Performance ManagementPerformance ManagementPerformance Management: Performance Management: More Than Just Balanced Scorecards
Speaker: Dan BulosPresident Symmetry CorporationPresident, Symmetry Corporation
Bay Area Microsoft BI User Group y pMarch 2011
Mark Ginnebaugh, User Group LeaderMark Ginnebaugh, User Group Leader [email protected]
©2011 Symmetry Corporation http://www.symcorp.com
Performance Management A Prescriptive Design
Dan Bulos – [email protected]
©2011 Symmetry Corporation
Performance Management (PM)
http://www.symcorp.com
The methodologies, metrics, processes and systems used to monitor and manage an
enterprise's business performance
Function Measures HR People
IT Applications
Finance Cost Center
Sales Representatives
Marketing Products
Manufacturing Process Line
A single measurement that ranks members along a scale that
encompasses many metrics
©2011 Symmetry Corporation
End-To-End Business Logic
http://www.symcorp.com Data
Report Cards
Measures
KPIs
Score
Metrics
Tolerances
Budget Plan
Forecast
Benchmarks
Perspectives
Initiatives
Organize
Catalog Audited Accurate Approved
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Prescriptive Design
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Data Warehouse & Analytics Design from the data up
Performance Management Design from the usage down
Crafted Manufactured
Consistency Counts
PM – A different design
Many Facts Different Shapes
Diverse Units Disparate Granularity
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PM – Lots of Moving Parts
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Availability Window
SLA Minutes Day
Critical Minutes Application Incidents
Incident Day
Incident Count Application
Impacted Users Incident
IsDown
InSLA/InCritical
Financials
Amount Month
Scenario
Account
Server
SLA Target
Uptime % Month
Impaired % Application
Tolerance
Target Month
Tier 1 KPI
Tier 2 CIO
Tier 3 Change Requests
CR # Day
Emergency CRs Application
Unsuccessful CRs Unit
©2011 Symmetry Corporation
PM – Taming the Chaos
http://www.symcorp.com
Metric
KPI Actuals Target Var Var % Tier X Score Grade Weight Last Yr Chg Chg %
Availability
Up Time %
In SLA %
Change Mgt
#CRs
Sucessful CRs
Homogenize the Structure
©2011 Symmetry Corporation
Process Define Performance Mgt Objects ▪ KPI & Metric Dimensions/PerfMgt Measure Create Calculated Measures on Base Data ▪ Up Time = 1 – (Incident Time / SLA Time) Push Down Data (if needed) ▪ Monthly Targets from Yearly Targets Twist Data to PerfMgt Measure ▪ Orient the Information for Reporting Calculate Metrics ▪ Variance & Change Score & Grade
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©2011 Symmetry Corporation http://www.symcorp.com
Definitions
©2011 Symmetry Corporation
Definitions - MMK Measures ▪ Operating data
▫ Atomic or Aggregated
Metrics ▪ Measures compared
▫ vs. Budget/Last Year/Sales/Average
Key Performance Indicators (KPI) ▪ Measures/Metrics scored
▫ What is good, bad, or acceptable ▫ Business Process/Responsibility
http://www.symcorp.com
©2011 Symmetry Corporation
Definitions – KPI Groupings
Objectives ▪ Defined Strategic Goals
● Improve Cust Sat
Initiatives ▪ Time specific projects
● Refurbish plant
Perspectives ▪ High-Level focus areas
● Operations, Sales…
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Collections of KPIs and subordinate
Objectives & Initiatives
Scored as a
function of the KPI scores
©2011 Symmetry Corporation
Definitions - Scorecard
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The Balanced Scorecard is a strategic planning and management methodology that is used to align business activities to the vision and strategy of the organization, improve internal and external communications and monitor organization performance against strategic goals
1: a body of methods, rules, and postulates employed by a discipline 2: a particular procedure or set of procedures
A Performance Report Card is a set of Key Performance Indicators (KPIs) that are managed and scored (graded) through a responsibility based business process and organized into grouping that show influences to each other and to strategic or operational objectives or initiatives
Scorecards are generally deployed as a
part of a performance dashboard
Scorecards
©2011 Symmetry Corporation http://www.symcorp.com
The 3Ts of Performance
Budgets & Goals Variance % Variance Better/Worse Any to Any
Over Time YTD, Moving Totals Period over Period Last Year Growth %
Within a Group % of Total Rank Average Top & Bottom
Target Trend Typical
©2011 Symmetry Corporation http://www.symcorp.com
Reporting Spectrum
D i s c o v e r y
P r o d u c t i o n
Parameter Driven
Advanced Visualization
Highly Formatted
Tables, Crosstabs, Charts, Graphs
Managed Analysis Dashboards
Ease of Development
& Usage Paramount
Customization & Distribution Alternatives
Depth & Quickness
of Analytics
Guided Analytics
Programmer Developed
Line Developed
Staff Developed
Interactive Navigation
©2011 Symmetry Corporation http://www.symcorp.com
Design
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Smart KPIs
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Specific – Clear on what is being measured
Measurable – Accurate and consistent
Actionable– Influence to alter the outcome
Relevant– Significance and leverage
Timely – Appropriate intervals
©2011 Symmetry Corporation
KPI Characteristics Every KPI has: ▪ Class – discrete, continuous, interval ▪ Type – financial, volume, rate, % ▪ Polarity – direction of goodness ▪ Time Frame – period of measure ▪ Owner – person responsible Might Have: ▪ Components
● Net Sales = Gross, Returns, Breakage ▪ Influences
● Revenue :: Price, Interest Rates
http://www.symcorp.com
