Proposition Offering BPC or EPM PWC

7/29/2019 Proposition Offering BPC or EPM PWC

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Making the right decisionEnterprise Performance Management (EPM)Proposition Offerings DeckFebruary 2011

www.pwc.co.uk

Strictly Private &

Confidential

Helping you drive success

by putting information at

the heart of your decision

making


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1PwC

Contents

The PwC CEO survey perspective on performance management 2

What drives the need for performance management across the enterprise? 3

Components of the PwC EPM solution Cycle of strategy to execution

Leadership and governance

Performance management architecture

Enterprise wide engagement

45

11

13

19

Components of the PwC EPM solution

The EPM Blueprint

The PwC difference

EPM contacts

26

27

28

29

Appendix EPM tools and methodologies 30

Enterprise Performance Management Proposition


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While 46% of participants draw financial data from a

central repository, only 23% can access managementreporting from a common source

Stormy watersThe PwC CEO survey perspective on performance management

CEOs are looking to the finance function to provide more insight and advice, yet only 11% of finance personnel are engaged in true

business partner roles

PwCs research indicates a primary reason is the strong dissatisfaction with the quality of managementinformation, especially forward-looking analysis

There is very little insight provided, and littlevalue-add. If I ask for comment or pose questions,they are answered reactively.

FTSE CEO, Financial service sector

Despite the significant amount of time devoted to

planning and forecasting, satisfaction with the qualityof MI coming out of these activities remains low.

80% of participants in the survey stated that they

were dissatisfied with the quality of managementinformation.

CEO surveyConsider the economic challenges we are facing, thekey improvement that is needed is fasterinformation, with more depth of analysis comparingus to the outside world.

FTSE CEO, Oil and gas sector

Figure 9: Percentage of time spent on activities

Figure 8: Quality of management information

19%

20%

25%

30%

6%Strategy and planning

Budgeting and forecasting

Performance improvementprojectsBusiness analysis

Management reporting

4%14%

68%

14%Highly satisfied

Satisfied

Dissatisfied

Highly dissatisfied

54%

46%

77%

23%

Financial

reporting

Managementreporting

Multiple applications and database in usecorporate wide

Single suite of applications and database inuse corporate wide ie 'single version of truth'


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Are you about to capsize?What drives the need for performance management across the enterprise?

We witness common performance management challenges at all levels of a business

MarketCustomer

ServiceMarketing &

SalesPlanning

& LogisticsProduction

ProcureMaterials &

Services

DevelopProducts& Services

Suppliers

However most organisations see EPM projects as a solution for finance or IT

What price do I pay and what burden do I place upon my team to answer my questions?

Regulators Shareholders Environmental agencies

I need real long-term insight into the business beyond that given in the statutory accounts

I need to understand andtrack drivers of customer

satisfaction and experience

Can I improvethe links betweencommercial and

development to betterunderstand customer

requirements andneeds?

I need analysis of supply marketrisk management, including

reputational risk

I want to be able to align shop flooractivity to corporate strategy

I want to Improvedemand forecasting

processes, skills and tools

I want to increase my focuson high value / high potential

customers

I want to identify themost profitable products

and services

I want to define customer retention performance and track

drivers of retention

(Evolution)What will the evolution of vision

and strategy mean for myorganisation?

(The Future)I dont have genuine foresightthrough predictive, risk based

scenario plans

(The Present)Am I deploying resources in the mostoptimum manner to attain our vision?

(The Past)Do I have a clear picture of

performance across thebusiness?

I need clarity andtransparency into the

business financial andnon-financial metrics

My ability to plan andmonitor performance against the plan,

is undermined by inconsistent datain multiple systems

Am I compliantwith all regulatory

requirements?How do I protect

the information andensure the right

governanceprocedures

are in place?

Am I making availablewhat the business demandsat the right time, in the right

place on the right device?

How do I reduce the costof maintaining all these

systems?

Are we settingour people individual

objectives that are inlinewith delivering our

organisationsaspirations?

Do our staffunderstand andbelieve in our

corporate culture?

I need to be able to monitorstaff development and ensureit aligns to career aspirations

Finance

HR

IT

Leadershiptea

ms

CEO

Exter-

nal


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A continuous cycle of strategy toexecution

Performance management activities are considered as a series of end to end processessuch as Strategy to Plan, rather than discrete activities like strategic planning, businessplanning and budgeting

Strategy can be converted into tangible metrics, measured and forecasted into the futureand incorporated into the learning, development and reward culture of the business

These processes need to remain fluid, allowing changes in strategy to flow through intothe actions of the people i n the organisation

Leadership sponsoring changeof behaviour and governance tomake it stick

Enterprise performance management requires a cultural shift from managing by reportsand numbers to managing by influencing changes in actions and behaviours

This requires top down leadership and a strong governance framework

Across an integratedperformance management

system architecture

Supporting the performance

management needs across theentire enterprise

An enterprise wide performance management strategy identifies the important metricsacross the entire organisation

Operational performance can be linked to corporate strategy

Operational teams can understand how they contribute to strategic performance

Increasing velocity & maximising performanceComponents of the PwC EPM solution

PwC promotes an enterprise wide solution based on four integrated components

As a result the entire business can leverage benefits from PwCs EPM solution

The components of an EPM

architecture stack

Market

Customer

Service

Marketing&Sales

Planning&

Logistics

Production

ProcureMaterials

&Services

DevelopProducts

&Services

Suppliers

Information strategy The business reference model describing the informationneeded to drive the business

EPM & BI applications Integrated performance management and business intelligenceapplications

Enterprise informationplatform

A consistent repository of data reflecting the requirementsidentified in the Information Strategy

Source systems &infrastructure

Diverse transactional systems (ERP, CRM, etc) and potential 3Psystems (supplier, customer, market data, social network)

Information strategy

EPM & BI applications

Enterprise information platform

Source systems and infrastructure

Leadership & Governance

Value


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Cycle of strategy to execution

1



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In the ERP world, the drive towards transactional excellence led organisations to move away from individually considering discrete areas of transaction

processing, such as procurement, accounts payable or fixed assets and move towards considering end to end transactional process such as Purchase to Pay.

Addressing management processes piecemeal has similar limitations

Instead of looking at strategic planning, business planning, budgeting and individual target setting separately, PwC advocates an integrated approach that

breaks the cycle of performance management into three end-to-end processes.

Maintaining control at speedCycle of strategy to execution: improving and integrating the process

Historically performance management activity was conducted as a series of discrete

processes undertaken throughout the year

'Measure to Forecastis the process by which organisations monitor and manage the execution of the long term strategy on an ongoing basis. Performance ismeasured by capturing, consolidating, reporting and analysing actual results al igned to the financial and non-financial measures prescribed during Strategy to Plan'.

The goal is to provide insight to identify and understand plan deviations early and define and execute the right actions to i mprove performance. The process culminateswith a realistic forecast of the expected business outcomes.

Recognise to Rewardhard wires the behavioursof functions, teams and individuals to activitycontributing to delivery of strategic objectives. Thisrequires linking remuneration strategy to delivery of

the measures identified in 'Strategy to Plan'. Alsocovers aligning individual performance managementto business performance management and linkingperformance outcome to the learning and

development programme.

