How To Manage Performance On A Computer System

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Dashboard of the future

Amstelveen, 1 October 2013

Vision

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Contents

Introduction

Event 1. Wake-up

Event 2. Management by exception

Event 3. Weekly management meeting

Event 4. Quarterly management meeting

Encore. End of day

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In Deloitte’s vision, the performance management system of the future is exception-based, real time and predictive

Information is based on leading indicators from both internal and external big data sources. Deviations from plan are put in context

Management reporting focuses on actionable exceptions.

Personal notifications are based on the enterprise governance model

Information is available for all dimensions and hierarchies and everything can be compared with everything Information is available at any

moment

Agile decision making through connection to the enterprise social network

Predicting outcome and timing of actions through Intensive use of scenario analysis and what-if analysis

Early warning Slice and dice

Management by

exception Collaboration Predictive

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We present the dashboard of the future in four sample events

In the future performance management is a way of living. Independent from time, location and device the performance management system fulfills all performance information needs. To illustrate this we present four sample future events:

4 Dashboard of the future

Sample future event Early

warning Real time

Slice and dice

Management

by exception Collaboration Predictive



Wake-up





Management by Exception





Weekly management meeting





Quarterly management meeting



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Manager X wakes up and checks his phone for important notifications. During breakfast he/she further analyses the latest real time performance information

Manager X wakes up ...

Manufacturing order lead time turned to red

Previous status: Green

Details...

... and analyses latest notifications during breakfast

Manufacturing order lead time turned to red

Previous status: Green

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He/she checks for details on the notification – integrating both internal and external big data sources – and decides that further discussion is necessary

• By using the touch screen more detailed information is available any moment • Internal information (such as leading indicators) and external information (such as news articles) is combined to provide a comprehensive overview of the situation

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On his/her way to the office Manager X contacts Manager Y and shares his/her screen to facilitate the conversation

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Manager Y explains that his/her team is already working on the issue1. Both managers agree on the actions to resolve the issue

Manager X Manager Y

Actions Initiated • Increase Sensitivity

• Set alert if situation escalates • Set alert if not solved in 12 hours An action log is maintained during the call. Actions

are automatically set from both ends and stored in the system.

Apparently, the factory in the industrial zone is not the reason of the strike. The strike is related to a different factory in the same industrial zone.

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Event 2. Management

by exception

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In between two meetings Manager X receives a notification for a class 1 issue. Immediate action is required

Funnel health is outside of bandwith

Details...

Strategy Meeting – Project Atlanta

Video Meeting / War Room

Weekly management meeting

Quarterly management meeting

Video Meeting

Prepare for quarterly mgt meeting

Reply on E-mail now

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82

% Plan: 78

Order intake forecast accuracy

3.2

mio Plan: 3.2 Weighted distribution

24

Funnel Health Plan: 35

45

% Plan: 43 Win rate

Volume Price Realization

Acquire New Customers

Marketing & Sales

now 04-2017 05-2017 06-2017 07-2017 08-2017 09-2017 02-2017

01-2017

12-2016 10-2017

Years = 2017 | Months = Jan – Dec

The personal dashboard shows that the ‘Funnel Health’ KPI is outside the acceptable bandwidth

Product & Service

Innovation Account Management Cross-Sell / Up-Sell Retention Retain and Grow

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Active Filters: 1 Search Alerts Collaborate Views Settings Filters Maximize Graphs Maximize Context All Red Amber Restore Show: Green

82

% Plan: 78

3.2

24

45

% Plan: 43 Win rate now 04-2017 05-2017 06-2017 07-2017 08-2017 09-2017 02-2017 01-2017 12-2016 10-2017

He/she uses the predictive time slider to asses the impact of the issue on the value drivers

Marketing & Sales Product & Service

Current Customers

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82

% Plan: 78

3.2

24

45

% Plan: 43 Win rate now 04-2017 05-2017 06-2017 07-2017 08-2017 09-2017 02-2017 01-2017 12-2016 10-2017

This shows serious impact on the ‘Volume’ value driver in three months if no serious action is taken

Marketing & Sales Product & Service

Current Customers

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To gain additional understanding Manager X looks for details on the KPI

‘Funnel Health’. This shows the opportunities that are the cause of the issue

• Step 1. By touching the KPI ‘Funnel Health’ two graphs with more details are displayed • Step 2. By touching a

specific opportunity in the graph on the right more information regarding this

opportunity is provided below the graphs

Note: See Appendix for explanation of the menu options 1

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Based on a pre-populated list of contacts Manager X decides to collaborate with the Account Manager to either accelerate or kill the deal

Minimize

Screen share Email Chat Jim Warner Function: Account Manager Tel: Back Subject: Jim,

Sales funnel bandwidth is unacceptable. Please choose

1) push the deal e.g. plan private meeting with CEO hospital & me, or

2) kill the deal, too much effort is put in it already

Manager X

Acme International

Actions

Minimize

Suggested Contacts for Opportunity

All Contacts

1

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Event 3. Weekly

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During the weekly management meeting, the view option is used. Different views with real time information are available

1

2 3

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The heatmap is easily customized by filtering on dimensions and hierarchies...

