability the entire SBU benefits from the sharing of information having meaningful discussion taking appropriate action and collaboration

bull Key initiatives The last critical component is the identification and alignment of key initiatives that

are necessary to support achievement of the various incentives strategic goals and direction and operational goals As with the strategic direction metrics the value is in the narrative with the color reflecting what was accomplished for the specific reporting period

5 Innovation Why should this solution be considered an Innovative Solution What makes it unique groundbreaking and superior What unintended results did you realize

Over time the Government Programs Performance Management framework evolved into an innovative solution The process drives performance and isnrsquot necessarily focused on ldquocolorrdquo Rather itrsquos about having the right people in the same room on a regular basis to drive meaningful discussion and to take appropriate action to improve performance

Outside of the standard processes it was the monthly review process that drove effectiveness revisions enhancements and restructuring of the meeting schedule agenda and format The Government Program financial reporting manager would meet with each director and general manager to review their scorecard for completeness as well as for performance from an operational perspective The State and Federal team directors would then meet with their respective management teams to review and discuss performance results in preparation for the joint Government Programs Leadership Meetings The audience included the Senior VP down to team managers key data analysts (data providers) and support function representatives Through trial and error management learned to maximize their time and effectiveness by concentrating on key metrics and topics rather than trying to review all metrics identify leading indicators versus only outcome results and include strategic thinking and initiatives Today the monthly leadership

meetings are much more productive and look at strategic and operational performance

As involvement and participation increased in the team meetings as well as in the leadership meetings it removed silos opened communications enabled the sharing of information and best practices and promoted teamwork across the SBU But most importantly it brought about an awareness and a sense of unity and commitment within the SBU to achieve their goals something that was lacking before

While it was not part of the initial scope management realized shortly after implementation that efficiencies could be gained by replacing an in-depth hard copy monthly report with BIRT-generated results Since the BIRT Scorecard contained the same data with supporting narrative ndash plus additional metrics with narrative ndash monthly performance was captured via a monthly report Book various Maps and BIRT-generated reports Elimination of the hard-copy report was an unintended way of encouraging a more active use of the Performance Management software by management to monitor performance thereby increasing user familiarity with the contents features functionality and navigation

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

Sustainability is achieved through a continuous process of revisiting the scorecard when there are organizational changes looking at the business direction shifts goal changes process changes etc To ensure that metrics are still relevant a filtering process is held with each director and general manager every six to eight months or as necessary During this exercise questions such as the following are asked

gt Performance Management Excellence Awards gt Performance Management Excellence Awards

[ Figure 132 CEOrsquos Book ]

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Vol 6 Issue 2 2009

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

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3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

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  1. Button 3
Page 14: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

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Another benefit of BIRT is the BIRT Exchange community Actuatersquos user forum which is far more robust and extensive with documentation and help information than has been found traditionally Nearly every forum post has an answer to it in some form which is not likely to be experienced with any other Open Source project or forum-based community Meanwhile the community itself is vast and growing rapidly Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate ndash where a developer may have downloaded 20 copies over its history ndash adds up to 350000 different users of BIRT technology That number is growing at roughly double the rate of the other two most popular Open Source projects

Add Value Through Features

Actuate BIRT technology has a range of features that will add value to a companyrsquos BI project

1 In addition to being a graphical report design tool BIRT takes into account the long-standing tradition of Actuate to support reuse libraries and reusability across the entire environment It is able to not only reuse BIRT objects and BIRT components ndash such as charts and tables ndash but also to incorporate and use JavaScript objects and Java libraries in the reports themselves This creates a rich experience for driving and building web-oriented reports

2 BIRT offers navigability While a user is in a graphical design tool they should be able to take advantage of some of the core capabilities that the technology offers such as a visual hyperlink builder that keeps information in context as well as the ability to create cross tabs dashboards and charting mechanisms that are active and navigable Inserting type of content ndash so that it is both consumable and scoped in context for the user ndash is important to the success of deployment Hyperlinking in context is one of the key elements to supporting Open Source deployments

3 The Eclipse BIRT environment supports a variety of graphical types or charting types including not only grids and tables but both static and dynamic images as well that can be linked back to databases or can support conditional formatting and a variety of conditions baked into the report BIRT is able to handle a large variety of chart types and styles allowing organizations to convey exactly what theyrsquore trying to deliver to their users Supporting rich charting is one of BIRTrsquos key core capabilities

4 The Open Source Eclipse engine can be embedded into or deployed from an application quickly within a JVM Users can add content generation or report generation functionality easily and quickly to their application by inserting it into their run time The BIRT engine itself is a key component in the Eclipse BIRT project It has a variety of extension points built into it which means itrsquos able to not only generate supported output types ndash such as HTML or Adobe PDF ndash but can also create custom emissions from a BIRT report such as an emitter for mobile content or an emitter for a particular report format of the userrsquos own perhaps to feed another application With a robust API structure within the Eclipse BIRT engine these are all possible

Build On Interactivity for a Richer Experience

Building onto that BIRT experience organizations can add more interactive and visual elements to create more appeal within their BI projects

Animated Flash Visuals Animated Flash visuals built into BIRT reports lend to a richer more enjoyable experience for end users They can take advantage of the navigation enhanced with the visual and animated appeal that Adobe Flash offers

The Actuate BIRT development tools include 266 Flash widgets This is one feature that differentiates BIRT Open Source with the BIRT commercial product Those who purchase the development tools from Actuate will immediately receive these Flash objects that can be deployed not only within Actuate BIRT reports but within Eclipse BIRT reports as well they are portable across both environments

Interactive Viewing Often users have a difficult time articulating their requirements to report authors That problem is alleviated when authors can deliver them an interactive viewing experience allowing the report to become changeable and adjustable by the user The user can select a particular column and can apply a filter to that column they can toggle back and forth between viewing perspectives rotate charts change the grouping of a report or add more visualization to it with something such as conditional formatting They could even navigate within the report using a joystick or deploy that report or portlet content anywhere they want And ultimately they could drag and drop and change ndash or add columns to the report directly ndash by manipulating the report as needed

This interactivity gives the end user the ability to enjoy more freedom with regards to how they use the report It also

addresses one of the biggest conundrums with regards to report delivery giving users a report provides them with content that makes them smarter and as they get smarter they take that information and they work it into their knowledge which in turn changes the questions that they ask of the report This means that what they need from a report changes over time Allowing users to modify reports themselves is a key goal in supporting BI processes because as users become smarter about what theyrsquore doing with their content they can help assist in defining what the next iterations of their web content might be

Choose the RIght Server to Store and Schedule Content

Actuate has spent the last 15 years developing the Actuate iServer It comes in two styles ndash iServer Enterprise and iServer Express ndash and offers a robust environment for creating managing and delivering BIRT report content to users on schedule on demand or on an ad-hoc basis directly

The iServer Express is a single-server deployment that is appropriate in scenarios where there is less active usage it supports a sequential batch generation capability and roughly 10 user connections per second as the users connect to the server It offers that scheduling and deployment capability at a very cost-effective price point while allowing organizations to secure their report content using the iServer repository to take advantage of some of the presentation layer capabilities that Actuate offers through its information console to present and manage that content on behalf of the users and ultimately to create a full reporting experience for users directly

Alternatively for those deploying a very large system ndash perhaps one that operates outside of the firewall in a traditional web information application ndash there is the iServer Enterprise The iServer Enterprise is massively scaleable but also very predictably scaleable as companies double the resources that they can apply to their environment they double the throughput and user numbers that theyrsquore able to support with the iServer It is also highly configurable in regards to how content is deployed and supports multi-tenet environments or multiple application environments In addition it can be componentized so that a presentation layer can be separated from a content creation layer or a business logic layer from a data management layer ndash including the meta-data layer itself ndash to help abstract and manage the queries driven

Determine Where Content Can Be Distributed

Actuate JavaScript API is a mechanism that allows the user to take a JavaScript library embed it into any HTML page and then from that JavaScript library securely access Actuate content from the iServer This particular capability allows the user to put either a report part ndash a reportlet ndash or an entire report directly into new locations This could be used as a user attraction vehicle it could be used as a dashboarding vehicle or it could be an integration point for systems that are written in NET rather than in the j2e environments that BIRT typically supports

Deliver Mash-Up Applications

Delivering mash-up applications using all of the functionalities listed above is simple in the BIRT technology and lets users themselves participate in the definition saving creation and management of their own dashboard displays and it allows them to watch exactly the KPIs that they care about

This is done through Actuatersquos Mashboard Customization to the Information Console which allows users to take any BIRT report content and to deploy it directly into a mash-up style environment where they can define exactly what pieces of content go into their application and what doesnrsquot These dashboards can also be roll-based so that particular pieces of content can be deployed to particular types of users directly then if they want to continue to customize that capability theyrsquore able to do so

Conclusion

Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques such as Flash and Ajax in a web-based design metaphor It is designed to evolve effectively over time and is meant to give organizations a choice for every type of user The first decision point of any organization is to recognize whether or not BIRT is the right reporting technology for the information application in question Once thatrsquos decided companies must choose the technologies they want to offer each type of user and then consider how they want to deploy those technologies directly

A wide variety of capabilities can be build into the BIRT environment ranging from Open Source to commercial Actuate products It is a flexible environment and is robust for delivering to users any type of information-driven web content

Actuate has seen approximately seven million downloads so far of BIRT technology which at even a five percent download rate adds up to 350000 different users of BIRT technology ldquo

rdquo Ultimately the benefit of Actuatersquos BIRT technology is that it is a new generation of web-oriented reporting applications or information application technology and uses modern Web 20 techniques ldquo

rdquo

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The Challenge

Guiding a ship requires visibility into navigation operational performance and up-to-date information to make decisions This type of customer challenge drove ABS Nautical Systems

to incorporate Actuatersquos BIRT technology into its NS5 fleet management software

A leading software provider to the maritime industry ABS and its NS5 modular ERP system help customers manage principal operating expenses associated with vessels and offshore rigs ABS provided basic scheduled reporting and offered ad hoc reports in response to specific customer requests but customers demanded better functionality including the ability to easily extract and create both standard and custom reports

Producing reports to customersrsquo satisfaction took time as reporting was not central to ABS Nautical Systemsrsquo expertise Further it took valuable programmer time away from developing new features and functions for its core product This created the need for ABS to leverage a tool to provide highly-developed rich information application functionality increasing the power of its fleet management software while enabling its customers to access more flexible reporting tools

The Solution

With its own expertise in Java development and their existing reporting ABS searched for an Open Source reporting platformtool that they could leverage and seamlessly embed in their software ndash one that would deliver for ABS and their customers both immediately and for future expansion After considering Jaspersoft Actuate and Pentaho ABS selected Actuate and BIRT for their on-demand reporting solution

ldquoActuate has a clear roadmap and direction scalable platform financial stability and Open Source development platform The Actuate offering was an excellent fit because the technology

ABS Nautical Systems (NS) is one of the leading providers of fleet management software packages available to the

marine and offshore industries It offers a fully integrated modular approach to managing the principal operational expenses associated with a vessel or offshore rig ranging from maintenance and repair to regulatory requirements purchasing and inventory and crew management and payroll

SAFE AT SEAABS Nautical Systems A Case Study

ldquoBoth the technology roadmap and scaling are key It was an excellent fit for us actually ndash you had the right technology yoursquore Open Source based BIRT technology was key and you were the most helpful in helping us do the prototyperdquo

- Sandipan Bhattacharya ABS Nautical Systems

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used Open Source BIRT allowing us great flexibility in developing NS5 Actuate was most supportive in helping ABS NS do the prototype ndash both their Professional Services as well as the account teamrdquo states Sandipan Bhattacharya CTO for ABS NS

The new BIRT-based on-demand reporting tool within ABS NS5 is a web-based application that enables clients to quickly and easily generate custom reports from any NS5 module It handles reporting for the central elements of operational management ndash from regulatory requirements to payroll to planned maintenance programs But it takes NS5 beyond operational duties to consolidate data from across software modules to better monitor key performance indicators (KPIs) such as time to repair spare parts turnover and purchasing cycle times

The interactive information views that BIRT provides help fleet managers to achieve maximum efficiency empowering NS5 software users to get what they want in terms of the reports they need in the way they want them as each department or company may want to look at data in a different way Lastly that same data is more accurate because it comes as near real-time information at the time they need and can be benchmarked against how well they are performing to provide trends for evaluation

BenefitsResults

bull Speed time to market with new features by focusing on core competence in its software platform This allows ABS to focus development on its core product and improve customer satisfaction by rolling out and providing complete reporting modules This also helps decrease development expenses and support costs

bull Expand available market with completely new product lines enabling ABS to increase its client base to companies that didnrsquot know about them or had previously disregarded their offering The additional modules make the product more attractive to existing clients creating additional revenue sources for ABS

ldquoThe BIRT Open Source platform allows for a great deal of flexibility in the development stages Additionally the ease of integration into our OEM package was a great benefit Lastly the Actuate and BIRT offering has proved to be well suited to ABS Nautical Systemsrsquo needs and Actuatersquos roadmap shows what we can do in the futurerdquo states Bhattacharya

Self-serve customization drives flexibility and ease of creating reports BIRT empowers users to produce reports customized to their individual and departmental needs and preferences And as government reporting requirements change they can

Solution OverviewCompany Profile Integrated fleet management software for marine industries

Industry Software

Location Houston with offices worldwide

Challenges

bull Customer need for better more timely reports

bull Enable customers to self-serve for ad hoc needs and regulatory requirements

bull Focus on core software expertise and feature requests

Solution Integrate Actuatersquos Open Source-based BIRT reporting with ABSrsquo NS5 fleet management software

Business Benefits

bull Faster time to market broadened portfolio

bull Ease of integration development flexibility

bull Increased visibility into operations aids customer competitiveness efficiency

bull Users empowered to customize reports

Does your companyrsquos mission and vision statement place the customer at the center of your universe

Does it promise to maximize customer value and deliver the best customer experience possible If it does your mission and vision statement is surprisingly similar to nearly every other organization And much like them chances are your organization is struggling to make this vision a reality to actually reinvent itself as truly customer-centric

ldquoCustomer-centricrdquo has become the new buzz phrase thrown about at most executive planning sessions and has replaced ldquoinnovativerdquo as the new mandatory strategic language The truth is it takes a lot more to become customer-centric than changing the company vision ndash it requires a departure from years of tradition a clear look at who and what your organization is and a deeper understanding of what motivates your customers to buy from you or from your competitor Fortunately the cost to make this change is surprisingly low while the benefits and the returns can be shockingly high

Finding Your Customer

Customer-centric implies that the customer is central to the organization but this is too esoteric to have any real meaning An organization turns materials into a product or service which is then sold Everything the organization does must lead to this

event (with no sale after all therersquos no customer) This logic works for most people and most organizations and it logically follows that the focus should be upon the creation of the best possible product or service because this is what causes a prospect to become an actual customer

This logic fits nicely with traditional thinking It was popularized by Michael Porterrsquos value chain approach in the mid-80s The value chain is a string of critical processes that begins with raw materials or inputs and ends with a product or service delivered to a happy customer Thinking this way makes sense because it is easy to place the customer at the end of the process But this mind-set doesnrsquot just affect how executives structure the organization it weaves its way into every aspect of how the organization manages itself and how managers make decisions

For example the finance department performs the close process each month so that it can deliver financial information to managers with actual bottom-line responsibility These managers from executives to cost center managers are financersquos customers just as shareholders are when they deliver quarterly reports Once these reports are delivered finance goes back to the business of accounting and managing revenue and expense until the next month Engineers work to design new products that will keep them one step ahead of their competition Manufacturing produces goods to meet customer

respond more quickly adapting them by themselves instead of depending on ABS to supply reports

ldquoActuate empowers users to get exactly the reports they need the way they want them Empowerment is key as well as flexibility as each department or company may want to look at data in a different wayrdquo states Bhattacharya

Rich information drives efficiency through increased visibility and better insight into operations improving customer competitiveness With highly accurate real-time information on how well they are performing management can control both overall and specific costs of operating and maintaining their shipping fleets ldquoThey donrsquot have to wait hellip they can see all contributing factors day to day It helps improve efficiency at every level For the first time a shiprsquos captain can have insight into the operational performance of his ship while still at seardquo says Bhattacharya

Creating the Customer-Centric

OrganizationFinding Your Customer-Critical Path

By David F GiannettoCEO

The Telos Group

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orders or demand projections The sales department courts potential buyers so that they become actual customers Once they do so sales then returns to identify new targets and tries to transition them Manufacturing works to refill shelves Engineering continues developing products

Employees throughout the organization are focused upon delivering the product or service for which they are responsible The product attributes become the value proposition that will appeal to their customer regardless of whether or not this is an internal or external customer Employees are trained to think in terms of product development delivery and value The organization becomes even if it doesnrsquot know it product centric Believing that a mainstream management theory such as the value chain approach could not be wrong or outdated management is comfortable with this view of their world When they try to become customer-centric they do not know how

Making the Change

Consider for example the electricity powering the light by which you are reading this article It is a fairly simple product that was mainstreamed decades ago and except for new types of power generation it has remained essentially unchanged The traditional value chain for this industry is fairly straightforward Power is generated by a complex and often dangerous power plant and it is delivered to the customer via a complicated and often dangerous network The customer then consumes this power and must pay for it creating the

need for back-office operations such as accounting finance and customer service

Given the complexity of power generation and delivery operations the organization is staffed by a high percentage of engineers many with doctorate degrees and years of specialized training The generation and delivery assets themselves are maintained by highly-trained highly-specialized workers A large percentage of the management team also comes from this background and rose through the ranks of organizations identically structured Combined these employees represent over 75 percent of the organization

Collectively these employees create a culture that is consistent in almost every power utility in the world Their cultures respect academic achievement technical expertise and years of experience in the industry They typically believe in rigid structures inflexible procedures and consistency in design and execution They are truly product focused

Given the potential hazards it is easy to see why they behave the way they do But what happens when this type of organization has to compete in a more open market when transparency is increased or when the customer such as a municipality has a stronger voice or is under the growing influence of being green What happens when the power company must become truly customer-centric

It is nearly impossible for them to succeed Seventy-five percent of the organization has little to do with or has little understanding of the customer

Departing from Tradition

While this product focus is exaggerated within a power utility largely because of their technical nature these factors affect nearly every organization Employees who have great influence within the organization will not yield it to those who have less but who understand the customer better Funding is unlikely to shift from traditionally respected areas to those areas that most affect the customer

For a power utility this means that engineers who have often dedicated their entire lives to the study of their work must be considered equal to project managers and customer service agents most of who do not hold any degrees Money resources and staffing must focus on project management and call center technology not just on million- or billion-dollar assets There must be recognition that these areas equally affect the customer This new perspective must be executed by executives who have spent their entire careers adhering to the traditional values of the product-centric culture But this shift is what customer-centric really means truly understanding and meeting your customersrsquo needs It starts with the customer more specifically it starts with a prospect

Customer-Critical Path

This means that the traditional value chain must be rethought and renamed more appropriately to the customer-critical path A prospect travels this path on their journey to become a customer a customer travels this path toward the goal of becoming a happy customer This is the true value chain of the organization ndash a string of processes that become critical because they directly affect your customer regardless of the product service organizational chart academic degree or bias Find the customer-critical path and you can guide your customers through your organization in the way that is most meaningful to both them and you

But not all customer needs are the same even within an industry that has only one real product like a power utility The customer-critical path may start in several places meeting the needs of

several different types of customers ndash household customers that simply need power turned on or major projects that require significant project management and pre-planning Eventually these starting paths merge It will occur at the point at which all customers are happy From there they may take a different path

again some will terminate service or have new needs There is not one value chain there are many paths a customer might travel through your organization

This new approach offers significant value for organizations that adopt it It allows them to better understand their customers so that they can be more effectively segmented and targeted by products or services This drives the bottom line in several ways A stronger value proposition increases appeal thus driving revenue Better service and customer interaction improve the customer experience and increase customer loyalty driving customer lifetime value

The customer-critical path also becomes a vital decision-making tool for management It provides a clear and unbiased perspective on where resources should and should not be spent It defines the relative worth of projects assets and expenditures painting a clear picture of what the results will be if the customer-critical path is not

properly maintained

And if your mission and vision statement says you are customer-centric it makes your strategic plan more than simple semantics It makes it actionable setting your organization on a path towards true differentiation and market leadership Properly crafted the customer-critical path becomes a pleasant stroll through the park for your customers and it can also become the most profitable path for your organization

David F Giannetto is CEO of The Telos Group co-author of The Performance Power Grid The Proven Method to Create and Sustain Superior

Organizational Performance (J Wiley amp Sons 2006) and a professor in the Executive MBA program of Rutgers University

Mr Giannetto can be reached by email at dgiannettotelosconsultingcom

34

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35

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I Introduction and Background

Who the NMDP is

The National Marrow Donor Programreg (NMDP) and Be The Match FoundationSM are non-profit organizations dedicated to creating an opportunity for all patients to receive the bone marrow or umbilical cord blood transplant they need when they need it Every year thousands of people of

all ages are diagnosed with leukemia and other life-threatening diseases Many of them will die unless they get a bone marrow or cord blood transplant from a matching donor Seventy percent of people do not have a matching donor in their family and depend on the Be The Match RegistrySM to find a match to save their life

The Beginning

When their 10-year-old daughter Laura was diagnosed with leukemia Robert Graves DVM and his wife Sherry were ready to do anything they could to save her They agreed to try a bone marrow transplant from an unrelated donor ndash the first ever for a leukemia patient Laura received her transplant in 1979 at the Fred Hutchinson Cancer Research Center The treatment gave her an extra year and a half of life

The National Bone Marrow

Donor Program

The Balanced ScorecardVision into

Action JourneyBy Howard Rohm

President amp CEO Balanced Scorecard Institute under the guidance of The National Marrow Donation

Programrsquos Michael Boo Chief Strategy Officerand John Rudrud Senior Analyst

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37

Vol 6 Issue 2 2009

The experience inspired Dr Graves to create a national registry of volunteers willing to donate marrow His early efforts brought together other patient families and transplant doctors spurring a federal mandate that led to the creation of the National Marrow Donor Program NMDP began connecting patients with unrelated donors in 1987 with a registry of just 10000 volunteers

What the NMDP Does

The Be The Match Registry has grown to more than seven million donors and over 150000 cord blood units the largest and most racially and ethnically diverse registry of its kind in the world Medical advances are making marrow and umbilical cord blood transplants available to more patients all the time Since 1987 NMDP has arranged for more than 35000 transplants to give patients a second chance at life Today NMDP facilitates more than 4300 transplants a year

Planning for the Future

Many more patients still need help In order to meet the needs of all patients NMDP will need to facilitate 10000 transplants per year by 2015 That is more than double the number of transplants the organization facilitates today NMDP is working to meet this need but canrsquot do it alone Efforts are sustained by

bull A global network of more than 490 leading hospitals blood centers cord blood banks and laboratories

bull Agreements with donor centers cooperative donor registries and cord blood banks worldwide through which the program provides patients access to more than 12 million donors and 300000 cord blood units

bull Continued support from the US government which has entrusted the NMDP to operate the CW Bill Young Cell Transplantation Program the federal program supporting bone marrow and cord blood donation and transplantation

bull Partnerships with corporations service organizations student groups faith-based communities and other organizations

A new and different way of thinking about the NMDPrsquos long-term strategy was required in order to make sure that NMDP would be capable of delivering 10000 transplants per year in 2015 ldquoBusiness as usualrdquo would not get the organization where it needed to be NMDP needed to identify and

aggressively improve in strategic areas critical to the delivery of 10000 transplants

II The Balanced Scorecard Approach

Background

The strategic planning system that had been used at NMDP up to 2007 was a fairly well-developed planning process that tracked initiative performance under seven primary areas of strategic focus While this approach provided a measure of strategic planning for the organization it was too focused on activities and projects rather than on impacts

Early in 2007 NMDP leaders Gordon Bryan Chief Financial Officer and Michael Boo Chief Strategy Officer began developing strategic metrics designed to identify measure and communicate progress in strategic plan objective areas

Selection

As the senior management team evaluated options to integrate broader strategic metrics with the existing strategic business plan the Balanced Scorecard approach emerged as a leading candidate during the initial assessment of planning models because it

bullEncourages development of strategic themes and provides the ability to focus on areas where long-term continuous improvement is needed

bullPermits identification of cause-and-effect relationships between Strategic Objectives within each Theme

bull Facilitates communication of Strategic Objectives that can be portrayed on a strategy map that is easily understood by all employees and stakeholders and shows how the perspectives work together to achieve the mission

bull Assures that the organization focuses on Strategic Objectives and Measures from a CustomerStakeholder perspective and a PeopleKnowledgeTechnology perspective (Historically the organizationrsquos focus was skewed toward the Process and Financial perspectives)

bull Enables leadership to track Strategic Objective performance over the long term rather than tracking the status of supporting projects and initiatives

bull Creates a framework for prioritization of projects initiatives and funding opportunities based on contribution to and support of the Strategic Objectives

bull Allows organizational Strategic Objectives to be cascaded into Department Objectives thereby giving each employee

a more specific understanding of how his or her work impacts and contributes to the Strategic Objectives

bull Drives long-term continuous improvement as Strategic Measures improve over time

bull Facilitates a ldquolearning organizationrdquo where corrective actions are implemented in cases where Strategic or Department Objective Measures are not being met

The NMDP planning team looked at a number of planning models ndash including Balanced Scorecard Six Sigma Lean and TQM ndash and concluded that the Balanced Scorecard approach provided the most versatile and relevant framework for future growth and organizational development

III Scorecard Development ndash NMDP Officer Input

Early to mid 2007 NMDP began the Balanced Scorecard development effort with the help of consultants from the Balanced Scorecard Institute

A comprehensive review of the organizationrsquos strengths weaknesses opportunities and threats organizational pains organization enablers vision and mission was conducted over several days with NMDP officers and senior management These sessions produced a new Mission and Vision Statement and four Strategic Themes (rather than the original seven)

The former mission statement Extend and improve life through innovative cellular transplant therapies was changed to We save lives through cellular transplantation ndash science service and support

ldquoThis new mission statement captures and communicates more directly why we exist and it clearly articulates the three ways that we are able to save livesrdquo explained NMDP CEO Dr Jeffrey Chell

The Overarching Strategic Result in place of a vision statement was developed and shared with employees throughout the organization Meeting the need for 10000 transplants per year by 2015 The senior management team developed a longer more descriptive version of this statement but felt that the shorter version had more impact

ldquoWersquove found that the Overarching Strategic Result has been a great tool to get people thinking about how we will manage

to do more than double our current transplant volumes in a relatively short time ndash just five years from nowrdquo explained initiative sponsor Michael Boo ldquoThis has driven a lot of creative thinking around how to dramatically improve the efficiencies and cost effectiveness of many internal systems and delivery processesrdquo

The four Strategic themes that the NMDP officer group developed and agreed upon are

bull Global Access and Acceptance ndash Getting to Yes Overcome non-cell source barriers to transplant (eg no insurance no transportation no post-transplant support)

bull Deliver Excellent Stakeholder Experience Overcome Cell Source Barriers (making sure a cell source donation is available when itrsquos needed ndash adult or cord)

bull Research Pursue research to improve cell transplantation as a therapy

bull Culture of Excellence Keep up-to-date with talent structure and resources needed to continually improve transplant services

IV Scorecard Development ndash Senior Management

Throughout the spring and summer of 2007 four Theme Teams comprised of senior management met to develop

Theme Team strategy maps that included Theme Objectives by Perspective and proposed Measures for each Theme Objective These served as detailed roadmaps with specific objective areas identified ndash where NMDP needed to focus in order to improve them

The four Theme Team maps were subsequently

combined into an NMDP Strategy Map that included all relevant components from each theme This NMDP Strategy Map is comprised of 13 Strategic Objectives 46 Strategic Measures and seven Strategic Initiatives

Narratives were captured regarding the intent and ultimate end state for each Strategic Objective and detailed descriptions were created for measurement information including rational frequency owner and unit of measure

At this stage in the process the team named the Balanced Scorecard tool ldquoVision into Actionrdquo or ViA ndash NMDPrsquos strategic Performance Management tool On June 1 2007 the ViA Themes and NMDP Strategy Map details were presented to the board of directors by senior management and approved along with a plan to proceed to the next phase of department cascading

A ViA Communications Team was formed to communicate ViA progress to employees on the development of the new Mission Statement Vision Statement and the 13 Strategic Objectives This was done through a combination of pulse checks newsletters

38

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39

Vol 6 Issue 2 2009

intranet messaging e-mails from the CEO leadership training all-staff meetings and promotional contests This was an extremely integral step in the ViA roll-out that provided transparency and generated excitement around the benefits of ViA

V ViA Department Cascading

All departments at the NMDP were scheduled for sessions to develop their department Objectives Measures and Initiatives These were facilitated by internal subject matter experts and included an initial two-day exercise to help the department identify where and how each department contributed to the NMDP Strategic Objectives Worksheets and other preparation material were provided to each participant and collected prior to the cascade session The pre-work information was used to expedite the affinity exercises at each session

These were followed up with sessions to finalize detailed measures with individual measure owners Department teams were comprised of five to 10 key members of each department

The department cascading efforts provided a number of primary benefits to the organization including

bull The articulation in easy-to-understand terms of how each department contributes to the overall success of the Strategic Objectives and ultimately the NMDP Mission

bull A tool to identify gaps or overlaps between departments that can also be a tool for departments to communicate with each other in terms of supporting initiatives

bull A tool for each department to prioritize initiatives and activities Also it provided a mechanism to support requests for funding new opportunities

bull A clear framework for corrective action where measures are not being successfully met

bull A common format and mechanism for reporting department performance to officers and senior management

bull A common format and mechanism for reporting and reviewing department performance with staff

bull Help with the development of individual job performance appraisal content ndash which should be designed to support Department Objectives

Department Cascading was complete in early 2009 There are over 200 separate department measures that are tracked each quarter

VI NMDP ViA Today

NMDP has established a department Champions Council Members of the Council are becoming experts at using the automated ViA software Today this is being used at department staff meetings to facilitate discussion around corrective action for underperforming or unacceptable Department Measures Departments use the department Strategy Maps to guide staff meeting discussions on performance measures and corrective action plans

ldquoAll business cases or requests for funding must be submitted with clear tangible descriptions of how the effort will impact ViA Strategic Objectivesrdquo explained Boo ldquoOnce all business cases have been submitted to the officer group for final approval they are prioritized in order of their impact on ViA Strategic Objectivesrdquo

All strategic and department measures are required to be reported into the ViA system each quarter Each is color coded based on an officer-approved target matrix Each measure owner is required to provide comments regarding the measure performance for the quarter and discuss how he or she expects the measure to end the fiscal year This information is shared with senior management for review and follow-up with measure owners ifwhen necessary

Senior management uses the color-coded NMDP Strategic Map as a basis for discussing quarterly performance and identifying

Strategic Objective areas that may need attention corrective action andor more resources NMDP tries to focus not only on corrective action items but also highlight success stories where outstanding performance has been reported

All employees will soon have access to the web-based ViA application to provide as much transparency and visibility as possible in order to become a truly strategy-focused organization

ldquoVision into Action has been successful within the organization to a great extent because of the consistent support and guidance provided by NMDP leadership including our CEO Dr Jeffrey Chell my fellow Officers and the Board of Directorsrdquo said Boo

Howard Rohm President and CEO of the Balanced Scorecard Institute is a Performance Management trainer consultant and technologist with over 40 years experience Mr Rohm has helped dozens of organizations worldwide build Balanced Scorecard and other performance planning and management systems

48

Pe

rform

Mag

azine

Info

rmatio

n in

Actio

n

A community for BIRT users and developers sponsored by Actuate

A Report Writing Portal lets your end users browse reports modify them and even develop

new ones You can set one up in three steps when you use AJAX-based BIRT technology

Because the end user tools to modify and create reports are AJAX-based therersquos no desktop

software to install Users get the reports they need quicker while the burden on development

resources to create new reports is reduced

BIRT Exchange is a community site that offers the broadest collection of resources for the Eclipse BIRT (Business Intelligence

and Reporting Tools) project and for integrating spreadsheets with Java The site is sponsored by Actuate a co-leader of the BIRT project

Sponsored by

See a Demo

at Booth

602

For More Information

Contact us by phone at 1-800-884-8665

1-913-851-5300 from outside of the United States

wwwbirt-exchangecom wwwactuatecom

40

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41

Vol 6 Issue 2 2009

JCIrsquos previous approach of one-off negotiating as well as its spirit of continuous improvement and customer focus meant that it had only one-off measures in every location The company for example had 127 variations of the measure lsquomaintenance managementrsquo Many were very similar but since they were not exactly the same they could not be compared effectively Inefficiency at gathering and maintaining data at different locations across the globe made the task difficult as well Data was collected any way possible thrown into a cell or a Power Point slide and handed in at the end of the month It was highly inefficient extremely customized at every location and did not allow any ability to benchmark compare or look at best practices These concerns and requirements drove JCI on its scorecarding journey

The Solution

In initiating its scorecarding solution JCI first had to establish the right measures Business leaders were chosen for all of the scorecard categories and for each of them a business owner was selected for each region these business leaders and owners were responsible for defining the standards and measures Data collection systems in some cases proved difficult there wasnrsquot always centralized information available ndash in some cases data needed to be gathered right down at the account level This meant that the process of data collection and identifying measures was a significant job To get started though JCIrsquos web programmers were able to put up some scorecards quickly to allow the company to start architecting measures this allowed business leaders across the globe to start identifying their measures and to put the processes in place regionally to collect information

Before committing to a technology JCI wanted to know 100 percent of their business requirements and this was the point of their web-based scorecard To assist in this endeavor Actuate ndash prior to selection ndash let the company test drive their product The JCI team went through and looked at every single screen determining where they had to configure the tool and for every single screen they also made what they called a lsquoblueprintrsquo creating an Excel template with fields to correspond with every field on each screen It was incredibly detailed work but they wanted to ensure no mistakes were made and that the business requirements were defined To accomplish this there was an extreme amount of detailed coordination globally with twice-weekly meetings for the worldwide team in charge of the initiative A byproduct of the process was that the team learned to use the Actuate BIRT Performance Scorecard and basically built all of the blueprints for the project design

JCIrsquos audience for the project upon kick off were the 300 external customers that would have access to this information Customers previous to this were getting their information via Excel and PowerPoint In addition to these external customers was the population of approximately 1000 internal users within JCI itself These included account leaders and functional leaders including those from HR Finance Safety etc

Three primary functions of the project were

1 To replace the PowerPoint slides used in global and regional monthly internal operational reviews

2 To very quickly be able to become best in class JCI wanted everyone who had an account to be able to see where they sat compared to their peers This provided individuals ndash when faced with a problem ndash the ability to quickly identify and contact others who had solved the same issue

3 To standardize customer faith in contractually required performance measures This was a key goal of the company which felt that if they were going to benchmark and compare they needed to bring in the best practices learned at one location to their work at other locations

These three primary functions were heavily loaded in JCIrsquos rating system as the company set out to choose the right software for their scorecarding project It was also important that the software be intuitive as there was no time for hundreds of hours of global-wide training The software had to be rapid and easily configurable with limited IT assistance As JCI is a very large organization with a lot of systems in place the team in charge also wanted the software to be easily adjustable to the companyrsquos rapidly changing business they didnrsquot want to have to get into queue for IT every time a change had to be introduced or a new customer added

JCI Chooses ActuateFour vendors were evaluated for JCIrsquos scorecarding project with a global team in place to provide a systematic discussion of the defined business process and requirements The product chosen was the BIRT Performance Scorecard JCI had 30 days of Actuate Professional Services and planned for monthly micro improvements and quarterly macro improvements

Upon purchasing the BIRT Scorecard in January 2007 using the blueprints theyrsquod established already the company wrote their business processes They were able to go live in 90 days helped by the homework they did with the blueprints the web scorecard and the data collection processes It was an incredibly smooth implementation overall

The Results

Whereas JCI originally started out with a model of one-off negotiations with customer measures the scorecarding project has led to approximately 70 percent agreement on JCI standard metrics The company does a customer satisfaction survey both annually and quarterly and aims to demonstrate evidence towards continual improvement

Since implementation of the project the company has also been solving its data integrity issues Previously two regions might have been using the same words but not the same data collection methods ndash this made it impossible to introduce benchmarking and comparison between areas Now those problems are being solved and benchmarking and comparison are possible to the benefit of both JCI as it strives for best-in-class status and its customers

By David F GiannettoCEOThe Telos Group

Johnson Controls Incorporated (JCI) is a $38 billion company with a total of 140000 employees working out of more than 1300 locations in 125 countries worldwide Headquartered in Milwaukee Wisconsin the company provides a range of services including

real-estate portfolio management property management facility management and design and construction services

To initiate its scorecarding project JCI began by creating five categories of measurement Business Performance (this includes all financial measures) Service Delivery Customer Satisfaction Safety and People While the other four categories may be typical to most organizations the Service Delivery category was designed to take JCIrsquos measurements down to the client-site level which includes over 300 locations globally where the company has contracts In some cases there might be one staff member assigned to manage a single building while other times a staff member has a whole portfolio they maintain Measuring performance at all of these locations and levels proved a complex undertaking

Strategic Initiatives

Like all service providers JCI has to demonstrate that they add value Scorecarding allows them to do this both internally

and externally using data-driven results Since JCI has always been very much a data-driven organization anyway with a manufacturing background this was a natural fit for the corporation

JCIrsquos organization-wide motto is to be as good everywhere as they are somewhere Theyrsquove found that in any one account they may excel in several areas but perhaps not in all areas elsewhere though on another account someone else might have the skills needed to fill in those gaps The companyrsquos goal was to share information and communicate it between different locations across the globe allowing the company as a whole to get better faster and to benefit from the skills and strengths of its individual members Scorecarding was introduced as a way to help share this information and to introduce benchmarking within the company

The Requirements

To get started on their scorecarding initiative JCI examined each of their US contracts What they found was that there were no standards between clients and therefore no ability to benchmark Customers though wanted the ability to find out how they stood in relation to other customers This was impossible under the circumstances

Global Operational Excellence and a Performance Scorecard System A Case Study of

Johnson Controls Incorporated

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Vol 6 Issue 2 2009

Out of Touch With Crucial Data

Previously when Helzbergrsquos divisional and regional vice presidents went on the road access to their key performance metrics was restricted Without a laptop and a WiFi or hotel network connection to the internet they were ldquoflying blindrdquo according to Greg Backhus Helzbergrsquos Director of Data Warehouse and Decision Support Systems As a result they did a lot of faxing it was the only way they could get the current data that they needed in order to

About Webalo

Webalo technology transforms enterprise applications and data to make them compatible with mobile

devices This eliminates the need for traditional custom programming reducing the deployment of mobile applications from weeks or months to in most cases less than a day The resulting ldquoanywhere anytime on-demandrdquo availability of enterprise data on handheld devices turns such devices into viable alternatives to desktop laptop and palmtop computer hardware and lets mobile employees work more productively ndash on the spot ndash to solve problems answer questions monitor operations close sales and make informed decisions

The Webalo Mobile Dashboard Service ndash available in both internet-based and enterprise intranet-based implementations ndash lets non-IT business administrators securely specify the content of mobile-accessible information and the companion Webalo Proxy Server configures it in seconds to conform to the native user interface of any BlackBerry Windows Mobile Pocket PC Palm Symbian or Java-enabled smartphone

CLARITY CUT AND CARATSHow Helzberg Diamonds Made Sales Data Clearer Eliminated

Delays and Lightened the Load for its Divisional Executives

A diamond may be forever but a lot has changed in how theyrsquove been marketed and sold during Helzberg Diamondsrsquo nine decades in business A single store has expanded to nearly 300 locations from coast to coast and border to border Sales can also be made online now And information about every sale can be accessed in an instance through the companyrsquos enterprise systems

bull Compare actual sales to their goals and plans

bull Determine transaction counts for total dollar volume and average sales value

bull Break down sales by product category

bull Monitor attachment rates for products and services related to the main product sale

For example onsite at individual stores it was difficult to gauge how an active price-reduction sale was affecting unit and dollar

volumes unless there happened to be a coffee shop next door with a WiFi connection that would let Helzbergrsquos executives access the enterprise system

The Three Cs of Information Access

The three Cs of diamond grading ndash clarity cut and carats (or weight) ndash turned out to be applicable to data access as well But it took a transition to handheld devices and to the Webalo Mobile Dashboard to achieve it

Though laptop computers had gotten lighter and lighter over the years they were still considerably heavier than the Pocket PC-based smartphones that Helzbergrsquos executives used Since they were carrying those handhelds in addition to their laptops the VPs were open to the idea of being able to

bull Access sales metrics on their handhelds

bull Have data available on-demand from any location with a wireless signal

bull Navigate quickly to the figures they needed

bull Get updates to their metrics automatically

bull Review the information offline

It was the only time that carrying less weight ndash or carats ndash added more value Using a simple step-by-step wizard Helzbergrsquos support staff was able to configure their enterprise reports in a matter of hours They then assigned access privileges to each executive to control who could see what information and uploaded the file to the Webalo server That satisfied how data was ldquocutrdquo

For each mobile user regardless of the brand and model of smartphone they used the Webalo Mobile Dashboard conformed the information to the devicesrsquo user interface The application worked and looked exactly like any other application developed specifically for their mobile devices the on-screen text was easy to read and navigation used the same menu structure That meant there was no learning curve to delay user acceptance and productivity Clarity was essential and the Mobile Dashboard delivered it right down to the ability to bookmark commonly-referred-to displays for instant reference enhancing on-the-spot productivity even more

Speed and Simplicity

Productivity was also improved on the IT side Without the need for custom programming to conform the information to each smartphone brand and model deployment was reduced from months to hours

Since adopting the Webalo Mobile Dashboard Backhus says ldquoThe Divisional VPs find it invaluable They get more done because they donrsquot have the delays they used to haverdquo Decisions that used to have to wait for current data are now made right away relying on the right data presented in the right format

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Vol 6 Issue 2 2009

Sustainable practice has graduated from being market hype

to becoming a strategic initiative important for driving a successful enterprise It not only reduces a companyrsquos impact on the environment but can help organizations achieve a competitive advantage to build their brand impact top and bottom line and improve customer acquisition satisfaction and retention

Creating a road map towards sustainable management can require an entire shift in corporate thinking one that involves searching for buy-in at all levels establishing useful metrics and introducing practices that get beyond the green hype The end result though is not just a greener organization but also one with a more prosperous future

Why Sustainability

In August 2008 a survey undertaken by CIO Insight examined green practices in business focusing on the reasons why CIOs introduce sustainability efforts into their organizations The number one reason why organizations went green the study found was that the people within those companies sincerely had a concern for the environment A total of 74 percent of respondents answered that way 32 percent of which listed it as their most influential driver

Other influential drivers named in the survey included

Financial Drivers Companies found sustainability to be a way of cutting costs If they could cut energy costs not only would that help the environment but it would also help create cost savings The second most popular answer in the CIO Insight study financial impacts are key to implementing sustainability in most organizations Examples of financial impacts possible from sustainability were presented at CFO

2 The CFO Green

Conference which took place in May 2008

bull Dupont reduced its CO2 emissions by 70 percent saving the company $3 billion

bull FedEx redesigned its delivery trucks making them more aerodynamic This reduced the amount of particulate pollutants nitrogen and carbon the trucks put into the atmosphere and it also reduced the companyrsquos fuel costs exceptionally

Customer Image In the CIO Insight survey the third motive listed by CIOs for introducing sustainability ndash at 64 percent ndash was company image Consumers are becoming more and more aware of whether companies or organizations are living up to sustainability ideals They will notice if a company image or brand value reflects this concern for the environment Meaningful sustainability efforts can help gain customer approval as in the following case

bull Wal-Mart and Procter amp Gamble together agreed to sell liquid laundry detergent only in concentrated form This saved shelf space for Wal-Mart reduced water use by 400 million gallons for Procter amp Gamble and eliminated 45 million pounds of plastic waste

Regulatory Requirements The surveyrsquos fourth most popular reply ndash at only 25 percent ndash were current or potential regulations including the cap and trade systems being implemented which will require companies to buy carbon and sell carbon credits

Shareholder Pressure Finally at fifth in the CIO Insight survey ndash with 14 percent of responses ndash was shareholder or public pressure pressure building from shareholders to put forth sustainability efforts Pressure at this level is often mixed though as shareholders are also likely to express a desire that they donrsquot want shares to decline in value The general message may be that it is fine to introduce sustainability measures only as long as there is no risk that they will hurt the company

A Road Map Towards Sustainability

Step 1 Identify What Drives Your Organization

The first step in the road map towards sustainability is identifying key drivers Some drivers vary from one organization to another while others seem to drive any organization regardless of the industry Drivers incude

Internal drivers

bull Cost cuttings and savings

bull Employees including both the satisfaction of current employees as well as the recruitment and retention of future employees

bull Investment

External Drivers

bull Stakeholders including both those within the company ndash the employees discussed above ndash as well as stakeholders outside of the company

bull Brand awareness because consumers are becoming increasingly aware of the choices that are available to them and are making choices based on a companyrsquos green initiatives

Future drivers

bull Tax incentives

bull The recruitment and retention of future customers

Step 2 Select Your Metrics

In general terms sustainability metrics will fall into one of four major categories those that affect the climate those that affect the oceans those that affect human health and those that affect common issues like the land the water the wildlife etc

Within those large categories are smaller areas of interest that companies must examine to introduce organization-wide sustainability management carbon monoxide use energy consumption water consumption and fuel consumption are prime examples

Carbon Monoxide Use Many of the questions companies are asking themselves in regards to carbon monoxide use include

A Road Map of Key

Sustainability Metrics

That Impact Bottom

Line

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Vol 6 Issue 2 2009

bull How much carbon monoxide do we produce

bull Which processes in our overall manufacturing or delivery use produce the most emissions

bull Can we determine the indirect emissions For example leave a computer plugged in and itrsquos still on the grid creating an indirect carbon dioxide emitter How can we measure that

bull Whatrsquos our cost Do we have metrics that tell us what our CO2 emissions cost us

bull Can we predict into the future If we continue on this path without doing anything where will we be next month Next quarter Next year

Some examples of metrics related to carbon monoxide use include carbon dioxide emissions per employee (similar to revenue per employee) carbon footprint metrics and transportation distances

Energy Consumption Areas of interest related to corporate energy consumption may include the following

bull How much do we consume From what sources

bull Are we on the grid Are we using solar power or wind power or another alternative power

bull How much is used by our data center How do we make the data center greener

bull Where can we reduce consumption

Companies today are reducing energy consumption in a variety of ways by introducing energy audits and looking at energy-saving appliances and also through energy incentive programs for employees within which companies can incentivize and introduce bonus plans

Water Consumption An examination of a companyrsquos water consumption may include some of the following queries

bull How much water do we currently use and where

bull Where in our processes do we use the most water

bull Can we predict how much wersquore going to use in the future

Some of the examples of metrics that companies introduce in terms of water consumption include improved water quality how much impact low-flow or low-volume toilets have on water consumption and how much water is or can be recycled

Fuel Consumption Questions to consider in relation to fuel consumption include

bull How much fuel do we use

bull Where are the inefficiencies

bull Whatrsquos being predicted for fuel usage in the future

bull Can we analyze our logistics so that we can determine how to reduce our fuel consumption For example where are our trucks traveling How are they traveling What kinds of loads are they carrying

Step 3 Recognize Challenges

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly As such easier ways to enhance communication and to increase visibility need to be introduced both inside and outside of an organization

There are also constantly evolving requirements measures and standards of success With everything so new companies are challenged to find ways to compare their sustainability efforts with other organizations The biggest challenge in implementing these processes or attracting metrics may be that they require an entire shift in thinking Additional challenges that exist in the implementation of a sustainability model include

1 Financial concerns Companies must truly see potential for returns on investment or these initiatives can become non-starters or stall

2 Lack of regulatory motivation While not as common as it once was certain organizations arenrsquot motivated to introduce sustainability until government regulations are in place

3 Lack of a formal strategy for sustainability Without a formal strategy it is difficult for companies to determine where they need to go

4 Determining appropriate metrics Companies must choose metrics that are useful demonstrate impact and say something about their own corporate environment

5 Calculating metrics Standard algorithms and calculations exist to calculate metrics but companies must find the appropriate ones and use them

6 Finding quality data to plug into those calculations As in any Business Intelligence project if the quality of the data is questionable then so are the sustainability metrics themselves

7 Determining the scope of the sustainability project The scope is critical Narrow it down to something achievable feasible and useful

Step 4 Learn from Best Practices

What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde

bull Assign an executive champion Without an executive champion to drive the project initiatives are more likely to lack a holistic view and a clear vision for an implementation strategy they may take longer to implement and theyrsquore less likely to yield the required results To provide motivation consider linking the championrsquos salary directly to sustainability savings or to the increased revenues that result from sustainability efforts

bull Implement internal training and education Educate employees on what to expect and what is expected from them

bull Improve communication Communicate both to employees and to stakeholders outside of the organization

bull Start to think about alternative energy management and control strategies

bull Engage the use of technology and services For companies not sure where to begin a sustainability consultant can assist with program selection as can vendors such as Actuate which has a sustainability management solution in place

Step 5 Get Started

Understand that sustainability development is a business opportunity Donrsquot look at it solely as environmental although that is also important Itrsquos an opportunity for companies to introduce more cost-effective processes and procedures and to become more cost effective in their vehicle fleet manufacturing delivery etc

bull Create globally consistent metrics and goals Large agencies have to make sure that the entire group is on board and that they have consistent metrics and consistent goals across the enterprise

bull Find the value and drive the action What is the value of monitoring these sustainability areas and whatrsquos the course of action if you see that theyrsquore going off kilter or are not tracking as expected

bull Start small Initiatives such as these can become incredibly complex very quickly Start small and build in the complexity with each ensuing project

bull Get buy in People need to understand what the metrics are why theyrsquore there and what they mean to each individualrsquos situation (as reflected in individual bonus plans perhaps) Measure using industry-accepted methodologies and industry-accepted protocols continually improve metrics through optimization and forecasting and constantly optimize metrics and forecast into the future

bull As much as possible accurately report to everybody environmental performance Let employees shareholders customers and regulators know If data is questionable fix it get quality processes in place and then run the metrics

bull Determine environmental impact Has waste been reduced Has resource utilization been reduced Has the company improved environmental factors

Also consider using an Open Source vendor The Open Source community is beginning to develop sustainability metrics and Open Source reduces the costs of developing metrics while software costs for the project are reduced as well

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly ldquo

rdquo What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde ldquo

rdquo

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Step 6 Move from Green Hype to Sustainable Action

A successful sustainability initiative involves identifying metrics that will translate into cost savings and benefits while avoiding metrics that are not likely to yield required results To accomplish this start small start with a small department within the organization and then repeat this continuing to repeat it throughout the enterprise

bull Start with basic conservation Change behavior reduce consumption and in the process increase investment

bull Start reusing Improve productivity improve efficiency and create less waste

bull When this translates into cost savings re-invest Grow make larger improvements and increase involvement

Projects that make good starting points

bull Measure carbon dioxide emissions throughout a value chain or product lifespan Look for potential improvements

bull Ensure regulatory compliance By knowing what the regulations are companies can determine what metrics need to be in place

bull Identify ways to promote and profit from more environmentally-respectful goods and services Companies can promote environmentally-respectful goods and services while also using sustainability to help the company

Monitor the effects of each project to determine which strategies have the most impact both physically in terms of

the environment and financially in terms of revenues and cost savings Publicize how metrics are tracking over time

Actuate for Sustainability Management

Actuate for Sustainability Management is a solution by Actuate that integrates highly interactive visually rich dashboards There are pre-built sustainability scorecards strategy maps and over 100 pre-built metrics across the economic social and environmental aspects of sustainability

The Actuate BIRT Performance Scorecard supports the metrics defined including

bull Reducing an organizationrsquos environmental footprint

bull Building green facilities and buildings

bull Compliance and reporting

bull Manufacturing

bull Community and engagement

bull Human development including employee well-being and satisfaction

Actuate for Sustainability Management provides collaboration across regulators consumers and non-governmental organizations Dashboards and scorecards come integrated with reporting so as to improve reporting to stakeholders both outside and inside of an organization All of the products are built on Actuatersquos dependable cost-effective and scaleable platform

Performance Management solutions help organizations understand act on and influence business decisions processes and measures of business success The 2009 Actuate Performance Management Excellence Awards will honor customer success stories in four key areas Over the next several issues Perform Magazine will highlight some of the entries in these categories

Category 1 Go Green

Each year the concept of environmental responsibility has implications for both the private and public sector specifically with regards to how each measures the performance of their operations For organizations using the Actuate BIRT Performance Scorecard to measure the progress of organizational Green initiatives how have they responded to the challenge and how do they use the BIRT Performance Scorecard to ensure they stay on track

Category 2 The Perfect Slice

Successful Performance Management comes in all sizes Some initiatives are enterprise-wide while others are focused around specific business units or functions yet still encompass a holistic approach to Performance Management by looking beyond financial indicators to a more balanced set of indicators This category includes organizations deploying the Actuate BIRT Performance Scorecard with a focus on improving the performance of individual business units or functions and includes the measurement of people and processes

Category 3 Big Bang

Carefully executed Performance Management initiatives begin with a measured approach to the initial implementation and quickly expand to other parts of the organization aligning business units to strategy at each step This category is open to Actuate customers who initially implemented the Actuate BIRT Performance Scorecard to a limited user community and through careful change management and planning expanded the use of the BIRT Performance Scorecard throughout the organization

Category 4 Super Size

Award-winning enterprises achieve breakthrough results in the financial customer operational and people perspectives of their business and leverage internal champions across the organization to ensure ongoing and sustainable success The key to achieving these results lies in total visibility of all business units aligned to strategy This category is open to any Actuate customer with a fully deployed enterprise-wide Actuate BIRT Performance Scorecard implementation

Actuate Performance Management Excellence Awards2009

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HealthNow New York Inc headquartered in Buffalo is one of New York Statersquos leading healthcare companies doing business as BlueCross BlueShield of Western New York BlueShield of Northeastern New York HealthNow in the Central New York region and Brokerage Concepts Inc in Pennsylvania

Improving the health of people and communities are HealthNowrsquos corporate priorities and for more than 70 years the company has been a proactive partner in health working to improve the quality of care and the quality of life for everyone it serves In 2008 HealthNow provided access to care to more than 820000 members and in 2008 company revenues grew to $227 billion

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution and describe what you were trying to achieve as a group function or department

A few years ago HealthNow New York Inc determined that the key to its continued success would be its ability to differentiate itself from other healthcare plans in ways that could not be readily duplicated or copied by their competitors In an increasingly crowded marketplace to get the attention of new customers and retain existing ones HealthNow needed to set itself apart from others

This lasting competitive advantage needed to come from an organizational culture that was dedicated to a relentless focus on meeting customersrsquo needs It needed to be highly responsive supportive flexible and nimble particularly as the healthcare marketplace continues to change with more responsibility placed upon its customers

To that end a new business model was implemented to provide the framework for customer focus Under the new structure the company was divided into four strategic business units (SBUs) each responsible for financial contribution customer satisfaction medical utilization and market share of a specific book of business

Each SBU includes its own set of functions including sales account and broker management product configuration customer intelligence pricing enrollment and billing customer service medical management and HR support Each business unit is led by an executive who is fully accountable for the unit operations and for bottom-line performance of the entire business unit Each SBU is supported by various corporate support functions (Actuarial IT Legal etc)

Implementation of the new business model began with a reorganization of the senior management structure The senior management of each SBU has specific incentive goals as well as strategic goals aligned with the corporate incentive Those strategic goals then drill down to ldquoteamrdquo incentives and to a blend of strategic and operational goals

This was a completely new way of looking at our business It was a blank slate requiring new processes and new methodology as well as an examination of existing metrics and processes to determine what added value and where the strengths weaknesses opportunities and gaps were

Under this new structure the Government Programs State and Federal products SBU ndash which historically had some inefficient end-to-end processes lacked internal controls and had minimal oversight of financial performance ndash was able to set a foundation and develop a growth strategy In order to achieve this mission and to align track monitor improve and communicate performance the Senior Vice President of the Government Programs SBU elected to utilize a Performance Management framework via the Actuate BIRT Performance Scorecard

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

As a point of reference the Government Programs SBU is comprised of a State Government Programs team a Federal Government Programs team an Operations team and a Sales team The Performance Management design team was comprised of the Actuate system administratorfacilitator the Government Program financial reporting manager and two SBU data analysts Input from the various teamsrsquo management staff was gathered as the design got more granular

Discussions around the design of the Government Programs scorecard began with two basic questions

1 What are the handful (ideally six to eight) of key performance indicators that are necessary to run and manage your business and to indicate that yoursquore on the right path to achieving your goals

Defining the key performance indicators was a challenge that required the Actuate system administrator in a facilitative role to get intimately involved in order to keep the discussions focused and high level and to limit scope creep The incentive goals were clearly defined at the corporate and SBU level however the tough question was how should they drill down in the BIRT Performance Scorecard The facilitator posed the following questions to the other members of the design team

bull How do you usually look at your business

bull How are the primary source documents that capture this information structured

bull What other ways do you look at your business

Taking the answers to these questions a step further the facilitator asked the next question Is the drill-down structure the same for the core strategic or team metrics The answer was yes By taking this approach we were provided with consistency in how the teams look at their business and the performance of their core indicators

Once the incentive and strategic goals were identified more leading and lagging operational measures were defined such as

bull Call centers

bull Accuracy

bull Quality

bull Sales Performance

2 Who is your audience

Through the entire measure selection and definition process the design team was constantly reminded to keep a second question ndash who is your audience ndash in mind This helped keep the focus on the critical few and keep the number of metrics down to a manageable amount Links to supporting documentation were created to provide easy access to the granular data without burdening the scorecardrsquos objective

The audience in this case was the SBUrsquos Senior Vice President followed by the State Director Federal Director Operations Director and Sales General Manager It then cascades down to each directorrsquos management team and the data providers

In order to provide a complete and consistent picture of State and Federal performance for senior management where

gt Performance Management Excellence Awards

HealthNow New YorkCategory 2 Entry The Perfect Slice

gt Performance Management Excellence Awards

[ Figure 131 Homepage Map ]

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Vol 6 Issue 2 2009

possible the same or comparable measures were created for each team For example when looking at the various call center metrics ndash even if the definitions and targets slightly differed ndash if one team was consistently exceeding or meeting their target it sparked group discussion around best practices processes staffing and target definition

Utilization of Maps continues to play a major role in communicating performance Again focusing on our audience there is a Map at the Senior VP level which then links to a high-level Map for the State director and staff and for the Federal director and staff The one-page snapshot allows management to easily view performance then to drill down to specifics via additional detailed Maps or Books Because the audience embraces the Maps concept a ldquoWhere is itrdquo Map containing all Maps and Books by SBU was created Itrsquos a quick and easy reference tool

3 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

Quantitative results are achieved through the promotion of visibility and awareness The Return on Investment may not fit a conventional definition but can be measurable and accomplished by challenging the data targets and accompanying commentaryaction plan narrative to drive performance improvement Are the targets realistic yet aggressive Are action plans being documented and carried out Are the actions discussions and decisions leading to improved performance and processes

Government Programsrsquo membership is measured and monitored in various ways via the BIRT Scorecard and other sources For example Federal membership is measured by product then by plan It is also measured by market then by product then by plan By creatively visualizing performance in multiple ways via a Map those same data results can sometimes become very obvious telling a different story that may not be obvious via standard reporting methods It may clearly illustrate that a specific product in a specific market is continuously under-performing for example Fact-based decisions can then be made as to whether or not to continue with this product in this market or it may initiate discussions as to how to grow and retain profitable membership for this product in this market

Another more recent example is an initiative to track claims-review savings By reviewing claims via various processes what savings can be recouped or realized What specific areas are State and Federal teams focusing on that can contribute to overall savings for the SBU Again where applicable there should be consistency in the metrics across

teams Placeholders are included to promote visibility to keep them in the forefront even though the data or processes may not be in place yet But by capturing results on one page via a Map it bridges potential gaps between the teams promoting awareness and synergy across the SBU