'Strategy to Plan'is the end to end process bywhich organisations ready themselves to executeagainst their strategic objectives. This processincludes key performance and risk indicator

definition, cascading of metrics to engage thebusiness, long range business planning and shortterm resource allocation through, whereappropriate, comprehensive functionally integrated

budgeting.

3. Recognise to reward

2. Measure to forecast

1. Strategy to plan

Value


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Optimising performanceCycle of strategy to execution: from insight to foresight through metrics

The cycle of strategy execution is underpinned by understanding the right metrics, planning and measuring

against these metrics and linking the behaviours and activities of the workforce to delivery of these metrics

High performance

Insight and foresight

The right metrics

Understand the breadth of metrics acrossthe enterprise that underpin an

organisations strategic goals

Planned and measured

Integrating transparent planning andreporting processes on a platform ofquality information

Driving the desired behaviours

Driving performance through alignment

of the behaviour of the workforce

The signs of a high performing organisation

HR Director

CEO

CFO

CIO

Leadership Teams

External

I have clear line of sight into staff skills,training, motivation and how

this aligns to our culture

I can monitor our performanceagainst strategy and can effectively plan

for the future

I have consistent data that I can trustenabling transparency into the financial

and non-financial metrics

I know what information is needed and canproduce it in the most effective way

I can monitor my individualperformance and understand its effect

on the overall strategy

I am confident that the informationobtained from the business reflects reality

Value


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Overview

Strategy to Plan' is the end to end process by which organisations ready themselves to execute against their strategicobjectives. This process includes defining the key indicators of performance and risk that underpin and validate the strategy.Business engagement is achieved through cascading aligned financial and non-financial measures to key functions, teams andindividuals within the organisation. The longer term objectives are quantified through long term business planning and theshort term resource allocation is defined through, where appropriate, producing a comprehensive, functionally integrated

budget.

PwC considers the aspects of Strategy to Plan as differentiated by the level of granularity, audience and content strategicplanning, long range planning, budgeting and operational planning and scheduling - increasing consistency and alignmentacross the organisation.

Offerings Benefit

Strategic modelling and value driver analysis

KPI and KRI definition

Cascading metrics to functions, teams and individuals

Integrating business planning to individual objectivesetting

Scorecarding and board reporting

Long range planning Budgeting data model definition

Budget process blueprint

EPM technology review and selection

EPM technology configuration, deployment and on-goingexploitation

Change management supporting sustainable transition

Common understanding of the key indicators of performance and risk that have the most significant impact on thebusiness

Business engagement at all levels with a focus on activities and actions linked to achieving strategic objectives

Standardisation and simplification by reducing detail and complexity, centralising process control and ownership anddefinition of a common data model

Integrated set of planning processes with clear handover points to improve alignment between strategic plans, businessplans and budgets

Integrated technology to automate and remove redundant activities including data collection, aggregation andreconciliation

Driver based approaches enabling key drivers to model financial outcomes

More frequent planning to smooth the planning effort across the year and minimise resource peaks

Reduction in granularity and shift of focus to material and controllable cost drivers

Outputs become action orientated with clear accountability

Plan the race aheadCycle of strategy to execution: Strategy to plan

In PwCs experience, a large proportion of large companies report either no link or a weak link between

the strategy and budget processes

Value


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Monitor your performanceCycle of strategy to execution: Measure to forecast

High performing companies are significantly more effective in their use of cross functional information,

driver-based forecasting and predictive analytics

Overview

'Measure to Forecast is the process by which organisations monitor and manage the execution of the long term strategyon an ongoing basis. Performance is measured by capturing, consolidating, reporting and analysing actual results. Reportingand analysis must be aligned to the financial and non-financial measures prescribed during the Strategy to Plan process. Thegoal is to create transparency around the actual performance against targets, provide insight to identify and understand plandeviations early and define and execute the right actions to improve performance. The process culminates with a realisticforecast of the expected business outcomes given the performance to date, the target set in 'Strategy to Plan' and theprogramme of performance improvement actions. This is often not as easy as it sounds. Key challenges include:

Lack of consistent, streamlined i nformation to support management decisions

Lack of integration between management, legal and regulatory reporting

Reliance on largely manual reporting processes

Non-transparent and inconsistent data "silos" in different functions that have grown by evolution No cross-functional ownership and governance for data definitions, reports and systems

Lack of flexible and scalable tools used in the reporting and analysis cycle

Offerings Benefit

Financial (statutory), management and regulatoryreporting

Industry/function specific analysis(e.g. profitability and cost analysis, cash flow forecasting,scenario analysis, pricing and trade spend analysis, R&Dproject analysis, capacity planning)

Process standardisation, automation and acceleration

EPM technology configuration, deployment and on-goingexploitation

Organisational transformation to enable shared reportingplatforms and processes and business partnering

Data model design and data management

Governance and controls framework design

Timely reports and analyses based on metrics that matter

Consistent view of the business across all reporting dimensions, e.g. statutory, management and line of business viewsproduced in an integrated process

Reporting information that can be trusted and provides insight

Predictive analytics and forecasts that provide real foresight

The ability to make decisions faster so as to seize opportunities or to intervene quickly when performance moves off target

An organisation freed from data gathering and devoted to analysis and decision support Lower costs and less complexity in the preparation of standard reports and analyses with the business enabled to self-serve

on reporting requirements

Finance recognised by the business for driving rigorous and analytical cross-functional dialogue and action plans based oncommonly agreed performance measures

Value


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Celebrate your successCycle of strategy to execution: Recognise to reward

Reward systems are increasingly mistrusted by staff, reducing the effectiveness and alignment of staff

behaviour to organisation strategy

Overview

Recognise to Reward is the process used to close the loop on performance management and hard wire the behaviours offunctions, teams and individuals to activity contributing to delivery of the organisation's strategic objectives. This requireslinking the remuneration strategy to delivery of the financial and non-financial measures identified in 'Strategy to Plan'. Theprocess goes beyond financial reward and should cover all forms of staff recognition. This includes aligning the individualperformance management process to the business performance management process and linking performance outcome tothe organisation's learning and development programme.

It is important that there is a clear and transparent link between performance measures and reward otherwise theorganisation risks credibility with the entire performance management process. The meaning of the measures and how theindividual roles and behaviours can affect them must be spelt out to limit cynical views of reward bearing no relation toorganisation strategy. Increasingly, studies are reflecting the limits of financial rewards in changing or motivating behaviours,reinforcing the importance of total reward strategy.

Offerings Benefit

Definition of business performance aligned individualperformance management frameworks

Saratoga benchmarking of reward for marketcompetiveness

Non financial reward option analysis

Tax effective reward and pensions advice

Performance aligned learning and developmentprogrammes

Individual performance management activity aligned to business performance management activity

Organisation wide understanding of the reward system and importance of measures to applying the strategy

Workforce incentivised to executive against activities aligned to delivering desired strategic outcomes

Awareness of market/competitive reward offerings and where your organisation fits

Tax efficient reward for staff resulting in lower reward costs

Triggers to employee training linked to business performance and embedded in the individual performance management

process

Value


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Leadership and governance

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Overview

Leadership - transitioning an organisation from running its business based on performance reporting to driving its businessbased on performance management requires a paradigm shift in behaviours. This change of culture from focusing on thevalues of the numbers in the reports to focusing on the actions and activities undertaken to influence the numbers requiresstrong and unified leadership from the top.

