discussion document sap balance scorecard 2012 0110 v1

This document is confidential and is intended solely for the use and information of the client to whom it is addressed. Newport Consulting Group, LLC

FOR DISCUSSION

Newport Consulting Group, LLC

This document is confidential and is intended solely for

the use and information of the client to whom it is addressed.

Balanced Scorecard Using SAP BusinessObjects for a Balanced Scorecard Approach

Lunch and Learn Discussion with Steelcase

2012 - Newport Consulting Group

January 2012

Newport Consulting Group, LLC Discussion Document - SAP Balance Scorecard 2012-0110 v1.pptx

Introductions

A Little SAP BusinessObjects Primer

Typical Strategy and Planning Cycles

Approach using SAP BusinessObjects

Client Case Study

Questions & Discussion – Your turn!

Contact

Contents


A Brief Introduction …

William D. Newman, CMC, MBA, SA

– ASUG Recognized Influencer

EPM, GRC, Sustainability

– Member, SAP Sustainability Executive Advisory Council

– Certified Management Consultant (since 1995)

– Over 25 years in industry, professional services

– Public Speaker (ASUG, SAP Insider, TEDx)

– Adjunct faculty, Northwood University

– SAP Press Author (Understanding SAP BOBJ EPM)

– Numerous articles on program oversight, stakeholder engagement, mobility, strategy, sustainable supply chain

– Twitter (@william_newman)


A Brief Introduction …

Newport Consulting Group is an independent

consulting firm founded in 2005 and managed by

several leading directors from DMR Consulting Group

and strategy firm Booz & Company

Our clients enjoy working with our experienced

professionals who deliver large firm capabilities with a

boutique firm culture

We function as top-end, high-touch advisors

to our F500, Inc 5000 and GT25 clients

Under NDA with SAP AG since 2005

www.newportconsgroup.com

http://www.newportconsgroup.com/

http://www.newportconsgroup.com/


Introductions




Client Case Study


Contact

Contents


A Little SAP BusinessObjects Primer / 1

Source: SAP America, SAP BusinessObjects, as modified by Newport Consulting Group.

Portfolio-driven

Value and Outcomes

Enterprise Performance Management

Better control performance

Increase organizational agility

Provide improved context for decision making

1 Governance, Risk, and Compliance

Aggregate and manage key risk activities

Automate controls across processes

Monitor risk & controls across disparate systems

2

Business Intelligence/Business Warehouse

Access to all information

Intuitive experience for all people

Single information infrastructure

3 Information Management

Trusted information

Operational excellence for IT

Flexibility and agility

4

SAP BusinessObjects

Enterprise Performance Management Governance, Risk, and Compliance

Business Intelligence

Information Management

Ensure Trusted Information

Proactively Manage Risk

Create Enterprise Visibility

SCM (APO, SNP)

SRM (eSourcing)

PLM (NPI, PPM)

ERP (MM, PP, SD, PS)

Non-SAP Environments

Connectivity to …



EPM and GRC Projects have unique characteristics

Very data-driven

– Ownership issues always exist

Roles-based or access-based

– Generally roles-based for process controls

– Generally access-based for system management security

Implementation time unlike “classic” SAP programs

– 12-18 weeks including planning (if environment is well-known)

– Incremental time for additional solution paths

– Core SAP “backbone” not needed

Funding is often dispersed across the organization

– Unless the project is an Access Controls for systems security, often BOBJ projects run across multiple operations, processes

Unlike traditional or “classic” SAP programs, SAP BOBJ programs are designed to provide decision

analysis based on the rapid use and interpretation of data supporting processes, however some

corporate processes – like strategic planning, risk management, and sustainability – are well defined.

Newport Consulting Group, LLC Discussion Document - SAP Balance Scorecard 2012-0110 v1.pptx Newport Consulting Group, LLC


The EPM solution map for SAP BusinessObjects includes an integrated set of applications that drive

KPIs definition, tracking, and performance monitoring across four major domains of the business.

