COMMANDperformance

1. COMMANDperformance Ron M. Robertson rrobertson@commandalkon.com (205) 879-3282 x 2104

2. Session Objective Understand and/or learn how COMMANDperformancecan better provide information that the people in your organization need to make the best possible decisions. We will discuss how COMMANDperformance will: • Extract more value from your Integra or COMMANDseries or COMMANDseries application suite of products • Enhance your knowledge of corporate performance by way of extended reporting, trend analysis, dashboards and business event alerts. MGT-007 COMMANDpeformance: Improving Corporate Performance

3. MGT-007 COMMANDpeformance: Improving Corporate Performance

4. Efficiency vs. Effectiveness • Managing for Efficiency – ensure activities are performed at the lowest possible cost. • Managing for Effectiveness – do the right things to create the most value for the company. • Maximizing Efficiency and Effectiveness often creates conflict between the two goals • Efficiency means delivering concrete with the fewest staff and trucks. • Effectiveness means delivering quality service to the customer. MGT-007 COMMANDpeformance: Improving Corporate Performance

5. The Management Balancing Act Driving your organization’s performance is an exercise in balancing: • Strategic goals and operational objectives • Financial performance and operational drivers • Short-term and long-term pressures • Top-down and bottom-up perspectives. MGT-007 COMMANDpeformance: Improving Corporate Performance

6. Management Methodologies & Models There are several models / methodologies to help guide management decisions: • Total Quality Management • Balanced Scorecard • Six Sigma • Other homegrown variations of these, and more MGT-007 COMMANDpeformance: Improving Corporate Performance

7. Management Methodologies & Models • Each method provides focus, context, and alignment for decisions. • Each method requires the development of a performance management system. • A performance management system leads to executable actions for decision-makers throughout the business. MGT-007 COMMANDpeformance: Improving Corporate Performance

8. Universal Concepts Performance Management Systems share three basic concepts: • How does this action tie back to thefinancials? • How does this action tie back to organizational functions and roles? • How does this fit with the business process? (the so what question) (the who is accountable question) (the where, when, and how question or questions) MGT-007 COMMANDpeformance: Improving Corporate Performance

9. Barriers to Performance Management Four common barriers to achieving performance, managing risk, and ensuring compliance. • Barrier 1: Poor vertical visibility of performance drivers • Barrier 2: Unclear ownership of performance goals and accountability for them at the front line • Barrier 3: Poor horizontal visibility of cross-functional alignment and coordination • Barrier 4: Current executive information capabilities do not support the non-linear and iterative nature of decision-making/management processes MGT-007 COMMANDpeformance: Improving Corporate Performance

10. Poor Vertical Visibility Central to a Performance Management system is a vertical hierarchy that connectsgoals and objectives to underlying functions, processes, and decisionareas. With this hierarchy, Management can understandwhat has happened, guide today’s actions, and plan future performance. MGT-007 COMMANDpeformance: Improving Corporate Performance

11. Unclear Ownership and Accountability • Ownership requires clearly assigned roles in making decisions that drive performance goals and objectives. • Who decides how many drivers will be called in tomorrow? • Who decides what customer’s are subject to waiting time fees? • Accountability requires measuring the value of actions and outcomes. • What is our on-time delivery percentage? • What is our net margin on customer accounts? MGT-007 COMMANDpeformance: Improving Corporate Performance

12. Poor Horizontal Visibility A true performance management system spans more than one function or department. It sits above the business process flow in a related but non-linear fashion MGT-007 COMMANDpeformance: Improving Corporate Performance

13. Required Capabilities The performance management system must include two capabilities: First, it must show how everything fits together in terms of business process • Driver Call-in affects Yards Per Driver Hour which affects Margin • Price Per Yard affects Margin Second, it must include a consistent definition of and context for performance drivers across functions that share common goals or objectives • Yards Per Driver “Clock” Hour or Yards Per “Trip” Hour • Concrete Revenue Per Yard or Total Product Revenue Per Yard MGT-007 COMMANDpeformance: Improving Corporate Performance