©2011 Symmetry Corporation
KPI Classes
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Discrete - Sum or count or a time period Monthly Sales, Quarterly Hires, Daily Traffic
Continuous – Value at a sample time period Cash, Inventory, Employees (Balance in Finance)
Interval – Events - begin/end time/date Response Time, Order Fulfillment, Down Time
©2011 Symmetry Corporation
KPI Types
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Financial Currency can be important
Volume Unit of measure is always important
Rates & Percentages Rate has a unit of measure (price) Percent is a portion of the whole (gm%)
©2011 Symmetry Corporation
KPI Polarity
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Increasing is BETTER Sales
Variation is BAD Inventory
Decreasing is BETTER Cost
©2011 Symmetry Corporation
PM Objects Dimensions ▪ KPI
● Name – Key Attribute (hidden) ● KPI – Parent Attribute ● Class – Member Property (hidden) ● Type - Member Property (hidden) ● Polarity – Member Property (hidden)
▪ Metric ● Flat Dimension (IsAggregatable = False)
Measure ▪ PerfMgt – A calculated Measure
http://www.symcorp.com
©2011 Symmetry Corporation
Twist Base Measures Scope([Measures].[PerfMgt]); Scope([Metrics].[Actuals]); [KPI].[UpTime] = ( [Measures].[UpTime], Root([KPI]) ); End Scope; [Metric].[Tier 1] = ( [Measures].[UpTime], Root([KPI]) ); End Scope;
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©2011 Symmetry Corporation
Calculate Metrics
[Metric].[Variance] = Case When [KPI].CurrentMember.Properties("Polarity") = "Positive" Then [KPI].[Actuals] - [KPI].[Target] Else [KPI].[Target] - [KPI].[Actuals] End;
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©2011 Symmetry Corporation http://www.symcorp.com
Scoring
©2011 Symmetry Corporation
Why Score ?
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KPIs of different classes or types or units of measure
can not natively be either Compared or Aggregated
Sales went up by $1mm GM% went up by 1.5%
Which is good/better?
The efficiency initiative has Sales per Employee &
# of Complaints What is the total?
Scoring levels KPIs to a common scale Try to score based on a percentage – Variance % not Variance
©2011 Symmetry Corporation
Score by Scale
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Method used by PerformancePoint Services
Scoring Directly by
Variance % is the most Common
©2011 Symmetry Corporation
Score to Bucket
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Scope (KPI Set); [Metric].[Score] = Case When [Metric].[Var%] >= [Metric].[Target] Then 5 -- A When [Metric].[Var%] >= [Metric].[Target] + [Metric].[Tier 1] Then 4 -- B When [Metric].[Var%] >= [Metric].[Target] + [Metric].[Tier 2] Then 3 -- C When [Metric].[Var%] >= [Metric].[Target] + [Metric].[Tier 3] Then 2 -- D Else 1 -- F End; End Scope;
Pick a scale [1, 100], [-1, 1], [1-5] Create a bucketing strategy # of Buckets is # of Tiers + 2 Uneven buckets influence a bubble up strategy Forces outliers into scale – reduces outlier impact
Careful: Zero in a scale can throw off weighting
©2011 Symmetry Corporation
Aggregate Scoring Strategy
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Average Bubble Up
What is the overall performance?
Identify hidden problem areas?
Increase weight of poor performers
Score based on performance count
Weight based on influence factors
Score based on constituent scores
©2011 Symmetry Corporation
Weight & Aggregate Scores
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Scope (Descendants([KPI].DefaultMember, , LEAVES)); [Metric].[Weighted Score] = [Metric].[Score] * [Metric].[KPI Weight]; End Scope; Scope ([KPI].Members - Descendants([KPI].DefaultMember, , LEAVES)); [Metric].[Weighted Score] = Sum( [KPI].CurrentMember.Children, [Metric].[Weighted Score] ); [Metric].[KPI Weight] = Sum( [KPI].CurrentMember.Children, [Metric].[KPI Weighted] ); [Metric].[Score] = [Metric].[Weighted Score] / [Metric].[KPI Weight]; End Scope;
©2011 Symmetry Corporation
Grade KPIs and Objectives
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[Metric].[Grade] = Case When [Metric].[Score] > 4.5 Then ‘A’ When [Metric].[Score] > 3.5 Then ‘B’ When [Metric].[Score] > 2.5 Then ‘C’ When [Metric].[Score] > 1.5 Then ‘D’ Else ‘F’ End;
©2011 Symmetry Corporation
Scoring Along an App Dimension
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To Aggregate and Score
Or Score and Aggregate
Score and Aggregate
Embodies a strategy of even performance
Example – Sales Reps
Aggregate and Score One Rep doing very well can
cover for many under performing reps
Score and Aggregate All Reps must do well for the aggregate to perform well
©2011 Symmetry Corporation
Radar Chart
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Good at showing performance of
component KPIs
©2011 Symmetry Corporation
Symmetry – Who We Are
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Experience
Expertise
Engineering
Founded in 1986 Qualified Consultants min 15 years BI, 10 years MS BI
BI is our Specialty Business Solutions, not Technology Consulting, not Contracting
ADAPTTM Design Methodology PROOF Application Framework Fastest & Best POC/Demo/Prototypes
©2011 Symmetry Corporation
Symmetry & Microsoft
http://www.symcorp.com
“Technology” “Trusted”
“Teach”
Premier BI
Partner
“Teamwork”
Licensed technology to SQL Server group
Basis of SSABI
Embedded with PerformancePoint
dev team for 2 years
Frequent speaking engagements at MS conferences
©2011 Symmetry Corporation http://www.symcorp.com
Questions?
To learn more or inquire about speaking opportunities, please contact:
Mark Ginnebaugh, User Group [email protected]
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