1. Business Performance Management Overview
Business Peerformance Management
Performance Management Overview
DR. Tubagus Donny Syafardan
Topics
Why Performance Management?
What is Performance Management?
What is a Key Performance Indicator (KPI)?
What is a Scorecard?
What is a Dashboard?
Improving Performance Requires Organizational Alignment
Align the organization to strategic
goals
Link managerial action to
accomplish those goals
Align budget requests and funding
to the desired outcomes
What is Performance Management?
A disciplined approach to understanding, monitoring
and managing drivers of performance of organizations.
It leverages performance management methodologies
and business intelligence capabilities.
“Performance Management is a focused and specific
type of BI initiative when it integrates performance
management users, processes and metrics with
analytic applications and the underlying BI platform
and infrastructure.” – Gartner Group
What is Performance Management?
Clarification of vision and strategy across silos
Translation of strategy into operational terms using
scorecards
Comprehension and alignment of multiple perspectives, all of
which are vital to the institution
Alignment of internal activities with the strategic plan
Fostering employee abilities and commitment to objectives
Defined measures of performance and target called key
performance indicators
Driving Decisions Based on Data
Easy accessibility to “single version of truth” by all
information consumers using BI technologies such as
dashboards
Line-of-sight across business processes to the status and
trends key performance indicators
Culture of using information in the planning and decisionmaking process
Business Intelligence Needs for
Performance Management
Performance data
Scorecards,
Executive Dashboards
EXECUTIVES:
Need visibility into progress
towards our goals, objectives
“Am I achieving my goals?”
MANAGEMENT:
Need timely trends, summaries,
analytics of our operations
Trend, summary
data
Operations Dashboards
Analysis Tools
Detailed data
Detail Reports
Basic Report Tools
“How am I doing?”
“What should we be doing?”
KNOWLEDGE WORKERS:
Need to analyze trends and root
causes
“Why is this happening?”
STAFF:
Need detailed reports in many
formats and ad-hoc access
“What is going on?”
“What do I need to do?”
Performance Management Process
Review and Plan
Performance
Information
Report and Analyze
Monitor and Measure
PM Process Example: Recruiting and Admissions
Review and Plan
•Enrollment Levels
•Campaigns
•Financial Aid Levels
Performance
Information
Report and Analyze
•Yield rates, Trends and Causes
•Campaign Effectiveness
•KPIs vs. External Benchmarks
Monitor and Measure
•Track Enrollment Funnel
•Recruiting programs
•Budget Execution
PM Process Example: Advancement Campaign
Management
Review and Plan
•Budget Expectations
•Fund-Raising Campaigns
•Capital Campaign Targets
Performance
Information
Report and Analyze
• Accounts to Donors
• Financial Statements
• Variances and Trends
Monitor and Measure
•Spending Patterns
•Campaign Effectiveness
•Budget Execution
PM Process Example: Grant Management
Review and Plan
•Grant Budget Expectations
•Indirect Cost Recovery Rates
•Grant Expense Timing
Performance
Information
Report and Analyze
Monitor and Measure
•Effectiveness/Burn rate
• KPIs, Trends and Variance
•Granting Agency reports
•Proposal pipeline
•Grant Spending
•Indirect Cost Recovery
Metrics
OK – I know I want performance
management, but what should I measure?
What is a “KPI”?
“What gets measured,
gets done.”
10 Characteristics of Effective KPIs
1. Aligned
Always aligned with your institution’s strategy and objectives
2. Owned
Someone must be accountable
3. Predictive
“Leading” indicators of desired performance
4. Actionable
Timely data, providing owners and managers with
opportunities to intervene and impact
5. Easy to understand
Definition, trends and status should be obvious to user
Source: Performance Dashboards, Eckerson
10 Characteristics of Effective KPIs
Few in number!
1.
Too many = loss of focus
As few as reasonably possible
Balanced and linked
6.
KPIs should balance and reinforce each other
Don’t create KPIs that undermine others
Trigger changes
7.
Measuring should enable insight leading to positive changes
Standardized
9.
Calculations, numbers, assumptions should be the same
across the institution so that metrics can be compared
10. Context driven
KPIs tailored to user roles and their processes
Provide targets and trends to see where you are and in what
Source: Performance Dashboards, Eckerson
direction you’re headed
Pitfalls of KPIs
Less is more
Too many metrics will cause metric overload and nobody will
use them
Have one version of “the truth”
Indicators need to be looked at as a group
Cannot focus on one area at expense of others
People start making decisions that undermine other KPIs
Performance indicators don’t tell the whole story
Show trends but not why trend is occurring
Be wary of simplistic comparisons
Explore the drivers of performance for comparative insight
Longitudinal analysis more robust than lateral comparisons
KPI Example
Scorecards and Dashboards
OK – I know my KPIs, but how do I monitor
our status and progress on achieving our
goals and targets….