New systems, process and measurement won't by themselves create an alignment to organisation strategy. Leadershipbehaviours will set the tone for the new model of what is acceptable behaviours and what is not, but they must themselves bealigned with the new model. The ability of the leadership team to give an unified and constant front becomes one of the keyfactors of success.

Governance - leadership can bring a performance management culture into existence but its long term survivability isdependent on establishing an effective governance structure. This goes far beyond merely the operating rules but includes the

changes in the ways of working, and the creation or restructuring of organisational bodies to maintain and reinforce theperformance structure. Changing workforce behaviours will need a number of approaches including the provision ofappropriate training and capability solutions, reward reinforcement and communication.

Offerings Benefit

EPM readiness and capability assessment

EPM culture roadmap development

Performance aligned organisation design strategy andimplementation

EPM behavioural change strategy and implementation

EPM leadership assessment, development and coaching

EPM governance and organisation design

Understanding of behavioural, organisational, people, process and technological barriers to adopting a performancemanagement led culture

Clearly defined communication audiences, messages and medium and a means to measure the effectiveness of the

performance management communications activity

Awareness of leadership values and behaviours prior to implementation of performance systems

Clearly defined performance management governance and organisational structures to embed a performance managementfocused mindset into the long term culture of the business

Alignment of leadership and organisation wide behaviour to strategy

Clearly defined set of required performance aligned organisation behaviours combined with tools and processes to achievethem

Change your ways for goodLeadership and Governance

True performance management means different ways of working for everyone with an emphasis on

actions to influence metrics rather than the numbers

Leadership & Governance


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Performance management architecture

3



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It is only recently that

organisations are starting to

approach EPM and BI initiatives

with the same rigour as they have

undertaken transformation of their

transactional capability. This

requires an end-to-end approach to

the performance management

architecture set within the context

of the business reference modelrequired to shape and monitor

strategy execution. A performance

management architecture vision

incorporates a series of EPM and

BI applications working off a

consistent information set sourcing

information across the full range of

internal, customer, supplier,

market and internet source

systems.

The foundations of high performancePerformance management architecture: building a stable platform

Effective performance management requires a clearly defines business reference model underpinned by a

robust, integrated technology platform

Information strategyThe business reference model describing the information needed to

drive the business. The organisational model and technologystandards for effective provision of EPM and BI services, approach tomaster data and hierarchy management.

EPM & BI applicationsIntegrated performance management and business intelligenceapplications. Common components include group consolidation tool,

planning, budgeting and forecasting tools, profitability and costmanagement tools, management and board reporting tools.

Enterprise information platformA consistent repository of data reflecting the requirements identifiedin the information strategy.

Source systems and infrastructureAn integrated architecture for diverse transactional systems (ERP,

CRM, etc) and potential 3P systems (supplier, customer, market data,social network).






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Overview

An Information Strategy is the fundamental building block that underpins effective performance management across theorganisation. It comprises two key components; what you need to report, and how you are going to report it. What you needto report is described in a Business Reference Model. This describes the information set that is first considered in Strategy toPlan, that is the key indicators of performance and risk required to support your strategic and business planning, and thecascaded functional, team and individual metrics that give management line of sight through the organisation and align theactions of the workforce to activities contributing to delivery of the strategic objectives. How you are going to report isdescribed in a Management Information Delivery Model.

This covers the MI systems architecture, the organisation design to deliver MI, the interaction of MI with processes (e.g.budgeting or month end reporting) and the accountability of teams and individuals throughout the lifecycle of information.The MI Delivery Model is a pre-requisite for effective design of the three following layers of the EPM architecture; EPM andBI Applications, the Enterprise Information Platform and the Source Systems and Infrastructure.

Offerings Benefit

Business Reference Model definition, including:

Data definition

Standard report definition

MI Delivery Model definition, including:

EPM systems architecture

Master data management

MI delivery organisation model including:

BI Competency Centres, self-service versus bespokereport delivery

MI process definition

MI accountability definition

EPM architecture implementation roadmap

Maximise the value of informationPerformance management architecture: Information strategy

A properly formulated and clearly articulated information strategy sets the direction for your performance

management approach to achieving your business objectives

Cost Savings

Reduce cost of error, delays or misinterpretation

Increase Asset Value

Simplifying access to authoritative information

Operational Excellence

Standards; Common data dictionary

Stakeholder Satisfaction

Data reliability and integrity

Align IT Investments

Reduce technologyduplication

Optimize technology investments Streamline operational services






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Overview

Gartner describes EPM and BI applications projects as the number one IT investment for delivering value to the business;however a majority of these initiatives are seen to fail. In our experience this is usually a result of inadequate project planningand insufficient time spent on preparing a holistic Information Strategy before diving into implementation. Distinct EPM andBI applications are available to drive a range of performance management activities including: Strategic modelling

Planning, budgeting and forecasting

Management reporting, dashboarding and scorecarding

Statutory and regulatory reporting

Analytics

Profitability and cost management

Data mining and predictive analytics

The EPM and BI applications are the tools that the business users engage with on a day to day basis. Deployed effectivelyfollowing a business reference model on an integrated set of consistent data, these applications become the front-line for

deploying a performance management culture across an organisation.

Offerings Benefit

Expertise in: Strategic modelling tools Planning, budgeting and forecasting tools Management reporting tools Dashboard and scorecard tools Consolidation and reporting tools Analytics tools

Profitability and cost management tools Data mining and predictive analytics toolsApplications: SAP Business Objects ( BPC, PCM and BFC) Oracle Hyperion (HFM, Hyperion Planning, Essbase,

PCM and HSF) IBM/Cognos (including Planning, BI) IBM/SPSS Microsoft SAS MicroStrategy

Flexible, driver based strategic scenario modelling allowing the business to evaluate a range of likely business outcomesand assess the impact of potential risks

Streamlines the planning, budgeting and forecasting processes so they are automated and i ntegrated improves budgetcycle time with a focus on providing insight and foresight not hindsight

Streamlines the actual reporting process to enable a smarter close faster turn around of results and improved compliancewith regulatory and financial standards, reducing potential audits costs and business risk

Drive better performance through data-driven business analytics, e.g.

Optimise revenue cycle manage and measure receivables, collection rates and monitor trends

Make right time operational adjustments optimise staff, facilities and resources

Expedite data-driven quality and cost improvement

Optimise and automate decisions to improve business processes with predictive analytics

Provide the tools to performPerformance management architecture: EPM and BI applications

Appropriate tools and technologies powered by consistent, standardised data






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Overview

Data is a corporate asset and as such is a potential source of competitive advantage. In order to derive this, an organisationmust first be able to harness consistent and accurate data from across the enterprise and then consolidate it for the purpose oftimely decision making. Increasingly this requires the creation of a central repository of data, and a series of additionalapplications managing the flows and messaging of data between systems.

We can support you in navigating the range of architectural considerations and options available to you, and advise you on allthe steps in your journey from software selection through to technical designs and programme management of anysubsequent implementations.

