WebFOCUS PMF: Metrics With Strategy

1. WebFOCUS PMF: Metrics With Strategy Bob Ferrante Technical Director

2. PMF: Metrics with StrategyOverview • This session will show operational performance management in action. • You will leave this session with a solid understanding of: • How PMF simplifies and rationalizes the process of aligning business to measurement. • How PMF allows you to model your goals and tie causes and effects to live metrics. • How metrics are tied to dimensions and shows how these add depth to your measurements

3. PMF: Metrics with Strategy What is OPM?

4. PMF: Metrics with StrategyWhat is OPM? • It is what you’re trying to do right now. • Reporting is a way to manage performance, but • Your metrics are buried in reports and scattered all over the place • The business knowledge is not contained in the metrics so you have to know what you’re looking at • Portals/Dashboards are a way to manage performance, but • There’s no good way to centrally manage the content • They’re heavily dependent on rules and goals that change, and they’re inflexible • Analytics tools are a way to manage performance but • The consumers must be experts • They are hard to widely deploy

5. PMF: Metrics with Strategy The Difference

6. PMF: Metrics with StrategyThe Difference • A report Gets right at operational data. Shows raw data rolled up for branches Drills to related reports Shows processed or calculated data

7. PMF: Metrics with StrategyThe Difference Anything missing from this picture – in terms of making the information useful for running a business? • A report

8. PMF: Metrics with StrategyThe Difference • A report Can we re-use these calculations? Can we roll up all our measures the same way? Can we standardize our drilldowns? Where is the notion of what these numbers SHOULD be – our goals? Do we have a notion of what’s most important? And what about looking at changes over time?

9. PMF: Metrics with StrategyThe Difference • A report Dimension Metric Metric Metric Metric Metric

10. PMF: Metrics with StrategyThe Difference Dimension Metric Metric Metric Metric Metric Dimension Dimension Metric Metric Metric Metric Metric Master data Pool of metrics

11. PMF: Metrics with StrategyThe Difference • Solves some of your biggest business problems with measurement • Calculations are reusable • Metrics all can roll up the same way • Logic of metric structure built into the metric, not report code • Each metric can have a standard context – website, document repository, report • Goals for each metric are built into the metric • Importance – WEIGHTING – built into each metric • Trending – changes over time – easy to do • You can view causes and effects of metrics ALSO makes it easy to • Compare metrics and do predictive analysis – “how will we do?” • Combine with planning, forecasting, budgeting processes • Combine with project management, budgeting and tracking

12. PMF: Metrics with Strategy Consumer & Analyst roles

13. PMF: Metrics with StrategyThe Existing Scorecard Reports When you first log on to PMF… PMF looks up the Today report you’ve got configured… exec (a consumer)

14. PMF: Metrics with StrategyThe Existing Scorecard Reports This is the standard Perspective report. Perspectives on left Details for 1 Perspective on right Exactly what is a Perspective, anyway?

15. PMF: Metrics with StrategyThe Existing Scorecard Reports Let’s click around and explore… Click an Objective We see a menu… Let’s click Causes & Effects…

16. PMF: Metrics with StrategyThe Existing Scorecard Reports We can quickly see strategic linkages of goals… Profit is red… Which of these is a likely cause? Click < Back.

17. PMF: Metrics with StrategyThe Existing Scorecard Reports Let’s click around and explore some more… Click an Objective We see a menu… Let’s click Show Measures…

18. PMF: Metrics with StrategyThe Existing Scorecard Reports Now we see details for this Objective… Here’s the Profit measure. Because we’re below target. We’re in the red… Let’s go back…

19. PMF: Metrics with StrategyThe Existing Scorecard Reports There’s other stuff on the multi-drill menu… View a quick performance trend graph See aligned Projects and Processes (e.g., initiatives) We can see properties… And drill to any operational detail report, web site or web-based repository for research. Which lead to related Themes and Initiatives…

20. PMF: Metrics with StrategyThe Existing Scorecard Reports There’s even more stuff on this report… If we click Options… We get a menu that lets us… Do stuff to the whole report.

21. PMF: Metrics with StrategyThe Existing Scorecard Reports Let’s try one Click Show All Now we can look at details for all the perspectives at once.

22. PMF: Metrics with StrategyThe Existing Scorecard Reports Click Preferences analyst Change to Last 5 Periods.

23. PMF: Metrics with StrategyThe Existing Scorecard Reports Now we’ve got the metrics KPI report. Navigation tree on left All metrics for top level on right

24. PMF: Metrics with StrategyThe Existing Scorecard Reports Open up the navigation tree and drill in… click EAST Let’s play around. The report shows KPIs only for what we’ve drilled.

