This is a typical management approach, for any business entity. It has been proven a success in many corporations.

1. The YTL Corporate Performance
Management
- preliminary proposal

2. QUOTE
“If you don’t know where you’re
going, you’re probably not
gonna get there.”
Forrest Gump

3. The Project Team
Masilamani R- Project Leader
Datuk Dr Rosti Saruwono-Consultant
Vasudevan-Consultant
Kumar Nagalingam
Tahna -project manager
Sham-project Assistant, and
Two in-house Team Members

4. Business performance management
Business performance management is a set of
management and analytic processes that enable the
management of an organization's performance to
achieve one or more pre-selected goals.
Synonyms for "business performance management"
include "corporate performance management" and
"enterprise performance management”

5. QUOTE
'Organisations should manage performance with
applications designed for business in a simple
and easy to use manner that should not be
hampered by IT resources or priorities'
-Mark Smith, CEO/EVP,Ventara Reserch

6. Definition
Business Performance Management icludes
activities to ensure that goals are
consistently being met in an effective and
efficient manner

7. BPM Flagsheet
Transform Business Objectives into KPI's
● Link Employee Performance to Business
Strategies
● Execute Performance and Monitor
● Excell in Higher productivity
● Reduce Response Time
●

8. Prerequisites of KPI
Before identifying the KPI's, the following requirements
must be met:
A predetermined organisational process
Clear business objectives for the process
Quantitative and qualitative measurements
An active approach to finding and remodifying
enterprise variances
Possible corrective and enhancement actions, and
Possible reporting and rewarding criteria

9. Balanced Scorecard

10. Business Performance Management
Business performance management has three
main activities:
1. selection of goals(this may be done throgh a 'GAP
ANALYSIS' i.e. comparing the envisaged future state of the
organisation to the current state)
2. consolidation of measurement information relevant
to an organization’s progress against these goals, and
3. interventions made by managers in light of this
information with a view to improving future
performance against these goals

11. Business Performance Management
The biggest growth area in operational
Business Intelligence analysis is in the area of
business performance management
Because business performance management
activities in large organizations often involve the
collation and reporting of large volumes of data, many
software vendors, particularly those offering business
intelligence tools, market products intended to assist
in this process

12. 
History of BPM
Since 1992, business performance
management has been strongly influenced by
the rise of the balanced scorecard framework
to clarify the goals of an organization,
to identify how to track them, and to structure
the mechanisms by which interventions will be
triggered
 as a result, balanced scorecard is often used as
the basis for business performance management
activity with organizations


14. Tool categories commonly used for business
performance management
* OLAP — online analytical processing, sometimes simply called
"analytics" (based on dimensional analysis and the so-called "hypercube" or
"cube")
* scorecarding, dashboarding and data visualization
* data warehouses
* document warehouses
* text mining
* DM — data mining
* BPO — business performance optimization
* EPM — enterprise performance management
* EIS — executive information systems
* DSS — decision support systems
* MIS — management information systems
* SEMS — strategic enterprise management software

15. 
Components of BPM

set of management and analytic processes,
supported by technology, that enable businesses to
define strategic goals and then measure and manage
performance against those goal
 Core business performance management processes
include financial planning, operational planning,
business modeling, consolidation and reporting,
analysis, and monitoring of key performance indicators
linked to strategy


16. Components of BPM
Various methodologies for implementing business
performance management exist.
The discipline gives companies a top-down framework
by which to align planning and execution, strategy and
tactics, and business-unit and enterprise objectives
Reactions may include the Six Sigma strategy, balanced
scorecard, activity-based costing (ABC), Total Quality
Management, economic value-add, integrated strategic
measurement and Theory of Constraints.