Offerings Benefit

Improving data connectivity

ETL routines and movement of structured data from

source to target systems

Enterprise Application Integration implementation

of middleware to share business data and processesacross the organisation

Delivering operational and analytical data stores

Facilitating single versions of the truth for customerand transactional data

Build ability to track deltas and events over time

Master Data Management

Create strategies and frameworks for managing

master and meta-data

Enterprise Records Management

Manage sources of unstructured data

Support document search and retrieval capabilities

One version of the truth - avoid the situation where the same information exists in different forms across anorganisation

Wider access to information effective information use supports cross-functional collaboration across operationaland geographical boundaries

Compliance with legislation and regulation in the US and in Europe over 10,000 regulations govern the storage,availability and disposal of information

Reduced cost of data storing and managing data is an ongoing cost to the organisation. The ability to retrieve

pertinent data in a timely fashion is critical. Increasingly it is important to be able to access both structured and un-structured data (an estimated 90% of data is held in unstructured form). The ability to retrieve, search and then exploitdata is key component of getting data working for the organisation

Increased productivity provides the framework for accurate and timely management information, in turn reducingtime spent searching for and creating information, freeing staff to work on revenue generating activities

Everyone on the same pagePerformance management architecture: Enterprise information platform

Ensuring data is improved, streamlined, connected and consistent






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Overview

To truly embrace the opportunity of enterprise performance management you will need broad horizons when it comes tosourcing data. The ERP and CRM systems are good places to start but can be supplemented with data from supplier andcustomer systems. Social networking sites are a good source of data for understanding the voice of the customer. There arefew truly greenfield application architectures; most large organisations have seen a combination of organic and acquisitivegrowth resulting in a disparate IT architecture and infrastructure. In most large organisations Enterprise Architects wrestle

with a myriad of different systems, and the challenges of how to efficiently operate the heritage systems and extract valuefrom the data within them. The strategic choices for leveraging heritage systems range between:

Initiatives to reduce individual islands of information and better leverage data in existing structures

Enterprise wide ERP and CRM standardisation and consolidation programmes

It is increasingly important to be able to extract value from existing IT investments, and to harness all the data held by the

organisation. This should include externally sourced third party data and other sources of commercially available data.

Offerings Benefit

Expertise in:

Optimising operational efficiency and effectiveness ofERP, CRM and Supply Chain Management systems

Data standardisation and ERP consolidationprogrammes

Data audits and assessing the value of data in theorganisation

3rd party data

Semi-structured contact data

Customer and supplier attitudinal data

Improve operational IT system efficiency and effectiveness

Deliver value from existing IT infrastructure investment

Identification of systems obsolescence and opportunities for systems decommissioning

Deliver cost savings through heritage system consolidation

Assess the strategic benefits of data standardisation and consolidation programmes

Support strategic Enterprise Information Platform programmes (data warehousing)

Support for data aggregation and exploitation initiatives by addressing the key issues around what data needs to be fed ormigrated to a data warehouse or accompanying data marts

Identify and exploit disparate data sources

Silos of commercially valuable data sit throughout the organisation these need to be identified and audited

Deliver tactical quick win initiatives based around exploitation of untapped data

Embracing all sources of dataPerformance management architecture: Source systems & infrastructure

Aligning your operational IT architecture to support performance management






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Enterprise wide engagement

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20PwC

The transition from insight to

foresight will be realised through

determining the optimum set of

metrics to support the performance

management needs across the

entire organisation with clear

alignment to the corporate

strategy. It is essential that

operational teams understand how

they can contribute to strategicperformance. This is alignment is

driven by focusing on metrics that

matters in terms of time horizon

and business operating model.

Engage the business engineEnterprise wide engagement: performance is everybodys business

Effective enterprise performance management requires a clear alignment of corporate strategy with

metrics across the end-to-end of the value chain

Marketing& Sales

Planning& Logistics

ProcureMaterials

& Services

CustomerService

ProductionDevelop Products

& Services

Business Operating Model

What are the relationships between the entities in the

end to end value chain? The operating model will shapemetrics that you directly manage and those which are

the responsibility of a business partner. For example,possible relationships with Production include:

Wholly owned factories

Toller or Contract Manufacturer under a Principalcompany structure

Co-packer or co-manufacturer

Other examples of relationships that will drive theoptimum set of metrics include:

The channel strategy

Logistics outsourcing relationships

The degree of P2P or O2C transaction processing

outsourcing

Time Horizon

What do you need to know now the daily update

tweet to your mobile device?

What matters on a monthly / quarterly time horizon?

What matters strategically and what will be analysed onan ad hoc or annual cycle?


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Engage the business engineEnterprise wide engagement: performance is everybodys business

Performance management challenges are pervasive across the entire business

The entire enterprise can benefit from PwCs EPM solution

Improve the linksbetween commercialand development to

better understandcustomer requirementsand needs

Understand product

level P&L managementto drive designdecisions

Customer and productsegmentation Understand the value ofinnovation

Business Case driveninnovation rewardthose that kill

innovation early Deliver streamlined,

efficient NPI methods for quicker, safer, more

cost effective launch

Linkage of procurementstrategy with businessstrategy

Understanding ofsavings / cost reductionperformance in year

Determining the P&L

impact and shareholdervalue added fromprocurement

Analysis of supplymarket riskmanagement, includingreputational risk

Assessing the level ofcontrol and compliance

with the procurement

and suppliermanagement process

Align shop flooractivity to corporatestrategy

Understand efficiencyand sources of waste

with in the production

processes

To provide alignmentwith value from thecustomers viewpoint

To identify hiddencomplexity in the

business and move tostandardised andsimplified processes

To drive thedevelopment of Lean

capability and promotea culture of continuousimprovement

Deliver integratedS&OP, leveraging totaldelivered cost, serviceand cash insights andanalytics to driveinformed decision

making

Drive efficiency in tothe management ofinventory across thesupply chain

Drive cost to serve tradeoffs integrated withcommercial trade termsdecisions

Asset and Networkanalysis to drive the

lowest cost, best servicemodel Core vs. Non-core

Improve demand

forecasting processes,skills and tools

Understand workingcapital (WC) driversand opportunities toreduce WC cycles

Increase focus on highvalue / high potentialcustomers

Identify the mostprofitable products andservices

Understand the

effectiveness of salesand advertisingchannels

Understand theeffectiveness ofmarketing, advertisingand sales processes

Determine the qualityand assignment of salespipeline

Monitor and controlsales and marketingactivities includingpricing

Review and enhancetrade terms to balance

what the customer willpay for vs. what is thecost of doing business

Improve total customerexperience (purchasing,fulfilment, usage,support, after salesservice, directedmarketing, etc)

Define customer

retention performanceand track drivers ofretention

Support account /relationshipdevelopment andmanagement activity

Understand and trackdrivers of customersatisfaction and

experience Analyse ability to up-

sell / cross-sell tocurrent customer base

Marketing

& Sales

Planning

& Logistics

Procure Materials

& Services

Customer

ServiceProduction

Develop Products

& Services


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The outcome of the organisationsinnovation activities. It is aboutmore than R&D, technology andinventions which lead to newproducts and services. Theoutcomes can also manifest

themselves in a number of otherways, such as cost reductions,increased productivity, increases incustomer and people satisfaction,reduced cycle times, increasedreputation and reduced cost of poorquality. For this reason, theInvestor in Innovation Frameworktakes a wide view of innovationresults.

it is about blending a strategic mix of key drivers around and through theorganisations culture that leads to the creation of value and business impact

