CPM in a Box

1. CPM in a Box NorCal OAUG Training Day January 21st, 2009 *connectedthinking PwC

2. Introduction and welcome Session objectives • Our primary objectives during this session are to: • Describe CPM and its relevance to an organization • Describe how we implement a Corporate Performance Management (CPM) process in an organization • Articulate the benefits of CPM to an organization • Q&A

3. Corporate Performance Management

4. Corporate Performance Management CPM related questions • How do we align our key performance indicators and reduce the volume and complexity of our management reports? • How can we reduce our overall budget cycle time and deploy rolling forecasts to increase the value of our financial planning process? • How can we automate our planning, reporting and analytical reporting processes through standard data models and systems? • How can we effectively align and reduce our cost structure? • How can we improve our operational actions through the use of real time dashboards and scorecards? • How can we improve data integrity and increase the transparency of our management information? • How can we better link our rewards programs to better align with our strategy?

5. Corporate Performance Management CPM related questions (continued) • Additional questions: • How can we ensure accountability for the effective use of controls to mitigate safety risks? • How do we determine the right mix of preventative, predictive, and routine maintenance?

6. Corporate Performance Management Value of CPM • Improves decision making capabilities • Improves progress by allowing line of sight into operational performance and compliance • Allows management to spot potential problem areas and address them proactively • Enables management to focus on areas requiring their attention and decisions • Facilitates process improvement and provides a common yardstick to measure goal attainment • Provides potential for business intelligence (BI) capabilities (predictive, forecasting, root cause, etc.) • Provides quick analysis of functional areas • Aligns employee performance with corporate and business unit goals • Enables more collaborative processes • Increases employee awareness of corporate strategy

7. Corporate Performance Management Corporate Performance Management layer Information Delivery Report Tools, Query Tools, Portals, Scorecards, Dashboards and Visualization Data Flow CPM Apps. • Strategize • Strategic Drivers • Objective and goals • Scenario Planning • Metrics/Dimensions • Plan • Budgets • Forecasts • Models • Approvals • Consolidate • Consolidation • Inter-company • Allocations • Currency • Analyze • Management • Statutory • Compliance • Alerts • Corrective Triggers Controls Security Compliance • Database Database Actual & Plan Data Relational and Multi-Dimensional Structured and Unstructured ETL Technologies Data Transformation • Source Data Transactions Finance CRM SCM Legacy Systems Data Ware-houses Spreadsheets Related Analytic Apps External Data

8. Corporate Performance Management overview

9. ALIGN Strategy Plan Measure EVALUATE CPM Reward Insight Execute SUSTAIN Corporate Performance Management overview Corporate Performance Management overview

10. ALIGN Strategy Plan Measure EVALUATE CPM Reward Insight Execute SUSTAIN Culture Governance Data Management Technology Process Corporate Performance Management overview Creating Improvement through Corporate Performance Management The intent of a successful CPM project is to improve upon, where necessary, and operationalize existing performance management processes…not “re-invent the wheel”.

11. Key Areas – Strategy Key Areas – Plan • Strategic alignment • Strategy Maps • Value Drivers • Performance measures • Scenario models • Stakeholders Management • Organization structure • Target setting • Business planning / predictive analysis • Risk Management • Financial/operational planning • Budgeting • Collaboration • Accountabilities • Plans linked to measures Red Flags • No link between plan and strategy • Poorly defined roles and accountabilities • Plans not linked to performance measures • Fragmented management, statutory and external processes for reporting • Lack of a prioritization process for strategy elements Culture Governance Data Management Technology Process Corporate Performance Management overview ALIGN Align – Strategy and Plan Strategy Plan Measure EVALUATE CPM Reward Insight Execute SUSTAIN Key Message: “Clear alignment of strategy and plan that is dynamic and focuses on both financial and non-financial objectives.”

12. Key Areas – Measure Key Areas – Insight Red Flags Culture Governance Data Management Technology Process Corporate Performance Management overview ALIGN Evaluate – Measure and Insight Plan Strategy Measure EVALUATE CPM Reward Insight Execute SUSTAIN • Goal & performance tracking • Forecasting • Business activity monitoring / alerting • Business analytics • Close & consolidate • Statutory reporting • Management information • Scorecards / dashboards Key Message: “The right information to the right people at the right time to make the right decision.” • Disparate reporting and planning tools • Poor data quality • Lack of comprehensive management information and business analytics • Historical vs. leading views • Unbalanced measures-highly financially focused

13. Key Areas – Execute Key Areas – Reward Red Flags Culture Governance Data Management Technology Process Corporate Performance Management overview ALIGN Sustain – Execute and reward Strategy Plan Measure EVALUATE CPM Reward Insight Execute SUSTAIN • Compensation & rewards • Accountability • Motivation, leadership and behavior • Employee development • Support, training, and coaching • Process and business evaluation • Performance dialogue & communications • Improvement planning & corrective measures • Change management Key Message: “Taking action and rewarding people to ensure sustainable results” • No processes for performance review • Frequent restarting of improvement programs • Long budget / planning cycle time • Low forecast accuracy • Little use of driver based concepts • Lack of rolling forecasts • P&L focused vs. balance sheet and cash flow

14. CPM sustainability - overview

15. CPM sustainability - overview Performance management maturity • Sustainable processes start by improving consistency within the People, Process, Technology and Oversight/Strategy areas

16. CPM sustainability - overview Performance management maturity (cont.) • Sustainable processes start by improving consistency within the People, Process, Technology and Oversight/Strategy areas

17. CPM sustainability - overview Performance management maturity (cont.) • Sustainable processes start by improving consistency within the People, Process, Technology and Oversight/Strategy areas

18. CPM sustainability - overview Performance management maturity (cont.) • Sustainable processes start by improving consistency within the People, Process, Technology and Oversight/Strategy areas

19. Citations

20. Citations Where PwC has helped our CPM Clients

21. Citations Where PwC has helped our CPM Clients (continued)

22. Session Wrap-up

23. Session wrap-up Questions • Q&A

24. Jeff Balentine – Managing Director - West Region Oracle Lead (408) 817-4266 jeffrey.balentine@us.pwc.com Timothy Osorio – CPM Director - West Region Lead (408) 817-4273 timothy.osorio@us.pwc.com Viral Chawda – CPM Director – National Practice (913) 484-5671 viral.chawda@us.pwc.com Imani Dunbar – CPM Manager (415) 498-8303 imani.m.dunbar@us.pwc.com Session Wrap-up Contact information

25. © 2008 PricewaterhouseCoopers. All rights reserved. “PricewaterhouseCoopers” refers to PricewaterhouseCoopers LLP (US) or, as the context requires, the PricewaterhouseCoopers global network or other member firms of the network, each of which is a separate and independent legal entity. *connectedthinking is a trademark of PricewaterhouseCoopers LLP (US). PwC Thank you