17. Components of BPM
The balanced scorecard is the most widely
adopted performance management
methodology
Methodologies on their own cannot deliver a full
solution to an enterprise's CPM needs. Many
pure-methodology implementations fail to
deliver the anticipated benefits due to lack of
integration with fundamental CPM processes

18. Metrics and key performance indicators
Some of the areas from which a financial service company
management may gain knowledge by using business
performance management include:
* customer-related numbers:
o new customers acquired
o status of existing customers
o attrition of customers (including breakup by reason for
attrition)

20. Metrics and key performance indicators
*profitability of customers by demographic segments and
segmentation of customers by profitability
* campaign management
* real-time dashboard on key operational metrics
o overall equipment effectiveness
* clickstream analysis on a website
* key product portfolio trackers
* marketing-channel analysis
* sales-data analysi by product segments
* callcenter metrics

21. Metrics and key performance indicators
* turnover generated by segments of the customers - possibly using
demographic filters
*
* outstanding balances held by segments of customers and terms
of payment - possibly using demographic filters
* collection of bad debts within customer relationships
* demographic analysis of individuals (potential customers)
applying to become customers, and the levels of approval,
rejections and pending numbers
* delinquency analysis of customers behind on payments

22. KPI Application
Though the above list describes what
a financialservice company might
monitor, it could refer to a tele
company or to any similar servicesector company

23. Examples of KPI's
'Net Revenue” is a typical enterprise KPI
'Unemployment Rate' is a typical government KPI
In the Scorecard KPI's are represented by icon's -e.g.
A VP of manufacturing may be interested in such items
as :
i. The no. of units produced
ii.The no. of items that fail quality control
iii.The amount of by-product generated
iv.Raw materials inventory levels
v.The current price of raw materials

24. KPI Display
1.each KPI is typically displayed as a symbol
indicating the health of that particular number
.
e.g. the number of items that fail quality control might
be 5o. If the company makes 2 million such items,then
this % is acceptable. However, if the company were to
make only 75 expensive items of the type,a failur of 50
items indicates a serious issue that must be
addressed.

26. 1.KPI Display
2. KPI may be coloured (cassified into
green/yellow/red), simile faces, guages, dials etc.
3. a dashboard indicates the status of
performance at a particular point of time
4. a scorecard indicates progress over time

27. Typical Implementation Steps of BPM
Step 1- Establish/Ascertain /Review-mission,
vision and strategies
Step 2- Identify/Clarify-objectives,core provisions
Step 3- Design/Develop the Scorecard
Step 4- Develop Strategy and Process Maps
Step 5- Identify Business Performance
Matrices(KPI's)

28. Typical Implementation Steps of BPM
Step 6- Assess Risks
Step 7- Monitor and Report matrices
Step 8- Evaluate performance against Targets
Step 9- Identify Mitigation/Enhancement Actions
Step 10- Perform on going Review and
feedback

29. Application software types
People working in business intelligence have
developed tools that ease the work of business
performance management, especially when the
business-intelligence task involves gathering
and analyzing large amounts of unstructured
data.

30. Items of generic importance include:
1. consistent and correct KPI-related data providing
insights into operational aspects of a company
2. timely availability of KPI-related data
3. KPIs designed to directly reflect the efficiency and
effectiveness of a business
4. information presented in a format which aids
decision-making for management and decision-makers
5. ability to discern patterns or trends from organized
information

31. Tool categories commonly used for business
performance management include:
* OLAP — online analytical processing, sometimes simply called
"analytics" (based on dimensional analysis and the so-called
"hypercube" or "cube")
* scorecarding, dashboarding and data visualization
* data warehouses
* document warehouses
* text mining
* DM — data mining
* BPO — business performance optimization
* EPM — enterprise performance management
* EIS — executive information systems
* DSS — decision support systems
* MIS — management information systems
* SEMS — strategic enterprise management software

32. BPM Customer Expectations
Goal-alignment
Baseline
Cost and risk
Customer and stakeholder
Metrics
Measurement
methodology
Results

34. Enterprise Performance Mangement(EPM)
a)Places control in the hands of the business
users
b)Enables organisational alignment, and
c)Executes strategy
The organisation can clearly define and
communicate strategy and goals across the
enterprise

35. BPM Tools
a) Balanced Scorecards
Navigate through organised scorecards,and
Drill through performance
b) Strategy and process Maps-create strategy
and process maps
-Communicate and visualise strategy and work
processes
-Link map to strategies, themes, matrices. Subprocesses or supporting resources

37. BPM Tools
c) Business Performance Matrices
Create detailed view of KPI's and business
performance matrics, complete with status, trends,
histotical data, supporting information and feature rich
charts and graphs
Align with other business processes by linking to
strategic initiatives, risk elements and quality and
process activities
Large projects can easily be managed by creating
KPI's and metrics in a central library to be reused
throughout the organisation