Scorecards vs. Dashboards
Scorecard
Monitor the execution of strategic
objectives and initiatives
Network of metrics, planning targets,
thresholds, history, and
accountabilities that connect
strategy to individuals
Often deployed using a formal
methodology such as the Balanced
Scorecard or Malcolm Baldridge
Criteria
Emphasize collaboration
Dashboard
Compound view of
performance information
made up of scorecards,
graphs, and summary
views
Monitor overall
performance daily at a
glance
Provide data visualizations
of performance status and
trends
Personalized for user
Both provide data navigation and analysis capabilities so
that users can quickly analyze root causes and effects as
well as identify the impact of performance problems
Scorecard Example
Begins with institutional plans
Performance measures identified to monitor progress
Scorecard View
Goals, objectives, performance targets configured into Scorecard
Assessment of progress provides visibility into performance
Executives on a goal or objective to learn more about related performance outcomes and key initiatives
Goals
Objective
s
Assessment
of progress
towards
goals and
objectives
Scorecard Example
Objectives enable executives to monitor progress towards related
Key Performance Indicators (KPIs) and initiatives
Scorecard Example
KPIs have targets, actuals, assessments, management comments
Actual values loaded from data warehouse foundation
Drill-down to reports and analytics
Scorecard Example
Initiatives and Milestones Are Also Monitored
Dashboards
Different dashboards for different purposes
and user types
Strategic
Tactical
Executives, managers
Managers, analysts
Operational
Supervisors, specialists
What Makes a Good Dashboard?
Fits Role of Target User
What are the most important business questions they need to answer?
What KPIs are they accountable for?
How much time is spent on monitoring vs. analyzing vs. collaborating?
Meets performance monitoring needs
What is the time horizon they monitor (hourly, daily, year-over-year)?
Which KPIs are leading (process) vs. lagging (outcome)?
What is the highest meaningful level of detail?
Provides easy data navigation/analysis
What type of visualization or chart is appropriate for the user?
Which KPIs should have their trends compared?
What is the lowest level of detail needed to analyze cause-effects?
Dashboards are not one size/fits all
Dashboards need to be tailored and flexible
What Makes a Good Dashboard?
Monitor overall performance at a glance
Multiple charts provide coverage of all KPIs
Charts highlight good and bad performance exceptions
Data is refreshed at required frequency
Navigate and filter data to analyze trends
Population filters are simple to apply and shared
Drill-down navigation paths are intuitive
Level of detail required for cause-effect analysis available
Support for collaborative, data-driven decision-making
Views and analysis can be shared
Level of detail for taking corrective actions available
Dashboards are not 4 reports on a page
Dashboards need to be dynamic
Dashboard Example
Personalized
view of KPIs
Multiple charts
provide status ata glance
Leading and lagging
indicators of
performance
Common KPI and
business rules
definition
Dynamic charts along with
data drilling navigation to
analyze trends further
Good Performance Management Solutions
Aligns the organization
Strategy has driven development of objectives and measures
Common KPI definition with shared dimensions
Monitors Key Performance Indicators (KPIs) of both strategic and operational
performance
Sets targets for measures that are achievable
Enables understanding of what’s important and what’s changed
Promotes proactive versus reactive decision making
Crystallizes “single version of the truth”
Reduces time and effort required to answer ad-hoc questions
Exposes business trends sooner and supports shortened decision cycles
Allows management by exception
Based on data warehouse foundation
Reduce risks to development and deployment
Acceleration of ROI
Designed for analytics performance
Use of architecture best practices for scalability and extensibility
Performance Solutions
Bringing Value to All Levels of the Institution
EXECUTIVES
Performance
Data
Scorecards for
Performance Management
MANAGEMENT
Dashboards, Reports and
Analytics to Monitor Progress
Trend,
Summary
Data
KNOWLEDGE WORKERS
Ad-hoc analysis tools to identify
and understand trends
STAFF
Detailed
Data
Production reports and
ad-hoc access for
daily operations
29
August 17, 2019
Confidential and Proprietary Information – SunGard Higher Education, Inc
Open to the Floor
Questions
Comments
Thank You!