4 Qualitative results What ldquosoftrdquo or intangible benefits has the group department or organization received as a result of this solution

A major benefit of the scorecard framework for the Government Programs SBU has been the identification and alignment of roles responsibilities and accountability

The SBUrsquos Senior VP monthly leadership meeting focuses on four areas

bull Performance Performance is covered via the existing incentive strategic and operational metrics

bull Action plans Documenting action plans in the Performance Management Software Suite versus verbalizing action plans establishes ownership and accountability At subsequent meetings management follows up on key action items or plans to determine whether or not the corrective action did take place and if yes did it have the desired results

bull Strategic direction The strategic direction of the various teams is captured as a springboard to strategic thinking discussions and planning So as not to lose sight of short- and long-term strategic planning this aspect of the business now is housed in the BIRT Scorecard completing the strategic planning of the ldquoHow are we going to get thererdquo and ldquoAre we there yetrdquo cycle This holistic approach helps minimize the chances of our scorecard becoming too focused on operational performance and keeps strategic planning dynamic and visible

The value of these metrics is not in the data but in the commentary The individual teamsrsquo strategic direction ldquometricsrdquo are subjective red = 1 yellow = 2 green = 3 The target = 3 Each metric includes a description of the specific strategic path we need to research or move forward on as well as what goal achievement it supports The ldquodatardquo ndash or color ndash is based on basic questions like What did you hope to achieve this month vs What did you actually achieve this month Were there any successes barriers obstacles In addition to accountability the entire SBU benefits from the sharing of information having meaningful discussion taking appropriate action and collaboration

bull Key initiatives The last critical component is the identification and alignment of key initiatives that

are necessary to support achievement of the various incentives strategic goals and direction and operational goals As with the strategic direction metrics the value is in the narrative with the color reflecting what was accomplished for the specific reporting period

5 Innovation Why should this solution be considered an Innovative Solution What makes it unique groundbreaking and superior What unintended results did you realize

Over time the Government Programs Performance Management framework evolved into an innovative solution The process drives performance and isnrsquot necessarily focused on ldquocolorrdquo Rather itrsquos about having the right people in the same room on a regular basis to drive meaningful discussion and to take appropriate action to improve performance

Outside of the standard processes it was the monthly review process that drove effectiveness revisions enhancements and restructuring of the meeting schedule agenda and format The Government Program financial reporting manager would meet with each director and general manager to review their scorecard for completeness as well as for performance from an operational perspective The State and Federal team directors would then meet with their respective management teams to review and discuss performance results in preparation for the joint Government Programs Leadership Meetings The audience included the Senior VP down to team managers key data analysts (data providers) and support function representatives Through trial and error management learned to maximize their time and effectiveness by concentrating on key metrics and topics rather than trying to review all metrics identify leading indicators versus only outcome results and include strategic thinking and initiatives Today the monthly leadership

meetings are much more productive and look at strategic and operational performance

As involvement and participation increased in the team meetings as well as in the leadership meetings it removed silos opened communications enabled the sharing of information and best practices and promoted teamwork across the SBU But most importantly it brought about an awareness and a sense of unity and commitment within the SBU to achieve their goals something that was lacking before

While it was not part of the initial scope management realized shortly after implementation that efficiencies could be gained by replacing an in-depth hard copy monthly report with BIRT-generated results Since the BIRT Scorecard contained the same data with supporting narrative ndash plus additional metrics with narrative ndash monthly performance was captured via a monthly report Book various Maps and BIRT-generated reports Elimination of the hard-copy report was an unintended way of encouraging a more active use of the Performance Management software by management to monitor performance thereby increasing user familiarity with the contents features functionality and navigation

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

Sustainability is achieved through a continuous process of revisiting the scorecard when there are organizational changes looking at the business direction shifts goal changes process changes etc To ensure that metrics are still relevant a filtering process is held with each director and general manager every six to eight months or as necessary During this exercise questions such as the following are asked

gt Performance Management Excellence Awards gt Performance Management Excellence Awards

[ Figure 132 CEOrsquos Book ]

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Vol 6 Issue 2 2009

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

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3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

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  1. Button 3
Page 15: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

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Vol 6 Issue 2 2009

The Challenge

Guiding a ship requires visibility into navigation operational performance and up-to-date information to make decisions This type of customer challenge drove ABS Nautical Systems

to incorporate Actuatersquos BIRT technology into its NS5 fleet management software

A leading software provider to the maritime industry ABS and its NS5 modular ERP system help customers manage principal operating expenses associated with vessels and offshore rigs ABS provided basic scheduled reporting and offered ad hoc reports in response to specific customer requests but customers demanded better functionality including the ability to easily extract and create both standard and custom reports

Producing reports to customersrsquo satisfaction took time as reporting was not central to ABS Nautical Systemsrsquo expertise Further it took valuable programmer time away from developing new features and functions for its core product This created the need for ABS to leverage a tool to provide highly-developed rich information application functionality increasing the power of its fleet management software while enabling its customers to access more flexible reporting tools

The Solution

With its own expertise in Java development and their existing reporting ABS searched for an Open Source reporting platformtool that they could leverage and seamlessly embed in their software ndash one that would deliver for ABS and their customers both immediately and for future expansion After considering Jaspersoft Actuate and Pentaho ABS selected Actuate and BIRT for their on-demand reporting solution

ldquoActuate has a clear roadmap and direction scalable platform financial stability and Open Source development platform The Actuate offering was an excellent fit because the technology

ABS Nautical Systems (NS) is one of the leading providers of fleet management software packages available to the

marine and offshore industries It offers a fully integrated modular approach to managing the principal operational expenses associated with a vessel or offshore rig ranging from maintenance and repair to regulatory requirements purchasing and inventory and crew management and payroll

SAFE AT SEAABS Nautical Systems A Case Study

ldquoBoth the technology roadmap and scaling are key It was an excellent fit for us actually ndash you had the right technology yoursquore Open Source based BIRT technology was key and you were the most helpful in helping us do the prototyperdquo

- Sandipan Bhattacharya ABS Nautical Systems

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Vol 6 Issue 2 2009

used Open Source BIRT allowing us great flexibility in developing NS5 Actuate was most supportive in helping ABS NS do the prototype ndash both their Professional Services as well as the account teamrdquo states Sandipan Bhattacharya CTO for ABS NS

The new BIRT-based on-demand reporting tool within ABS NS5 is a web-based application that enables clients to quickly and easily generate custom reports from any NS5 module It handles reporting for the central elements of operational management ndash from regulatory requirements to payroll to planned maintenance programs But it takes NS5 beyond operational duties to consolidate data from across software modules to better monitor key performance indicators (KPIs) such as time to repair spare parts turnover and purchasing cycle times

The interactive information views that BIRT provides help fleet managers to achieve maximum efficiency empowering NS5 software users to get what they want in terms of the reports they need in the way they want them as each department or company may want to look at data in a different way Lastly that same data is more accurate because it comes as near real-time information at the time they need and can be benchmarked against how well they are performing to provide trends for evaluation

BenefitsResults

bull Speed time to market with new features by focusing on core competence in its software platform This allows ABS to focus development on its core product and improve customer satisfaction by rolling out and providing complete reporting modules This also helps decrease development expenses and support costs

bull Expand available market with completely new product lines enabling ABS to increase its client base to companies that didnrsquot know about them or had previously disregarded their offering The additional modules make the product more attractive to existing clients creating additional revenue sources for ABS

ldquoThe BIRT Open Source platform allows for a great deal of flexibility in the development stages Additionally the ease of integration into our OEM package was a great benefit Lastly the Actuate and BIRT offering has proved to be well suited to ABS Nautical Systemsrsquo needs and Actuatersquos roadmap shows what we can do in the futurerdquo states Bhattacharya

Self-serve customization drives flexibility and ease of creating reports BIRT empowers users to produce reports customized to their individual and departmental needs and preferences And as government reporting requirements change they can

Solution OverviewCompany Profile Integrated fleet management software for marine industries

Industry Software

Location Houston with offices worldwide

Challenges

bull Customer need for better more timely reports

bull Enable customers to self-serve for ad hoc needs and regulatory requirements

bull Focus on core software expertise and feature requests

Solution Integrate Actuatersquos Open Source-based BIRT reporting with ABSrsquo NS5 fleet management software

Business Benefits

bull Faster time to market broadened portfolio

bull Ease of integration development flexibility

bull Increased visibility into operations aids customer competitiveness efficiency

bull Users empowered to customize reports

Does your companyrsquos mission and vision statement place the customer at the center of your universe

Does it promise to maximize customer value and deliver the best customer experience possible If it does your mission and vision statement is surprisingly similar to nearly every other organization And much like them chances are your organization is struggling to make this vision a reality to actually reinvent itself as truly customer-centric

ldquoCustomer-centricrdquo has become the new buzz phrase thrown about at most executive planning sessions and has replaced ldquoinnovativerdquo as the new mandatory strategic language The truth is it takes a lot more to become customer-centric than changing the company vision ndash it requires a departure from years of tradition a clear look at who and what your organization is and a deeper understanding of what motivates your customers to buy from you or from your competitor Fortunately the cost to make this change is surprisingly low while the benefits and the returns can be shockingly high

Finding Your Customer

Customer-centric implies that the customer is central to the organization but this is too esoteric to have any real meaning An organization turns materials into a product or service which is then sold Everything the organization does must lead to this

event (with no sale after all therersquos no customer) This logic works for most people and most organizations and it logically follows that the focus should be upon the creation of the best possible product or service because this is what causes a prospect to become an actual customer

This logic fits nicely with traditional thinking It was popularized by Michael Porterrsquos value chain approach in the mid-80s The value chain is a string of critical processes that begins with raw materials or inputs and ends with a product or service delivered to a happy customer Thinking this way makes sense because it is easy to place the customer at the end of the process But this mind-set doesnrsquot just affect how executives structure the organization it weaves its way into every aspect of how the organization manages itself and how managers make decisions

For example the finance department performs the close process each month so that it can deliver financial information to managers with actual bottom-line responsibility These managers from executives to cost center managers are financersquos customers just as shareholders are when they deliver quarterly reports Once these reports are delivered finance goes back to the business of accounting and managing revenue and expense until the next month Engineers work to design new products that will keep them one step ahead of their competition Manufacturing produces goods to meet customer

respond more quickly adapting them by themselves instead of depending on ABS to supply reports

ldquoActuate empowers users to get exactly the reports they need the way they want them Empowerment is key as well as flexibility as each department or company may want to look at data in a different wayrdquo states Bhattacharya

Rich information drives efficiency through increased visibility and better insight into operations improving customer competitiveness With highly accurate real-time information on how well they are performing management can control both overall and specific costs of operating and maintaining their shipping fleets ldquoThey donrsquot have to wait hellip they can see all contributing factors day to day It helps improve efficiency at every level For the first time a shiprsquos captain can have insight into the operational performance of his ship while still at seardquo says Bhattacharya

Creating the Customer-Centric

OrganizationFinding Your Customer-Critical Path

By David F GiannettoCEO

The Telos Group

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33

Vol 6 Issue 2 2009

orders or demand projections The sales department courts potential buyers so that they become actual customers Once they do so sales then returns to identify new targets and tries to transition them Manufacturing works to refill shelves Engineering continues developing products

Employees throughout the organization are focused upon delivering the product or service for which they are responsible The product attributes become the value proposition that will appeal to their customer regardless of whether or not this is an internal or external customer Employees are trained to think in terms of product development delivery and value The organization becomes even if it doesnrsquot know it product centric Believing that a mainstream management theory such as the value chain approach could not be wrong or outdated management is comfortable with this view of their world When they try to become customer-centric they do not know how

Making the Change

Consider for example the electricity powering the light by which you are reading this article It is a fairly simple product that was mainstreamed decades ago and except for new types of power generation it has remained essentially unchanged The traditional value chain for this industry is fairly straightforward Power is generated by a complex and often dangerous power plant and it is delivered to the customer via a complicated and often dangerous network The customer then consumes this power and must pay for it creating the

need for back-office operations such as accounting finance and customer service

Given the complexity of power generation and delivery operations the organization is staffed by a high percentage of engineers many with doctorate degrees and years of specialized training The generation and delivery assets themselves are maintained by highly-trained highly-specialized workers A large percentage of the management team also comes from this background and rose through the ranks of organizations identically structured Combined these employees represent over 75 percent of the organization

Collectively these employees create a culture that is consistent in almost every power utility in the world Their cultures respect academic achievement technical expertise and years of experience in the industry They typically believe in rigid structures inflexible procedures and consistency in design and execution They are truly product focused

Given the potential hazards it is easy to see why they behave the way they do But what happens when this type of organization has to compete in a more open market when transparency is increased or when the customer such as a municipality has a stronger voice or is under the growing influence of being green What happens when the power company must become truly customer-centric

It is nearly impossible for them to succeed Seventy-five percent of the organization has little to do with or has little understanding of the customer

Departing from Tradition

While this product focus is exaggerated within a power utility largely because of their technical nature these factors affect nearly every organization Employees who have great influence within the organization will not yield it to those who have less but who understand the customer better Funding is unlikely to shift from traditionally respected areas to those areas that most affect the customer

For a power utility this means that engineers who have often dedicated their entire lives to the study of their work must be considered equal to project managers and customer service agents most of who do not hold any degrees Money resources and staffing must focus on project management and call center technology not just on million- or billion-dollar assets There must be recognition that these areas equally affect the customer This new perspective must be executed by executives who have spent their entire careers adhering to the traditional values of the product-centric culture But this shift is what customer-centric really means truly understanding and meeting your customersrsquo needs It starts with the customer more specifically it starts with a prospect

Customer-Critical Path

This means that the traditional value chain must be rethought and renamed more appropriately to the customer-critical path A prospect travels this path on their journey to become a customer a customer travels this path toward the goal of becoming a happy customer This is the true value chain of the organization ndash a string of processes that become critical because they directly affect your customer regardless of the product service organizational chart academic degree or bias Find the customer-critical path and you can guide your customers through your organization in the way that is most meaningful to both them and you

But not all customer needs are the same even within an industry that has only one real product like a power utility The customer-critical path may start in several places meeting the needs of

several different types of customers ndash household customers that simply need power turned on or major projects that require significant project management and pre-planning Eventually these starting paths merge It will occur at the point at which all customers are happy From there they may take a different path

again some will terminate service or have new needs There is not one value chain there are many paths a customer might travel through your organization

This new approach offers significant value for organizations that adopt it It allows them to better understand their customers so that they can be more effectively segmented and targeted by products or services This drives the bottom line in several ways A stronger value proposition increases appeal thus driving revenue Better service and customer interaction improve the customer experience and increase customer loyalty driving customer lifetime value

The customer-critical path also becomes a vital decision-making tool for management It provides a clear and unbiased perspective on where resources should and should not be spent It defines the relative worth of projects assets and expenditures painting a clear picture of what the results will be if the customer-critical path is not

properly maintained

And if your mission and vision statement says you are customer-centric it makes your strategic plan more than simple semantics It makes it actionable setting your organization on a path towards true differentiation and market leadership Properly crafted the customer-critical path becomes a pleasant stroll through the park for your customers and it can also become the most profitable path for your organization

David F Giannetto is CEO of The Telos Group co-author of The Performance Power Grid The Proven Method to Create and Sustain Superior

Organizational Performance (J Wiley amp Sons 2006) and a professor in the Executive MBA program of Rutgers University

Mr Giannetto can be reached by email at dgiannettotelosconsultingcom

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35

Vol 6 Issue 2 2009

I Introduction and Background

Who the NMDP is

The National Marrow Donor Programreg (NMDP) and Be The Match FoundationSM are non-profit organizations dedicated to creating an opportunity for all patients to receive the bone marrow or umbilical cord blood transplant they need when they need it Every year thousands of people of

all ages are diagnosed with leukemia and other life-threatening diseases Many of them will die unless they get a bone marrow or cord blood transplant from a matching donor Seventy percent of people do not have a matching donor in their family and depend on the Be The Match RegistrySM to find a match to save their life

The Beginning

When their 10-year-old daughter Laura was diagnosed with leukemia Robert Graves DVM and his wife Sherry were ready to do anything they could to save her They agreed to try a bone marrow transplant from an unrelated donor ndash the first ever for a leukemia patient Laura received her transplant in 1979 at the Fred Hutchinson Cancer Research Center The treatment gave her an extra year and a half of life

The National Bone Marrow

Donor Program

The Balanced ScorecardVision into

Action JourneyBy Howard Rohm

President amp CEO Balanced Scorecard Institute under the guidance of The National Marrow Donation

Programrsquos Michael Boo Chief Strategy Officerand John Rudrud Senior Analyst

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37

Vol 6 Issue 2 2009

The experience inspired Dr Graves to create a national registry of volunteers willing to donate marrow His early efforts brought together other patient families and transplant doctors spurring a federal mandate that led to the creation of the National Marrow Donor Program NMDP began connecting patients with unrelated donors in 1987 with a registry of just 10000 volunteers

What the NMDP Does

The Be The Match Registry has grown to more than seven million donors and over 150000 cord blood units the largest and most racially and ethnically diverse registry of its kind in the world Medical advances are making marrow and umbilical cord blood transplants available to more patients all the time Since 1987 NMDP has arranged for more than 35000 transplants to give patients a second chance at life Today NMDP facilitates more than 4300 transplants a year

Planning for the Future

Many more patients still need help In order to meet the needs of all patients NMDP will need to facilitate 10000 transplants per year by 2015 That is more than double the number of transplants the organization facilitates today NMDP is working to meet this need but canrsquot do it alone Efforts are sustained by

bull A global network of more than 490 leading hospitals blood centers cord blood banks and laboratories

bull Agreements with donor centers cooperative donor registries and cord blood banks worldwide through which the program provides patients access to more than 12 million donors and 300000 cord blood units

bull Continued support from the US government which has entrusted the NMDP to operate the CW Bill Young Cell Transplantation Program the federal program supporting bone marrow and cord blood donation and transplantation

bull Partnerships with corporations service organizations student groups faith-based communities and other organizations

A new and different way of thinking about the NMDPrsquos long-term strategy was required in order to make sure that NMDP would be capable of delivering 10000 transplants per year in 2015 ldquoBusiness as usualrdquo would not get the organization where it needed to be NMDP needed to identify and

aggressively improve in strategic areas critical to the delivery of 10000 transplants

II The Balanced Scorecard Approach

Background

The strategic planning system that had been used at NMDP up to 2007 was a fairly well-developed planning process that tracked initiative performance under seven primary areas of strategic focus While this approach provided a measure of strategic planning for the organization it was too focused on activities and projects rather than on impacts

Early in 2007 NMDP leaders Gordon Bryan Chief Financial Officer and Michael Boo Chief Strategy Officer began developing strategic metrics designed to identify measure and communicate progress in strategic plan objective areas

Selection

As the senior management team evaluated options to integrate broader strategic metrics with the existing strategic business plan the Balanced Scorecard approach emerged as a leading candidate during the initial assessment of planning models because it

bullEncourages development of strategic themes and provides the ability to focus on areas where long-term continuous improvement is needed

bullPermits identification of cause-and-effect relationships between Strategic Objectives within each Theme

bull Facilitates communication of Strategic Objectives that can be portrayed on a strategy map that is easily understood by all employees and stakeholders and shows how the perspectives work together to achieve the mission

bull Assures that the organization focuses on Strategic Objectives and Measures from a CustomerStakeholder perspective and a PeopleKnowledgeTechnology perspective (Historically the organizationrsquos focus was skewed toward the Process and Financial perspectives)

bull Enables leadership to track Strategic Objective performance over the long term rather than tracking the status of supporting projects and initiatives

bull Creates a framework for prioritization of projects initiatives and funding opportunities based on contribution to and support of the Strategic Objectives

bull Allows organizational Strategic Objectives to be cascaded into Department Objectives thereby giving each employee

a more specific understanding of how his or her work impacts and contributes to the Strategic Objectives

bull Drives long-term continuous improvement as Strategic Measures improve over time

bull Facilitates a ldquolearning organizationrdquo where corrective actions are implemented in cases where Strategic or Department Objective Measures are not being met

The NMDP planning team looked at a number of planning models ndash including Balanced Scorecard Six Sigma Lean and TQM ndash and concluded that the Balanced Scorecard approach provided the most versatile and relevant framework for future growth and organizational development

III Scorecard Development ndash NMDP Officer Input

Early to mid 2007 NMDP began the Balanced Scorecard development effort with the help of consultants from the Balanced Scorecard Institute

A comprehensive review of the organizationrsquos strengths weaknesses opportunities and threats organizational pains organization enablers vision and mission was conducted over several days with NMDP officers and senior management These sessions produced a new Mission and Vision Statement and four Strategic Themes (rather than the original seven)

The former mission statement Extend and improve life through innovative cellular transplant therapies was changed to We save lives through cellular transplantation ndash science service and support

ldquoThis new mission statement captures and communicates more directly why we exist and it clearly articulates the three ways that we are able to save livesrdquo explained NMDP CEO Dr Jeffrey Chell

The Overarching Strategic Result in place of a vision statement was developed and shared with employees throughout the organization Meeting the need for 10000 transplants per year by 2015 The senior management team developed a longer more descriptive version of this statement but felt that the shorter version had more impact

ldquoWersquove found that the Overarching Strategic Result has been a great tool to get people thinking about how we will manage

to do more than double our current transplant volumes in a relatively short time ndash just five years from nowrdquo explained initiative sponsor Michael Boo ldquoThis has driven a lot of creative thinking around how to dramatically improve the efficiencies and cost effectiveness of many internal systems and delivery processesrdquo

The four Strategic themes that the NMDP officer group developed and agreed upon are

bull Global Access and Acceptance ndash Getting to Yes Overcome non-cell source barriers to transplant (eg no insurance no transportation no post-transplant support)

bull Deliver Excellent Stakeholder Experience Overcome Cell Source Barriers (making sure a cell source donation is available when itrsquos needed ndash adult or cord)

bull Research Pursue research to improve cell transplantation as a therapy

bull Culture of Excellence Keep up-to-date with talent structure and resources needed to continually improve transplant services

IV Scorecard Development ndash Senior Management

Throughout the spring and summer of 2007 four Theme Teams comprised of senior management met to develop

Theme Team strategy maps that included Theme Objectives by Perspective and proposed Measures for each Theme Objective These served as detailed roadmaps with specific objective areas identified ndash where NMDP needed to focus in order to improve them

The four Theme Team maps were subsequently

combined into an NMDP Strategy Map that included all relevant components from each theme This NMDP Strategy Map is comprised of 13 Strategic Objectives 46 Strategic Measures and seven Strategic Initiatives

Narratives were captured regarding the intent and ultimate end state for each Strategic Objective and detailed descriptions were created for measurement information including rational frequency owner and unit of measure

At this stage in the process the team named the Balanced Scorecard tool ldquoVision into Actionrdquo or ViA ndash NMDPrsquos strategic Performance Management tool On June 1 2007 the ViA Themes and NMDP Strategy Map details were presented to the board of directors by senior management and approved along with a plan to proceed to the next phase of department cascading

A ViA Communications Team was formed to communicate ViA progress to employees on the development of the new Mission Statement Vision Statement and the 13 Strategic Objectives This was done through a combination of pulse checks newsletters

38

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39

Vol 6 Issue 2 2009

intranet messaging e-mails from the CEO leadership training all-staff meetings and promotional contests This was an extremely integral step in the ViA roll-out that provided transparency and generated excitement around the benefits of ViA

V ViA Department Cascading

All departments at the NMDP were scheduled for sessions to develop their department Objectives Measures and Initiatives These were facilitated by internal subject matter experts and included an initial two-day exercise to help the department identify where and how each department contributed to the NMDP Strategic Objectives Worksheets and other preparation material were provided to each participant and collected prior to the cascade session The pre-work information was used to expedite the affinity exercises at each session

These were followed up with sessions to finalize detailed measures with individual measure owners Department teams were comprised of five to 10 key members of each department

The department cascading efforts provided a number of primary benefits to the organization including

bull The articulation in easy-to-understand terms of how each department contributes to the overall success of the Strategic Objectives and ultimately the NMDP Mission

bull A tool to identify gaps or overlaps between departments that can also be a tool for departments to communicate with each other in terms of supporting initiatives

bull A tool for each department to prioritize initiatives and activities Also it provided a mechanism to support requests for funding new opportunities

bull A clear framework for corrective action where measures are not being successfully met

bull A common format and mechanism for reporting department performance to officers and senior management

bull A common format and mechanism for reporting and reviewing department performance with staff

bull Help with the development of individual job performance appraisal content ndash which should be designed to support Department Objectives

Department Cascading was complete in early 2009 There are over 200 separate department measures that are tracked each quarter

VI NMDP ViA Today

NMDP has established a department Champions Council Members of the Council are becoming experts at using the automated ViA software Today this is being used at department staff meetings to facilitate discussion around corrective action for underperforming or unacceptable Department Measures Departments use the department Strategy Maps to guide staff meeting discussions on performance measures and corrective action plans

ldquoAll business cases or requests for funding must be submitted with clear tangible descriptions of how the effort will impact ViA Strategic Objectivesrdquo explained Boo ldquoOnce all business cases have been submitted to the officer group for final approval they are prioritized in order of their impact on ViA Strategic Objectivesrdquo

All strategic and department measures are required to be reported into the ViA system each quarter Each is color coded based on an officer-approved target matrix Each measure owner is required to provide comments regarding the measure performance for the quarter and discuss how he or she expects the measure to end the fiscal year This information is shared with senior management for review and follow-up with measure owners ifwhen necessary

Senior management uses the color-coded NMDP Strategic Map as a basis for discussing quarterly performance and identifying

Strategic Objective areas that may need attention corrective action andor more resources NMDP tries to focus not only on corrective action items but also highlight success stories where outstanding performance has been reported

All employees will soon have access to the web-based ViA application to provide as much transparency and visibility as possible in order to become a truly strategy-focused organization

ldquoVision into Action has been successful within the organization to a great extent because of the consistent support and guidance provided by NMDP leadership including our CEO Dr Jeffrey Chell my fellow Officers and the Board of Directorsrdquo said Boo

Howard Rohm President and CEO of the Balanced Scorecard Institute is a Performance Management trainer consultant and technologist with over 40 years experience Mr Rohm has helped dozens of organizations worldwide build Balanced Scorecard and other performance planning and management systems

48

Pe

rform

Mag

azine

Info

rmatio

n in

Actio

n

A community for BIRT users and developers sponsored by Actuate

A Report Writing Portal lets your end users browse reports modify them and even develop

new ones You can set one up in three steps when you use AJAX-based BIRT technology

Because the end user tools to modify and create reports are AJAX-based therersquos no desktop

software to install Users get the reports they need quicker while the burden on development

resources to create new reports is reduced

BIRT Exchange is a community site that offers the broadest collection of resources for the Eclipse BIRT (Business Intelligence

and Reporting Tools) project and for integrating spreadsheets with Java The site is sponsored by Actuate a co-leader of the BIRT project

Sponsored by

See a Demo

at Booth

602

For More Information

Contact us by phone at 1-800-884-8665

1-913-851-5300 from outside of the United States

wwwbirt-exchangecom wwwactuatecom

40

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41

Vol 6 Issue 2 2009

JCIrsquos previous approach of one-off negotiating as well as its spirit of continuous improvement and customer focus meant that it had only one-off measures in every location The company for example had 127 variations of the measure lsquomaintenance managementrsquo Many were very similar but since they were not exactly the same they could not be compared effectively Inefficiency at gathering and maintaining data at different locations across the globe made the task difficult as well Data was collected any way possible thrown into a cell or a Power Point slide and handed in at the end of the month It was highly inefficient extremely customized at every location and did not allow any ability to benchmark compare or look at best practices These concerns and requirements drove JCI on its scorecarding journey

The Solution

In initiating its scorecarding solution JCI first had to establish the right measures Business leaders were chosen for all of the scorecard categories and for each of them a business owner was selected for each region these business leaders and owners were responsible for defining the standards and measures Data collection systems in some cases proved difficult there wasnrsquot always centralized information available ndash in some cases data needed to be gathered right down at the account level This meant that the process of data collection and identifying measures was a significant job To get started though JCIrsquos web programmers were able to put up some scorecards quickly to allow the company to start architecting measures this allowed business leaders across the globe to start identifying their measures and to put the processes in place regionally to collect information

Before committing to a technology JCI wanted to know 100 percent of their business requirements and this was the point of their web-based scorecard To assist in this endeavor Actuate ndash prior to selection ndash let the company test drive their product The JCI team went through and looked at every single screen determining where they had to configure the tool and for every single screen they also made what they called a lsquoblueprintrsquo creating an Excel template with fields to correspond with every field on each screen It was incredibly detailed work but they wanted to ensure no mistakes were made and that the business requirements were defined To accomplish this there was an extreme amount of detailed coordination globally with twice-weekly meetings for the worldwide team in charge of the initiative A byproduct of the process was that the team learned to use the Actuate BIRT Performance Scorecard and basically built all of the blueprints for the project design

JCIrsquos audience for the project upon kick off were the 300 external customers that would have access to this information Customers previous to this were getting their information via Excel and PowerPoint In addition to these external customers was the population of approximately 1000 internal users within JCI itself These included account leaders and functional leaders including those from HR Finance Safety etc

Three primary functions of the project were

1 To replace the PowerPoint slides used in global and regional monthly internal operational reviews

2 To very quickly be able to become best in class JCI wanted everyone who had an account to be able to see where they sat compared to their peers This provided individuals ndash when faced with a problem ndash the ability to quickly identify and contact others who had solved the same issue

3 To standardize customer faith in contractually required performance measures This was a key goal of the company which felt that if they were going to benchmark and compare they needed to bring in the best practices learned at one location to their work at other locations

These three primary functions were heavily loaded in JCIrsquos rating system as the company set out to choose the right software for their scorecarding project It was also important that the software be intuitive as there was no time for hundreds of hours of global-wide training The software had to be rapid and easily configurable with limited IT assistance As JCI is a very large organization with a lot of systems in place the team in charge also wanted the software to be easily adjustable to the companyrsquos rapidly changing business they didnrsquot want to have to get into queue for IT every time a change had to be introduced or a new customer added

JCI Chooses ActuateFour vendors were evaluated for JCIrsquos scorecarding project with a global team in place to provide a systematic discussion of the defined business process and requirements The product chosen was the BIRT Performance Scorecard JCI had 30 days of Actuate Professional Services and planned for monthly micro improvements and quarterly macro improvements

Upon purchasing the BIRT Scorecard in January 2007 using the blueprints theyrsquod established already the company wrote their business processes They were able to go live in 90 days helped by the homework they did with the blueprints the web scorecard and the data collection processes It was an incredibly smooth implementation overall

The Results

Whereas JCI originally started out with a model of one-off negotiations with customer measures the scorecarding project has led to approximately 70 percent agreement on JCI standard metrics The company does a customer satisfaction survey both annually and quarterly and aims to demonstrate evidence towards continual improvement

Since implementation of the project the company has also been solving its data integrity issues Previously two regions might have been using the same words but not the same data collection methods ndash this made it impossible to introduce benchmarking and comparison between areas Now those problems are being solved and benchmarking and comparison are possible to the benefit of both JCI as it strives for best-in-class status and its customers

By David F GiannettoCEOThe Telos Group

Johnson Controls Incorporated (JCI) is a $38 billion company with a total of 140000 employees working out of more than 1300 locations in 125 countries worldwide Headquartered in Milwaukee Wisconsin the company provides a range of services including

real-estate portfolio management property management facility management and design and construction services

To initiate its scorecarding project JCI began by creating five categories of measurement Business Performance (this includes all financial measures) Service Delivery Customer Satisfaction Safety and People While the other four categories may be typical to most organizations the Service Delivery category was designed to take JCIrsquos measurements down to the client-site level which includes over 300 locations globally where the company has contracts In some cases there might be one staff member assigned to manage a single building while other times a staff member has a whole portfolio they maintain Measuring performance at all of these locations and levels proved a complex undertaking

Strategic Initiatives

Like all service providers JCI has to demonstrate that they add value Scorecarding allows them to do this both internally

and externally using data-driven results Since JCI has always been very much a data-driven organization anyway with a manufacturing background this was a natural fit for the corporation

JCIrsquos organization-wide motto is to be as good everywhere as they are somewhere Theyrsquove found that in any one account they may excel in several areas but perhaps not in all areas elsewhere though on another account someone else might have the skills needed to fill in those gaps The companyrsquos goal was to share information and communicate it between different locations across the globe allowing the company as a whole to get better faster and to benefit from the skills and strengths of its individual members Scorecarding was introduced as a way to help share this information and to introduce benchmarking within the company

The Requirements

To get started on their scorecarding initiative JCI examined each of their US contracts What they found was that there were no standards between clients and therefore no ability to benchmark Customers though wanted the ability to find out how they stood in relation to other customers This was impossible under the circumstances

Global Operational Excellence and a Performance Scorecard System A Case Study of

Johnson Controls Incorporated

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Vol 6 Issue 2 2009

Out of Touch With Crucial Data

Previously when Helzbergrsquos divisional and regional vice presidents went on the road access to their key performance metrics was restricted Without a laptop and a WiFi or hotel network connection to the internet they were ldquoflying blindrdquo according to Greg Backhus Helzbergrsquos Director of Data Warehouse and Decision Support Systems As a result they did a lot of faxing it was the only way they could get the current data that they needed in order to

About Webalo

Webalo technology transforms enterprise applications and data to make them compatible with mobile

devices This eliminates the need for traditional custom programming reducing the deployment of mobile applications from weeks or months to in most cases less than a day The resulting ldquoanywhere anytime on-demandrdquo availability of enterprise data on handheld devices turns such devices into viable alternatives to desktop laptop and palmtop computer hardware and lets mobile employees work more productively ndash on the spot ndash to solve problems answer questions monitor operations close sales and make informed decisions

The Webalo Mobile Dashboard Service ndash available in both internet-based and enterprise intranet-based implementations ndash lets non-IT business administrators securely specify the content of mobile-accessible information and the companion Webalo Proxy Server configures it in seconds to conform to the native user interface of any BlackBerry Windows Mobile Pocket PC Palm Symbian or Java-enabled smartphone

CLARITY CUT AND CARATSHow Helzberg Diamonds Made Sales Data Clearer Eliminated

Delays and Lightened the Load for its Divisional Executives

A diamond may be forever but a lot has changed in how theyrsquove been marketed and sold during Helzberg Diamondsrsquo nine decades in business A single store has expanded to nearly 300 locations from coast to coast and border to border Sales can also be made online now And information about every sale can be accessed in an instance through the companyrsquos enterprise systems

bull Compare actual sales to their goals and plans

bull Determine transaction counts for total dollar volume and average sales value

bull Break down sales by product category

bull Monitor attachment rates for products and services related to the main product sale

For example onsite at individual stores it was difficult to gauge how an active price-reduction sale was affecting unit and dollar

volumes unless there happened to be a coffee shop next door with a WiFi connection that would let Helzbergrsquos executives access the enterprise system

The Three Cs of Information Access

The three Cs of diamond grading ndash clarity cut and carats (or weight) ndash turned out to be applicable to data access as well But it took a transition to handheld devices and to the Webalo Mobile Dashboard to achieve it

Though laptop computers had gotten lighter and lighter over the years they were still considerably heavier than the Pocket PC-based smartphones that Helzbergrsquos executives used Since they were carrying those handhelds in addition to their laptops the VPs were open to the idea of being able to

bull Access sales metrics on their handhelds

bull Have data available on-demand from any location with a wireless signal

bull Navigate quickly to the figures they needed

bull Get updates to their metrics automatically

bull Review the information offline

It was the only time that carrying less weight ndash or carats ndash added more value Using a simple step-by-step wizard Helzbergrsquos support staff was able to configure their enterprise reports in a matter of hours They then assigned access privileges to each executive to control who could see what information and uploaded the file to the Webalo server That satisfied how data was ldquocutrdquo

For each mobile user regardless of the brand and model of smartphone they used the Webalo Mobile Dashboard conformed the information to the devicesrsquo user interface The application worked and looked exactly like any other application developed specifically for their mobile devices the on-screen text was easy to read and navigation used the same menu structure That meant there was no learning curve to delay user acceptance and productivity Clarity was essential and the Mobile Dashboard delivered it right down to the ability to bookmark commonly-referred-to displays for instant reference enhancing on-the-spot productivity even more

Speed and Simplicity

Productivity was also improved on the IT side Without the need for custom programming to conform the information to each smartphone brand and model deployment was reduced from months to hours

Since adopting the Webalo Mobile Dashboard Backhus says ldquoThe Divisional VPs find it invaluable They get more done because they donrsquot have the delays they used to haverdquo Decisions that used to have to wait for current data are now made right away relying on the right data presented in the right format

44

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Vol 6 Issue 2 2009

Sustainable practice has graduated from being market hype

to becoming a strategic initiative important for driving a successful enterprise It not only reduces a companyrsquos impact on the environment but can help organizations achieve a competitive advantage to build their brand impact top and bottom line and improve customer acquisition satisfaction and retention

Creating a road map towards sustainable management can require an entire shift in corporate thinking one that involves searching for buy-in at all levels establishing useful metrics and introducing practices that get beyond the green hype The end result though is not just a greener organization but also one with a more prosperous future

Why Sustainability

In August 2008 a survey undertaken by CIO Insight examined green practices in business focusing on the reasons why CIOs introduce sustainability efforts into their organizations The number one reason why organizations went green the study found was that the people within those companies sincerely had a concern for the environment A total of 74 percent of respondents answered that way 32 percent of which listed it as their most influential driver

Other influential drivers named in the survey included

Financial Drivers Companies found sustainability to be a way of cutting costs If they could cut energy costs not only would that help the environment but it would also help create cost savings The second most popular answer in the CIO Insight study financial impacts are key to implementing sustainability in most organizations Examples of financial impacts possible from sustainability were presented at CFO

2 The CFO Green

Conference which took place in May 2008

bull Dupont reduced its CO2 emissions by 70 percent saving the company $3 billion

bull FedEx redesigned its delivery trucks making them more aerodynamic This reduced the amount of particulate pollutants nitrogen and carbon the trucks put into the atmosphere and it also reduced the companyrsquos fuel costs exceptionally

Customer Image In the CIO Insight survey the third motive listed by CIOs for introducing sustainability ndash at 64 percent ndash was company image Consumers are becoming more and more aware of whether companies or organizations are living up to sustainability ideals They will notice if a company image or brand value reflects this concern for the environment Meaningful sustainability efforts can help gain customer approval as in the following case

bull Wal-Mart and Procter amp Gamble together agreed to sell liquid laundry detergent only in concentrated form This saved shelf space for Wal-Mart reduced water use by 400 million gallons for Procter amp Gamble and eliminated 45 million pounds of plastic waste

Regulatory Requirements The surveyrsquos fourth most popular reply ndash at only 25 percent ndash were current or potential regulations including the cap and trade systems being implemented which will require companies to buy carbon and sell carbon credits

Shareholder Pressure Finally at fifth in the CIO Insight survey ndash with 14 percent of responses ndash was shareholder or public pressure pressure building from shareholders to put forth sustainability efforts Pressure at this level is often mixed though as shareholders are also likely to express a desire that they donrsquot want shares to decline in value The general message may be that it is fine to introduce sustainability measures only as long as there is no risk that they will hurt the company

A Road Map Towards Sustainability

Step 1 Identify What Drives Your Organization

The first step in the road map towards sustainability is identifying key drivers Some drivers vary from one organization to another while others seem to drive any organization regardless of the industry Drivers incude

Internal drivers

bull Cost cuttings and savings

bull Employees including both the satisfaction of current employees as well as the recruitment and retention of future employees

bull Investment

External Drivers

bull Stakeholders including both those within the company ndash the employees discussed above ndash as well as stakeholders outside of the company

bull Brand awareness because consumers are becoming increasingly aware of the choices that are available to them and are making choices based on a companyrsquos green initiatives

Future drivers

bull Tax incentives

bull The recruitment and retention of future customers

Step 2 Select Your Metrics

In general terms sustainability metrics will fall into one of four major categories those that affect the climate those that affect the oceans those that affect human health and those that affect common issues like the land the water the wildlife etc

Within those large categories are smaller areas of interest that companies must examine to introduce organization-wide sustainability management carbon monoxide use energy consumption water consumption and fuel consumption are prime examples

Carbon Monoxide Use Many of the questions companies are asking themselves in regards to carbon monoxide use include

A Road Map of Key

Sustainability Metrics

That Impact Bottom

Line

46

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47

Vol 6 Issue 2 2009

bull How much carbon monoxide do we produce

bull Which processes in our overall manufacturing or delivery use produce the most emissions

bull Can we determine the indirect emissions For example leave a computer plugged in and itrsquos still on the grid creating an indirect carbon dioxide emitter How can we measure that

bull Whatrsquos our cost Do we have metrics that tell us what our CO2 emissions cost us

bull Can we predict into the future If we continue on this path without doing anything where will we be next month Next quarter Next year

Some examples of metrics related to carbon monoxide use include carbon dioxide emissions per employee (similar to revenue per employee) carbon footprint metrics and transportation distances

Energy Consumption Areas of interest related to corporate energy consumption may include the following

bull How much do we consume From what sources

bull Are we on the grid Are we using solar power or wind power or another alternative power

bull How much is used by our data center How do we make the data center greener

bull Where can we reduce consumption

Companies today are reducing energy consumption in a variety of ways by introducing energy audits and looking at energy-saving appliances and also through energy incentive programs for employees within which companies can incentivize and introduce bonus plans

Water Consumption An examination of a companyrsquos water consumption may include some of the following queries

bull How much water do we currently use and where

bull Where in our processes do we use the most water

bull Can we predict how much wersquore going to use in the future

Some of the examples of metrics that companies introduce in terms of water consumption include improved water quality how much impact low-flow or low-volume toilets have on water consumption and how much water is or can be recycled

Fuel Consumption Questions to consider in relation to fuel consumption include

bull How much fuel do we use

bull Where are the inefficiencies

bull Whatrsquos being predicted for fuel usage in the future

bull Can we analyze our logistics so that we can determine how to reduce our fuel consumption For example where are our trucks traveling How are they traveling What kinds of loads are they carrying

Step 3 Recognize Challenges

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly As such easier ways to enhance communication and to increase visibility need to be introduced both inside and outside of an organization

There are also constantly evolving requirements measures and standards of success With everything so new companies are challenged to find ways to compare their sustainability efforts with other organizations The biggest challenge in implementing these processes or attracting metrics may be that they require an entire shift in thinking Additional challenges that exist in the implementation of a sustainability model include

1 Financial concerns Companies must truly see potential for returns on investment or these initiatives can become non-starters or stall

2 Lack of regulatory motivation While not as common as it once was certain organizations arenrsquot motivated to introduce sustainability until government regulations are in place

3 Lack of a formal strategy for sustainability Without a formal strategy it is difficult for companies to determine where they need to go

4 Determining appropriate metrics Companies must choose metrics that are useful demonstrate impact and say something about their own corporate environment

5 Calculating metrics Standard algorithms and calculations exist to calculate metrics but companies must find the appropriate ones and use them

6 Finding quality data to plug into those calculations As in any Business Intelligence project if the quality of the data is questionable then so are the sustainability metrics themselves

7 Determining the scope of the sustainability project The scope is critical Narrow it down to something achievable feasible and useful

Step 4 Learn from Best Practices

What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde

bull Assign an executive champion Without an executive champion to drive the project initiatives are more likely to lack a holistic view and a clear vision for an implementation strategy they may take longer to implement and theyrsquore less likely to yield the required results To provide motivation consider linking the championrsquos salary directly to sustainability savings or to the increased revenues that result from sustainability efforts

bull Implement internal training and education Educate employees on what to expect and what is expected from them

bull Improve communication Communicate both to employees and to stakeholders outside of the organization

bull Start to think about alternative energy management and control strategies

bull Engage the use of technology and services For companies not sure where to begin a sustainability consultant can assist with program selection as can vendors such as Actuate which has a sustainability management solution in place

Step 5 Get Started

Understand that sustainability development is a business opportunity Donrsquot look at it solely as environmental although that is also important Itrsquos an opportunity for companies to introduce more cost-effective processes and procedures and to become more cost effective in their vehicle fleet manufacturing delivery etc

bull Create globally consistent metrics and goals Large agencies have to make sure that the entire group is on board and that they have consistent metrics and consistent goals across the enterprise

bull Find the value and drive the action What is the value of monitoring these sustainability areas and whatrsquos the course of action if you see that theyrsquore going off kilter or are not tracking as expected

bull Start small Initiatives such as these can become incredibly complex very quickly Start small and build in the complexity with each ensuing project

bull Get buy in People need to understand what the metrics are why theyrsquore there and what they mean to each individualrsquos situation (as reflected in individual bonus plans perhaps) Measure using industry-accepted methodologies and industry-accepted protocols continually improve metrics through optimization and forecasting and constantly optimize metrics and forecast into the future

bull As much as possible accurately report to everybody environmental performance Let employees shareholders customers and regulators know If data is questionable fix it get quality processes in place and then run the metrics

bull Determine environmental impact Has waste been reduced Has resource utilization been reduced Has the company improved environmental factors

Also consider using an Open Source vendor The Open Source community is beginning to develop sustainability metrics and Open Source reduces the costs of developing metrics while software costs for the project are reduced as well

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly ldquo

rdquo What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde ldquo

rdquo

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49

Vol 6 Issue 2 2009

Step 6 Move from Green Hype to Sustainable Action

A successful sustainability initiative involves identifying metrics that will translate into cost savings and benefits while avoiding metrics that are not likely to yield required results To accomplish this start small start with a small department within the organization and then repeat this continuing to repeat it throughout the enterprise

bull Start with basic conservation Change behavior reduce consumption and in the process increase investment

bull Start reusing Improve productivity improve efficiency and create less waste

bull When this translates into cost savings re-invest Grow make larger improvements and increase involvement

Projects that make good starting points

bull Measure carbon dioxide emissions throughout a value chain or product lifespan Look for potential improvements

bull Ensure regulatory compliance By knowing what the regulations are companies can determine what metrics need to be in place

bull Identify ways to promote and profit from more environmentally-respectful goods and services Companies can promote environmentally-respectful goods and services while also using sustainability to help the company

Monitor the effects of each project to determine which strategies have the most impact both physically in terms of

the environment and financially in terms of revenues and cost savings Publicize how metrics are tracking over time

Actuate for Sustainability Management

Actuate for Sustainability Management is a solution by Actuate that integrates highly interactive visually rich dashboards There are pre-built sustainability scorecards strategy maps and over 100 pre-built metrics across the economic social and environmental aspects of sustainability

The Actuate BIRT Performance Scorecard supports the metrics defined including

bull Reducing an organizationrsquos environmental footprint

bull Building green facilities and buildings

bull Compliance and reporting

bull Manufacturing

bull Community and engagement

bull Human development including employee well-being and satisfaction

Actuate for Sustainability Management provides collaboration across regulators consumers and non-governmental organizations Dashboards and scorecards come integrated with reporting so as to improve reporting to stakeholders both outside and inside of an organization All of the products are built on Actuatersquos dependable cost-effective and scaleable platform

Performance Management solutions help organizations understand act on and influence business decisions processes and measures of business success The 2009 Actuate Performance Management Excellence Awards will honor customer success stories in four key areas Over the next several issues Perform Magazine will highlight some of the entries in these categories

Category 1 Go Green

Each year the concept of environmental responsibility has implications for both the private and public sector specifically with regards to how each measures the performance of their operations For organizations using the Actuate BIRT Performance Scorecard to measure the progress of organizational Green initiatives how have they responded to the challenge and how do they use the BIRT Performance Scorecard to ensure they stay on track

Category 2 The Perfect Slice

Successful Performance Management comes in all sizes Some initiatives are enterprise-wide while others are focused around specific business units or functions yet still encompass a holistic approach to Performance Management by looking beyond financial indicators to a more balanced set of indicators This category includes organizations deploying the Actuate BIRT Performance Scorecard with a focus on improving the performance of individual business units or functions and includes the measurement of people and processes

Category 3 Big Bang

Carefully executed Performance Management initiatives begin with a measured approach to the initial implementation and quickly expand to other parts of the organization aligning business units to strategy at each step This category is open to Actuate customers who initially implemented the Actuate BIRT Performance Scorecard to a limited user community and through careful change management and planning expanded the use of the BIRT Performance Scorecard throughout the organization

Category 4 Super Size

Award-winning enterprises achieve breakthrough results in the financial customer operational and people perspectives of their business and leverage internal champions across the organization to ensure ongoing and sustainable success The key to achieving these results lies in total visibility of all business units aligned to strategy This category is open to any Actuate customer with a fully deployed enterprise-wide Actuate BIRT Performance Scorecard implementation

Actuate Performance Management Excellence Awards2009

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Vol 6 Issue 2 2009

HealthNow New York Inc headquartered in Buffalo is one of New York Statersquos leading healthcare companies doing business as BlueCross BlueShield of Western New York BlueShield of Northeastern New York HealthNow in the Central New York region and Brokerage Concepts Inc in Pennsylvania

Improving the health of people and communities are HealthNowrsquos corporate priorities and for more than 70 years the company has been a proactive partner in health working to improve the quality of care and the quality of life for everyone it serves In 2008 HealthNow provided access to care to more than 820000 members and in 2008 company revenues grew to $227 billion

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution and describe what you were trying to achieve as a group function or department

A few years ago HealthNow New York Inc determined that the key to its continued success would be its ability to differentiate itself from other healthcare plans in ways that could not be readily duplicated or copied by their competitors In an increasingly crowded marketplace to get the attention of new customers and retain existing ones HealthNow needed to set itself apart from others

This lasting competitive advantage needed to come from an organizational culture that was dedicated to a relentless focus on meeting customersrsquo needs It needed to be highly responsive supportive flexible and nimble particularly as the healthcare marketplace continues to change with more responsibility placed upon its customers

To that end a new business model was implemented to provide the framework for customer focus Under the new structure the company was divided into four strategic business units (SBUs) each responsible for financial contribution customer satisfaction medical utilization and market share of a specific book of business

Each SBU includes its own set of functions including sales account and broker management product configuration customer intelligence pricing enrollment and billing customer service medical management and HR support Each business unit is led by an executive who is fully accountable for the unit operations and for bottom-line performance of the entire business unit Each SBU is supported by various corporate support functions (Actuarial IT Legal etc)

Implementation of the new business model began with a reorganization of the senior management structure The senior management of each SBU has specific incentive goals as well as strategic goals aligned with the corporate incentive Those strategic goals then drill down to ldquoteamrdquo incentives and to a blend of strategic and operational goals

This was a completely new way of looking at our business It was a blank slate requiring new processes and new methodology as well as an examination of existing metrics and processes to determine what added value and where the strengths weaknesses opportunities and gaps were

Under this new structure the Government Programs State and Federal products SBU ndash which historically had some inefficient end-to-end processes lacked internal controls and had minimal oversight of financial performance ndash was able to set a foundation and develop a growth strategy In order to achieve this mission and to align track monitor improve and communicate performance the Senior Vice President of the Government Programs SBU elected to utilize a Performance Management framework via the Actuate BIRT Performance Scorecard

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

As a point of reference the Government Programs SBU is comprised of a State Government Programs team a Federal Government Programs team an Operations team and a Sales team The Performance Management design team was comprised of the Actuate system administratorfacilitator the Government Program financial reporting manager and two SBU data analysts Input from the various teamsrsquo management staff was gathered as the design got more granular

Discussions around the design of the Government Programs scorecard began with two basic questions

1 What are the handful (ideally six to eight) of key performance indicators that are necessary to run and manage your business and to indicate that yoursquore on the right path to achieving your goals

Defining the key performance indicators was a challenge that required the Actuate system administrator in a facilitative role to get intimately involved in order to keep the discussions focused and high level and to limit scope creep The incentive goals were clearly defined at the corporate and SBU level however the tough question was how should they drill down in the BIRT Performance Scorecard The facilitator posed the following questions to the other members of the design team

bull How do you usually look at your business

bull How are the primary source documents that capture this information structured

bull What other ways do you look at your business

Taking the answers to these questions a step further the facilitator asked the next question Is the drill-down structure the same for the core strategic or team metrics The answer was yes By taking this approach we were provided with consistency in how the teams look at their business and the performance of their core indicators

Once the incentive and strategic goals were identified more leading and lagging operational measures were defined such as

bull Call centers

bull Accuracy

bull Quality

bull Sales Performance

2 Who is your audience

Through the entire measure selection and definition process the design team was constantly reminded to keep a second question ndash who is your audience ndash in mind This helped keep the focus on the critical few and keep the number of metrics down to a manageable amount Links to supporting documentation were created to provide easy access to the granular data without burdening the scorecardrsquos objective

The audience in this case was the SBUrsquos Senior Vice President followed by the State Director Federal Director Operations Director and Sales General Manager It then cascades down to each directorrsquos management team and the data providers

In order to provide a complete and consistent picture of State and Federal performance for senior management where

gt Performance Management Excellence Awards

HealthNow New YorkCategory 2 Entry The Perfect Slice

gt Performance Management Excellence Awards

[ Figure 131 Homepage Map ]

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Vol 6 Issue 2 2009

possible the same or comparable measures were created for each team For example when looking at the various call center metrics ndash even if the definitions and targets slightly differed ndash if one team was consistently exceeding or meeting their target it sparked group discussion around best practices processes staffing and target definition

Utilization of Maps continues to play a major role in communicating performance Again focusing on our audience there is a Map at the Senior VP level which then links to a high-level Map for the State director and staff and for the Federal director and staff The one-page snapshot allows management to easily view performance then to drill down to specifics via additional detailed Maps or Books Because the audience embraces the Maps concept a ldquoWhere is itrdquo Map containing all Maps and Books by SBU was created Itrsquos a quick and easy reference tool

3 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

Quantitative results are achieved through the promotion of visibility and awareness The Return on Investment may not fit a conventional definition but can be measurable and accomplished by challenging the data targets and accompanying commentaryaction plan narrative to drive performance improvement Are the targets realistic yet aggressive Are action plans being documented and carried out Are the actions discussions and decisions leading to improved performance and processes

Government Programsrsquo membership is measured and monitored in various ways via the BIRT Scorecard and other sources For example Federal membership is measured by product then by plan It is also measured by market then by product then by plan By creatively visualizing performance in multiple ways via a Map those same data results can sometimes become very obvious telling a different story that may not be obvious via standard reporting methods It may clearly illustrate that a specific product in a specific market is continuously under-performing for example Fact-based decisions can then be made as to whether or not to continue with this product in this market or it may initiate discussions as to how to grow and retain profitable membership for this product in this market

Another more recent example is an initiative to track claims-review savings By reviewing claims via various processes what savings can be recouped or realized What specific areas are State and Federal teams focusing on that can contribute to overall savings for the SBU Again where applicable there should be consistency in the metrics across

teams Placeholders are included to promote visibility to keep them in the forefront even though the data or processes may not be in place yet But by capturing results on one page via a Map it bridges potential gaps between the teams promoting awareness and synergy across the SBU

4 Qualitative results What ldquosoftrdquo or intangible benefits has the group department or organization received as a result of this solution

A major benefit of the scorecard framework for the Government Programs SBU has been the identification and alignment of roles responsibilities and accountability

The SBUrsquos Senior VP monthly leadership meeting focuses on four areas

bull Performance Performance is covered via the existing incentive strategic and operational metrics

bull Action plans Documenting action plans in the Performance Management Software Suite versus verbalizing action plans establishes ownership and accountability At subsequent meetings management follows up on key action items or plans to determine whether or not the corrective action did take place and if yes did it have the desired results

bull Strategic direction The strategic direction of the various teams is captured as a springboard to strategic thinking discussions and planning So as not to lose sight of short- and long-term strategic planning this aspect of the business now is housed in the BIRT Scorecard completing the strategic planning of the ldquoHow are we going to get thererdquo and ldquoAre we there yetrdquo cycle This holistic approach helps minimize the chances of our scorecard becoming too focused on operational performance and keeps strategic planning dynamic and visible

The value of these metrics is not in the data but in the commentary The individual teamsrsquo strategic direction ldquometricsrdquo are subjective red = 1 yellow = 2 green = 3 The target = 3 Each metric includes a description of the specific strategic path we need to research or move forward on as well as what goal achievement it supports The ldquodatardquo ndash or color ndash is based on basic questions like What did you hope to achieve this month vs What did you actually achieve this month Were there any successes barriers obstacles In addition to accountability the entire SBU benefits from the sharing of information having meaningful discussion taking appropriate action and collaboration

bull Key initiatives The last critical component is the identification and alignment of key initiatives that

are necessary to support achievement of the various incentives strategic goals and direction and operational goals As with the strategic direction metrics the value is in the narrative with the color reflecting what was accomplished for the specific reporting period

5 Innovation Why should this solution be considered an Innovative Solution What makes it unique groundbreaking and superior What unintended results did you realize

Over time the Government Programs Performance Management framework evolved into an innovative solution The process drives performance and isnrsquot necessarily focused on ldquocolorrdquo Rather itrsquos about having the right people in the same room on a regular basis to drive meaningful discussion and to take appropriate action to improve performance

Outside of the standard processes it was the monthly review process that drove effectiveness revisions enhancements and restructuring of the meeting schedule agenda and format The Government Program financial reporting manager would meet with each director and general manager to review their scorecard for completeness as well as for performance from an operational perspective The State and Federal team directors would then meet with their respective management teams to review and discuss performance results in preparation for the joint Government Programs Leadership Meetings The audience included the Senior VP down to team managers key data analysts (data providers) and support function representatives Through trial and error management learned to maximize their time and effectiveness by concentrating on key metrics and topics rather than trying to review all metrics identify leading indicators versus only outcome results and include strategic thinking and initiatives Today the monthly leadership

meetings are much more productive and look at strategic and operational performance

As involvement and participation increased in the team meetings as well as in the leadership meetings it removed silos opened communications enabled the sharing of information and best practices and promoted teamwork across the SBU But most importantly it brought about an awareness and a sense of unity and commitment within the SBU to achieve their goals something that was lacking before

While it was not part of the initial scope management realized shortly after implementation that efficiencies could be gained by replacing an in-depth hard copy monthly report with BIRT-generated results Since the BIRT Scorecard contained the same data with supporting narrative ndash plus additional metrics with narrative ndash monthly performance was captured via a monthly report Book various Maps and BIRT-generated reports Elimination of the hard-copy report was an unintended way of encouraging a more active use of the Performance Management software by management to monitor performance thereby increasing user familiarity with the contents features functionality and navigation

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

Sustainability is achieved through a continuous process of revisiting the scorecard when there are organizational changes looking at the business direction shifts goal changes process changes etc To ensure that metrics are still relevant a filtering process is held with each director and general manager every six to eight months or as necessary During this exercise questions such as the following are asked

gt Performance Management Excellence Awards gt Performance Management Excellence Awards

[ Figure 132 CEOrsquos Book ]

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Vol 6 Issue 2 2009

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

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3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

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Page 16: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

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Vol 6 Issue 2 2009

used Open Source BIRT allowing us great flexibility in developing NS5 Actuate was most supportive in helping ABS NS do the prototype ndash both their Professional Services as well as the account teamrdquo states Sandipan Bhattacharya CTO for ABS NS

The new BIRT-based on-demand reporting tool within ABS NS5 is a web-based application that enables clients to quickly and easily generate custom reports from any NS5 module It handles reporting for the central elements of operational management ndash from regulatory requirements to payroll to planned maintenance programs But it takes NS5 beyond operational duties to consolidate data from across software modules to better monitor key performance indicators (KPIs) such as time to repair spare parts turnover and purchasing cycle times

The interactive information views that BIRT provides help fleet managers to achieve maximum efficiency empowering NS5 software users to get what they want in terms of the reports they need in the way they want them as each department or company may want to look at data in a different way Lastly that same data is more accurate because it comes as near real-time information at the time they need and can be benchmarked against how well they are performing to provide trends for evaluation