Strategy Formulation

Strategy Management

Business Planning and

Forecasting

Planning

and Consolidation

(NetWeaver)

Profitability and Cost Management

Planning

and Consolidation

(Microsoft)

Financial Management

Financial Information

Management

Financial

Consolidation

XBRL

Publishing

Intercompany

Reconciliations

Supply Chain

Effectiveness

Spend Performance Management Supply Chain Performance Management

SAP BusinessObjects Enterprise Performance Management

Solution Map of Capabilities and Applications

Source: SAP Company website, Understanding SAP BusinessObjects Enterprise Performance Management, SAP Press, 2010.

Note: Reflects GA EPM 7.0 and confirmed release EPM 7.5 capabilities at the time of this writing.

1

2

3

4

SAP BusinessObjects EPM solutions provide an integrated, comprehensive environment to

leverage live operational data and provide transparency and visibility in the organization.



Strategic level scorecards based on enterprise goals and objectives, aligned with KPIs and company

balanced scorecard frameworks, allow initiatives to be defined, resourced, and monitored.

Source: “Build and Maintain a Risk-adjusted Strategy,” GRCExpert, 2010.

Performance settings

based on KPIs

thresholds (“triggers”)

that can be dynamically

linked to operational

data.

Strategy Map

aligned to Balance

Scorecard and

objectives

Executives may leveraging SAP

BusinessObjects Strategy

Management for a broad, transparent

view of the enterprise.

ILLUSTRATIVE


Introductions




Client Case Study


Contact

Contents


Typical Strategy and Planning Cycles / 1

Generally strategy is the result of a high-level discussion around mission, vision, goals, and

objectives. Linking this to operational goals and execution is intended but not always clear or intuitive

across regions, operating units, and management teams.

Strategy Planning

and Execution

Development of a comprehensive business strategy considers the key reasons why an organization exists, its desired outcomes, and the timeline to achieve them

Functions and operations need to be aligned to strategy as a key operational function

The outcomes of the organization are supported by key marketing activities over time and tactically in a given year

Corporate performance targets are defined by Key Performance Indicators (KPI) generally tracked quarterly / annually

Goals

Objectives

Mission

Vision

The Strategy Pyramid

From Strategic Mission to Tactical Plan

Strategic

Tactical

Why does the company exist?

Where does the company

want to be in < 10 years?

What outcomes does the company

hope to achieve?

What milestones will the company

set for itself over time?

How will each function execute

the plan annually?

How will each business operation

execute the plan annually?

Operational Tactical Plans

Fu

ncti

on

al

Tacti

cal P

lan

s

Source: “Understanding SAP BOBJ Enterprise Performance Management,” 2010.



A closed-loop Enterprise Performance

Management (EPM) model provides a framework

for the development, alignment, and execution of

strategy in the organization, leveraging outcomes

for future strategy cycles based on actual results.

Strategic Plan

Operating/Financial Plan

Test

and Adapt

Align the

Organization

Monitor

and Learn Plan

Operations

3

4 5

6

Develop

the Strategy

Translate

the Strategy 1 2

Six Stages of the Closed-loop EPM Model

Develop the Strategy – this involves applying tools, processes, and concepts, such as mission, vision, and value statements

Translate the Strategy – using other tools and processes, including strategy maps and balanced scorecards

Align the Organization – both the business units and shared services units to the corporate strategy and the business processes

Plan Operations – translate the strategic objectives into rolling forecasts, activity-based costing, resource and capacity planning, dynamic budgeting

Monitor and Learn – with managers continually reviewing internal operational data and external data on competitors and the business environment

Test and Adapt – updating it when they learn that the assumptions underlying it are obsolete or faulty, which starts another loop around the system

Source: “Understanding SAP BOBJ Enterprise Performance Management,” 2010.



Design

Change

Rolling Business Forecast System

Quote

Predictive Analytics SAP BusinessObjects

Powered By Column5, Saphran & IHS

Able to Support Historical and Rolling

Operating Plans – P&L, Balance Sheets, Cash Flow

Opportunity To See Activity Based Costs

These days we are seeing a trend to move to real-time planning and execution including forecast

in a number of industries using both HANA-enabled and traditional predictive analytics to create a

“rolling planning and forecast” cycle which is “always on” inside the organization.