DR. Tb. Donny Syafardan
tbdonny@gmail.com
Performance Management Overview
DR. Tubagus Donny Syafardan
Topics
Why Performance Management?
What is Performance Management?
What is a Key Performance Indicator (KPI)?
What is a Scorecard?
What is a Dashboard?
Improving Performance Requires Organizational Alignment
Align the organization to strategic
goals
Link managerial action to
accomplish those goals
Align budget requests and funding
to the desired outcomes
What is Performance Management?
A disciplined approach to understanding, monitoring
and managing drivers of performance of organizations.
It leverages performance management methodologies
and business intelligence capabilities.
“Performance Management is a focused and specific
type of BI initiative when it integrates performance
management users, processes and metrics with
analytic applications and the underlying BI platform
and infrastructure.” – Gartner Group
What is Performance Management?
Clarification of vision and strategy across silos
Translation of strategy into operational terms using
scorecards
Comprehension and alignment of multiple perspectives, all of
which are vital to the institution
Alignment of internal activities with the strategic plan
Fostering employee abilities and commitment to objectives
Defined measures of performance and target called key
performance indicators
Driving Decisions Based on Data
Easy accessibility to “single version of truth” by all
information consumers using BI technologies such as
dashboards
Line-of-sight across business processes to the status and
trends key performance indicators
Culture of using information in the planning and decisionmaking process
Business Intelligence Needs for
Performance Management
Performance data
Scorecards,
Executive Dashboards
EXECUTIVES:
Need visibility into progress
towards our goals, objectives
“Am I achieving my goals?”
MANAGEMENT:
Need timely trends, summaries,
analytics of our operations
Trend, summary
data
Operations Dashboards
Analysis Tools
Detailed data
Detail Reports
Basic Report Tools
“How am I doing?”
“What should we be doing?”
KNOWLEDGE WORKERS:
Need to analyze trends and root
causes
“Why is this happening?”
STAFF:
Need detailed reports in many
formats and ad-hoc access
“What is going on?”
“What do I need to do?”
Performance Management Process
Review and Plan
Performance
Information
Report and Analyze
Monitor and Measure
PM Process Example: Recruiting and Admissions
Review and Plan
•Enrollment Levels
•Campaigns
•Financial Aid Levels
Performance
Information
Report and Analyze
•Yield rates, Trends and Causes
•Campaign Effectiveness
•KPIs vs. External Benchmarks
Monitor and Measure
•Track Enrollment Funnel
•Recruiting programs
•Budget Execution
PM Process Example: Advancement Campaign
Management
Review and Plan
•Budget Expectations
•Fund-Raising Campaigns
•Capital Campaign Targets
Performance
Information
Report and Analyze
• Accounts to Donors
• Financial Statements
• Variances and Trends
Monitor and Measure
•Spending Patterns
•Campaign Effectiveness
•Budget Execution
PM Process Example: Grant Management
Review and Plan
•Grant Budget Expectations
•Indirect Cost Recovery Rates
•Grant Expense Timing
Performance
Information
Report and Analyze
Monitor and Measure
•Effectiveness/Burn rate
• KPIs, Trends and Variance
•Granting Agency reports
•Proposal pipeline
•Grant Spending
•Indirect Cost Recovery
Metrics
OK – I know I want performance
management, but what should I measure?
What is a “KPI”?
“What gets measured,
gets done.”
10 Characteristics of Effective KPIs
1. Aligned
Always aligned with your institution’s strategy and objectives
2. Owned
Someone must be accountable
3. Predictive
“Leading” indicators of desired performance
4. Actionable
Timely data, providing owners and managers with
opportunities to intervene and impact
5. Easy to understand
Definition, trends and status should be obvious to user
Source: Performance Dashboards, Eckerson
10 Characteristics of Effective KPIs
Few in number!
1.
Too many = loss of focus
As few as reasonably possible
Balanced and linked
6.
KPIs should balance and reinforce each other
Don’t create KPIs that undermine others
Trigger changes
7.
Measuring should enable insight leading to positive changes
Standardized
9.
Calculations, numbers, assumptions should be the same
across the institution so that metrics can be compared
10. Context driven
KPIs tailored to user roles and their processes
Provide targets and trends to see where you are and in what
Source: Performance Dashboards, Eckerson
direction you’re headed
Pitfalls of KPIs
Less is more
Too many metrics will cause metric overload and nobody will
use them
Have one version of “the truth”
Indicators need to be looked at as a group
Cannot focus on one area at expense of others
People start making decisions that undermine other KPIs
Performance indicators don’t tell the whole story
Show trends but not why trend is occurring
Be wary of simplistic comparisons
Explore the drivers of performance for comparative insight
Longitudinal analysis more robust than lateral comparisons
KPI Example
Scorecards and Dashboards
OK – I know my KPIs, but how do I monitor
our status and progress on achieving our
goals and targets….