38. Holistic View of BPM
Corporate direction-vision,mission & strategies
Balanced scorecards, dashboards and
Matrices management
Enterprise reporting
Initiatives, plans and Projects
Risk Management, and
Other Advanced Approaches

39. Alternative Strategies for BPM
Consulting
A1. Use a versatile EPM software to facilitae
and save time and cost
A2. Use a custom designed EPM process to
address client needs directly
A3. Use a hybrid approach, incorporating both
methods listed above

40. Highlights
proposed softwares may include,'Corporater'
-It has, scorcards,KPI dashboards,performance
reports,Employee scorecards and more
Flexibility to include context sensitive information e.g.
the CEO's message
Make the scorecard simple and easy to understand
Make it visually appealing

42. Review of Presentation on BPM
The BPM Suite:
A) Balanced Scorecard-4 perspectives
- financial
- customer
- internal processes
- learning and growth
BSC actions:
. create strategy
.create process maps
.communicate
.visualise strategy
.visualise work processes
.link maps to strategic themes
.link maps to matrics
.link maps to sub-processes or supporting resources

44. Review of Presentation on BPM
B) Performance Dash Board
1. A rich mix of
-initiatives
-KPI's
-numbers and inks for key performance
information
2. Performance dash board enables
-superior visualisation of performance info.,
and
-acts as the gateway to the score cards

45. Review of Presentation on BPM
3.Results:
- quick problem identification, through
use of a combination of dynamic scorecards
and strategic initiatives
- thus it brings in more value for the time spent
on analysing performance

46. Review of Presentation on BPM
KPI's, Matrices, Measures:
Use the KPI to,
- design a simple and complex dashboard
likeviews to,
-create the flexibility or interchangeability
-use standard models and adhoc models to
enable the organisation to accurately measure
business performance at different levels

48. Review of Presentation on BPM
D) Initiatives Management
-to drive management through actions
-mange tasks and milestones
-link objectives to initiatives
-link objectives to KPI's and measures
-standardise the process
-communicate the process in meeting goals and milestones
-track and monitor the human and financial resources used
by your initiatives
-focus your resources on initiatives that deliver the most
value
-create initiatives dashboard and scorecards that
summarise the status of sub-objectives and initiatives

50. Review of Presentation on BPM
E) Risk Management
-manage factors that potentially stand in the
way of meeting objectives, goals and targets by
adjusting risks to your performance
management for quick reference model
-enhance the safety of your employees
-protect property and environmentStregthen your brand reputation
-assign risks to users e.g. risk may appear on
user's 'MY Page'

52. Business Plan Template
the Why-What-Who-When-How model

53. KPI trend for Ageing Analysis

54. Identify and enumerate all KPIs
For each KPI, establish what is to be achieved by the use of this KPI
#
For each KPI, define the method of measurement
#
For each KPI, define what data will be used to measure and where that data is
#
For each KPI, define the algorithm that converts data to KPI
#
For each KPI, define the normalization or criteria
#
For each KPI, identify the organisational units to which the KPI applies
#
For each KPI, define the organisational reporting hierarchy

55. Identify and enumerate all KPIs
*
For each KPI, define the reporting requirements (table output, graphical output etc)
*
From the KPIs, identify and enumerate all data sources
*
For each data source establish how “live” the data is and define its input
*
For each data source establish the connection mechanism to its KPI object
*
As appropriate set up a data connection mechanism for the data source
*
Define an appropriate security model that will allow appropriate personnel access to appropriate data

56. Identify and enumerate all KPIs
each KPI, define the reporting requirements (table output, graphical output etc)
*
From the KPIs, identify and enumerate all data sources
*
For each data source establish how “live” the data is and define its input
*
For each data source establish the connection mechanism to its KPI object
*
As appropriate set up a data connection mechanism for the data source
*
Define an appropriate security model that will allow appropriate personnel access to
appropriate data

57. The BPM deployment waves touch upon all of the aspects of the
organization that need to be dealt with to effectively change the culture. A
sample scenario of waves is as follows:
1.
Conduct general awareness sessions to explain what is
coming and why.
2.
Provide basic BPM project training focused on up-front
definition and planning skills.
3.
Introduce basic standard BPM project processes and
templates.
4.
Roll out BPM coaching services to help BPM project
personnel utilize the training and templates effectively.
5.
Align the rewards and recognition systems by tying a
portion of the staff’s performance review and bonus criteria to
thesuccessful implementation and use of the BPM project
methodology.

