April 2012 Agenda

1. April 2012 Agenda • 9:00 Arrive • 9:15 Officer Announcements Chicago chapter updates • 9:30 Guest Speaker: Bryan Rogers Performance Management • 10:30 Networking Break • 11:00 Group Round Table Discussion • 12:00 Adjourn

2. International ABPMP Updates • New Registries Available: • Independent Consultant • Training Providers • CBOK Update • International Needs Volunteers: • Development around Training Provider program • CBPP study sessions • CBPP exams through the Chapters • Improve process for tracking certification / continuing education • Renew Certification

3. Chicago Chapter Updates • Chicago chapter meeting changes: update your calendars NOW MEETING SECOND FRIDAY OF EVERY OTHER MONTH 8:30-12:30 AM Webinar links will be provided • Interested in happy hour events? • TEK systems – IT trends in industry • BrainStorm Chicago May 7-8: http://www.bpminstitute.org/events/brainstorm-chicago • Achieve Success With BPM • Applying BPM to Transform Your Business • Managing Processes and Decisions for Better Business Outcomes • Using Business Decision Management to Revolutionize Business Requirements and Processes • Next Meeting: June 8, 2012

4. Welcome to new members • Name • Title, Company • What do you want to learn about Performance Management and/or Process Management

5. Presented to

6. Agenda • What is Business Process Management? • What is Business Performance Management? • •  What are common themes or issues in Business Performance Management? • SEG & Bryan Rogers introduction • •  What aspects are common between both BPM's and how can they be leveraged together? • Summary & Closing remarks

7. Business Process Management • Business process management (BPM) is a holistic management approach focused on aligning all aspects of an organization with the wants and needs of clients. • Business process management (BPM) is a systematic approach to making an organization's workflow more effective, more efficient and more capable of adapting to an ever-changing environment. • A business process is an activity or set of activities that will accomplish a specific organizational goal. • The goal of BPM is to reduce human error and miscommunication and focus stakeholders on the requirements of their roles.

8. Business Performance Management • Business performance management is a set of management and analytic processes that enable the management of an organization's performance to achieve one or more pre-selected goals. • Business performance management is contained within approaches to business process management. • Business performance management has three main activities: • Selection of goals, • Consolidation of measurement information relevant to an organization’s progress against these goals, and • Interventions made by managers in light of this information with a view to improving future performance against these goals.

9. Commonalities between Business Process Management and Business Performance Management • Alignment of processes with needs of clients and goals of organizations • Measurement & Monitoring of processes and results • Consolidation of Information • Best Practices • Solution Decision

10. Bryan Rogers, MBA, CPAPrincipal, BPM Practice Career Highlights • Financial Executive with over 20 years experience • FP&A positions with multi-billion dollar companies • Former VP of Finance for $300 million business • SME for Planning & Reporting BPM Expertise • Implementation & Design of Budgeting Solutions • BPM Process Redesign • Monthly, Quarterly Executive Management Reporting • Business Intelligence Solutions • Pre & Post Merger & Acquisition Planning • Incentive Compensation Reporting & Design • Capital Project ROI Analysis

11. BPM – Selection of Goals Stakeholders / Investors Board of Directors / Senior Management Line of Business Management Non-Management Employees Key Performance Indicators (KPIs)

12. BPM – Consolidation of Information • Dashboards • Metrics • Reports • Distributed via • Handhelds • iPads • Web-access • e-mail • PDF HRIS Business Intelligence CRM ERP CPM

13. Best Practices: Business Performance Management Process Effective integration of people, processes & systems • Involve all department managers • Create complete organizational integrity • Enhance accountability • Improve execution • Leverage individual skills

14. Business Performance Management

15. Planning Process Before Best Practice Implementation

16. Best Practices: Business Performance Management Process Effective integration of people, processes & systems • People are your most important resource . . . • Do they spend their time . . . • re-keying in data or providing business insight? • making requests to IT or developing their own reports? • tying out financial results or developing scenarios? • performing manual tasks or reviewing exceptions? • What is the cost of underutilized human resources?

