Wednesday Jan 22, 2014

Scorecards in the Wild West?

Oscar Pardo, a Solutions Consultant for Oracle, works with Federal, State and Local governments helping them to herd their wild KPIs and establish scorecards to meet US requirements from the President. I had the pleasure of interviewing Oscar during a podcast and he gave some sage advice on what to expect when building scorecards.  He described how Oracle Scorecard and Strategy Management is just the Sheriff you need to help tame your runaway KPIs, and manage your performance.

Oscar began the interview by defining what public sector organizations are trying to accomplish with their business scorecards. Agencies like the Department of Homeland Security, the Veterans Administration, and Health and Human Services are enormous (the size of some of the largest companies in the world!) and need tools to help them understand where they are performing well, and where they are underperforming. Basically, they are trying to accomplish the same things that private sector companies are striving for. Things like:

Transparency to their public
Insight into how well they are running and where they can take actions to improve
Accountability for their funding. With the close scrutiny of funds and cost cutting in budgets, agencies are more accountable than ever for their funding
A better grip or control of what is occurring and what actions they can act on  
A way to monitor those actions and make sure they are working

Oscar also mentioned the most challenging aspects of creating scorecards were:

Developing the right KPIs, and getting consensus. This is like walking around in the Wild West. Everyone wants KPIs for themselves – there is often little organization and few rules around choosing them or deciding how to use them.
Defining the Key Performance Indicators. This takes a lot of time and effort
Locating where the information resides. This takes the longest amount of time. Federal Agencies have a harder time of it, because they have a greater volume of data because they are larger organizations. Information resides in many different systems and is measured at different levels.

Interestingly enough, the most challenging aspects were not software related!



So what part does software play in scorecards? According to Oscar, scorecard software acts like a Sheriff would in the Wild West, upholding the laws. Without the Sheriff enforcing the laws, in this case guidelines, executives will ask for more and more KPIs – then the data collection activity, reporting, and subsequent activities will get out of hand. Here is some advice Oscar shared to help:

Have a single champion, group, or department that is in charge of determining what makes sense to capture and what will have the greatest impact to the organization, because there is a big cost in collecting and maintaining this information. – The champion is like the town Mayor; setting the rules that the Sheriff enforces.
Develop an Office of Strategic Management (or other performance management governing department) or appoint individuals to appropriately define KPIs and objectives. They can then help the Mayor so KPIs can be implemented quickly and uniformly across the organization.
Don’t wait. Too many times I hear customers say, “Let’s wait until next year” or “After the next reorganization or administration”.  With a strong governing agency that is responsible for scorecards, those excuses are no longer valid.  The job of an incoming administration would actually be easier because they have visibility into the organization on Day One.

So what benefits are public sector agencies experiencing with scorecards? Is it worth their while? Oscar told us YES, it is worth their while and here’s why:

Monitoring performance is so much simpler. The Oracle Scorecard and Strategy Management product gets you up and running quickly.   You don’t have to build it, and it comes with the Oracle Business Intelligence Foundation Suite.
Scorecards and Business Intelligence naturally go together. Scorecard initiatives work well with a formal Business Intelligence / Data Warehouse in place.  
Mobile scorecard capabilities.  Having scorecard information available on your mobile device enables you to take this information with you and act upon it without being tied to your desk or office.
Build it with market prevalent Scorecard methodologies like Balanced Scorecard or Six Sigma.  It has an easy to use interface to help agencies define goals and objectives, then facilitate the building of KPIs to track and meet these goals and objectives – all within the same tool the organization uses to do its BI reporting.
Informative visualizations like Contribution Wheels, Strategy Trees, Watch lists, Cause and Effect Maps, and Strategy Maps are available automatically.  

Oscar told us that Oracle made a great decision in making Oracle Scorecard and Strategy Management part of the BI Foundation which marries technology with the scorecard methodology (the Sheriff).  Add the Mayor and other constituents to work with Oracle Scorecard and Strategy Management, and you too can tame YOUR Wild West.

To listen to the entire podcast, click here.
To learn more about Oracle Scorecard and Strategy Management, click here.

Monday Oct 28, 2013

Taking Your Business Scorecard Golfing

Our workplace world is definitely changing. Not only are we taking work home, but we are working during odd hours in some very strange places.  I had the pleasure of interviewing Jacques Vigeant, Product Strategy Manager for Oracle Business Intelligence and Enterprise Performance Management, on a Podcast, and he enlightened me about how our mobile devices and business scorecards are enabling us to be more accountable and keep a watchful eye on business – even while on the golf course.