Enterprise wide engagement: Develop products and servicesInnovate with direction

The innovation mix is a blend of activities and processes that link and encourage innovation to happen

and flourish. There is no one mix and not one type of culture

Value creation &business impact

Innovation deliveryInnovation climateInnovation direction

Drives the activities relating tothe role of innovation within the

organisation

Number of new products/ services

developed within a 12 month period Number of transformed products/

services, e.g. re-investing in

underperforming products or ideas thathave yet to be invested in

Investment in innovation activities (bothfinancial and in resources / also intraining staff on innovation)

Existing size of innovation portfolio number of new ideas being sought andconsidered

Processes in place for proactively seekingnew ideas, evaluating them and

managing them through from concept

Risk register and demonstration of risktolerance... innovation has to comefrompain

Focuses on developing a cultureof innovation which is the

centre piece of the framework

Culture conducive to innovation for

example staff encouraged to ideagenerate, take calculated risk, investmentin innovation activities e.g. time out for

idea generation, supported learning,openness to new ideas

Staff reward to be based partly oncontribution to innovation for example,

bonuses for ideas generated that aretaken from concept and developed

Physical office layout allows flow ofideas and doesn't hamper creativity

Links with universities evidence ofinvestment in R&D (either internally or

through universities of research bodies)

Collaboration with similar organisationsin the area of R&D

Evidence of benchmarking globally

Focuses on developing a systemof processes that deliver

innovation at an operationallevel

Return on Investment

% new products generating revenuewithin the first 12 months

Intellectual property number of patentssought for new products (success rates),number of products being trade markedperyear

Product life cycle number of productsdiscontinued to allow investment in newproducts

Margin increase from new products

Revenue generated from new productswithin the last 12 months - 3 years as a %

of total revenue


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23PwC

Focus

Critical materials andkey suppliers

Manufacturing, capitalexpenditure, health, safety,

quality and environment

End-to-end supply chainperformance, trading off

customer service, total delivered

cost and cash

Fulfil your customers wishesEnterprise wide engagement: Procurement, production, planning & logistics

The supply chain metrics are applicable at location, category and enterprise level

enabling a roll-up or drill-down highlighting where performance is out of tolerance

Procurement Director

Supply Chain Director

Finance Director

Visibility of financial information allowsme to be a better business partner

Sales Director

The early visibility of changesin demand allows me to be more

collaborative with suppliers

I understand what it really costs toserve our customers

Our decisions are relevant and timelytrading off cost, cash and service needs

My sales teams understand howtheir actions forecasts and trade terms

drive our cost base

Supply chain understand which ofour customers really matter and

how we should serve them

Planning & LogisticsProductionProcure Materials & Services

Time horizon

Short Term

DailyWeekly

Critical Tweets

Critical material and key suppliermarket news and deals

Major supplier failures

Daily and weekly outturn

Major capital programme news

Alerts on major accidents and

failures

Number/value of stock outs

Major customer issues

Key product/promotion item case

fill

Expediting costs vs. budget

Medium Term

Monthly toQuarterly

PerformanceTrends

Material price vs. standard

Hedging positions vs. spot prices

On time in full performance

Asset utilisation vs. budget

Outturn volume and mix vs. budget

Bill of material variance/waste vs.budget

Progress against Capexplan

Lost time accidents and frequency Audit reports scores

Sales forecast accuracy

Case fill vs. target

Percentage/value returns

Total delivered cost and cash vs.budget

Inventory cover, obsoletes andwrite-offs

Conformance to plans andschedules

Long Term

Annually

StrategicDevelopment

Material competiveness

Supplier relationship scorecard

Internal and external benchmarks

Internal service level agreements

Capital productivity and intensity


Customer relationship scorecard

3rd (4th) party logistics providerrelationship scorecard



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Customer Driven Performance Management

Brand Equity

Product & ServiceRecognition

Advertising Reach

Media Share of Voice

Conversion Rate

CompetitivePositioning

Positive Share of Voice

Conversion Rate

Total Sales by volume andvalue

Total Margin

Sales Growth

Sales Cadence

Market Share

Pipeline Value

Customer Profitability

Recency and Frequency

Cost of Sale

Lifecycle Pricing

Total Trade Investment discounts and rebates

Total Cost to Serve

Quality of Service

Customer Satisfaction Complaints

Call response time

On time delivery

Claims and Disputes

Net Promoter Score

Repeat Sales

Customer Up Sell Customer Cross Sell

Customer Lifetime Value

Customer PaymentTerms and Compliance

Optimise the commercial functionAcross the enterprise: Marketing, sales and service

PwC specialises in performance management solutions across the commercial funnel

as a result the Commercial function can benefit from PwCs EPM solution

Marketing Sales Service

Marketing Director

Service Director

Leadership Teams

Sales Director

I understand which mechanicswork for us for each of our key channelsto market

I am much clearer aboutwhat our customers are

looking for

I understand how the functionis performing what is working

and what isnt.

I have greater visibility overthe forward order book and how

I should prioritise

I understand which customerswe should be targeting and who targets

them

Pricing is always a key leverof demand now we can use it more

strategically

LoyaltySatisfactionPerception PurchaseAwareness

Internally Driven Performance Management

Sales v Target

Coverage v Headcount

Sales Cycle Times

Total Cost to Serve

Channel costs

Employee Satisfaction


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25PwC

Marketing Director

Sustainable corporate trustAcross the enterprise: Sustainability and climate change

PwC integrates sustainability and climate change in its performance management solutions

...as a result the business can embed sustainability & climate change into its decisions

e.gs of sustainability considerations across the value chain

I want todevelop products tocapitalise on greenconsumer trends

I want to de-risk mysupply chain and reduce

costs by consideringcarbon in the

products/services we buy

I know there must beopportunity to further

reduce my carbonfootprint and realise

efficiencies, but I donthave the MI

I want a streamlineddistribution network

that is low cost and lowcarbon

I want to use ourenvironmentalcredentials as adifferentiator

What are thesustainability benefits

of our productscompared to the

competition?

Operations Director

Sales Director

Finance Director

Leadership Teams

Sustainability has helped us reduce riskand meet changing customer expectations

Awareness of sustainability helps reducecosts and enables us to behave more

joined up than ever before

Our sustainability credentials

differentiate our products

I am clear about how o ur products deliveron emerging green consumer trends

The business is considering sustainabilityand climate change at every step of the

business cycle

I am much clearer about the finan cialbenefits of embedding sustainability

Green consumer

trends Product/service

lifecycle impacts Current & pending

energy efficiency /carbon regulations

Impacts of designon the production

process Sustainability

impacts of the use

phase New technologies

that deliver reducedcosts and reducedimpacts

Physical climate

change risks to keysuppliers

Supplier policy &performanceregarding childlabour, forcedlabour, H&S andenvironmental

impact Supplier

sustainability

assessments Carbon intensity per

unit procured

Energy / carbon per

unit of production Energy intensity of

alternativeproductionprocesses

Sensitivity ofproduction processto changes in carbon

price Weight of packaging

per unit of

production Efficient packaging

design

Water use per unitof production

Carbon emissions

per km Number of journeys

& backhauling Distribution hub

planning and keyfuture supplierlocations

Low carbon

alternatives Using carbon to

instigate partnering

/ shared services

Green consumer

trends Product carbon

labelling Product / service

environmental andsocial benefits

Substantiatedmarketing messages

Meet new customer

demands Performance on key

customersustainabilityassessments

Marketing& Sales

Planning& Logistics

Procure Materials& Services

CustomerService

ProductionDevelop Products

& Services


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The PwC difference

5


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27PwC

The EPM BlueprintYour path to the podium

We have developed the PwC EPM Blueprint to baseline your EPM capability, define the vision, develop a

high level solution design and deliver the business case and programme roadmap

The EPM Blueprint fits within the Assess stage of our overall approach to transformation Transform*