Introductions




Client Case Study


Contact

Contents


Approach Using SAP BusinessObjects / 1

Our approach underscores our many years of working with organizations to operate more efficiently

and effectively, in areas of strategy and performance management. Technology represents only 5% of

program implementation issues - as such we consider several dimensions to our client work.

Focus on delivering value to organizations in support of goals

Strategically align the organization and SAP as the supporting technology

Reduce or eliminate reliance on third party service providers for data collection and reporting activities

Create greater visibility - both externally and internally – of program results

Introduce PM best practices which could find valuable in future activities.

Engagement Principles



Corporate (Boardroom) Strategy

FI

SD SRM

MM QM

KPIs bridge and align corporate strategic goals with operational performance data

KPIs are stable and have time-bound targets and indicated actions for above/below target

KPIs are derived from metrics data embodied in operational-DW/BI or other data stores

CSAT Index

YoY Operating

Margin Voluntary Employee Turnover

Product Avg Time to Market

Typically organizations face a “strategy gap” in the planning, alignment, and execution phases of

strategic initiatives, such as sustainability planning. Our approach considers these impacts.

KPI “White Space” ILLUSTRATIVE

Operations & Systems

Information may be stored in a variety of system environments, spreadsheets, and personal “sources.”

Elaborating the difference between KPIs, metrics and measures is extremely important. Strategic goals and objectives driving KPIs and metric flow-down.

Issues with data ownership must be addressed.



We leverage a balanced scorecard (BSC) approach with two components: the scorecard and the

strategy map. The strategy map clearly illustrates at a high level the flows and groupings of objectives

required to address the BSC elements. A facilitated process can assist this strategy formulation.

Executive Briefing Facilitated Interviews

1 2

BSC Element Workshops

> Finance

> Customer

> Process

> People

3

Consolidation

4

5 Planning Congress (if needed)

> Information Exchange

> Assign tactical objectives

> Resource initiatives

> Assign accountability



Considerations from SAP field customers

– Registration of client as EPM10 Ramp-up customer

– Leverage specific technical resources (3rd Party, SAP)

– Manage SAP site visits to reduce impact to effort

Considerations for Output forms and Use

– Desktop visualization, dashboards, scorecards (standard application - OOTB functionality)

– “Where are we today” panels or displays

– Enhanced internal communications, employee engagement

– Many options - we will provide you with the output forms and dashboards from the SAP environment, and will recommend viable options for display use.

A number of output options are available with SSM particularly as it moves to its EPM10 platform. We

provide support not only interface to regional deployment activities, but also to the most recent

developments of the SSM solution as it transitions release platforms through 2012



Newport’s program implementation workplan includes a “scoping” phase with a balanced approach of

technical and functional readiness consistent with SAP guidelines. This will allow for a natural “check

point” mid-way through the process to adjust and enable client IT and business objectives..

Program Engagement Model

10-week timeline of activities

Program Management and Oversight

Engagement Launch and Scheduling

Determine Program

Orientation

Validate Architecture

and Operating Model

Kickoff Presentation

Engagement Workplan

Stakeholder Interview Schedule

Configure to Landscape of Organization

Final Preparation,

Ready Organization

Program Deployment and Hand-

over

0 1 2 3 4 5

Week 0

Phase 1

“Program Alignment”

Phase 2

“Program Enablement” Checkpoint

Data Gathering and Reporting

Stakeholder Engagement and Communications

Technical Enablement (SAP SSM)

Weeks 1-3 Weeks 4-5 Weeks 6-7 Weeks 8-9 Week 10 …

Wo

rk s

trea

ms

ILLUSTRATIVE


Introductions




Client Case Study


Contact

Contents


Client Case Study / 1

Our client requested we provide input, comment, and recommendations on best approaches to

implement a localized Balanced Scorecard (BSC) framework under regional deployment throughout

the Americas leveraging SAP BusinessObjects Strategy Management (SSM).