Business scorecards have been around for many years - so I asked Jacques if he felt they had changed significantly due to technology. His answer was, “Yes, and no.”  Jacques agreed that scorecard enthusiasts are still passionate about executing the company strategy and monitoring Key Performance Indicators (KPIs), but scorecards and Business Intelligence (BI) as a whole have changed.  He explained that five to six years ago, people did BI work at the office and, for the most part, disconnected from their computer and workplace when they went home – with the exception of checking email and making a phone call or two. But now, that is no longer the case. People are virtually always connected with work and, more importantly, expect their BI and scorecards to be ‘always on,’ regardless of whether they are at their desk or somewhere else.

Basically, the BI paradigm has changed from a 'pull' model, where employees are at their desks querying or pulling information from the system, to a 'push' model where employees expect their BI and scorecard systems to reach out (or push information) to them when there is something of note to learn or something on which they need to take action.

I found this very interesting. However mobile devices do have their limitations with respect to screen sizes – does it really make sense to look at your strategy/scorecard on tiny devices? What kind of scorecard activities can you really expect to be able to do? Jacques’ answer was very logical. “When you think of a scorecard, it is really comprised of an organization of KPIs that are aligned with the strategic objectives of your company. KPIs are the heart of how you will execute your strategy. So, if you decompose that a little more, each KPI is well defined with the thresholds that you should keep an eye on and who is responsible for them. When we talk about scorecarding on a phone, we aren’t talking about surfing the strategy and exploring the strategy map like we do on the desktop. In a scorecarding context, we use the phone more as an alerting mechanism or simple monitoring device for your KPIs.”

Jacques gave a great example of an inventory manager who took part of an afternoon off to go golfing before winter finally hit, and while on the front nine holes, his phone vibrated. His scorecard was alerting him that the inventory levels for one of the products was below some threshold that he had set.  From his phone, he had set up three options within Oracle Scorecard and Strategy Management (OSSM) for this type of situation:

  1. Contact the warehouse manager directly by phone and work it out (standard phone function)
  2. Tap/hold the KPI and add an annotation to the KPI in OSSM using the dictation capabilities of the phone and deal with it more fully when he gets back to the office
  3. Tap/hold the KPI and invoke a business process from OSSM to transfer product from another warehouse with higher stock levels to the one that needs it 



Being on a phone should still give you options to quickly deal with situations as needed, but mobile phones are not designed for nor should try to replicate the full desktop experience.

We covered other interesting subjects in the interview, including how Oracle is keeping pace with mobile innovation and new devices such as Google Glasses, Galaxy Gear, Pebble Watches and more, and how Oracle is handling mobile security– which is great news for our mobile workforce.

To listen to the entire Podcast, click here.
To learn more about Oracle Scorecard and Strategy Management, click here.



Wednesday Aug 07, 2013

Forward Looking DC Courts Improves Processes and Sets the Bar in Managing Strategy and KPIs

Recently, I had the pleasure of interviewing Peter Smolianski, Chief Technology Officer for the District of Columbia Courts (DC Courts) about their five year strategic plan that they are successfully communicating and monitoring through the use of scorecards and dashboards. They are making fantastic progress in supporting their constituents and openly reporting progress on their plan. Following are some of the interesting points covered in our interview about DC Courts’ vision and how they are using Oracle Scorecard and Strategy Management to attain that vision.

Peter began by giving our listeners a brief overview of DC Courts and why they are so unique. In summary, they are a federally funded organization whose judicial officers are confirmed by the President of the United States. They are a fully unified judiciary, which means that they have municipal, county, and state level courts all managed together. They handle probation, mediation, and marriage services within the courts - unlike many other U.S. court systems where such services are all completely separate. DC Courts has 1,500 employees, 150 judges, and processes about 150,000 new filings each year comprised of civil litigations, landlord and tenant cases, small claims, criminal, family, probate, tax cases, domestic violence, and more.

DC Courts is one of the very few courts that has implemented scorecards and has a publicly published 5 year strategic plan. Why is this so unique? “There is no legal requirement to publish a strategic plan,” said Peter. He then told us about the National Center for State Courts (NCSC), an organization that helps to define standards and measures for Trial Court and Appellate courts, including recommended performance management standards, best practices, and Key Performance Indicators. “Courts are not mandated or required to institute these standards,” he said. 