BenefitsResults

bull Speed time to market with new features by focusing on core competence in its software platform This allows ABS to focus development on its core product and improve customer satisfaction by rolling out and providing complete reporting modules This also helps decrease development expenses and support costs

bull Expand available market with completely new product lines enabling ABS to increase its client base to companies that didnrsquot know about them or had previously disregarded their offering The additional modules make the product more attractive to existing clients creating additional revenue sources for ABS

ldquoThe BIRT Open Source platform allows for a great deal of flexibility in the development stages Additionally the ease of integration into our OEM package was a great benefit Lastly the Actuate and BIRT offering has proved to be well suited to ABS Nautical Systemsrsquo needs and Actuatersquos roadmap shows what we can do in the futurerdquo states Bhattacharya

Self-serve customization drives flexibility and ease of creating reports BIRT empowers users to produce reports customized to their individual and departmental needs and preferences And as government reporting requirements change they can

Solution OverviewCompany Profile Integrated fleet management software for marine industries

Industry Software

Location Houston with offices worldwide

Challenges

bull Customer need for better more timely reports

bull Enable customers to self-serve for ad hoc needs and regulatory requirements

bull Focus on core software expertise and feature requests

Solution Integrate Actuatersquos Open Source-based BIRT reporting with ABSrsquo NS5 fleet management software

Business Benefits

bull Faster time to market broadened portfolio

bull Ease of integration development flexibility

bull Increased visibility into operations aids customer competitiveness efficiency

bull Users empowered to customize reports

Does your companyrsquos mission and vision statement place the customer at the center of your universe

Does it promise to maximize customer value and deliver the best customer experience possible If it does your mission and vision statement is surprisingly similar to nearly every other organization And much like them chances are your organization is struggling to make this vision a reality to actually reinvent itself as truly customer-centric

ldquoCustomer-centricrdquo has become the new buzz phrase thrown about at most executive planning sessions and has replaced ldquoinnovativerdquo as the new mandatory strategic language The truth is it takes a lot more to become customer-centric than changing the company vision ndash it requires a departure from years of tradition a clear look at who and what your organization is and a deeper understanding of what motivates your customers to buy from you or from your competitor Fortunately the cost to make this change is surprisingly low while the benefits and the returns can be shockingly high

Finding Your Customer

Customer-centric implies that the customer is central to the organization but this is too esoteric to have any real meaning An organization turns materials into a product or service which is then sold Everything the organization does must lead to this

event (with no sale after all therersquos no customer) This logic works for most people and most organizations and it logically follows that the focus should be upon the creation of the best possible product or service because this is what causes a prospect to become an actual customer

This logic fits nicely with traditional thinking It was popularized by Michael Porterrsquos value chain approach in the mid-80s The value chain is a string of critical processes that begins with raw materials or inputs and ends with a product or service delivered to a happy customer Thinking this way makes sense because it is easy to place the customer at the end of the process But this mind-set doesnrsquot just affect how executives structure the organization it weaves its way into every aspect of how the organization manages itself and how managers make decisions

For example the finance department performs the close process each month so that it can deliver financial information to managers with actual bottom-line responsibility These managers from executives to cost center managers are financersquos customers just as shareholders are when they deliver quarterly reports Once these reports are delivered finance goes back to the business of accounting and managing revenue and expense until the next month Engineers work to design new products that will keep them one step ahead of their competition Manufacturing produces goods to meet customer

respond more quickly adapting them by themselves instead of depending on ABS to supply reports

ldquoActuate empowers users to get exactly the reports they need the way they want them Empowerment is key as well as flexibility as each department or company may want to look at data in a different wayrdquo states Bhattacharya

Rich information drives efficiency through increased visibility and better insight into operations improving customer competitiveness With highly accurate real-time information on how well they are performing management can control both overall and specific costs of operating and maintaining their shipping fleets ldquoThey donrsquot have to wait hellip they can see all contributing factors day to day It helps improve efficiency at every level For the first time a shiprsquos captain can have insight into the operational performance of his ship while still at seardquo says Bhattacharya

Creating the Customer-Centric

OrganizationFinding Your Customer-Critical Path

By David F GiannettoCEO

The Telos Group

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Vol 6 Issue 2 2009

orders or demand projections The sales department courts potential buyers so that they become actual customers Once they do so sales then returns to identify new targets and tries to transition them Manufacturing works to refill shelves Engineering continues developing products

Employees throughout the organization are focused upon delivering the product or service for which they are responsible The product attributes become the value proposition that will appeal to their customer regardless of whether or not this is an internal or external customer Employees are trained to think in terms of product development delivery and value The organization becomes even if it doesnrsquot know it product centric Believing that a mainstream management theory such as the value chain approach could not be wrong or outdated management is comfortable with this view of their world When they try to become customer-centric they do not know how

Making the Change

Consider for example the electricity powering the light by which you are reading this article It is a fairly simple product that was mainstreamed decades ago and except for new types of power generation it has remained essentially unchanged The traditional value chain for this industry is fairly straightforward Power is generated by a complex and often dangerous power plant and it is delivered to the customer via a complicated and often dangerous network The customer then consumes this power and must pay for it creating the

need for back-office operations such as accounting finance and customer service

Given the complexity of power generation and delivery operations the organization is staffed by a high percentage of engineers many with doctorate degrees and years of specialized training The generation and delivery assets themselves are maintained by highly-trained highly-specialized workers A large percentage of the management team also comes from this background and rose through the ranks of organizations identically structured Combined these employees represent over 75 percent of the organization

Collectively these employees create a culture that is consistent in almost every power utility in the world Their cultures respect academic achievement technical expertise and years of experience in the industry They typically believe in rigid structures inflexible procedures and consistency in design and execution They are truly product focused

Given the potential hazards it is easy to see why they behave the way they do But what happens when this type of organization has to compete in a more open market when transparency is increased or when the customer such as a municipality has a stronger voice or is under the growing influence of being green What happens when the power company must become truly customer-centric

It is nearly impossible for them to succeed Seventy-five percent of the organization has little to do with or has little understanding of the customer

Departing from Tradition

While this product focus is exaggerated within a power utility largely because of their technical nature these factors affect nearly every organization Employees who have great influence within the organization will not yield it to those who have less but who understand the customer better Funding is unlikely to shift from traditionally respected areas to those areas that most affect the customer

For a power utility this means that engineers who have often dedicated their entire lives to the study of their work must be considered equal to project managers and customer service agents most of who do not hold any degrees Money resources and staffing must focus on project management and call center technology not just on million- or billion-dollar assets There must be recognition that these areas equally affect the customer This new perspective must be executed by executives who have spent their entire careers adhering to the traditional values of the product-centric culture But this shift is what customer-centric really means truly understanding and meeting your customersrsquo needs It starts with the customer more specifically it starts with a prospect

Customer-Critical Path

This means that the traditional value chain must be rethought and renamed more appropriately to the customer-critical path A prospect travels this path on their journey to become a customer a customer travels this path toward the goal of becoming a happy customer This is the true value chain of the organization ndash a string of processes that become critical because they directly affect your customer regardless of the product service organizational chart academic degree or bias Find the customer-critical path and you can guide your customers through your organization in the way that is most meaningful to both them and you

But not all customer needs are the same even within an industry that has only one real product like a power utility The customer-critical path may start in several places meeting the needs of

several different types of customers ndash household customers that simply need power turned on or major projects that require significant project management and pre-planning Eventually these starting paths merge It will occur at the point at which all customers are happy From there they may take a different path

again some will terminate service or have new needs There is not one value chain there are many paths a customer might travel through your organization

This new approach offers significant value for organizations that adopt it It allows them to better understand their customers so that they can be more effectively segmented and targeted by products or services This drives the bottom line in several ways A stronger value proposition increases appeal thus driving revenue Better service and customer interaction improve the customer experience and increase customer loyalty driving customer lifetime value

The customer-critical path also becomes a vital decision-making tool for management It provides a clear and unbiased perspective on where resources should and should not be spent It defines the relative worth of projects assets and expenditures painting a clear picture of what the results will be if the customer-critical path is not

properly maintained

And if your mission and vision statement says you are customer-centric it makes your strategic plan more than simple semantics It makes it actionable setting your organization on a path towards true differentiation and market leadership Properly crafted the customer-critical path becomes a pleasant stroll through the park for your customers and it can also become the most profitable path for your organization

David F Giannetto is CEO of The Telos Group co-author of The Performance Power Grid The Proven Method to Create and Sustain Superior

Organizational Performance (J Wiley amp Sons 2006) and a professor in the Executive MBA program of Rutgers University

Mr Giannetto can be reached by email at dgiannettotelosconsultingcom

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35

Vol 6 Issue 2 2009

I Introduction and Background

Who the NMDP is

The National Marrow Donor Programreg (NMDP) and Be The Match FoundationSM are non-profit organizations dedicated to creating an opportunity for all patients to receive the bone marrow or umbilical cord blood transplant they need when they need it Every year thousands of people of

all ages are diagnosed with leukemia and other life-threatening diseases Many of them will die unless they get a bone marrow or cord blood transplant from a matching donor Seventy percent of people do not have a matching donor in their family and depend on the Be The Match RegistrySM to find a match to save their life

The Beginning

When their 10-year-old daughter Laura was diagnosed with leukemia Robert Graves DVM and his wife Sherry were ready to do anything they could to save her They agreed to try a bone marrow transplant from an unrelated donor ndash the first ever for a leukemia patient Laura received her transplant in 1979 at the Fred Hutchinson Cancer Research Center The treatment gave her an extra year and a half of life

The National Bone Marrow

Donor Program

The Balanced ScorecardVision into

Action JourneyBy Howard Rohm

President amp CEO Balanced Scorecard Institute under the guidance of The National Marrow Donation

Programrsquos Michael Boo Chief Strategy Officerand John Rudrud Senior Analyst

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Vol 6 Issue 2 2009

The experience inspired Dr Graves to create a national registry of volunteers willing to donate marrow His early efforts brought together other patient families and transplant doctors spurring a federal mandate that led to the creation of the National Marrow Donor Program NMDP began connecting patients with unrelated donors in 1987 with a registry of just 10000 volunteers

What the NMDP Does

The Be The Match Registry has grown to more than seven million donors and over 150000 cord blood units the largest and most racially and ethnically diverse registry of its kind in the world Medical advances are making marrow and umbilical cord blood transplants available to more patients all the time Since 1987 NMDP has arranged for more than 35000 transplants to give patients a second chance at life Today NMDP facilitates more than 4300 transplants a year

Planning for the Future

Many more patients still need help In order to meet the needs of all patients NMDP will need to facilitate 10000 transplants per year by 2015 That is more than double the number of transplants the organization facilitates today NMDP is working to meet this need but canrsquot do it alone Efforts are sustained by

bull A global network of more than 490 leading hospitals blood centers cord blood banks and laboratories

bull Agreements with donor centers cooperative donor registries and cord blood banks worldwide through which the program provides patients access to more than 12 million donors and 300000 cord blood units

bull Continued support from the US government which has entrusted the NMDP to operate the CW Bill Young Cell Transplantation Program the federal program supporting bone marrow and cord blood donation and transplantation

bull Partnerships with corporations service organizations student groups faith-based communities and other organizations

A new and different way of thinking about the NMDPrsquos long-term strategy was required in order to make sure that NMDP would be capable of delivering 10000 transplants per year in 2015 ldquoBusiness as usualrdquo would not get the organization where it needed to be NMDP needed to identify and

aggressively improve in strategic areas critical to the delivery of 10000 transplants

II The Balanced Scorecard Approach

Background

The strategic planning system that had been used at NMDP up to 2007 was a fairly well-developed planning process that tracked initiative performance under seven primary areas of strategic focus While this approach provided a measure of strategic planning for the organization it was too focused on activities and projects rather than on impacts

Early in 2007 NMDP leaders Gordon Bryan Chief Financial Officer and Michael Boo Chief Strategy Officer began developing strategic metrics designed to identify measure and communicate progress in strategic plan objective areas

Selection

As the senior management team evaluated options to integrate broader strategic metrics with the existing strategic business plan the Balanced Scorecard approach emerged as a leading candidate during the initial assessment of planning models because it

bullEncourages development of strategic themes and provides the ability to focus on areas where long-term continuous improvement is needed

bullPermits identification of cause-and-effect relationships between Strategic Objectives within each Theme

bull Facilitates communication of Strategic Objectives that can be portrayed on a strategy map that is easily understood by all employees and stakeholders and shows how the perspectives work together to achieve the mission

bull Assures that the organization focuses on Strategic Objectives and Measures from a CustomerStakeholder perspective and a PeopleKnowledgeTechnology perspective (Historically the organizationrsquos focus was skewed toward the Process and Financial perspectives)

bull Enables leadership to track Strategic Objective performance over the long term rather than tracking the status of supporting projects and initiatives

bull Creates a framework for prioritization of projects initiatives and funding opportunities based on contribution to and support of the Strategic Objectives

bull Allows organizational Strategic Objectives to be cascaded into Department Objectives thereby giving each employee

a more specific understanding of how his or her work impacts and contributes to the Strategic Objectives

bull Drives long-term continuous improvement as Strategic Measures improve over time

bull Facilitates a ldquolearning organizationrdquo where corrective actions are implemented in cases where Strategic or Department Objective Measures are not being met

The NMDP planning team looked at a number of planning models ndash including Balanced Scorecard Six Sigma Lean and TQM ndash and concluded that the Balanced Scorecard approach provided the most versatile and relevant framework for future growth and organizational development

III Scorecard Development ndash NMDP Officer Input

Early to mid 2007 NMDP began the Balanced Scorecard development effort with the help of consultants from the Balanced Scorecard Institute

A comprehensive review of the organizationrsquos strengths weaknesses opportunities and threats organizational pains organization enablers vision and mission was conducted over several days with NMDP officers and senior management These sessions produced a new Mission and Vision Statement and four Strategic Themes (rather than the original seven)

The former mission statement Extend and improve life through innovative cellular transplant therapies was changed to We save lives through cellular transplantation ndash science service and support

ldquoThis new mission statement captures and communicates more directly why we exist and it clearly articulates the three ways that we are able to save livesrdquo explained NMDP CEO Dr Jeffrey Chell

The Overarching Strategic Result in place of a vision statement was developed and shared with employees throughout the organization Meeting the need for 10000 transplants per year by 2015 The senior management team developed a longer more descriptive version of this statement but felt that the shorter version had more impact

ldquoWersquove found that the Overarching Strategic Result has been a great tool to get people thinking about how we will manage

to do more than double our current transplant volumes in a relatively short time ndash just five years from nowrdquo explained initiative sponsor Michael Boo ldquoThis has driven a lot of creative thinking around how to dramatically improve the efficiencies and cost effectiveness of many internal systems and delivery processesrdquo

The four Strategic themes that the NMDP officer group developed and agreed upon are

bull Global Access and Acceptance ndash Getting to Yes Overcome non-cell source barriers to transplant (eg no insurance no transportation no post-transplant support)

bull Deliver Excellent Stakeholder Experience Overcome Cell Source Barriers (making sure a cell source donation is available when itrsquos needed ndash adult or cord)

bull Research Pursue research to improve cell transplantation as a therapy

bull Culture of Excellence Keep up-to-date with talent structure and resources needed to continually improve transplant services

IV Scorecard Development ndash Senior Management

Throughout the spring and summer of 2007 four Theme Teams comprised of senior management met to develop

Theme Team strategy maps that included Theme Objectives by Perspective and proposed Measures for each Theme Objective These served as detailed roadmaps with specific objective areas identified ndash where NMDP needed to focus in order to improve them

The four Theme Team maps were subsequently

combined into an NMDP Strategy Map that included all relevant components from each theme This NMDP Strategy Map is comprised of 13 Strategic Objectives 46 Strategic Measures and seven Strategic Initiatives

Narratives were captured regarding the intent and ultimate end state for each Strategic Objective and detailed descriptions were created for measurement information including rational frequency owner and unit of measure

At this stage in the process the team named the Balanced Scorecard tool ldquoVision into Actionrdquo or ViA ndash NMDPrsquos strategic Performance Management tool On June 1 2007 the ViA Themes and NMDP Strategy Map details were presented to the board of directors by senior management and approved along with a plan to proceed to the next phase of department cascading

A ViA Communications Team was formed to communicate ViA progress to employees on the development of the new Mission Statement Vision Statement and the 13 Strategic Objectives This was done through a combination of pulse checks newsletters

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39

Vol 6 Issue 2 2009

intranet messaging e-mails from the CEO leadership training all-staff meetings and promotional contests This was an extremely integral step in the ViA roll-out that provided transparency and generated excitement around the benefits of ViA

V ViA Department Cascading

All departments at the NMDP were scheduled for sessions to develop their department Objectives Measures and Initiatives These were facilitated by internal subject matter experts and included an initial two-day exercise to help the department identify where and how each department contributed to the NMDP Strategic Objectives Worksheets and other preparation material were provided to each participant and collected prior to the cascade session The pre-work information was used to expedite the affinity exercises at each session

These were followed up with sessions to finalize detailed measures with individual measure owners Department teams were comprised of five to 10 key members of each department

The department cascading efforts provided a number of primary benefits to the organization including

bull The articulation in easy-to-understand terms of how each department contributes to the overall success of the Strategic Objectives and ultimately the NMDP Mission

bull A tool to identify gaps or overlaps between departments that can also be a tool for departments to communicate with each other in terms of supporting initiatives

bull A tool for each department to prioritize initiatives and activities Also it provided a mechanism to support requests for funding new opportunities

bull A clear framework for corrective action where measures are not being successfully met

bull A common format and mechanism for reporting department performance to officers and senior management

bull A common format and mechanism for reporting and reviewing department performance with staff

bull Help with the development of individual job performance appraisal content ndash which should be designed to support Department Objectives

Department Cascading was complete in early 2009 There are over 200 separate department measures that are tracked each quarter

VI NMDP ViA Today

NMDP has established a department Champions Council Members of the Council are becoming experts at using the automated ViA software Today this is being used at department staff meetings to facilitate discussion around corrective action for underperforming or unacceptable Department Measures Departments use the department Strategy Maps to guide staff meeting discussions on performance measures and corrective action plans

ldquoAll business cases or requests for funding must be submitted with clear tangible descriptions of how the effort will impact ViA Strategic Objectivesrdquo explained Boo ldquoOnce all business cases have been submitted to the officer group for final approval they are prioritized in order of their impact on ViA Strategic Objectivesrdquo

All strategic and department measures are required to be reported into the ViA system each quarter Each is color coded based on an officer-approved target matrix Each measure owner is required to provide comments regarding the measure performance for the quarter and discuss how he or she expects the measure to end the fiscal year This information is shared with senior management for review and follow-up with measure owners ifwhen necessary

Senior management uses the color-coded NMDP Strategic Map as a basis for discussing quarterly performance and identifying

Strategic Objective areas that may need attention corrective action andor more resources NMDP tries to focus not only on corrective action items but also highlight success stories where outstanding performance has been reported

All employees will soon have access to the web-based ViA application to provide as much transparency and visibility as possible in order to become a truly strategy-focused organization

ldquoVision into Action has been successful within the organization to a great extent because of the consistent support and guidance provided by NMDP leadership including our CEO Dr Jeffrey Chell my fellow Officers and the Board of Directorsrdquo said Boo

Howard Rohm President and CEO of the Balanced Scorecard Institute is a Performance Management trainer consultant and technologist with over 40 years experience Mr Rohm has helped dozens of organizations worldwide build Balanced Scorecard and other performance planning and management systems

48

Pe

rform

Mag

azine

Info

rmatio

n in

Actio

n

A community for BIRT users and developers sponsored by Actuate

A Report Writing Portal lets your end users browse reports modify them and even develop

new ones You can set one up in three steps when you use AJAX-based BIRT technology

Because the end user tools to modify and create reports are AJAX-based therersquos no desktop

software to install Users get the reports they need quicker while the burden on development

resources to create new reports is reduced

BIRT Exchange is a community site that offers the broadest collection of resources for the Eclipse BIRT (Business Intelligence

and Reporting Tools) project and for integrating spreadsheets with Java The site is sponsored by Actuate a co-leader of the BIRT project

Sponsored by

See a Demo

at Booth

602

For More Information

Contact us by phone at 1-800-884-8665

1-913-851-5300 from outside of the United States

wwwbirt-exchangecom wwwactuatecom

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41

Vol 6 Issue 2 2009

JCIrsquos previous approach of one-off negotiating as well as its spirit of continuous improvement and customer focus meant that it had only one-off measures in every location The company for example had 127 variations of the measure lsquomaintenance managementrsquo Many were very similar but since they were not exactly the same they could not be compared effectively Inefficiency at gathering and maintaining data at different locations across the globe made the task difficult as well Data was collected any way possible thrown into a cell or a Power Point slide and handed in at the end of the month It was highly inefficient extremely customized at every location and did not allow any ability to benchmark compare or look at best practices These concerns and requirements drove JCI on its scorecarding journey

The Solution

In initiating its scorecarding solution JCI first had to establish the right measures Business leaders were chosen for all of the scorecard categories and for each of them a business owner was selected for each region these business leaders and owners were responsible for defining the standards and measures Data collection systems in some cases proved difficult there wasnrsquot always centralized information available ndash in some cases data needed to be gathered right down at the account level This meant that the process of data collection and identifying measures was a significant job To get started though JCIrsquos web programmers were able to put up some scorecards quickly to allow the company to start architecting measures this allowed business leaders across the globe to start identifying their measures and to put the processes in place regionally to collect information

Before committing to a technology JCI wanted to know 100 percent of their business requirements and this was the point of their web-based scorecard To assist in this endeavor Actuate ndash prior to selection ndash let the company test drive their product The JCI team went through and looked at every single screen determining where they had to configure the tool and for every single screen they also made what they called a lsquoblueprintrsquo creating an Excel template with fields to correspond with every field on each screen It was incredibly detailed work but they wanted to ensure no mistakes were made and that the business requirements were defined To accomplish this there was an extreme amount of detailed coordination globally with twice-weekly meetings for the worldwide team in charge of the initiative A byproduct of the process was that the team learned to use the Actuate BIRT Performance Scorecard and basically built all of the blueprints for the project design

JCIrsquos audience for the project upon kick off were the 300 external customers that would have access to this information Customers previous to this were getting their information via Excel and PowerPoint In addition to these external customers was the population of approximately 1000 internal users within JCI itself These included account leaders and functional leaders including those from HR Finance Safety etc

Three primary functions of the project were

1 To replace the PowerPoint slides used in global and regional monthly internal operational reviews

2 To very quickly be able to become best in class JCI wanted everyone who had an account to be able to see where they sat compared to their peers This provided individuals ndash when faced with a problem ndash the ability to quickly identify and contact others who had solved the same issue

3 To standardize customer faith in contractually required performance measures This was a key goal of the company which felt that if they were going to benchmark and compare they needed to bring in the best practices learned at one location to their work at other locations

These three primary functions were heavily loaded in JCIrsquos rating system as the company set out to choose the right software for their scorecarding project It was also important that the software be intuitive as there was no time for hundreds of hours of global-wide training The software had to be rapid and easily configurable with limited IT assistance As JCI is a very large organization with a lot of systems in place the team in charge also wanted the software to be easily adjustable to the companyrsquos rapidly changing business they didnrsquot want to have to get into queue for IT every time a change had to be introduced or a new customer added

JCI Chooses ActuateFour vendors were evaluated for JCIrsquos scorecarding project with a global team in place to provide a systematic discussion of the defined business process and requirements The product chosen was the BIRT Performance Scorecard JCI had 30 days of Actuate Professional Services and planned for monthly micro improvements and quarterly macro improvements

Upon purchasing the BIRT Scorecard in January 2007 using the blueprints theyrsquod established already the company wrote their business processes They were able to go live in 90 days helped by the homework they did with the blueprints the web scorecard and the data collection processes It was an incredibly smooth implementation overall

The Results

Whereas JCI originally started out with a model of one-off negotiations with customer measures the scorecarding project has led to approximately 70 percent agreement on JCI standard metrics The company does a customer satisfaction survey both annually and quarterly and aims to demonstrate evidence towards continual improvement

Since implementation of the project the company has also been solving its data integrity issues Previously two regions might have been using the same words but not the same data collection methods ndash this made it impossible to introduce benchmarking and comparison between areas Now those problems are being solved and benchmarking and comparison are possible to the benefit of both JCI as it strives for best-in-class status and its customers

By David F GiannettoCEOThe Telos Group

Johnson Controls Incorporated (JCI) is a $38 billion company with a total of 140000 employees working out of more than 1300 locations in 125 countries worldwide Headquartered in Milwaukee Wisconsin the company provides a range of services including

real-estate portfolio management property management facility management and design and construction services

To initiate its scorecarding project JCI began by creating five categories of measurement Business Performance (this includes all financial measures) Service Delivery Customer Satisfaction Safety and People While the other four categories may be typical to most organizations the Service Delivery category was designed to take JCIrsquos measurements down to the client-site level which includes over 300 locations globally where the company has contracts In some cases there might be one staff member assigned to manage a single building while other times a staff member has a whole portfolio they maintain Measuring performance at all of these locations and levels proved a complex undertaking

Strategic Initiatives

Like all service providers JCI has to demonstrate that they add value Scorecarding allows them to do this both internally

and externally using data-driven results Since JCI has always been very much a data-driven organization anyway with a manufacturing background this was a natural fit for the corporation

JCIrsquos organization-wide motto is to be as good everywhere as they are somewhere Theyrsquove found that in any one account they may excel in several areas but perhaps not in all areas elsewhere though on another account someone else might have the skills needed to fill in those gaps The companyrsquos goal was to share information and communicate it between different locations across the globe allowing the company as a whole to get better faster and to benefit from the skills and strengths of its individual members Scorecarding was introduced as a way to help share this information and to introduce benchmarking within the company

The Requirements

To get started on their scorecarding initiative JCI examined each of their US contracts What they found was that there were no standards between clients and therefore no ability to benchmark Customers though wanted the ability to find out how they stood in relation to other customers This was impossible under the circumstances

Global Operational Excellence and a Performance Scorecard System A Case Study of

Johnson Controls Incorporated

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Vol 6 Issue 2 2009

Out of Touch With Crucial Data

Previously when Helzbergrsquos divisional and regional vice presidents went on the road access to their key performance metrics was restricted Without a laptop and a WiFi or hotel network connection to the internet they were ldquoflying blindrdquo according to Greg Backhus Helzbergrsquos Director of Data Warehouse and Decision Support Systems As a result they did a lot of faxing it was the only way they could get the current data that they needed in order to

About Webalo

Webalo technology transforms enterprise applications and data to make them compatible with mobile

devices This eliminates the need for traditional custom programming reducing the deployment of mobile applications from weeks or months to in most cases less than a day The resulting ldquoanywhere anytime on-demandrdquo availability of enterprise data on handheld devices turns such devices into viable alternatives to desktop laptop and palmtop computer hardware and lets mobile employees work more productively ndash on the spot ndash to solve problems answer questions monitor operations close sales and make informed decisions

The Webalo Mobile Dashboard Service ndash available in both internet-based and enterprise intranet-based implementations ndash lets non-IT business administrators securely specify the content of mobile-accessible information and the companion Webalo Proxy Server configures it in seconds to conform to the native user interface of any BlackBerry Windows Mobile Pocket PC Palm Symbian or Java-enabled smartphone

CLARITY CUT AND CARATSHow Helzberg Diamonds Made Sales Data Clearer Eliminated

Delays and Lightened the Load for its Divisional Executives

A diamond may be forever but a lot has changed in how theyrsquove been marketed and sold during Helzberg Diamondsrsquo nine decades in business A single store has expanded to nearly 300 locations from coast to coast and border to border Sales can also be made online now And information about every sale can be accessed in an instance through the companyrsquos enterprise systems

bull Compare actual sales to their goals and plans

bull Determine transaction counts for total dollar volume and average sales value

bull Break down sales by product category

bull Monitor attachment rates for products and services related to the main product sale

For example onsite at individual stores it was difficult to gauge how an active price-reduction sale was affecting unit and dollar

volumes unless there happened to be a coffee shop next door with a WiFi connection that would let Helzbergrsquos executives access the enterprise system

The Three Cs of Information Access

The three Cs of diamond grading ndash clarity cut and carats (or weight) ndash turned out to be applicable to data access as well But it took a transition to handheld devices and to the Webalo Mobile Dashboard to achieve it

Though laptop computers had gotten lighter and lighter over the years they were still considerably heavier than the Pocket PC-based smartphones that Helzbergrsquos executives used Since they were carrying those handhelds in addition to their laptops the VPs were open to the idea of being able to

bull Access sales metrics on their handhelds

bull Have data available on-demand from any location with a wireless signal

bull Navigate quickly to the figures they needed

bull Get updates to their metrics automatically

bull Review the information offline

It was the only time that carrying less weight ndash or carats ndash added more value Using a simple step-by-step wizard Helzbergrsquos support staff was able to configure their enterprise reports in a matter of hours They then assigned access privileges to each executive to control who could see what information and uploaded the file to the Webalo server That satisfied how data was ldquocutrdquo

For each mobile user regardless of the brand and model of smartphone they used the Webalo Mobile Dashboard conformed the information to the devicesrsquo user interface The application worked and looked exactly like any other application developed specifically for their mobile devices the on-screen text was easy to read and navigation used the same menu structure That meant there was no learning curve to delay user acceptance and productivity Clarity was essential and the Mobile Dashboard delivered it right down to the ability to bookmark commonly-referred-to displays for instant reference enhancing on-the-spot productivity even more

Speed and Simplicity

Productivity was also improved on the IT side Without the need for custom programming to conform the information to each smartphone brand and model deployment was reduced from months to hours

Since adopting the Webalo Mobile Dashboard Backhus says ldquoThe Divisional VPs find it invaluable They get more done because they donrsquot have the delays they used to haverdquo Decisions that used to have to wait for current data are now made right away relying on the right data presented in the right format

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Sustainable practice has graduated from being market hype

to becoming a strategic initiative important for driving a successful enterprise It not only reduces a companyrsquos impact on the environment but can help organizations achieve a competitive advantage to build their brand impact top and bottom line and improve customer acquisition satisfaction and retention

Creating a road map towards sustainable management can require an entire shift in corporate thinking one that involves searching for buy-in at all levels establishing useful metrics and introducing practices that get beyond the green hype The end result though is not just a greener organization but also one with a more prosperous future

Why Sustainability

In August 2008 a survey undertaken by CIO Insight examined green practices in business focusing on the reasons why CIOs introduce sustainability efforts into their organizations The number one reason why organizations went green the study found was that the people within those companies sincerely had a concern for the environment A total of 74 percent of respondents answered that way 32 percent of which listed it as their most influential driver

Other influential drivers named in the survey included

Financial Drivers Companies found sustainability to be a way of cutting costs If they could cut energy costs not only would that help the environment but it would also help create cost savings The second most popular answer in the CIO Insight study financial impacts are key to implementing sustainability in most organizations Examples of financial impacts possible from sustainability were presented at CFO

2 The CFO Green

Conference which took place in May 2008

bull Dupont reduced its CO2 emissions by 70 percent saving the company $3 billion

bull FedEx redesigned its delivery trucks making them more aerodynamic This reduced the amount of particulate pollutants nitrogen and carbon the trucks put into the atmosphere and it also reduced the companyrsquos fuel costs exceptionally

Customer Image In the CIO Insight survey the third motive listed by CIOs for introducing sustainability ndash at 64 percent ndash was company image Consumers are becoming more and more aware of whether companies or organizations are living up to sustainability ideals They will notice if a company image or brand value reflects this concern for the environment Meaningful sustainability efforts can help gain customer approval as in the following case

bull Wal-Mart and Procter amp Gamble together agreed to sell liquid laundry detergent only in concentrated form This saved shelf space for Wal-Mart reduced water use by 400 million gallons for Procter amp Gamble and eliminated 45 million pounds of plastic waste

Regulatory Requirements The surveyrsquos fourth most popular reply ndash at only 25 percent ndash were current or potential regulations including the cap and trade systems being implemented which will require companies to buy carbon and sell carbon credits

Shareholder Pressure Finally at fifth in the CIO Insight survey ndash with 14 percent of responses ndash was shareholder or public pressure pressure building from shareholders to put forth sustainability efforts Pressure at this level is often mixed though as shareholders are also likely to express a desire that they donrsquot want shares to decline in value The general message may be that it is fine to introduce sustainability measures only as long as there is no risk that they will hurt the company

A Road Map Towards Sustainability

Step 1 Identify What Drives Your Organization

The first step in the road map towards sustainability is identifying key drivers Some drivers vary from one organization to another while others seem to drive any organization regardless of the industry Drivers incude

Internal drivers

bull Cost cuttings and savings

bull Employees including both the satisfaction of current employees as well as the recruitment and retention of future employees

bull Investment

External Drivers

bull Stakeholders including both those within the company ndash the employees discussed above ndash as well as stakeholders outside of the company

bull Brand awareness because consumers are becoming increasingly aware of the choices that are available to them and are making choices based on a companyrsquos green initiatives

Future drivers

bull Tax incentives

bull The recruitment and retention of future customers

Step 2 Select Your Metrics

In general terms sustainability metrics will fall into one of four major categories those that affect the climate those that affect the oceans those that affect human health and those that affect common issues like the land the water the wildlife etc

Within those large categories are smaller areas of interest that companies must examine to introduce organization-wide sustainability management carbon monoxide use energy consumption water consumption and fuel consumption are prime examples

Carbon Monoxide Use Many of the questions companies are asking themselves in regards to carbon monoxide use include

A Road Map of Key

Sustainability Metrics

That Impact Bottom

Line

46

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Vol 6 Issue 2 2009

bull How much carbon monoxide do we produce

bull Which processes in our overall manufacturing or delivery use produce the most emissions

bull Can we determine the indirect emissions For example leave a computer plugged in and itrsquos still on the grid creating an indirect carbon dioxide emitter How can we measure that

bull Whatrsquos our cost Do we have metrics that tell us what our CO2 emissions cost us

bull Can we predict into the future If we continue on this path without doing anything where will we be next month Next quarter Next year

Some examples of metrics related to carbon monoxide use include carbon dioxide emissions per employee (similar to revenue per employee) carbon footprint metrics and transportation distances

Energy Consumption Areas of interest related to corporate energy consumption may include the following

bull How much do we consume From what sources

bull Are we on the grid Are we using solar power or wind power or another alternative power

bull How much is used by our data center How do we make the data center greener

bull Where can we reduce consumption

Companies today are reducing energy consumption in a variety of ways by introducing energy audits and looking at energy-saving appliances and also through energy incentive programs for employees within which companies can incentivize and introduce bonus plans

Water Consumption An examination of a companyrsquos water consumption may include some of the following queries

bull How much water do we currently use and where

bull Where in our processes do we use the most water

bull Can we predict how much wersquore going to use in the future

Some of the examples of metrics that companies introduce in terms of water consumption include improved water quality how much impact low-flow or low-volume toilets have on water consumption and how much water is or can be recycled

Fuel Consumption Questions to consider in relation to fuel consumption include

bull How much fuel do we use

bull Where are the inefficiencies

bull Whatrsquos being predicted for fuel usage in the future

bull Can we analyze our logistics so that we can determine how to reduce our fuel consumption For example where are our trucks traveling How are they traveling What kinds of loads are they carrying

Step 3 Recognize Challenges

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly As such easier ways to enhance communication and to increase visibility need to be introduced both inside and outside of an organization

There are also constantly evolving requirements measures and standards of success With everything so new companies are challenged to find ways to compare their sustainability efforts with other organizations The biggest challenge in implementing these processes or attracting metrics may be that they require an entire shift in thinking Additional challenges that exist in the implementation of a sustainability model include

1 Financial concerns Companies must truly see potential for returns on investment or these initiatives can become non-starters or stall

2 Lack of regulatory motivation While not as common as it once was certain organizations arenrsquot motivated to introduce sustainability until government regulations are in place

3 Lack of a formal strategy for sustainability Without a formal strategy it is difficult for companies to determine where they need to go

4 Determining appropriate metrics Companies must choose metrics that are useful demonstrate impact and say something about their own corporate environment

5 Calculating metrics Standard algorithms and calculations exist to calculate metrics but companies must find the appropriate ones and use them

6 Finding quality data to plug into those calculations As in any Business Intelligence project if the quality of the data is questionable then so are the sustainability metrics themselves

7 Determining the scope of the sustainability project The scope is critical Narrow it down to something achievable feasible and useful

Step 4 Learn from Best Practices

What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde

bull Assign an executive champion Without an executive champion to drive the project initiatives are more likely to lack a holistic view and a clear vision for an implementation strategy they may take longer to implement and theyrsquore less likely to yield the required results To provide motivation consider linking the championrsquos salary directly to sustainability savings or to the increased revenues that result from sustainability efforts

bull Implement internal training and education Educate employees on what to expect and what is expected from them

bull Improve communication Communicate both to employees and to stakeholders outside of the organization

bull Start to think about alternative energy management and control strategies

bull Engage the use of technology and services For companies not sure where to begin a sustainability consultant can assist with program selection as can vendors such as Actuate which has a sustainability management solution in place

Step 5 Get Started

Understand that sustainability development is a business opportunity Donrsquot look at it solely as environmental although that is also important Itrsquos an opportunity for companies to introduce more cost-effective processes and procedures and to become more cost effective in their vehicle fleet manufacturing delivery etc

bull Create globally consistent metrics and goals Large agencies have to make sure that the entire group is on board and that they have consistent metrics and consistent goals across the enterprise

bull Find the value and drive the action What is the value of monitoring these sustainability areas and whatrsquos the course of action if you see that theyrsquore going off kilter or are not tracking as expected

bull Start small Initiatives such as these can become incredibly complex very quickly Start small and build in the complexity with each ensuing project

bull Get buy in People need to understand what the metrics are why theyrsquore there and what they mean to each individualrsquos situation (as reflected in individual bonus plans perhaps) Measure using industry-accepted methodologies and industry-accepted protocols continually improve metrics through optimization and forecasting and constantly optimize metrics and forecast into the future

bull As much as possible accurately report to everybody environmental performance Let employees shareholders customers and regulators know If data is questionable fix it get quality processes in place and then run the metrics

bull Determine environmental impact Has waste been reduced Has resource utilization been reduced Has the company improved environmental factors

Also consider using an Open Source vendor The Open Source community is beginning to develop sustainability metrics and Open Source reduces the costs of developing metrics while software costs for the project are reduced as well

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly ldquo

rdquo What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde ldquo

rdquo

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Vol 6 Issue 2 2009

Step 6 Move from Green Hype to Sustainable Action

A successful sustainability initiative involves identifying metrics that will translate into cost savings and benefits while avoiding metrics that are not likely to yield required results To accomplish this start small start with a small department within the organization and then repeat this continuing to repeat it throughout the enterprise

bull Start with basic conservation Change behavior reduce consumption and in the process increase investment

bull Start reusing Improve productivity improve efficiency and create less waste

bull When this translates into cost savings re-invest Grow make larger improvements and increase involvement

Projects that make good starting points

bull Measure carbon dioxide emissions throughout a value chain or product lifespan Look for potential improvements

bull Ensure regulatory compliance By knowing what the regulations are companies can determine what metrics need to be in place

bull Identify ways to promote and profit from more environmentally-respectful goods and services Companies can promote environmentally-respectful goods and services while also using sustainability to help the company

Monitor the effects of each project to determine which strategies have the most impact both physically in terms of

the environment and financially in terms of revenues and cost savings Publicize how metrics are tracking over time

Actuate for Sustainability Management

Actuate for Sustainability Management is a solution by Actuate that integrates highly interactive visually rich dashboards There are pre-built sustainability scorecards strategy maps and over 100 pre-built metrics across the economic social and environmental aspects of sustainability

The Actuate BIRT Performance Scorecard supports the metrics defined including

bull Reducing an organizationrsquos environmental footprint

bull Building green facilities and buildings

bull Compliance and reporting

bull Manufacturing

bull Community and engagement

bull Human development including employee well-being and satisfaction

Actuate for Sustainability Management provides collaboration across regulators consumers and non-governmental organizations Dashboards and scorecards come integrated with reporting so as to improve reporting to stakeholders both outside and inside of an organization All of the products are built on Actuatersquos dependable cost-effective and scaleable platform

Performance Management solutions help organizations understand act on and influence business decisions processes and measures of business success The 2009 Actuate Performance Management Excellence Awards will honor customer success stories in four key areas Over the next several issues Perform Magazine will highlight some of the entries in these categories

Category 1 Go Green

Each year the concept of environmental responsibility has implications for both the private and public sector specifically with regards to how each measures the performance of their operations For organizations using the Actuate BIRT Performance Scorecard to measure the progress of organizational Green initiatives how have they responded to the challenge and how do they use the BIRT Performance Scorecard to ensure they stay on track

Category 2 The Perfect Slice

Successful Performance Management comes in all sizes Some initiatives are enterprise-wide while others are focused around specific business units or functions yet still encompass a holistic approach to Performance Management by looking beyond financial indicators to a more balanced set of indicators This category includes organizations deploying the Actuate BIRT Performance Scorecard with a focus on improving the performance of individual business units or functions and includes the measurement of people and processes

Category 3 Big Bang

Carefully executed Performance Management initiatives begin with a measured approach to the initial implementation and quickly expand to other parts of the organization aligning business units to strategy at each step This category is open to Actuate customers who initially implemented the Actuate BIRT Performance Scorecard to a limited user community and through careful change management and planning expanded the use of the BIRT Performance Scorecard throughout the organization

Category 4 Super Size

Award-winning enterprises achieve breakthrough results in the financial customer operational and people perspectives of their business and leverage internal champions across the organization to ensure ongoing and sustainable success The key to achieving these results lies in total visibility of all business units aligned to strategy This category is open to any Actuate customer with a fully deployed enterprise-wide Actuate BIRT Performance Scorecard implementation

Actuate Performance Management Excellence Awards2009

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HealthNow New York Inc headquartered in Buffalo is one of New York Statersquos leading healthcare companies doing business as BlueCross BlueShield of Western New York BlueShield of Northeastern New York HealthNow in the Central New York region and Brokerage Concepts Inc in Pennsylvania

Improving the health of people and communities are HealthNowrsquos corporate priorities and for more than 70 years the company has been a proactive partner in health working to improve the quality of care and the quality of life for everyone it serves In 2008 HealthNow provided access to care to more than 820000 members and in 2008 company revenues grew to $227 billion

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution and describe what you were trying to achieve as a group function or department

A few years ago HealthNow New York Inc determined that the key to its continued success would be its ability to differentiate itself from other healthcare plans in ways that could not be readily duplicated or copied by their competitors In an increasingly crowded marketplace to get the attention of new customers and retain existing ones HealthNow needed to set itself apart from others

This lasting competitive advantage needed to come from an organizational culture that was dedicated to a relentless focus on meeting customersrsquo needs It needed to be highly responsive supportive flexible and nimble particularly as the healthcare marketplace continues to change with more responsibility placed upon its customers

To that end a new business model was implemented to provide the framework for customer focus Under the new structure the company was divided into four strategic business units (SBUs) each responsible for financial contribution customer satisfaction medical utilization and market share of a specific book of business

Each SBU includes its own set of functions including sales account and broker management product configuration customer intelligence pricing enrollment and billing customer service medical management and HR support Each business unit is led by an executive who is fully accountable for the unit operations and for bottom-line performance of the entire business unit Each SBU is supported by various corporate support functions (Actuarial IT Legal etc)

Implementation of the new business model began with a reorganization of the senior management structure The senior management of each SBU has specific incentive goals as well as strategic goals aligned with the corporate incentive Those strategic goals then drill down to ldquoteamrdquo incentives and to a blend of strategic and operational goals

This was a completely new way of looking at our business It was a blank slate requiring new processes and new methodology as well as an examination of existing metrics and processes to determine what added value and where the strengths weaknesses opportunities and gaps were

Under this new structure the Government Programs State and Federal products SBU ndash which historically had some inefficient end-to-end processes lacked internal controls and had minimal oversight of financial performance ndash was able to set a foundation and develop a growth strategy In order to achieve this mission and to align track monitor improve and communicate performance the Senior Vice President of the Government Programs SBU elected to utilize a Performance Management framework via the Actuate BIRT Performance Scorecard

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

As a point of reference the Government Programs SBU is comprised of a State Government Programs team a Federal Government Programs team an Operations team and a Sales team The Performance Management design team was comprised of the Actuate system administratorfacilitator the Government Program financial reporting manager and two SBU data analysts Input from the various teamsrsquo management staff was gathered as the design got more granular

Discussions around the design of the Government Programs scorecard began with two basic questions

1 What are the handful (ideally six to eight) of key performance indicators that are necessary to run and manage your business and to indicate that yoursquore on the right path to achieving your goals

Defining the key performance indicators was a challenge that required the Actuate system administrator in a facilitative role to get intimately involved in order to keep the discussions focused and high level and to limit scope creep The incentive goals were clearly defined at the corporate and SBU level however the tough question was how should they drill down in the BIRT Performance Scorecard The facilitator posed the following questions to the other members of the design team

bull How do you usually look at your business

bull How are the primary source documents that capture this information structured

bull What other ways do you look at your business

Taking the answers to these questions a step further the facilitator asked the next question Is the drill-down structure the same for the core strategic or team metrics The answer was yes By taking this approach we were provided with consistency in how the teams look at their business and the performance of their core indicators

Once the incentive and strategic goals were identified more leading and lagging operational measures were defined such as

bull Call centers

bull Accuracy

bull Quality

bull Sales Performance

2 Who is your audience

Through the entire measure selection and definition process the design team was constantly reminded to keep a second question ndash who is your audience ndash in mind This helped keep the focus on the critical few and keep the number of metrics down to a manageable amount Links to supporting documentation were created to provide easy access to the granular data without burdening the scorecardrsquos objective

The audience in this case was the SBUrsquos Senior Vice President followed by the State Director Federal Director Operations Director and Sales General Manager It then cascades down to each directorrsquos management team and the data providers

In order to provide a complete and consistent picture of State and Federal performance for senior management where

gt Performance Management Excellence Awards

HealthNow New YorkCategory 2 Entry The Perfect Slice

gt Performance Management Excellence Awards

[ Figure 131 Homepage Map ]

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Vol 6 Issue 2 2009

possible the same or comparable measures were created for each team For example when looking at the various call center metrics ndash even if the definitions and targets slightly differed ndash if one team was consistently exceeding or meeting their target it sparked group discussion around best practices processes staffing and target definition

Utilization of Maps continues to play a major role in communicating performance Again focusing on our audience there is a Map at the Senior VP level which then links to a high-level Map for the State director and staff and for the Federal director and staff The one-page snapshot allows management to easily view performance then to drill down to specifics via additional detailed Maps or Books Because the audience embraces the Maps concept a ldquoWhere is itrdquo Map containing all Maps and Books by SBU was created Itrsquos a quick and easy reference tool

3 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

Quantitative results are achieved through the promotion of visibility and awareness The Return on Investment may not fit a conventional definition but can be measurable and accomplished by challenging the data targets and accompanying commentaryaction plan narrative to drive performance improvement Are the targets realistic yet aggressive Are action plans being documented and carried out Are the actions discussions and decisions leading to improved performance and processes

Government Programsrsquo membership is measured and monitored in various ways via the BIRT Scorecard and other sources For example Federal membership is measured by product then by plan It is also measured by market then by product then by plan By creatively visualizing performance in multiple ways via a Map those same data results can sometimes become very obvious telling a different story that may not be obvious via standard reporting methods It may clearly illustrate that a specific product in a specific market is continuously under-performing for example Fact-based decisions can then be made as to whether or not to continue with this product in this market or it may initiate discussions as to how to grow and retain profitable membership for this product in this market

Another more recent example is an initiative to track claims-review savings By reviewing claims via various processes what savings can be recouped or realized What specific areas are State and Federal teams focusing on that can contribute to overall savings for the SBU Again where applicable there should be consistency in the metrics across

teams Placeholders are included to promote visibility to keep them in the forefront even though the data or processes may not be in place yet But by capturing results on one page via a Map it bridges potential gaps between the teams promoting awareness and synergy across the SBU

4 Qualitative results What ldquosoftrdquo or intangible benefits has the group department or organization received as a result of this solution

A major benefit of the scorecard framework for the Government Programs SBU has been the identification and alignment of roles responsibilities and accountability

The SBUrsquos Senior VP monthly leadership meeting focuses on four areas

bull Performance Performance is covered via the existing incentive strategic and operational metrics

bull Action plans Documenting action plans in the Performance Management Software Suite versus verbalizing action plans establishes ownership and accountability At subsequent meetings management follows up on key action items or plans to determine whether or not the corrective action did take place and if yes did it have the desired results

bull Strategic direction The strategic direction of the various teams is captured as a springboard to strategic thinking discussions and planning So as not to lose sight of short- and long-term strategic planning this aspect of the business now is housed in the BIRT Scorecard completing the strategic planning of the ldquoHow are we going to get thererdquo and ldquoAre we there yetrdquo cycle This holistic approach helps minimize the chances of our scorecard becoming too focused on operational performance and keeps strategic planning dynamic and visible

The value of these metrics is not in the data but in the commentary The individual teamsrsquo strategic direction ldquometricsrdquo are subjective red = 1 yellow = 2 green = 3 The target = 3 Each metric includes a description of the specific strategic path we need to research or move forward on as well as what goal achievement it supports The ldquodatardquo ndash or color ndash is based on basic questions like What did you hope to achieve this month vs What did you actually achieve this month Were there any successes barriers obstacles In addition to accountability the entire SBU benefits from the sharing of information having meaningful discussion taking appropriate action and collaboration

bull Key initiatives The last critical component is the identification and alignment of key initiatives that

are necessary to support achievement of the various incentives strategic goals and direction and operational goals As with the strategic direction metrics the value is in the narrative with the color reflecting what was accomplished for the specific reporting period

5 Innovation Why should this solution be considered an Innovative Solution What makes it unique groundbreaking and superior What unintended results did you realize

Over time the Government Programs Performance Management framework evolved into an innovative solution The process drives performance and isnrsquot necessarily focused on ldquocolorrdquo Rather itrsquos about having the right people in the same room on a regular basis to drive meaningful discussion and to take appropriate action to improve performance

Outside of the standard processes it was the monthly review process that drove effectiveness revisions enhancements and restructuring of the meeting schedule agenda and format The Government Program financial reporting manager would meet with each director and general manager to review their scorecard for completeness as well as for performance from an operational perspective The State and Federal team directors would then meet with their respective management teams to review and discuss performance results in preparation for the joint Government Programs Leadership Meetings The audience included the Senior VP down to team managers key data analysts (data providers) and support function representatives Through trial and error management learned to maximize their time and effectiveness by concentrating on key metrics and topics rather than trying to review all metrics identify leading indicators versus only outcome results and include strategic thinking and initiatives Today the monthly leadership

meetings are much more productive and look at strategic and operational performance

As involvement and participation increased in the team meetings as well as in the leadership meetings it removed silos opened communications enabled the sharing of information and best practices and promoted teamwork across the SBU But most importantly it brought about an awareness and a sense of unity and commitment within the SBU to achieve their goals something that was lacking before

While it was not part of the initial scope management realized shortly after implementation that efficiencies could be gained by replacing an in-depth hard copy monthly report with BIRT-generated results Since the BIRT Scorecard contained the same data with supporting narrative ndash plus additional metrics with narrative ndash monthly performance was captured via a monthly report Book various Maps and BIRT-generated reports Elimination of the hard-copy report was an unintended way of encouraging a more active use of the Performance Management software by management to monitor performance thereby increasing user familiarity with the contents features functionality and navigation

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

Sustainability is achieved through a continuous process of revisiting the scorecard when there are organizational changes looking at the business direction shifts goal changes process changes etc To ensure that metrics are still relevant a filtering process is held with each director and general manager every six to eight months or as necessary During this exercise questions such as the following are asked

gt Performance Management Excellence Awards gt Performance Management Excellence Awards

[ Figure 132 CEOrsquos Book ]

54

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Vol 6 Issue 2 2009

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

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57

Vol 6 Issue 2 2009

3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

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  1. Button 3
Page 17: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

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Vol 6 Issue 2 2009

orders or demand projections The sales department courts potential buyers so that they become actual customers Once they do so sales then returns to identify new targets and tries to transition them Manufacturing works to refill shelves Engineering continues developing products

Employees throughout the organization are focused upon delivering the product or service for which they are responsible The product attributes become the value proposition that will appeal to their customer regardless of whether or not this is an internal or external customer Employees are trained to think in terms of product development delivery and value The organization becomes even if it doesnrsquot know it product centric Believing that a mainstream management theory such as the value chain approach could not be wrong or outdated management is comfortable with this view of their world When they try to become customer-centric they do not know how

Making the Change

Consider for example the electricity powering the light by which you are reading this article It is a fairly simple product that was mainstreamed decades ago and except for new types of power generation it has remained essentially unchanged The traditional value chain for this industry is fairly straightforward Power is generated by a complex and often dangerous power plant and it is delivered to the customer via a complicated and often dangerous network The customer then consumes this power and must pay for it creating the

need for back-office operations such as accounting finance and customer service

Given the complexity of power generation and delivery operations the organization is staffed by a high percentage of engineers many with doctorate degrees and years of specialized training The generation and delivery assets themselves are maintained by highly-trained highly-specialized workers A large percentage of the management team also comes from this background and rose through the ranks of organizations identically structured Combined these employees represent over 75 percent of the organization

Collectively these employees create a culture that is consistent in almost every power utility in the world Their cultures respect academic achievement technical expertise and years of experience in the industry They typically believe in rigid structures inflexible procedures and consistency in design and execution They are truly product focused

Given the potential hazards it is easy to see why they behave the way they do But what happens when this type of organization has to compete in a more open market when transparency is increased or when the customer such as a municipality has a stronger voice or is under the growing influence of being green What happens when the power company must become truly customer-centric

It is nearly impossible for them to succeed Seventy-five percent of the organization has little to do with or has little understanding of the customer

Departing from Tradition

While this product focus is exaggerated within a power utility largely because of their technical nature these factors affect nearly every organization Employees who have great influence within the organization will not yield it to those who have less but who understand the customer better Funding is unlikely to shift from traditionally respected areas to those areas that most affect the customer

For a power utility this means that engineers who have often dedicated their entire lives to the study of their work must be considered equal to project managers and customer service agents most of who do not hold any degrees Money resources and staffing must focus on project management and call center technology not just on million- or billion-dollar assets There must be recognition that these areas equally affect the customer This new perspective must be executed by executives who have spent their entire careers adhering to the traditional values of the product-centric culture But this shift is what customer-centric really means truly understanding and meeting your customersrsquo needs It starts with the customer more specifically it starts with a prospect

Customer-Critical Path

This means that the traditional value chain must be rethought and renamed more appropriately to the customer-critical path A prospect travels this path on their journey to become a customer a customer travels this path toward the goal of becoming a happy customer This is the true value chain of the organization ndash a string of processes that become critical because they directly affect your customer regardless of the product service organizational chart academic degree or bias Find the customer-critical path and you can guide your customers through your organization in the way that is most meaningful to both them and you

But not all customer needs are the same even within an industry that has only one real product like a power utility The customer-critical path may start in several places meeting the needs of

several different types of customers ndash household customers that simply need power turned on or major projects that require significant project management and pre-planning Eventually these starting paths merge It will occur at the point at which all customers are happy From there they may take a different path

again some will terminate service or have new needs There is not one value chain there are many paths a customer might travel through your organization

This new approach offers significant value for organizations that adopt it It allows them to better understand their customers so that they can be more effectively segmented and targeted by products or services This drives the bottom line in several ways A stronger value proposition increases appeal thus driving revenue Better service and customer interaction improve the customer experience and increase customer loyalty driving customer lifetime value

The customer-critical path also becomes a vital decision-making tool for management It provides a clear and unbiased perspective on where resources should and should not be spent It defines the relative worth of projects assets and expenditures painting a clear picture of what the results will be if the customer-critical path is not

properly maintained

And if your mission and vision statement says you are customer-centric it makes your strategic plan more than simple semantics It makes it actionable setting your organization on a path towards true differentiation and market leadership Properly crafted the customer-critical path becomes a pleasant stroll through the park for your customers and it can also become the most profitable path for your organization

David F Giannetto is CEO of The Telos Group co-author of The Performance Power Grid The Proven Method to Create and Sustain Superior

Organizational Performance (J Wiley amp Sons 2006) and a professor in the Executive MBA program of Rutgers University

Mr Giannetto can be reached by email at dgiannettotelosconsultingcom

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35

Vol 6 Issue 2 2009

I Introduction and Background

Who the NMDP is

The National Marrow Donor Programreg (NMDP) and Be The Match FoundationSM are non-profit organizations dedicated to creating an opportunity for all patients to receive the bone marrow or umbilical cord blood transplant they need when they need it Every year thousands of people of

all ages are diagnosed with leukemia and other life-threatening diseases Many of them will die unless they get a bone marrow or cord blood transplant from a matching donor Seventy percent of people do not have a matching donor in their family and depend on the Be The Match RegistrySM to find a match to save their life

The Beginning

When their 10-year-old daughter Laura was diagnosed with leukemia Robert Graves DVM and his wife Sherry were ready to do anything they could to save her They agreed to try a bone marrow transplant from an unrelated donor ndash the first ever for a leukemia patient Laura received her transplant in 1979 at the Fred Hutchinson Cancer Research Center The treatment gave her an extra year and a half of life

The National Bone Marrow

Donor Program

The Balanced ScorecardVision into

Action JourneyBy Howard Rohm

President amp CEO Balanced Scorecard Institute under the guidance of The National Marrow Donation

Programrsquos Michael Boo Chief Strategy Officerand John Rudrud Senior Analyst

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37

Vol 6 Issue 2 2009

The experience inspired Dr Graves to create a national registry of volunteers willing to donate marrow His early efforts brought together other patient families and transplant doctors spurring a federal mandate that led to the creation of the National Marrow Donor Program NMDP began connecting patients with unrelated donors in 1987 with a registry of just 10000 volunteers

What the NMDP Does

The Be The Match Registry has grown to more than seven million donors and over 150000 cord blood units the largest and most racially and ethnically diverse registry of its kind in the world Medical advances are making marrow and umbilical cord blood transplants available to more patients all the time Since 1987 NMDP has arranged for more than 35000 transplants to give patients a second chance at life Today NMDP facilitates more than 4300 transplants a year

Planning for the Future

Many more patients still need help In order to meet the needs of all patients NMDP will need to facilitate 10000 transplants per year by 2015 That is more than double the number of transplants the organization facilitates today NMDP is working to meet this need but canrsquot do it alone Efforts are sustained by

bull A global network of more than 490 leading hospitals blood centers cord blood banks and laboratories

bull Agreements with donor centers cooperative donor registries and cord blood banks worldwide through which the program provides patients access to more than 12 million donors and 300000 cord blood units

bull Continued support from the US government which has entrusted the NMDP to operate the CW Bill Young Cell Transplantation Program the federal program supporting bone marrow and cord blood donation and transplantation

bull Partnerships with corporations service organizations student groups faith-based communities and other organizations

A new and different way of thinking about the NMDPrsquos long-term strategy was required in order to make sure that NMDP would be capable of delivering 10000 transplants per year in 2015 ldquoBusiness as usualrdquo would not get the organization where it needed to be NMDP needed to identify and

aggressively improve in strategic areas critical to the delivery of 10000 transplants

II The Balanced Scorecard Approach

Background

The strategic planning system that had been used at NMDP up to 2007 was a fairly well-developed planning process that tracked initiative performance under seven primary areas of strategic focus While this approach provided a measure of strategic planning for the organization it was too focused on activities and projects rather than on impacts

Early in 2007 NMDP leaders Gordon Bryan Chief Financial Officer and Michael Boo Chief Strategy Officer began developing strategic metrics designed to identify measure and communicate progress in strategic plan objective areas