• Each column represents a dimension.

• The grey scrollbar at the bottom indicates that there are additional

columns/dimensions • Hierarchies are displayed

under each dimension (vertically in the column):

• At the top the currently applicable hierarchies are shown (multiple selections are possible)

• At the bottom the other hierarchies are shown • The grey inverted triangle

at the bottom of a column indicates that there are additional hierarchies Product Market Business Units Customers

Widgets Gadgets North America Europe BU 1 BU 3 BU 4 BU 5 Filters

Swipe through the dimensions and drag the values you want to filter on to the top i

Customer 1 Customer 2 Customer 3 Customer 4 Customer 5 Customer 6 1 BU 2 2 Asia Australia

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...and actuals and plan versions

• Base values (e.g. actuals) are confronted with

comparison values (e.g. AOP)

• At the top the currently applicable values are shown (only one selection is

possible). At the bottom the other values are shown • The grey scrollbar at the

bottom indicates that there are additional values that can be selected (e.g. benchmark)

Base values Comparison values

Actual

Forecast

Budget Budget

Latest View

Filters

Drag the values you want to compare to the top i

1

Forecast

2

Active Filters: Widgets; North America; BU 2; 2017; Feb; Actual versus Forecast

C

Analyst Consensus Latest View

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Step 1 of 6. After having touched on an important KPI in the heatmap, the Value Driver Tree is shown as the starting point for drilling down

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Step 3 of 6. Drill-down from ‘Volume’ to ‘Acquire New Customers’

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Step 4 of 6. Drill-down from ‘Acquire New Customers’ to ‘Product & Service Innovation’

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Step 5 of 6. Drill-down from ‘Product & Service Innovation’ to ‘% products with successor in pipeline’

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Step 6 of 6. A detailed context analysis shows internal and external information about the KPI ‘% products with successor in pipeline’

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Event 4. Quarterly

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Manager X enters the company war room for the quarterly management meeting with the management team in Asia

Video Wall – New York

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The agenda is presented. The second topic is how to return EBITA% for widgets in Asia ‘back to green’

Agenda

• Action points follow up

• How to return EBITA% back to plan

• Market update Q1 2017

• Succession plan 2018

• Employee Engagement Survey

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To analyze opportunities for improving EBITA% various KPIs are used as variables in a what-if analysis

% Sales growth% Plan: 12,1

4,5

% Plan: 3,7 EBITA%

423

mio Plan: 410

Assets & Liabilities

4

Plan: 4

Organizational Health

SCENARIO ANALYSIS

Use of preferred parts component, sub system, etc.

60% 65% 70% 75% 80%

Sales revenue - absolute by region by market and channel vs. target

200 225 250 275 300 325 350 375 400

30 40 50 60 70 80 90 100

Customer facing time

Sales cost as a % of revenue sales salaries, bonuses and overhead

18 19 20 21 22 23 24 25 26 27

8,5

Actual Plan

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The what-if analysis indicates that improving on the KPI ‘Sales revenue – absolute’ has the largest positive impact on EBITA%

8,5

% Sales Growth% Plan: 12,1

12,5

% Plan: 3,7 EBITA% SCENARIO ANALYSIS

Sales cost as a % of revenue sales salaries, bonuses and overhead

18 19 20 21 22 23 24 25 26 27

Use of preferred parts component, sub system, etc.

60% 65% 70% 75% 80%

Sales revenue - absolute by region by market and channel vs. target

200 225 250 275 300 325 350 375 400

30 40 50 60 70 80 90 100

Customer facing time

Actual Plan

423

mio Plan: 410

Assets & Liabilities

4

Plan: 4

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Next Manager X discusses geographical expansion in Asia. Myanmar is selected based on GDP growth

GDP Growth 15% 10 % -5 % 0 % 2.5 % 5 %

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Additional relevant info on Myanmar is displayed, integrating internal and external big data. Manager X decides to invest in a growth Business Case

New customer development

2011 2012 2013 2014 2015 2016 - 0,1 0,1 0,3 0,4 0 0,2 Active Filters: 0,5 MYANMAR Selected:

News Profile People

Myanmar one of most stable political regions in South East Asia

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natoque penatibus et magnis dis parturient ... Read More 04-07-17

Myanmar exhibits enormous GDP growth in 2016

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natoque penatibus et magnis dis parturient ... Read More 21-03-17 10 30 40 0 20 50

Our brand strength

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Manager X goes to bed and checks his/her dashboard one more time. All KPIs are on green. He/she smiles and falls asleep...

....reassured that everything is in control.

6,3

% Revenue Growth Plan: 6,1

9,3

% Plan: 8,6 Operating Margin

423

mio Plan: 410 Asset Efficiency

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