Approximate 2 3 month exercise

Diagnostics and vision

Based on a baseline of performance managementactivity within the business, the EPM vision describesthe ambition for the EPM programme, typically over a 2 -5 year time horizon

High level solution design

Starting with a conceptual data model to support allEPM activity, the solution design builds out the impacton performance management processes, systems, peopleand organisation

Business case and roadmap

Outlines a business case for change including acomprehensive understanding of the total cost ofownership, any efficiency savings and other quantitativeand qualitative benefits. Delivery of the benefits isexplained in the overall roadmap for EPM deployment

backed up by a detailed implementation plan for the firstphase of the programme

Data

Conceptual data model

Data integration model

Data governance framework

Process

High level EPM process flows

Systems

Systems architecture

Software licensing, infrastructure and hostingstrategy

People and organisation

People and organisation impact assessment

Project organisation design

Visionandguidingprinciples

As-Is and To-Be definition

Data

Process

Systems

People & org

Reporting requirements

Benchmark and maturity profile Business casefor change

Roadmap


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28PwC

Our team

PwC provides an integrated end to end EPM offering,from KPI definition to application implementation,supported by a strong IT capability:

We have 3,500 SAP specialists globally

We have 1,700 Oracle specialists globally We design and implement EPM software solutions

We have 4 delivery centres across the globe

EPM is about foresight, not just insight

I call the BU President, and am toldhow great it is that we now have oneversion of the truth which forms thebasis for focused discussions around

key business decisions.Global consumer goods company

EPM is enterprise wide not just finance or IT

centric

The PwC differenceBe the best

Our unique proposition and our extensive experience combine to make PwC the right partner to work with

you to build and deliver on your vision for the future

Proven benefits managementour EPM business cases and deep implementation experience deliver demonstrable value and enable us to take an innovative approachto pricing our services

Making change stick all our consultants are trained in our Making change stick approach and are skilled in delivering sustainable change

Track recordlisten to our clients all of our EPM client projects are referenceable

The PwC difference our business case backed approach delivers sustainable change you can ask our clients

We bring together the range of expertise you need to cover all aspects of performance management

Enterprise WideEPM Strategy

Corporate SocialResponsibility

including Sustainabilityand Climate Change

Industry SectorExpertise

Governance, Risk& Compliance

Building Public Trust Awards:Recognising Trust and Transparency in

Corporate Reporting

Market

Customer

Service

Marketing&Sales

Planning&

Logistics

Production

ProcureMaterials

&Services

DevelopProducts

&Services

Suppliers


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The PwC EPM leadership team

ConsultingNick GrovesPartner

t: 020 7804 2125m: 07970 [email protected]

Consulting

Richard WylesPartner

t: 020 7212 6861m: 07957 [email protected]

Nick is a qualified chartered accountant and a partner specialising in Enterprise Performance Management. Hehas advised leading multinational clients on realising performance management solutions including performance

metric definition, long range planning, budgeting, forecasting and management and statutory reporting. Nick has

led the deployment of a number of global performance management and business intelligence technologysolutions.

Nick has a long history of working closely with the performance management software vendors, notably OracleHyperion, SAP Business Objects and IBM Cognos.

Richard has over 18 years of EPM experience including systems strategy, financial consolidation and reporting,

planning excellence, change management and project and programme leadership. As founder, and CEO of the(EPM) firm Paragon Consulting Group he developed an EPM practice of 90+ FTEs. Paragons success wasbased upon delivering EPM with a holistic suite of services covering process transformation, system

implementation and application management services. The Paragon team at PwC is renowned for its systemimplementation capability, clear market leadership in Oracle Hyperion and skills in SAP Business Objectsincluding SAP BPC.


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AppendixComponents of the PwC EPM solution

EPM tools and methodologies


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31PwC

Plan the race aheadCycle of strategy to execution: Strategy to plan

Underpinned by deep thinking

Enabled through technology

Integrated planning

We have methodologies to supportprocess redesign, supportingtechnology selection and technology

implementation. Technologytemplates accelerate delivery of

benefits and lower risk.

We apply our enterprise-wideapproach to Strategy to Planthrough Integrated Planning. Ourdifferentiated point of view considersthis aspect of performancemanagement in a holistic andintegrated manner across the valuechain.

Pervading our unique points of view andtechnology accelerators is deep thoughtleadership grounded in experience andunderstanding of client challenges.

Tools & methodologies

DiageoGlobal Beverage

Company

Better PlanningPwC assisted Diageo with the redesign of its global financial

planning and forecasting processes. This involved thestandardisation and globalisation of new planning processes basedon leading practices and lean principles. In addition, PwC supportedthe selection of a global planning application (SAP BPC) to enablethe new processes as well as the creation of a conceptual design anddata model for SAP BPC. We have since been retained to design adevelopment strategy, implementation roadmap and business casefor a global rollout of the new planning processes and SAP BPCtechnology.

GlobalPharmaceuticalsCompany

Common Planning PlatformThe standardised financial planning and analysis process PwCdelivered enables faster management decision making. Financeprofessionals from all divisions and geographies speak the sameplanning language, focus on analysis and deliver more value to the

business. Management gains increased visibility to global trends andsensitivities and can quickly model the prospects of contemplatedoperational adjustments.

Newmont Mining

One of the worldslargest miningcompanies

Driver based planning mine by mine

Newmont Mining developed a roadmap to move it to an EPMenabled organisation. This started with implementing new strategicplanning and actuals based reporting processes and systems. Wethen helped the client design and implement new driver basedplanning and budgeting processes, implemented at a mine by minelevel, producing efficient integrated phase budgets bottom-up, forthe global business, for the life of each mine.


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32PwC

Monitor your performanceCycle of strategy to execution: Measure to forecast

Enable transformational change

Combined with specify analysis

An enterprise wide approach

We have helped many leadingorganisations to either transform theirenterprise information environment

and/or design and implementindustry/function- specific solutions

which provide new insights and have ledto significant measurable business results.

Our unique approach to the design andimplementation of reporting andanalysis solutions allows you to focusand address different informationneeds across the value chain but at thesame time ensures cross-functionalintegration process improvement anddirect alignment to the enterprise widestrategy.

Our methodologies and tools are provenand have been applied successfully to themost complex situations. Ourmethodologies are not just enabling anaccelerated implementation of newreporting and analysis tools but also a

sustainable transformational change tothe organisation.


UKs LargestCatalogue

Retailer

Profitability AnalysisThe business performance was previously measured on Gross

Margin with no view of additional product costs. There was no linkbetween buying and merchandising decisions and operational costimpact. We supported the client to address and answer the key

business questions such as where to source product, how to rangeproduct and how to dispose of excess stock. We performed anactivity analysis, developed a solution to measure and analyse trueproduct and customer profitability and managed the change toensure enterprise wide adoption of the new performancemanagement approach.

LeadingGlobal Brewery

Global Reporting, Planning & Consolidation SolutionOur client aimed to transform its fragmented financial performancemanagement environment grown by evolution and acquisition. Wesupported the client to implement a new global reporting, planningand consolidation system used across Finance, Supply/Procurement,Commerce, HR and IT and fully integrated across Group, Regionsand more than 150 Operating Companies around the world.