Selection

As the senior management team evaluated options to integrate broader strategic metrics with the existing strategic business plan the Balanced Scorecard approach emerged as a leading candidate during the initial assessment of planning models because it

bullEncourages development of strategic themes and provides the ability to focus on areas where long-term continuous improvement is needed

bullPermits identification of cause-and-effect relationships between Strategic Objectives within each Theme

bull Facilitates communication of Strategic Objectives that can be portrayed on a strategy map that is easily understood by all employees and stakeholders and shows how the perspectives work together to achieve the mission

bull Assures that the organization focuses on Strategic Objectives and Measures from a CustomerStakeholder perspective and a PeopleKnowledgeTechnology perspective (Historically the organizationrsquos focus was skewed toward the Process and Financial perspectives)

bull Enables leadership to track Strategic Objective performance over the long term rather than tracking the status of supporting projects and initiatives

bull Creates a framework for prioritization of projects initiatives and funding opportunities based on contribution to and support of the Strategic Objectives

bull Allows organizational Strategic Objectives to be cascaded into Department Objectives thereby giving each employee

a more specific understanding of how his or her work impacts and contributes to the Strategic Objectives

bull Drives long-term continuous improvement as Strategic Measures improve over time

bull Facilitates a ldquolearning organizationrdquo where corrective actions are implemented in cases where Strategic or Department Objective Measures are not being met

The NMDP planning team looked at a number of planning models ndash including Balanced Scorecard Six Sigma Lean and TQM ndash and concluded that the Balanced Scorecard approach provided the most versatile and relevant framework for future growth and organizational development

III Scorecard Development ndash NMDP Officer Input

Early to mid 2007 NMDP began the Balanced Scorecard development effort with the help of consultants from the Balanced Scorecard Institute

A comprehensive review of the organizationrsquos strengths weaknesses opportunities and threats organizational pains organization enablers vision and mission was conducted over several days with NMDP officers and senior management These sessions produced a new Mission and Vision Statement and four Strategic Themes (rather than the original seven)

The former mission statement Extend and improve life through innovative cellular transplant therapies was changed to We save lives through cellular transplantation ndash science service and support

ldquoThis new mission statement captures and communicates more directly why we exist and it clearly articulates the three ways that we are able to save livesrdquo explained NMDP CEO Dr Jeffrey Chell

The Overarching Strategic Result in place of a vision statement was developed and shared with employees throughout the organization Meeting the need for 10000 transplants per year by 2015 The senior management team developed a longer more descriptive version of this statement but felt that the shorter version had more impact

ldquoWersquove found that the Overarching Strategic Result has been a great tool to get people thinking about how we will manage

to do more than double our current transplant volumes in a relatively short time ndash just five years from nowrdquo explained initiative sponsor Michael Boo ldquoThis has driven a lot of creative thinking around how to dramatically improve the efficiencies and cost effectiveness of many internal systems and delivery processesrdquo

The four Strategic themes that the NMDP officer group developed and agreed upon are

bull Global Access and Acceptance ndash Getting to Yes Overcome non-cell source barriers to transplant (eg no insurance no transportation no post-transplant support)

bull Deliver Excellent Stakeholder Experience Overcome Cell Source Barriers (making sure a cell source donation is available when itrsquos needed ndash adult or cord)

bull Research Pursue research to improve cell transplantation as a therapy

bull Culture of Excellence Keep up-to-date with talent structure and resources needed to continually improve transplant services

IV Scorecard Development ndash Senior Management

Throughout the spring and summer of 2007 four Theme Teams comprised of senior management met to develop

Theme Team strategy maps that included Theme Objectives by Perspective and proposed Measures for each Theme Objective These served as detailed roadmaps with specific objective areas identified ndash where NMDP needed to focus in order to improve them

The four Theme Team maps were subsequently

combined into an NMDP Strategy Map that included all relevant components from each theme This NMDP Strategy Map is comprised of 13 Strategic Objectives 46 Strategic Measures and seven Strategic Initiatives

Narratives were captured regarding the intent and ultimate end state for each Strategic Objective and detailed descriptions were created for measurement information including rational frequency owner and unit of measure

At this stage in the process the team named the Balanced Scorecard tool ldquoVision into Actionrdquo or ViA ndash NMDPrsquos strategic Performance Management tool On June 1 2007 the ViA Themes and NMDP Strategy Map details were presented to the board of directors by senior management and approved along with a plan to proceed to the next phase of department cascading

A ViA Communications Team was formed to communicate ViA progress to employees on the development of the new Mission Statement Vision Statement and the 13 Strategic Objectives This was done through a combination of pulse checks newsletters

38

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39

Vol 6 Issue 2 2009

intranet messaging e-mails from the CEO leadership training all-staff meetings and promotional contests This was an extremely integral step in the ViA roll-out that provided transparency and generated excitement around the benefits of ViA

V ViA Department Cascading

All departments at the NMDP were scheduled for sessions to develop their department Objectives Measures and Initiatives These were facilitated by internal subject matter experts and included an initial two-day exercise to help the department identify where and how each department contributed to the NMDP Strategic Objectives Worksheets and other preparation material were provided to each participant and collected prior to the cascade session The pre-work information was used to expedite the affinity exercises at each session

These were followed up with sessions to finalize detailed measures with individual measure owners Department teams were comprised of five to 10 key members of each department

The department cascading efforts provided a number of primary benefits to the organization including

bull The articulation in easy-to-understand terms of how each department contributes to the overall success of the Strategic Objectives and ultimately the NMDP Mission

bull A tool to identify gaps or overlaps between departments that can also be a tool for departments to communicate with each other in terms of supporting initiatives

bull A tool for each department to prioritize initiatives and activities Also it provided a mechanism to support requests for funding new opportunities

bull A clear framework for corrective action where measures are not being successfully met

bull A common format and mechanism for reporting department performance to officers and senior management

bull A common format and mechanism for reporting and reviewing department performance with staff

bull Help with the development of individual job performance appraisal content ndash which should be designed to support Department Objectives

Department Cascading was complete in early 2009 There are over 200 separate department measures that are tracked each quarter

VI NMDP ViA Today

NMDP has established a department Champions Council Members of the Council are becoming experts at using the automated ViA software Today this is being used at department staff meetings to facilitate discussion around corrective action for underperforming or unacceptable Department Measures Departments use the department Strategy Maps to guide staff meeting discussions on performance measures and corrective action plans

ldquoAll business cases or requests for funding must be submitted with clear tangible descriptions of how the effort will impact ViA Strategic Objectivesrdquo explained Boo ldquoOnce all business cases have been submitted to the officer group for final approval they are prioritized in order of their impact on ViA Strategic Objectivesrdquo

All strategic and department measures are required to be reported into the ViA system each quarter Each is color coded based on an officer-approved target matrix Each measure owner is required to provide comments regarding the measure performance for the quarter and discuss how he or she expects the measure to end the fiscal year This information is shared with senior management for review and follow-up with measure owners ifwhen necessary

Senior management uses the color-coded NMDP Strategic Map as a basis for discussing quarterly performance and identifying

Strategic Objective areas that may need attention corrective action andor more resources NMDP tries to focus not only on corrective action items but also highlight success stories where outstanding performance has been reported

All employees will soon have access to the web-based ViA application to provide as much transparency and visibility as possible in order to become a truly strategy-focused organization

ldquoVision into Action has been successful within the organization to a great extent because of the consistent support and guidance provided by NMDP leadership including our CEO Dr Jeffrey Chell my fellow Officers and the Board of Directorsrdquo said Boo

Howard Rohm President and CEO of the Balanced Scorecard Institute is a Performance Management trainer consultant and technologist with over 40 years experience Mr Rohm has helped dozens of organizations worldwide build Balanced Scorecard and other performance planning and management systems

48

Pe

rform

Mag

azine

Info

rmatio

n in

Actio

n

A community for BIRT users and developers sponsored by Actuate

A Report Writing Portal lets your end users browse reports modify them and even develop

new ones You can set one up in three steps when you use AJAX-based BIRT technology

Because the end user tools to modify and create reports are AJAX-based therersquos no desktop

software to install Users get the reports they need quicker while the burden on development

resources to create new reports is reduced

BIRT Exchange is a community site that offers the broadest collection of resources for the Eclipse BIRT (Business Intelligence

and Reporting Tools) project and for integrating spreadsheets with Java The site is sponsored by Actuate a co-leader of the BIRT project

Sponsored by

See a Demo

at Booth

602

For More Information

Contact us by phone at 1-800-884-8665

1-913-851-5300 from outside of the United States

wwwbirt-exchangecom wwwactuatecom

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Perform M

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41

Vol 6 Issue 2 2009

JCIrsquos previous approach of one-off negotiating as well as its spirit of continuous improvement and customer focus meant that it had only one-off measures in every location The company for example had 127 variations of the measure lsquomaintenance managementrsquo Many were very similar but since they were not exactly the same they could not be compared effectively Inefficiency at gathering and maintaining data at different locations across the globe made the task difficult as well Data was collected any way possible thrown into a cell or a Power Point slide and handed in at the end of the month It was highly inefficient extremely customized at every location and did not allow any ability to benchmark compare or look at best practices These concerns and requirements drove JCI on its scorecarding journey

The Solution

In initiating its scorecarding solution JCI first had to establish the right measures Business leaders were chosen for all of the scorecard categories and for each of them a business owner was selected for each region these business leaders and owners were responsible for defining the standards and measures Data collection systems in some cases proved difficult there wasnrsquot always centralized information available ndash in some cases data needed to be gathered right down at the account level This meant that the process of data collection and identifying measures was a significant job To get started though JCIrsquos web programmers were able to put up some scorecards quickly to allow the company to start architecting measures this allowed business leaders across the globe to start identifying their measures and to put the processes in place regionally to collect information

Before committing to a technology JCI wanted to know 100 percent of their business requirements and this was the point of their web-based scorecard To assist in this endeavor Actuate ndash prior to selection ndash let the company test drive their product The JCI team went through and looked at every single screen determining where they had to configure the tool and for every single screen they also made what they called a lsquoblueprintrsquo creating an Excel template with fields to correspond with every field on each screen It was incredibly detailed work but they wanted to ensure no mistakes were made and that the business requirements were defined To accomplish this there was an extreme amount of detailed coordination globally with twice-weekly meetings for the worldwide team in charge of the initiative A byproduct of the process was that the team learned to use the Actuate BIRT Performance Scorecard and basically built all of the blueprints for the project design

JCIrsquos audience for the project upon kick off were the 300 external customers that would have access to this information Customers previous to this were getting their information via Excel and PowerPoint In addition to these external customers was the population of approximately 1000 internal users within JCI itself These included account leaders and functional leaders including those from HR Finance Safety etc

Three primary functions of the project were

1 To replace the PowerPoint slides used in global and regional monthly internal operational reviews

2 To very quickly be able to become best in class JCI wanted everyone who had an account to be able to see where they sat compared to their peers This provided individuals ndash when faced with a problem ndash the ability to quickly identify and contact others who had solved the same issue

3 To standardize customer faith in contractually required performance measures This was a key goal of the company which felt that if they were going to benchmark and compare they needed to bring in the best practices learned at one location to their work at other locations

These three primary functions were heavily loaded in JCIrsquos rating system as the company set out to choose the right software for their scorecarding project It was also important that the software be intuitive as there was no time for hundreds of hours of global-wide training The software had to be rapid and easily configurable with limited IT assistance As JCI is a very large organization with a lot of systems in place the team in charge also wanted the software to be easily adjustable to the companyrsquos rapidly changing business they didnrsquot want to have to get into queue for IT every time a change had to be introduced or a new customer added

JCI Chooses ActuateFour vendors were evaluated for JCIrsquos scorecarding project with a global team in place to provide a systematic discussion of the defined business process and requirements The product chosen was the BIRT Performance Scorecard JCI had 30 days of Actuate Professional Services and planned for monthly micro improvements and quarterly macro improvements

Upon purchasing the BIRT Scorecard in January 2007 using the blueprints theyrsquod established already the company wrote their business processes They were able to go live in 90 days helped by the homework they did with the blueprints the web scorecard and the data collection processes It was an incredibly smooth implementation overall

The Results

Whereas JCI originally started out with a model of one-off negotiations with customer measures the scorecarding project has led to approximately 70 percent agreement on JCI standard metrics The company does a customer satisfaction survey both annually and quarterly and aims to demonstrate evidence towards continual improvement

Since implementation of the project the company has also been solving its data integrity issues Previously two regions might have been using the same words but not the same data collection methods ndash this made it impossible to introduce benchmarking and comparison between areas Now those problems are being solved and benchmarking and comparison are possible to the benefit of both JCI as it strives for best-in-class status and its customers

By David F GiannettoCEOThe Telos Group

Johnson Controls Incorporated (JCI) is a $38 billion company with a total of 140000 employees working out of more than 1300 locations in 125 countries worldwide Headquartered in Milwaukee Wisconsin the company provides a range of services including

real-estate portfolio management property management facility management and design and construction services

To initiate its scorecarding project JCI began by creating five categories of measurement Business Performance (this includes all financial measures) Service Delivery Customer Satisfaction Safety and People While the other four categories may be typical to most organizations the Service Delivery category was designed to take JCIrsquos measurements down to the client-site level which includes over 300 locations globally where the company has contracts In some cases there might be one staff member assigned to manage a single building while other times a staff member has a whole portfolio they maintain Measuring performance at all of these locations and levels proved a complex undertaking

Strategic Initiatives

Like all service providers JCI has to demonstrate that they add value Scorecarding allows them to do this both internally

and externally using data-driven results Since JCI has always been very much a data-driven organization anyway with a manufacturing background this was a natural fit for the corporation

JCIrsquos organization-wide motto is to be as good everywhere as they are somewhere Theyrsquove found that in any one account they may excel in several areas but perhaps not in all areas elsewhere though on another account someone else might have the skills needed to fill in those gaps The companyrsquos goal was to share information and communicate it between different locations across the globe allowing the company as a whole to get better faster and to benefit from the skills and strengths of its individual members Scorecarding was introduced as a way to help share this information and to introduce benchmarking within the company

The Requirements

To get started on their scorecarding initiative JCI examined each of their US contracts What they found was that there were no standards between clients and therefore no ability to benchmark Customers though wanted the ability to find out how they stood in relation to other customers This was impossible under the circumstances

Global Operational Excellence and a Performance Scorecard System A Case Study of

Johnson Controls Incorporated

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agazine Information in Action

43

Vol 6 Issue 2 2009

Out of Touch With Crucial Data

Previously when Helzbergrsquos divisional and regional vice presidents went on the road access to their key performance metrics was restricted Without a laptop and a WiFi or hotel network connection to the internet they were ldquoflying blindrdquo according to Greg Backhus Helzbergrsquos Director of Data Warehouse and Decision Support Systems As a result they did a lot of faxing it was the only way they could get the current data that they needed in order to

About Webalo

Webalo technology transforms enterprise applications and data to make them compatible with mobile

devices This eliminates the need for traditional custom programming reducing the deployment of mobile applications from weeks or months to in most cases less than a day The resulting ldquoanywhere anytime on-demandrdquo availability of enterprise data on handheld devices turns such devices into viable alternatives to desktop laptop and palmtop computer hardware and lets mobile employees work more productively ndash on the spot ndash to solve problems answer questions monitor operations close sales and make informed decisions

The Webalo Mobile Dashboard Service ndash available in both internet-based and enterprise intranet-based implementations ndash lets non-IT business administrators securely specify the content of mobile-accessible information and the companion Webalo Proxy Server configures it in seconds to conform to the native user interface of any BlackBerry Windows Mobile Pocket PC Palm Symbian or Java-enabled smartphone

CLARITY CUT AND CARATSHow Helzberg Diamonds Made Sales Data Clearer Eliminated

Delays and Lightened the Load for its Divisional Executives

A diamond may be forever but a lot has changed in how theyrsquove been marketed and sold during Helzberg Diamondsrsquo nine decades in business A single store has expanded to nearly 300 locations from coast to coast and border to border Sales can also be made online now And information about every sale can be accessed in an instance through the companyrsquos enterprise systems

bull Compare actual sales to their goals and plans

bull Determine transaction counts for total dollar volume and average sales value

bull Break down sales by product category

bull Monitor attachment rates for products and services related to the main product sale

For example onsite at individual stores it was difficult to gauge how an active price-reduction sale was affecting unit and dollar

volumes unless there happened to be a coffee shop next door with a WiFi connection that would let Helzbergrsquos executives access the enterprise system

The Three Cs of Information Access

The three Cs of diamond grading ndash clarity cut and carats (or weight) ndash turned out to be applicable to data access as well But it took a transition to handheld devices and to the Webalo Mobile Dashboard to achieve it

Though laptop computers had gotten lighter and lighter over the years they were still considerably heavier than the Pocket PC-based smartphones that Helzbergrsquos executives used Since they were carrying those handhelds in addition to their laptops the VPs were open to the idea of being able to

bull Access sales metrics on their handhelds

bull Have data available on-demand from any location with a wireless signal

bull Navigate quickly to the figures they needed

bull Get updates to their metrics automatically

bull Review the information offline

It was the only time that carrying less weight ndash or carats ndash added more value Using a simple step-by-step wizard Helzbergrsquos support staff was able to configure their enterprise reports in a matter of hours They then assigned access privileges to each executive to control who could see what information and uploaded the file to the Webalo server That satisfied how data was ldquocutrdquo

For each mobile user regardless of the brand and model of smartphone they used the Webalo Mobile Dashboard conformed the information to the devicesrsquo user interface The application worked and looked exactly like any other application developed specifically for their mobile devices the on-screen text was easy to read and navigation used the same menu structure That meant there was no learning curve to delay user acceptance and productivity Clarity was essential and the Mobile Dashboard delivered it right down to the ability to bookmark commonly-referred-to displays for instant reference enhancing on-the-spot productivity even more

Speed and Simplicity

Productivity was also improved on the IT side Without the need for custom programming to conform the information to each smartphone brand and model deployment was reduced from months to hours

Since adopting the Webalo Mobile Dashboard Backhus says ldquoThe Divisional VPs find it invaluable They get more done because they donrsquot have the delays they used to haverdquo Decisions that used to have to wait for current data are now made right away relying on the right data presented in the right format

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Sustainable practice has graduated from being market hype

to becoming a strategic initiative important for driving a successful enterprise It not only reduces a companyrsquos impact on the environment but can help organizations achieve a competitive advantage to build their brand impact top and bottom line and improve customer acquisition satisfaction and retention

Creating a road map towards sustainable management can require an entire shift in corporate thinking one that involves searching for buy-in at all levels establishing useful metrics and introducing practices that get beyond the green hype The end result though is not just a greener organization but also one with a more prosperous future

Why Sustainability

In August 2008 a survey undertaken by CIO Insight examined green practices in business focusing on the reasons why CIOs introduce sustainability efforts into their organizations The number one reason why organizations went green the study found was that the people within those companies sincerely had a concern for the environment A total of 74 percent of respondents answered that way 32 percent of which listed it as their most influential driver

Other influential drivers named in the survey included

Financial Drivers Companies found sustainability to be a way of cutting costs If they could cut energy costs not only would that help the environment but it would also help create cost savings The second most popular answer in the CIO Insight study financial impacts are key to implementing sustainability in most organizations Examples of financial impacts possible from sustainability were presented at CFO

2 The CFO Green

Conference which took place in May 2008

bull Dupont reduced its CO2 emissions by 70 percent saving the company $3 billion

bull FedEx redesigned its delivery trucks making them more aerodynamic This reduced the amount of particulate pollutants nitrogen and carbon the trucks put into the atmosphere and it also reduced the companyrsquos fuel costs exceptionally

Customer Image In the CIO Insight survey the third motive listed by CIOs for introducing sustainability ndash at 64 percent ndash was company image Consumers are becoming more and more aware of whether companies or organizations are living up to sustainability ideals They will notice if a company image or brand value reflects this concern for the environment Meaningful sustainability efforts can help gain customer approval as in the following case

bull Wal-Mart and Procter amp Gamble together agreed to sell liquid laundry detergent only in concentrated form This saved shelf space for Wal-Mart reduced water use by 400 million gallons for Procter amp Gamble and eliminated 45 million pounds of plastic waste

Regulatory Requirements The surveyrsquos fourth most popular reply ndash at only 25 percent ndash were current or potential regulations including the cap and trade systems being implemented which will require companies to buy carbon and sell carbon credits

Shareholder Pressure Finally at fifth in the CIO Insight survey ndash with 14 percent of responses ndash was shareholder or public pressure pressure building from shareholders to put forth sustainability efforts Pressure at this level is often mixed though as shareholders are also likely to express a desire that they donrsquot want shares to decline in value The general message may be that it is fine to introduce sustainability measures only as long as there is no risk that they will hurt the company

A Road Map Towards Sustainability

Step 1 Identify What Drives Your Organization

The first step in the road map towards sustainability is identifying key drivers Some drivers vary from one organization to another while others seem to drive any organization regardless of the industry Drivers incude

Internal drivers

bull Cost cuttings and savings

bull Employees including both the satisfaction of current employees as well as the recruitment and retention of future employees

bull Investment

External Drivers

bull Stakeholders including both those within the company ndash the employees discussed above ndash as well as stakeholders outside of the company

bull Brand awareness because consumers are becoming increasingly aware of the choices that are available to them and are making choices based on a companyrsquos green initiatives

Future drivers

bull Tax incentives

bull The recruitment and retention of future customers

Step 2 Select Your Metrics

In general terms sustainability metrics will fall into one of four major categories those that affect the climate those that affect the oceans those that affect human health and those that affect common issues like the land the water the wildlife etc

Within those large categories are smaller areas of interest that companies must examine to introduce organization-wide sustainability management carbon monoxide use energy consumption water consumption and fuel consumption are prime examples

Carbon Monoxide Use Many of the questions companies are asking themselves in regards to carbon monoxide use include

A Road Map of Key

Sustainability Metrics

That Impact Bottom

Line

46

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Vol 6 Issue 2 2009

bull How much carbon monoxide do we produce

bull Which processes in our overall manufacturing or delivery use produce the most emissions

bull Can we determine the indirect emissions For example leave a computer plugged in and itrsquos still on the grid creating an indirect carbon dioxide emitter How can we measure that

bull Whatrsquos our cost Do we have metrics that tell us what our CO2 emissions cost us

bull Can we predict into the future If we continue on this path without doing anything where will we be next month Next quarter Next year

Some examples of metrics related to carbon monoxide use include carbon dioxide emissions per employee (similar to revenue per employee) carbon footprint metrics and transportation distances

Energy Consumption Areas of interest related to corporate energy consumption may include the following

bull How much do we consume From what sources

bull Are we on the grid Are we using solar power or wind power or another alternative power

bull How much is used by our data center How do we make the data center greener

bull Where can we reduce consumption

Companies today are reducing energy consumption in a variety of ways by introducing energy audits and looking at energy-saving appliances and also through energy incentive programs for employees within which companies can incentivize and introduce bonus plans

Water Consumption An examination of a companyrsquos water consumption may include some of the following queries

bull How much water do we currently use and where

bull Where in our processes do we use the most water

bull Can we predict how much wersquore going to use in the future

Some of the examples of metrics that companies introduce in terms of water consumption include improved water quality how much impact low-flow or low-volume toilets have on water consumption and how much water is or can be recycled

Fuel Consumption Questions to consider in relation to fuel consumption include

bull How much fuel do we use

bull Where are the inefficiencies

bull Whatrsquos being predicted for fuel usage in the future

bull Can we analyze our logistics so that we can determine how to reduce our fuel consumption For example where are our trucks traveling How are they traveling What kinds of loads are they carrying

Step 3 Recognize Challenges

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly As such easier ways to enhance communication and to increase visibility need to be introduced both inside and outside of an organization

There are also constantly evolving requirements measures and standards of success With everything so new companies are challenged to find ways to compare their sustainability efforts with other organizations The biggest challenge in implementing these processes or attracting metrics may be that they require an entire shift in thinking Additional challenges that exist in the implementation of a sustainability model include

1 Financial concerns Companies must truly see potential for returns on investment or these initiatives can become non-starters or stall

2 Lack of regulatory motivation While not as common as it once was certain organizations arenrsquot motivated to introduce sustainability until government regulations are in place

3 Lack of a formal strategy for sustainability Without a formal strategy it is difficult for companies to determine where they need to go

4 Determining appropriate metrics Companies must choose metrics that are useful demonstrate impact and say something about their own corporate environment

5 Calculating metrics Standard algorithms and calculations exist to calculate metrics but companies must find the appropriate ones and use them

6 Finding quality data to plug into those calculations As in any Business Intelligence project if the quality of the data is questionable then so are the sustainability metrics themselves

7 Determining the scope of the sustainability project The scope is critical Narrow it down to something achievable feasible and useful

Step 4 Learn from Best Practices

What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde

bull Assign an executive champion Without an executive champion to drive the project initiatives are more likely to lack a holistic view and a clear vision for an implementation strategy they may take longer to implement and theyrsquore less likely to yield the required results To provide motivation consider linking the championrsquos salary directly to sustainability savings or to the increased revenues that result from sustainability efforts

bull Implement internal training and education Educate employees on what to expect and what is expected from them

bull Improve communication Communicate both to employees and to stakeholders outside of the organization

bull Start to think about alternative energy management and control strategies

bull Engage the use of technology and services For companies not sure where to begin a sustainability consultant can assist with program selection as can vendors such as Actuate which has a sustainability management solution in place

Step 5 Get Started

Understand that sustainability development is a business opportunity Donrsquot look at it solely as environmental although that is also important Itrsquos an opportunity for companies to introduce more cost-effective processes and procedures and to become more cost effective in their vehicle fleet manufacturing delivery etc

bull Create globally consistent metrics and goals Large agencies have to make sure that the entire group is on board and that they have consistent metrics and consistent goals across the enterprise

bull Find the value and drive the action What is the value of monitoring these sustainability areas and whatrsquos the course of action if you see that theyrsquore going off kilter or are not tracking as expected

bull Start small Initiatives such as these can become incredibly complex very quickly Start small and build in the complexity with each ensuing project

bull Get buy in People need to understand what the metrics are why theyrsquore there and what they mean to each individualrsquos situation (as reflected in individual bonus plans perhaps) Measure using industry-accepted methodologies and industry-accepted protocols continually improve metrics through optimization and forecasting and constantly optimize metrics and forecast into the future

bull As much as possible accurately report to everybody environmental performance Let employees shareholders customers and regulators know If data is questionable fix it get quality processes in place and then run the metrics

bull Determine environmental impact Has waste been reduced Has resource utilization been reduced Has the company improved environmental factors

Also consider using an Open Source vendor The Open Source community is beginning to develop sustainability metrics and Open Source reduces the costs of developing metrics while software costs for the project are reduced as well

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly ldquo

rdquo What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde ldquo

rdquo

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Step 6 Move from Green Hype to Sustainable Action

A successful sustainability initiative involves identifying metrics that will translate into cost savings and benefits while avoiding metrics that are not likely to yield required results To accomplish this start small start with a small department within the organization and then repeat this continuing to repeat it throughout the enterprise

bull Start with basic conservation Change behavior reduce consumption and in the process increase investment

bull Start reusing Improve productivity improve efficiency and create less waste

bull When this translates into cost savings re-invest Grow make larger improvements and increase involvement

Projects that make good starting points

bull Measure carbon dioxide emissions throughout a value chain or product lifespan Look for potential improvements

bull Ensure regulatory compliance By knowing what the regulations are companies can determine what metrics need to be in place

bull Identify ways to promote and profit from more environmentally-respectful goods and services Companies can promote environmentally-respectful goods and services while also using sustainability to help the company

Monitor the effects of each project to determine which strategies have the most impact both physically in terms of

the environment and financially in terms of revenues and cost savings Publicize how metrics are tracking over time

Actuate for Sustainability Management

Actuate for Sustainability Management is a solution by Actuate that integrates highly interactive visually rich dashboards There are pre-built sustainability scorecards strategy maps and over 100 pre-built metrics across the economic social and environmental aspects of sustainability

The Actuate BIRT Performance Scorecard supports the metrics defined including

bull Reducing an organizationrsquos environmental footprint

bull Building green facilities and buildings

bull Compliance and reporting

bull Manufacturing

bull Community and engagement

bull Human development including employee well-being and satisfaction

Actuate for Sustainability Management provides collaboration across regulators consumers and non-governmental organizations Dashboards and scorecards come integrated with reporting so as to improve reporting to stakeholders both outside and inside of an organization All of the products are built on Actuatersquos dependable cost-effective and scaleable platform

Performance Management solutions help organizations understand act on and influence business decisions processes and measures of business success The 2009 Actuate Performance Management Excellence Awards will honor customer success stories in four key areas Over the next several issues Perform Magazine will highlight some of the entries in these categories

Category 1 Go Green

Each year the concept of environmental responsibility has implications for both the private and public sector specifically with regards to how each measures the performance of their operations For organizations using the Actuate BIRT Performance Scorecard to measure the progress of organizational Green initiatives how have they responded to the challenge and how do they use the BIRT Performance Scorecard to ensure they stay on track

Category 2 The Perfect Slice

Successful Performance Management comes in all sizes Some initiatives are enterprise-wide while others are focused around specific business units or functions yet still encompass a holistic approach to Performance Management by looking beyond financial indicators to a more balanced set of indicators This category includes organizations deploying the Actuate BIRT Performance Scorecard with a focus on improving the performance of individual business units or functions and includes the measurement of people and processes

Category 3 Big Bang

Carefully executed Performance Management initiatives begin with a measured approach to the initial implementation and quickly expand to other parts of the organization aligning business units to strategy at each step This category is open to Actuate customers who initially implemented the Actuate BIRT Performance Scorecard to a limited user community and through careful change management and planning expanded the use of the BIRT Performance Scorecard throughout the organization

Category 4 Super Size

Award-winning enterprises achieve breakthrough results in the financial customer operational and people perspectives of their business and leverage internal champions across the organization to ensure ongoing and sustainable success The key to achieving these results lies in total visibility of all business units aligned to strategy This category is open to any Actuate customer with a fully deployed enterprise-wide Actuate BIRT Performance Scorecard implementation

Actuate Performance Management Excellence Awards2009

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HealthNow New York Inc headquartered in Buffalo is one of New York Statersquos leading healthcare companies doing business as BlueCross BlueShield of Western New York BlueShield of Northeastern New York HealthNow in the Central New York region and Brokerage Concepts Inc in Pennsylvania

Improving the health of people and communities are HealthNowrsquos corporate priorities and for more than 70 years the company has been a proactive partner in health working to improve the quality of care and the quality of life for everyone it serves In 2008 HealthNow provided access to care to more than 820000 members and in 2008 company revenues grew to $227 billion

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution and describe what you were trying to achieve as a group function or department

A few years ago HealthNow New York Inc determined that the key to its continued success would be its ability to differentiate itself from other healthcare plans in ways that could not be readily duplicated or copied by their competitors In an increasingly crowded marketplace to get the attention of new customers and retain existing ones HealthNow needed to set itself apart from others

This lasting competitive advantage needed to come from an organizational culture that was dedicated to a relentless focus on meeting customersrsquo needs It needed to be highly responsive supportive flexible and nimble particularly as the healthcare marketplace continues to change with more responsibility placed upon its customers

To that end a new business model was implemented to provide the framework for customer focus Under the new structure the company was divided into four strategic business units (SBUs) each responsible for financial contribution customer satisfaction medical utilization and market share of a specific book of business

Each SBU includes its own set of functions including sales account and broker management product configuration customer intelligence pricing enrollment and billing customer service medical management and HR support Each business unit is led by an executive who is fully accountable for the unit operations and for bottom-line performance of the entire business unit Each SBU is supported by various corporate support functions (Actuarial IT Legal etc)

Implementation of the new business model began with a reorganization of the senior management structure The senior management of each SBU has specific incentive goals as well as strategic goals aligned with the corporate incentive Those strategic goals then drill down to ldquoteamrdquo incentives and to a blend of strategic and operational goals

This was a completely new way of looking at our business It was a blank slate requiring new processes and new methodology as well as an examination of existing metrics and processes to determine what added value and where the strengths weaknesses opportunities and gaps were

Under this new structure the Government Programs State and Federal products SBU ndash which historically had some inefficient end-to-end processes lacked internal controls and had minimal oversight of financial performance ndash was able to set a foundation and develop a growth strategy In order to achieve this mission and to align track monitor improve and communicate performance the Senior Vice President of the Government Programs SBU elected to utilize a Performance Management framework via the Actuate BIRT Performance Scorecard

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

As a point of reference the Government Programs SBU is comprised of a State Government Programs team a Federal Government Programs team an Operations team and a Sales team The Performance Management design team was comprised of the Actuate system administratorfacilitator the Government Program financial reporting manager and two SBU data analysts Input from the various teamsrsquo management staff was gathered as the design got more granular

Discussions around the design of the Government Programs scorecard began with two basic questions

1 What are the handful (ideally six to eight) of key performance indicators that are necessary to run and manage your business and to indicate that yoursquore on the right path to achieving your goals

Defining the key performance indicators was a challenge that required the Actuate system administrator in a facilitative role to get intimately involved in order to keep the discussions focused and high level and to limit scope creep The incentive goals were clearly defined at the corporate and SBU level however the tough question was how should they drill down in the BIRT Performance Scorecard The facilitator posed the following questions to the other members of the design team

bull How do you usually look at your business

bull How are the primary source documents that capture this information structured

bull What other ways do you look at your business

Taking the answers to these questions a step further the facilitator asked the next question Is the drill-down structure the same for the core strategic or team metrics The answer was yes By taking this approach we were provided with consistency in how the teams look at their business and the performance of their core indicators

Once the incentive and strategic goals were identified more leading and lagging operational measures were defined such as

bull Call centers

bull Accuracy

bull Quality

bull Sales Performance

2 Who is your audience

Through the entire measure selection and definition process the design team was constantly reminded to keep a second question ndash who is your audience ndash in mind This helped keep the focus on the critical few and keep the number of metrics down to a manageable amount Links to supporting documentation were created to provide easy access to the granular data without burdening the scorecardrsquos objective

The audience in this case was the SBUrsquos Senior Vice President followed by the State Director Federal Director Operations Director and Sales General Manager It then cascades down to each directorrsquos management team and the data providers

In order to provide a complete and consistent picture of State and Federal performance for senior management where

gt Performance Management Excellence Awards

HealthNow New YorkCategory 2 Entry The Perfect Slice

gt Performance Management Excellence Awards

[ Figure 131 Homepage Map ]

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Vol 6 Issue 2 2009

possible the same or comparable measures were created for each team For example when looking at the various call center metrics ndash even if the definitions and targets slightly differed ndash if one team was consistently exceeding or meeting their target it sparked group discussion around best practices processes staffing and target definition

Utilization of Maps continues to play a major role in communicating performance Again focusing on our audience there is a Map at the Senior VP level which then links to a high-level Map for the State director and staff and for the Federal director and staff The one-page snapshot allows management to easily view performance then to drill down to specifics via additional detailed Maps or Books Because the audience embraces the Maps concept a ldquoWhere is itrdquo Map containing all Maps and Books by SBU was created Itrsquos a quick and easy reference tool

3 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

Quantitative results are achieved through the promotion of visibility and awareness The Return on Investment may not fit a conventional definition but can be measurable and accomplished by challenging the data targets and accompanying commentaryaction plan narrative to drive performance improvement Are the targets realistic yet aggressive Are action plans being documented and carried out Are the actions discussions and decisions leading to improved performance and processes

Government Programsrsquo membership is measured and monitored in various ways via the BIRT Scorecard and other sources For example Federal membership is measured by product then by plan It is also measured by market then by product then by plan By creatively visualizing performance in multiple ways via a Map those same data results can sometimes become very obvious telling a different story that may not be obvious via standard reporting methods It may clearly illustrate that a specific product in a specific market is continuously under-performing for example Fact-based decisions can then be made as to whether or not to continue with this product in this market or it may initiate discussions as to how to grow and retain profitable membership for this product in this market

Another more recent example is an initiative to track claims-review savings By reviewing claims via various processes what savings can be recouped or realized What specific areas are State and Federal teams focusing on that can contribute to overall savings for the SBU Again where applicable there should be consistency in the metrics across

teams Placeholders are included to promote visibility to keep them in the forefront even though the data or processes may not be in place yet But by capturing results on one page via a Map it bridges potential gaps between the teams promoting awareness and synergy across the SBU

4 Qualitative results What ldquosoftrdquo or intangible benefits has the group department or organization received as a result of this solution

A major benefit of the scorecard framework for the Government Programs SBU has been the identification and alignment of roles responsibilities and accountability

The SBUrsquos Senior VP monthly leadership meeting focuses on four areas

bull Performance Performance is covered via the existing incentive strategic and operational metrics

bull Action plans Documenting action plans in the Performance Management Software Suite versus verbalizing action plans establishes ownership and accountability At subsequent meetings management follows up on key action items or plans to determine whether or not the corrective action did take place and if yes did it have the desired results

bull Strategic direction The strategic direction of the various teams is captured as a springboard to strategic thinking discussions and planning So as not to lose sight of short- and long-term strategic planning this aspect of the business now is housed in the BIRT Scorecard completing the strategic planning of the ldquoHow are we going to get thererdquo and ldquoAre we there yetrdquo cycle This holistic approach helps minimize the chances of our scorecard becoming too focused on operational performance and keeps strategic planning dynamic and visible

The value of these metrics is not in the data but in the commentary The individual teamsrsquo strategic direction ldquometricsrdquo are subjective red = 1 yellow = 2 green = 3 The target = 3 Each metric includes a description of the specific strategic path we need to research or move forward on as well as what goal achievement it supports The ldquodatardquo ndash or color ndash is based on basic questions like What did you hope to achieve this month vs What did you actually achieve this month Were there any successes barriers obstacles In addition to accountability the entire SBU benefits from the sharing of information having meaningful discussion taking appropriate action and collaboration

bull Key initiatives The last critical component is the identification and alignment of key initiatives that

are necessary to support achievement of the various incentives strategic goals and direction and operational goals As with the strategic direction metrics the value is in the narrative with the color reflecting what was accomplished for the specific reporting period

5 Innovation Why should this solution be considered an Innovative Solution What makes it unique groundbreaking and superior What unintended results did you realize

Over time the Government Programs Performance Management framework evolved into an innovative solution The process drives performance and isnrsquot necessarily focused on ldquocolorrdquo Rather itrsquos about having the right people in the same room on a regular basis to drive meaningful discussion and to take appropriate action to improve performance

Outside of the standard processes it was the monthly review process that drove effectiveness revisions enhancements and restructuring of the meeting schedule agenda and format The Government Program financial reporting manager would meet with each director and general manager to review their scorecard for completeness as well as for performance from an operational perspective The State and Federal team directors would then meet with their respective management teams to review and discuss performance results in preparation for the joint Government Programs Leadership Meetings The audience included the Senior VP down to team managers key data analysts (data providers) and support function representatives Through trial and error management learned to maximize their time and effectiveness by concentrating on key metrics and topics rather than trying to review all metrics identify leading indicators versus only outcome results and include strategic thinking and initiatives Today the monthly leadership

meetings are much more productive and look at strategic and operational performance

As involvement and participation increased in the team meetings as well as in the leadership meetings it removed silos opened communications enabled the sharing of information and best practices and promoted teamwork across the SBU But most importantly it brought about an awareness and a sense of unity and commitment within the SBU to achieve their goals something that was lacking before

While it was not part of the initial scope management realized shortly after implementation that efficiencies could be gained by replacing an in-depth hard copy monthly report with BIRT-generated results Since the BIRT Scorecard contained the same data with supporting narrative ndash plus additional metrics with narrative ndash monthly performance was captured via a monthly report Book various Maps and BIRT-generated reports Elimination of the hard-copy report was an unintended way of encouraging a more active use of the Performance Management software by management to monitor performance thereby increasing user familiarity with the contents features functionality and navigation

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

Sustainability is achieved through a continuous process of revisiting the scorecard when there are organizational changes looking at the business direction shifts goal changes process changes etc To ensure that metrics are still relevant a filtering process is held with each director and general manager every six to eight months or as necessary During this exercise questions such as the following are asked

gt Performance Management Excellence Awards gt Performance Management Excellence Awards

[ Figure 132 CEOrsquos Book ]

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Vol 6 Issue 2 2009

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

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3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

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  1. Button 3
Page 18: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

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I Introduction and Background

Who the NMDP is

The National Marrow Donor Programreg (NMDP) and Be The Match FoundationSM are non-profit organizations dedicated to creating an opportunity for all patients to receive the bone marrow or umbilical cord blood transplant they need when they need it Every year thousands of people of

all ages are diagnosed with leukemia and other life-threatening diseases Many of them will die unless they get a bone marrow or cord blood transplant from a matching donor Seventy percent of people do not have a matching donor in their family and depend on the Be The Match RegistrySM to find a match to save their life

The Beginning

When their 10-year-old daughter Laura was diagnosed with leukemia Robert Graves DVM and his wife Sherry were ready to do anything they could to save her They agreed to try a bone marrow transplant from an unrelated donor ndash the first ever for a leukemia patient Laura received her transplant in 1979 at the Fred Hutchinson Cancer Research Center The treatment gave her an extra year and a half of life

The National Bone Marrow

Donor Program

The Balanced ScorecardVision into

Action JourneyBy Howard Rohm

President amp CEO Balanced Scorecard Institute under the guidance of The National Marrow Donation

Programrsquos Michael Boo Chief Strategy Officerand John Rudrud Senior Analyst

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37

Vol 6 Issue 2 2009

The experience inspired Dr Graves to create a national registry of volunteers willing to donate marrow His early efforts brought together other patient families and transplant doctors spurring a federal mandate that led to the creation of the National Marrow Donor Program NMDP began connecting patients with unrelated donors in 1987 with a registry of just 10000 volunteers

What the NMDP Does

The Be The Match Registry has grown to more than seven million donors and over 150000 cord blood units the largest and most racially and ethnically diverse registry of its kind in the world Medical advances are making marrow and umbilical cord blood transplants available to more patients all the time Since 1987 NMDP has arranged for more than 35000 transplants to give patients a second chance at life Today NMDP facilitates more than 4300 transplants a year

Planning for the Future

Many more patients still need help In order to meet the needs of all patients NMDP will need to facilitate 10000 transplants per year by 2015 That is more than double the number of transplants the organization facilitates today NMDP is working to meet this need but canrsquot do it alone Efforts are sustained by

bull A global network of more than 490 leading hospitals blood centers cord blood banks and laboratories

bull Agreements with donor centers cooperative donor registries and cord blood banks worldwide through which the program provides patients access to more than 12 million donors and 300000 cord blood units

bull Continued support from the US government which has entrusted the NMDP to operate the CW Bill Young Cell Transplantation Program the federal program supporting bone marrow and cord blood donation and transplantation

bull Partnerships with corporations service organizations student groups faith-based communities and other organizations

A new and different way of thinking about the NMDPrsquos long-term strategy was required in order to make sure that NMDP would be capable of delivering 10000 transplants per year in 2015 ldquoBusiness as usualrdquo would not get the organization where it needed to be NMDP needed to identify and

aggressively improve in strategic areas critical to the delivery of 10000 transplants

II The Balanced Scorecard Approach

Background

The strategic planning system that had been used at NMDP up to 2007 was a fairly well-developed planning process that tracked initiative performance under seven primary areas of strategic focus While this approach provided a measure of strategic planning for the organization it was too focused on activities and projects rather than on impacts

Early in 2007 NMDP leaders Gordon Bryan Chief Financial Officer and Michael Boo Chief Strategy Officer began developing strategic metrics designed to identify measure and communicate progress in strategic plan objective areas

Selection

As the senior management team evaluated options to integrate broader strategic metrics with the existing strategic business plan the Balanced Scorecard approach emerged as a leading candidate during the initial assessment of planning models because it

bullEncourages development of strategic themes and provides the ability to focus on areas where long-term continuous improvement is needed

bullPermits identification of cause-and-effect relationships between Strategic Objectives within each Theme

bull Facilitates communication of Strategic Objectives that can be portrayed on a strategy map that is easily understood by all employees and stakeholders and shows how the perspectives work together to achieve the mission

bull Assures that the organization focuses on Strategic Objectives and Measures from a CustomerStakeholder perspective and a PeopleKnowledgeTechnology perspective (Historically the organizationrsquos focus was skewed toward the Process and Financial perspectives)

bull Enables leadership to track Strategic Objective performance over the long term rather than tracking the status of supporting projects and initiatives

bull Creates a framework for prioritization of projects initiatives and funding opportunities based on contribution to and support of the Strategic Objectives

bull Allows organizational Strategic Objectives to be cascaded into Department Objectives thereby giving each employee

a more specific understanding of how his or her work impacts and contributes to the Strategic Objectives

bull Drives long-term continuous improvement as Strategic Measures improve over time

bull Facilitates a ldquolearning organizationrdquo where corrective actions are implemented in cases where Strategic or Department Objective Measures are not being met

The NMDP planning team looked at a number of planning models ndash including Balanced Scorecard Six Sigma Lean and TQM ndash and concluded that the Balanced Scorecard approach provided the most versatile and relevant framework for future growth and organizational development

III Scorecard Development ndash NMDP Officer Input

Early to mid 2007 NMDP began the Balanced Scorecard development effort with the help of consultants from the Balanced Scorecard Institute

A comprehensive review of the organizationrsquos strengths weaknesses opportunities and threats organizational pains organization enablers vision and mission was conducted over several days with NMDP officers and senior management These sessions produced a new Mission and Vision Statement and four Strategic Themes (rather than the original seven)

The former mission statement Extend and improve life through innovative cellular transplant therapies was changed to We save lives through cellular transplantation ndash science service and support

ldquoThis new mission statement captures and communicates more directly why we exist and it clearly articulates the three ways that we are able to save livesrdquo explained NMDP CEO Dr Jeffrey Chell

The Overarching Strategic Result in place of a vision statement was developed and shared with employees throughout the organization Meeting the need for 10000 transplants per year by 2015 The senior management team developed a longer more descriptive version of this statement but felt that the shorter version had more impact

ldquoWersquove found that the Overarching Strategic Result has been a great tool to get people thinking about how we will manage

to do more than double our current transplant volumes in a relatively short time ndash just five years from nowrdquo explained initiative sponsor Michael Boo ldquoThis has driven a lot of creative thinking around how to dramatically improve the efficiencies and cost effectiveness of many internal systems and delivery processesrdquo

The four Strategic themes that the NMDP officer group developed and agreed upon are

bull Global Access and Acceptance ndash Getting to Yes Overcome non-cell source barriers to transplant (eg no insurance no transportation no post-transplant support)

bull Deliver Excellent Stakeholder Experience Overcome Cell Source Barriers (making sure a cell source donation is available when itrsquos needed ndash adult or cord)

bull Research Pursue research to improve cell transplantation as a therapy

bull Culture of Excellence Keep up-to-date with talent structure and resources needed to continually improve transplant services

IV Scorecard Development ndash Senior Management

Throughout the spring and summer of 2007 four Theme Teams comprised of senior management met to develop

Theme Team strategy maps that included Theme Objectives by Perspective and proposed Measures for each Theme Objective These served as detailed roadmaps with specific objective areas identified ndash where NMDP needed to focus in order to improve them

The four Theme Team maps were subsequently

combined into an NMDP Strategy Map that included all relevant components from each theme This NMDP Strategy Map is comprised of 13 Strategic Objectives 46 Strategic Measures and seven Strategic Initiatives

Narratives were captured regarding the intent and ultimate end state for each Strategic Objective and detailed descriptions were created for measurement information including rational frequency owner and unit of measure

At this stage in the process the team named the Balanced Scorecard tool ldquoVision into Actionrdquo or ViA ndash NMDPrsquos strategic Performance Management tool On June 1 2007 the ViA Themes and NMDP Strategy Map details were presented to the board of directors by senior management and approved along with a plan to proceed to the next phase of department cascading

A ViA Communications Team was formed to communicate ViA progress to employees on the development of the new Mission Statement Vision Statement and the 13 Strategic Objectives This was done through a combination of pulse checks newsletters

38

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39

Vol 6 Issue 2 2009

intranet messaging e-mails from the CEO leadership training all-staff meetings and promotional contests This was an extremely integral step in the ViA roll-out that provided transparency and generated excitement around the benefits of ViA

V ViA Department Cascading

All departments at the NMDP were scheduled for sessions to develop their department Objectives Measures and Initiatives These were facilitated by internal subject matter experts and included an initial two-day exercise to help the department identify where and how each department contributed to the NMDP Strategic Objectives Worksheets and other preparation material were provided to each participant and collected prior to the cascade session The pre-work information was used to expedite the affinity exercises at each session

These were followed up with sessions to finalize detailed measures with individual measure owners Department teams were comprised of five to 10 key members of each department

The department cascading efforts provided a number of primary benefits to the organization including

bull The articulation in easy-to-understand terms of how each department contributes to the overall success of the Strategic Objectives and ultimately the NMDP Mission

bull A tool to identify gaps or overlaps between departments that can also be a tool for departments to communicate with each other in terms of supporting initiatives

bull A tool for each department to prioritize initiatives and activities Also it provided a mechanism to support requests for funding new opportunities

bull A clear framework for corrective action where measures are not being successfully met

bull A common format and mechanism for reporting department performance to officers and senior management

bull A common format and mechanism for reporting and reviewing department performance with staff

bull Help with the development of individual job performance appraisal content ndash which should be designed to support Department Objectives

Department Cascading was complete in early 2009 There are over 200 separate department measures that are tracked each quarter

VI NMDP ViA Today

NMDP has established a department Champions Council Members of the Council are becoming experts at using the automated ViA software Today this is being used at department staff meetings to facilitate discussion around corrective action for underperforming or unacceptable Department Measures Departments use the department Strategy Maps to guide staff meeting discussions on performance measures and corrective action plans

ldquoAll business cases or requests for funding must be submitted with clear tangible descriptions of how the effort will impact ViA Strategic Objectivesrdquo explained Boo ldquoOnce all business cases have been submitted to the officer group for final approval they are prioritized in order of their impact on ViA Strategic Objectivesrdquo

All strategic and department measures are required to be reported into the ViA system each quarter Each is color coded based on an officer-approved target matrix Each measure owner is required to provide comments regarding the measure performance for the quarter and discuss how he or she expects the measure to end the fiscal year This information is shared with senior management for review and follow-up with measure owners ifwhen necessary

Senior management uses the color-coded NMDP Strategic Map as a basis for discussing quarterly performance and identifying

Strategic Objective areas that may need attention corrective action andor more resources NMDP tries to focus not only on corrective action items but also highlight success stories where outstanding performance has been reported

All employees will soon have access to the web-based ViA application to provide as much transparency and visibility as possible in order to become a truly strategy-focused organization

ldquoVision into Action has been successful within the organization to a great extent because of the consistent support and guidance provided by NMDP leadership including our CEO Dr Jeffrey Chell my fellow Officers and the Board of Directorsrdquo said Boo

Howard Rohm President and CEO of the Balanced Scorecard Institute is a Performance Management trainer consultant and technologist with over 40 years experience Mr Rohm has helped dozens of organizations worldwide build Balanced Scorecard and other performance planning and management systems

48

Pe

rform

Mag

azine

Info

rmatio

n in

Actio

n

A community for BIRT users and developers sponsored by Actuate

A Report Writing Portal lets your end users browse reports modify them and even develop

new ones You can set one up in three steps when you use AJAX-based BIRT technology

Because the end user tools to modify and create reports are AJAX-based therersquos no desktop

software to install Users get the reports they need quicker while the burden on development

resources to create new reports is reduced

BIRT Exchange is a community site that offers the broadest collection of resources for the Eclipse BIRT (Business Intelligence

and Reporting Tools) project and for integrating spreadsheets with Java The site is sponsored by Actuate a co-leader of the BIRT project

Sponsored by

See a Demo

at Booth

602

For More Information

Contact us by phone at 1-800-884-8665

1-913-851-5300 from outside of the United States

wwwbirt-exchangecom wwwactuatecom

40

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41

Vol 6 Issue 2 2009

JCIrsquos previous approach of one-off negotiating as well as its spirit of continuous improvement and customer focus meant that it had only one-off measures in every location The company for example had 127 variations of the measure lsquomaintenance managementrsquo Many were very similar but since they were not exactly the same they could not be compared effectively Inefficiency at gathering and maintaining data at different locations across the globe made the task difficult as well Data was collected any way possible thrown into a cell or a Power Point slide and handed in at the end of the month It was highly inefficient extremely customized at every location and did not allow any ability to benchmark compare or look at best practices These concerns and requirements drove JCI on its scorecarding journey

The Solution

In initiating its scorecarding solution JCI first had to establish the right measures Business leaders were chosen for all of the scorecard categories and for each of them a business owner was selected for each region these business leaders and owners were responsible for defining the standards and measures Data collection systems in some cases proved difficult there wasnrsquot always centralized information available ndash in some cases data needed to be gathered right down at the account level This meant that the process of data collection and identifying measures was a significant job To get started though JCIrsquos web programmers were able to put up some scorecards quickly to allow the company to start architecting measures this allowed business leaders across the globe to start identifying their measures and to put the processes in place regionally to collect information

Before committing to a technology JCI wanted to know 100 percent of their business requirements and this was the point of their web-based scorecard To assist in this endeavor Actuate ndash prior to selection ndash let the company test drive their product The JCI team went through and looked at every single screen determining where they had to configure the tool and for every single screen they also made what they called a lsquoblueprintrsquo creating an Excel template with fields to correspond with every field on each screen It was incredibly detailed work but they wanted to ensure no mistakes were made and that the business requirements were defined To accomplish this there was an extreme amount of detailed coordination globally with twice-weekly meetings for the worldwide team in charge of the initiative A byproduct of the process was that the team learned to use the Actuate BIRT Performance Scorecard and basically built all of the blueprints for the project design

JCIrsquos audience for the project upon kick off were the 300 external customers that would have access to this information Customers previous to this were getting their information via Excel and PowerPoint In addition to these external customers was the population of approximately 1000 internal users within JCI itself These included account leaders and functional leaders including those from HR Finance Safety etc

Three primary functions of the project were

1 To replace the PowerPoint slides used in global and regional monthly internal operational reviews

2 To very quickly be able to become best in class JCI wanted everyone who had an account to be able to see where they sat compared to their peers This provided individuals ndash when faced with a problem ndash the ability to quickly identify and contact others who had solved the same issue

3 To standardize customer faith in contractually required performance measures This was a key goal of the company which felt that if they were going to benchmark and compare they needed to bring in the best practices learned at one location to their work at other locations

These three primary functions were heavily loaded in JCIrsquos rating system as the company set out to choose the right software for their scorecarding project It was also important that the software be intuitive as there was no time for hundreds of hours of global-wide training The software had to be rapid and easily configurable with limited IT assistance As JCI is a very large organization with a lot of systems in place the team in charge also wanted the software to be easily adjustable to the companyrsquos rapidly changing business they didnrsquot want to have to get into queue for IT every time a change had to be introduced or a new customer added

JCI Chooses ActuateFour vendors were evaluated for JCIrsquos scorecarding project with a global team in place to provide a systematic discussion of the defined business process and requirements The product chosen was the BIRT Performance Scorecard JCI had 30 days of Actuate Professional Services and planned for monthly micro improvements and quarterly macro improvements

Upon purchasing the BIRT Scorecard in January 2007 using the blueprints theyrsquod established already the company wrote their business processes They were able to go live in 90 days helped by the homework they did with the blueprints the web scorecard and the data collection processes It was an incredibly smooth implementation overall

The Results

Whereas JCI originally started out with a model of one-off negotiations with customer measures the scorecarding project has led to approximately 70 percent agreement on JCI standard metrics The company does a customer satisfaction survey both annually and quarterly and aims to demonstrate evidence towards continual improvement

Since implementation of the project the company has also been solving its data integrity issues Previously two regions might have been using the same words but not the same data collection methods ndash this made it impossible to introduce benchmarking and comparison between areas Now those problems are being solved and benchmarking and comparison are possible to the benefit of both JCI as it strives for best-in-class status and its customers

By David F GiannettoCEOThe Telos Group

Johnson Controls Incorporated (JCI) is a $38 billion company with a total of 140000 employees working out of more than 1300 locations in 125 countries worldwide Headquartered in Milwaukee Wisconsin the company provides a range of services including

real-estate portfolio management property management facility management and design and construction services

To initiate its scorecarding project JCI began by creating five categories of measurement Business Performance (this includes all financial measures) Service Delivery Customer Satisfaction Safety and People While the other four categories may be typical to most organizations the Service Delivery category was designed to take JCIrsquos measurements down to the client-site level which includes over 300 locations globally where the company has contracts In some cases there might be one staff member assigned to manage a single building while other times a staff member has a whole portfolio they maintain Measuring performance at all of these locations and levels proved a complex undertaking

Strategic Initiatives

Like all service providers JCI has to demonstrate that they add value Scorecarding allows them to do this both internally

and externally using data-driven results Since JCI has always been very much a data-driven organization anyway with a manufacturing background this was a natural fit for the corporation

JCIrsquos organization-wide motto is to be as good everywhere as they are somewhere Theyrsquove found that in any one account they may excel in several areas but perhaps not in all areas elsewhere though on another account someone else might have the skills needed to fill in those gaps The companyrsquos goal was to share information and communicate it between different locations across the globe allowing the company as a whole to get better faster and to benefit from the skills and strengths of its individual members Scorecarding was introduced as a way to help share this information and to introduce benchmarking within the company

The Requirements

To get started on their scorecarding initiative JCI examined each of their US contracts What they found was that there were no standards between clients and therefore no ability to benchmark Customers though wanted the ability to find out how they stood in relation to other customers This was impossible under the circumstances

Global Operational Excellence and a Performance Scorecard System A Case Study of

Johnson Controls Incorporated

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Vol 6 Issue 2 2009

Out of Touch With Crucial Data

Previously when Helzbergrsquos divisional and regional vice presidents went on the road access to their key performance metrics was restricted Without a laptop and a WiFi or hotel network connection to the internet they were ldquoflying blindrdquo according to Greg Backhus Helzbergrsquos Director of Data Warehouse and Decision Support Systems As a result they did a lot of faxing it was the only way they could get the current data that they needed in order to

About Webalo

Webalo technology transforms enterprise applications and data to make them compatible with mobile

devices This eliminates the need for traditional custom programming reducing the deployment of mobile applications from weeks or months to in most cases less than a day The resulting ldquoanywhere anytime on-demandrdquo availability of enterprise data on handheld devices turns such devices into viable alternatives to desktop laptop and palmtop computer hardware and lets mobile employees work more productively ndash on the spot ndash to solve problems answer questions monitor operations close sales and make informed decisions

The Webalo Mobile Dashboard Service ndash available in both internet-based and enterprise intranet-based implementations ndash lets non-IT business administrators securely specify the content of mobile-accessible information and the companion Webalo Proxy Server configures it in seconds to conform to the native user interface of any BlackBerry Windows Mobile Pocket PC Palm Symbian or Java-enabled smartphone

CLARITY CUT AND CARATSHow Helzberg Diamonds Made Sales Data Clearer Eliminated

Delays and Lightened the Load for its Divisional Executives

A diamond may be forever but a lot has changed in how theyrsquove been marketed and sold during Helzberg Diamondsrsquo nine decades in business A single store has expanded to nearly 300 locations from coast to coast and border to border Sales can also be made online now And information about every sale can be accessed in an instance through the companyrsquos enterprise systems

bull Compare actual sales to their goals and plans

bull Determine transaction counts for total dollar volume and average sales value

bull Break down sales by product category

bull Monitor attachment rates for products and services related to the main product sale

For example onsite at individual stores it was difficult to gauge how an active price-reduction sale was affecting unit and dollar

volumes unless there happened to be a coffee shop next door with a WiFi connection that would let Helzbergrsquos executives access the enterprise system

The Three Cs of Information Access

The three Cs of diamond grading ndash clarity cut and carats (or weight) ndash turned out to be applicable to data access as well But it took a transition to handheld devices and to the Webalo Mobile Dashboard to achieve it

Though laptop computers had gotten lighter and lighter over the years they were still considerably heavier than the Pocket PC-based smartphones that Helzbergrsquos executives used Since they were carrying those handhelds in addition to their laptops the VPs were open to the idea of being able to

bull Access sales metrics on their handhelds

bull Have data available on-demand from any location with a wireless signal

bull Navigate quickly to the figures they needed

bull Get updates to their metrics automatically

bull Review the information offline

It was the only time that carrying less weight ndash or carats ndash added more value Using a simple step-by-step wizard Helzbergrsquos support staff was able to configure their enterprise reports in a matter of hours They then assigned access privileges to each executive to control who could see what information and uploaded the file to the Webalo server That satisfied how data was ldquocutrdquo