BSC Global Rollout

Sponsored by corporate IT globally, initial rollout in Region Americas

Client ITPO responsible for deployment support in US, Canada

Client ITPO coordination with other Region Americas operating units

(Mexico, Brazil, South Africa)



Our conversations with our client keyed on three key areas to increase reporting accuracy, reduce

long-term reliance on external service providers, and create flexibility in the ability of communication,

both externally and internally. This would be leveraged and supported by the BSC framework.

Reduce Data

Gathering Complexity

Eliminate multiple sources of spreadsheets

Automate data comparison and aggregation activities

Reduce or eliminate dependency on third party service providers

Increase Reporting

Accuracy and

Consistency

Provide a central area to gather and distill information from multiple sources

Automate report form outputs

Provide unique output formats (dashboards, briefing books)

Increase Stakeholder

and Employee

Engagement

Increase engagement of internal stakeholders and employees

Develop creative means to show “where are we today” towards strategic goals

Provide roadmaps and “play books” of how the organization will need to work

1

2

3

In addition we believe there are additional opportunities in the areas of governance:

Introduce Program Office practices to consolidate and leverage resources

Explore strategic initiatives beyond ITPO to leverage BSC platform



We provided background on stakeholder enablement approaches including tie-in with specific

corporate social biz platforms like SAP StreamWork and deployment of the BSC approach on iPad

using BusinessObjects BI On Demand.

Structure

Socialize

Personalize


Introductions




Client Case Study


Contact

Contents

Newport Consulting Group, LLC Discussion Document - SAP Balance Scorecard 2012-0110 v1.pptx 24

Questions and Discussion – Your turn!


Introductions



SAP’s Approach using SAP BusinessObjects

Client Case Study


Contact

Contents


Contact

Newport Consulting Group, LLC

William Newman, CMC, MBA, SA

Managing Principal

[email protected]

7286 North Village Drive O 248-978-2000

Clarkston, MI 48346 USA M 248-635-9902


Contact

Some helpful references and links:

William Newman, Understanding BusinessObjects Enterprise Performance Management (SAP Press,

2010). – http://www.sap-press.com/products/Understanding-SAP-BusinessObjects-Enterprise-Performance-Management-.html

William Newman, Use SAP StreamWork to Track Sentiment Analysis and Performance Metrics, GRC

Expert, March 24, 2011 – http://www.grcexpertonline.com/article.cfm?id=5734

William Newman, Create and Monitor a Risk-Adjusted Strategy for the Post-Crisis Economy, GRC

Expert, January 7, 2010 – http://www.grcexpertonline.com/article.cfm?id=5022

Davin Wilfrid, Building a Corporate Sustainability Reporting Strategy with SAP, Project Expert, March 17,

2010 – http://www.projectexpertonline.com/article.cfm?id=5113

Podcast: “IT transformation plans with mobile strategy more likely to get funding,” William Newman, Todd

Morrison, Jacquelyn Howard, searchSAP.com, October, 2011 – http://searchsap.techtarget.com/podcast/IT-transformation-plans-with-mobile-strategy-more-likely-to-get-funding

William Newman, Strategy Management iPad app offers balanced scorecard access anywhere,

searchSAP.com, November 7, 2011 – http://searchsap.techtarget.com/news/2240110350/Strategy-Management-iPad-app-offers-balanced-scorecard-access-

anywhere

Jesse Jacoby, William Newman, Mobile computing offers inroads to executives, profit models for SAP,

searchSAP.com, October 5, 2011 – http://searchsap.techtarget.com/news/1280100071/Mobile-computing-offers-inroads-to-executives-profit-models-for-

SAP-customersMobile-computi

http://www.sap-press.com/products/Understanding-SAP-BusinessObjects-Enterprise-Performance-Management-.html
















http://www.grcexpertonline.com/article.cfm?id=5734




http://www.projectexpertonline.com/article.cfm?id=5113

http://www.projectexpertonline.com/article.cfm?id=5113

http://searchsap.techtarget.com/podcast/IT-transformation-plans-with-mobile-strategy-more-likely-to-get-funding





















http://searchsap.techtarget.com/news/2240110350/Strategy-Management-iPad-app-offers-balanced-scorecard-access-anywhere

















http://searchsap.techtarget.com/news/1280100071/Mobile-computing-offers-inroads-to-executives-profit-models-for-SAP-customersMobile-computi
























