balanced scorecard with the sas system - … chain hr sales, mktg ... balanced scorecard with the...

Copyright © 2000 SAS EMEA

Balanced Scorecardwith the SAS System

Jonathan HornbySAS Program Manager – Balanced ScorecardEurope, Middle East & Africa


Balanced Scorecard with the SAS System

Agenda

! Background! History of Measurement! Balanced Scorecard! The SAS Solution! Strategic Vision™! Creating a Rapid Prototype! Creating an Automated BSC! Highlights



Background - New Rules

e! The eWorld

! Cost of startup! Infrastructure cheap! Market recognition expensive

! Advertising! Trade shows

! Who pays?! Investors

! Venture Capitalists/ Banks/ Incubator Co’s! Shareholders

! What they want! Clear, coherent strategies! A way to measure their investment



eBackground - New Rules

! The eWorld changed everything! Old rules are out …established Co’s

can be overtaken, overnight! Focus is on future market potential! Due diligence at process level still

required … but …! Trillions of dollars spent on e-bonanza

! Where is it going?! How effective will it be?! Is there a proper strategy?! How can I differentiate tomorrow?! How can I recognise true success?




e! It’s not just the eCompanies

! How long before your bricks and mortarbusiness is overtaken by the eWorld?

! How quickly can you adapt?! Do you have the right staff?! Do you really know your customers?! Do you really know your suppliers?! Do you really know your business?! Do you really understand how everything is

linked?

Don’t worry …

You are not alone




e! What can you do?

! Introduce a Balanced Scorecard! Provides balanced benefits across the

entire business! Sustain & improve shareholder value

! Align, track & measure performance

! Monitor the health of your company

! Optimize resources throughout your.organization

! Secure future growth & adaptability



Background – Today’s focus

Your business ….

Business Areas Primary Focus Initiatives

Front Office

LOB, Mgmt, ExecsManagement

Customer

Organisation

OperationsBack Office Resources

CRM

EPMABC/M; BSC;KPI; EVA;Benchmarking;Budget/ PlanStrategy

ERMSupply ChainHR

Sales, Mktg & Service

can play and integrate in ALL these areas to provide analytic support, for specific Business Processes – not just discreet end user requirements



Background – Today’s focus

! Where BSC fitsInternal

BSC Fin Cust

Proc HR

Suppliers Customers

SRM CRM

e •Web enabled processes•Web data•Profiling

Transaction systems (operational applications)Information Infrastructure

BPMABC/M

Supply Chain

Supplier•Supplier Ranking•B2B Exchange Analysis•Supplier Risk Assess•Supply Chain Optimisation•Strategic Outsourcing

Customer•Profitability & LTV•E Channel Personalisation•Churn Prevention•Cross/ Up Selling•Channel Optimisation



History of measurement

Double-entryBook-keeping

ManagementAccounting

DuPont, etc.

OperationalImprovement

JIT/TQM/SPCTime-Quality-Cost

CompetitiveAdvantage

Porter, etc. - 5 Forces,Value Chain

ComparativeBenchmarking

Best Practices

CustomerSatisfaction

Customer Care‘ETDBW’

ShareholderValue

EVA*/SVA/FCFCost of Capital

Business ProcessReengineering

Hammer, etc.End-to-End View

Competencies/Capabilities

Hamel & Prahalad, etc.Core Competencies

Balanced ScorecardBalanced ScorecardKaplan & Norton, EFQM/Baldrige

15th Century

19th Century

Late20th Century

Financial Strategic Operational



! Traditional Management Focus! Financial measures! Sales performance! Production volumes

Managersfocus on theirarea withoutmuch thoughtfor others

Exec’sswampedwith 100’s ofindicators

Cost controleliminatesinvestment innew ideas

History of Measurement

! Problem ...! Already happened! Reactionary! Generates short term fixes! Lack of strategic focus



Balanced Scorecard (BSC)

! Framework to translate strategy intooperational terms in 4 dimensions

Researchsuggests thatin reality,companiesmay useanywherebetween 3 &6 dimensions

The need tocustomisesoftware istherefore veryimportant

strategy

Finance• Profit• ROI• Revenue mix• Growth etc

Customer• Satisfaction

• Retention• Profitability

• Market share etc

Learning &Growth• Employee satisfaction• Employee retention• Employee productivity etc

Internal Process

• Specific activities/ processes• Relevant to industry



Balanced Scorecard (BSC)