Leading Global

Agro-ChemicalCompany

Business Transformation

The client aimed to maximise the standardisation and scalability ofbusiness processes and services across the company with particularfocus on the support functions of HR, procurement, finance andinformation services. This is to enable scalable and reliable deliveryof these services while freeing up the rest of the business to focus onits main business activities. As a key enabler for this businesstransformation, we established a globally harmonised managementinformation and reporting environment with common measure,processes, tools and governance structures.


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Celebrate your successCycle of strategy to execution: Recognise to reward

Competencies & skills framework

Training strategy

Culture assessment

Any change in process will introducethe need for knowledge transfer. A cleartraining strategy will ensure the smooth

introduction of new ways of workingand in some cases can itself be a non-financial reward.

Our culture survey tool enables theassessment of the current culture, staffmotivation towards reward and the

values they believe drive behaviour. Thisinformation provides a base line ofculture and indicates the types ofinterventions that are needed, other thanmerely changing the reward strategy.

Reward strategy must be aligned to thestrategic measures but also theorganisation design. Jobsand roles are grouped by competencies,each competency having an appropriatemarket value.


A leadingpharmaceutical

company

Behavioural changePwC assisted one of the worlds leading pharmaceutical companies

to communicate new reward and grading structures. PwC workedclosely with the central teams in the US/UK and used changecommunication techniques to help underpin rapid workforceintegration at all levels. PwC completed a series of projects designedto establish a new internal brand while re-positioning all aspects ofgrading, reward and recruitment.

A global FMCGbusiness

Performance improvementPwC worked in partnership with a global FMCG business to designdevelop an implement a performance improvement trainingprogramme aimed at: improving ownership of end to end process,improving clarity around responsibility for communicatingperformance variances, team dynamics, the importance ofnetworking in solving problems.The training was co designed with the client to cover the basicspectrum of: increased knowledge, skills enhancement and attitudechange.

A large

pharmaceuticalcompany

Organisation design

This global pharmaceutical organisation recognised itsCompensation and Benefits function was not structured to deliver anefficient service to an organisation that was increasingly globalising.PwC assisted the company to review the effectiveness of the C&Borganisation including: Reviewing the current organisation structure Benchmarking how other global organisations are structured to

deliver similar reward services globally Assessing alternative operating models and reporting structures


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34PwC

Change your ways for goodLeadership and Governance

Ten tests of Organisation Design

Culture roadmap

Leadership star

The creation of a cultural roadmap isuseful in pulling together all theinterventions that will affect the

organisation culture. It helpsmanagement to see the foundationsand the timing of different actions andthe interconnections between them.

This tool displays the make up of theleadership team across a series ofleadership types, such as visionaryleadership, managerial leadership,personal leadership and technicalleadership.

All organisation design is a compromise:a trade off between different views andmodels. The ten tests allows assessmentacross strategic fit and good designprinciple promoting a considered view ofthis trade off.


A largepharmaceutical

company

Behavioural changePwC assisted a large pharmaceutical company delivering strategic

and tactical advice for implementing a transformational changearound the behaviours and mindset of clients employees, consistingof: a code of conduct roll-out and implementation, Riskmanagement strategy and vision, compliance assurance mapping,compliance IT (and KPI) strategy and global promotional practices

A leadingenergy company

Performance drivePwC assisted one of the largest energy companies in the world totransform the way it operates one of its key businesses. The mainobjectives of this workstream were; create a culture of ownershipand performance drive within the clients operations, define andland the desired organisational behaviours, leadership andinnovation as vehicles for driving business performance, develop

business focused leadership, align local HR reward and recognitionpolicies and develop the organisational capabilities required tounderpin successful implementation.

A large


R & D operating model design

PwC assisted a large pharmaceutical company to design, constructand implement a new operating model for R&D. PwC also advisedon the definition and implementation of new R&D policies,processes and systems, focusing on initiatives to get stakeholders as

well as the front-line involved, and to encourage changes in peoplesbehaviours in a shift towards a project-oriented R&D.


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Maximise the value of informationPerformance management architecture: Information strategy

Integrated Technology Platform

IT Performance Framework

Top-Down Integrated Approach

PwCs pragmatic approach thataddresses prevailing business and ITissues in the market today with EPM in

a way that drives accelerated andsustainable value to the business andcreates a realistic road map for processand technology transition..

Reinforce strategic clarity for theperformance measurement mission. Aproperly Top-Down formulated andclearly articulated strategy sets thedirection for your PerformanceManagement System to monitorBottom-Up implementation company

wide.

Overall alignment of the EPM suiteintegrating performance measurement,planning, budgeting and financialconsolidation processes enable the shiftto higher-value activities to achievesuccessful strategy implementation. A

single integrated EPM technologyplatform is the support required tosuccess on performance management.


Global DrinksManufacturer

BI Project

Background: As part of a global finance transformation PwCsupported the client in developing a new BI capability.

Our approach: This included creation of global reporting andgovernance processes and the design of a new reporting framework,i.e. BI landscapes and reports for all business areas in scope. PwCalso supported creation of the new reporting organisation andgovernance.

Benefits: Globally aligned and transparent reporting.

GlobalManufacturer

Master Date Management ProjectBackground: M&As created multiple processes and technologies.Business units could not provide basic product and pricing reportingas data was inaccessible. 75+ people involved in the data collectioncovering 25 different IT systems.

Our approach: Developed management processes in support ofMDM model stewardship program, maintenance processes, andtechnology recommendations.

Benefits: Resources were not distracted by legacy data issues andwere able to focus on enterprise process efficiencies.

Engineering

Company

Standardising Data Set Project

Background: Client problems with new CRM system due tomultiple data sources (largely due to acquisitions) and conversion oflegacy customer data.

Our approach: Identified and defined the data elements that werecritical to this initiative. Established data quality metrics. Reviewedexisting processes for maintaining data.

Benefits: Determined that 40% of customer data was duplicatedacross divisions. Provided a detailed assessment of client data,developed business rules and created an improvement plan.


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Provide the tools to performPerformance management architecture: EPM and BI applications

Breadth of experience

KPI libraries

Methodology

Industry relevant KPI libraries providea fast start to deploying scorecard anddashboard technology.

Tried and tested EPM implementationmethodology to turn strategy intosustainable business performance.

PwC extended its EPM capability byacquiring the Paragon Consulting Groupproviding domain leadership in strategicplanning, budgeting, forecasting,consolidation, reporting and businessintelligence.


A LargeFinancial

Services client

Application Selection

PwC appointed to support selection process for group reportingand consolidation reporting system

Review of finance processes

Delivered detailed specifications for new system

Management of system selection process

Proof of concept management and delivery

Established ongoing programme of continuous improvement

Engineering Group Best Practice in Application Management Services Successfully supported Oracle Hyperion Enterprise Consolidation

and Group reporting since 2006

Expert support and system development

Rapid and valuable response to client issues

Reduced maintenance effort

Improved data quality and reduced time in data collection andreporting

One of the worlds

largest retailgroups

Transforming the Reporting Process

A global business where reporting overly focused on profit andloss and was highly inefficient (disjointed processes, disjointedExcel and EPM systems)

We helped the client develop a world class blue print for futuregroup reporting including an integrated data model formanagement and legal reporting and a new framework forstandardised reporting processes

Configured Oracle consolidation solution integrating with theERP and automated parts of the process

KPI_ID 11

ConsumerProducts Y

Entertainment& Media

Government&PublicSector

Financial Services

Industrial Products Y

Pharmaceuticals/Life Sciences

Energy

KPI_Name Supply Chain: Capacity Utilisation

KPI_Description TheproducedvolumeofFinishedProduct as apercentageofthe volumeofFinished

Product that canmaximally beproduced.