17. BPM Best Practices: Planning & Forecasting • Drive Collaboration • Align Strategic and Operating Plans • Create Driver-Based Plans • Provide Real-Time Visibility into Financial Performance • Evaluate Cause and Effect Relationships • Deliver Timely and Accurate Reports • Perform Continuous Rolling Forecasts • Perform What-if Analysis

18. Planning Process After Best Practice Implementation

19. BPM – SaaS solutions • Business Process Management (BPM) Software-as-a-service (SaaS), or “software on-demand”, is business management software that is typically deployed offsite by the vendor, and is accessed via the internet. • The software may also be installed on a company’s own internal servers and accessed via an intranet or internet. SaaS uses cloud technology whereby multiple end-users, management, and IT access shared resources, software and information. • Vendors offering SaaS often provide both shared and dedicated resources (hardware and software), and support a multi-tenant architecture. Licenses are administered on a pay-as-you-go, or per user, basis.

20. Cloud-Based CPM Solution Cloud-Based CPM Enterprise Apps Spreadsheets Manual Inefficient Error-Prone Non-collaborative Difficult to Deploy Low User-Adoption Expensive, Poor ROI IT-Intensive Fast to deploy Easy to use Affordable No IT required

21. On-Premise vs. Cloud-Based Solutions

22. Decision Criteria for Solution Frequency Reporting Integration Participants Process Maturity Expert Beginner Data Type Number Source How Often Types Features

23. Complexity & Maturity of Planning and Reporting Frequency Rolling Forecasts Scenario Analysis Monthly Forecasts Quarterly Forecast Semi-Annual Revision Annual Budget Reporting XBRL SEC Reporting Dashboards Board Packs Mgmt Reporting Variance Reports Budget Summary Integration Connector- Other Ops Data Import Other Ops Data Connector GL Data Import GL Data Export AP to GL No integration Participants All Mgrs with KPI Impact Functional Mgrs Divisional Mgr Senior Execs Finance Process Collaborative Online Dialogue Alerting Workflow Annotations Email Maturity Expert Beginner Data Metrics / KPIs Operational Data BS / Cash Flow Inc. Statement Sales Capital Personnel Expense

24. Foundation for Successful Business Process or Performance Management Implementation • 1)  Get Executive sponsorship early • Establish quick wins . . . Relieve the pain • Maintain project momentum • Create a baseline and define desired improvement in key metric • Build culture of continuous improvement • Transfer knowledge throughout organization

25. Roundtable Discussions 1)  What strategies have you found to work well when implementing a new BPM process? What has not worked well? 2)  Have you established Key Performance Indicators or Metrics for your process? 3)  How are these KPIs and Metrics communicated to the organization? 4)  Does your process include established Best Practices and what are they? 5)  What are your future plans for your BPM process and desired objectives?

26. Questions & Answers Please reach out for further information: Bryan Rogers, Principal brogers@solomonedwards.com

27. Overall Trends in BPerfM • More enterprises move to cloud • Vendors wake up to virtualization • Performance benchmarks shift to competition • Introduction of new choices

28. Round Table Discussion Points • Best Practices in BPerfM and BProcM • Create inventory: • Identify 6-10 high level “core” processes (order to cash, idea to launch, etc) • Identify executives involved in managing these today • Ask what are they measuring today and how are they using it? • What decisions do they want to make but don’t have metrics today for it? • Try to show whether the metrics are aligned to a single process goal or compete against each other? • External organizations on KPI: • KPI Library • APQC • HIMMS (Healthcare Info Mgmt) • Group consensus building – what is goal of process, then find KPI that support it – use template to rank everyone’s first, second, third priority to show team consensus

29. Round Table Discussion Points • Creating a Process Framework: • Facilitated discussion • Use of industry frameworks: • APQC Process Framework • Value-Chain.org • BPM incubator • Need to continual draft, present, communicate concept of framework – everyone has different perspective of process start/end, level of detail, etc. • Only map a process if you want to improve it.. • Which ones are a priority? • Process has to be end-to-end and not functional or task level