For each mobile user regardless of the brand and model of smartphone they used the Webalo Mobile Dashboard conformed the information to the devicesrsquo user interface The application worked and looked exactly like any other application developed specifically for their mobile devices the on-screen text was easy to read and navigation used the same menu structure That meant there was no learning curve to delay user acceptance and productivity Clarity was essential and the Mobile Dashboard delivered it right down to the ability to bookmark commonly-referred-to displays for instant reference enhancing on-the-spot productivity even more

Speed and Simplicity

Productivity was also improved on the IT side Without the need for custom programming to conform the information to each smartphone brand and model deployment was reduced from months to hours

Since adopting the Webalo Mobile Dashboard Backhus says ldquoThe Divisional VPs find it invaluable They get more done because they donrsquot have the delays they used to haverdquo Decisions that used to have to wait for current data are now made right away relying on the right data presented in the right format

44

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Vol 6 Issue 2 2009

Sustainable practice has graduated from being market hype

to becoming a strategic initiative important for driving a successful enterprise It not only reduces a companyrsquos impact on the environment but can help organizations achieve a competitive advantage to build their brand impact top and bottom line and improve customer acquisition satisfaction and retention

Creating a road map towards sustainable management can require an entire shift in corporate thinking one that involves searching for buy-in at all levels establishing useful metrics and introducing practices that get beyond the green hype The end result though is not just a greener organization but also one with a more prosperous future

Why Sustainability

In August 2008 a survey undertaken by CIO Insight examined green practices in business focusing on the reasons why CIOs introduce sustainability efforts into their organizations The number one reason why organizations went green the study found was that the people within those companies sincerely had a concern for the environment A total of 74 percent of respondents answered that way 32 percent of which listed it as their most influential driver

Other influential drivers named in the survey included

Financial Drivers Companies found sustainability to be a way of cutting costs If they could cut energy costs not only would that help the environment but it would also help create cost savings The second most popular answer in the CIO Insight study financial impacts are key to implementing sustainability in most organizations Examples of financial impacts possible from sustainability were presented at CFO

2 The CFO Green

Conference which took place in May 2008

bull Dupont reduced its CO2 emissions by 70 percent saving the company $3 billion

bull FedEx redesigned its delivery trucks making them more aerodynamic This reduced the amount of particulate pollutants nitrogen and carbon the trucks put into the atmosphere and it also reduced the companyrsquos fuel costs exceptionally

Customer Image In the CIO Insight survey the third motive listed by CIOs for introducing sustainability ndash at 64 percent ndash was company image Consumers are becoming more and more aware of whether companies or organizations are living up to sustainability ideals They will notice if a company image or brand value reflects this concern for the environment Meaningful sustainability efforts can help gain customer approval as in the following case

bull Wal-Mart and Procter amp Gamble together agreed to sell liquid laundry detergent only in concentrated form This saved shelf space for Wal-Mart reduced water use by 400 million gallons for Procter amp Gamble and eliminated 45 million pounds of plastic waste

Regulatory Requirements The surveyrsquos fourth most popular reply ndash at only 25 percent ndash were current or potential regulations including the cap and trade systems being implemented which will require companies to buy carbon and sell carbon credits

Shareholder Pressure Finally at fifth in the CIO Insight survey ndash with 14 percent of responses ndash was shareholder or public pressure pressure building from shareholders to put forth sustainability efforts Pressure at this level is often mixed though as shareholders are also likely to express a desire that they donrsquot want shares to decline in value The general message may be that it is fine to introduce sustainability measures only as long as there is no risk that they will hurt the company

A Road Map Towards Sustainability

Step 1 Identify What Drives Your Organization

The first step in the road map towards sustainability is identifying key drivers Some drivers vary from one organization to another while others seem to drive any organization regardless of the industry Drivers incude

Internal drivers

bull Cost cuttings and savings

bull Employees including both the satisfaction of current employees as well as the recruitment and retention of future employees

bull Investment

External Drivers

bull Stakeholders including both those within the company ndash the employees discussed above ndash as well as stakeholders outside of the company

bull Brand awareness because consumers are becoming increasingly aware of the choices that are available to them and are making choices based on a companyrsquos green initiatives

Future drivers

bull Tax incentives

bull The recruitment and retention of future customers

Step 2 Select Your Metrics

In general terms sustainability metrics will fall into one of four major categories those that affect the climate those that affect the oceans those that affect human health and those that affect common issues like the land the water the wildlife etc

Within those large categories are smaller areas of interest that companies must examine to introduce organization-wide sustainability management carbon monoxide use energy consumption water consumption and fuel consumption are prime examples

Carbon Monoxide Use Many of the questions companies are asking themselves in regards to carbon monoxide use include

A Road Map of Key

Sustainability Metrics

That Impact Bottom

Line

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Vol 6 Issue 2 2009

bull How much carbon monoxide do we produce

bull Which processes in our overall manufacturing or delivery use produce the most emissions

bull Can we determine the indirect emissions For example leave a computer plugged in and itrsquos still on the grid creating an indirect carbon dioxide emitter How can we measure that

bull Whatrsquos our cost Do we have metrics that tell us what our CO2 emissions cost us

bull Can we predict into the future If we continue on this path without doing anything where will we be next month Next quarter Next year

Some examples of metrics related to carbon monoxide use include carbon dioxide emissions per employee (similar to revenue per employee) carbon footprint metrics and transportation distances

Energy Consumption Areas of interest related to corporate energy consumption may include the following

bull How much do we consume From what sources

bull Are we on the grid Are we using solar power or wind power or another alternative power

bull How much is used by our data center How do we make the data center greener

bull Where can we reduce consumption

Companies today are reducing energy consumption in a variety of ways by introducing energy audits and looking at energy-saving appliances and also through energy incentive programs for employees within which companies can incentivize and introduce bonus plans

Water Consumption An examination of a companyrsquos water consumption may include some of the following queries

bull How much water do we currently use and where

bull Where in our processes do we use the most water

bull Can we predict how much wersquore going to use in the future

Some of the examples of metrics that companies introduce in terms of water consumption include improved water quality how much impact low-flow or low-volume toilets have on water consumption and how much water is or can be recycled

Fuel Consumption Questions to consider in relation to fuel consumption include

bull How much fuel do we use

bull Where are the inefficiencies

bull Whatrsquos being predicted for fuel usage in the future

bull Can we analyze our logistics so that we can determine how to reduce our fuel consumption For example where are our trucks traveling How are they traveling What kinds of loads are they carrying

Step 3 Recognize Challenges

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly As such easier ways to enhance communication and to increase visibility need to be introduced both inside and outside of an organization

There are also constantly evolving requirements measures and standards of success With everything so new companies are challenged to find ways to compare their sustainability efforts with other organizations The biggest challenge in implementing these processes or attracting metrics may be that they require an entire shift in thinking Additional challenges that exist in the implementation of a sustainability model include

1 Financial concerns Companies must truly see potential for returns on investment or these initiatives can become non-starters or stall

2 Lack of regulatory motivation While not as common as it once was certain organizations arenrsquot motivated to introduce sustainability until government regulations are in place

3 Lack of a formal strategy for sustainability Without a formal strategy it is difficult for companies to determine where they need to go

4 Determining appropriate metrics Companies must choose metrics that are useful demonstrate impact and say something about their own corporate environment

5 Calculating metrics Standard algorithms and calculations exist to calculate metrics but companies must find the appropriate ones and use them

6 Finding quality data to plug into those calculations As in any Business Intelligence project if the quality of the data is questionable then so are the sustainability metrics themselves

7 Determining the scope of the sustainability project The scope is critical Narrow it down to something achievable feasible and useful

Step 4 Learn from Best Practices

What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde

bull Assign an executive champion Without an executive champion to drive the project initiatives are more likely to lack a holistic view and a clear vision for an implementation strategy they may take longer to implement and theyrsquore less likely to yield the required results To provide motivation consider linking the championrsquos salary directly to sustainability savings or to the increased revenues that result from sustainability efforts

bull Implement internal training and education Educate employees on what to expect and what is expected from them

bull Improve communication Communicate both to employees and to stakeholders outside of the organization

bull Start to think about alternative energy management and control strategies

bull Engage the use of technology and services For companies not sure where to begin a sustainability consultant can assist with program selection as can vendors such as Actuate which has a sustainability management solution in place

Step 5 Get Started

Understand that sustainability development is a business opportunity Donrsquot look at it solely as environmental although that is also important Itrsquos an opportunity for companies to introduce more cost-effective processes and procedures and to become more cost effective in their vehicle fleet manufacturing delivery etc

bull Create globally consistent metrics and goals Large agencies have to make sure that the entire group is on board and that they have consistent metrics and consistent goals across the enterprise

bull Find the value and drive the action What is the value of monitoring these sustainability areas and whatrsquos the course of action if you see that theyrsquore going off kilter or are not tracking as expected

bull Start small Initiatives such as these can become incredibly complex very quickly Start small and build in the complexity with each ensuing project

bull Get buy in People need to understand what the metrics are why theyrsquore there and what they mean to each individualrsquos situation (as reflected in individual bonus plans perhaps) Measure using industry-accepted methodologies and industry-accepted protocols continually improve metrics through optimization and forecasting and constantly optimize metrics and forecast into the future

bull As much as possible accurately report to everybody environmental performance Let employees shareholders customers and regulators know If data is questionable fix it get quality processes in place and then run the metrics

bull Determine environmental impact Has waste been reduced Has resource utilization been reduced Has the company improved environmental factors

Also consider using an Open Source vendor The Open Source community is beginning to develop sustainability metrics and Open Source reduces the costs of developing metrics while software costs for the project are reduced as well

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly ldquo

rdquo What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde ldquo

rdquo

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Step 6 Move from Green Hype to Sustainable Action

A successful sustainability initiative involves identifying metrics that will translate into cost savings and benefits while avoiding metrics that are not likely to yield required results To accomplish this start small start with a small department within the organization and then repeat this continuing to repeat it throughout the enterprise

bull Start with basic conservation Change behavior reduce consumption and in the process increase investment

bull Start reusing Improve productivity improve efficiency and create less waste

bull When this translates into cost savings re-invest Grow make larger improvements and increase involvement

Projects that make good starting points

bull Measure carbon dioxide emissions throughout a value chain or product lifespan Look for potential improvements

bull Ensure regulatory compliance By knowing what the regulations are companies can determine what metrics need to be in place

bull Identify ways to promote and profit from more environmentally-respectful goods and services Companies can promote environmentally-respectful goods and services while also using sustainability to help the company

Monitor the effects of each project to determine which strategies have the most impact both physically in terms of

the environment and financially in terms of revenues and cost savings Publicize how metrics are tracking over time

Actuate for Sustainability Management

Actuate for Sustainability Management is a solution by Actuate that integrates highly interactive visually rich dashboards There are pre-built sustainability scorecards strategy maps and over 100 pre-built metrics across the economic social and environmental aspects of sustainability

The Actuate BIRT Performance Scorecard supports the metrics defined including

bull Reducing an organizationrsquos environmental footprint

bull Building green facilities and buildings

bull Compliance and reporting

bull Manufacturing

bull Community and engagement

bull Human development including employee well-being and satisfaction

Actuate for Sustainability Management provides collaboration across regulators consumers and non-governmental organizations Dashboards and scorecards come integrated with reporting so as to improve reporting to stakeholders both outside and inside of an organization All of the products are built on Actuatersquos dependable cost-effective and scaleable platform

Performance Management solutions help organizations understand act on and influence business decisions processes and measures of business success The 2009 Actuate Performance Management Excellence Awards will honor customer success stories in four key areas Over the next several issues Perform Magazine will highlight some of the entries in these categories

Category 1 Go Green

Each year the concept of environmental responsibility has implications for both the private and public sector specifically with regards to how each measures the performance of their operations For organizations using the Actuate BIRT Performance Scorecard to measure the progress of organizational Green initiatives how have they responded to the challenge and how do they use the BIRT Performance Scorecard to ensure they stay on track

Category 2 The Perfect Slice

Successful Performance Management comes in all sizes Some initiatives are enterprise-wide while others are focused around specific business units or functions yet still encompass a holistic approach to Performance Management by looking beyond financial indicators to a more balanced set of indicators This category includes organizations deploying the Actuate BIRT Performance Scorecard with a focus on improving the performance of individual business units or functions and includes the measurement of people and processes

Category 3 Big Bang

Carefully executed Performance Management initiatives begin with a measured approach to the initial implementation and quickly expand to other parts of the organization aligning business units to strategy at each step This category is open to Actuate customers who initially implemented the Actuate BIRT Performance Scorecard to a limited user community and through careful change management and planning expanded the use of the BIRT Performance Scorecard throughout the organization

Category 4 Super Size

Award-winning enterprises achieve breakthrough results in the financial customer operational and people perspectives of their business and leverage internal champions across the organization to ensure ongoing and sustainable success The key to achieving these results lies in total visibility of all business units aligned to strategy This category is open to any Actuate customer with a fully deployed enterprise-wide Actuate BIRT Performance Scorecard implementation

Actuate Performance Management Excellence Awards2009

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HealthNow New York Inc headquartered in Buffalo is one of New York Statersquos leading healthcare companies doing business as BlueCross BlueShield of Western New York BlueShield of Northeastern New York HealthNow in the Central New York region and Brokerage Concepts Inc in Pennsylvania

Improving the health of people and communities are HealthNowrsquos corporate priorities and for more than 70 years the company has been a proactive partner in health working to improve the quality of care and the quality of life for everyone it serves In 2008 HealthNow provided access to care to more than 820000 members and in 2008 company revenues grew to $227 billion

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution and describe what you were trying to achieve as a group function or department

A few years ago HealthNow New York Inc determined that the key to its continued success would be its ability to differentiate itself from other healthcare plans in ways that could not be readily duplicated or copied by their competitors In an increasingly crowded marketplace to get the attention of new customers and retain existing ones HealthNow needed to set itself apart from others

This lasting competitive advantage needed to come from an organizational culture that was dedicated to a relentless focus on meeting customersrsquo needs It needed to be highly responsive supportive flexible and nimble particularly as the healthcare marketplace continues to change with more responsibility placed upon its customers

To that end a new business model was implemented to provide the framework for customer focus Under the new structure the company was divided into four strategic business units (SBUs) each responsible for financial contribution customer satisfaction medical utilization and market share of a specific book of business

Each SBU includes its own set of functions including sales account and broker management product configuration customer intelligence pricing enrollment and billing customer service medical management and HR support Each business unit is led by an executive who is fully accountable for the unit operations and for bottom-line performance of the entire business unit Each SBU is supported by various corporate support functions (Actuarial IT Legal etc)

Implementation of the new business model began with a reorganization of the senior management structure The senior management of each SBU has specific incentive goals as well as strategic goals aligned with the corporate incentive Those strategic goals then drill down to ldquoteamrdquo incentives and to a blend of strategic and operational goals

This was a completely new way of looking at our business It was a blank slate requiring new processes and new methodology as well as an examination of existing metrics and processes to determine what added value and where the strengths weaknesses opportunities and gaps were

Under this new structure the Government Programs State and Federal products SBU ndash which historically had some inefficient end-to-end processes lacked internal controls and had minimal oversight of financial performance ndash was able to set a foundation and develop a growth strategy In order to achieve this mission and to align track monitor improve and communicate performance the Senior Vice President of the Government Programs SBU elected to utilize a Performance Management framework via the Actuate BIRT Performance Scorecard

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

As a point of reference the Government Programs SBU is comprised of a State Government Programs team a Federal Government Programs team an Operations team and a Sales team The Performance Management design team was comprised of the Actuate system administratorfacilitator the Government Program financial reporting manager and two SBU data analysts Input from the various teamsrsquo management staff was gathered as the design got more granular

Discussions around the design of the Government Programs scorecard began with two basic questions

1 What are the handful (ideally six to eight) of key performance indicators that are necessary to run and manage your business and to indicate that yoursquore on the right path to achieving your goals

Defining the key performance indicators was a challenge that required the Actuate system administrator in a facilitative role to get intimately involved in order to keep the discussions focused and high level and to limit scope creep The incentive goals were clearly defined at the corporate and SBU level however the tough question was how should they drill down in the BIRT Performance Scorecard The facilitator posed the following questions to the other members of the design team

bull How do you usually look at your business

bull How are the primary source documents that capture this information structured

bull What other ways do you look at your business

Taking the answers to these questions a step further the facilitator asked the next question Is the drill-down structure the same for the core strategic or team metrics The answer was yes By taking this approach we were provided with consistency in how the teams look at their business and the performance of their core indicators

Once the incentive and strategic goals were identified more leading and lagging operational measures were defined such as

bull Call centers

bull Accuracy

bull Quality

bull Sales Performance

2 Who is your audience

Through the entire measure selection and definition process the design team was constantly reminded to keep a second question ndash who is your audience ndash in mind This helped keep the focus on the critical few and keep the number of metrics down to a manageable amount Links to supporting documentation were created to provide easy access to the granular data without burdening the scorecardrsquos objective

The audience in this case was the SBUrsquos Senior Vice President followed by the State Director Federal Director Operations Director and Sales General Manager It then cascades down to each directorrsquos management team and the data providers

In order to provide a complete and consistent picture of State and Federal performance for senior management where

gt Performance Management Excellence Awards

HealthNow New YorkCategory 2 Entry The Perfect Slice

gt Performance Management Excellence Awards

[ Figure 131 Homepage Map ]

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Vol 6 Issue 2 2009

possible the same or comparable measures were created for each team For example when looking at the various call center metrics ndash even if the definitions and targets slightly differed ndash if one team was consistently exceeding or meeting their target it sparked group discussion around best practices processes staffing and target definition

Utilization of Maps continues to play a major role in communicating performance Again focusing on our audience there is a Map at the Senior VP level which then links to a high-level Map for the State director and staff and for the Federal director and staff The one-page snapshot allows management to easily view performance then to drill down to specifics via additional detailed Maps or Books Because the audience embraces the Maps concept a ldquoWhere is itrdquo Map containing all Maps and Books by SBU was created Itrsquos a quick and easy reference tool

3 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

Quantitative results are achieved through the promotion of visibility and awareness The Return on Investment may not fit a conventional definition but can be measurable and accomplished by challenging the data targets and accompanying commentaryaction plan narrative to drive performance improvement Are the targets realistic yet aggressive Are action plans being documented and carried out Are the actions discussions and decisions leading to improved performance and processes

Government Programsrsquo membership is measured and monitored in various ways via the BIRT Scorecard and other sources For example Federal membership is measured by product then by plan It is also measured by market then by product then by plan By creatively visualizing performance in multiple ways via a Map those same data results can sometimes become very obvious telling a different story that may not be obvious via standard reporting methods It may clearly illustrate that a specific product in a specific market is continuously under-performing for example Fact-based decisions can then be made as to whether or not to continue with this product in this market or it may initiate discussions as to how to grow and retain profitable membership for this product in this market

Another more recent example is an initiative to track claims-review savings By reviewing claims via various processes what savings can be recouped or realized What specific areas are State and Federal teams focusing on that can contribute to overall savings for the SBU Again where applicable there should be consistency in the metrics across

teams Placeholders are included to promote visibility to keep them in the forefront even though the data or processes may not be in place yet But by capturing results on one page via a Map it bridges potential gaps between the teams promoting awareness and synergy across the SBU

4 Qualitative results What ldquosoftrdquo or intangible benefits has the group department or organization received as a result of this solution

A major benefit of the scorecard framework for the Government Programs SBU has been the identification and alignment of roles responsibilities and accountability

The SBUrsquos Senior VP monthly leadership meeting focuses on four areas

bull Performance Performance is covered via the existing incentive strategic and operational metrics

bull Action plans Documenting action plans in the Performance Management Software Suite versus verbalizing action plans establishes ownership and accountability At subsequent meetings management follows up on key action items or plans to determine whether or not the corrective action did take place and if yes did it have the desired results

bull Strategic direction The strategic direction of the various teams is captured as a springboard to strategic thinking discussions and planning So as not to lose sight of short- and long-term strategic planning this aspect of the business now is housed in the BIRT Scorecard completing the strategic planning of the ldquoHow are we going to get thererdquo and ldquoAre we there yetrdquo cycle This holistic approach helps minimize the chances of our scorecard becoming too focused on operational performance and keeps strategic planning dynamic and visible

The value of these metrics is not in the data but in the commentary The individual teamsrsquo strategic direction ldquometricsrdquo are subjective red = 1 yellow = 2 green = 3 The target = 3 Each metric includes a description of the specific strategic path we need to research or move forward on as well as what goal achievement it supports The ldquodatardquo ndash or color ndash is based on basic questions like What did you hope to achieve this month vs What did you actually achieve this month Were there any successes barriers obstacles In addition to accountability the entire SBU benefits from the sharing of information having meaningful discussion taking appropriate action and collaboration

bull Key initiatives The last critical component is the identification and alignment of key initiatives that

are necessary to support achievement of the various incentives strategic goals and direction and operational goals As with the strategic direction metrics the value is in the narrative with the color reflecting what was accomplished for the specific reporting period

5 Innovation Why should this solution be considered an Innovative Solution What makes it unique groundbreaking and superior What unintended results did you realize

Over time the Government Programs Performance Management framework evolved into an innovative solution The process drives performance and isnrsquot necessarily focused on ldquocolorrdquo Rather itrsquos about having the right people in the same room on a regular basis to drive meaningful discussion and to take appropriate action to improve performance

Outside of the standard processes it was the monthly review process that drove effectiveness revisions enhancements and restructuring of the meeting schedule agenda and format The Government Program financial reporting manager would meet with each director and general manager to review their scorecard for completeness as well as for performance from an operational perspective The State and Federal team directors would then meet with their respective management teams to review and discuss performance results in preparation for the joint Government Programs Leadership Meetings The audience included the Senior VP down to team managers key data analysts (data providers) and support function representatives Through trial and error management learned to maximize their time and effectiveness by concentrating on key metrics and topics rather than trying to review all metrics identify leading indicators versus only outcome results and include strategic thinking and initiatives Today the monthly leadership

meetings are much more productive and look at strategic and operational performance

As involvement and participation increased in the team meetings as well as in the leadership meetings it removed silos opened communications enabled the sharing of information and best practices and promoted teamwork across the SBU But most importantly it brought about an awareness and a sense of unity and commitment within the SBU to achieve their goals something that was lacking before

While it was not part of the initial scope management realized shortly after implementation that efficiencies could be gained by replacing an in-depth hard copy monthly report with BIRT-generated results Since the BIRT Scorecard contained the same data with supporting narrative ndash plus additional metrics with narrative ndash monthly performance was captured via a monthly report Book various Maps and BIRT-generated reports Elimination of the hard-copy report was an unintended way of encouraging a more active use of the Performance Management software by management to monitor performance thereby increasing user familiarity with the contents features functionality and navigation

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

Sustainability is achieved through a continuous process of revisiting the scorecard when there are organizational changes looking at the business direction shifts goal changes process changes etc To ensure that metrics are still relevant a filtering process is held with each director and general manager every six to eight months or as necessary During this exercise questions such as the following are asked

gt Performance Management Excellence Awards gt Performance Management Excellence Awards

[ Figure 132 CEOrsquos Book ]

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Vol 6 Issue 2 2009

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

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3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

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  1. Button 3
Page 19: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

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The experience inspired Dr Graves to create a national registry of volunteers willing to donate marrow His early efforts brought together other patient families and transplant doctors spurring a federal mandate that led to the creation of the National Marrow Donor Program NMDP began connecting patients with unrelated donors in 1987 with a registry of just 10000 volunteers

What the NMDP Does

The Be The Match Registry has grown to more than seven million donors and over 150000 cord blood units the largest and most racially and ethnically diverse registry of its kind in the world Medical advances are making marrow and umbilical cord blood transplants available to more patients all the time Since 1987 NMDP has arranged for more than 35000 transplants to give patients a second chance at life Today NMDP facilitates more than 4300 transplants a year

Planning for the Future

Many more patients still need help In order to meet the needs of all patients NMDP will need to facilitate 10000 transplants per year by 2015 That is more than double the number of transplants the organization facilitates today NMDP is working to meet this need but canrsquot do it alone Efforts are sustained by

bull A global network of more than 490 leading hospitals blood centers cord blood banks and laboratories

bull Agreements with donor centers cooperative donor registries and cord blood banks worldwide through which the program provides patients access to more than 12 million donors and 300000 cord blood units

bull Continued support from the US government which has entrusted the NMDP to operate the CW Bill Young Cell Transplantation Program the federal program supporting bone marrow and cord blood donation and transplantation

bull Partnerships with corporations service organizations student groups faith-based communities and other organizations

A new and different way of thinking about the NMDPrsquos long-term strategy was required in order to make sure that NMDP would be capable of delivering 10000 transplants per year in 2015 ldquoBusiness as usualrdquo would not get the organization where it needed to be NMDP needed to identify and

aggressively improve in strategic areas critical to the delivery of 10000 transplants

II The Balanced Scorecard Approach

Background

The strategic planning system that had been used at NMDP up to 2007 was a fairly well-developed planning process that tracked initiative performance under seven primary areas of strategic focus While this approach provided a measure of strategic planning for the organization it was too focused on activities and projects rather than on impacts

Early in 2007 NMDP leaders Gordon Bryan Chief Financial Officer and Michael Boo Chief Strategy Officer began developing strategic metrics designed to identify measure and communicate progress in strategic plan objective areas

Selection

As the senior management team evaluated options to integrate broader strategic metrics with the existing strategic business plan the Balanced Scorecard approach emerged as a leading candidate during the initial assessment of planning models because it

bullEncourages development of strategic themes and provides the ability to focus on areas where long-term continuous improvement is needed

bullPermits identification of cause-and-effect relationships between Strategic Objectives within each Theme

bull Facilitates communication of Strategic Objectives that can be portrayed on a strategy map that is easily understood by all employees and stakeholders and shows how the perspectives work together to achieve the mission

bull Assures that the organization focuses on Strategic Objectives and Measures from a CustomerStakeholder perspective and a PeopleKnowledgeTechnology perspective (Historically the organizationrsquos focus was skewed toward the Process and Financial perspectives)

bull Enables leadership to track Strategic Objective performance over the long term rather than tracking the status of supporting projects and initiatives

bull Creates a framework for prioritization of projects initiatives and funding opportunities based on contribution to and support of the Strategic Objectives

bull Allows organizational Strategic Objectives to be cascaded into Department Objectives thereby giving each employee

a more specific understanding of how his or her work impacts and contributes to the Strategic Objectives

bull Drives long-term continuous improvement as Strategic Measures improve over time

bull Facilitates a ldquolearning organizationrdquo where corrective actions are implemented in cases where Strategic or Department Objective Measures are not being met

The NMDP planning team looked at a number of planning models ndash including Balanced Scorecard Six Sigma Lean and TQM ndash and concluded that the Balanced Scorecard approach provided the most versatile and relevant framework for future growth and organizational development

III Scorecard Development ndash NMDP Officer Input

Early to mid 2007 NMDP began the Balanced Scorecard development effort with the help of consultants from the Balanced Scorecard Institute

A comprehensive review of the organizationrsquos strengths weaknesses opportunities and threats organizational pains organization enablers vision and mission was conducted over several days with NMDP officers and senior management These sessions produced a new Mission and Vision Statement and four Strategic Themes (rather than the original seven)

The former mission statement Extend and improve life through innovative cellular transplant therapies was changed to We save lives through cellular transplantation ndash science service and support

ldquoThis new mission statement captures and communicates more directly why we exist and it clearly articulates the three ways that we are able to save livesrdquo explained NMDP CEO Dr Jeffrey Chell

The Overarching Strategic Result in place of a vision statement was developed and shared with employees throughout the organization Meeting the need for 10000 transplants per year by 2015 The senior management team developed a longer more descriptive version of this statement but felt that the shorter version had more impact

ldquoWersquove found that the Overarching Strategic Result has been a great tool to get people thinking about how we will manage

to do more than double our current transplant volumes in a relatively short time ndash just five years from nowrdquo explained initiative sponsor Michael Boo ldquoThis has driven a lot of creative thinking around how to dramatically improve the efficiencies and cost effectiveness of many internal systems and delivery processesrdquo

The four Strategic themes that the NMDP officer group developed and agreed upon are

bull Global Access and Acceptance ndash Getting to Yes Overcome non-cell source barriers to transplant (eg no insurance no transportation no post-transplant support)

bull Deliver Excellent Stakeholder Experience Overcome Cell Source Barriers (making sure a cell source donation is available when itrsquos needed ndash adult or cord)

bull Research Pursue research to improve cell transplantation as a therapy

bull Culture of Excellence Keep up-to-date with talent structure and resources needed to continually improve transplant services

IV Scorecard Development ndash Senior Management

Throughout the spring and summer of 2007 four Theme Teams comprised of senior management met to develop

Theme Team strategy maps that included Theme Objectives by Perspective and proposed Measures for each Theme Objective These served as detailed roadmaps with specific objective areas identified ndash where NMDP needed to focus in order to improve them

The four Theme Team maps were subsequently

combined into an NMDP Strategy Map that included all relevant components from each theme This NMDP Strategy Map is comprised of 13 Strategic Objectives 46 Strategic Measures and seven Strategic Initiatives

Narratives were captured regarding the intent and ultimate end state for each Strategic Objective and detailed descriptions were created for measurement information including rational frequency owner and unit of measure

At this stage in the process the team named the Balanced Scorecard tool ldquoVision into Actionrdquo or ViA ndash NMDPrsquos strategic Performance Management tool On June 1 2007 the ViA Themes and NMDP Strategy Map details were presented to the board of directors by senior management and approved along with a plan to proceed to the next phase of department cascading

A ViA Communications Team was formed to communicate ViA progress to employees on the development of the new Mission Statement Vision Statement and the 13 Strategic Objectives This was done through a combination of pulse checks newsletters

38

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39

Vol 6 Issue 2 2009

intranet messaging e-mails from the CEO leadership training all-staff meetings and promotional contests This was an extremely integral step in the ViA roll-out that provided transparency and generated excitement around the benefits of ViA

V ViA Department Cascading

All departments at the NMDP were scheduled for sessions to develop their department Objectives Measures and Initiatives These were facilitated by internal subject matter experts and included an initial two-day exercise to help the department identify where and how each department contributed to the NMDP Strategic Objectives Worksheets and other preparation material were provided to each participant and collected prior to the cascade session The pre-work information was used to expedite the affinity exercises at each session

These were followed up with sessions to finalize detailed measures with individual measure owners Department teams were comprised of five to 10 key members of each department

The department cascading efforts provided a number of primary benefits to the organization including

bull The articulation in easy-to-understand terms of how each department contributes to the overall success of the Strategic Objectives and ultimately the NMDP Mission

bull A tool to identify gaps or overlaps between departments that can also be a tool for departments to communicate with each other in terms of supporting initiatives

bull A tool for each department to prioritize initiatives and activities Also it provided a mechanism to support requests for funding new opportunities

bull A clear framework for corrective action where measures are not being successfully met

bull A common format and mechanism for reporting department performance to officers and senior management

bull A common format and mechanism for reporting and reviewing department performance with staff

bull Help with the development of individual job performance appraisal content ndash which should be designed to support Department Objectives

Department Cascading was complete in early 2009 There are over 200 separate department measures that are tracked each quarter

VI NMDP ViA Today

NMDP has established a department Champions Council Members of the Council are becoming experts at using the automated ViA software Today this is being used at department staff meetings to facilitate discussion around corrective action for underperforming or unacceptable Department Measures Departments use the department Strategy Maps to guide staff meeting discussions on performance measures and corrective action plans

ldquoAll business cases or requests for funding must be submitted with clear tangible descriptions of how the effort will impact ViA Strategic Objectivesrdquo explained Boo ldquoOnce all business cases have been submitted to the officer group for final approval they are prioritized in order of their impact on ViA Strategic Objectivesrdquo

All strategic and department measures are required to be reported into the ViA system each quarter Each is color coded based on an officer-approved target matrix Each measure owner is required to provide comments regarding the measure performance for the quarter and discuss how he or she expects the measure to end the fiscal year This information is shared with senior management for review and follow-up with measure owners ifwhen necessary

Senior management uses the color-coded NMDP Strategic Map as a basis for discussing quarterly performance and identifying

Strategic Objective areas that may need attention corrective action andor more resources NMDP tries to focus not only on corrective action items but also highlight success stories where outstanding performance has been reported

All employees will soon have access to the web-based ViA application to provide as much transparency and visibility as possible in order to become a truly strategy-focused organization

ldquoVision into Action has been successful within the organization to a great extent because of the consistent support and guidance provided by NMDP leadership including our CEO Dr Jeffrey Chell my fellow Officers and the Board of Directorsrdquo said Boo

Howard Rohm President and CEO of the Balanced Scorecard Institute is a Performance Management trainer consultant and technologist with over 40 years experience Mr Rohm has helped dozens of organizations worldwide build Balanced Scorecard and other performance planning and management systems

48

Pe

rform

Mag

azine

Info

rmatio

n in

Actio

n

A community for BIRT users and developers sponsored by Actuate

A Report Writing Portal lets your end users browse reports modify them and even develop

new ones You can set one up in three steps when you use AJAX-based BIRT technology

Because the end user tools to modify and create reports are AJAX-based therersquos no desktop

software to install Users get the reports they need quicker while the burden on development

resources to create new reports is reduced

BIRT Exchange is a community site that offers the broadest collection of resources for the Eclipse BIRT (Business Intelligence

and Reporting Tools) project and for integrating spreadsheets with Java The site is sponsored by Actuate a co-leader of the BIRT project

Sponsored by

See a Demo

at Booth

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wwwbirt-exchangecom wwwactuatecom

40

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41

Vol 6 Issue 2 2009

JCIrsquos previous approach of one-off negotiating as well as its spirit of continuous improvement and customer focus meant that it had only one-off measures in every location The company for example had 127 variations of the measure lsquomaintenance managementrsquo Many were very similar but since they were not exactly the same they could not be compared effectively Inefficiency at gathering and maintaining data at different locations across the globe made the task difficult as well Data was collected any way possible thrown into a cell or a Power Point slide and handed in at the end of the month It was highly inefficient extremely customized at every location and did not allow any ability to benchmark compare or look at best practices These concerns and requirements drove JCI on its scorecarding journey

The Solution

In initiating its scorecarding solution JCI first had to establish the right measures Business leaders were chosen for all of the scorecard categories and for each of them a business owner was selected for each region these business leaders and owners were responsible for defining the standards and measures Data collection systems in some cases proved difficult there wasnrsquot always centralized information available ndash in some cases data needed to be gathered right down at the account level This meant that the process of data collection and identifying measures was a significant job To get started though JCIrsquos web programmers were able to put up some scorecards quickly to allow the company to start architecting measures this allowed business leaders across the globe to start identifying their measures and to put the processes in place regionally to collect information

Before committing to a technology JCI wanted to know 100 percent of their business requirements and this was the point of their web-based scorecard To assist in this endeavor Actuate ndash prior to selection ndash let the company test drive their product The JCI team went through and looked at every single screen determining where they had to configure the tool and for every single screen they also made what they called a lsquoblueprintrsquo creating an Excel template with fields to correspond with every field on each screen It was incredibly detailed work but they wanted to ensure no mistakes were made and that the business requirements were defined To accomplish this there was an extreme amount of detailed coordination globally with twice-weekly meetings for the worldwide team in charge of the initiative A byproduct of the process was that the team learned to use the Actuate BIRT Performance Scorecard and basically built all of the blueprints for the project design

JCIrsquos audience for the project upon kick off were the 300 external customers that would have access to this information Customers previous to this were getting their information via Excel and PowerPoint In addition to these external customers was the population of approximately 1000 internal users within JCI itself These included account leaders and functional leaders including those from HR Finance Safety etc

Three primary functions of the project were

1 To replace the PowerPoint slides used in global and regional monthly internal operational reviews

2 To very quickly be able to become best in class JCI wanted everyone who had an account to be able to see where they sat compared to their peers This provided individuals ndash when faced with a problem ndash the ability to quickly identify and contact others who had solved the same issue

3 To standardize customer faith in contractually required performance measures This was a key goal of the company which felt that if they were going to benchmark and compare they needed to bring in the best practices learned at one location to their work at other locations

These three primary functions were heavily loaded in JCIrsquos rating system as the company set out to choose the right software for their scorecarding project It was also important that the software be intuitive as there was no time for hundreds of hours of global-wide training The software had to be rapid and easily configurable with limited IT assistance As JCI is a very large organization with a lot of systems in place the team in charge also wanted the software to be easily adjustable to the companyrsquos rapidly changing business they didnrsquot want to have to get into queue for IT every time a change had to be introduced or a new customer added

JCI Chooses ActuateFour vendors were evaluated for JCIrsquos scorecarding project with a global team in place to provide a systematic discussion of the defined business process and requirements The product chosen was the BIRT Performance Scorecard JCI had 30 days of Actuate Professional Services and planned for monthly micro improvements and quarterly macro improvements

Upon purchasing the BIRT Scorecard in January 2007 using the blueprints theyrsquod established already the company wrote their business processes They were able to go live in 90 days helped by the homework they did with the blueprints the web scorecard and the data collection processes It was an incredibly smooth implementation overall

The Results

Whereas JCI originally started out with a model of one-off negotiations with customer measures the scorecarding project has led to approximately 70 percent agreement on JCI standard metrics The company does a customer satisfaction survey both annually and quarterly and aims to demonstrate evidence towards continual improvement

Since implementation of the project the company has also been solving its data integrity issues Previously two regions might have been using the same words but not the same data collection methods ndash this made it impossible to introduce benchmarking and comparison between areas Now those problems are being solved and benchmarking and comparison are possible to the benefit of both JCI as it strives for best-in-class status and its customers

By David F GiannettoCEOThe Telos Group

Johnson Controls Incorporated (JCI) is a $38 billion company with a total of 140000 employees working out of more than 1300 locations in 125 countries worldwide Headquartered in Milwaukee Wisconsin the company provides a range of services including

real-estate portfolio management property management facility management and design and construction services

To initiate its scorecarding project JCI began by creating five categories of measurement Business Performance (this includes all financial measures) Service Delivery Customer Satisfaction Safety and People While the other four categories may be typical to most organizations the Service Delivery category was designed to take JCIrsquos measurements down to the client-site level which includes over 300 locations globally where the company has contracts In some cases there might be one staff member assigned to manage a single building while other times a staff member has a whole portfolio they maintain Measuring performance at all of these locations and levels proved a complex undertaking

Strategic Initiatives

Like all service providers JCI has to demonstrate that they add value Scorecarding allows them to do this both internally

and externally using data-driven results Since JCI has always been very much a data-driven organization anyway with a manufacturing background this was a natural fit for the corporation

JCIrsquos organization-wide motto is to be as good everywhere as they are somewhere Theyrsquove found that in any one account they may excel in several areas but perhaps not in all areas elsewhere though on another account someone else might have the skills needed to fill in those gaps The companyrsquos goal was to share information and communicate it between different locations across the globe allowing the company as a whole to get better faster and to benefit from the skills and strengths of its individual members Scorecarding was introduced as a way to help share this information and to introduce benchmarking within the company

The Requirements

To get started on their scorecarding initiative JCI examined each of their US contracts What they found was that there were no standards between clients and therefore no ability to benchmark Customers though wanted the ability to find out how they stood in relation to other customers This was impossible under the circumstances

Global Operational Excellence and a Performance Scorecard System A Case Study of

Johnson Controls Incorporated

42

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Vol 6 Issue 2 2009

Out of Touch With Crucial Data

Previously when Helzbergrsquos divisional and regional vice presidents went on the road access to their key performance metrics was restricted Without a laptop and a WiFi or hotel network connection to the internet they were ldquoflying blindrdquo according to Greg Backhus Helzbergrsquos Director of Data Warehouse and Decision Support Systems As a result they did a lot of faxing it was the only way they could get the current data that they needed in order to

About Webalo

Webalo technology transforms enterprise applications and data to make them compatible with mobile

devices This eliminates the need for traditional custom programming reducing the deployment of mobile applications from weeks or months to in most cases less than a day The resulting ldquoanywhere anytime on-demandrdquo availability of enterprise data on handheld devices turns such devices into viable alternatives to desktop laptop and palmtop computer hardware and lets mobile employees work more productively ndash on the spot ndash to solve problems answer questions monitor operations close sales and make informed decisions

The Webalo Mobile Dashboard Service ndash available in both internet-based and enterprise intranet-based implementations ndash lets non-IT business administrators securely specify the content of mobile-accessible information and the companion Webalo Proxy Server configures it in seconds to conform to the native user interface of any BlackBerry Windows Mobile Pocket PC Palm Symbian or Java-enabled smartphone

CLARITY CUT AND CARATSHow Helzberg Diamonds Made Sales Data Clearer Eliminated

Delays and Lightened the Load for its Divisional Executives

A diamond may be forever but a lot has changed in how theyrsquove been marketed and sold during Helzberg Diamondsrsquo nine decades in business A single store has expanded to nearly 300 locations from coast to coast and border to border Sales can also be made online now And information about every sale can be accessed in an instance through the companyrsquos enterprise systems

bull Compare actual sales to their goals and plans

bull Determine transaction counts for total dollar volume and average sales value

bull Break down sales by product category

bull Monitor attachment rates for products and services related to the main product sale

For example onsite at individual stores it was difficult to gauge how an active price-reduction sale was affecting unit and dollar

volumes unless there happened to be a coffee shop next door with a WiFi connection that would let Helzbergrsquos executives access the enterprise system

The Three Cs of Information Access

The three Cs of diamond grading ndash clarity cut and carats (or weight) ndash turned out to be applicable to data access as well But it took a transition to handheld devices and to the Webalo Mobile Dashboard to achieve it

Though laptop computers had gotten lighter and lighter over the years they were still considerably heavier than the Pocket PC-based smartphones that Helzbergrsquos executives used Since they were carrying those handhelds in addition to their laptops the VPs were open to the idea of being able to

bull Access sales metrics on their handhelds

bull Have data available on-demand from any location with a wireless signal

bull Navigate quickly to the figures they needed

bull Get updates to their metrics automatically

bull Review the information offline

It was the only time that carrying less weight ndash or carats ndash added more value Using a simple step-by-step wizard Helzbergrsquos support staff was able to configure their enterprise reports in a matter of hours They then assigned access privileges to each executive to control who could see what information and uploaded the file to the Webalo server That satisfied how data was ldquocutrdquo

For each mobile user regardless of the brand and model of smartphone they used the Webalo Mobile Dashboard conformed the information to the devicesrsquo user interface The application worked and looked exactly like any other application developed specifically for their mobile devices the on-screen text was easy to read and navigation used the same menu structure That meant there was no learning curve to delay user acceptance and productivity Clarity was essential and the Mobile Dashboard delivered it right down to the ability to bookmark commonly-referred-to displays for instant reference enhancing on-the-spot productivity even more

Speed and Simplicity

Productivity was also improved on the IT side Without the need for custom programming to conform the information to each smartphone brand and model deployment was reduced from months to hours

Since adopting the Webalo Mobile Dashboard Backhus says ldquoThe Divisional VPs find it invaluable They get more done because they donrsquot have the delays they used to haverdquo Decisions that used to have to wait for current data are now made right away relying on the right data presented in the right format

44

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Vol 6 Issue 2 2009

Sustainable practice has graduated from being market hype

to becoming a strategic initiative important for driving a successful enterprise It not only reduces a companyrsquos impact on the environment but can help organizations achieve a competitive advantage to build their brand impact top and bottom line and improve customer acquisition satisfaction and retention

Creating a road map towards sustainable management can require an entire shift in corporate thinking one that involves searching for buy-in at all levels establishing useful metrics and introducing practices that get beyond the green hype The end result though is not just a greener organization but also one with a more prosperous future

Why Sustainability

In August 2008 a survey undertaken by CIO Insight examined green practices in business focusing on the reasons why CIOs introduce sustainability efforts into their organizations The number one reason why organizations went green the study found was that the people within those companies sincerely had a concern for the environment A total of 74 percent of respondents answered that way 32 percent of which listed it as their most influential driver

Other influential drivers named in the survey included

Financial Drivers Companies found sustainability to be a way of cutting costs If they could cut energy costs not only would that help the environment but it would also help create cost savings The second most popular answer in the CIO Insight study financial impacts are key to implementing sustainability in most organizations Examples of financial impacts possible from sustainability were presented at CFO

2 The CFO Green

Conference which took place in May 2008

bull Dupont reduced its CO2 emissions by 70 percent saving the company $3 billion

bull FedEx redesigned its delivery trucks making them more aerodynamic This reduced the amount of particulate pollutants nitrogen and carbon the trucks put into the atmosphere and it also reduced the companyrsquos fuel costs exceptionally

Customer Image In the CIO Insight survey the third motive listed by CIOs for introducing sustainability ndash at 64 percent ndash was company image Consumers are becoming more and more aware of whether companies or organizations are living up to sustainability ideals They will notice if a company image or brand value reflects this concern for the environment Meaningful sustainability efforts can help gain customer approval as in the following case

bull Wal-Mart and Procter amp Gamble together agreed to sell liquid laundry detergent only in concentrated form This saved shelf space for Wal-Mart reduced water use by 400 million gallons for Procter amp Gamble and eliminated 45 million pounds of plastic waste

Regulatory Requirements The surveyrsquos fourth most popular reply ndash at only 25 percent ndash were current or potential regulations including the cap and trade systems being implemented which will require companies to buy carbon and sell carbon credits

Shareholder Pressure Finally at fifth in the CIO Insight survey ndash with 14 percent of responses ndash was shareholder or public pressure pressure building from shareholders to put forth sustainability efforts Pressure at this level is often mixed though as shareholders are also likely to express a desire that they donrsquot want shares to decline in value The general message may be that it is fine to introduce sustainability measures only as long as there is no risk that they will hurt the company

A Road Map Towards Sustainability

Step 1 Identify What Drives Your Organization

The first step in the road map towards sustainability is identifying key drivers Some drivers vary from one organization to another while others seem to drive any organization regardless of the industry Drivers incude

Internal drivers

bull Cost cuttings and savings

bull Employees including both the satisfaction of current employees as well as the recruitment and retention of future employees

bull Investment

External Drivers

bull Stakeholders including both those within the company ndash the employees discussed above ndash as well as stakeholders outside of the company

bull Brand awareness because consumers are becoming increasingly aware of the choices that are available to them and are making choices based on a companyrsquos green initiatives

Future drivers

bull Tax incentives

bull The recruitment and retention of future customers

Step 2 Select Your Metrics

In general terms sustainability metrics will fall into one of four major categories those that affect the climate those that affect the oceans those that affect human health and those that affect common issues like the land the water the wildlife etc

Within those large categories are smaller areas of interest that companies must examine to introduce organization-wide sustainability management carbon monoxide use energy consumption water consumption and fuel consumption are prime examples

Carbon Monoxide Use Many of the questions companies are asking themselves in regards to carbon monoxide use include

A Road Map of Key

Sustainability Metrics

That Impact Bottom

Line

46

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47

Vol 6 Issue 2 2009

bull How much carbon monoxide do we produce

bull Which processes in our overall manufacturing or delivery use produce the most emissions

bull Can we determine the indirect emissions For example leave a computer plugged in and itrsquos still on the grid creating an indirect carbon dioxide emitter How can we measure that

bull Whatrsquos our cost Do we have metrics that tell us what our CO2 emissions cost us

bull Can we predict into the future If we continue on this path without doing anything where will we be next month Next quarter Next year

Some examples of metrics related to carbon monoxide use include carbon dioxide emissions per employee (similar to revenue per employee) carbon footprint metrics and transportation distances

Energy Consumption Areas of interest related to corporate energy consumption may include the following

bull How much do we consume From what sources

bull Are we on the grid Are we using solar power or wind power or another alternative power

bull How much is used by our data center How do we make the data center greener

bull Where can we reduce consumption

Companies today are reducing energy consumption in a variety of ways by introducing energy audits and looking at energy-saving appliances and also through energy incentive programs for employees within which companies can incentivize and introduce bonus plans

Water Consumption An examination of a companyrsquos water consumption may include some of the following queries

bull How much water do we currently use and where

bull Where in our processes do we use the most water

bull Can we predict how much wersquore going to use in the future

Some of the examples of metrics that companies introduce in terms of water consumption include improved water quality how much impact low-flow or low-volume toilets have on water consumption and how much water is or can be recycled

Fuel Consumption Questions to consider in relation to fuel consumption include

bull How much fuel do we use

bull Where are the inefficiencies

bull Whatrsquos being predicted for fuel usage in the future

bull Can we analyze our logistics so that we can determine how to reduce our fuel consumption For example where are our trucks traveling How are they traveling What kinds of loads are they carrying

Step 3 Recognize Challenges

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly As such easier ways to enhance communication and to increase visibility need to be introduced both inside and outside of an organization

There are also constantly evolving requirements measures and standards of success With everything so new companies are challenged to find ways to compare their sustainability efforts with other organizations The biggest challenge in implementing these processes or attracting metrics may be that they require an entire shift in thinking Additional challenges that exist in the implementation of a sustainability model include

1 Financial concerns Companies must truly see potential for returns on investment or these initiatives can become non-starters or stall

2 Lack of regulatory motivation While not as common as it once was certain organizations arenrsquot motivated to introduce sustainability until government regulations are in place

3 Lack of a formal strategy for sustainability Without a formal strategy it is difficult for companies to determine where they need to go

4 Determining appropriate metrics Companies must choose metrics that are useful demonstrate impact and say something about their own corporate environment

5 Calculating metrics Standard algorithms and calculations exist to calculate metrics but companies must find the appropriate ones and use them

6 Finding quality data to plug into those calculations As in any Business Intelligence project if the quality of the data is questionable then so are the sustainability metrics themselves

7 Determining the scope of the sustainability project The scope is critical Narrow it down to something achievable feasible and useful

Step 4 Learn from Best Practices

What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde

bull Assign an executive champion Without an executive champion to drive the project initiatives are more likely to lack a holistic view and a clear vision for an implementation strategy they may take longer to implement and theyrsquore less likely to yield the required results To provide motivation consider linking the championrsquos salary directly to sustainability savings or to the increased revenues that result from sustainability efforts

bull Implement internal training and education Educate employees on what to expect and what is expected from them

bull Improve communication Communicate both to employees and to stakeholders outside of the organization

bull Start to think about alternative energy management and control strategies

bull Engage the use of technology and services For companies not sure where to begin a sustainability consultant can assist with program selection as can vendors such as Actuate which has a sustainability management solution in place

Step 5 Get Started

Understand that sustainability development is a business opportunity Donrsquot look at it solely as environmental although that is also important Itrsquos an opportunity for companies to introduce more cost-effective processes and procedures and to become more cost effective in their vehicle fleet manufacturing delivery etc

bull Create globally consistent metrics and goals Large agencies have to make sure that the entire group is on board and that they have consistent metrics and consistent goals across the enterprise

bull Find the value and drive the action What is the value of monitoring these sustainability areas and whatrsquos the course of action if you see that theyrsquore going off kilter or are not tracking as expected

bull Start small Initiatives such as these can become incredibly complex very quickly Start small and build in the complexity with each ensuing project

bull Get buy in People need to understand what the metrics are why theyrsquore there and what they mean to each individualrsquos situation (as reflected in individual bonus plans perhaps) Measure using industry-accepted methodologies and industry-accepted protocols continually improve metrics through optimization and forecasting and constantly optimize metrics and forecast into the future

bull As much as possible accurately report to everybody environmental performance Let employees shareholders customers and regulators know If data is questionable fix it get quality processes in place and then run the metrics

bull Determine environmental impact Has waste been reduced Has resource utilization been reduced Has the company improved environmental factors

Also consider using an Open Source vendor The Open Source community is beginning to develop sustainability metrics and Open Source reduces the costs of developing metrics while software costs for the project are reduced as well

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly ldquo

rdquo What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde ldquo

rdquo

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Vol 6 Issue 2 2009

Step 6 Move from Green Hype to Sustainable Action

A successful sustainability initiative involves identifying metrics that will translate into cost savings and benefits while avoiding metrics that are not likely to yield required results To accomplish this start small start with a small department within the organization and then repeat this continuing to repeat it throughout the enterprise

bull Start with basic conservation Change behavior reduce consumption and in the process increase investment

bull Start reusing Improve productivity improve efficiency and create less waste

bull When this translates into cost savings re-invest Grow make larger improvements and increase involvement

Projects that make good starting points

bull Measure carbon dioxide emissions throughout a value chain or product lifespan Look for potential improvements

bull Ensure regulatory compliance By knowing what the regulations are companies can determine what metrics need to be in place

bull Identify ways to promote and profit from more environmentally-respectful goods and services Companies can promote environmentally-respectful goods and services while also using sustainability to help the company

Monitor the effects of each project to determine which strategies have the most impact both physically in terms of

the environment and financially in terms of revenues and cost savings Publicize how metrics are tracking over time

Actuate for Sustainability Management

Actuate for Sustainability Management is a solution by Actuate that integrates highly interactive visually rich dashboards There are pre-built sustainability scorecards strategy maps and over 100 pre-built metrics across the economic social and environmental aspects of sustainability

The Actuate BIRT Performance Scorecard supports the metrics defined including

bull Reducing an organizationrsquos environmental footprint

bull Building green facilities and buildings

bull Compliance and reporting

bull Manufacturing

bull Community and engagement

bull Human development including employee well-being and satisfaction

Actuate for Sustainability Management provides collaboration across regulators consumers and non-governmental organizations Dashboards and scorecards come integrated with reporting so as to improve reporting to stakeholders both outside and inside of an organization All of the products are built on Actuatersquos dependable cost-effective and scaleable platform

Performance Management solutions help organizations understand act on and influence business decisions processes and measures of business success The 2009 Actuate Performance Management Excellence Awards will honor customer success stories in four key areas Over the next several issues Perform Magazine will highlight some of the entries in these categories

Category 1 Go Green

Each year the concept of environmental responsibility has implications for both the private and public sector specifically with regards to how each measures the performance of their operations For organizations using the Actuate BIRT Performance Scorecard to measure the progress of organizational Green initiatives how have they responded to the challenge and how do they use the BIRT Performance Scorecard to ensure they stay on track

Category 2 The Perfect Slice

Successful Performance Management comes in all sizes Some initiatives are enterprise-wide while others are focused around specific business units or functions yet still encompass a holistic approach to Performance Management by looking beyond financial indicators to a more balanced set of indicators This category includes organizations deploying the Actuate BIRT Performance Scorecard with a focus on improving the performance of individual business units or functions and includes the measurement of people and processes

Category 3 Big Bang

Carefully executed Performance Management initiatives begin with a measured approach to the initial implementation and quickly expand to other parts of the organization aligning business units to strategy at each step This category is open to Actuate customers who initially implemented the Actuate BIRT Performance Scorecard to a limited user community and through careful change management and planning expanded the use of the BIRT Performance Scorecard throughout the organization

Category 4 Super Size

Award-winning enterprises achieve breakthrough results in the financial customer operational and people perspectives of their business and leverage internal champions across the organization to ensure ongoing and sustainable success The key to achieving these results lies in total visibility of all business units aligned to strategy This category is open to any Actuate customer with a fully deployed enterprise-wide Actuate BIRT Performance Scorecard implementation

Actuate Performance Management Excellence Awards2009

50

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Vol 6 Issue 2 2009

HealthNow New York Inc headquartered in Buffalo is one of New York Statersquos leading healthcare companies doing business as BlueCross BlueShield of Western New York BlueShield of Northeastern New York HealthNow in the Central New York region and Brokerage Concepts Inc in Pennsylvania

Improving the health of people and communities are HealthNowrsquos corporate priorities and for more than 70 years the company has been a proactive partner in health working to improve the quality of care and the quality of life for everyone it serves In 2008 HealthNow provided access to care to more than 820000 members and in 2008 company revenues grew to $227 billion

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution and describe what you were trying to achieve as a group function or department

A few years ago HealthNow New York Inc determined that the key to its continued success would be its ability to differentiate itself from other healthcare plans in ways that could not be readily duplicated or copied by their competitors In an increasingly crowded marketplace to get the attention of new customers and retain existing ones HealthNow needed to set itself apart from others

This lasting competitive advantage needed to come from an organizational culture that was dedicated to a relentless focus on meeting customersrsquo needs It needed to be highly responsive supportive flexible and nimble particularly as the healthcare marketplace continues to change with more responsibility placed upon its customers

To that end a new business model was implemented to provide the framework for customer focus Under the new structure the company was divided into four strategic business units (SBUs) each responsible for financial contribution customer satisfaction medical utilization and market share of a specific book of business

Each SBU includes its own set of functions including sales account and broker management product configuration customer intelligence pricing enrollment and billing customer service medical management and HR support Each business unit is led by an executive who is fully accountable for the unit operations and for bottom-line performance of the entire business unit Each SBU is supported by various corporate support functions (Actuarial IT Legal etc)

Implementation of the new business model began with a reorganization of the senior management structure The senior management of each SBU has specific incentive goals as well as strategic goals aligned with the corporate incentive Those strategic goals then drill down to ldquoteamrdquo incentives and to a blend of strategic and operational goals

This was a completely new way of looking at our business It was a blank slate requiring new processes and new methodology as well as an examination of existing metrics and processes to determine what added value and where the strengths weaknesses opportunities and gaps were

Under this new structure the Government Programs State and Federal products SBU ndash which historically had some inefficient end-to-end processes lacked internal controls and had minimal oversight of financial performance ndash was able to set a foundation and develop a growth strategy In order to achieve this mission and to align track monitor improve and communicate performance the Senior Vice President of the Government Programs SBU elected to utilize a Performance Management framework via the Actuate BIRT Performance Scorecard

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

As a point of reference the Government Programs SBU is comprised of a State Government Programs team a Federal Government Programs team an Operations team and a Sales team The Performance Management design team was comprised of the Actuate system administratorfacilitator the Government Program financial reporting manager and two SBU data analysts Input from the various teamsrsquo management staff was gathered as the design got more granular

Discussions around the design of the Government Programs scorecard began with two basic questions

1 What are the handful (ideally six to eight) of key performance indicators that are necessary to run and manage your business and to indicate that yoursquore on the right path to achieving your goals

Defining the key performance indicators was a challenge that required the Actuate system administrator in a facilitative role to get intimately involved in order to keep the discussions focused and high level and to limit scope creep The incentive goals were clearly defined at the corporate and SBU level however the tough question was how should they drill down in the BIRT Performance Scorecard The facilitator posed the following questions to the other members of the design team

bull How do you usually look at your business

bull How are the primary source documents that capture this information structured

bull What other ways do you look at your business

Taking the answers to these questions a step further the facilitator asked the next question Is the drill-down structure the same for the core strategic or team metrics The answer was yes By taking this approach we were provided with consistency in how the teams look at their business and the performance of their core indicators

Once the incentive and strategic goals were identified more leading and lagging operational measures were defined such as

bull Call centers

bull Accuracy

bull Quality

bull Sales Performance

2 Who is your audience

Through the entire measure selection and definition process the design team was constantly reminded to keep a second question ndash who is your audience ndash in mind This helped keep the focus on the critical few and keep the number of metrics down to a manageable amount Links to supporting documentation were created to provide easy access to the granular data without burdening the scorecardrsquos objective

The audience in this case was the SBUrsquos Senior Vice President followed by the State Director Federal Director Operations Director and Sales General Manager It then cascades down to each directorrsquos management team and the data providers

In order to provide a complete and consistent picture of State and Federal performance for senior management where

gt Performance Management Excellence Awards

HealthNow New YorkCategory 2 Entry The Perfect Slice

gt Performance Management Excellence Awards

[ Figure 131 Homepage Map ]

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Vol 6 Issue 2 2009

possible the same or comparable measures were created for each team For example when looking at the various call center metrics ndash even if the definitions and targets slightly differed ndash if one team was consistently exceeding or meeting their target it sparked group discussion around best practices processes staffing and target definition

Utilization of Maps continues to play a major role in communicating performance Again focusing on our audience there is a Map at the Senior VP level which then links to a high-level Map for the State director and staff and for the Federal director and staff The one-page snapshot allows management to easily view performance then to drill down to specifics via additional detailed Maps or Books Because the audience embraces the Maps concept a ldquoWhere is itrdquo Map containing all Maps and Books by SBU was created Itrsquos a quick and easy reference tool