14. The Iterative Nature of Management • Decision-making should flow top-down and bottom-up in an iterative loop. • Various decisions in different functions need to be grouped and understood together when they affect the same goals. • There are also different decision-making cycles and requirements for long-term strategic goals than for short-term monthly and quarterly operations. • Metrics constantly evolve because • Their definitions / calculations often need tweaking (typically realized by using them) • People’s behavior eventually adapts to what is being measured. There is a natural tendency for people to learn over time how to “work the system”, which obscures its original intent. MGT-007 COMMANDpeformance: Improving Corporate Performance

15. Higher Performance Decisions are based on the information people have on hand, and the accuracy, timeliness and completeness of that information. • Performance • Decision Making • Information MGT-007 COMMANDpeformance: Improving Corporate Performance 15

16. Higher Performance Decisions are based on the information people have on hand, and the accuracy, timeliness and completeness of that information. MGT-007 COMMANDpeformance: Improving Corporate Performance 16

17. Managers Want to Know MGT-007 COMMANDpeformance: Improving Corporate Performance

18. Cost Per Cubic Yard Truck Cost Per Yard Yards Per Driver Hour Start Up / Shut Down Idle Time in Plant On-Time Delivery Driver Efficiency Employee Overtime Standard Industry Performance Measures Operational Accounting Sales • Accounts Receivable Aging and Value • Customers Over Credit Limit • Debit / Credit Memos • Invoice Transactions • Billing Costs How are These Measures Collected in Your Organization? MGT-007 COMMANDpeformance: Improving Corporate Performance Forecast Avg. Price Per Yard Add-On Product Revenue (color, fiber, admix) Customer Ranking YTD / PYTD Sales

19. Reality in Most Organizations • Largely manual • Result • Has to be repeated and done differently every time • Unpredictable process – risky and un-auditable MGT-007 COMMANDpeformance: Improving Corporate Performance

20. Reality in Most Organizations • Reporting and analysis done with multiple tools • Result • Lack of confidence in the numbers • High cost of ownership • No sharing of skills, report objects, help desk • No economies of scale MGT-007 COMMANDpeformance: Improving Corporate Performance

21. Reality in Most Organizations • Many individually produced spreadsheets • Result • Resources not optimized • Time delay • Introduction of risk MGT-007 COMMANDpeformance: Improving Corporate Performance

22. Typical “Performance Management” System What Should We be Doing? How are We Doing? Why? Regional Scorecards Regional Reporting Regional Analysis Regional Budgeting Time & Attendance CMDseries ERP TBS/DLB RETAIL Dodge Reports Internal Data External Data MGT-007 COMMANDpeformance: Improving Corporate Performance

23. COMMANDperformance Management System Managing Performance Understanding Information Effectiveness COMMANDperformance Efficiency Automating Transactions Collecting Data Oracle JDE SAP Oracle CommandSeries Apex Enterprise Applications MGT-007 COMMANDpeformance: Improving Corporate Performance

24. COMMANDperformance • One of the most critical factors that affect your organization’s performance is the decisions that people make everyday throughout the organization. • COMMANDperformance is a reporting application that delivers information to users in a clear, modern format that enhances their ability to make the right decisions everyday. • COMMANDperformance is a Business Intelligence (BI) application developed specifically for the Construction Materials Industry. The application delivers the full range of BI capabilities: Reporting, Dashboards, Analysis and Business Monitoring. MGT-007 COMMANDpeformance: Improving Corporate Performance

25. Four Steps to Better Performance Management • Address initial reporting needsDeliver all report types, for any user, drawing on all of your data. • Drive insight through BIAdd new users and BI capabilities like scorecards and analysis. • Extend BI across the enterpriseSimplify IT’s work and create a common information standard. • Advanced Performance ManagementConnect plans and reports for better performance. MGT-007 COMMANDpeformance: Improving Corporate Performance

26. COMMANDperformance Why A Dedicated Reporting System? Transactional data systems offer basic reporting designed to meet the needs of all users. Transactional systems are restricted to reporting the data within the system. COMMANDperformance can report on all of your data – COMMANDseries data as well as other systems. MGT-007 COMMANDpeformance: Improving Corporate Performance

27. COMMANDperformance A flexible, customizable information framework that spans the organization: • One source of reporting – One source of the truth. • Eliminate effort required to assemble custom reports. • Unleash the valuable data contained in the COMMANDseries and other application databases. • Increase the use and value of current COMMANDseries modules. MGT-007 COMMANDpeformance: Improving Corporate Performance

