Consortium for Advanced Management - International

1. Consortium for Advanced Management - International

2. CAM-I’s international consortium consists of: Public and Private Organizations Government Professional bodies Software companies, System providers Academia Who work in collaboration to solve current organization problems and critical business issues that are common to the group CAM-I’s Participation Global Leadership in Cost, Process and Performance Management

3. How CAM-I Createsthe Body Of Knowledge Dissemination CAM-I Body of Knowledge Program/Interest Group/ Project Collaboration Academic Research Subject Matter Experts Practitioner Experience Existing Knowledge and Current Trends on Cost, Process and Performance Management Global Leadership in Cost, Process and Performance Management

4. ABS Consulting, Inc. ATI Avnet, Inc. Baker Tilly Mexico Boeing Company CALIBRE Systems Certified Management Accountants -Canada Decimal Department of Labor Executive Management Associates Grant Thornton LLP IBM Corporation Institute of Cost and Works Accountants of India Korea Management Accounting Association MEDRAD Inc. Navistar On Semiconductor Pilbara Group Inc. Pinnacle West Regence Rockwell Collins Royal Australian Navy SAP AG SAS Institute Shell Oil Company Tata Consulting Services Limited U. S. Air Force U. S. Coast Guard U. S. Marine Corps U. S. Patent and Trademark Office VEN International CLG Whirlpool Corporation CAM-I Participating Companies Global Leadership in Cost, Process and Performance Management

5. CAM-I • Industry-led collaborative research consortium over 35 years • Internationally recognized for advancing Cost, Process and Performance Management practices providing our members with techniques, methods, tools that are applied in their organizations. Current Initiatives: • Target Costing Best Practices • Business Intelligence • Process Based Management – Roadmap, Assessment and Implementation • Risk Management • Performance Management • Planning and Budgeting • Operational Data and Financial Management Assessments • Armed Services approach on Cost, Performance Management, Lean Six Sigma Global Leadership in Cost, Process and Performance Management

6. CAM-I Initiatives Touch Points Performance Management Performance Management Business Intelligence Cost Management Process Based Management Logical Enterprise Data Framework Standards Global Leadership in Cost, Process and Performance Management

7. CAM-I Exploratory Groups • Logical Enterprise Data Framework Standards - CAM-I’s vision is to create data interdependence and a uniquely logical integration of data and organizations • Health Care Supply Chain • Sub Project for Process Based Management, multi-dimensional reporting where Risk Management, Value Statements and Process Based Management Statements presented side by side with Income Statements and Balance Sheets. • Environmental Management Accounting (Green Sustainment) • Next generation Planning and Budgeting for today’s environment Global Leadership in Cost, Process and Performance Management

8. CAM-I Initiatives • Target Costing – Providing a vehicle for sharing target costing best practices. The current focus is to develop a series of “how to” technical bulletins on extending target costing to the supply side. The first is “Involving the Extended Value Chain in a Target Costing/Life Cycle Cost Process Model”. The second will cover leading practices for accessing manufacturing cost data and recommendations for the future on integrated costing systems across the supply chain. Chair: Tami Capperauld Phone 425-234-4458 or tami.l.capperauld@boeing.com Deliverables in progress - • Data dictionary for manufacturing models • Technical bulletin “Involving the Extended Value Chain in a Target Costing/Life Cycle Cost Process Model” • Risk Management - Working on basic taxonomy of risk management terms and phrases with a follow-on project of developing a practical applications and implementation guide. Chair: Frank Wood Phone 202-372-4564 or fwood@comdt.uscg.mil Deliverables in progress - • A model for an approach to integrating risk, cost, and performance management; an implementation methodology for that approach, key success criteria and pitfalls to avoid, and new elements of risk management to consider. Global Leadership in Cost, Process and Performance Management

9. CAM-I Initiatives Operational Data & Financial Measurement Assessments Provide assessment criteria for operational data required for relevant operational planning & control & good cost measurement. Align with Baldridge assessment approach. Provide assessment criteria for cost measurement that is integrated with and driven from the operational data assessment. Chair: George Millush Phone 248-637-8665 or gbm5@wowway.com Deliverables in progress - • Financial Measurement Assessments • The first assessment addresses the quality of operational data used for planning and operational execution. A significant portion of the total combined point value in the scoring instrument will be assigned to this operational data. • The second assessment addresses the quality of the existing cost measurement methodology and its ability to support strategic decisions. Global Leadership in Cost, Process and Performance Management

10. CAM-I Initiatives • Business Intelligence – This working group will be developing a roadmap to assist organizations improve and mature their Business Intelligence efforts. Chair: Shobik Chaudhuri Phone 703-637-2728 or shobik.chaudhuri@gt.com • Performance Management – Finalizing a practical performance management framework maturity model that will enable the assessment of public, non-profit and private sector organizations level of maturity and apply elements of a performance management. Chair: Derek Sandison Phone 905-855-0765 or Derek@pm2.ca Deliverables in progress – • First phase of Performance Management Maturity Levels Global Leadership in Cost, Process and Performance Management

11. CAM-I Initiatives • Planning & Budgeting – This group is looking at a much bigger picture that will include private and public sectors. They are examining the current and future trends for budgeting and planning which will include Beyond Budgeting. One of their other objectives is to develop a “WIKI”. Chair: Alan Stratton Phone 503-590-3911 or Stratton.aj@gmail.com Deliverables in progress - • Planning & Budgeting Wiki Next Generation Planning and Budgeting Global Leadership in Cost, Process and Performance Management