58. The BPM deployment waves touch upon all of the aspects of the organization that
need to be dealt with to effectively change the culture. A sample scenario of waves
is as follows:
.
6 Implement a document repository to hold the common processes, templates,
best practices, standards, etc.
7.Reinforce management governance processes to ensure that senior and
middle management are implementing the new initiative within their organizations.
8.Introduce ongoing and random project audits and periodic organization
assessments.
9.Teach advanced BPM management classes focused on more sophisticated
processes such as quality management, metrics management, risk management,
etc. Support the new training concepts with more sophisticated processes and
templates.
10.Build a BPM support organization to handle the BPM project methodology in
the long-term.(this may be placed under the corporate planning or other centralised monitoring group)
This work can be combined into three or four waves implemented over a period of
time.

59. Summary
Deploying Business Performance Management project
processes and building capability in the organization
requires much more than simply training the staff and then
walking away. There is a process that must be followed to
understand the work required to move the organization to
your future vision. Once the work is understood, it should
be divided into manageable project/phases to have a better
chance of success. The smaller projects/phases are then
implemented in successive waves on an ongoing basis
throughout the organization.

60. Measure?
* To determine how effectively and efficiently
the process or service satisfies the customer.
* To identify improvement opportunities.
* To make decisions based on FACT and
DATA

61. Measurements Should:
* Translate customer expectations into goals.
* Evaluate the quality of processes.
* Track our improvement.
* Focus our efforts on our customers.
* Support our strategies.

62. T
Targets
* Targets need to be set for all measures
* Should have a “solid basis”
* Give personnel something for which to aim
* If achieved will transform the organization
* Careful not to develop measures/targets in
a fragmented approach:
i.e. Asking people to increase customer
satisfaction has to be backed up with the knowledge,
tools, and means to achieve that target.

63. The Leadership Team
* Develops the division’s vision, strategy and
goals
* Develops organizational objectives and
targets
* Provides leadership, endorsement and
vision for the project
* Clears barriers to scorecard progress

64. The Core Team
* Drafts the strategy map and scorecard
* Works with employees to develop
measures supporting strategic objectives
* Works with the Leadership Team to plan
and implement the Balanced Scorecard in the
FAS Division

65. The Balanced Scorecard and The Big Picture
* Activity Based Costing
* Economic Value Added
* Forecasting
* Benchmarking
* Market Research
* Best Practices
* Six Sigma
* Statistical Process Control
* Reengineering
* ISO 9000
* Total Quality Management
* Empowerment
* Learning Organization
* Self-Directed Work Teams
* Change Management

66. PERSPECTIVES
FINANCIAL/REGULATORY
To satisfy our constituents,
what financial & regulatory
objectives must
we accomplish?
CUSTOMER
To achieve our vision,
what customer needs must
we serve?

67. PERSPECTIVES
INTERNAL
To satisfy our customers and
stakeholders, in which business
Processes must we excel?
LEARNING & GROWTH
To achieve our goals, how
must we learn, communicate
and grow?

68. INTERNAL
To satisfy our customers and
stakeholders, in which business
processes must we excel?
LEARNING & GROWTH
To achieve our goals, how
must we learn, communicate
and grow?

69. REFERENCES
Kaplan, Robert and Norton, Edward. The Balanced
Scorecard.
Harvard Business Publishing, 1998
Kaplan, Robert and Norton, Edward. The Strategy-Focused
Organization.
Harvard Business Publishing, 2001
Buckingham, Marcus and Coffman, Curt. First, Break All the
Rules
The Gallup Organization, 1999
Brown, Mark. Keeping Score. Mark Graham Brown, 1996
http://www.afd.calpoly.edu/afd/Strategic_plan/
http://cqi.csusb.edu/