28. COMMANDperformance A flexible, customizable information framework that spans the organization: • One source of reporting – One source of the truth. • Eliminate effort required to assemble custom reports. • Unleash the valuable data contained in the COMMANDseries and other application databases. • Increase the use and value of current COMMANDseries modules. MGT-007 COMMANDpeformance: Improving Corporate Performance

29. COMMANDperformance – General Benefits • Information Push – Dashboards accessible via the browser, Reports delivered via e-mail. • Summarized Reporting – Provides quick overview of key information. Detailed reporting available when needed. • Incorporate data from multiple systems – COMMANDseries, Time & Attendance, Financial applications • Information accessible outside the COMMANDseries or other software application – minimal training needed. • Easily customized to meet specific needs. MGT-007 COMMANDpeformance: Improving Corporate Performance

30. COMMANDperformance Benefits for … Business Owners and Executives • Provides these individuals with focused information to help them manage the business. • Allows them to provide better management tools to their staff. • Provides the measurement tools needed to manage and monitor business initiatives • Drive increased utilization of COMMANDseries and extract additional value from current investments. MGT-007 COMMANDpeformance: Improving Corporate Performance

31. COMMANDperformance Benefits for … Sales Managers • Better tools to manage sales staff • Better tools for market analysis • Better tools to understand customer purchase trends • Better tools that can be used to communicate with customers MGT-007 COMMANDpeformance: Improving Corporate Performance

32. COMMANDperformance Benefits for … Sales Managers • Better tools to manage sales staff • Better tools for market analysis • Better tools that can be used to communicate with customers • Better tools for use by the sales staff • Better tools to understand customer trends and customer performance • Better tools that can be used to communicate with customers MGT-007 COMMANDpeformance: Improving Corporate Performance

33. COMMANDperformance Benefits for … Operation Managers • Better tools for exception management • Better tools for managing truck and driver utilization • Better tools for managing quality and material usage MGT-007 COMMANDpeformance: Improving Corporate Performance

34. COMMANDperformance Benefits for … IT Managers • Deliver all BI capabilities from a single product • Simplified maintenance: Zero-footprint, browser-based deployment and administration • Increase BI adoption: One product meets the needs of entire user base, from casual user to power users • Leverage all corporate data: with a huge head-start on COMMANDseries data, expandable to leverage data from all corporate applications MGT-007 COMMANDpeformance: Improving Corporate Performance

35. COMMANDperformance – Sales Report Examples • Market Analysis • Backlog Reporting • Job / Project Forecasting • Customer Analysis • Profile and Sales Ranking • Current and Prior Year Comparison • Sales Staff Analysis • Sales Staff Ranking • Average Price per Quantity Reporting MGT-007 COMMANDpeformance: Improving Corporate Performance

36. COMMANDperformance – Operations Report Examples • Status and Clock-Time Exception Reporting • Key Performance Measurements • Plant Production Reporting • On-Time Delivery Reporting • Driver / Truck Utilization Reporting • Material Usage / Variance Reporting MGT-007 COMMANDpeformance: Improving Corporate Performance

37. COMMANDperformance – Standard Product Package • Anonymous Consumer License – no restrictions on number of users accessing the portal to view / run reports. • 1 BI Professional (Query, Analysis, Report, Metric Studio) – allows one use to develop new reports or customize standard reports. • 5 Flex Add-on (Add Query, Analysis, Excel to consumer license) – provides users with ability to perform ad-hoc queries or extract data into Excel for further analysis. • Cognos Data Manager for extracting data from CS and populating the CS Data mart • Standard reports to replace COMMANDexecutive reports (Sales Reports & Contribution type reports) • Includes additional Reports and Dashboards MGT-007 COMMANDpeformance: Improving Corporate Performance

38. Please Complete Your Evaluation • Be sure to circle the session you are evaluating on the back of your card • Management • MGT-007 • COMMANDperformance – Improving Corporate Performance • All breakout session materials can be accessed at:www.commandalkon.com/cc2011/update/index.htm • Thank You! Change this Footer to Class Name. Go to Insert Header & Footer to Change.