25. PMF: Metrics with StrategyThe Existing Scorecard Reports Click the measure and you can… Lots of options here too • Drill to an Operational Report • See a host of graphs • Do predictive analysis • View Properties Try them out.

26. PMF: Metrics with StrategyThe Existing Scorecard Reports Click a measure value and you can… Lots of options here too • Drill into multi-dimensional details for each metric • Input comments (Feedback) on each lower-down value.

27. PMF: Metrics with StrategyThe Existing Scorecard Reports Lots of options here too You can drill into the detail any which-way… With intuitive menus That give you instant results

28. Performance Management FrameworkDay 1 – Introducing WebFOCUS PMF Make a Scorecard

29. PMF: Metrics with StrategyThe Existing Scorecard Reports Click Logoff. Let’s go back in as an Author author

30. PMF: Metrics with StrategyMake a Scorecard • Starting the Wizard… Go to the Author tab… Click the Scorecard Wizard panel button…

31. PMF: Metrics with StrategyMake a Scorecard Make a Scorecard made easy… Name it. Set up ten (10) sample Objectives… Click Save. …choose them from categories of standard ones, or type your own

32. PMF: Metrics with StrategyMake a Scorecard Try it: • Start the Scorecard Wizard • Select the following from the lists (change categories as needed): • Scorecard name: Card of the Century • Objective 1: Increase profit (financial) • Objective 2: Increase sales (sales) • Objective 3: Increase gross margin (financial) • Objective 4: Decrease Cost of Goods Sold (COGS) (financial) • Objective 5: Improve product quality (quality) • Objective 6: More loyal customers (sales) • Objective 7: Increase average years of service (HR) • Objective 8: Reduce product returns (quality) • Objective 9: Decrease employee attrition (HR) • Objective 10: Improve staff proficiency (training)

33. PMF: Metrics with StrategyMake a Scorecard Like this… Un-check Create Standard Metrics Click Save.

34. PMF: Metrics with StrategyMake a Scorecard Click the Refresh button on the top of the pane. The Author tab refreshes. Select Card of the Century from the Card dropdown.

35. PMF: Metrics with StrategyMake a Scorecard Refresh the tab. Here’s what you created: Ten ‘unlinked’ Objective records which you named A Scorecard record which you named Four Perspective records with the “standard” names

36. PMF: Metrics with StrategyMake a Scorecard Click the Objectives panel button Click the first Objective in the list: Decrease Cost of Goods Sold (COGS)

37. PMF: Metrics with StrategyMake a Scorecard Click Link/Unlink Measures

38. PMF: Metrics with StrategyMake a Scorecard Here’s a catalog of all the measures someone else created! Click Save Check off COGS

39. PMF: Metrics with StrategyMake a Scorecard Click Adjust Measure Weights

40. PMF: Metrics with StrategyMake a Scorecard Click Re-balance Weights Click Save

41. PMF: Metrics with StrategyMake a Scorecard Now link the other Objectives to Metrics:

42. Performance Management FrameworkDay 1 – Introducing WebFOCUS PMF Draw a Strategy

43. PMF: Metrics with StrategyDraw a Strategy • Once you have set up a scorecard, you can immediately begin painting your strategy. To do this, you use the WebFOCUS PMF Strategy Map. To use the Strategy Map, click the Strategy Map tab. WebFOCUS PMF displays the Strategy Map: The Strategy Map is blank! Why?

44. PMF: Metrics with StrategyDraw a Strategy Right. We need to paint a strategy. Click once on the empty area. The cursor should change from a hand to a pointer.

45. PMF: Metrics with StrategyDraw a Strategy Start painting a Strategy. Click the Financial Perspective. The Perspective appears on the Strategy Map.

46. PMF: Metrics with StrategyDraw a Strategy Let’s get all Perspectives onto the Map. Customer. Internal Process. Learning & Growth.

47. PMF: Metrics with StrategyDraw a Strategy Let’s get our Objectives in. Click the Objectives panel button. Here are the Objectives we put in before.

48. PMF: Metrics with StrategyDraw a Strategy Start painting the Objective. Click the Increase Profit Objective. The Objective becomes an oval.

49. PMF: Metrics with StrategyDraw a Strategy Now finish painting. Drag the Objective to here on the Financial Perspective and drop it there.

50. PMF: Metrics with StrategyDraw a Strategy Now drag the rest over so you end up with this.