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Performance Management Maturity Methodology. Mitchell Weisberg – Lumen, Inc. . Recommendation: IF YOU ARE PLANNING TO COME TO THIS SESSION: . Take our Performance Management Maturity Assessment before attending this session for greater value from the session.

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Performance management maturity methodology l.jpg

Performance Management Maturity Methodology

Mitchell Weisberg – Lumen, Inc.


Recommendation if you are planning to come to this session l.jpg
Recommendation: IF YOU ARE PLANNING TO COME TO THIS SESSION:

Take our Performance Management Maturity Assessment before attending this session for greater value from the session.

You can take the assessment survey at:

www.Lumeninc.com/Maturity

We will email you your results prior to the session so you can compare your results with others in the session.


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Objectives

Provide deeper understanding of how performance metrics will drive higher performance in your company

Understand why knowing maturity is key is achieving success in any performance management implementation

Learn how to adapt approach to your organization’s performance maturity to accelerate implementation and achieve faster results

Learn from the execution of performance metrics at Amgen

Develop next steps to apply learnings in your organization


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Agenda

  • Welcome & Introduction

  • Lumen, Inc. Overview

  • Current Situation

  • Amgen Case Study: CPM Maturity Applied

  • Performance Management Maturity Model

  • Lessons Learned

  • Discussion


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Lumen, Inc.is a specialty management consulting firm of senior, experienced professionals who collaborate with clients to rapidly transform them into high performance businesses.

Align business performance with the business strategy

Establish and execute performance management throughout the organization

Rethink customer and employee relationships for greater profitability, satisfaction and retention

Reengineer processes for greater productivity

Manage change more effectively for rapid achievement of competitive advantage


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Technology Agnostic: Relationships with Vendors Across the CPM Landscape

Our deep familiarity with all the key vendors in the CPM space is a strength

Counsel is objective, choosing the right product for the client based on needs and best-in-class solutions

Vendors provide training to our consultants on a regular basis, so our service to clients is always current


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Agenda CPM Landscape

  • Welcome & Introduction

  • Lumen, Inc. Overview

  • Current Situation

  • Amgen Case Study: CPM Maturity Applied

  • Performance Management Maturity Model

  • Lessons Learned

  • Discussion


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Businesses Continue to Face the Same Challenge of Faster Growth and Higher Performance

Over abundance of data and information

Management demands for better information for decision making

Increased market expectations

Greater internal complexity

More dynamic markets require higher business agility

Organizational Performance Issues

Benefits of CPM

  • Measure performance outcomes with leading metrics enabling managers to anticipate and respond to change with decisions or actions

  • Consistently and systematically monitor progress towards goals and targets to enabling proactive addressing of issues

  • Enable executionof the company’s strategy through line of sight objectives, processes and practices

  • Increased ability to manage internal performance to market demands

1 April 2014

9


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Today’s Economy Superimposes a Greater Challenge: Decrease Costs While Maintaining Capability for Growth

Improving operational efficiencies

Without reducing production capability

Reducing human capital

Without losing valued employees

Reducing sales and service expenses

Without customer attrition

Maintaining financial results

Without missing forecasts and market expectations

More dynamic markets requiring higher business agility…

… and greater visibility

1 April 2014

10


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CPM Delivers Capability for Better Business Performance Costs While Maintaining Capability for Growth

  • Corporate Performance Management: system of metrics, processes and supporting IT that enables users to define, monitor, manage and optimize process outcomes while creating alignment with strategic objectives across multiple organization levels

  • Successful CPM requires:

    • Standard methodology and consistent metrics

    • Culture supporting fact-based decisions

    • Technology to deliver accurate metrics and analysis

  • Incorporates tool and methodologies: Balanced scorecard, performance metrics, strategy map, Lean, SixSigma, value tree, process improvement or redesign, change management


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CPM Closes the Gap Between Strategy and effective Execution Costs While Maintaining Capability for Growth

Strategy

Execution


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Manage the Business Costs While Maintaining Capability for Growth

Conduct the Business

Performance and Management

Business Intelligence


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Achieving the Value of CPM Costs While Maintaining Capability for Growth

Significant resource savings

Simplified reporting environment

Reduced budget and reporting cycle times

Lowered cost of compliance

Reduced spreadsheet proliferation

Tangible Benefits

Intangible Benefits

  • Movement to a flexible, rolling forecast and budget cycle.