So why are they doing it? DC Courts Executive Office established the Office of Strategic Management to help them set, administer and monitor their strategic plan and related activities. The purpose of each 5 year plan is to improve court proceedings and processes. By reporting this to their constituents, they are demonstrating responsibility to constituents and also providing themselves with a structured way to improve, complete with accountability built in.
As publishing a five year plan and scorecard is unique in this field, I asked Peter to describe what parties were involved from DC Courts and where the data comes from?

Peter told us the following. “Research and Development is the group responsible for developing the measures and for conducting surveys [to get data]. The office of Strategic Management develops the strategic plan. It is responsible to provide the data and deliver reporting – in this case personalized dashboards with scorecard results included. And recipients of the results are responsible to enter data that is not available through other court or IT systems.” Peter also told us that an unexpected benefit was the ability to show scorecard performance on personalized dashboards for each of the executives. “This is a really welcome benefit to help each of the executives analyze and monitor performance of interest to them,” said Peter.

There is so much more to the interview, but my final question to Peter was about what he felt the #1 lesson learned was by DC Courts when they implemented Oracle Scorecard and Strategy Management. His reply was very insightful. “Scorecards are a tool to implement what you have already built with respect to strategy and KPIs. You need to know what you have now and what you want to do in the future. The tool does not help you if you don’t have a strategy. Oracle Scorecard and Strategy Management enables you to automate your approach. Either select the Norton and Kaplan Balanced scorecard framework or another approach, but you need to follow an approach to effectively execute your strategy.”

Great advice! DC Courts are making some great strides in setting strategy and executing on it, and are really setting the bar for other US Courts.

To listen to the entire podcast, click here.

To learn more about Oracle Scorecard and Strategy Management (OSSM), click here.

Tuesday Jun 11, 2013

Actions Speak Louder in Scorecards

I had the pleasure of interviewing Jacques Vigeant, Product Strategy Director for Oracle Scorecard and Strategy Management for Oracle Corporation, about the use of embedded actions in scorecards and their effect on organizations. Most discussions about scorecards typically focus on traffic lights or maps, grids of numbers or objective definitions, but this discussion had an interesting twist. Jacques told our audience how actions, defined and embedded into scorecards, can improve individual performance and improve the ability to execute strategy.

We started the discussion with Jacques’ definition of a scorecard. Jacques told us that scorecards are a set of tools and techniques that extend the Business Intelligence (BI) system to provide a language that can be used to define a corporate strategy and to define the goals and objectives that support achieving that strategy. Scorecards also provide a set of tools to enable businesses to define key business metrics or key performance indicators (KPIs) that are in support of the strategy. All of this is to effect change – if you cannot effect change, then you are wasting your time.

So how do actions fit into this definition? Jacques told us that actions are a complementary technique to effect change – you define actions with objectives, goals and KPIs, enabling the user of the scorecard to perform the action complementary to the status of the object based on who they are. What kind of actions are we talking about? According to Jacques, there are three basic types of actions:

     + Navigation to another system or website
     + Trigger scripts or Java methods to invoke sophisticated tasks
     + Trigger any Oracle Fusion Application workflow

“Actions are a real strong suit for Oracle,” said Jacques. They are also a differentiator. All key business workflows from Oracle Fusion Applications are available as web services and because of this, Oracle Scorecard and Strategy Management can surf through and use a repository of thousands of Fusion Application business processes and workflows. With this in mind, business users can choose to associate workflows with objectives, KPIs and initiatives, and trigger them based on who is viewing the scorecard object and the status the object is currently in.

Actions in Oracle Scorecard and Strategy Management

Some actions are as simple as linking to another system to dig deeper into a KPI to understand the roots of the data, or launching into the HR system to look at an HR record for an employee whose scorecard you are currently viewing (with permission, of course). But you can also do much more sophisticated things like trigger a true workflow. Jacques gave the following HR example. Let’s say your competitors have been pillaging your staff and hiring them so your headcount KPI is in steady decline. Based on the status of the KPI and the fact that you are logged into the system, from your dashboard or scorecard you can trigger a workflow action to open a job requisition in another system. And because this business workflow is available as a web service with Single Sign-On to OSSM, you do not need to leave the OSSM environment. 