Scorecards vs. Dashboards
Scorecard
Monitor the execution of strategic
objectives and initiatives
Network of metrics, planning targets,
thresholds, history, and
accountabilities that connect
strategy to individuals
Often deployed using a formal
methodology such as the Balanced
Scorecard or Malcolm Baldridge
Criteria
Emphasize collaboration
Dashboard
Compound view of
performance information
made up of scorecards,
graphs, and summary
views
Monitor overall
performance daily at a
glance
Provide data visualizations
of performance status and
trends
Personalized for user
Both provide data navigation and analysis capabilities so
that users can quickly analyze root causes and effects as
well as identify the impact of performance problems
Scorecard Example
Begins with institutional plans
Performance measures identified to monitor progress
Scorecard View
Goals, objectives, performance targets configured into Scorecard
Assessment of progress provides visibility into performance
Executives on a goal or objective to learn more about related performance outcomes and key initiatives
Goals
Objective
s
Assessment
of progress
towards
goals and
objectives
Scorecard Example
Objectives enable executives to monitor progress towards related
Key Performance Indicators (KPIs) and initiatives
Scorecard Example
KPIs have targets, actuals, assessments, management comments
Actual values loaded from data warehouse foundation
Drill-down to reports and analytics
Scorecard Example
Initiatives and Milestones Are Also Monitored
Dashboards
Different dashboards for different purposes
and user types
Strategic
Tactical
Executives, managers
Managers, analysts
Operational
Supervisors, specialists
What Makes a Good Dashboard?
Fits Role of Target User
What are the most important business questions they need to answer?
What KPIs are they accountable for?
How much time is spent on monitoring vs. analyzing vs. collaborating?
Meets performance monitoring needs
What is the time horizon they monitor (hourly, daily, year-over-year)?
Which KPIs are leading (process) vs. lagging (outcome)?
What is the highest meaningful level of detail?
Provides easy data navigation/analysis
What type of visualization or chart is appropriate for the user?
Which KPIs should have their trends compared?
What is the lowest level of detail needed to analyze cause-effects?
Dashboards are not one size/fits all
Dashboards need to be tailored and flexible
What Makes a Good Dashboard?
Monitor overall performance at a glance
Multiple charts provide coverage of all KPIs
Charts highlight good and bad performance exceptions
Data is refreshed at required frequency
Navigate and filter data to analyze trends
Population filters are simple to apply and shared
Drill-down navigation paths are intuitive
Level of detail required for cause-effect analysis available
Support for collaborative, data-driven decision-making
Views and analysis can be shared
Level of detail for taking corrective actions available
Dashboards are not 4 reports on a page
Dashboards need to be dynamic
Dashboard Example
Personalized
view of KPIs
Multiple charts
provide status ata glance
Leading and lagging
indicators of
performance
Common KPI and
business rules
definition
Dynamic charts along with
data drilling navigation to
analyze trends further
Good Performance Management Solutions
Aligns the organization
Strategy has driven development of objectives and measures
Common KPI definition with shared dimensions
Monitors Key Performance Indicators (KPIs) of both strategic and operational
performance
Sets targets for measures that are achievable
Enables understanding of what’s important and what’s changed
Promotes proactive versus reactive decision making
Crystallizes “single version of the truth”
Reduces time and effort required to answer ad-hoc questions
Exposes business trends sooner and supports shortened decision cycles
Allows management by exception
Based on data warehouse foundation
Reduce risks to development and deployment
Acceleration of ROI
Designed for analytics performance
Use of architecture best practices for scalability and extensibility
Performance Solutions
Bringing Value to All Levels of the Institution
EXECUTIVES
Performance
Data
Scorecards for
Performance Management
MANAGEMENT
Dashboards, Reports and
Analytics to Monitor Progress
Trend,
Summary
Data
KNOWLEDGE WORKERS
Ad-hoc analysis tools to identify
and understand trends
STAFF
Detailed
Data
Production reports and
ad-hoc access for
daily operations
29
August 17, 2019
Confidential and Proprietary Information – SunGard Higher Education, Inc
Open to the Floor
Questions
Comments
Thank You!
DR. Tb. Donny Syafardan
tbdonny@gmail.com