3 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

Quantitative results are achieved through the promotion of visibility and awareness The Return on Investment may not fit a conventional definition but can be measurable and accomplished by challenging the data targets and accompanying commentaryaction plan narrative to drive performance improvement Are the targets realistic yet aggressive Are action plans being documented and carried out Are the actions discussions and decisions leading to improved performance and processes

Government Programsrsquo membership is measured and monitored in various ways via the BIRT Scorecard and other sources For example Federal membership is measured by product then by plan It is also measured by market then by product then by plan By creatively visualizing performance in multiple ways via a Map those same data results can sometimes become very obvious telling a different story that may not be obvious via standard reporting methods It may clearly illustrate that a specific product in a specific market is continuously under-performing for example Fact-based decisions can then be made as to whether or not to continue with this product in this market or it may initiate discussions as to how to grow and retain profitable membership for this product in this market

Another more recent example is an initiative to track claims-review savings By reviewing claims via various processes what savings can be recouped or realized What specific areas are State and Federal teams focusing on that can contribute to overall savings for the SBU Again where applicable there should be consistency in the metrics across

teams Placeholders are included to promote visibility to keep them in the forefront even though the data or processes may not be in place yet But by capturing results on one page via a Map it bridges potential gaps between the teams promoting awareness and synergy across the SBU

4 Qualitative results What ldquosoftrdquo or intangible benefits has the group department or organization received as a result of this solution

A major benefit of the scorecard framework for the Government Programs SBU has been the identification and alignment of roles responsibilities and accountability

The SBUrsquos Senior VP monthly leadership meeting focuses on four areas

bull Performance Performance is covered via the existing incentive strategic and operational metrics

bull Action plans Documenting action plans in the Performance Management Software Suite versus verbalizing action plans establishes ownership and accountability At subsequent meetings management follows up on key action items or plans to determine whether or not the corrective action did take place and if yes did it have the desired results

bull Strategic direction The strategic direction of the various teams is captured as a springboard to strategic thinking discussions and planning So as not to lose sight of short- and long-term strategic planning this aspect of the business now is housed in the BIRT Scorecard completing the strategic planning of the ldquoHow are we going to get thererdquo and ldquoAre we there yetrdquo cycle This holistic approach helps minimize the chances of our scorecard becoming too focused on operational performance and keeps strategic planning dynamic and visible

The value of these metrics is not in the data but in the commentary The individual teamsrsquo strategic direction ldquometricsrdquo are subjective red = 1 yellow = 2 green = 3 The target = 3 Each metric includes a description of the specific strategic path we need to research or move forward on as well as what goal achievement it supports The ldquodatardquo ndash or color ndash is based on basic questions like What did you hope to achieve this month vs What did you actually achieve this month Were there any successes barriers obstacles In addition to accountability the entire SBU benefits from the sharing of information having meaningful discussion taking appropriate action and collaboration

bull Key initiatives The last critical component is the identification and alignment of key initiatives that

are necessary to support achievement of the various incentives strategic goals and direction and operational goals As with the strategic direction metrics the value is in the narrative with the color reflecting what was accomplished for the specific reporting period

5 Innovation Why should this solution be considered an Innovative Solution What makes it unique groundbreaking and superior What unintended results did you realize

Over time the Government Programs Performance Management framework evolved into an innovative solution The process drives performance and isnrsquot necessarily focused on ldquocolorrdquo Rather itrsquos about having the right people in the same room on a regular basis to drive meaningful discussion and to take appropriate action to improve performance

Outside of the standard processes it was the monthly review process that drove effectiveness revisions enhancements and restructuring of the meeting schedule agenda and format The Government Program financial reporting manager would meet with each director and general manager to review their scorecard for completeness as well as for performance from an operational perspective The State and Federal team directors would then meet with their respective management teams to review and discuss performance results in preparation for the joint Government Programs Leadership Meetings The audience included the Senior VP down to team managers key data analysts (data providers) and support function representatives Through trial and error management learned to maximize their time and effectiveness by concentrating on key metrics and topics rather than trying to review all metrics identify leading indicators versus only outcome results and include strategic thinking and initiatives Today the monthly leadership

meetings are much more productive and look at strategic and operational performance

As involvement and participation increased in the team meetings as well as in the leadership meetings it removed silos opened communications enabled the sharing of information and best practices and promoted teamwork across the SBU But most importantly it brought about an awareness and a sense of unity and commitment within the SBU to achieve their goals something that was lacking before

While it was not part of the initial scope management realized shortly after implementation that efficiencies could be gained by replacing an in-depth hard copy monthly report with BIRT-generated results Since the BIRT Scorecard contained the same data with supporting narrative ndash plus additional metrics with narrative ndash monthly performance was captured via a monthly report Book various Maps and BIRT-generated reports Elimination of the hard-copy report was an unintended way of encouraging a more active use of the Performance Management software by management to monitor performance thereby increasing user familiarity with the contents features functionality and navigation

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

Sustainability is achieved through a continuous process of revisiting the scorecard when there are organizational changes looking at the business direction shifts goal changes process changes etc To ensure that metrics are still relevant a filtering process is held with each director and general manager every six to eight months or as necessary During this exercise questions such as the following are asked

gt Performance Management Excellence Awards gt Performance Management Excellence Awards

[ Figure 132 CEOrsquos Book ]

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Vol 6 Issue 2 2009

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

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Vol 6 Issue 2 2009

3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

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  1. Button 3
Page 20: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

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Vol 6 Issue 2 2009

intranet messaging e-mails from the CEO leadership training all-staff meetings and promotional contests This was an extremely integral step in the ViA roll-out that provided transparency and generated excitement around the benefits of ViA

V ViA Department Cascading

All departments at the NMDP were scheduled for sessions to develop their department Objectives Measures and Initiatives These were facilitated by internal subject matter experts and included an initial two-day exercise to help the department identify where and how each department contributed to the NMDP Strategic Objectives Worksheets and other preparation material were provided to each participant and collected prior to the cascade session The pre-work information was used to expedite the affinity exercises at each session

These were followed up with sessions to finalize detailed measures with individual measure owners Department teams were comprised of five to 10 key members of each department

The department cascading efforts provided a number of primary benefits to the organization including

bull The articulation in easy-to-understand terms of how each department contributes to the overall success of the Strategic Objectives and ultimately the NMDP Mission

bull A tool to identify gaps or overlaps between departments that can also be a tool for departments to communicate with each other in terms of supporting initiatives

bull A tool for each department to prioritize initiatives and activities Also it provided a mechanism to support requests for funding new opportunities

bull A clear framework for corrective action where measures are not being successfully met

bull A common format and mechanism for reporting department performance to officers and senior management

bull A common format and mechanism for reporting and reviewing department performance with staff

bull Help with the development of individual job performance appraisal content ndash which should be designed to support Department Objectives

Department Cascading was complete in early 2009 There are over 200 separate department measures that are tracked each quarter

VI NMDP ViA Today

NMDP has established a department Champions Council Members of the Council are becoming experts at using the automated ViA software Today this is being used at department staff meetings to facilitate discussion around corrective action for underperforming or unacceptable Department Measures Departments use the department Strategy Maps to guide staff meeting discussions on performance measures and corrective action plans

ldquoAll business cases or requests for funding must be submitted with clear tangible descriptions of how the effort will impact ViA Strategic Objectivesrdquo explained Boo ldquoOnce all business cases have been submitted to the officer group for final approval they are prioritized in order of their impact on ViA Strategic Objectivesrdquo

All strategic and department measures are required to be reported into the ViA system each quarter Each is color coded based on an officer-approved target matrix Each measure owner is required to provide comments regarding the measure performance for the quarter and discuss how he or she expects the measure to end the fiscal year This information is shared with senior management for review and follow-up with measure owners ifwhen necessary

Senior management uses the color-coded NMDP Strategic Map as a basis for discussing quarterly performance and identifying

Strategic Objective areas that may need attention corrective action andor more resources NMDP tries to focus not only on corrective action items but also highlight success stories where outstanding performance has been reported

All employees will soon have access to the web-based ViA application to provide as much transparency and visibility as possible in order to become a truly strategy-focused organization

ldquoVision into Action has been successful within the organization to a great extent because of the consistent support and guidance provided by NMDP leadership including our CEO Dr Jeffrey Chell my fellow Officers and the Board of Directorsrdquo said Boo

Howard Rohm President and CEO of the Balanced Scorecard Institute is a Performance Management trainer consultant and technologist with over 40 years experience Mr Rohm has helped dozens of organizations worldwide build Balanced Scorecard and other performance planning and management systems

48

Pe

rform

Mag

azine

Info

rmatio

n in

Actio

n

A community for BIRT users and developers sponsored by Actuate

A Report Writing Portal lets your end users browse reports modify them and even develop

new ones You can set one up in three steps when you use AJAX-based BIRT technology

Because the end user tools to modify and create reports are AJAX-based therersquos no desktop

software to install Users get the reports they need quicker while the burden on development

resources to create new reports is reduced

BIRT Exchange is a community site that offers the broadest collection of resources for the Eclipse BIRT (Business Intelligence

and Reporting Tools) project and for integrating spreadsheets with Java The site is sponsored by Actuate a co-leader of the BIRT project

Sponsored by

See a Demo

at Booth

602

For More Information

Contact us by phone at 1-800-884-8665

1-913-851-5300 from outside of the United States

wwwbirt-exchangecom wwwactuatecom

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Vol 6 Issue 2 2009

JCIrsquos previous approach of one-off negotiating as well as its spirit of continuous improvement and customer focus meant that it had only one-off measures in every location The company for example had 127 variations of the measure lsquomaintenance managementrsquo Many were very similar but since they were not exactly the same they could not be compared effectively Inefficiency at gathering and maintaining data at different locations across the globe made the task difficult as well Data was collected any way possible thrown into a cell or a Power Point slide and handed in at the end of the month It was highly inefficient extremely customized at every location and did not allow any ability to benchmark compare or look at best practices These concerns and requirements drove JCI on its scorecarding journey

The Solution

In initiating its scorecarding solution JCI first had to establish the right measures Business leaders were chosen for all of the scorecard categories and for each of them a business owner was selected for each region these business leaders and owners were responsible for defining the standards and measures Data collection systems in some cases proved difficult there wasnrsquot always centralized information available ndash in some cases data needed to be gathered right down at the account level This meant that the process of data collection and identifying measures was a significant job To get started though JCIrsquos web programmers were able to put up some scorecards quickly to allow the company to start architecting measures this allowed business leaders across the globe to start identifying their measures and to put the processes in place regionally to collect information

Before committing to a technology JCI wanted to know 100 percent of their business requirements and this was the point of their web-based scorecard To assist in this endeavor Actuate ndash prior to selection ndash let the company test drive their product The JCI team went through and looked at every single screen determining where they had to configure the tool and for every single screen they also made what they called a lsquoblueprintrsquo creating an Excel template with fields to correspond with every field on each screen It was incredibly detailed work but they wanted to ensure no mistakes were made and that the business requirements were defined To accomplish this there was an extreme amount of detailed coordination globally with twice-weekly meetings for the worldwide team in charge of the initiative A byproduct of the process was that the team learned to use the Actuate BIRT Performance Scorecard and basically built all of the blueprints for the project design

JCIrsquos audience for the project upon kick off were the 300 external customers that would have access to this information Customers previous to this were getting their information via Excel and PowerPoint In addition to these external customers was the population of approximately 1000 internal users within JCI itself These included account leaders and functional leaders including those from HR Finance Safety etc

Three primary functions of the project were

1 To replace the PowerPoint slides used in global and regional monthly internal operational reviews

2 To very quickly be able to become best in class JCI wanted everyone who had an account to be able to see where they sat compared to their peers This provided individuals ndash when faced with a problem ndash the ability to quickly identify and contact others who had solved the same issue

3 To standardize customer faith in contractually required performance measures This was a key goal of the company which felt that if they were going to benchmark and compare they needed to bring in the best practices learned at one location to their work at other locations

These three primary functions were heavily loaded in JCIrsquos rating system as the company set out to choose the right software for their scorecarding project It was also important that the software be intuitive as there was no time for hundreds of hours of global-wide training The software had to be rapid and easily configurable with limited IT assistance As JCI is a very large organization with a lot of systems in place the team in charge also wanted the software to be easily adjustable to the companyrsquos rapidly changing business they didnrsquot want to have to get into queue for IT every time a change had to be introduced or a new customer added

JCI Chooses ActuateFour vendors were evaluated for JCIrsquos scorecarding project with a global team in place to provide a systematic discussion of the defined business process and requirements The product chosen was the BIRT Performance Scorecard JCI had 30 days of Actuate Professional Services and planned for monthly micro improvements and quarterly macro improvements

Upon purchasing the BIRT Scorecard in January 2007 using the blueprints theyrsquod established already the company wrote their business processes They were able to go live in 90 days helped by the homework they did with the blueprints the web scorecard and the data collection processes It was an incredibly smooth implementation overall

The Results

Whereas JCI originally started out with a model of one-off negotiations with customer measures the scorecarding project has led to approximately 70 percent agreement on JCI standard metrics The company does a customer satisfaction survey both annually and quarterly and aims to demonstrate evidence towards continual improvement

Since implementation of the project the company has also been solving its data integrity issues Previously two regions might have been using the same words but not the same data collection methods ndash this made it impossible to introduce benchmarking and comparison between areas Now those problems are being solved and benchmarking and comparison are possible to the benefit of both JCI as it strives for best-in-class status and its customers

By David F GiannettoCEOThe Telos Group

Johnson Controls Incorporated (JCI) is a $38 billion company with a total of 140000 employees working out of more than 1300 locations in 125 countries worldwide Headquartered in Milwaukee Wisconsin the company provides a range of services including

real-estate portfolio management property management facility management and design and construction services

To initiate its scorecarding project JCI began by creating five categories of measurement Business Performance (this includes all financial measures) Service Delivery Customer Satisfaction Safety and People While the other four categories may be typical to most organizations the Service Delivery category was designed to take JCIrsquos measurements down to the client-site level which includes over 300 locations globally where the company has contracts In some cases there might be one staff member assigned to manage a single building while other times a staff member has a whole portfolio they maintain Measuring performance at all of these locations and levels proved a complex undertaking

Strategic Initiatives

Like all service providers JCI has to demonstrate that they add value Scorecarding allows them to do this both internally

and externally using data-driven results Since JCI has always been very much a data-driven organization anyway with a manufacturing background this was a natural fit for the corporation

JCIrsquos organization-wide motto is to be as good everywhere as they are somewhere Theyrsquove found that in any one account they may excel in several areas but perhaps not in all areas elsewhere though on another account someone else might have the skills needed to fill in those gaps The companyrsquos goal was to share information and communicate it between different locations across the globe allowing the company as a whole to get better faster and to benefit from the skills and strengths of its individual members Scorecarding was introduced as a way to help share this information and to introduce benchmarking within the company

The Requirements

To get started on their scorecarding initiative JCI examined each of their US contracts What they found was that there were no standards between clients and therefore no ability to benchmark Customers though wanted the ability to find out how they stood in relation to other customers This was impossible under the circumstances

Global Operational Excellence and a Performance Scorecard System A Case Study of

Johnson Controls Incorporated

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Out of Touch With Crucial Data

Previously when Helzbergrsquos divisional and regional vice presidents went on the road access to their key performance metrics was restricted Without a laptop and a WiFi or hotel network connection to the internet they were ldquoflying blindrdquo according to Greg Backhus Helzbergrsquos Director of Data Warehouse and Decision Support Systems As a result they did a lot of faxing it was the only way they could get the current data that they needed in order to

About Webalo

Webalo technology transforms enterprise applications and data to make them compatible with mobile

devices This eliminates the need for traditional custom programming reducing the deployment of mobile applications from weeks or months to in most cases less than a day The resulting ldquoanywhere anytime on-demandrdquo availability of enterprise data on handheld devices turns such devices into viable alternatives to desktop laptop and palmtop computer hardware and lets mobile employees work more productively ndash on the spot ndash to solve problems answer questions monitor operations close sales and make informed decisions

The Webalo Mobile Dashboard Service ndash available in both internet-based and enterprise intranet-based implementations ndash lets non-IT business administrators securely specify the content of mobile-accessible information and the companion Webalo Proxy Server configures it in seconds to conform to the native user interface of any BlackBerry Windows Mobile Pocket PC Palm Symbian or Java-enabled smartphone

CLARITY CUT AND CARATSHow Helzberg Diamonds Made Sales Data Clearer Eliminated

Delays and Lightened the Load for its Divisional Executives

A diamond may be forever but a lot has changed in how theyrsquove been marketed and sold during Helzberg Diamondsrsquo nine decades in business A single store has expanded to nearly 300 locations from coast to coast and border to border Sales can also be made online now And information about every sale can be accessed in an instance through the companyrsquos enterprise systems

bull Compare actual sales to their goals and plans

bull Determine transaction counts for total dollar volume and average sales value

bull Break down sales by product category

bull Monitor attachment rates for products and services related to the main product sale

For example onsite at individual stores it was difficult to gauge how an active price-reduction sale was affecting unit and dollar

volumes unless there happened to be a coffee shop next door with a WiFi connection that would let Helzbergrsquos executives access the enterprise system

The Three Cs of Information Access

The three Cs of diamond grading ndash clarity cut and carats (or weight) ndash turned out to be applicable to data access as well But it took a transition to handheld devices and to the Webalo Mobile Dashboard to achieve it

Though laptop computers had gotten lighter and lighter over the years they were still considerably heavier than the Pocket PC-based smartphones that Helzbergrsquos executives used Since they were carrying those handhelds in addition to their laptops the VPs were open to the idea of being able to

bull Access sales metrics on their handhelds

bull Have data available on-demand from any location with a wireless signal

bull Navigate quickly to the figures they needed

bull Get updates to their metrics automatically

bull Review the information offline

It was the only time that carrying less weight ndash or carats ndash added more value Using a simple step-by-step wizard Helzbergrsquos support staff was able to configure their enterprise reports in a matter of hours They then assigned access privileges to each executive to control who could see what information and uploaded the file to the Webalo server That satisfied how data was ldquocutrdquo

For each mobile user regardless of the brand and model of smartphone they used the Webalo Mobile Dashboard conformed the information to the devicesrsquo user interface The application worked and looked exactly like any other application developed specifically for their mobile devices the on-screen text was easy to read and navigation used the same menu structure That meant there was no learning curve to delay user acceptance and productivity Clarity was essential and the Mobile Dashboard delivered it right down to the ability to bookmark commonly-referred-to displays for instant reference enhancing on-the-spot productivity even more

Speed and Simplicity

Productivity was also improved on the IT side Without the need for custom programming to conform the information to each smartphone brand and model deployment was reduced from months to hours

Since adopting the Webalo Mobile Dashboard Backhus says ldquoThe Divisional VPs find it invaluable They get more done because they donrsquot have the delays they used to haverdquo Decisions that used to have to wait for current data are now made right away relying on the right data presented in the right format

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Sustainable practice has graduated from being market hype

to becoming a strategic initiative important for driving a successful enterprise It not only reduces a companyrsquos impact on the environment but can help organizations achieve a competitive advantage to build their brand impact top and bottom line and improve customer acquisition satisfaction and retention

Creating a road map towards sustainable management can require an entire shift in corporate thinking one that involves searching for buy-in at all levels establishing useful metrics and introducing practices that get beyond the green hype The end result though is not just a greener organization but also one with a more prosperous future

Why Sustainability

In August 2008 a survey undertaken by CIO Insight examined green practices in business focusing on the reasons why CIOs introduce sustainability efforts into their organizations The number one reason why organizations went green the study found was that the people within those companies sincerely had a concern for the environment A total of 74 percent of respondents answered that way 32 percent of which listed it as their most influential driver

Other influential drivers named in the survey included

Financial Drivers Companies found sustainability to be a way of cutting costs If they could cut energy costs not only would that help the environment but it would also help create cost savings The second most popular answer in the CIO Insight study financial impacts are key to implementing sustainability in most organizations Examples of financial impacts possible from sustainability were presented at CFO

2 The CFO Green

Conference which took place in May 2008

bull Dupont reduced its CO2 emissions by 70 percent saving the company $3 billion

bull FedEx redesigned its delivery trucks making them more aerodynamic This reduced the amount of particulate pollutants nitrogen and carbon the trucks put into the atmosphere and it also reduced the companyrsquos fuel costs exceptionally

Customer Image In the CIO Insight survey the third motive listed by CIOs for introducing sustainability ndash at 64 percent ndash was company image Consumers are becoming more and more aware of whether companies or organizations are living up to sustainability ideals They will notice if a company image or brand value reflects this concern for the environment Meaningful sustainability efforts can help gain customer approval as in the following case

bull Wal-Mart and Procter amp Gamble together agreed to sell liquid laundry detergent only in concentrated form This saved shelf space for Wal-Mart reduced water use by 400 million gallons for Procter amp Gamble and eliminated 45 million pounds of plastic waste

Regulatory Requirements The surveyrsquos fourth most popular reply ndash at only 25 percent ndash were current or potential regulations including the cap and trade systems being implemented which will require companies to buy carbon and sell carbon credits

Shareholder Pressure Finally at fifth in the CIO Insight survey ndash with 14 percent of responses ndash was shareholder or public pressure pressure building from shareholders to put forth sustainability efforts Pressure at this level is often mixed though as shareholders are also likely to express a desire that they donrsquot want shares to decline in value The general message may be that it is fine to introduce sustainability measures only as long as there is no risk that they will hurt the company

A Road Map Towards Sustainability

Step 1 Identify What Drives Your Organization

The first step in the road map towards sustainability is identifying key drivers Some drivers vary from one organization to another while others seem to drive any organization regardless of the industry Drivers incude

Internal drivers

bull Cost cuttings and savings

bull Employees including both the satisfaction of current employees as well as the recruitment and retention of future employees

bull Investment

External Drivers

bull Stakeholders including both those within the company ndash the employees discussed above ndash as well as stakeholders outside of the company

bull Brand awareness because consumers are becoming increasingly aware of the choices that are available to them and are making choices based on a companyrsquos green initiatives

Future drivers

bull Tax incentives

bull The recruitment and retention of future customers

Step 2 Select Your Metrics

In general terms sustainability metrics will fall into one of four major categories those that affect the climate those that affect the oceans those that affect human health and those that affect common issues like the land the water the wildlife etc

Within those large categories are smaller areas of interest that companies must examine to introduce organization-wide sustainability management carbon monoxide use energy consumption water consumption and fuel consumption are prime examples

Carbon Monoxide Use Many of the questions companies are asking themselves in regards to carbon monoxide use include

A Road Map of Key

Sustainability Metrics

That Impact Bottom

Line

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Vol 6 Issue 2 2009

bull How much carbon monoxide do we produce

bull Which processes in our overall manufacturing or delivery use produce the most emissions

bull Can we determine the indirect emissions For example leave a computer plugged in and itrsquos still on the grid creating an indirect carbon dioxide emitter How can we measure that

bull Whatrsquos our cost Do we have metrics that tell us what our CO2 emissions cost us

bull Can we predict into the future If we continue on this path without doing anything where will we be next month Next quarter Next year

Some examples of metrics related to carbon monoxide use include carbon dioxide emissions per employee (similar to revenue per employee) carbon footprint metrics and transportation distances

Energy Consumption Areas of interest related to corporate energy consumption may include the following

bull How much do we consume From what sources

bull Are we on the grid Are we using solar power or wind power or another alternative power

bull How much is used by our data center How do we make the data center greener

bull Where can we reduce consumption

Companies today are reducing energy consumption in a variety of ways by introducing energy audits and looking at energy-saving appliances and also through energy incentive programs for employees within which companies can incentivize and introduce bonus plans

Water Consumption An examination of a companyrsquos water consumption may include some of the following queries

bull How much water do we currently use and where

bull Where in our processes do we use the most water

bull Can we predict how much wersquore going to use in the future

Some of the examples of metrics that companies introduce in terms of water consumption include improved water quality how much impact low-flow or low-volume toilets have on water consumption and how much water is or can be recycled

Fuel Consumption Questions to consider in relation to fuel consumption include

bull How much fuel do we use

bull Where are the inefficiencies

bull Whatrsquos being predicted for fuel usage in the future

bull Can we analyze our logistics so that we can determine how to reduce our fuel consumption For example where are our trucks traveling How are they traveling What kinds of loads are they carrying

Step 3 Recognize Challenges

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly As such easier ways to enhance communication and to increase visibility need to be introduced both inside and outside of an organization

There are also constantly evolving requirements measures and standards of success With everything so new companies are challenged to find ways to compare their sustainability efforts with other organizations The biggest challenge in implementing these processes or attracting metrics may be that they require an entire shift in thinking Additional challenges that exist in the implementation of a sustainability model include

1 Financial concerns Companies must truly see potential for returns on investment or these initiatives can become non-starters or stall

2 Lack of regulatory motivation While not as common as it once was certain organizations arenrsquot motivated to introduce sustainability until government regulations are in place

3 Lack of a formal strategy for sustainability Without a formal strategy it is difficult for companies to determine where they need to go

4 Determining appropriate metrics Companies must choose metrics that are useful demonstrate impact and say something about their own corporate environment

5 Calculating metrics Standard algorithms and calculations exist to calculate metrics but companies must find the appropriate ones and use them

6 Finding quality data to plug into those calculations As in any Business Intelligence project if the quality of the data is questionable then so are the sustainability metrics themselves

7 Determining the scope of the sustainability project The scope is critical Narrow it down to something achievable feasible and useful

Step 4 Learn from Best Practices

What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde

bull Assign an executive champion Without an executive champion to drive the project initiatives are more likely to lack a holistic view and a clear vision for an implementation strategy they may take longer to implement and theyrsquore less likely to yield the required results To provide motivation consider linking the championrsquos salary directly to sustainability savings or to the increased revenues that result from sustainability efforts

bull Implement internal training and education Educate employees on what to expect and what is expected from them

bull Improve communication Communicate both to employees and to stakeholders outside of the organization

bull Start to think about alternative energy management and control strategies

bull Engage the use of technology and services For companies not sure where to begin a sustainability consultant can assist with program selection as can vendors such as Actuate which has a sustainability management solution in place

Step 5 Get Started

Understand that sustainability development is a business opportunity Donrsquot look at it solely as environmental although that is also important Itrsquos an opportunity for companies to introduce more cost-effective processes and procedures and to become more cost effective in their vehicle fleet manufacturing delivery etc

bull Create globally consistent metrics and goals Large agencies have to make sure that the entire group is on board and that they have consistent metrics and consistent goals across the enterprise

bull Find the value and drive the action What is the value of monitoring these sustainability areas and whatrsquos the course of action if you see that theyrsquore going off kilter or are not tracking as expected

bull Start small Initiatives such as these can become incredibly complex very quickly Start small and build in the complexity with each ensuing project

bull Get buy in People need to understand what the metrics are why theyrsquore there and what they mean to each individualrsquos situation (as reflected in individual bonus plans perhaps) Measure using industry-accepted methodologies and industry-accepted protocols continually improve metrics through optimization and forecasting and constantly optimize metrics and forecast into the future

bull As much as possible accurately report to everybody environmental performance Let employees shareholders customers and regulators know If data is questionable fix it get quality processes in place and then run the metrics

bull Determine environmental impact Has waste been reduced Has resource utilization been reduced Has the company improved environmental factors

Also consider using an Open Source vendor The Open Source community is beginning to develop sustainability metrics and Open Source reduces the costs of developing metrics while software costs for the project are reduced as well

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly ldquo

rdquo What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde ldquo

rdquo

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Vol 6 Issue 2 2009

Step 6 Move from Green Hype to Sustainable Action

A successful sustainability initiative involves identifying metrics that will translate into cost savings and benefits while avoiding metrics that are not likely to yield required results To accomplish this start small start with a small department within the organization and then repeat this continuing to repeat it throughout the enterprise

bull Start with basic conservation Change behavior reduce consumption and in the process increase investment

bull Start reusing Improve productivity improve efficiency and create less waste

bull When this translates into cost savings re-invest Grow make larger improvements and increase involvement

Projects that make good starting points

bull Measure carbon dioxide emissions throughout a value chain or product lifespan Look for potential improvements

bull Ensure regulatory compliance By knowing what the regulations are companies can determine what metrics need to be in place

bull Identify ways to promote and profit from more environmentally-respectful goods and services Companies can promote environmentally-respectful goods and services while also using sustainability to help the company

Monitor the effects of each project to determine which strategies have the most impact both physically in terms of

the environment and financially in terms of revenues and cost savings Publicize how metrics are tracking over time

Actuate for Sustainability Management

Actuate for Sustainability Management is a solution by Actuate that integrates highly interactive visually rich dashboards There are pre-built sustainability scorecards strategy maps and over 100 pre-built metrics across the economic social and environmental aspects of sustainability

The Actuate BIRT Performance Scorecard supports the metrics defined including

bull Reducing an organizationrsquos environmental footprint

bull Building green facilities and buildings

bull Compliance and reporting

bull Manufacturing

bull Community and engagement

bull Human development including employee well-being and satisfaction

Actuate for Sustainability Management provides collaboration across regulators consumers and non-governmental organizations Dashboards and scorecards come integrated with reporting so as to improve reporting to stakeholders both outside and inside of an organization All of the products are built on Actuatersquos dependable cost-effective and scaleable platform

Performance Management solutions help organizations understand act on and influence business decisions processes and measures of business success The 2009 Actuate Performance Management Excellence Awards will honor customer success stories in four key areas Over the next several issues Perform Magazine will highlight some of the entries in these categories

Category 1 Go Green

Each year the concept of environmental responsibility has implications for both the private and public sector specifically with regards to how each measures the performance of their operations For organizations using the Actuate BIRT Performance Scorecard to measure the progress of organizational Green initiatives how have they responded to the challenge and how do they use the BIRT Performance Scorecard to ensure they stay on track

Category 2 The Perfect Slice

Successful Performance Management comes in all sizes Some initiatives are enterprise-wide while others are focused around specific business units or functions yet still encompass a holistic approach to Performance Management by looking beyond financial indicators to a more balanced set of indicators This category includes organizations deploying the Actuate BIRT Performance Scorecard with a focus on improving the performance of individual business units or functions and includes the measurement of people and processes

Category 3 Big Bang

Carefully executed Performance Management initiatives begin with a measured approach to the initial implementation and quickly expand to other parts of the organization aligning business units to strategy at each step This category is open to Actuate customers who initially implemented the Actuate BIRT Performance Scorecard to a limited user community and through careful change management and planning expanded the use of the BIRT Performance Scorecard throughout the organization

Category 4 Super Size

Award-winning enterprises achieve breakthrough results in the financial customer operational and people perspectives of their business and leverage internal champions across the organization to ensure ongoing and sustainable success The key to achieving these results lies in total visibility of all business units aligned to strategy This category is open to any Actuate customer with a fully deployed enterprise-wide Actuate BIRT Performance Scorecard implementation

Actuate Performance Management Excellence Awards2009

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HealthNow New York Inc headquartered in Buffalo is one of New York Statersquos leading healthcare companies doing business as BlueCross BlueShield of Western New York BlueShield of Northeastern New York HealthNow in the Central New York region and Brokerage Concepts Inc in Pennsylvania

Improving the health of people and communities are HealthNowrsquos corporate priorities and for more than 70 years the company has been a proactive partner in health working to improve the quality of care and the quality of life for everyone it serves In 2008 HealthNow provided access to care to more than 820000 members and in 2008 company revenues grew to $227 billion

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution and describe what you were trying to achieve as a group function or department

A few years ago HealthNow New York Inc determined that the key to its continued success would be its ability to differentiate itself from other healthcare plans in ways that could not be readily duplicated or copied by their competitors In an increasingly crowded marketplace to get the attention of new customers and retain existing ones HealthNow needed to set itself apart from others

This lasting competitive advantage needed to come from an organizational culture that was dedicated to a relentless focus on meeting customersrsquo needs It needed to be highly responsive supportive flexible and nimble particularly as the healthcare marketplace continues to change with more responsibility placed upon its customers

To that end a new business model was implemented to provide the framework for customer focus Under the new structure the company was divided into four strategic business units (SBUs) each responsible for financial contribution customer satisfaction medical utilization and market share of a specific book of business

Each SBU includes its own set of functions including sales account and broker management product configuration customer intelligence pricing enrollment and billing customer service medical management and HR support Each business unit is led by an executive who is fully accountable for the unit operations and for bottom-line performance of the entire business unit Each SBU is supported by various corporate support functions (Actuarial IT Legal etc)

Implementation of the new business model began with a reorganization of the senior management structure The senior management of each SBU has specific incentive goals as well as strategic goals aligned with the corporate incentive Those strategic goals then drill down to ldquoteamrdquo incentives and to a blend of strategic and operational goals

This was a completely new way of looking at our business It was a blank slate requiring new processes and new methodology as well as an examination of existing metrics and processes to determine what added value and where the strengths weaknesses opportunities and gaps were

Under this new structure the Government Programs State and Federal products SBU ndash which historically had some inefficient end-to-end processes lacked internal controls and had minimal oversight of financial performance ndash was able to set a foundation and develop a growth strategy In order to achieve this mission and to align track monitor improve and communicate performance the Senior Vice President of the Government Programs SBU elected to utilize a Performance Management framework via the Actuate BIRT Performance Scorecard

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

As a point of reference the Government Programs SBU is comprised of a State Government Programs team a Federal Government Programs team an Operations team and a Sales team The Performance Management design team was comprised of the Actuate system administratorfacilitator the Government Program financial reporting manager and two SBU data analysts Input from the various teamsrsquo management staff was gathered as the design got more granular

Discussions around the design of the Government Programs scorecard began with two basic questions

1 What are the handful (ideally six to eight) of key performance indicators that are necessary to run and manage your business and to indicate that yoursquore on the right path to achieving your goals

Defining the key performance indicators was a challenge that required the Actuate system administrator in a facilitative role to get intimately involved in order to keep the discussions focused and high level and to limit scope creep The incentive goals were clearly defined at the corporate and SBU level however the tough question was how should they drill down in the BIRT Performance Scorecard The facilitator posed the following questions to the other members of the design team

bull How do you usually look at your business

bull How are the primary source documents that capture this information structured

bull What other ways do you look at your business

Taking the answers to these questions a step further the facilitator asked the next question Is the drill-down structure the same for the core strategic or team metrics The answer was yes By taking this approach we were provided with consistency in how the teams look at their business and the performance of their core indicators

Once the incentive and strategic goals were identified more leading and lagging operational measures were defined such as

bull Call centers

bull Accuracy

bull Quality

bull Sales Performance

2 Who is your audience

Through the entire measure selection and definition process the design team was constantly reminded to keep a second question ndash who is your audience ndash in mind This helped keep the focus on the critical few and keep the number of metrics down to a manageable amount Links to supporting documentation were created to provide easy access to the granular data without burdening the scorecardrsquos objective

The audience in this case was the SBUrsquos Senior Vice President followed by the State Director Federal Director Operations Director and Sales General Manager It then cascades down to each directorrsquos management team and the data providers

In order to provide a complete and consistent picture of State and Federal performance for senior management where

gt Performance Management Excellence Awards

HealthNow New YorkCategory 2 Entry The Perfect Slice

gt Performance Management Excellence Awards

[ Figure 131 Homepage Map ]

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Vol 6 Issue 2 2009

possible the same or comparable measures were created for each team For example when looking at the various call center metrics ndash even if the definitions and targets slightly differed ndash if one team was consistently exceeding or meeting their target it sparked group discussion around best practices processes staffing and target definition

Utilization of Maps continues to play a major role in communicating performance Again focusing on our audience there is a Map at the Senior VP level which then links to a high-level Map for the State director and staff and for the Federal director and staff The one-page snapshot allows management to easily view performance then to drill down to specifics via additional detailed Maps or Books Because the audience embraces the Maps concept a ldquoWhere is itrdquo Map containing all Maps and Books by SBU was created Itrsquos a quick and easy reference tool

3 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

Quantitative results are achieved through the promotion of visibility and awareness The Return on Investment may not fit a conventional definition but can be measurable and accomplished by challenging the data targets and accompanying commentaryaction plan narrative to drive performance improvement Are the targets realistic yet aggressive Are action plans being documented and carried out Are the actions discussions and decisions leading to improved performance and processes

Government Programsrsquo membership is measured and monitored in various ways via the BIRT Scorecard and other sources For example Federal membership is measured by product then by plan It is also measured by market then by product then by plan By creatively visualizing performance in multiple ways via a Map those same data results can sometimes become very obvious telling a different story that may not be obvious via standard reporting methods It may clearly illustrate that a specific product in a specific market is continuously under-performing for example Fact-based decisions can then be made as to whether or not to continue with this product in this market or it may initiate discussions as to how to grow and retain profitable membership for this product in this market

Another more recent example is an initiative to track claims-review savings By reviewing claims via various processes what savings can be recouped or realized What specific areas are State and Federal teams focusing on that can contribute to overall savings for the SBU Again where applicable there should be consistency in the metrics across

teams Placeholders are included to promote visibility to keep them in the forefront even though the data or processes may not be in place yet But by capturing results on one page via a Map it bridges potential gaps between the teams promoting awareness and synergy across the SBU

4 Qualitative results What ldquosoftrdquo or intangible benefits has the group department or organization received as a result of this solution

A major benefit of the scorecard framework for the Government Programs SBU has been the identification and alignment of roles responsibilities and accountability

The SBUrsquos Senior VP monthly leadership meeting focuses on four areas

bull Performance Performance is covered via the existing incentive strategic and operational metrics

bull Action plans Documenting action plans in the Performance Management Software Suite versus verbalizing action plans establishes ownership and accountability At subsequent meetings management follows up on key action items or plans to determine whether or not the corrective action did take place and if yes did it have the desired results

bull Strategic direction The strategic direction of the various teams is captured as a springboard to strategic thinking discussions and planning So as not to lose sight of short- and long-term strategic planning this aspect of the business now is housed in the BIRT Scorecard completing the strategic planning of the ldquoHow are we going to get thererdquo and ldquoAre we there yetrdquo cycle This holistic approach helps minimize the chances of our scorecard becoming too focused on operational performance and keeps strategic planning dynamic and visible

The value of these metrics is not in the data but in the commentary The individual teamsrsquo strategic direction ldquometricsrdquo are subjective red = 1 yellow = 2 green = 3 The target = 3 Each metric includes a description of the specific strategic path we need to research or move forward on as well as what goal achievement it supports The ldquodatardquo ndash or color ndash is based on basic questions like What did you hope to achieve this month vs What did you actually achieve this month Were there any successes barriers obstacles In addition to accountability the entire SBU benefits from the sharing of information having meaningful discussion taking appropriate action and collaboration

bull Key initiatives The last critical component is the identification and alignment of key initiatives that

are necessary to support achievement of the various incentives strategic goals and direction and operational goals As with the strategic direction metrics the value is in the narrative with the color reflecting what was accomplished for the specific reporting period

5 Innovation Why should this solution be considered an Innovative Solution What makes it unique groundbreaking and superior What unintended results did you realize

Over time the Government Programs Performance Management framework evolved into an innovative solution The process drives performance and isnrsquot necessarily focused on ldquocolorrdquo Rather itrsquos about having the right people in the same room on a regular basis to drive meaningful discussion and to take appropriate action to improve performance

Outside of the standard processes it was the monthly review process that drove effectiveness revisions enhancements and restructuring of the meeting schedule agenda and format The Government Program financial reporting manager would meet with each director and general manager to review their scorecard for completeness as well as for performance from an operational perspective The State and Federal team directors would then meet with their respective management teams to review and discuss performance results in preparation for the joint Government Programs Leadership Meetings The audience included the Senior VP down to team managers key data analysts (data providers) and support function representatives Through trial and error management learned to maximize their time and effectiveness by concentrating on key metrics and topics rather than trying to review all metrics identify leading indicators versus only outcome results and include strategic thinking and initiatives Today the monthly leadership

meetings are much more productive and look at strategic and operational performance

As involvement and participation increased in the team meetings as well as in the leadership meetings it removed silos opened communications enabled the sharing of information and best practices and promoted teamwork across the SBU But most importantly it brought about an awareness and a sense of unity and commitment within the SBU to achieve their goals something that was lacking before

While it was not part of the initial scope management realized shortly after implementation that efficiencies could be gained by replacing an in-depth hard copy monthly report with BIRT-generated results Since the BIRT Scorecard contained the same data with supporting narrative ndash plus additional metrics with narrative ndash monthly performance was captured via a monthly report Book various Maps and BIRT-generated reports Elimination of the hard-copy report was an unintended way of encouraging a more active use of the Performance Management software by management to monitor performance thereby increasing user familiarity with the contents features functionality and navigation

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

Sustainability is achieved through a continuous process of revisiting the scorecard when there are organizational changes looking at the business direction shifts goal changes process changes etc To ensure that metrics are still relevant a filtering process is held with each director and general manager every six to eight months or as necessary During this exercise questions such as the following are asked

gt Performance Management Excellence Awards gt Performance Management Excellence Awards

[ Figure 132 CEOrsquos Book ]

54

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Vol 6 Issue 2 2009

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

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57

Vol 6 Issue 2 2009

3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

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  1. Button 3
Page 21: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

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JCIrsquos previous approach of one-off negotiating as well as its spirit of continuous improvement and customer focus meant that it had only one-off measures in every location The company for example had 127 variations of the measure lsquomaintenance managementrsquo Many were very similar but since they were not exactly the same they could not be compared effectively Inefficiency at gathering and maintaining data at different locations across the globe made the task difficult as well Data was collected any way possible thrown into a cell or a Power Point slide and handed in at the end of the month It was highly inefficient extremely customized at every location and did not allow any ability to benchmark compare or look at best practices These concerns and requirements drove JCI on its scorecarding journey

The Solution

In initiating its scorecarding solution JCI first had to establish the right measures Business leaders were chosen for all of the scorecard categories and for each of them a business owner was selected for each region these business leaders and owners were responsible for defining the standards and measures Data collection systems in some cases proved difficult there wasnrsquot always centralized information available ndash in some cases data needed to be gathered right down at the account level This meant that the process of data collection and identifying measures was a significant job To get started though JCIrsquos web programmers were able to put up some scorecards quickly to allow the company to start architecting measures this allowed business leaders across the globe to start identifying their measures and to put the processes in place regionally to collect information

Before committing to a technology JCI wanted to know 100 percent of their business requirements and this was the point of their web-based scorecard To assist in this endeavor Actuate ndash prior to selection ndash let the company test drive their product The JCI team went through and looked at every single screen determining where they had to configure the tool and for every single screen they also made what they called a lsquoblueprintrsquo creating an Excel template with fields to correspond with every field on each screen It was incredibly detailed work but they wanted to ensure no mistakes were made and that the business requirements were defined To accomplish this there was an extreme amount of detailed coordination globally with twice-weekly meetings for the worldwide team in charge of the initiative A byproduct of the process was that the team learned to use the Actuate BIRT Performance Scorecard and basically built all of the blueprints for the project design

JCIrsquos audience for the project upon kick off were the 300 external customers that would have access to this information Customers previous to this were getting their information via Excel and PowerPoint In addition to these external customers was the population of approximately 1000 internal users within JCI itself These included account leaders and functional leaders including those from HR Finance Safety etc

Three primary functions of the project were

1 To replace the PowerPoint slides used in global and regional monthly internal operational reviews

2 To very quickly be able to become best in class JCI wanted everyone who had an account to be able to see where they sat compared to their peers This provided individuals ndash when faced with a problem ndash the ability to quickly identify and contact others who had solved the same issue

3 To standardize customer faith in contractually required performance measures This was a key goal of the company which felt that if they were going to benchmark and compare they needed to bring in the best practices learned at one location to their work at other locations

These three primary functions were heavily loaded in JCIrsquos rating system as the company set out to choose the right software for their scorecarding project It was also important that the software be intuitive as there was no time for hundreds of hours of global-wide training The software had to be rapid and easily configurable with limited IT assistance As JCI is a very large organization with a lot of systems in place the team in charge also wanted the software to be easily adjustable to the companyrsquos rapidly changing business they didnrsquot want to have to get into queue for IT every time a change had to be introduced or a new customer added

JCI Chooses ActuateFour vendors were evaluated for JCIrsquos scorecarding project with a global team in place to provide a systematic discussion of the defined business process and requirements The product chosen was the BIRT Performance Scorecard JCI had 30 days of Actuate Professional Services and planned for monthly micro improvements and quarterly macro improvements

Upon purchasing the BIRT Scorecard in January 2007 using the blueprints theyrsquod established already the company wrote their business processes They were able to go live in 90 days helped by the homework they did with the blueprints the web scorecard and the data collection processes It was an incredibly smooth implementation overall

The Results

Whereas JCI originally started out with a model of one-off negotiations with customer measures the scorecarding project has led to approximately 70 percent agreement on JCI standard metrics The company does a customer satisfaction survey both annually and quarterly and aims to demonstrate evidence towards continual improvement

Since implementation of the project the company has also been solving its data integrity issues Previously two regions might have been using the same words but not the same data collection methods ndash this made it impossible to introduce benchmarking and comparison between areas Now those problems are being solved and benchmarking and comparison are possible to the benefit of both JCI as it strives for best-in-class status and its customers

By David F GiannettoCEOThe Telos Group

Johnson Controls Incorporated (JCI) is a $38 billion company with a total of 140000 employees working out of more than 1300 locations in 125 countries worldwide Headquartered in Milwaukee Wisconsin the company provides a range of services including

real-estate portfolio management property management facility management and design and construction services

To initiate its scorecarding project JCI began by creating five categories of measurement Business Performance (this includes all financial measures) Service Delivery Customer Satisfaction Safety and People While the other four categories may be typical to most organizations the Service Delivery category was designed to take JCIrsquos measurements down to the client-site level which includes over 300 locations globally where the company has contracts In some cases there might be one staff member assigned to manage a single building while other times a staff member has a whole portfolio they maintain Measuring performance at all of these locations and levels proved a complex undertaking

Strategic Initiatives

Like all service providers JCI has to demonstrate that they add value Scorecarding allows them to do this both internally

and externally using data-driven results Since JCI has always been very much a data-driven organization anyway with a manufacturing background this was a natural fit for the corporation

JCIrsquos organization-wide motto is to be as good everywhere as they are somewhere Theyrsquove found that in any one account they may excel in several areas but perhaps not in all areas elsewhere though on another account someone else might have the skills needed to fill in those gaps The companyrsquos goal was to share information and communicate it between different locations across the globe allowing the company as a whole to get better faster and to benefit from the skills and strengths of its individual members Scorecarding was introduced as a way to help share this information and to introduce benchmarking within the company

The Requirements

To get started on their scorecarding initiative JCI examined each of their US contracts What they found was that there were no standards between clients and therefore no ability to benchmark Customers though wanted the ability to find out how they stood in relation to other customers This was impossible under the circumstances

Global Operational Excellence and a Performance Scorecard System A Case Study of

Johnson Controls Incorporated

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Out of Touch With Crucial Data

Previously when Helzbergrsquos divisional and regional vice presidents went on the road access to their key performance metrics was restricted Without a laptop and a WiFi or hotel network connection to the internet they were ldquoflying blindrdquo according to Greg Backhus Helzbergrsquos Director of Data Warehouse and Decision Support Systems As a result they did a lot of faxing it was the only way they could get the current data that they needed in order to

About Webalo

Webalo technology transforms enterprise applications and data to make them compatible with mobile

devices This eliminates the need for traditional custom programming reducing the deployment of mobile applications from weeks or months to in most cases less than a day The resulting ldquoanywhere anytime on-demandrdquo availability of enterprise data on handheld devices turns such devices into viable alternatives to desktop laptop and palmtop computer hardware and lets mobile employees work more productively ndash on the spot ndash to solve problems answer questions monitor operations close sales and make informed decisions

The Webalo Mobile Dashboard Service ndash available in both internet-based and enterprise intranet-based implementations ndash lets non-IT business administrators securely specify the content of mobile-accessible information and the companion Webalo Proxy Server configures it in seconds to conform to the native user interface of any BlackBerry Windows Mobile Pocket PC Palm Symbian or Java-enabled smartphone

CLARITY CUT AND CARATSHow Helzberg Diamonds Made Sales Data Clearer Eliminated

Delays and Lightened the Load for its Divisional Executives

A diamond may be forever but a lot has changed in how theyrsquove been marketed and sold during Helzberg Diamondsrsquo nine decades in business A single store has expanded to nearly 300 locations from coast to coast and border to border Sales can also be made online now And information about every sale can be accessed in an instance through the companyrsquos enterprise systems

bull Compare actual sales to their goals and plans

bull Determine transaction counts for total dollar volume and average sales value

bull Break down sales by product category

bull Monitor attachment rates for products and services related to the main product sale

For example onsite at individual stores it was difficult to gauge how an active price-reduction sale was affecting unit and dollar

volumes unless there happened to be a coffee shop next door with a WiFi connection that would let Helzbergrsquos executives access the enterprise system

The Three Cs of Information Access

The three Cs of diamond grading ndash clarity cut and carats (or weight) ndash turned out to be applicable to data access as well But it took a transition to handheld devices and to the Webalo Mobile Dashboard to achieve it

Though laptop computers had gotten lighter and lighter over the years they were still considerably heavier than the Pocket PC-based smartphones that Helzbergrsquos executives used Since they were carrying those handhelds in addition to their laptops the VPs were open to the idea of being able to

bull Access sales metrics on their handhelds

bull Have data available on-demand from any location with a wireless signal

bull Navigate quickly to the figures they needed

bull Get updates to their metrics automatically

bull Review the information offline

It was the only time that carrying less weight ndash or carats ndash added more value Using a simple step-by-step wizard Helzbergrsquos support staff was able to configure their enterprise reports in a matter of hours They then assigned access privileges to each executive to control who could see what information and uploaded the file to the Webalo server That satisfied how data was ldquocutrdquo

For each mobile user regardless of the brand and model of smartphone they used the Webalo Mobile Dashboard conformed the information to the devicesrsquo user interface The application worked and looked exactly like any other application developed specifically for their mobile devices the on-screen text was easy to read and navigation used the same menu structure That meant there was no learning curve to delay user acceptance and productivity Clarity was essential and the Mobile Dashboard delivered it right down to the ability to bookmark commonly-referred-to displays for instant reference enhancing on-the-spot productivity even more

Speed and Simplicity

Productivity was also improved on the IT side Without the need for custom programming to conform the information to each smartphone brand and model deployment was reduced from months to hours

Since adopting the Webalo Mobile Dashboard Backhus says ldquoThe Divisional VPs find it invaluable They get more done because they donrsquot have the delays they used to haverdquo Decisions that used to have to wait for current data are now made right away relying on the right data presented in the right format

44

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Vol 6 Issue 2 2009

Sustainable practice has graduated from being market hype

to becoming a strategic initiative important for driving a successful enterprise It not only reduces a companyrsquos impact on the environment but can help organizations achieve a competitive advantage to build their brand impact top and bottom line and improve customer acquisition satisfaction and retention

Creating a road map towards sustainable management can require an entire shift in corporate thinking one that involves searching for buy-in at all levels establishing useful metrics and introducing practices that get beyond the green hype The end result though is not just a greener organization but also one with a more prosperous future

Why Sustainability

In August 2008 a survey undertaken by CIO Insight examined green practices in business focusing on the reasons why CIOs introduce sustainability efforts into their organizations The number one reason why organizations went green the study found was that the people within those companies sincerely had a concern for the environment A total of 74 percent of respondents answered that way 32 percent of which listed it as their most influential driver

Other influential drivers named in the survey included

Financial Drivers Companies found sustainability to be a way of cutting costs If they could cut energy costs not only would that help the environment but it would also help create cost savings The second most popular answer in the CIO Insight study financial impacts are key to implementing sustainability in most organizations Examples of financial impacts possible from sustainability were presented at CFO

2 The CFO Green

Conference which took place in May 2008

bull Dupont reduced its CO2 emissions by 70 percent saving the company $3 billion

bull FedEx redesigned its delivery trucks making them more aerodynamic This reduced the amount of particulate pollutants nitrogen and carbon the trucks put into the atmosphere and it also reduced the companyrsquos fuel costs exceptionally

Customer Image In the CIO Insight survey the third motive listed by CIOs for introducing sustainability ndash at 64 percent ndash was company image Consumers are becoming more and more aware of whether companies or organizations are living up to sustainability ideals They will notice if a company image or brand value reflects this concern for the environment Meaningful sustainability efforts can help gain customer approval as in the following case

bull Wal-Mart and Procter amp Gamble together agreed to sell liquid laundry detergent only in concentrated form This saved shelf space for Wal-Mart reduced water use by 400 million gallons for Procter amp Gamble and eliminated 45 million pounds of plastic waste

Regulatory Requirements The surveyrsquos fourth most popular reply ndash at only 25 percent ndash were current or potential regulations including the cap and trade systems being implemented which will require companies to buy carbon and sell carbon credits

Shareholder Pressure Finally at fifth in the CIO Insight survey ndash with 14 percent of responses ndash was shareholder or public pressure pressure building from shareholders to put forth sustainability efforts Pressure at this level is often mixed though as shareholders are also likely to express a desire that they donrsquot want shares to decline in value The general message may be that it is fine to introduce sustainability measures only as long as there is no risk that they will hurt the company

A Road Map Towards Sustainability

Step 1 Identify What Drives Your Organization

The first step in the road map towards sustainability is identifying key drivers Some drivers vary from one organization to another while others seem to drive any organization regardless of the industry Drivers incude

Internal drivers

bull Cost cuttings and savings

bull Employees including both the satisfaction of current employees as well as the recruitment and retention of future employees

bull Investment

External Drivers

bull Stakeholders including both those within the company ndash the employees discussed above ndash as well as stakeholders outside of the company

bull Brand awareness because consumers are becoming increasingly aware of the choices that are available to them and are making choices based on a companyrsquos green initiatives

Future drivers

bull Tax incentives

bull The recruitment and retention of future customers

Step 2 Select Your Metrics

In general terms sustainability metrics will fall into one of four major categories those that affect the climate those that affect the oceans those that affect human health and those that affect common issues like the land the water the wildlife etc

Within those large categories are smaller areas of interest that companies must examine to introduce organization-wide sustainability management carbon monoxide use energy consumption water consumption and fuel consumption are prime examples

Carbon Monoxide Use Many of the questions companies are asking themselves in regards to carbon monoxide use include

A Road Map of Key

Sustainability Metrics

That Impact Bottom

Line

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Vol 6 Issue 2 2009

bull How much carbon monoxide do we produce

bull Which processes in our overall manufacturing or delivery use produce the most emissions

bull Can we determine the indirect emissions For example leave a computer plugged in and itrsquos still on the grid creating an indirect carbon dioxide emitter How can we measure that

bull Whatrsquos our cost Do we have metrics that tell us what our CO2 emissions cost us

bull Can we predict into the future If we continue on this path without doing anything where will we be next month Next quarter Next year

Some examples of metrics related to carbon monoxide use include carbon dioxide emissions per employee (similar to revenue per employee) carbon footprint metrics and transportation distances

Energy Consumption Areas of interest related to corporate energy consumption may include the following

bull How much do we consume From what sources

bull Are we on the grid Are we using solar power or wind power or another alternative power

bull How much is used by our data center How do we make the data center greener

bull Where can we reduce consumption

Companies today are reducing energy consumption in a variety of ways by introducing energy audits and looking at energy-saving appliances and also through energy incentive programs for employees within which companies can incentivize and introduce bonus plans

Water Consumption An examination of a companyrsquos water consumption may include some of the following queries

bull How much water do we currently use and where

bull Where in our processes do we use the most water

bull Can we predict how much wersquore going to use in the future

Some of the examples of metrics that companies introduce in terms of water consumption include improved water quality how much impact low-flow or low-volume toilets have on water consumption and how much water is or can be recycled

Fuel Consumption Questions to consider in relation to fuel consumption include

bull How much fuel do we use

bull Where are the inefficiencies

bull Whatrsquos being predicted for fuel usage in the future

bull Can we analyze our logistics so that we can determine how to reduce our fuel consumption For example where are our trucks traveling How are they traveling What kinds of loads are they carrying

Step 3 Recognize Challenges

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly As such easier ways to enhance communication and to increase visibility need to be introduced both inside and outside of an organization

There are also constantly evolving requirements measures and standards of success With everything so new companies are challenged to find ways to compare their sustainability efforts with other organizations The biggest challenge in implementing these processes or attracting metrics may be that they require an entire shift in thinking Additional challenges that exist in the implementation of a sustainability model include

1 Financial concerns Companies must truly see potential for returns on investment or these initiatives can become non-starters or stall

2 Lack of regulatory motivation While not as common as it once was certain organizations arenrsquot motivated to introduce sustainability until government regulations are in place

3 Lack of a formal strategy for sustainability Without a formal strategy it is difficult for companies to determine where they need to go

4 Determining appropriate metrics Companies must choose metrics that are useful demonstrate impact and say something about their own corporate environment

5 Calculating metrics Standard algorithms and calculations exist to calculate metrics but companies must find the appropriate ones and use them

6 Finding quality data to plug into those calculations As in any Business Intelligence project if the quality of the data is questionable then so are the sustainability metrics themselves

7 Determining the scope of the sustainability project The scope is critical Narrow it down to something achievable feasible and useful

Step 4 Learn from Best Practices

What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde

bull Assign an executive champion Without an executive champion to drive the project initiatives are more likely to lack a holistic view and a clear vision for an implementation strategy they may take longer to implement and theyrsquore less likely to yield the required results To provide motivation consider linking the championrsquos salary directly to sustainability savings or to the increased revenues that result from sustainability efforts

bull Implement internal training and education Educate employees on what to expect and what is expected from them

bull Improve communication Communicate both to employees and to stakeholders outside of the organization

bull Start to think about alternative energy management and control strategies

bull Engage the use of technology and services For companies not sure where to begin a sustainability consultant can assist with program selection as can vendors such as Actuate which has a sustainability management solution in place

Step 5 Get Started

Understand that sustainability development is a business opportunity Donrsquot look at it solely as environmental although that is also important Itrsquos an opportunity for companies to introduce more cost-effective processes and procedures and to become more cost effective in their vehicle fleet manufacturing delivery etc

bull Create globally consistent metrics and goals Large agencies have to make sure that the entire group is on board and that they have consistent metrics and consistent goals across the enterprise

bull Find the value and drive the action What is the value of monitoring these sustainability areas and whatrsquos the course of action if you see that theyrsquore going off kilter or are not tracking as expected

bull Start small Initiatives such as these can become incredibly complex very quickly Start small and build in the complexity with each ensuing project

bull Get buy in People need to understand what the metrics are why theyrsquore there and what they mean to each individualrsquos situation (as reflected in individual bonus plans perhaps) Measure using industry-accepted methodologies and industry-accepted protocols continually improve metrics through optimization and forecasting and constantly optimize metrics and forecast into the future

bull As much as possible accurately report to everybody environmental performance Let employees shareholders customers and regulators know If data is questionable fix it get quality processes in place and then run the metrics

bull Determine environmental impact Has waste been reduced Has resource utilization been reduced Has the company improved environmental factors

Also consider using an Open Source vendor The Open Source community is beginning to develop sustainability metrics and Open Source reduces the costs of developing metrics while software costs for the project are reduced as well

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly ldquo

rdquo What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde ldquo

rdquo

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Vol 6 Issue 2 2009

Step 6 Move from Green Hype to Sustainable Action

A successful sustainability initiative involves identifying metrics that will translate into cost savings and benefits while avoiding metrics that are not likely to yield required results To accomplish this start small start with a small department within the organization and then repeat this continuing to repeat it throughout the enterprise

bull Start with basic conservation Change behavior reduce consumption and in the process increase investment

bull Start reusing Improve productivity improve efficiency and create less waste

bull When this translates into cost savings re-invest Grow make larger improvements and increase involvement

Projects that make good starting points

bull Measure carbon dioxide emissions throughout a value chain or product lifespan Look for potential improvements

bull Ensure regulatory compliance By knowing what the regulations are companies can determine what metrics need to be in place

bull Identify ways to promote and profit from more environmentally-respectful goods and services Companies can promote environmentally-respectful goods and services while also using sustainability to help the company