! A series of cause & effect links

CustomerPerspective

Access toStrategic

Information

DevelopStrategic

Skills

IncreaseEmployee

Productivity

AlignPersonal

Goals

IncreaseCustomer Satisfaction

Through SuperiorExecution

Increase CustomerConfidence in Our

Advice

Cross-Sellthe Product

Line

Provide RapidResponse

DevelopNew

Products

UnderstandCustomerSegments

MinimizeProblems

Shift toAppropriate

Channel

InternalPerspective

FinancialPerspective

LearningPerspective

ImproveOperatingEfficiency

ImproveReturns

BroadenRevenue Mix



BSC Key Issues

! Executive Sponsorship! Coherent voice/ message! Lead by example

! Identifying measures and drivers! Help from management consultants! Business Process Reengineering! Activity Based Costing

! Strategic navigation system

Creating oneversion of thetruth is onlyone part ofthe story …

Your feedbacksystem needsto be flexibleenough toevolve withyour needsandmethodologies



The SAS Solution

Comprehensive! SAS Institute delivers powerful analytic

solutions for strategic decision making across

! front office! management &! back office business areas



The SAS Solution

Evolving! SAS Strategic Vision™ has the ability to

evolve with strategic direction and

organizational complexity



The SAS Solution

Enabling! SAS Strategic Vision™ enables organisations to

define and implement BSC & Perf Management

solutions Faster, Smarter & Easierthan ever before



The SAS Solution

A complete solution! With Strategic Vision™ you get

! A Map to plan your journey

! A Compass to keep you on course

! A Knowledge Base to explore newopportunities

Balanced Scorecard CollaborativeCertified is a registered trademarkof Balanced ScorecardCollaborative, Inc.



! Bundling to match user needs

Strategic Vision™

1 (SV Express)

Trial concepts

Manual

up to 10•Map•Compass

Map has limitedFunctionality3 month trial

3 (Options)

Customize

Automated

> 10•AppDev Studio•AF•Graph•ER

Make specific bycustomisingsolution

2 (SV Ent Ed)

Cascade

Automated

> 10•Map•Compass•Knowledgebase

Map fullyenabled

4 (Extensions)

Leverage

Automated

> 10•e-Intelligence/ CRM•Collaboration Tech•CFO Vision•HR Vision•Procurement Vision

Leveraging technologyto dig deeper

Stage PurposeForm UsersComponents

Notes



Strategic Vision™

! Timeline• Map• Compass

• Knowledge Base• User Manager• Advanced Collaboration technologies

SV ExpressSV EnterpriseEdition

Priorities

Release Engineering& Packaging

SUGI BSCOL Summit Mtg

SV Express Closed Betawith SV experimental Beta

SV Express & Strategic Vision Beta

Product delivered asProduction

Collaborative Certification

31 Mar May Jun Jul Aug Sep Oct

ShareholderValue

Research

SEUGI

Balanced Scorecard CollaborativeCertified is a registered trademarkof Balanced ScorecardCollaborative, Inc.



Creating a Rapid Prototype

! Strategic Vision™ Express! Assumptions

! Good understanding of BSC! Already know the strategy! Have details about measures and an

understanding of how they are linked

! What it is! Design tool – SV MAP - allows you to ‘map’

your strategy & performance metrics! Reporting tool – SV COMPASS - allows you

to publish knowledge & results to providedirection

! SV Express sold as a trial NOT a product



Creating an Automated BSC

! Strategic Vision™ Enterprise Edition! Assumptions

! Management & business users already definedthe strategy and metrics

! Above info entered into SV MAP

! What it is! A complete package that enables you to define,

then automate regular updates to the BSC andpublish over the web

! Collect and store knowledge – both numericaland text

! A base for more analytical research



Highlights

! Architecture/ functionality! Heavily based around XML

! All information entered into SV stored as XML! All data surfaced through SV COMPASS is

read from XML! XML Metadata in SV MAP is converted

automatically for use in a SAS Warehouse

! SV MAP! Windows front end! Templates that mould around strategic

advisors preferred methodology! Defines hierarchy & views! Documents the methodology & results



Highlights

! Architecture/ functionality! SV COMPASS

! Clear, simple web client! Combines numerical and textual info! Provides easy to understand status indicators! Access to results ‘on’ or ‘off’ line

! SV KNOWLEDGEBASE! SV XML conversion and tools for ETL process! Administration! Collaboration! Links to supporting applications



Highlights

! Strategic Vision™ - Map



Highlights

! Strategic Vision™ - Compass



Need more info?

! Visit the BSC Booth! Presentations include:

! An overview of Strategic Vision™! An IT Scorecard – what it means! An introduction to the SAS BSC methodology! A closer look at Strategic Vision™ Enterprise Edition

– how to automate your BSC! An example of BSC in the clinical environment! Building & implementing BSC performance systems! A closer look at Strategic Vision™ Express

- how to create a rapid prototype for BSC! BSC – Beyond Analytics



Questions ?

The power to know™