Presentation on Performance Management in IBM

1. DurrelRamrathan Performance Management

2. Agenda 2

3. Definition: Performance management (PM) includes activities that ensure that goals are consistently being met in an effective and efficient manner 3

4. IBM VIEW Improve decision-making, productivity and efficiency Data should be transformed into insight Link performance measures with strategy and operational imperatives Timing 4

5. BAO Framework 5

6. Growing Need CFO: We have limited control over and visibility into the drivers of our business and their impact on our financial performance and I worry about ensuring compliance. Finance: Everyone is working with different numbers. Information is spread across hundreds of disconnected spreadsheets. CIO: Data volumes are growing exponentially and we have data silos across disparate systems. There is a desire for self service Financial Performance Management (FPM) applications. 6

7. Performance Management Breakdown Enterprise performance management Financial performance management - Budgeting - Planning - Forecasting - Consolidations 7

8. Enterprise Performance Management (EPM) Framework for the way a corporation manages and evaluates performance. Defines initiatives that will translate strategy into value-driven decisions, investments, and actions EPM identifies areas of opportunity and concern 8

9. Business Drivers EPM Manually intensive, ineffective and time consuming management reporting efforts Lack of analytics into business insight and ability to perform what if scenario planning Inability to operationalize company strategy 9

10. Financial Performance Management Finance Financial AnalyticsAnalyze and optimize performance Sales ProductDevelopment How are we doing? Enterprise Planning Plan, forecast and control enterprise resources Why? What should we be doing? Financial ConsolidationReport to external stakeholders with confidence Marketing Operations HumanResources CustomerService IT/Systems FPM – A Specialized View Of Performance Management 10

12. Delivery of financial information to business stakeholders

13. Data quality

14. Cycle times11

16. Consolidation specific processes for data and reporting

17. Prepare trial balances

18. Unaudited financial statements

20. Data entry and collection

21. Reconciliation entries and reporting

24. Publish results

25. Performance management reports

26. Enterprise use: reports, scorecards, ad-hoc

27. Data Input & Changes

28. Collect From Subsidiaries

29. Create single currencies

30. Minority interest holdings

31. Intercompany eliminations

32. Group closing adj.

34. Account Reconciliation

35. Intercompany transactions

37. Financial reports (month vs. month, month vs. last year)

38. GAAP/IFRS Reporting

39. Performance management reports (actual vs. plan, plan vs. forecast

40. Financial scorecards/dashboardsCompliance & Control

42. Analyzing highly complex and changing data sets with real-time response

43. Analyzing profitability, sales mix, and price

44. Improving scenario modeling.13

46. Move from manual budgeting and planning processes

47. Engages the whole organization

48. Replaces rigid, annual budgeting

49. Supports best practices14

50. WHY IBM 15

51. WHY IBM 16

54. Planning cycle cut 77% to 3 weeks

55. Collaborative planning across departments“We have achieved increased collaboration resulting in synchronisation and ownership at a departmental level. There is now complete visibility of targets to all interested parties, which was previously unavailable.” NurMiah, Senior Business Analyst – Ricoh UK 17

58. Cognos 8 Planning

60. Faster provision of financial reporting“Before, business information was received through various channels and manually combined, mostly using excel. Using Cognos we can focus on analysing figures and managing performance instead of number-crunching”. Sari Kaikkonen – Group CFO, Ramboll Group 18

61. Conclusion Right information to the Right People in the Right time Key Performance Indicators' Enterprise Performance Management Alignment of information Translation of strategy Problem areas Financial Performance Management 19

62. Conclusion 20 Financial Performance Management

63. 21