Monitor the effects of each project to determine which strategies have the most impact both physically in terms of

the environment and financially in terms of revenues and cost savings Publicize how metrics are tracking over time

Actuate for Sustainability Management

Actuate for Sustainability Management is a solution by Actuate that integrates highly interactive visually rich dashboards There are pre-built sustainability scorecards strategy maps and over 100 pre-built metrics across the economic social and environmental aspects of sustainability

The Actuate BIRT Performance Scorecard supports the metrics defined including

bull Reducing an organizationrsquos environmental footprint

bull Building green facilities and buildings

bull Compliance and reporting

bull Manufacturing

bull Community and engagement

bull Human development including employee well-being and satisfaction

Actuate for Sustainability Management provides collaboration across regulators consumers and non-governmental organizations Dashboards and scorecards come integrated with reporting so as to improve reporting to stakeholders both outside and inside of an organization All of the products are built on Actuatersquos dependable cost-effective and scaleable platform

Performance Management solutions help organizations understand act on and influence business decisions processes and measures of business success The 2009 Actuate Performance Management Excellence Awards will honor customer success stories in four key areas Over the next several issues Perform Magazine will highlight some of the entries in these categories

Category 1 Go Green

Each year the concept of environmental responsibility has implications for both the private and public sector specifically with regards to how each measures the performance of their operations For organizations using the Actuate BIRT Performance Scorecard to measure the progress of organizational Green initiatives how have they responded to the challenge and how do they use the BIRT Performance Scorecard to ensure they stay on track

Category 2 The Perfect Slice

Successful Performance Management comes in all sizes Some initiatives are enterprise-wide while others are focused around specific business units or functions yet still encompass a holistic approach to Performance Management by looking beyond financial indicators to a more balanced set of indicators This category includes organizations deploying the Actuate BIRT Performance Scorecard with a focus on improving the performance of individual business units or functions and includes the measurement of people and processes

Category 3 Big Bang

Carefully executed Performance Management initiatives begin with a measured approach to the initial implementation and quickly expand to other parts of the organization aligning business units to strategy at each step This category is open to Actuate customers who initially implemented the Actuate BIRT Performance Scorecard to a limited user community and through careful change management and planning expanded the use of the BIRT Performance Scorecard throughout the organization

Category 4 Super Size

Award-winning enterprises achieve breakthrough results in the financial customer operational and people perspectives of their business and leverage internal champions across the organization to ensure ongoing and sustainable success The key to achieving these results lies in total visibility of all business units aligned to strategy This category is open to any Actuate customer with a fully deployed enterprise-wide Actuate BIRT Performance Scorecard implementation

Actuate Performance Management Excellence Awards2009

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Vol 6 Issue 2 2009

HealthNow New York Inc headquartered in Buffalo is one of New York Statersquos leading healthcare companies doing business as BlueCross BlueShield of Western New York BlueShield of Northeastern New York HealthNow in the Central New York region and Brokerage Concepts Inc in Pennsylvania

Improving the health of people and communities are HealthNowrsquos corporate priorities and for more than 70 years the company has been a proactive partner in health working to improve the quality of care and the quality of life for everyone it serves In 2008 HealthNow provided access to care to more than 820000 members and in 2008 company revenues grew to $227 billion

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution and describe what you were trying to achieve as a group function or department

A few years ago HealthNow New York Inc determined that the key to its continued success would be its ability to differentiate itself from other healthcare plans in ways that could not be readily duplicated or copied by their competitors In an increasingly crowded marketplace to get the attention of new customers and retain existing ones HealthNow needed to set itself apart from others

This lasting competitive advantage needed to come from an organizational culture that was dedicated to a relentless focus on meeting customersrsquo needs It needed to be highly responsive supportive flexible and nimble particularly as the healthcare marketplace continues to change with more responsibility placed upon its customers

To that end a new business model was implemented to provide the framework for customer focus Under the new structure the company was divided into four strategic business units (SBUs) each responsible for financial contribution customer satisfaction medical utilization and market share of a specific book of business

Each SBU includes its own set of functions including sales account and broker management product configuration customer intelligence pricing enrollment and billing customer service medical management and HR support Each business unit is led by an executive who is fully accountable for the unit operations and for bottom-line performance of the entire business unit Each SBU is supported by various corporate support functions (Actuarial IT Legal etc)

Implementation of the new business model began with a reorganization of the senior management structure The senior management of each SBU has specific incentive goals as well as strategic goals aligned with the corporate incentive Those strategic goals then drill down to ldquoteamrdquo incentives and to a blend of strategic and operational goals

This was a completely new way of looking at our business It was a blank slate requiring new processes and new methodology as well as an examination of existing metrics and processes to determine what added value and where the strengths weaknesses opportunities and gaps were

Under this new structure the Government Programs State and Federal products SBU ndash which historically had some inefficient end-to-end processes lacked internal controls and had minimal oversight of financial performance ndash was able to set a foundation and develop a growth strategy In order to achieve this mission and to align track monitor improve and communicate performance the Senior Vice President of the Government Programs SBU elected to utilize a Performance Management framework via the Actuate BIRT Performance Scorecard

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

As a point of reference the Government Programs SBU is comprised of a State Government Programs team a Federal Government Programs team an Operations team and a Sales team The Performance Management design team was comprised of the Actuate system administratorfacilitator the Government Program financial reporting manager and two SBU data analysts Input from the various teamsrsquo management staff was gathered as the design got more granular

Discussions around the design of the Government Programs scorecard began with two basic questions

1 What are the handful (ideally six to eight) of key performance indicators that are necessary to run and manage your business and to indicate that yoursquore on the right path to achieving your goals

Defining the key performance indicators was a challenge that required the Actuate system administrator in a facilitative role to get intimately involved in order to keep the discussions focused and high level and to limit scope creep The incentive goals were clearly defined at the corporate and SBU level however the tough question was how should they drill down in the BIRT Performance Scorecard The facilitator posed the following questions to the other members of the design team

bull How do you usually look at your business

bull How are the primary source documents that capture this information structured

bull What other ways do you look at your business

Taking the answers to these questions a step further the facilitator asked the next question Is the drill-down structure the same for the core strategic or team metrics The answer was yes By taking this approach we were provided with consistency in how the teams look at their business and the performance of their core indicators

Once the incentive and strategic goals were identified more leading and lagging operational measures were defined such as

bull Call centers

bull Accuracy

bull Quality

bull Sales Performance

2 Who is your audience

Through the entire measure selection and definition process the design team was constantly reminded to keep a second question ndash who is your audience ndash in mind This helped keep the focus on the critical few and keep the number of metrics down to a manageable amount Links to supporting documentation were created to provide easy access to the granular data without burdening the scorecardrsquos objective

The audience in this case was the SBUrsquos Senior Vice President followed by the State Director Federal Director Operations Director and Sales General Manager It then cascades down to each directorrsquos management team and the data providers

In order to provide a complete and consistent picture of State and Federal performance for senior management where

gt Performance Management Excellence Awards

HealthNow New YorkCategory 2 Entry The Perfect Slice

gt Performance Management Excellence Awards

[ Figure 131 Homepage Map ]

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Vol 6 Issue 2 2009

possible the same or comparable measures were created for each team For example when looking at the various call center metrics ndash even if the definitions and targets slightly differed ndash if one team was consistently exceeding or meeting their target it sparked group discussion around best practices processes staffing and target definition

Utilization of Maps continues to play a major role in communicating performance Again focusing on our audience there is a Map at the Senior VP level which then links to a high-level Map for the State director and staff and for the Federal director and staff The one-page snapshot allows management to easily view performance then to drill down to specifics via additional detailed Maps or Books Because the audience embraces the Maps concept a ldquoWhere is itrdquo Map containing all Maps and Books by SBU was created Itrsquos a quick and easy reference tool

3 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

Quantitative results are achieved through the promotion of visibility and awareness The Return on Investment may not fit a conventional definition but can be measurable and accomplished by challenging the data targets and accompanying commentaryaction plan narrative to drive performance improvement Are the targets realistic yet aggressive Are action plans being documented and carried out Are the actions discussions and decisions leading to improved performance and processes

Government Programsrsquo membership is measured and monitored in various ways via the BIRT Scorecard and other sources For example Federal membership is measured by product then by plan It is also measured by market then by product then by plan By creatively visualizing performance in multiple ways via a Map those same data results can sometimes become very obvious telling a different story that may not be obvious via standard reporting methods It may clearly illustrate that a specific product in a specific market is continuously under-performing for example Fact-based decisions can then be made as to whether or not to continue with this product in this market or it may initiate discussions as to how to grow and retain profitable membership for this product in this market

Another more recent example is an initiative to track claims-review savings By reviewing claims via various processes what savings can be recouped or realized What specific areas are State and Federal teams focusing on that can contribute to overall savings for the SBU Again where applicable there should be consistency in the metrics across

teams Placeholders are included to promote visibility to keep them in the forefront even though the data or processes may not be in place yet But by capturing results on one page via a Map it bridges potential gaps between the teams promoting awareness and synergy across the SBU

4 Qualitative results What ldquosoftrdquo or intangible benefits has the group department or organization received as a result of this solution

A major benefit of the scorecard framework for the Government Programs SBU has been the identification and alignment of roles responsibilities and accountability

The SBUrsquos Senior VP monthly leadership meeting focuses on four areas

bull Performance Performance is covered via the existing incentive strategic and operational metrics

bull Action plans Documenting action plans in the Performance Management Software Suite versus verbalizing action plans establishes ownership and accountability At subsequent meetings management follows up on key action items or plans to determine whether or not the corrective action did take place and if yes did it have the desired results

bull Strategic direction The strategic direction of the various teams is captured as a springboard to strategic thinking discussions and planning So as not to lose sight of short- and long-term strategic planning this aspect of the business now is housed in the BIRT Scorecard completing the strategic planning of the ldquoHow are we going to get thererdquo and ldquoAre we there yetrdquo cycle This holistic approach helps minimize the chances of our scorecard becoming too focused on operational performance and keeps strategic planning dynamic and visible

The value of these metrics is not in the data but in the commentary The individual teamsrsquo strategic direction ldquometricsrdquo are subjective red = 1 yellow = 2 green = 3 The target = 3 Each metric includes a description of the specific strategic path we need to research or move forward on as well as what goal achievement it supports The ldquodatardquo ndash or color ndash is based on basic questions like What did you hope to achieve this month vs What did you actually achieve this month Were there any successes barriers obstacles In addition to accountability the entire SBU benefits from the sharing of information having meaningful discussion taking appropriate action and collaboration

bull Key initiatives The last critical component is the identification and alignment of key initiatives that

are necessary to support achievement of the various incentives strategic goals and direction and operational goals As with the strategic direction metrics the value is in the narrative with the color reflecting what was accomplished for the specific reporting period

5 Innovation Why should this solution be considered an Innovative Solution What makes it unique groundbreaking and superior What unintended results did you realize

Over time the Government Programs Performance Management framework evolved into an innovative solution The process drives performance and isnrsquot necessarily focused on ldquocolorrdquo Rather itrsquos about having the right people in the same room on a regular basis to drive meaningful discussion and to take appropriate action to improve performance

Outside of the standard processes it was the monthly review process that drove effectiveness revisions enhancements and restructuring of the meeting schedule agenda and format The Government Program financial reporting manager would meet with each director and general manager to review their scorecard for completeness as well as for performance from an operational perspective The State and Federal team directors would then meet with their respective management teams to review and discuss performance results in preparation for the joint Government Programs Leadership Meetings The audience included the Senior VP down to team managers key data analysts (data providers) and support function representatives Through trial and error management learned to maximize their time and effectiveness by concentrating on key metrics and topics rather than trying to review all metrics identify leading indicators versus only outcome results and include strategic thinking and initiatives Today the monthly leadership

meetings are much more productive and look at strategic and operational performance

As involvement and participation increased in the team meetings as well as in the leadership meetings it removed silos opened communications enabled the sharing of information and best practices and promoted teamwork across the SBU But most importantly it brought about an awareness and a sense of unity and commitment within the SBU to achieve their goals something that was lacking before

While it was not part of the initial scope management realized shortly after implementation that efficiencies could be gained by replacing an in-depth hard copy monthly report with BIRT-generated results Since the BIRT Scorecard contained the same data with supporting narrative ndash plus additional metrics with narrative ndash monthly performance was captured via a monthly report Book various Maps and BIRT-generated reports Elimination of the hard-copy report was an unintended way of encouraging a more active use of the Performance Management software by management to monitor performance thereby increasing user familiarity with the contents features functionality and navigation

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

Sustainability is achieved through a continuous process of revisiting the scorecard when there are organizational changes looking at the business direction shifts goal changes process changes etc To ensure that metrics are still relevant a filtering process is held with each director and general manager every six to eight months or as necessary During this exercise questions such as the following are asked

gt Performance Management Excellence Awards gt Performance Management Excellence Awards

[ Figure 132 CEOrsquos Book ]

54

Perform M

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55

Vol 6 Issue 2 2009

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

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Vol 6 Issue 2 2009

3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

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  1. Button 3
Page 22: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

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Vol 6 Issue 2 2009

Out of Touch With Crucial Data

Previously when Helzbergrsquos divisional and regional vice presidents went on the road access to their key performance metrics was restricted Without a laptop and a WiFi or hotel network connection to the internet they were ldquoflying blindrdquo according to Greg Backhus Helzbergrsquos Director of Data Warehouse and Decision Support Systems As a result they did a lot of faxing it was the only way they could get the current data that they needed in order to

About Webalo

Webalo technology transforms enterprise applications and data to make them compatible with mobile

devices This eliminates the need for traditional custom programming reducing the deployment of mobile applications from weeks or months to in most cases less than a day The resulting ldquoanywhere anytime on-demandrdquo availability of enterprise data on handheld devices turns such devices into viable alternatives to desktop laptop and palmtop computer hardware and lets mobile employees work more productively ndash on the spot ndash to solve problems answer questions monitor operations close sales and make informed decisions

The Webalo Mobile Dashboard Service ndash available in both internet-based and enterprise intranet-based implementations ndash lets non-IT business administrators securely specify the content of mobile-accessible information and the companion Webalo Proxy Server configures it in seconds to conform to the native user interface of any BlackBerry Windows Mobile Pocket PC Palm Symbian or Java-enabled smartphone

CLARITY CUT AND CARATSHow Helzberg Diamonds Made Sales Data Clearer Eliminated

Delays and Lightened the Load for its Divisional Executives

A diamond may be forever but a lot has changed in how theyrsquove been marketed and sold during Helzberg Diamondsrsquo nine decades in business A single store has expanded to nearly 300 locations from coast to coast and border to border Sales can also be made online now And information about every sale can be accessed in an instance through the companyrsquos enterprise systems

bull Compare actual sales to their goals and plans

bull Determine transaction counts for total dollar volume and average sales value

bull Break down sales by product category

bull Monitor attachment rates for products and services related to the main product sale

For example onsite at individual stores it was difficult to gauge how an active price-reduction sale was affecting unit and dollar

volumes unless there happened to be a coffee shop next door with a WiFi connection that would let Helzbergrsquos executives access the enterprise system

The Three Cs of Information Access

The three Cs of diamond grading ndash clarity cut and carats (or weight) ndash turned out to be applicable to data access as well But it took a transition to handheld devices and to the Webalo Mobile Dashboard to achieve it

Though laptop computers had gotten lighter and lighter over the years they were still considerably heavier than the Pocket PC-based smartphones that Helzbergrsquos executives used Since they were carrying those handhelds in addition to their laptops the VPs were open to the idea of being able to

bull Access sales metrics on their handhelds

bull Have data available on-demand from any location with a wireless signal

bull Navigate quickly to the figures they needed

bull Get updates to their metrics automatically

bull Review the information offline

It was the only time that carrying less weight ndash or carats ndash added more value Using a simple step-by-step wizard Helzbergrsquos support staff was able to configure their enterprise reports in a matter of hours They then assigned access privileges to each executive to control who could see what information and uploaded the file to the Webalo server That satisfied how data was ldquocutrdquo

For each mobile user regardless of the brand and model of smartphone they used the Webalo Mobile Dashboard conformed the information to the devicesrsquo user interface The application worked and looked exactly like any other application developed specifically for their mobile devices the on-screen text was easy to read and navigation used the same menu structure That meant there was no learning curve to delay user acceptance and productivity Clarity was essential and the Mobile Dashboard delivered it right down to the ability to bookmark commonly-referred-to displays for instant reference enhancing on-the-spot productivity even more

Speed and Simplicity

Productivity was also improved on the IT side Without the need for custom programming to conform the information to each smartphone brand and model deployment was reduced from months to hours

Since adopting the Webalo Mobile Dashboard Backhus says ldquoThe Divisional VPs find it invaluable They get more done because they donrsquot have the delays they used to haverdquo Decisions that used to have to wait for current data are now made right away relying on the right data presented in the right format

44

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Vol 6 Issue 2 2009

Sustainable practice has graduated from being market hype

to becoming a strategic initiative important for driving a successful enterprise It not only reduces a companyrsquos impact on the environment but can help organizations achieve a competitive advantage to build their brand impact top and bottom line and improve customer acquisition satisfaction and retention

Creating a road map towards sustainable management can require an entire shift in corporate thinking one that involves searching for buy-in at all levels establishing useful metrics and introducing practices that get beyond the green hype The end result though is not just a greener organization but also one with a more prosperous future

Why Sustainability

In August 2008 a survey undertaken by CIO Insight examined green practices in business focusing on the reasons why CIOs introduce sustainability efforts into their organizations The number one reason why organizations went green the study found was that the people within those companies sincerely had a concern for the environment A total of 74 percent of respondents answered that way 32 percent of which listed it as their most influential driver

Other influential drivers named in the survey included

Financial Drivers Companies found sustainability to be a way of cutting costs If they could cut energy costs not only would that help the environment but it would also help create cost savings The second most popular answer in the CIO Insight study financial impacts are key to implementing sustainability in most organizations Examples of financial impacts possible from sustainability were presented at CFO

2 The CFO Green

Conference which took place in May 2008

bull Dupont reduced its CO2 emissions by 70 percent saving the company $3 billion

bull FedEx redesigned its delivery trucks making them more aerodynamic This reduced the amount of particulate pollutants nitrogen and carbon the trucks put into the atmosphere and it also reduced the companyrsquos fuel costs exceptionally

Customer Image In the CIO Insight survey the third motive listed by CIOs for introducing sustainability ndash at 64 percent ndash was company image Consumers are becoming more and more aware of whether companies or organizations are living up to sustainability ideals They will notice if a company image or brand value reflects this concern for the environment Meaningful sustainability efforts can help gain customer approval as in the following case

bull Wal-Mart and Procter amp Gamble together agreed to sell liquid laundry detergent only in concentrated form This saved shelf space for Wal-Mart reduced water use by 400 million gallons for Procter amp Gamble and eliminated 45 million pounds of plastic waste

Regulatory Requirements The surveyrsquos fourth most popular reply ndash at only 25 percent ndash were current or potential regulations including the cap and trade systems being implemented which will require companies to buy carbon and sell carbon credits

Shareholder Pressure Finally at fifth in the CIO Insight survey ndash with 14 percent of responses ndash was shareholder or public pressure pressure building from shareholders to put forth sustainability efforts Pressure at this level is often mixed though as shareholders are also likely to express a desire that they donrsquot want shares to decline in value The general message may be that it is fine to introduce sustainability measures only as long as there is no risk that they will hurt the company

A Road Map Towards Sustainability

Step 1 Identify What Drives Your Organization

The first step in the road map towards sustainability is identifying key drivers Some drivers vary from one organization to another while others seem to drive any organization regardless of the industry Drivers incude

Internal drivers

bull Cost cuttings and savings

bull Employees including both the satisfaction of current employees as well as the recruitment and retention of future employees

bull Investment

External Drivers

bull Stakeholders including both those within the company ndash the employees discussed above ndash as well as stakeholders outside of the company

bull Brand awareness because consumers are becoming increasingly aware of the choices that are available to them and are making choices based on a companyrsquos green initiatives

Future drivers

bull Tax incentives

bull The recruitment and retention of future customers

Step 2 Select Your Metrics

In general terms sustainability metrics will fall into one of four major categories those that affect the climate those that affect the oceans those that affect human health and those that affect common issues like the land the water the wildlife etc

Within those large categories are smaller areas of interest that companies must examine to introduce organization-wide sustainability management carbon monoxide use energy consumption water consumption and fuel consumption are prime examples

Carbon Monoxide Use Many of the questions companies are asking themselves in regards to carbon monoxide use include

A Road Map of Key

Sustainability Metrics

That Impact Bottom

Line

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Vol 6 Issue 2 2009

bull How much carbon monoxide do we produce

bull Which processes in our overall manufacturing or delivery use produce the most emissions

bull Can we determine the indirect emissions For example leave a computer plugged in and itrsquos still on the grid creating an indirect carbon dioxide emitter How can we measure that

bull Whatrsquos our cost Do we have metrics that tell us what our CO2 emissions cost us

bull Can we predict into the future If we continue on this path without doing anything where will we be next month Next quarter Next year

Some examples of metrics related to carbon monoxide use include carbon dioxide emissions per employee (similar to revenue per employee) carbon footprint metrics and transportation distances

Energy Consumption Areas of interest related to corporate energy consumption may include the following

bull How much do we consume From what sources

bull Are we on the grid Are we using solar power or wind power or another alternative power

bull How much is used by our data center How do we make the data center greener

bull Where can we reduce consumption

Companies today are reducing energy consumption in a variety of ways by introducing energy audits and looking at energy-saving appliances and also through energy incentive programs for employees within which companies can incentivize and introduce bonus plans

Water Consumption An examination of a companyrsquos water consumption may include some of the following queries

bull How much water do we currently use and where

bull Where in our processes do we use the most water

bull Can we predict how much wersquore going to use in the future

Some of the examples of metrics that companies introduce in terms of water consumption include improved water quality how much impact low-flow or low-volume toilets have on water consumption and how much water is or can be recycled

Fuel Consumption Questions to consider in relation to fuel consumption include

bull How much fuel do we use

bull Where are the inefficiencies

bull Whatrsquos being predicted for fuel usage in the future

bull Can we analyze our logistics so that we can determine how to reduce our fuel consumption For example where are our trucks traveling How are they traveling What kinds of loads are they carrying

Step 3 Recognize Challenges

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly As such easier ways to enhance communication and to increase visibility need to be introduced both inside and outside of an organization

There are also constantly evolving requirements measures and standards of success With everything so new companies are challenged to find ways to compare their sustainability efforts with other organizations The biggest challenge in implementing these processes or attracting metrics may be that they require an entire shift in thinking Additional challenges that exist in the implementation of a sustainability model include

1 Financial concerns Companies must truly see potential for returns on investment or these initiatives can become non-starters or stall

2 Lack of regulatory motivation While not as common as it once was certain organizations arenrsquot motivated to introduce sustainability until government regulations are in place

3 Lack of a formal strategy for sustainability Without a formal strategy it is difficult for companies to determine where they need to go

4 Determining appropriate metrics Companies must choose metrics that are useful demonstrate impact and say something about their own corporate environment

5 Calculating metrics Standard algorithms and calculations exist to calculate metrics but companies must find the appropriate ones and use them

6 Finding quality data to plug into those calculations As in any Business Intelligence project if the quality of the data is questionable then so are the sustainability metrics themselves

7 Determining the scope of the sustainability project The scope is critical Narrow it down to something achievable feasible and useful

Step 4 Learn from Best Practices

What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde

bull Assign an executive champion Without an executive champion to drive the project initiatives are more likely to lack a holistic view and a clear vision for an implementation strategy they may take longer to implement and theyrsquore less likely to yield the required results To provide motivation consider linking the championrsquos salary directly to sustainability savings or to the increased revenues that result from sustainability efforts

bull Implement internal training and education Educate employees on what to expect and what is expected from them

bull Improve communication Communicate both to employees and to stakeholders outside of the organization

bull Start to think about alternative energy management and control strategies

bull Engage the use of technology and services For companies not sure where to begin a sustainability consultant can assist with program selection as can vendors such as Actuate which has a sustainability management solution in place

Step 5 Get Started

Understand that sustainability development is a business opportunity Donrsquot look at it solely as environmental although that is also important Itrsquos an opportunity for companies to introduce more cost-effective processes and procedures and to become more cost effective in their vehicle fleet manufacturing delivery etc

bull Create globally consistent metrics and goals Large agencies have to make sure that the entire group is on board and that they have consistent metrics and consistent goals across the enterprise

bull Find the value and drive the action What is the value of monitoring these sustainability areas and whatrsquos the course of action if you see that theyrsquore going off kilter or are not tracking as expected

bull Start small Initiatives such as these can become incredibly complex very quickly Start small and build in the complexity with each ensuing project

bull Get buy in People need to understand what the metrics are why theyrsquore there and what they mean to each individualrsquos situation (as reflected in individual bonus plans perhaps) Measure using industry-accepted methodologies and industry-accepted protocols continually improve metrics through optimization and forecasting and constantly optimize metrics and forecast into the future

bull As much as possible accurately report to everybody environmental performance Let employees shareholders customers and regulators know If data is questionable fix it get quality processes in place and then run the metrics

bull Determine environmental impact Has waste been reduced Has resource utilization been reduced Has the company improved environmental factors

Also consider using an Open Source vendor The Open Source community is beginning to develop sustainability metrics and Open Source reduces the costs of developing metrics while software costs for the project are reduced as well

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly ldquo

rdquo What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde ldquo

rdquo

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Vol 6 Issue 2 2009

Step 6 Move from Green Hype to Sustainable Action

A successful sustainability initiative involves identifying metrics that will translate into cost savings and benefits while avoiding metrics that are not likely to yield required results To accomplish this start small start with a small department within the organization and then repeat this continuing to repeat it throughout the enterprise

bull Start with basic conservation Change behavior reduce consumption and in the process increase investment

bull Start reusing Improve productivity improve efficiency and create less waste

bull When this translates into cost savings re-invest Grow make larger improvements and increase involvement

Projects that make good starting points

bull Measure carbon dioxide emissions throughout a value chain or product lifespan Look for potential improvements

bull Ensure regulatory compliance By knowing what the regulations are companies can determine what metrics need to be in place

bull Identify ways to promote and profit from more environmentally-respectful goods and services Companies can promote environmentally-respectful goods and services while also using sustainability to help the company

Monitor the effects of each project to determine which strategies have the most impact both physically in terms of

the environment and financially in terms of revenues and cost savings Publicize how metrics are tracking over time

Actuate for Sustainability Management

Actuate for Sustainability Management is a solution by Actuate that integrates highly interactive visually rich dashboards There are pre-built sustainability scorecards strategy maps and over 100 pre-built metrics across the economic social and environmental aspects of sustainability

The Actuate BIRT Performance Scorecard supports the metrics defined including

bull Reducing an organizationrsquos environmental footprint

bull Building green facilities and buildings

bull Compliance and reporting

bull Manufacturing

bull Community and engagement

bull Human development including employee well-being and satisfaction

Actuate for Sustainability Management provides collaboration across regulators consumers and non-governmental organizations Dashboards and scorecards come integrated with reporting so as to improve reporting to stakeholders both outside and inside of an organization All of the products are built on Actuatersquos dependable cost-effective and scaleable platform

Performance Management solutions help organizations understand act on and influence business decisions processes and measures of business success The 2009 Actuate Performance Management Excellence Awards will honor customer success stories in four key areas Over the next several issues Perform Magazine will highlight some of the entries in these categories

Category 1 Go Green

Each year the concept of environmental responsibility has implications for both the private and public sector specifically with regards to how each measures the performance of their operations For organizations using the Actuate BIRT Performance Scorecard to measure the progress of organizational Green initiatives how have they responded to the challenge and how do they use the BIRT Performance Scorecard to ensure they stay on track

Category 2 The Perfect Slice

Successful Performance Management comes in all sizes Some initiatives are enterprise-wide while others are focused around specific business units or functions yet still encompass a holistic approach to Performance Management by looking beyond financial indicators to a more balanced set of indicators This category includes organizations deploying the Actuate BIRT Performance Scorecard with a focus on improving the performance of individual business units or functions and includes the measurement of people and processes

Category 3 Big Bang

Carefully executed Performance Management initiatives begin with a measured approach to the initial implementation and quickly expand to other parts of the organization aligning business units to strategy at each step This category is open to Actuate customers who initially implemented the Actuate BIRT Performance Scorecard to a limited user community and through careful change management and planning expanded the use of the BIRT Performance Scorecard throughout the organization

Category 4 Super Size

Award-winning enterprises achieve breakthrough results in the financial customer operational and people perspectives of their business and leverage internal champions across the organization to ensure ongoing and sustainable success The key to achieving these results lies in total visibility of all business units aligned to strategy This category is open to any Actuate customer with a fully deployed enterprise-wide Actuate BIRT Performance Scorecard implementation

Actuate Performance Management Excellence Awards2009

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HealthNow New York Inc headquartered in Buffalo is one of New York Statersquos leading healthcare companies doing business as BlueCross BlueShield of Western New York BlueShield of Northeastern New York HealthNow in the Central New York region and Brokerage Concepts Inc in Pennsylvania

Improving the health of people and communities are HealthNowrsquos corporate priorities and for more than 70 years the company has been a proactive partner in health working to improve the quality of care and the quality of life for everyone it serves In 2008 HealthNow provided access to care to more than 820000 members and in 2008 company revenues grew to $227 billion

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution and describe what you were trying to achieve as a group function or department

A few years ago HealthNow New York Inc determined that the key to its continued success would be its ability to differentiate itself from other healthcare plans in ways that could not be readily duplicated or copied by their competitors In an increasingly crowded marketplace to get the attention of new customers and retain existing ones HealthNow needed to set itself apart from others

This lasting competitive advantage needed to come from an organizational culture that was dedicated to a relentless focus on meeting customersrsquo needs It needed to be highly responsive supportive flexible and nimble particularly as the healthcare marketplace continues to change with more responsibility placed upon its customers

To that end a new business model was implemented to provide the framework for customer focus Under the new structure the company was divided into four strategic business units (SBUs) each responsible for financial contribution customer satisfaction medical utilization and market share of a specific book of business

Each SBU includes its own set of functions including sales account and broker management product configuration customer intelligence pricing enrollment and billing customer service medical management and HR support Each business unit is led by an executive who is fully accountable for the unit operations and for bottom-line performance of the entire business unit Each SBU is supported by various corporate support functions (Actuarial IT Legal etc)

Implementation of the new business model began with a reorganization of the senior management structure The senior management of each SBU has specific incentive goals as well as strategic goals aligned with the corporate incentive Those strategic goals then drill down to ldquoteamrdquo incentives and to a blend of strategic and operational goals

This was a completely new way of looking at our business It was a blank slate requiring new processes and new methodology as well as an examination of existing metrics and processes to determine what added value and where the strengths weaknesses opportunities and gaps were

Under this new structure the Government Programs State and Federal products SBU ndash which historically had some inefficient end-to-end processes lacked internal controls and had minimal oversight of financial performance ndash was able to set a foundation and develop a growth strategy In order to achieve this mission and to align track monitor improve and communicate performance the Senior Vice President of the Government Programs SBU elected to utilize a Performance Management framework via the Actuate BIRT Performance Scorecard

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

As a point of reference the Government Programs SBU is comprised of a State Government Programs team a Federal Government Programs team an Operations team and a Sales team The Performance Management design team was comprised of the Actuate system administratorfacilitator the Government Program financial reporting manager and two SBU data analysts Input from the various teamsrsquo management staff was gathered as the design got more granular

Discussions around the design of the Government Programs scorecard began with two basic questions

1 What are the handful (ideally six to eight) of key performance indicators that are necessary to run and manage your business and to indicate that yoursquore on the right path to achieving your goals

Defining the key performance indicators was a challenge that required the Actuate system administrator in a facilitative role to get intimately involved in order to keep the discussions focused and high level and to limit scope creep The incentive goals were clearly defined at the corporate and SBU level however the tough question was how should they drill down in the BIRT Performance Scorecard The facilitator posed the following questions to the other members of the design team

bull How do you usually look at your business

bull How are the primary source documents that capture this information structured

bull What other ways do you look at your business

Taking the answers to these questions a step further the facilitator asked the next question Is the drill-down structure the same for the core strategic or team metrics The answer was yes By taking this approach we were provided with consistency in how the teams look at their business and the performance of their core indicators

Once the incentive and strategic goals were identified more leading and lagging operational measures were defined such as

bull Call centers

bull Accuracy

bull Quality

bull Sales Performance

2 Who is your audience

Through the entire measure selection and definition process the design team was constantly reminded to keep a second question ndash who is your audience ndash in mind This helped keep the focus on the critical few and keep the number of metrics down to a manageable amount Links to supporting documentation were created to provide easy access to the granular data without burdening the scorecardrsquos objective

The audience in this case was the SBUrsquos Senior Vice President followed by the State Director Federal Director Operations Director and Sales General Manager It then cascades down to each directorrsquos management team and the data providers

In order to provide a complete and consistent picture of State and Federal performance for senior management where

gt Performance Management Excellence Awards

HealthNow New YorkCategory 2 Entry The Perfect Slice

gt Performance Management Excellence Awards

[ Figure 131 Homepage Map ]

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Vol 6 Issue 2 2009

possible the same or comparable measures were created for each team For example when looking at the various call center metrics ndash even if the definitions and targets slightly differed ndash if one team was consistently exceeding or meeting their target it sparked group discussion around best practices processes staffing and target definition

Utilization of Maps continues to play a major role in communicating performance Again focusing on our audience there is a Map at the Senior VP level which then links to a high-level Map for the State director and staff and for the Federal director and staff The one-page snapshot allows management to easily view performance then to drill down to specifics via additional detailed Maps or Books Because the audience embraces the Maps concept a ldquoWhere is itrdquo Map containing all Maps and Books by SBU was created Itrsquos a quick and easy reference tool

3 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

Quantitative results are achieved through the promotion of visibility and awareness The Return on Investment may not fit a conventional definition but can be measurable and accomplished by challenging the data targets and accompanying commentaryaction plan narrative to drive performance improvement Are the targets realistic yet aggressive Are action plans being documented and carried out Are the actions discussions and decisions leading to improved performance and processes

Government Programsrsquo membership is measured and monitored in various ways via the BIRT Scorecard and other sources For example Federal membership is measured by product then by plan It is also measured by market then by product then by plan By creatively visualizing performance in multiple ways via a Map those same data results can sometimes become very obvious telling a different story that may not be obvious via standard reporting methods It may clearly illustrate that a specific product in a specific market is continuously under-performing for example Fact-based decisions can then be made as to whether or not to continue with this product in this market or it may initiate discussions as to how to grow and retain profitable membership for this product in this market

Another more recent example is an initiative to track claims-review savings By reviewing claims via various processes what savings can be recouped or realized What specific areas are State and Federal teams focusing on that can contribute to overall savings for the SBU Again where applicable there should be consistency in the metrics across

teams Placeholders are included to promote visibility to keep them in the forefront even though the data or processes may not be in place yet But by capturing results on one page via a Map it bridges potential gaps between the teams promoting awareness and synergy across the SBU

4 Qualitative results What ldquosoftrdquo or intangible benefits has the group department or organization received as a result of this solution

A major benefit of the scorecard framework for the Government Programs SBU has been the identification and alignment of roles responsibilities and accountability

The SBUrsquos Senior VP monthly leadership meeting focuses on four areas

bull Performance Performance is covered via the existing incentive strategic and operational metrics

bull Action plans Documenting action plans in the Performance Management Software Suite versus verbalizing action plans establishes ownership and accountability At subsequent meetings management follows up on key action items or plans to determine whether or not the corrective action did take place and if yes did it have the desired results

bull Strategic direction The strategic direction of the various teams is captured as a springboard to strategic thinking discussions and planning So as not to lose sight of short- and long-term strategic planning this aspect of the business now is housed in the BIRT Scorecard completing the strategic planning of the ldquoHow are we going to get thererdquo and ldquoAre we there yetrdquo cycle This holistic approach helps minimize the chances of our scorecard becoming too focused on operational performance and keeps strategic planning dynamic and visible

The value of these metrics is not in the data but in the commentary The individual teamsrsquo strategic direction ldquometricsrdquo are subjective red = 1 yellow = 2 green = 3 The target = 3 Each metric includes a description of the specific strategic path we need to research or move forward on as well as what goal achievement it supports The ldquodatardquo ndash or color ndash is based on basic questions like What did you hope to achieve this month vs What did you actually achieve this month Were there any successes barriers obstacles In addition to accountability the entire SBU benefits from the sharing of information having meaningful discussion taking appropriate action and collaboration

bull Key initiatives The last critical component is the identification and alignment of key initiatives that

are necessary to support achievement of the various incentives strategic goals and direction and operational goals As with the strategic direction metrics the value is in the narrative with the color reflecting what was accomplished for the specific reporting period

5 Innovation Why should this solution be considered an Innovative Solution What makes it unique groundbreaking and superior What unintended results did you realize

Over time the Government Programs Performance Management framework evolved into an innovative solution The process drives performance and isnrsquot necessarily focused on ldquocolorrdquo Rather itrsquos about having the right people in the same room on a regular basis to drive meaningful discussion and to take appropriate action to improve performance

Outside of the standard processes it was the monthly review process that drove effectiveness revisions enhancements and restructuring of the meeting schedule agenda and format The Government Program financial reporting manager would meet with each director and general manager to review their scorecard for completeness as well as for performance from an operational perspective The State and Federal team directors would then meet with their respective management teams to review and discuss performance results in preparation for the joint Government Programs Leadership Meetings The audience included the Senior VP down to team managers key data analysts (data providers) and support function representatives Through trial and error management learned to maximize their time and effectiveness by concentrating on key metrics and topics rather than trying to review all metrics identify leading indicators versus only outcome results and include strategic thinking and initiatives Today the monthly leadership

meetings are much more productive and look at strategic and operational performance

As involvement and participation increased in the team meetings as well as in the leadership meetings it removed silos opened communications enabled the sharing of information and best practices and promoted teamwork across the SBU But most importantly it brought about an awareness and a sense of unity and commitment within the SBU to achieve their goals something that was lacking before

While it was not part of the initial scope management realized shortly after implementation that efficiencies could be gained by replacing an in-depth hard copy monthly report with BIRT-generated results Since the BIRT Scorecard contained the same data with supporting narrative ndash plus additional metrics with narrative ndash monthly performance was captured via a monthly report Book various Maps and BIRT-generated reports Elimination of the hard-copy report was an unintended way of encouraging a more active use of the Performance Management software by management to monitor performance thereby increasing user familiarity with the contents features functionality and navigation

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

Sustainability is achieved through a continuous process of revisiting the scorecard when there are organizational changes looking at the business direction shifts goal changes process changes etc To ensure that metrics are still relevant a filtering process is held with each director and general manager every six to eight months or as necessary During this exercise questions such as the following are asked

gt Performance Management Excellence Awards gt Performance Management Excellence Awards

[ Figure 132 CEOrsquos Book ]

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Vol 6 Issue 2 2009

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

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3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

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  1. Button 3
Page 23: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

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Sustainable practice has graduated from being market hype

to becoming a strategic initiative important for driving a successful enterprise It not only reduces a companyrsquos impact on the environment but can help organizations achieve a competitive advantage to build their brand impact top and bottom line and improve customer acquisition satisfaction and retention

Creating a road map towards sustainable management can require an entire shift in corporate thinking one that involves searching for buy-in at all levels establishing useful metrics and introducing practices that get beyond the green hype The end result though is not just a greener organization but also one with a more prosperous future

Why Sustainability

In August 2008 a survey undertaken by CIO Insight examined green practices in business focusing on the reasons why CIOs introduce sustainability efforts into their organizations The number one reason why organizations went green the study found was that the people within those companies sincerely had a concern for the environment A total of 74 percent of respondents answered that way 32 percent of which listed it as their most influential driver

Other influential drivers named in the survey included

Financial Drivers Companies found sustainability to be a way of cutting costs If they could cut energy costs not only would that help the environment but it would also help create cost savings The second most popular answer in the CIO Insight study financial impacts are key to implementing sustainability in most organizations Examples of financial impacts possible from sustainability were presented at CFO

2 The CFO Green

Conference which took place in May 2008

bull Dupont reduced its CO2 emissions by 70 percent saving the company $3 billion

bull FedEx redesigned its delivery trucks making them more aerodynamic This reduced the amount of particulate pollutants nitrogen and carbon the trucks put into the atmosphere and it also reduced the companyrsquos fuel costs exceptionally

Customer Image In the CIO Insight survey the third motive listed by CIOs for introducing sustainability ndash at 64 percent ndash was company image Consumers are becoming more and more aware of whether companies or organizations are living up to sustainability ideals They will notice if a company image or brand value reflects this concern for the environment Meaningful sustainability efforts can help gain customer approval as in the following case

bull Wal-Mart and Procter amp Gamble together agreed to sell liquid laundry detergent only in concentrated form This saved shelf space for Wal-Mart reduced water use by 400 million gallons for Procter amp Gamble and eliminated 45 million pounds of plastic waste

Regulatory Requirements The surveyrsquos fourth most popular reply ndash at only 25 percent ndash were current or potential regulations including the cap and trade systems being implemented which will require companies to buy carbon and sell carbon credits

Shareholder Pressure Finally at fifth in the CIO Insight survey ndash with 14 percent of responses ndash was shareholder or public pressure pressure building from shareholders to put forth sustainability efforts Pressure at this level is often mixed though as shareholders are also likely to express a desire that they donrsquot want shares to decline in value The general message may be that it is fine to introduce sustainability measures only as long as there is no risk that they will hurt the company

A Road Map Towards Sustainability

Step 1 Identify What Drives Your Organization

The first step in the road map towards sustainability is identifying key drivers Some drivers vary from one organization to another while others seem to drive any organization regardless of the industry Drivers incude

Internal drivers

bull Cost cuttings and savings

bull Employees including both the satisfaction of current employees as well as the recruitment and retention of future employees

bull Investment

External Drivers

bull Stakeholders including both those within the company ndash the employees discussed above ndash as well as stakeholders outside of the company

bull Brand awareness because consumers are becoming increasingly aware of the choices that are available to them and are making choices based on a companyrsquos green initiatives

Future drivers

bull Tax incentives

bull The recruitment and retention of future customers

Step 2 Select Your Metrics

In general terms sustainability metrics will fall into one of four major categories those that affect the climate those that affect the oceans those that affect human health and those that affect common issues like the land the water the wildlife etc

Within those large categories are smaller areas of interest that companies must examine to introduce organization-wide sustainability management carbon monoxide use energy consumption water consumption and fuel consumption are prime examples

Carbon Monoxide Use Many of the questions companies are asking themselves in regards to carbon monoxide use include

A Road Map of Key

Sustainability Metrics

That Impact Bottom

Line

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Vol 6 Issue 2 2009

bull How much carbon monoxide do we produce

bull Which processes in our overall manufacturing or delivery use produce the most emissions

bull Can we determine the indirect emissions For example leave a computer plugged in and itrsquos still on the grid creating an indirect carbon dioxide emitter How can we measure that

bull Whatrsquos our cost Do we have metrics that tell us what our CO2 emissions cost us

bull Can we predict into the future If we continue on this path without doing anything where will we be next month Next quarter Next year

Some examples of metrics related to carbon monoxide use include carbon dioxide emissions per employee (similar to revenue per employee) carbon footprint metrics and transportation distances

Energy Consumption Areas of interest related to corporate energy consumption may include the following

bull How much do we consume From what sources

bull Are we on the grid Are we using solar power or wind power or another alternative power

bull How much is used by our data center How do we make the data center greener

bull Where can we reduce consumption

Companies today are reducing energy consumption in a variety of ways by introducing energy audits and looking at energy-saving appliances and also through energy incentive programs for employees within which companies can incentivize and introduce bonus plans

Water Consumption An examination of a companyrsquos water consumption may include some of the following queries

bull How much water do we currently use and where

bull Where in our processes do we use the most water

bull Can we predict how much wersquore going to use in the future

Some of the examples of metrics that companies introduce in terms of water consumption include improved water quality how much impact low-flow or low-volume toilets have on water consumption and how much water is or can be recycled

Fuel Consumption Questions to consider in relation to fuel consumption include

bull How much fuel do we use

bull Where are the inefficiencies

bull Whatrsquos being predicted for fuel usage in the future

bull Can we analyze our logistics so that we can determine how to reduce our fuel consumption For example where are our trucks traveling How are they traveling What kinds of loads are they carrying

Step 3 Recognize Challenges

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly As such easier ways to enhance communication and to increase visibility need to be introduced both inside and outside of an organization

There are also constantly evolving requirements measures and standards of success With everything so new companies are challenged to find ways to compare their sustainability efforts with other organizations The biggest challenge in implementing these processes or attracting metrics may be that they require an entire shift in thinking Additional challenges that exist in the implementation of a sustainability model include

1 Financial concerns Companies must truly see potential for returns on investment or these initiatives can become non-starters or stall

2 Lack of regulatory motivation While not as common as it once was certain organizations arenrsquot motivated to introduce sustainability until government regulations are in place

3 Lack of a formal strategy for sustainability Without a formal strategy it is difficult for companies to determine where they need to go

4 Determining appropriate metrics Companies must choose metrics that are useful demonstrate impact and say something about their own corporate environment

5 Calculating metrics Standard algorithms and calculations exist to calculate metrics but companies must find the appropriate ones and use them

6 Finding quality data to plug into those calculations As in any Business Intelligence project if the quality of the data is questionable then so are the sustainability metrics themselves

7 Determining the scope of the sustainability project The scope is critical Narrow it down to something achievable feasible and useful

Step 4 Learn from Best Practices

What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde

bull Assign an executive champion Without an executive champion to drive the project initiatives are more likely to lack a holistic view and a clear vision for an implementation strategy they may take longer to implement and theyrsquore less likely to yield the required results To provide motivation consider linking the championrsquos salary directly to sustainability savings or to the increased revenues that result from sustainability efforts

bull Implement internal training and education Educate employees on what to expect and what is expected from them

bull Improve communication Communicate both to employees and to stakeholders outside of the organization

bull Start to think about alternative energy management and control strategies

bull Engage the use of technology and services For companies not sure where to begin a sustainability consultant can assist with program selection as can vendors such as Actuate which has a sustainability management solution in place

Step 5 Get Started

Understand that sustainability development is a business opportunity Donrsquot look at it solely as environmental although that is also important Itrsquos an opportunity for companies to introduce more cost-effective processes and procedures and to become more cost effective in their vehicle fleet manufacturing delivery etc

bull Create globally consistent metrics and goals Large agencies have to make sure that the entire group is on board and that they have consistent metrics and consistent goals across the enterprise

bull Find the value and drive the action What is the value of monitoring these sustainability areas and whatrsquos the course of action if you see that theyrsquore going off kilter or are not tracking as expected

bull Start small Initiatives such as these can become incredibly complex very quickly Start small and build in the complexity with each ensuing project

bull Get buy in People need to understand what the metrics are why theyrsquore there and what they mean to each individualrsquos situation (as reflected in individual bonus plans perhaps) Measure using industry-accepted methodologies and industry-accepted protocols continually improve metrics through optimization and forecasting and constantly optimize metrics and forecast into the future

bull As much as possible accurately report to everybody environmental performance Let employees shareholders customers and regulators know If data is questionable fix it get quality processes in place and then run the metrics

bull Determine environmental impact Has waste been reduced Has resource utilization been reduced Has the company improved environmental factors

Also consider using an Open Source vendor The Open Source community is beginning to develop sustainability metrics and Open Source reduces the costs of developing metrics while software costs for the project are reduced as well

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly ldquo

rdquo What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde ldquo

rdquo

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Step 6 Move from Green Hype to Sustainable Action

A successful sustainability initiative involves identifying metrics that will translate into cost savings and benefits while avoiding metrics that are not likely to yield required results To accomplish this start small start with a small department within the organization and then repeat this continuing to repeat it throughout the enterprise

bull Start with basic conservation Change behavior reduce consumption and in the process increase investment

bull Start reusing Improve productivity improve efficiency and create less waste

bull When this translates into cost savings re-invest Grow make larger improvements and increase involvement

Projects that make good starting points

bull Measure carbon dioxide emissions throughout a value chain or product lifespan Look for potential improvements

bull Ensure regulatory compliance By knowing what the regulations are companies can determine what metrics need to be in place

bull Identify ways to promote and profit from more environmentally-respectful goods and services Companies can promote environmentally-respectful goods and services while also using sustainability to help the company

Monitor the effects of each project to determine which strategies have the most impact both physically in terms of

the environment and financially in terms of revenues and cost savings Publicize how metrics are tracking over time

Actuate for Sustainability Management

Actuate for Sustainability Management is a solution by Actuate that integrates highly interactive visually rich dashboards There are pre-built sustainability scorecards strategy maps and over 100 pre-built metrics across the economic social and environmental aspects of sustainability

The Actuate BIRT Performance Scorecard supports the metrics defined including

bull Reducing an organizationrsquos environmental footprint

bull Building green facilities and buildings

bull Compliance and reporting

bull Manufacturing

bull Community and engagement

bull Human development including employee well-being and satisfaction

Actuate for Sustainability Management provides collaboration across regulators consumers and non-governmental organizations Dashboards and scorecards come integrated with reporting so as to improve reporting to stakeholders both outside and inside of an organization All of the products are built on Actuatersquos dependable cost-effective and scaleable platform

Performance Management solutions help organizations understand act on and influence business decisions processes and measures of business success The 2009 Actuate Performance Management Excellence Awards will honor customer success stories in four key areas Over the next several issues Perform Magazine will highlight some of the entries in these categories

Category 1 Go Green

Each year the concept of environmental responsibility has implications for both the private and public sector specifically with regards to how each measures the performance of their operations For organizations using the Actuate BIRT Performance Scorecard to measure the progress of organizational Green initiatives how have they responded to the challenge and how do they use the BIRT Performance Scorecard to ensure they stay on track

Category 2 The Perfect Slice

Successful Performance Management comes in all sizes Some initiatives are enterprise-wide while others are focused around specific business units or functions yet still encompass a holistic approach to Performance Management by looking beyond financial indicators to a more balanced set of indicators This category includes organizations deploying the Actuate BIRT Performance Scorecard with a focus on improving the performance of individual business units or functions and includes the measurement of people and processes

Category 3 Big Bang

Carefully executed Performance Management initiatives begin with a measured approach to the initial implementation and quickly expand to other parts of the organization aligning business units to strategy at each step This category is open to Actuate customers who initially implemented the Actuate BIRT Performance Scorecard to a limited user community and through careful change management and planning expanded the use of the BIRT Performance Scorecard throughout the organization

Category 4 Super Size

Award-winning enterprises achieve breakthrough results in the financial customer operational and people perspectives of their business and leverage internal champions across the organization to ensure ongoing and sustainable success The key to achieving these results lies in total visibility of all business units aligned to strategy This category is open to any Actuate customer with a fully deployed enterprise-wide Actuate BIRT Performance Scorecard implementation

Actuate Performance Management Excellence Awards2009

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HealthNow New York Inc headquartered in Buffalo is one of New York Statersquos leading healthcare companies doing business as BlueCross BlueShield of Western New York BlueShield of Northeastern New York HealthNow in the Central New York region and Brokerage Concepts Inc in Pennsylvania

Improving the health of people and communities are HealthNowrsquos corporate priorities and for more than 70 years the company has been a proactive partner in health working to improve the quality of care and the quality of life for everyone it serves In 2008 HealthNow provided access to care to more than 820000 members and in 2008 company revenues grew to $227 billion

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution and describe what you were trying to achieve as a group function or department

A few years ago HealthNow New York Inc determined that the key to its continued success would be its ability to differentiate itself from other healthcare plans in ways that could not be readily duplicated or copied by their competitors In an increasingly crowded marketplace to get the attention of new customers and retain existing ones HealthNow needed to set itself apart from others

This lasting competitive advantage needed to come from an organizational culture that was dedicated to a relentless focus on meeting customersrsquo needs It needed to be highly responsive supportive flexible and nimble particularly as the healthcare marketplace continues to change with more responsibility placed upon its customers

To that end a new business model was implemented to provide the framework for customer focus Under the new structure the company was divided into four strategic business units (SBUs) each responsible for financial contribution customer satisfaction medical utilization and market share of a specific book of business

Each SBU includes its own set of functions including sales account and broker management product configuration customer intelligence pricing enrollment and billing customer service medical management and HR support Each business unit is led by an executive who is fully accountable for the unit operations and for bottom-line performance of the entire business unit Each SBU is supported by various corporate support functions (Actuarial IT Legal etc)

Implementation of the new business model began with a reorganization of the senior management structure The senior management of each SBU has specific incentive goals as well as strategic goals aligned with the corporate incentive Those strategic goals then drill down to ldquoteamrdquo incentives and to a blend of strategic and operational goals

This was a completely new way of looking at our business It was a blank slate requiring new processes and new methodology as well as an examination of existing metrics and processes to determine what added value and where the strengths weaknesses opportunities and gaps were

Under this new structure the Government Programs State and Federal products SBU ndash which historically had some inefficient end-to-end processes lacked internal controls and had minimal oversight of financial performance ndash was able to set a foundation and develop a growth strategy In order to achieve this mission and to align track monitor improve and communicate performance the Senior Vice President of the Government Programs SBU elected to utilize a Performance Management framework via the Actuate BIRT Performance Scorecard

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

As a point of reference the Government Programs SBU is comprised of a State Government Programs team a Federal Government Programs team an Operations team and a Sales team The Performance Management design team was comprised of the Actuate system administratorfacilitator the Government Program financial reporting manager and two SBU data analysts Input from the various teamsrsquo management staff was gathered as the design got more granular

Discussions around the design of the Government Programs scorecard began with two basic questions

1 What are the handful (ideally six to eight) of key performance indicators that are necessary to run and manage your business and to indicate that yoursquore on the right path to achieving your goals

Defining the key performance indicators was a challenge that required the Actuate system administrator in a facilitative role to get intimately involved in order to keep the discussions focused and high level and to limit scope creep The incentive goals were clearly defined at the corporate and SBU level however the tough question was how should they drill down in the BIRT Performance Scorecard The facilitator posed the following questions to the other members of the design team

bull How do you usually look at your business

bull How are the primary source documents that capture this information structured

bull What other ways do you look at your business

Taking the answers to these questions a step further the facilitator asked the next question Is the drill-down structure the same for the core strategic or team metrics The answer was yes By taking this approach we were provided with consistency in how the teams look at their business and the performance of their core indicators

Once the incentive and strategic goals were identified more leading and lagging operational measures were defined such as

bull Call centers

bull Accuracy

bull Quality

bull Sales Performance

2 Who is your audience

Through the entire measure selection and definition process the design team was constantly reminded to keep a second question ndash who is your audience ndash in mind This helped keep the focus on the critical few and keep the number of metrics down to a manageable amount Links to supporting documentation were created to provide easy access to the granular data without burdening the scorecardrsquos objective

The audience in this case was the SBUrsquos Senior Vice President followed by the State Director Federal Director Operations Director and Sales General Manager It then cascades down to each directorrsquos management team and the data providers

In order to provide a complete and consistent picture of State and Federal performance for senior management where

gt Performance Management Excellence Awards

HealthNow New YorkCategory 2 Entry The Perfect Slice

gt Performance Management Excellence Awards

[ Figure 131 Homepage Map ]

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Vol 6 Issue 2 2009

possible the same or comparable measures were created for each team For example when looking at the various call center metrics ndash even if the definitions and targets slightly differed ndash if one team was consistently exceeding or meeting their target it sparked group discussion around best practices processes staffing and target definition

Utilization of Maps continues to play a major role in communicating performance Again focusing on our audience there is a Map at the Senior VP level which then links to a high-level Map for the State director and staff and for the Federal director and staff The one-page snapshot allows management to easily view performance then to drill down to specifics via additional detailed Maps or Books Because the audience embraces the Maps concept a ldquoWhere is itrdquo Map containing all Maps and Books by SBU was created Itrsquos a quick and easy reference tool

3 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

Quantitative results are achieved through the promotion of visibility and awareness The Return on Investment may not fit a conventional definition but can be measurable and accomplished by challenging the data targets and accompanying commentaryaction plan narrative to drive performance improvement Are the targets realistic yet aggressive Are action plans being documented and carried out Are the actions discussions and decisions leading to improved performance and processes

Government Programsrsquo membership is measured and monitored in various ways via the BIRT Scorecard and other sources For example Federal membership is measured by product then by plan It is also measured by market then by product then by plan By creatively visualizing performance in multiple ways via a Map those same data results can sometimes become very obvious telling a different story that may not be obvious via standard reporting methods It may clearly illustrate that a specific product in a specific market is continuously under-performing for example Fact-based decisions can then be made as to whether or not to continue with this product in this market or it may initiate discussions as to how to grow and retain profitable membership for this product in this market

Another more recent example is an initiative to track claims-review savings By reviewing claims via various processes what savings can be recouped or realized What specific areas are State and Federal teams focusing on that can contribute to overall savings for the SBU Again where applicable there should be consistency in the metrics across

teams Placeholders are included to promote visibility to keep them in the forefront even though the data or processes may not be in place yet But by capturing results on one page via a Map it bridges potential gaps between the teams promoting awareness and synergy across the SBU

4 Qualitative results What ldquosoftrdquo or intangible benefits has the group department or organization received as a result of this solution

A major benefit of the scorecard framework for the Government Programs SBU has been the identification and alignment of roles responsibilities and accountability

The SBUrsquos Senior VP monthly leadership meeting focuses on four areas

bull Performance Performance is covered via the existing incentive strategic and operational metrics

bull Action plans Documenting action plans in the Performance Management Software Suite versus verbalizing action plans establishes ownership and accountability At subsequent meetings management follows up on key action items or plans to determine whether or not the corrective action did take place and if yes did it have the desired results

bull Strategic direction The strategic direction of the various teams is captured as a springboard to strategic thinking discussions and planning So as not to lose sight of short- and long-term strategic planning this aspect of the business now is housed in the BIRT Scorecard completing the strategic planning of the ldquoHow are we going to get thererdquo and ldquoAre we there yetrdquo cycle This holistic approach helps minimize the chances of our scorecard becoming too focused on operational performance and keeps strategic planning dynamic and visible

The value of these metrics is not in the data but in the commentary The individual teamsrsquo strategic direction ldquometricsrdquo are subjective red = 1 yellow = 2 green = 3 The target = 3 Each metric includes a description of the specific strategic path we need to research or move forward on as well as what goal achievement it supports The ldquodatardquo ndash or color ndash is based on basic questions like What did you hope to achieve this month vs What did you actually achieve this month Were there any successes barriers obstacles In addition to accountability the entire SBU benefits from the sharing of information having meaningful discussion taking appropriate action and collaboration

bull Key initiatives The last critical component is the identification and alignment of key initiatives that

are necessary to support achievement of the various incentives strategic goals and direction and operational goals As with the strategic direction metrics the value is in the narrative with the color reflecting what was accomplished for the specific reporting period

5 Innovation Why should this solution be considered an Innovative Solution What makes it unique groundbreaking and superior What unintended results did you realize

Over time the Government Programs Performance Management framework evolved into an innovative solution The process drives performance and isnrsquot necessarily focused on ldquocolorrdquo Rather itrsquos about having the right people in the same room on a regular basis to drive meaningful discussion and to take appropriate action to improve performance

Outside of the standard processes it was the monthly review process that drove effectiveness revisions enhancements and restructuring of the meeting schedule agenda and format The Government Program financial reporting manager would meet with each director and general manager to review their scorecard for completeness as well as for performance from an operational perspective The State and Federal team directors would then meet with their respective management teams to review and discuss performance results in preparation for the joint Government Programs Leadership Meetings The audience included the Senior VP down to team managers key data analysts (data providers) and support function representatives Through trial and error management learned to maximize their time and effectiveness by concentrating on key metrics and topics rather than trying to review all metrics identify leading indicators versus only outcome results and include strategic thinking and initiatives Today the monthly leadership

meetings are much more productive and look at strategic and operational performance