KPI_Objective Toidentify what percentageofthe maximum productioncapacity is actually being

used.

KPI_Calculation VolumeofFinishedProduct Produced

-----------------------------------------------x 100%

LineSpeedx AvailableHours x OE

-ReferenceSpeedis preferredoverLineSpeed

-AvailableHours basedonstandarddays productionperweek

-OE = Actual OE

KPI_Owner COO

KPI_UnitOfMeasure %

KPI_ValueDriver Maximisecapacity

KPI_DisplayType Bargraph

KPI_Benchmark

KPI_Functional/BusinessLevel

KPI_EnteredBy RuthGilligan

KPI_EnteredDate 28Jan2009

Industry

PricewaterhouseCoopers Advisory:Complete the KPIas short as possible.

Leave words out suchas: number, percentage, relation,

etc.

Example: Percentage sickness absence

This shouldbe: Sickness absence

Give eachKPIa unique number, startingwiththe

department code, followedby an_ (underscore)andfinishwiththe KPIname.

E l M n nt : M _ i n n

PricewaterhouseCoopers Advisory:

Describe detailedthe definitionof the KPI. Mentionprecisely howthe calculationshouldbe done andwhat

values (measures)are used.

Example Sickness absence:

Sickness absence: (total# hours of absence per measureperiod/total # contract hours permeasure period)*

100%.

Absence hours at the days of no contract are not

recordedas absence days.

PricewaterhouseCoopers Advisory:Give as short as possible the f ormula of the KPI. This is a

standarddescriptionat the dashboardnext to the KPIname. Therefore it shouldbe short, but it shouldgive

insight inwhat measures are connectedto the calculationof the KPI

For the example sickness absence wouldbe:(# sickness absence hours /# contract hours)* 100.

PricewaterhouseCoopers Advisory:The KPIowneris the person who is responsible for the

result of that specificKPI. This personalso takesactions if the KPIreport 'amber'or 'red'.

PricewaterhouseCoopers Advisory:

Give as short as possible the formula of the KPI. This is a

standarddescriptionat the dashboardnext to the KPIname. Therefore it shouldbe short, but it shouldgive

insight inwhat measures are connectedto thecalculationof the KPI

For the example sickness absence wouldbe:(# sickness absence hours /# contract hours)* 100.

PricewaterhouseCoop

ers Advisory:What shouldwe excelat?

Measurable factors thatimpact strategy

executionandcreatePricewaterhouseCoopers Advisory:

Optional:What is PwCbest practice?


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Relevant standards for Electronic Content Management

EU Model Requirement for Electronic Records Management (MOREQ)

US Department of Defense (DOD) Records Management Certification

UK National Archives Generic Requirements for Electronic Document and Records

Management

Everyone on the same pagePerformance management architecture: Enterprise information platform

DataWarehousing

Enterprise Access &Search

Data Quality &Cleansing

KnowledgeManagement

PortalApplications

Content

Delivery

Budgeting &Forecasting

Applications

Master DataManagement

Data Integration

Data Mining

Reporting &OLAP Solutions

Operational BI

ScorecardsData Security

FinancialConsolidation

Dashboards

TechnologyEnabled

EnterprisePerformance

Enterprise Information Architecture Framework


A largetelecommunicati

on company

Leading Global Telecoms Group

PwC assisted a large telecommunication company as trusted advisorto define the structure and vision for a long-term programme establishing anEPM suite covering MI, consolidation and financial forecasting across thegroup. Activity included: reviewing strengths and weaknesses of the globalEPM processes, KPIs/metrics, organisation and systems, defining a targetedscope for change across group and operating company business units andprocesses, determining the guiding principles for long-term improvement inMI and planning, including KPI and metrics definitions and establishing a 4-year road map and approach to delivery across the global business.

A largepharmaceuticalcompany

Technical Security Architecture for KnowledgeManagement and E-Commerce Web Portal

PwC assisted a large pharmaceutical company analysing businessrequirements, solution architectures, implementationconsiderations, operational considerations, and product selectioncriteria specific to company's Knowledge Management and E-Commerce initiatives.

A large


Data Management

Using the Data Management Group's proprietary TacticalDevelopment Methodology, PwC assisted the client in developinguser requirements which eventually were used by the client to createfunctional requirements.


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Embracing all sources of data

Performance management architecture: Source systems and infrastructure

IT Governance Framework Cube

PwCs Architecture Framework

IT Functional Model view

Service-oriented architecture centres onthe notion that IT and/or businessassets are described and exposed as

Services. These Services can then becomposed in a loosely coupled fashioninto higher level business processes.

Our IT Functional Model is anintegrated execution framework thatincludes governance, people, process,technology and metrics required for anefficient, effective and successful ITarchitecture.


Leadingfinance

services company

Web Based Finance Toolkit

PwC assisted a leading finance services company to design anonline-portal with a long term vision to develop it into a work-flowtool to support controllers in the performance of their roles. Thedesign of the on-line tool provided the client with a catalyst forapproaching the control environment in a top down way, starting

with the consolidated 10-k financial statements, working down tothe underlying policy, controls and processes supporting thefinancial statements.

A largepharmaceuticalcompany

SAP R/3 implementation and validationPwC assisted a large pharmaceutical company in the implementationof a validated SAP R/3 system. This included the definition andadherence to a formalised systems development life cycle, thedefinition, development and implementation of validation protocolsand procedures, ensuring quality in the development andfinalisation of system requirements, design and development,detailed review and assurance of system and user acceptance testing.

Leading tobacco

company

ERP solution and the implementation of 3 new

regional Shared Service CentresPwC assisted a leading tobacco company implementing acombination of SAP Corporate Finance Management (CFM) andSAP In-House Cash (IHC). These systems were linked to Citibank'sCitiDirect platform to facilitate the processing of both payments on

behalf and internal settlements. PwC conducted a data gatheringand analysis exercise to define the business needs, write functional

blueprints and RICEF requirements, build enhanced transactionalFX hedge management process, database tables and functionality toefficiently identify, consolidate and hedge FX exposures.

PwC brings together unique thoughtleadership on Business ProcessManagement to design and build targetIT architectures. This approach basedaround understanding the functions

well suited to BPM lends itself todefining pragmatic, implementablesolutions.


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This publication has been prepared for general guidance on matters of interest only, and does not constitute professional adv ice. You should notact upon the information contained in this publication without obtaining specific professional advice. No representation or w arranty (express orimplied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law,PricewaterhouseCoopers LLP, its members, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you

or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

2011 PricewaterhouseCoopers LLP. All rights reserved. 'PricewaterhouseCoopers' refers to PricewaterhouseCoopers LLP (a limited liability

partnership in the United Kingdom) or, as the context requires, other member firms of PricewaterhouseCoopers International Limited, each ofwhich is a separate and independent legal entity

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