Jacques also gave other examples of workflow actions that can be triggered such as presenting forms to fill out to adjust a forecast or some kind of data capture that makes sense. Actions can be reactive or proactive in nature and you can choose to do different things based on the data. Actions can support individual jobs, departmental functions and/or corporate strategy.

In short, actions do speak louder in scorecards.

To listen to the entire podcast, click here.

To learn more about Oracle Scorecard and Strategy management, click here.

Wednesday May 08, 2013

Gaining Strategic Alignment with Business Scorecards

Recently, I had the pleasure of interviewing Mr. Trey Robbins, Managing Director for Technolab, a Platinum Oracle Partner, for a Podcast. Trey and I discussed the implementation of Oracle Scorecard and Strategy Management (OSSM) at Technolab, and the important results they have achieved.

Trey told our listeners that Techolab wanted to translate their Balanced Scorecard framework into an online tool so that they could align their corporation in all the countries and hold people more accountable for achieving goals and corporate strategy. Managers update their measures and part of the corporate strategy manually, and then meet on a quarterly basis virtually (via phone and webcast) and in person on an annual basis. They walk through the overall corporate objectives and how they are tracking including the budgets and targets they have set.

In addition to strategic alignment, Technolab is also experiencing operational and financial benefits from OSSM. Trey told us that when he was first hired at Technolab, he saw lots of good ideas from the company brought forward in meetings and brainstorming sessions, but after the meetings were over and everyone went back to their day to day activities, the great ideas were lost. By using the scorecard tool, they document the good ideas, assign responsibility and track their progress.

An example of an operational improvement that Trey described was tracking the compliance of the entire organization around certifications that their consultants need to have for implementing software for their customers. Certification and re-certification for each region of Technolab is extremely important to the company, but difficult to monitor. Technolab now has software certification as an objective for each region and country and the company expects to see green lights on this objective at each meeting, or have a really good explanation of why they don’t. “When you go in front of your peers and management and you have certain things that you are responsible for, you are going to make sure you are executing on those. You don’t want to go into your meeting unprepared, and you definitely don’t want to go into your meeting with a bunch of red traffic lights,”said Trey.

When asked about some of the lessons learned from the initial implementation, Trey had some good advice. 

    
 1. Understand all the components needed to track strategy, measures and activities before using a tool. If you jump straight into the software, you will be missing components and that will slow you down. Understanding everything your organization wants to track and everything that your scorecard tool needs will enable you to speed through implementation.

     2. At the beginning of implementation, hold executive status meetings on a monthly basis rather than quarterly. The more visibility you have, the more consistent the message you articulate, the easier it is to execute.

    
3. Leverage the use of mobile capabilities more. Enable the executives to review the status of objectives and activities frequently and ‘on-the-go’.

Implementing Oracle Scorecard and Strategy Management (OSSM) gave Technolab a better way to manage their international business activities, align everyone around the corporate strategy and move the entire company towards achieving that strategy.

To hear the entire Podcast click here.

For more information about Oracle Scorecard and Strategy Management (OSSM) click here.


Tuesday Apr 16, 2013

Enrich Your Scorecard with Metadata That Actually Matters

Oracle has released another interesting Podcast – this one is about how Oracle Scorecard and Strategy Management can help you drive behavioural change and improvement at the same time by using metadata that actually matters.

I had the pleasure of interviewing Jacques Vigeant, Product Strategy Director for Oracle Business Intelligence and Enterprise Performance Management and Oracle Scorecard and Strategy Management (or OSSM) about this subject.

After covering the basics about what a scorecard is and how it differs from a BI system or dashboards, we went on to discuss how scorecards should traverse dimensional structures, not just go up and down the hierarchies (like a typical BI system does) but also jump from one hierarchy to another to tie important data together.

Then we got to the heart of the Podcast – metadata that really matters. Jacques told us why accountability is so important – understanding WHO is under or over performing and HOW that performance relates back to the organizational strategy is key to pushing strategy forward. It is difficult to modify behavior if accountability is not included.

Jacques further explained that traditional BI metrics are typically focused around aggregating metadata along a single hierarchy. For example, we all know intuitively that a very high attrition rate in a company can impact the profitability of the company.  Traditional BI metadata focuses on aggregating metadata for HR attrition rates by HR dimensions, like attrition by department or region, but in this example, there is still a chasm between the HR data and financial data. Oracle Scorecard and Strategy Management (OSSM) enables you to draw relationships between your measures that are not necessarily based on aggregate tables or dimensional hierarchies – rather by business insight. You can literally drag and drop scorecard metrics on top of each other to get a better snapshot of what is going on. Jacques provided the following example, “Let’s say my attrition metric has an impact on my employee effectiveness metric, which has an impact on employee productivity, productivity has an impact on cost, and cost has an impact on profitability. You can drag all of these metrics on top of each other to get a whole company understanding of the impact of attrition rate on profitability”. This is new insight about the relationship. Once we understand this relationship, there is now a financial basis for management to ensure that the attrition rate stays within acceptable parameters – which can lead to a change in management behavior.