Author, professional speaker, writer and consultant - William (“Bill”) Newman serves as

Managing Principal of Newport Consulting Group, an independent management consulting

firm focused on strategy, operations, risk management, and technology. Mr. Newman has 25

years experience in a wide range of operations including manufacturing, IT, R&D, sales,

marketing, planning, human capital, service delivery and finance. His expertise spans service,

manufacturing (automotive, aerospace, life sciences, high tech, CPG), government, utilities,

transportation, and healthcare industries as well as not for profit organizations.

Mr. Newman’s service area focus is innovation, strategy, market growth entry, program design

and oversight, and corporate sustainability. He is a former executive of Volkswagen’s

technology division and has served in a number of professional and management positions at

Grant Thornton, KPMG/BearingPoint, and Booz & Company. A recognized expert and

influence partner in the areas of EPM, GRC and ERP, Mr. Newman serves as an outside advisor to the Sustainability

Executive Advisory Council (EAC) of software maker SAP. He is an adjunct professor at Northwood University in the

field of management studies, as well as a participant of the University of Oregon Sustainability Leadership Program.

Bill was granted the Certified Management Consultant (CMC) designation by the Institute of Management Consultants

in 1995 and has served on the IMC national board of directors and three regional boards across the USA for over 10

years. Mr. Newman is a qualified Trainer / Coach granted by the American Society for Quality (ASQ) since 2000, a

qualified consultant for Social Accountability International (SAI) in SA 8000 for social accountability since 1998 and the

Social Fingerprint® method for business improvement since 2011. Mr. Newman is an member of the Michigan

Association of CPAs (management consulting task force) and a registered expert witness with the Technical Advisory

Services for Attorneys (TASA). His paid and pro bono not for profit consulting includes work with the United Church of

Christ, Evangelical Homes of Michigan, a regional mental health services provider, and the Boy Scouts of America.

Bill holds a Bachelor’s Degree in Aerospace Engineering with a minor in Economics from the Henry Samueli School of

Engineering at UCLA, and an MBA in Management and minor in International Business from the Conrad Hilton School

of Business at Loyola Marymount University (Los Angeles). Bill and his wife Teresa make their home in southeast

Michigan.

William Newman, CMC, MBA, SA


Jesse Jacoby, a management consultant with extensive experience

executing strategic initiatives and achieving business transformation

goals. He provides thought leadership and expertise in the areas of

organizational change, strategic communications, and stakeholder

engagement. Jesse has helped dozens of clients, including Fortune

500 companies, deliver successful people and change strategies

across a range of initiatives such as technology deployments, merger-

acquisitions, corporate restructuring, and outsourcing.

Jesse spent more than a decade leading consulting engagements for Booz &

Company, Accenture, and Right Management. He has worked across multiple

industries, including transportation, automotive, energy, retail, and financial

services. Jesse is adept at all organizational levels, and frequently engages with c-

suite executives, vice presidents, and directors, as well as middle managers and

frontline employees.

Prior to his consulting career, Jesse served as the Director of Marketing for start-up

technology company COS, Inc., which provides information services to the scientific

research community. His online product marketing strategies supported the

company's growth through two rounds of venture funding, a five-fold organizational

expansion, and positioning of the company for its eventual acquisition.

Jesse holds an MBA from The Johns Hopkins University, as well as a Masters in

Communications. He retains close ties with Johns Hopkins where he serves as

Treasurer for the University's Alumni Council and sits on the Steering Committee of

the Carey Business School Dean's Alumni Advisory Board. Originally from the East

coast, Jesse and his wife Allyson now call the city of Denver home.