12. CAM-I Initiatives • Armed Services Cost & Performance Management – Published report on essence of performance and cost management principles and concepts in the five armed services in 2005. Currently working on best practices to be published in Fall 2008. Chair: Bob Misch Phone 703-637-3042 or bob.misch@gt.com Deliverables in progress - • Report on the survey results for Lean Six Sigma and Continuous Process Improvement (Dec 2008) • A Blue Book on Lean Six Sigma Best Practices in the Armed Services (March 2009) Global Leadership in Cost, Process and Performance Management

13. Armed Services Cost & Performance ManagementQuestionnaire Objective: Utilizing the Cost Management Maturity Model (CM³) framework, conduct an assessment of the current Army cost management culture ("As-Is" state). Use findings to establish enterprise-wide targets and action items ("To-Be" vision). Procedures: The CM³ framework consists of nine Elements. For each of the Elements / Sub-Elements, please read the five Maturity Level narratives along with the associated measures, then select a Level that most closely describes the "As-Is" condition for the Army. Add a short narrative in the Justification / Evidence block to support your selection. Only assess elements where you have experience and knowledge to select an appropriate level; however, make comments in the block if you are not able to make an assessment. General Description of Elements: Process Integration, Accountability / Performance Management, Leadership Commitment, Workforce Competencies, Workforce Acceptance / Attitude, Enterprise Perspective, Data Quality, Knowledge Sharing/Best Practices, Integration with Quality/ Productivity Improvement Global Leadership in Cost, Process and Performance Management

14. Process Based Management Roadmap Assessment Maturity of PBM - Pathway - Stage - Category PBM Stages Implementation of Action Plans Pathways to PBM Gaps in implementation Action steps Suggested Action plans Global Leadership in Cost, Process and Performance Management

15. Process Based Management Management of individual process(s) Figure 2 – Roadmap to Process Based Management Realization Optimization Institutionalization Embed PBM extended externally Processes are primary structure supported by functions CI initiatives integrated, prioritized and resourced by strategy Transformation PBM goals & objectives are part of the organization’s culture Alignment of integrated processes and strategy Process performance tied to incentives Integration Transition Process Council assumes ownership of PBM Cross process integration and measurement PBM transformation is part of goals & objectives Managing Processes Foundation Engagement Process teams operational Managing individual processes Goals & objectives based on process Discovery Process governance Classification framework Process teams launched Commitment Pockets of process success PBM implementation strategy Executive support Awareness Minimal process efforts PBM Assessment completed Global Leadership in Cost, Process and Performance Management Source: CAM-I/ATI PBM Program 2006

16. Kellogg (Northwestern) The University of Akron Babson College Gutenberg University Naval Postgraduate School US Coast Guard Academy Arizona State University Great Lakes Institute of Management – Chennai, India HEC Montréal Institute of Management Accountants Metropolitan State University PDES, Inc Texas State University University of Texas, Austin Wake Forest University University of Virginia Yonsei University – Seoul, Korea and Korea Economic Daily University and Professional Affiliations Global Leadership in Cost, Process and Performance Management

17. Deliverables Delivered – Blue Book - Marginal Analytics & Resource Consumption Accounting The Armed Services Interest Group Phase II Lean Six Sigma Survey In Progress – Management Accounting Guidelines on Process Based Management (Feb 09) Target Costing Data dictionary for manufacturing models Technical bulletin “Involving the Extended Value Chain in a Target Costing/Life Cycle Cost Process Model” Risk Management A model for an approach to integrating risk, cost, and performance management; an implementation methodology for that approach, key success criteria and pitfalls to avoid, and new elements of risk management to consider. Performance Management Survey (CAM-I/CMA conference 2008) Levels and maturity of Performance Management Armed Services Interest Group - A Blue Book on Lean Six Sigma Best Practices in the Armed Services (March 2009) Global Leadership in Cost, Process and Performance Management

18. Next CAM-I Members Meetings • March 8th -11th 2009 – San Diego, CA Keynote speaker – Dave Clifton USMC status Performance Management Maturity map deliverable • June 8th – 10th 2009 – Austin, Texas • September 7th – 10th 2009 – Washington, DC • December 7th to 9th, 2009 – San Antonio, Texas Global Leadership in Cost, Process and Performance Management

19. CAM-I Events • The next CMA/CAM-I conference Calgary – 14th to 16th October 2009 Global Leadership in Cost, Process and Performance Management

20. CAM-I Publications Global Leadership in Cost, Process and Performance Management

21. CAM-I Strategic Management Process Model Customer/Market Decision Domains Strategic Management Processes Activity-Based Cost Management Capacity Management Target Costing Closed Loop Planning and Budgeting Extended Enterprise Process Management Integrated Performance Management Risk Management Asset Management Product Process Resource Global Leadership in Cost, Process and Performance Management

22. Activity-Based CostingThe CAM-I Cross Resources Cost Drivers (Causes of Cost) Performance Measures Activities Cost Objects (Products, Services or Customers) CAM-I (Consortium for Advanced Management-International) Global Leadership in Cost, Process and Performance Management

23. CAM-I Board of Directors Srikant Sastry Grant Thornton Chairman Todd Scaletta CMA Canada Jennifer Holmes Navistar George Millush Chrysler – (Retired) Ms. Nancy Thomas CAM-I Member Services Ashok G. Vadgama CAM-I President and Treasurer Keith Hallin Whirlpool Corporation CAM-I Futures Forum Dr. Bala Balachandran – Northwestern - Kellogg, Great Lakes Institute of Management Global Leadership in Cost, Process and Performance Management

24. Contacts Ashok G. Vadgama President ashok@cam-i.org Phone: (512) 617-6428 Nancy Thomas Member Services nancyt@cam-i.org Phone: (817) 426-5744 Global Leadership in Cost, Process and Performance Management