How does this type of insight help? Jacques explained that OSSM provides a set of metadata that is actually captured by the user using the system, providing new business insight. As more users use the system you are gaining more and more business insight. You get a network effect of new and better business insight as more people use the scorecard tool. This is not the same kind of metadata as traditional metadata that simply describes the existing dimensions.

Near the end of the Podcast Jacques also told us more about how the use of metadata that matters (including accountability) with financial objectives and data and operational metrics and data, can all roll up into the strategy tying everything together. The ability to keep the data current enables users to get a really good picture of the state of the strategy at any time, and which elements are most important to monitor to move the strategy forward. There are really great visual diagrams within OSSM that help you to literally see what is happening.

Jacques provided other interesting examples and useful information about metadata that actually matters in scorecards and how it can help encourage organizational change during the Podcast. I encourage you to listen to the entire interview.

To hear the entire Podcast click here.

For more information about Oracle Scorecard and Strategy Management (OSSM) click here.

Friday Feb 01, 2013

Not Your Father’s Scorecard

If you are new to the world of Business Scorecards – Welcome! If you have been at it for a while, it might be time to have another look at what your scorecard is doing for you.

Jacques Vigeant, Product Strategy Director for Oracle Business Intelligence and Enterprise Performance Management, was interviewed in a podcast by Nigel Youell, Director of Product Marketing for Oracle Performance Management Applications, and had a very interesting discussion about the business value that scorecards add to dashboards. To listen to the podcast click here.

To summarize, Jacques explained that dashboards are really about monitoring organizational metrics, usually including data that has been rolled up by dimensions relative to the business. Typically they are single page dials and graphs that give you information about trends and data in a point in time. Very useful for keeping track of what has happened. Whereas scorecards can provide a huge amount of business value by supplying additional information about how those metrics are related to the business strategy, which metrics are particularly important, what impact a particular metric has on the strategy, and who is accountable for the metric. This additional information enables employees to better evaluate their own impact on strategy and effect real change based on the metrics and initiatives they can influence.

According to Jacques, not all metrics are created equal. Some have a much bigger impact on strategic outcomes than others. For example, the number of units sold is a good metric to watch, but the profit on those units sold is MORE important. Importance can be seen through weightings placed on metrics relative to the strategy, and through maps showing how each of the metrics are related – cause and effect style.

The BIG news however is how scorecard functionality is changing, and Oracle is investing here.   Oracle Scorecard and Strategy Management, or OSSM, has taken better decision making very seriously. Oracle has introduced the concept of ‘actions’ and invoking those actions based on who is viewing the scorecard (position in the organization) and which metric they are viewing. If a value has gone wrong (or very right) a list of suggestions – based on the individual viewing the metric – can be presented to the user. In some cases, it is appropriate to automatically invoke a business process, trigger a workflow or initiate a job requisition based on a metric result value. In other words, intelligence can be built in to assist employees to make better business decisions every day. In addition, employees can support each other even more in making better business decisions through written collaboration and annotations on metrics and initiatives and what is happening to improve them.

Finally, reporting has changed to improve understanding of how each metric contributes to the organizational strategy.  Strategy maps show relationships between objectives, but can also show relationships to specific metrics. The ‘contribution wheel’, a patented graphic that Jacques himself designed, beautifully depicts how each metric and initiative contributes to the overall strategy in one graphic.   





So as you can see, Oracle Scorecard and Strategy Management is not your father’s scorecard. It has moved on to enabling managers and business leaders to see the impact of initiatives and metrics on the organizational strategy and, more importantly, helping to modify the behavior of employees to make better business decisions every day. At the end of the day, Oracle Scorecard and Strategy management can help provide enough business context so that everyone can make better business decisions every day. When this happens, achieving organizational goals and strategy is possible!


To listen to the Podcast, click here.

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This blog will highlight key EPM market trends, recent events and other news of interest to our field, customers and partners.

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