Performance Management

Copyright © 2007, SAS Institute Inc. All rights reserved.Copyright © 2006, SAS Institute Inc. All rights reserved.

Performance ManagementTime to STEP up

Jonathan Hornby, SAS

Copyright © 2007, SAS Institute Inc. All rights reserved.

Performance Management – Time to STEP up

Last decade has seen radical change• The world is flat• The world is green• The rules have changed• Information doubles every 11 months

Still only 1,440 mins per day• Time to get Strategic• Time to ensure Transparency• Time to Evolve and innovate• Time to become Proactive


Performance Management – Reality check

BusinessWeek survey• Conversations changing

From cost cutting … to balancing cost & innovation• Agility serious concern

<20% of CEOs/ CFOs happy<50% of execs understand what drives profit/ value

Fundamental obstacles• Accountability• Culture toward measurement• Transparency

For more information on the survey, visit: http://www.sas.com/events/cm/157329/


What happened?

How many, how often, where?

Where exactly is the problem?

What actions are needed?

Why is this happening?

What if these trends continue?

What will happen next?

What’s the best that can happen? Optimization

PredictiveModeling

Forecasting

StatisticalAnalysis

Alerts

QueryDrilldown

Ad hocReports

Std.Reports

Performance Management – Analytic depthThe power to improve


See reality - clean & simple

Manage & align resources to strategy

Improve foresight, optimize for value

Learn, share, codify & adapt

Evolve via experimentation & innovationEvolve

Learn

Improve

See

Performance Management – An evolutionSmart Growth

Manage


Performance Management – South Dakota DOT

Use SAS® Activity Based Management to answer:• What does it cost to maintain a mile of secondary highway?• How do our costs compare with those of other states and with

private-sector contractors?• Where are the best opportunities for reducing cost?

TAKING THE HIGH ROAD TO SUCCESSWith better information, questions and resultsOver $2m saved in first yearStory @ http://www.sas.com/success/sddot.html

http://www.sas.com/success/sddot.html


Performance Management – South Dakota DOT

Use SAS® Strategic Performance Management to answer:• Is our strategy in line with our mission?• How can we redirect our resources to more productive uses?• How does each part of SDDOT contribute to the department’s

overall success?

“With SAS, we’re becoming more aware of what we’re spending … and how

we’re performing, so we know where to make changes to improve and when we

must request more funding.”

Roxanne RiceChief Financial Officer, South Dakota Department of Transportation


Performance Management – Making it happenSee and manage what you have

What we do 1

Inputs

Outputs

PeopleMoneyTechnology

ProductsServicesInformation

DriversCustomersProcessEvents

Strategy 2

Execute 5

Budget 4

Plan 3

Consolidate 6

Review 7


Performance Management – Making it happenSee and manage what you have


Performance Management – Making it happenUnlocking smart growth – Improve, Learn & Evolve

Internal 9

Human & IT capitalProcess standards & qualityEffectiveness of strategy

External 10

Market & economic trendsSupplier logistics'Customer behaviors

Predict future 11

Simulate options 12

Quantify influence 8

Common themes: Alignment to strategy; Cost & Profitability Optimization


Performance Management – Time to STEP upLast decade has seen radical change

• Time to get Strategic• Time to ensure Transparency• Time to Evolve and innovate• Time to become Proactive

Greatest challenges• Understanding value drivers • Agility

Top 3 obstacles• Accountability• Culture toward measurement• Transparency

SAS can help you • See, Manage, Improve, Learn & Evolve performance to

increase stakeholder confidence & value

Copyright © 2007, SAS Institute Inc. All rights reserved.Copyright © 2006, SAS Institute Inc. All rights reserved.

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