Select Project Highlights:

Led organizational change and

transformation efforts for:

Largest ever deployment of

PeopleSoft to the DoD

Top airline’s passenger

system deployment

Fortune 10 retailer’s

acquisition strategy

Largest single-country

outsourcing initiative

Fortune 10 manufacturer’s

CRM rollout

Big 3 auto’s IT outsourcing

/ shared services transition

Fortune 100 talent

acquisition strategy

Jesse Jacoby, MBA, MComm


Additional Materials


Program Workplan / Task 1

The work begins with Task 1 in the Program Alignment phase. Here we determine and validate the

needs and requirements of the organization, provide education, and begin to align stakeholders with

needs, wants, and governance for the use of the solution.

Determine Program

Orientation

1

Weeks 1-3



Stakeholder Engagement and

Communications


Establish regular stakeholder meeting schedule

Align with regional protocols and activities

Align with SAP ramp-up protocols (as needed)

Weekly status reporting

Detailed analysis as to the source of metrics and data

Detailed review of the report compliance process

Preliminary analysis of reporting activities and costs

Initial KPI roll-ups

Stakeholder interviews, determine needs/wants

Establish regular stakeholder meeting schedule

Propose initial set of guiding principles

Create development environment

Initial solution installation

Initial solution configuration (including BI, NetWeaver)

Establish Conference Room Pilot environment

Work streams Activities

PRELIMINARY


Program Workplan/ Task 2

In Task 2 in the Program Alignment phase we confirm our basic assumptions and hypotheses around

the needs and wants of the organization, where is the information originating, how it will be presented

and basic structure of the solution. The checkpoint allows for scope review and adjustment.

Validate Architecture

and Operating Model

2

Weeks 4-5




Lead regular stakeholder meetings

Schedule, validate SAP oversight activities


Review and validate pro forma business case

Validate analysis of reporting activities and costs

Confirm KPI roll-ups and structure

Prepare pro forma business case for review

Facilitate regular stakeholder meetings

Validate initial set of guiding principles

Assess impact to policies, procedures

Determine modes and channels of communication

Construct performance management meta data (BI)

– Organization, staff, process, compliance targets

– KPI structure, template configurations, upload

Initial structure of Master Data Management (MDM)

– Frameworks, perspectives

– Objectives, scorecards

Checkpoint

Opportunity to

review scope, make

adjustments


PRELIMINARY


Communications


Program Framework / Task 3

Once the premise for the solution and the changes to the organization are confirmed, the Program

Enablement phase begins with Task 3. Here we configure the landscape for change, including any

policy or procedures, data gathering and survey, report and output forms, and information exchange

Configure Landscape for Organization

3

Weeks 6-7







Review proposed policy and procedure changes

Review reports and outputs design

Investigate alternative report, information exchange

options

Validate stakeholder data gathering roles


Develop Playbooks

Test communication channels, modes

Initial CR Pilot validation

Confirm structure of Master Data Management (MDM)

– Frameworks, perspectives

– Objectives, scorecards

Determine reports and output design

Describe roles and survey patterns, frequency

Describe KPI targets, tolerances, alerts


PRELIMINARY


Communications


Program Workplan/ Task 4

Task 4 in the Program Enablement phase readies the organization for the new way of doing business.

This includes final confirmation and go-ahead by the stakeholders, final solution preparation and test,

as well as report consistency and accuracy checks.

Final preparation,

ready organization

4

Weeks 8-9







Develop hand-over plan

Review report outputs with stakeholders

Confirm KPI and output accuracy


Conduct organization readiness review

Initiate organization communication

Secure “go-ahead” from stakeholders

Confirm KPI historical data and targets

– Load historical data, target data

– Run tests

Confirm KPI current data

– Load current data

– Run tests


PRELIMINARY


Communications


Program Framework / Task 5

Task 5 in the Program Enablement phase readies the organization for the new way of doing business.

This includes final confirmation and go-ahead by the stakeholders, final solution preparation and test,

as well as report consistency and accuracy checks.

Final preparation,

ready organization

5

Week 10 …







Deliver hand-over plan

NA


Documentation for hand-over

Knowledge transfer

Documentation for hand-over

Migration to production environment


PRELIMINARY

Replicate, annotate

to other business

units (1-2 weeks)


Communications

discussion document sap balance scorecard 2012 0110 v1

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