As involvement and participation increased in the team meetings as well as in the leadership meetings it removed silos opened communications enabled the sharing of information and best practices and promoted teamwork across the SBU But most importantly it brought about an awareness and a sense of unity and commitment within the SBU to achieve their goals something that was lacking before

While it was not part of the initial scope management realized shortly after implementation that efficiencies could be gained by replacing an in-depth hard copy monthly report with BIRT-generated results Since the BIRT Scorecard contained the same data with supporting narrative ndash plus additional metrics with narrative ndash monthly performance was captured via a monthly report Book various Maps and BIRT-generated reports Elimination of the hard-copy report was an unintended way of encouraging a more active use of the Performance Management software by management to monitor performance thereby increasing user familiarity with the contents features functionality and navigation

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

Sustainability is achieved through a continuous process of revisiting the scorecard when there are organizational changes looking at the business direction shifts goal changes process changes etc To ensure that metrics are still relevant a filtering process is held with each director and general manager every six to eight months or as necessary During this exercise questions such as the following are asked

gt Performance Management Excellence Awards gt Performance Management Excellence Awards

[ Figure 132 CEOrsquos Book ]

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Vol 6 Issue 2 2009

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

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3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

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  1. Button 3
Page 24: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

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bull How much carbon monoxide do we produce

bull Which processes in our overall manufacturing or delivery use produce the most emissions

bull Can we determine the indirect emissions For example leave a computer plugged in and itrsquos still on the grid creating an indirect carbon dioxide emitter How can we measure that

bull Whatrsquos our cost Do we have metrics that tell us what our CO2 emissions cost us

bull Can we predict into the future If we continue on this path without doing anything where will we be next month Next quarter Next year

Some examples of metrics related to carbon monoxide use include carbon dioxide emissions per employee (similar to revenue per employee) carbon footprint metrics and transportation distances

Energy Consumption Areas of interest related to corporate energy consumption may include the following

bull How much do we consume From what sources

bull Are we on the grid Are we using solar power or wind power or another alternative power

bull How much is used by our data center How do we make the data center greener

bull Where can we reduce consumption

Companies today are reducing energy consumption in a variety of ways by introducing energy audits and looking at energy-saving appliances and also through energy incentive programs for employees within which companies can incentivize and introduce bonus plans

Water Consumption An examination of a companyrsquos water consumption may include some of the following queries

bull How much water do we currently use and where

bull Where in our processes do we use the most water

bull Can we predict how much wersquore going to use in the future

Some of the examples of metrics that companies introduce in terms of water consumption include improved water quality how much impact low-flow or low-volume toilets have on water consumption and how much water is or can be recycled

Fuel Consumption Questions to consider in relation to fuel consumption include

bull How much fuel do we use

bull Where are the inefficiencies

bull Whatrsquos being predicted for fuel usage in the future

bull Can we analyze our logistics so that we can determine how to reduce our fuel consumption For example where are our trucks traveling How are they traveling What kinds of loads are they carrying

Step 3 Recognize Challenges

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly As such easier ways to enhance communication and to increase visibility need to be introduced both inside and outside of an organization

There are also constantly evolving requirements measures and standards of success With everything so new companies are challenged to find ways to compare their sustainability efforts with other organizations The biggest challenge in implementing these processes or attracting metrics may be that they require an entire shift in thinking Additional challenges that exist in the implementation of a sustainability model include

1 Financial concerns Companies must truly see potential for returns on investment or these initiatives can become non-starters or stall

2 Lack of regulatory motivation While not as common as it once was certain organizations arenrsquot motivated to introduce sustainability until government regulations are in place

3 Lack of a formal strategy for sustainability Without a formal strategy it is difficult for companies to determine where they need to go

4 Determining appropriate metrics Companies must choose metrics that are useful demonstrate impact and say something about their own corporate environment

5 Calculating metrics Standard algorithms and calculations exist to calculate metrics but companies must find the appropriate ones and use them

6 Finding quality data to plug into those calculations As in any Business Intelligence project if the quality of the data is questionable then so are the sustainability metrics themselves

7 Determining the scope of the sustainability project The scope is critical Narrow it down to something achievable feasible and useful

Step 4 Learn from Best Practices

What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde

bull Assign an executive champion Without an executive champion to drive the project initiatives are more likely to lack a holistic view and a clear vision for an implementation strategy they may take longer to implement and theyrsquore less likely to yield the required results To provide motivation consider linking the championrsquos salary directly to sustainability savings or to the increased revenues that result from sustainability efforts

bull Implement internal training and education Educate employees on what to expect and what is expected from them

bull Improve communication Communicate both to employees and to stakeholders outside of the organization

bull Start to think about alternative energy management and control strategies

bull Engage the use of technology and services For companies not sure where to begin a sustainability consultant can assist with program selection as can vendors such as Actuate which has a sustainability management solution in place

Step 5 Get Started

Understand that sustainability development is a business opportunity Donrsquot look at it solely as environmental although that is also important Itrsquos an opportunity for companies to introduce more cost-effective processes and procedures and to become more cost effective in their vehicle fleet manufacturing delivery etc

bull Create globally consistent metrics and goals Large agencies have to make sure that the entire group is on board and that they have consistent metrics and consistent goals across the enterprise

bull Find the value and drive the action What is the value of monitoring these sustainability areas and whatrsquos the course of action if you see that theyrsquore going off kilter or are not tracking as expected

bull Start small Initiatives such as these can become incredibly complex very quickly Start small and build in the complexity with each ensuing project

bull Get buy in People need to understand what the metrics are why theyrsquore there and what they mean to each individualrsquos situation (as reflected in individual bonus plans perhaps) Measure using industry-accepted methodologies and industry-accepted protocols continually improve metrics through optimization and forecasting and constantly optimize metrics and forecast into the future

bull As much as possible accurately report to everybody environmental performance Let employees shareholders customers and regulators know If data is questionable fix it get quality processes in place and then run the metrics

bull Determine environmental impact Has waste been reduced Has resource utilization been reduced Has the company improved environmental factors

Also consider using an Open Source vendor The Open Source community is beginning to develop sustainability metrics and Open Source reduces the costs of developing metrics while software costs for the project are reduced as well

Sustainability management is requiring new choices and new ways of thinking Not a lot of information is available which means companies must be able to adopt new ideas and to adapt to new trends quickly ldquo

rdquo What often helps companies overcome challenges is borrowing from the knowledge of experts While sustainability management is a new field best practices are already being established by the green avant-garde ldquo

rdquo

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Step 6 Move from Green Hype to Sustainable Action

A successful sustainability initiative involves identifying metrics that will translate into cost savings and benefits while avoiding metrics that are not likely to yield required results To accomplish this start small start with a small department within the organization and then repeat this continuing to repeat it throughout the enterprise

bull Start with basic conservation Change behavior reduce consumption and in the process increase investment

bull Start reusing Improve productivity improve efficiency and create less waste

bull When this translates into cost savings re-invest Grow make larger improvements and increase involvement

Projects that make good starting points

bull Measure carbon dioxide emissions throughout a value chain or product lifespan Look for potential improvements

bull Ensure regulatory compliance By knowing what the regulations are companies can determine what metrics need to be in place

bull Identify ways to promote and profit from more environmentally-respectful goods and services Companies can promote environmentally-respectful goods and services while also using sustainability to help the company

Monitor the effects of each project to determine which strategies have the most impact both physically in terms of

the environment and financially in terms of revenues and cost savings Publicize how metrics are tracking over time

Actuate for Sustainability Management

Actuate for Sustainability Management is a solution by Actuate that integrates highly interactive visually rich dashboards There are pre-built sustainability scorecards strategy maps and over 100 pre-built metrics across the economic social and environmental aspects of sustainability

The Actuate BIRT Performance Scorecard supports the metrics defined including

bull Reducing an organizationrsquos environmental footprint

bull Building green facilities and buildings

bull Compliance and reporting

bull Manufacturing

bull Community and engagement

bull Human development including employee well-being and satisfaction

Actuate for Sustainability Management provides collaboration across regulators consumers and non-governmental organizations Dashboards and scorecards come integrated with reporting so as to improve reporting to stakeholders both outside and inside of an organization All of the products are built on Actuatersquos dependable cost-effective and scaleable platform

Performance Management solutions help organizations understand act on and influence business decisions processes and measures of business success The 2009 Actuate Performance Management Excellence Awards will honor customer success stories in four key areas Over the next several issues Perform Magazine will highlight some of the entries in these categories

Category 1 Go Green

Each year the concept of environmental responsibility has implications for both the private and public sector specifically with regards to how each measures the performance of their operations For organizations using the Actuate BIRT Performance Scorecard to measure the progress of organizational Green initiatives how have they responded to the challenge and how do they use the BIRT Performance Scorecard to ensure they stay on track

Category 2 The Perfect Slice

Successful Performance Management comes in all sizes Some initiatives are enterprise-wide while others are focused around specific business units or functions yet still encompass a holistic approach to Performance Management by looking beyond financial indicators to a more balanced set of indicators This category includes organizations deploying the Actuate BIRT Performance Scorecard with a focus on improving the performance of individual business units or functions and includes the measurement of people and processes

Category 3 Big Bang

Carefully executed Performance Management initiatives begin with a measured approach to the initial implementation and quickly expand to other parts of the organization aligning business units to strategy at each step This category is open to Actuate customers who initially implemented the Actuate BIRT Performance Scorecard to a limited user community and through careful change management and planning expanded the use of the BIRT Performance Scorecard throughout the organization

Category 4 Super Size

Award-winning enterprises achieve breakthrough results in the financial customer operational and people perspectives of their business and leverage internal champions across the organization to ensure ongoing and sustainable success The key to achieving these results lies in total visibility of all business units aligned to strategy This category is open to any Actuate customer with a fully deployed enterprise-wide Actuate BIRT Performance Scorecard implementation

Actuate Performance Management Excellence Awards2009

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HealthNow New York Inc headquartered in Buffalo is one of New York Statersquos leading healthcare companies doing business as BlueCross BlueShield of Western New York BlueShield of Northeastern New York HealthNow in the Central New York region and Brokerage Concepts Inc in Pennsylvania

Improving the health of people and communities are HealthNowrsquos corporate priorities and for more than 70 years the company has been a proactive partner in health working to improve the quality of care and the quality of life for everyone it serves In 2008 HealthNow provided access to care to more than 820000 members and in 2008 company revenues grew to $227 billion

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution and describe what you were trying to achieve as a group function or department

A few years ago HealthNow New York Inc determined that the key to its continued success would be its ability to differentiate itself from other healthcare plans in ways that could not be readily duplicated or copied by their competitors In an increasingly crowded marketplace to get the attention of new customers and retain existing ones HealthNow needed to set itself apart from others

This lasting competitive advantage needed to come from an organizational culture that was dedicated to a relentless focus on meeting customersrsquo needs It needed to be highly responsive supportive flexible and nimble particularly as the healthcare marketplace continues to change with more responsibility placed upon its customers

To that end a new business model was implemented to provide the framework for customer focus Under the new structure the company was divided into four strategic business units (SBUs) each responsible for financial contribution customer satisfaction medical utilization and market share of a specific book of business

Each SBU includes its own set of functions including sales account and broker management product configuration customer intelligence pricing enrollment and billing customer service medical management and HR support Each business unit is led by an executive who is fully accountable for the unit operations and for bottom-line performance of the entire business unit Each SBU is supported by various corporate support functions (Actuarial IT Legal etc)

Implementation of the new business model began with a reorganization of the senior management structure The senior management of each SBU has specific incentive goals as well as strategic goals aligned with the corporate incentive Those strategic goals then drill down to ldquoteamrdquo incentives and to a blend of strategic and operational goals

This was a completely new way of looking at our business It was a blank slate requiring new processes and new methodology as well as an examination of existing metrics and processes to determine what added value and where the strengths weaknesses opportunities and gaps were

Under this new structure the Government Programs State and Federal products SBU ndash which historically had some inefficient end-to-end processes lacked internal controls and had minimal oversight of financial performance ndash was able to set a foundation and develop a growth strategy In order to achieve this mission and to align track monitor improve and communicate performance the Senior Vice President of the Government Programs SBU elected to utilize a Performance Management framework via the Actuate BIRT Performance Scorecard

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

As a point of reference the Government Programs SBU is comprised of a State Government Programs team a Federal Government Programs team an Operations team and a Sales team The Performance Management design team was comprised of the Actuate system administratorfacilitator the Government Program financial reporting manager and two SBU data analysts Input from the various teamsrsquo management staff was gathered as the design got more granular

Discussions around the design of the Government Programs scorecard began with two basic questions

1 What are the handful (ideally six to eight) of key performance indicators that are necessary to run and manage your business and to indicate that yoursquore on the right path to achieving your goals

Defining the key performance indicators was a challenge that required the Actuate system administrator in a facilitative role to get intimately involved in order to keep the discussions focused and high level and to limit scope creep The incentive goals were clearly defined at the corporate and SBU level however the tough question was how should they drill down in the BIRT Performance Scorecard The facilitator posed the following questions to the other members of the design team

bull How do you usually look at your business

bull How are the primary source documents that capture this information structured

bull What other ways do you look at your business

Taking the answers to these questions a step further the facilitator asked the next question Is the drill-down structure the same for the core strategic or team metrics The answer was yes By taking this approach we were provided with consistency in how the teams look at their business and the performance of their core indicators

Once the incentive and strategic goals were identified more leading and lagging operational measures were defined such as

bull Call centers

bull Accuracy

bull Quality

bull Sales Performance

2 Who is your audience

Through the entire measure selection and definition process the design team was constantly reminded to keep a second question ndash who is your audience ndash in mind This helped keep the focus on the critical few and keep the number of metrics down to a manageable amount Links to supporting documentation were created to provide easy access to the granular data without burdening the scorecardrsquos objective

The audience in this case was the SBUrsquos Senior Vice President followed by the State Director Federal Director Operations Director and Sales General Manager It then cascades down to each directorrsquos management team and the data providers

In order to provide a complete and consistent picture of State and Federal performance for senior management where

gt Performance Management Excellence Awards

HealthNow New YorkCategory 2 Entry The Perfect Slice

gt Performance Management Excellence Awards

[ Figure 131 Homepage Map ]

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Vol 6 Issue 2 2009

possible the same or comparable measures were created for each team For example when looking at the various call center metrics ndash even if the definitions and targets slightly differed ndash if one team was consistently exceeding or meeting their target it sparked group discussion around best practices processes staffing and target definition

Utilization of Maps continues to play a major role in communicating performance Again focusing on our audience there is a Map at the Senior VP level which then links to a high-level Map for the State director and staff and for the Federal director and staff The one-page snapshot allows management to easily view performance then to drill down to specifics via additional detailed Maps or Books Because the audience embraces the Maps concept a ldquoWhere is itrdquo Map containing all Maps and Books by SBU was created Itrsquos a quick and easy reference tool

3 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

Quantitative results are achieved through the promotion of visibility and awareness The Return on Investment may not fit a conventional definition but can be measurable and accomplished by challenging the data targets and accompanying commentaryaction plan narrative to drive performance improvement Are the targets realistic yet aggressive Are action plans being documented and carried out Are the actions discussions and decisions leading to improved performance and processes

Government Programsrsquo membership is measured and monitored in various ways via the BIRT Scorecard and other sources For example Federal membership is measured by product then by plan It is also measured by market then by product then by plan By creatively visualizing performance in multiple ways via a Map those same data results can sometimes become very obvious telling a different story that may not be obvious via standard reporting methods It may clearly illustrate that a specific product in a specific market is continuously under-performing for example Fact-based decisions can then be made as to whether or not to continue with this product in this market or it may initiate discussions as to how to grow and retain profitable membership for this product in this market

Another more recent example is an initiative to track claims-review savings By reviewing claims via various processes what savings can be recouped or realized What specific areas are State and Federal teams focusing on that can contribute to overall savings for the SBU Again where applicable there should be consistency in the metrics across

teams Placeholders are included to promote visibility to keep them in the forefront even though the data or processes may not be in place yet But by capturing results on one page via a Map it bridges potential gaps between the teams promoting awareness and synergy across the SBU

4 Qualitative results What ldquosoftrdquo or intangible benefits has the group department or organization received as a result of this solution

A major benefit of the scorecard framework for the Government Programs SBU has been the identification and alignment of roles responsibilities and accountability

The SBUrsquos Senior VP monthly leadership meeting focuses on four areas

bull Performance Performance is covered via the existing incentive strategic and operational metrics

bull Action plans Documenting action plans in the Performance Management Software Suite versus verbalizing action plans establishes ownership and accountability At subsequent meetings management follows up on key action items or plans to determine whether or not the corrective action did take place and if yes did it have the desired results

bull Strategic direction The strategic direction of the various teams is captured as a springboard to strategic thinking discussions and planning So as not to lose sight of short- and long-term strategic planning this aspect of the business now is housed in the BIRT Scorecard completing the strategic planning of the ldquoHow are we going to get thererdquo and ldquoAre we there yetrdquo cycle This holistic approach helps minimize the chances of our scorecard becoming too focused on operational performance and keeps strategic planning dynamic and visible

The value of these metrics is not in the data but in the commentary The individual teamsrsquo strategic direction ldquometricsrdquo are subjective red = 1 yellow = 2 green = 3 The target = 3 Each metric includes a description of the specific strategic path we need to research or move forward on as well as what goal achievement it supports The ldquodatardquo ndash or color ndash is based on basic questions like What did you hope to achieve this month vs What did you actually achieve this month Were there any successes barriers obstacles In addition to accountability the entire SBU benefits from the sharing of information having meaningful discussion taking appropriate action and collaboration

bull Key initiatives The last critical component is the identification and alignment of key initiatives that

are necessary to support achievement of the various incentives strategic goals and direction and operational goals As with the strategic direction metrics the value is in the narrative with the color reflecting what was accomplished for the specific reporting period

5 Innovation Why should this solution be considered an Innovative Solution What makes it unique groundbreaking and superior What unintended results did you realize

Over time the Government Programs Performance Management framework evolved into an innovative solution The process drives performance and isnrsquot necessarily focused on ldquocolorrdquo Rather itrsquos about having the right people in the same room on a regular basis to drive meaningful discussion and to take appropriate action to improve performance

Outside of the standard processes it was the monthly review process that drove effectiveness revisions enhancements and restructuring of the meeting schedule agenda and format The Government Program financial reporting manager would meet with each director and general manager to review their scorecard for completeness as well as for performance from an operational perspective The State and Federal team directors would then meet with their respective management teams to review and discuss performance results in preparation for the joint Government Programs Leadership Meetings The audience included the Senior VP down to team managers key data analysts (data providers) and support function representatives Through trial and error management learned to maximize their time and effectiveness by concentrating on key metrics and topics rather than trying to review all metrics identify leading indicators versus only outcome results and include strategic thinking and initiatives Today the monthly leadership

meetings are much more productive and look at strategic and operational performance

As involvement and participation increased in the team meetings as well as in the leadership meetings it removed silos opened communications enabled the sharing of information and best practices and promoted teamwork across the SBU But most importantly it brought about an awareness and a sense of unity and commitment within the SBU to achieve their goals something that was lacking before

While it was not part of the initial scope management realized shortly after implementation that efficiencies could be gained by replacing an in-depth hard copy monthly report with BIRT-generated results Since the BIRT Scorecard contained the same data with supporting narrative ndash plus additional metrics with narrative ndash monthly performance was captured via a monthly report Book various Maps and BIRT-generated reports Elimination of the hard-copy report was an unintended way of encouraging a more active use of the Performance Management software by management to monitor performance thereby increasing user familiarity with the contents features functionality and navigation

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

Sustainability is achieved through a continuous process of revisiting the scorecard when there are organizational changes looking at the business direction shifts goal changes process changes etc To ensure that metrics are still relevant a filtering process is held with each director and general manager every six to eight months or as necessary During this exercise questions such as the following are asked

gt Performance Management Excellence Awards gt Performance Management Excellence Awards

[ Figure 132 CEOrsquos Book ]

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Vol 6 Issue 2 2009

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

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3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

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  1. Button 3
Page 25: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

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Step 6 Move from Green Hype to Sustainable Action

A successful sustainability initiative involves identifying metrics that will translate into cost savings and benefits while avoiding metrics that are not likely to yield required results To accomplish this start small start with a small department within the organization and then repeat this continuing to repeat it throughout the enterprise

bull Start with basic conservation Change behavior reduce consumption and in the process increase investment

bull Start reusing Improve productivity improve efficiency and create less waste

bull When this translates into cost savings re-invest Grow make larger improvements and increase involvement

Projects that make good starting points

bull Measure carbon dioxide emissions throughout a value chain or product lifespan Look for potential improvements

bull Ensure regulatory compliance By knowing what the regulations are companies can determine what metrics need to be in place

bull Identify ways to promote and profit from more environmentally-respectful goods and services Companies can promote environmentally-respectful goods and services while also using sustainability to help the company

Monitor the effects of each project to determine which strategies have the most impact both physically in terms of

the environment and financially in terms of revenues and cost savings Publicize how metrics are tracking over time

Actuate for Sustainability Management

Actuate for Sustainability Management is a solution by Actuate that integrates highly interactive visually rich dashboards There are pre-built sustainability scorecards strategy maps and over 100 pre-built metrics across the economic social and environmental aspects of sustainability

The Actuate BIRT Performance Scorecard supports the metrics defined including

bull Reducing an organizationrsquos environmental footprint

bull Building green facilities and buildings

bull Compliance and reporting

bull Manufacturing

bull Community and engagement

bull Human development including employee well-being and satisfaction

Actuate for Sustainability Management provides collaboration across regulators consumers and non-governmental organizations Dashboards and scorecards come integrated with reporting so as to improve reporting to stakeholders both outside and inside of an organization All of the products are built on Actuatersquos dependable cost-effective and scaleable platform

Performance Management solutions help organizations understand act on and influence business decisions processes and measures of business success The 2009 Actuate Performance Management Excellence Awards will honor customer success stories in four key areas Over the next several issues Perform Magazine will highlight some of the entries in these categories

Category 1 Go Green

Each year the concept of environmental responsibility has implications for both the private and public sector specifically with regards to how each measures the performance of their operations For organizations using the Actuate BIRT Performance Scorecard to measure the progress of organizational Green initiatives how have they responded to the challenge and how do they use the BIRT Performance Scorecard to ensure they stay on track

Category 2 The Perfect Slice

Successful Performance Management comes in all sizes Some initiatives are enterprise-wide while others are focused around specific business units or functions yet still encompass a holistic approach to Performance Management by looking beyond financial indicators to a more balanced set of indicators This category includes organizations deploying the Actuate BIRT Performance Scorecard with a focus on improving the performance of individual business units or functions and includes the measurement of people and processes

Category 3 Big Bang

Carefully executed Performance Management initiatives begin with a measured approach to the initial implementation and quickly expand to other parts of the organization aligning business units to strategy at each step This category is open to Actuate customers who initially implemented the Actuate BIRT Performance Scorecard to a limited user community and through careful change management and planning expanded the use of the BIRT Performance Scorecard throughout the organization

Category 4 Super Size

Award-winning enterprises achieve breakthrough results in the financial customer operational and people perspectives of their business and leverage internal champions across the organization to ensure ongoing and sustainable success The key to achieving these results lies in total visibility of all business units aligned to strategy This category is open to any Actuate customer with a fully deployed enterprise-wide Actuate BIRT Performance Scorecard implementation

Actuate Performance Management Excellence Awards2009

50

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Vol 6 Issue 2 2009

HealthNow New York Inc headquartered in Buffalo is one of New York Statersquos leading healthcare companies doing business as BlueCross BlueShield of Western New York BlueShield of Northeastern New York HealthNow in the Central New York region and Brokerage Concepts Inc in Pennsylvania

Improving the health of people and communities are HealthNowrsquos corporate priorities and for more than 70 years the company has been a proactive partner in health working to improve the quality of care and the quality of life for everyone it serves In 2008 HealthNow provided access to care to more than 820000 members and in 2008 company revenues grew to $227 billion

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution and describe what you were trying to achieve as a group function or department

A few years ago HealthNow New York Inc determined that the key to its continued success would be its ability to differentiate itself from other healthcare plans in ways that could not be readily duplicated or copied by their competitors In an increasingly crowded marketplace to get the attention of new customers and retain existing ones HealthNow needed to set itself apart from others

This lasting competitive advantage needed to come from an organizational culture that was dedicated to a relentless focus on meeting customersrsquo needs It needed to be highly responsive supportive flexible and nimble particularly as the healthcare marketplace continues to change with more responsibility placed upon its customers

To that end a new business model was implemented to provide the framework for customer focus Under the new structure the company was divided into four strategic business units (SBUs) each responsible for financial contribution customer satisfaction medical utilization and market share of a specific book of business

Each SBU includes its own set of functions including sales account and broker management product configuration customer intelligence pricing enrollment and billing customer service medical management and HR support Each business unit is led by an executive who is fully accountable for the unit operations and for bottom-line performance of the entire business unit Each SBU is supported by various corporate support functions (Actuarial IT Legal etc)

Implementation of the new business model began with a reorganization of the senior management structure The senior management of each SBU has specific incentive goals as well as strategic goals aligned with the corporate incentive Those strategic goals then drill down to ldquoteamrdquo incentives and to a blend of strategic and operational goals

This was a completely new way of looking at our business It was a blank slate requiring new processes and new methodology as well as an examination of existing metrics and processes to determine what added value and where the strengths weaknesses opportunities and gaps were

Under this new structure the Government Programs State and Federal products SBU ndash which historically had some inefficient end-to-end processes lacked internal controls and had minimal oversight of financial performance ndash was able to set a foundation and develop a growth strategy In order to achieve this mission and to align track monitor improve and communicate performance the Senior Vice President of the Government Programs SBU elected to utilize a Performance Management framework via the Actuate BIRT Performance Scorecard

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

As a point of reference the Government Programs SBU is comprised of a State Government Programs team a Federal Government Programs team an Operations team and a Sales team The Performance Management design team was comprised of the Actuate system administratorfacilitator the Government Program financial reporting manager and two SBU data analysts Input from the various teamsrsquo management staff was gathered as the design got more granular

Discussions around the design of the Government Programs scorecard began with two basic questions

1 What are the handful (ideally six to eight) of key performance indicators that are necessary to run and manage your business and to indicate that yoursquore on the right path to achieving your goals

Defining the key performance indicators was a challenge that required the Actuate system administrator in a facilitative role to get intimately involved in order to keep the discussions focused and high level and to limit scope creep The incentive goals were clearly defined at the corporate and SBU level however the tough question was how should they drill down in the BIRT Performance Scorecard The facilitator posed the following questions to the other members of the design team

bull How do you usually look at your business

bull How are the primary source documents that capture this information structured

bull What other ways do you look at your business

Taking the answers to these questions a step further the facilitator asked the next question Is the drill-down structure the same for the core strategic or team metrics The answer was yes By taking this approach we were provided with consistency in how the teams look at their business and the performance of their core indicators

Once the incentive and strategic goals were identified more leading and lagging operational measures were defined such as

bull Call centers

bull Accuracy

bull Quality

bull Sales Performance

2 Who is your audience

Through the entire measure selection and definition process the design team was constantly reminded to keep a second question ndash who is your audience ndash in mind This helped keep the focus on the critical few and keep the number of metrics down to a manageable amount Links to supporting documentation were created to provide easy access to the granular data without burdening the scorecardrsquos objective

The audience in this case was the SBUrsquos Senior Vice President followed by the State Director Federal Director Operations Director and Sales General Manager It then cascades down to each directorrsquos management team and the data providers

In order to provide a complete and consistent picture of State and Federal performance for senior management where

gt Performance Management Excellence Awards

HealthNow New YorkCategory 2 Entry The Perfect Slice

gt Performance Management Excellence Awards

[ Figure 131 Homepage Map ]

52

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agazine Information in Action

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Vol 6 Issue 2 2009

possible the same or comparable measures were created for each team For example when looking at the various call center metrics ndash even if the definitions and targets slightly differed ndash if one team was consistently exceeding or meeting their target it sparked group discussion around best practices processes staffing and target definition

Utilization of Maps continues to play a major role in communicating performance Again focusing on our audience there is a Map at the Senior VP level which then links to a high-level Map for the State director and staff and for the Federal director and staff The one-page snapshot allows management to easily view performance then to drill down to specifics via additional detailed Maps or Books Because the audience embraces the Maps concept a ldquoWhere is itrdquo Map containing all Maps and Books by SBU was created Itrsquos a quick and easy reference tool

3 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

Quantitative results are achieved through the promotion of visibility and awareness The Return on Investment may not fit a conventional definition but can be measurable and accomplished by challenging the data targets and accompanying commentaryaction plan narrative to drive performance improvement Are the targets realistic yet aggressive Are action plans being documented and carried out Are the actions discussions and decisions leading to improved performance and processes

Government Programsrsquo membership is measured and monitored in various ways via the BIRT Scorecard and other sources For example Federal membership is measured by product then by plan It is also measured by market then by product then by plan By creatively visualizing performance in multiple ways via a Map those same data results can sometimes become very obvious telling a different story that may not be obvious via standard reporting methods It may clearly illustrate that a specific product in a specific market is continuously under-performing for example Fact-based decisions can then be made as to whether or not to continue with this product in this market or it may initiate discussions as to how to grow and retain profitable membership for this product in this market

Another more recent example is an initiative to track claims-review savings By reviewing claims via various processes what savings can be recouped or realized What specific areas are State and Federal teams focusing on that can contribute to overall savings for the SBU Again where applicable there should be consistency in the metrics across

teams Placeholders are included to promote visibility to keep them in the forefront even though the data or processes may not be in place yet But by capturing results on one page via a Map it bridges potential gaps between the teams promoting awareness and synergy across the SBU

4 Qualitative results What ldquosoftrdquo or intangible benefits has the group department or organization received as a result of this solution

A major benefit of the scorecard framework for the Government Programs SBU has been the identification and alignment of roles responsibilities and accountability

The SBUrsquos Senior VP monthly leadership meeting focuses on four areas

bull Performance Performance is covered via the existing incentive strategic and operational metrics

bull Action plans Documenting action plans in the Performance Management Software Suite versus verbalizing action plans establishes ownership and accountability At subsequent meetings management follows up on key action items or plans to determine whether or not the corrective action did take place and if yes did it have the desired results

bull Strategic direction The strategic direction of the various teams is captured as a springboard to strategic thinking discussions and planning So as not to lose sight of short- and long-term strategic planning this aspect of the business now is housed in the BIRT Scorecard completing the strategic planning of the ldquoHow are we going to get thererdquo and ldquoAre we there yetrdquo cycle This holistic approach helps minimize the chances of our scorecard becoming too focused on operational performance and keeps strategic planning dynamic and visible

The value of these metrics is not in the data but in the commentary The individual teamsrsquo strategic direction ldquometricsrdquo are subjective red = 1 yellow = 2 green = 3 The target = 3 Each metric includes a description of the specific strategic path we need to research or move forward on as well as what goal achievement it supports The ldquodatardquo ndash or color ndash is based on basic questions like What did you hope to achieve this month vs What did you actually achieve this month Were there any successes barriers obstacles In addition to accountability the entire SBU benefits from the sharing of information having meaningful discussion taking appropriate action and collaboration

bull Key initiatives The last critical component is the identification and alignment of key initiatives that

are necessary to support achievement of the various incentives strategic goals and direction and operational goals As with the strategic direction metrics the value is in the narrative with the color reflecting what was accomplished for the specific reporting period

5 Innovation Why should this solution be considered an Innovative Solution What makes it unique groundbreaking and superior What unintended results did you realize

Over time the Government Programs Performance Management framework evolved into an innovative solution The process drives performance and isnrsquot necessarily focused on ldquocolorrdquo Rather itrsquos about having the right people in the same room on a regular basis to drive meaningful discussion and to take appropriate action to improve performance

Outside of the standard processes it was the monthly review process that drove effectiveness revisions enhancements and restructuring of the meeting schedule agenda and format The Government Program financial reporting manager would meet with each director and general manager to review their scorecard for completeness as well as for performance from an operational perspective The State and Federal team directors would then meet with their respective management teams to review and discuss performance results in preparation for the joint Government Programs Leadership Meetings The audience included the Senior VP down to team managers key data analysts (data providers) and support function representatives Through trial and error management learned to maximize their time and effectiveness by concentrating on key metrics and topics rather than trying to review all metrics identify leading indicators versus only outcome results and include strategic thinking and initiatives Today the monthly leadership

meetings are much more productive and look at strategic and operational performance

As involvement and participation increased in the team meetings as well as in the leadership meetings it removed silos opened communications enabled the sharing of information and best practices and promoted teamwork across the SBU But most importantly it brought about an awareness and a sense of unity and commitment within the SBU to achieve their goals something that was lacking before

While it was not part of the initial scope management realized shortly after implementation that efficiencies could be gained by replacing an in-depth hard copy monthly report with BIRT-generated results Since the BIRT Scorecard contained the same data with supporting narrative ndash plus additional metrics with narrative ndash monthly performance was captured via a monthly report Book various Maps and BIRT-generated reports Elimination of the hard-copy report was an unintended way of encouraging a more active use of the Performance Management software by management to monitor performance thereby increasing user familiarity with the contents features functionality and navigation

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

Sustainability is achieved through a continuous process of revisiting the scorecard when there are organizational changes looking at the business direction shifts goal changes process changes etc To ensure that metrics are still relevant a filtering process is held with each director and general manager every six to eight months or as necessary During this exercise questions such as the following are asked

gt Performance Management Excellence Awards gt Performance Management Excellence Awards

[ Figure 132 CEOrsquos Book ]

54

Perform M

agazine Information in Action

55

Vol 6 Issue 2 2009

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

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Vol 6 Issue 2 2009

3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

58

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  1. Button 3
Page 26: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

50

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Vol 6 Issue 2 2009

HealthNow New York Inc headquartered in Buffalo is one of New York Statersquos leading healthcare companies doing business as BlueCross BlueShield of Western New York BlueShield of Northeastern New York HealthNow in the Central New York region and Brokerage Concepts Inc in Pennsylvania

Improving the health of people and communities are HealthNowrsquos corporate priorities and for more than 70 years the company has been a proactive partner in health working to improve the quality of care and the quality of life for everyone it serves In 2008 HealthNow provided access to care to more than 820000 members and in 2008 company revenues grew to $227 billion

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution and describe what you were trying to achieve as a group function or department

A few years ago HealthNow New York Inc determined that the key to its continued success would be its ability to differentiate itself from other healthcare plans in ways that could not be readily duplicated or copied by their competitors In an increasingly crowded marketplace to get the attention of new customers and retain existing ones HealthNow needed to set itself apart from others

This lasting competitive advantage needed to come from an organizational culture that was dedicated to a relentless focus on meeting customersrsquo needs It needed to be highly responsive supportive flexible and nimble particularly as the healthcare marketplace continues to change with more responsibility placed upon its customers

To that end a new business model was implemented to provide the framework for customer focus Under the new structure the company was divided into four strategic business units (SBUs) each responsible for financial contribution customer satisfaction medical utilization and market share of a specific book of business

Each SBU includes its own set of functions including sales account and broker management product configuration customer intelligence pricing enrollment and billing customer service medical management and HR support Each business unit is led by an executive who is fully accountable for the unit operations and for bottom-line performance of the entire business unit Each SBU is supported by various corporate support functions (Actuarial IT Legal etc)

Implementation of the new business model began with a reorganization of the senior management structure The senior management of each SBU has specific incentive goals as well as strategic goals aligned with the corporate incentive Those strategic goals then drill down to ldquoteamrdquo incentives and to a blend of strategic and operational goals

This was a completely new way of looking at our business It was a blank slate requiring new processes and new methodology as well as an examination of existing metrics and processes to determine what added value and where the strengths weaknesses opportunities and gaps were

Under this new structure the Government Programs State and Federal products SBU ndash which historically had some inefficient end-to-end processes lacked internal controls and had minimal oversight of financial performance ndash was able to set a foundation and develop a growth strategy In order to achieve this mission and to align track monitor improve and communicate performance the Senior Vice President of the Government Programs SBU elected to utilize a Performance Management framework via the Actuate BIRT Performance Scorecard

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

As a point of reference the Government Programs SBU is comprised of a State Government Programs team a Federal Government Programs team an Operations team and a Sales team The Performance Management design team was comprised of the Actuate system administratorfacilitator the Government Program financial reporting manager and two SBU data analysts Input from the various teamsrsquo management staff was gathered as the design got more granular

Discussions around the design of the Government Programs scorecard began with two basic questions

1 What are the handful (ideally six to eight) of key performance indicators that are necessary to run and manage your business and to indicate that yoursquore on the right path to achieving your goals

Defining the key performance indicators was a challenge that required the Actuate system administrator in a facilitative role to get intimately involved in order to keep the discussions focused and high level and to limit scope creep The incentive goals were clearly defined at the corporate and SBU level however the tough question was how should they drill down in the BIRT Performance Scorecard The facilitator posed the following questions to the other members of the design team

bull How do you usually look at your business

bull How are the primary source documents that capture this information structured

bull What other ways do you look at your business

Taking the answers to these questions a step further the facilitator asked the next question Is the drill-down structure the same for the core strategic or team metrics The answer was yes By taking this approach we were provided with consistency in how the teams look at their business and the performance of their core indicators

Once the incentive and strategic goals were identified more leading and lagging operational measures were defined such as

bull Call centers

bull Accuracy

bull Quality

bull Sales Performance

2 Who is your audience

Through the entire measure selection and definition process the design team was constantly reminded to keep a second question ndash who is your audience ndash in mind This helped keep the focus on the critical few and keep the number of metrics down to a manageable amount Links to supporting documentation were created to provide easy access to the granular data without burdening the scorecardrsquos objective

The audience in this case was the SBUrsquos Senior Vice President followed by the State Director Federal Director Operations Director and Sales General Manager It then cascades down to each directorrsquos management team and the data providers

In order to provide a complete and consistent picture of State and Federal performance for senior management where

gt Performance Management Excellence Awards

HealthNow New YorkCategory 2 Entry The Perfect Slice

gt Performance Management Excellence Awards

[ Figure 131 Homepage Map ]

52

Perform M

agazine Information in Action

53

Vol 6 Issue 2 2009

possible the same or comparable measures were created for each team For example when looking at the various call center metrics ndash even if the definitions and targets slightly differed ndash if one team was consistently exceeding or meeting their target it sparked group discussion around best practices processes staffing and target definition

Utilization of Maps continues to play a major role in communicating performance Again focusing on our audience there is a Map at the Senior VP level which then links to a high-level Map for the State director and staff and for the Federal director and staff The one-page snapshot allows management to easily view performance then to drill down to specifics via additional detailed Maps or Books Because the audience embraces the Maps concept a ldquoWhere is itrdquo Map containing all Maps and Books by SBU was created Itrsquos a quick and easy reference tool

3 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

Quantitative results are achieved through the promotion of visibility and awareness The Return on Investment may not fit a conventional definition but can be measurable and accomplished by challenging the data targets and accompanying commentaryaction plan narrative to drive performance improvement Are the targets realistic yet aggressive Are action plans being documented and carried out Are the actions discussions and decisions leading to improved performance and processes

Government Programsrsquo membership is measured and monitored in various ways via the BIRT Scorecard and other sources For example Federal membership is measured by product then by plan It is also measured by market then by product then by plan By creatively visualizing performance in multiple ways via a Map those same data results can sometimes become very obvious telling a different story that may not be obvious via standard reporting methods It may clearly illustrate that a specific product in a specific market is continuously under-performing for example Fact-based decisions can then be made as to whether or not to continue with this product in this market or it may initiate discussions as to how to grow and retain profitable membership for this product in this market

Another more recent example is an initiative to track claims-review savings By reviewing claims via various processes what savings can be recouped or realized What specific areas are State and Federal teams focusing on that can contribute to overall savings for the SBU Again where applicable there should be consistency in the metrics across

teams Placeholders are included to promote visibility to keep them in the forefront even though the data or processes may not be in place yet But by capturing results on one page via a Map it bridges potential gaps between the teams promoting awareness and synergy across the SBU

4 Qualitative results What ldquosoftrdquo or intangible benefits has the group department or organization received as a result of this solution

A major benefit of the scorecard framework for the Government Programs SBU has been the identification and alignment of roles responsibilities and accountability

The SBUrsquos Senior VP monthly leadership meeting focuses on four areas

bull Performance Performance is covered via the existing incentive strategic and operational metrics

bull Action plans Documenting action plans in the Performance Management Software Suite versus verbalizing action plans establishes ownership and accountability At subsequent meetings management follows up on key action items or plans to determine whether or not the corrective action did take place and if yes did it have the desired results

bull Strategic direction The strategic direction of the various teams is captured as a springboard to strategic thinking discussions and planning So as not to lose sight of short- and long-term strategic planning this aspect of the business now is housed in the BIRT Scorecard completing the strategic planning of the ldquoHow are we going to get thererdquo and ldquoAre we there yetrdquo cycle This holistic approach helps minimize the chances of our scorecard becoming too focused on operational performance and keeps strategic planning dynamic and visible

The value of these metrics is not in the data but in the commentary The individual teamsrsquo strategic direction ldquometricsrdquo are subjective red = 1 yellow = 2 green = 3 The target = 3 Each metric includes a description of the specific strategic path we need to research or move forward on as well as what goal achievement it supports The ldquodatardquo ndash or color ndash is based on basic questions like What did you hope to achieve this month vs What did you actually achieve this month Were there any successes barriers obstacles In addition to accountability the entire SBU benefits from the sharing of information having meaningful discussion taking appropriate action and collaboration

bull Key initiatives The last critical component is the identification and alignment of key initiatives that

are necessary to support achievement of the various incentives strategic goals and direction and operational goals As with the strategic direction metrics the value is in the narrative with the color reflecting what was accomplished for the specific reporting period

5 Innovation Why should this solution be considered an Innovative Solution What makes it unique groundbreaking and superior What unintended results did you realize

Over time the Government Programs Performance Management framework evolved into an innovative solution The process drives performance and isnrsquot necessarily focused on ldquocolorrdquo Rather itrsquos about having the right people in the same room on a regular basis to drive meaningful discussion and to take appropriate action to improve performance

Outside of the standard processes it was the monthly review process that drove effectiveness revisions enhancements and restructuring of the meeting schedule agenda and format The Government Program financial reporting manager would meet with each director and general manager to review their scorecard for completeness as well as for performance from an operational perspective The State and Federal team directors would then meet with their respective management teams to review and discuss performance results in preparation for the joint Government Programs Leadership Meetings The audience included the Senior VP down to team managers key data analysts (data providers) and support function representatives Through trial and error management learned to maximize their time and effectiveness by concentrating on key metrics and topics rather than trying to review all metrics identify leading indicators versus only outcome results and include strategic thinking and initiatives Today the monthly leadership

meetings are much more productive and look at strategic and operational performance

As involvement and participation increased in the team meetings as well as in the leadership meetings it removed silos opened communications enabled the sharing of information and best practices and promoted teamwork across the SBU But most importantly it brought about an awareness and a sense of unity and commitment within the SBU to achieve their goals something that was lacking before

While it was not part of the initial scope management realized shortly after implementation that efficiencies could be gained by replacing an in-depth hard copy monthly report with BIRT-generated results Since the BIRT Scorecard contained the same data with supporting narrative ndash plus additional metrics with narrative ndash monthly performance was captured via a monthly report Book various Maps and BIRT-generated reports Elimination of the hard-copy report was an unintended way of encouraging a more active use of the Performance Management software by management to monitor performance thereby increasing user familiarity with the contents features functionality and navigation

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

Sustainability is achieved through a continuous process of revisiting the scorecard when there are organizational changes looking at the business direction shifts goal changes process changes etc To ensure that metrics are still relevant a filtering process is held with each director and general manager every six to eight months or as necessary During this exercise questions such as the following are asked

gt Performance Management Excellence Awards gt Performance Management Excellence Awards

[ Figure 132 CEOrsquos Book ]

54

Perform M

agazine Information in Action

55

Vol 6 Issue 2 2009

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

56

Perform M

agazine Information in Action

57

Vol 6 Issue 2 2009

3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

58

Perform M

agazine Information in Action

  1. Button 3
Page 27: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

52

Perform M

agazine Information in Action

53

Vol 6 Issue 2 2009

possible the same or comparable measures were created for each team For example when looking at the various call center metrics ndash even if the definitions and targets slightly differed ndash if one team was consistently exceeding or meeting their target it sparked group discussion around best practices processes staffing and target definition

Utilization of Maps continues to play a major role in communicating performance Again focusing on our audience there is a Map at the Senior VP level which then links to a high-level Map for the State director and staff and for the Federal director and staff The one-page snapshot allows management to easily view performance then to drill down to specifics via additional detailed Maps or Books Because the audience embraces the Maps concept a ldquoWhere is itrdquo Map containing all Maps and Books by SBU was created Itrsquos a quick and easy reference tool

3 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

Quantitative results are achieved through the promotion of visibility and awareness The Return on Investment may not fit a conventional definition but can be measurable and accomplished by challenging the data targets and accompanying commentaryaction plan narrative to drive performance improvement Are the targets realistic yet aggressive Are action plans being documented and carried out Are the actions discussions and decisions leading to improved performance and processes

Government Programsrsquo membership is measured and monitored in various ways via the BIRT Scorecard and other sources For example Federal membership is measured by product then by plan It is also measured by market then by product then by plan By creatively visualizing performance in multiple ways via a Map those same data results can sometimes become very obvious telling a different story that may not be obvious via standard reporting methods It may clearly illustrate that a specific product in a specific market is continuously under-performing for example Fact-based decisions can then be made as to whether or not to continue with this product in this market or it may initiate discussions as to how to grow and retain profitable membership for this product in this market

Another more recent example is an initiative to track claims-review savings By reviewing claims via various processes what savings can be recouped or realized What specific areas are State and Federal teams focusing on that can contribute to overall savings for the SBU Again where applicable there should be consistency in the metrics across

teams Placeholders are included to promote visibility to keep them in the forefront even though the data or processes may not be in place yet But by capturing results on one page via a Map it bridges potential gaps between the teams promoting awareness and synergy across the SBU

4 Qualitative results What ldquosoftrdquo or intangible benefits has the group department or organization received as a result of this solution

A major benefit of the scorecard framework for the Government Programs SBU has been the identification and alignment of roles responsibilities and accountability

The SBUrsquos Senior VP monthly leadership meeting focuses on four areas

bull Performance Performance is covered via the existing incentive strategic and operational metrics

bull Action plans Documenting action plans in the Performance Management Software Suite versus verbalizing action plans establishes ownership and accountability At subsequent meetings management follows up on key action items or plans to determine whether or not the corrective action did take place and if yes did it have the desired results

bull Strategic direction The strategic direction of the various teams is captured as a springboard to strategic thinking discussions and planning So as not to lose sight of short- and long-term strategic planning this aspect of the business now is housed in the BIRT Scorecard completing the strategic planning of the ldquoHow are we going to get thererdquo and ldquoAre we there yetrdquo cycle This holistic approach helps minimize the chances of our scorecard becoming too focused on operational performance and keeps strategic planning dynamic and visible

The value of these metrics is not in the data but in the commentary The individual teamsrsquo strategic direction ldquometricsrdquo are subjective red = 1 yellow = 2 green = 3 The target = 3 Each metric includes a description of the specific strategic path we need to research or move forward on as well as what goal achievement it supports The ldquodatardquo ndash or color ndash is based on basic questions like What did you hope to achieve this month vs What did you actually achieve this month Were there any successes barriers obstacles In addition to accountability the entire SBU benefits from the sharing of information having meaningful discussion taking appropriate action and collaboration

bull Key initiatives The last critical component is the identification and alignment of key initiatives that

are necessary to support achievement of the various incentives strategic goals and direction and operational goals As with the strategic direction metrics the value is in the narrative with the color reflecting what was accomplished for the specific reporting period

5 Innovation Why should this solution be considered an Innovative Solution What makes it unique groundbreaking and superior What unintended results did you realize

Over time the Government Programs Performance Management framework evolved into an innovative solution The process drives performance and isnrsquot necessarily focused on ldquocolorrdquo Rather itrsquos about having the right people in the same room on a regular basis to drive meaningful discussion and to take appropriate action to improve performance

Outside of the standard processes it was the monthly review process that drove effectiveness revisions enhancements and restructuring of the meeting schedule agenda and format The Government Program financial reporting manager would meet with each director and general manager to review their scorecard for completeness as well as for performance from an operational perspective The State and Federal team directors would then meet with their respective management teams to review and discuss performance results in preparation for the joint Government Programs Leadership Meetings The audience included the Senior VP down to team managers key data analysts (data providers) and support function representatives Through trial and error management learned to maximize their time and effectiveness by concentrating on key metrics and topics rather than trying to review all metrics identify leading indicators versus only outcome results and include strategic thinking and initiatives Today the monthly leadership

meetings are much more productive and look at strategic and operational performance

As involvement and participation increased in the team meetings as well as in the leadership meetings it removed silos opened communications enabled the sharing of information and best practices and promoted teamwork across the SBU But most importantly it brought about an awareness and a sense of unity and commitment within the SBU to achieve their goals something that was lacking before

While it was not part of the initial scope management realized shortly after implementation that efficiencies could be gained by replacing an in-depth hard copy monthly report with BIRT-generated results Since the BIRT Scorecard contained the same data with supporting narrative ndash plus additional metrics with narrative ndash monthly performance was captured via a monthly report Book various Maps and BIRT-generated reports Elimination of the hard-copy report was an unintended way of encouraging a more active use of the Performance Management software by management to monitor performance thereby increasing user familiarity with the contents features functionality and navigation

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

Sustainability is achieved through a continuous process of revisiting the scorecard when there are organizational changes looking at the business direction shifts goal changes process changes etc To ensure that metrics are still relevant a filtering process is held with each director and general manager every six to eight months or as necessary During this exercise questions such as the following are asked

gt Performance Management Excellence Awards gt Performance Management Excellence Awards

[ Figure 132 CEOrsquos Book ]

54

Perform M

agazine Information in Action

55

Vol 6 Issue 2 2009

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

56

Perform M

agazine Information in Action

57

Vol 6 Issue 2 2009

3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

58

Perform M

agazine Information in Action

  1. Button 3
Page 28: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

54

Perform M

agazine Information in Action

55

Vol 6 Issue 2 2009

1 Explain the problem you were intending to solve Describe the business drivers for initiating this solution

Before the City of Dallas implemented the Actuate BIRT Performance Scorecard system we had a partially-developed performance measurement system The system was not user-friendly did not allow us to easily generate reports and crashed when too many users logged in It severely limited the management potential of the City of Dallas and grew to be a repository for large sums of information that failed to measure progress assist in management decisions or support continuous improvement to city operations

Department representatives and executives throughout the City were unable to cull needed information from the system Managers and administrators hated it because it was hard to use The public had no way of understanding what was being measured and reports were often several months behind due to the laborious process involved in posting the information to the internet

After several years of struggling with the old system a group of key executives came together to demand something better They wanted a new system that was easy to use both when inputting data and when trying to pull data out for decision-making It had to be accessible to the public through the internet and the most important requirement was that the data in the system had to be useable to manage performance

2 Describe the successful solution including time required to implement and its scope (including information regarding users of the solution and project team) What products were used and what function did they perform What do you measure and how does it change how you manage your part of the organization

For several years the City of Dallas had plans to purchase a new software program to track city-wide performance After

reviewing proposals from several software companies the City ultimately chose the BIRT Performance Scorecard as it was best able to meet our business requirements within our budget needs

A team of City of Dallas representatives was formed with members from three departments who would work with Actuate consultants to implement the full project A tight project schedule was created over 3000 measures in over 30 departments would be ldquoscrubbedrdquo and entered into the new system in less than six months In addition to the work sessions we had to train location administrators and the end users (managers and department representatives) In addition to this work we decided to build a dual system ndash one that tracked both day-to-day measures and long-term multi-year performance

The City of Dallas used the BIRT Scorecard to its fullest capacity to build the dual-view structure which currently houses over 3500 measures The BIRT Scorecard is used to house three views in the current year and one archival view a training database and a test environment Briefing Books have been created that allow end users to enter their data a Book was created for each of the over 300 services (group measures) and filters were used to pull the data and formula measures for each service Each Book has a unique URL address by which users access their service for data entry Over 20 images have been loaded into the system for use as backgrounds for Maps and departments are creating reports to show progress towards annual goals

As previously mentioned the system is used to track progress toward both day-to-day and long-term goals The City of Dallas has over 30 departments with a wide variety of business lines from the typical services for public safety and public works to airport management and the only municipally-owned commercial radio station in the country The City measures everything from the number of birthdeath certificates sold to the number of sewer interceptors inspectedcleaned to the percent of funds protected from loss Due to the wide range of services provided within the City of Dallas few measures occur at multiple locations This not only added to the complexity of the build out but it also reflects the necessity of a system of this magnitude in order to assist upper-level executives in managing everything the City does

With the implementation of the BIRT Scorecard performance data has become a more integral part of management Performance data is discussed in quarterly meeting and is posted to the general public for review More people have access to the system and are looking at data and discussing performance The culture of the organization is changing from reporting data for compliance to using data for management

City of DallasCategory 4 Entry Super Size

gt Performance Management Excellence Awards

For more information about Actuatersquos Mobile Solution please contact an Actuate expert at 1-800-914-2259 (US amp Canada)

Experience Actuate Mobile

BlackBerryreg RIMreg Research In Motionreg SureTypereg SurePresstrade and related trademarks names and logos are the property of Research In Motion Limited and are registered andor used in the US and countries around the world Used under license from Research In Motion Limited

Device Friendly Formatting Actuate Mobile transforms your eSpreadsheet and BIRT enterprise reports allowing them to adjust to your specific mobile device ensuring your content is easy to read navigate and perfectly formatted for viewing

Anywhere Anytime Portability Stay in touch with all the information you need ndash without the frustration of trying to read information and attachments that were not designed for mobile viewing Actuate Mobile ignites your mobile workforce by delivering rich user content that powers daily transactions decisions important deals and the bottom line

True Mobility

bull Is it still relevant to the business and audience

bull Does it add value

bull Is it being used to make any business decisions

bull Is the measure owner correct

bull Is the target still valid

Has it been consistently meeting or exceeding expectations If yes the methodology behind the data is reevaluated andor a realistic yet aggressive stretch target is set

As revisions to the content of the scorecard are made there is a conscious effort to make sure all objects Maps Books and reports reflect the revisions When applicable revisions are communicated to the appropriate parties By being creative with the presentation of the information and making

gt Performance Management Excellence Awards

navigation user friendly it keeps the users visually interested and helps minimize frustration at the user level

Having the system administrator attend the team and leadership meetings provides a great opportunity to observe what is working or not working for the audience in terms of content functionality and process It also is a subtle way to learn about any organizational business or process changes that may require revisions to the scorecard Topics often spark off-line discussions about possible enhancements or suggestions to better meet business needs

In summary the Government Programs management team has definitely embraced a Performance Management framework They make a concerted effort to make it an iterative process to keep it current and effective in the pursuit of their goals and strategic direction

56

Perform M

agazine Information in Action

57

Vol 6 Issue 2 2009

3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

58

Perform M

agazine Information in Action

  1. Button 3
Page 29: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

56

Perform M

agazine Information in Action

57

Vol 6 Issue 2 2009

3 What Performance Management framework do you use and how did you roll out the strategy and the system across the organization (in terms of communication training use of the system)

The BIRT Scorecard easily accommodated the Cityrsquos existing framework for Performance Management which aligns city services into six Key Focus Areas identified by the City Council We began with a small pilot group of nine departments holding work sessions to narrow the measures down to the critical few After the work sessions measures were loaded into the system and departmentlocation administrators were trained Finally the end usersmeasure owners were trained on the software and how to make updates into the system This process was modified slightly and then repeated for two additional rounds of departments (26 additional departments) Once all of the departmentlocation users were trained books were created for each executive and private training sessions were held for them on the systemrsquos capabilities

4 Quantitative results How was the effectiveness of the solution measured (metrics ROI etc ) Please provide a quantitative analysis of the benefits of the solution

The effectiveness of the BIRT Scorecard will be primarily measured from a survey of end users who rate factors such as the systemrsquos ease of use ability to display information and support of communication with stakeholders and management decision-making Additionally a new framework for bringing organizational stakeholders together on a regular basis for collaborative discussions based around the Cityrsquos established metrics is being planned called ldquoDallas Measuresrdquo The BIRT Scorecard will be the focal point for these meetings Dallas plans to track the success of this program by revaluating programs discussed after changes have been implemented

5 Qualitative results What ldquosoftrdquo or intangible benefits has the organization received as a result of this solution

The BIRT Scorecard has helped refine and reenergize the Cityrsquos approach to evaluating its performance The ease of the systemrsquos use has freed organizational stakeholders to concentrate on the high-level questions that data prompts rather than spending time and effort on retrieving and formatting data Furthermore the dynamic environment in which City departments can now access their data has raised awareness of the benefits of performance measurement With a much more intuitive look and feel the BIRT Scorecard makes information much more accessible to a wider audience allowing for a culture of evidence-based management to extend beyond a select group of managers and analysts Finally this enhanced accessibility has aided efforts to eliminate many metrics that were unnecessary and did not provide any insight into normal operations

6 Sustainability How does the solution adapt to changing business requirements and deliver long-term sustainable value

The BIRT Scorecard is highly adaptable Early during the process we realized that it could be used to monitor performance of both day-to-day and long-term measures More recently as the federal government developed its requirements for the American Reinvestment and Recovery Act (ARRA) we quickly realized that the BIRT Scorecard had the capacity to meet the federal reporting and transparency requirements of the Act Rather than purchasing a new software system to track performance we decided to use the Actuate solution to track ARRA measures It was a system the City already had users have already been trained and the system had the ability to post results to the internet for the public The benefits of the program and our return on investment continue to grow

gt Performance Management Excellence Awards

[ Figure 141 ARRA Google Map ]

gt Reading Room

Why Your World is About to Get a Whole Lot Smaller

Oil and the End of GlobalizationBy Jeff Rubin

Worldwide oil reserves are disappearing and what that means is a huge shift in the world as we know it Globalization will reverse and the food and goods from around the world that wersquove gotten used to purchasing at our local superstores wonrsquot be so readily

available Thatrsquos the world that Jeff Rubin forsees in his book The World is About to Get a Whole Lot Smaller Oil and the End of Globalization

Rubin the chief economist and chief strategist for CIBC World Markets was one of the first economists to accurately predict soaring oil prices back in 2000 and now is offering more predictions on what the world will become once those oil prices climb even further as less and less of the dwindling resource becomes available It will be a world that looks like the past a world not of global access but of a more local existence

But the picture Rubin paints isnrsquot all doom and gloom He offers a view into how everyone can prosper in these new times benefiting from the new reality that results Local industries will flourish again and people will return to basic human values But in order to get to that point leaders need to prepare now by imposing carbon tariffs investing in mass transit and creating ldquogreenrdquo alliances that will better the world and prepare us all for the new future before us

Game Over

How You Can Prosper in a Shattered EconomyBy Stephen Leeb

Therersquos bad news and therersquos good news The bad news the economy has shattered and the world is in recession The good news at least according to Dr Stephen Leeb ndash author of Game Over How You Can Prosper in a Shattered Economy ndash is this there is a financial road

map available to protect individual investments as the recession moves forward

In Game Over Dr Leeb offers advice on how to thrive in the current economy The author investment guru and editor of Personal Finance predicted an economic fallout ndash due to a coming shortage of resources and commodities especially oil ndash in past books The Coming Economic Collapse and The Oil Factor With those shortages still imminent he says the current economic climate isnrsquot likely to go away soon Which is why Americans need to start protecting their investments now

Dr Leeb offers clear-cut advice as to how to do that revealing his predictions as to which investments will rise which sectors will boom and the best way to hedge surging inflation While many Americans will see their savings dwindle Dr Leeb hopes to make sure his readers arenrsquot among that group

58

Perform M

agazine Information in Action

  1. Button 3
Page 30: Perform - TechTargetmedia.techtarget.com/.../Perform_Vol6_Issue2.pdf · Lastly, this article will provide an overview of the Actuate BIRT Stimulus Management Solution, highlighting

58

Perform M

agazine Information in Action

  1. Button 3