  • Significant improvements in forecasting accuracy

  • Improved decision-making capability

  • Increased accountability through better visibility

  • Information to manage the business more effectively


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Why isn’t Performance Management (CPM) delivering the expected value for everyone who is implementing it

15


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Agenda expected value for everyone who is implementing it

  • Welcome & Introduction

  • Lumen, Inc. Overview

  • Current Situation

  • Amgen Case Study: CPM Maturity Applied

  • Performance Management Maturity Model

  • Lessons Learned

  • Discussion


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Amgen: A Biotechnology Pioneer expected value for everyone who is implementing it

Founded in 1980, Amgen was one of the first biotechnology companies to successfully discover, develop and make protein-based medicines

Today, Amgen is leading the industry in its next wave of innovation by:

Developing therapies in multiple modalities

Driving cutting-edge research and development

Continuing to advance the science of biotechnological manufacturing


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Amgen’s Mission… expected value for everyone who is implementing it

…to serve patients

Inflammation

Nephrology

Oncology


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Amgen's Business at a Glance expected value for everyone who is implementing it

Locations

Cambridge, MA

Norway

Denmark

Luxembourg

Finland

Toronto, ON

West Greenwich, RI

Sweden

The Netherlands

Washington, DC

Belgium

Estonia

Ireland

Burnaby, BC

Latvia

Lithuania

Bothell, WA

Russia

England

Seattle, WA

Czech Republic

Longmont, CO

France

Poland

Boulder, CO

Switzerland

Slovakia

Hungary

Japan

Fremont, CA

India

United Arab Emirates

South San Francisco, CA

Hong Kong

Greece

Slovenia

Thousand Oaks, CA

Austria

Germany

Mexico City, Mexico

Italy

Louisville, KY

Spain

Australia

New Zealand

Juncos, Puerto Rico

Portugal


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Amgen’s Products expected value for everyone who is implementing it

For additional information about Amgen products, including important safety information, please visit www.amgen.com


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What Was the Problem? expected value for everyone who is implementing it

  • Over a dozen Dashboards with different metrics and design

  • Large number of non-Standard metrics

  • Significant manual effort to deliver dashboards

  • Challenges to do factual comparisons between multiple organizational unit performance


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Solution: Service Partnership of Business & IS to Deliver Metrics Using Standard Methodology

  • Amgen’s approach

  • CASE STUDY DISCUSSION


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Approach : 3 Step Process Metrics Using Standard Methodology

  • Created Custom Performance Management Methodology

  • CASE STUDY DISCUSSION AND ANSWERS


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Performance Management Methodology Metrics Using Standard Methodology

Framework to consistently implement metrics

Repeatable and flexible process from project inception to delivery

Drives top-down and bottom-up approaches

Playbook contains instructions, templates, and roles & responsibilities


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Performance Management Methodology Metrics Using Standard Methodology


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Technical Solution Maintains Standard Metrics Enabling Cross-business Unit Comparisons

Metric Performance

Scorecard Hierarchy

IBM Cognos Metrics Studio

  • Amgen standard IT scorecarding application

  • Powerful tool to track and analyze scorecard & metrics performance

  • Indicates the current status of the business

  • Supports a performance management culture

SCREENSHOTS OF IBM COGNOS

SCREENS DELETED


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The Scorecard Enables Root Cause Analysis of Problems Cross-business Unit Comparisons

Metrics Studio contains rich features …

  • Quickly identify and focus on problem areas

  • View performance trends over time

  • View metric relationships & impact diagrams

  • Drill-down reports & analysis for details or context

SCREENSHOTS OF IBM COGNOS

SCREENS DELETED


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Metrics Definitions are Held in a Central Repository Cross-business Unit Comparisons

  • Metrics Catalog

  • Web-based tool integrated with IBM Cognos Report Studio

  • Supports the performance management methodology

SCREENSHOTS OF IBM COGNOS

SCREENS DELETED


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  • Methodology Cross-business Unit Comparisons

  • Technology

  • Prototype

  • Pilot…

But was it complete?

Did it deliver expected results?

Why not? ?


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What Was the Problem “2”? Cross-business Unit Comparisons

  • CASE STUDY DISCUSSION AND ANSWERS

  • (Hint: Performance Management Maturity)


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Agenda Cross-business Unit Comparisons

  • Welcome & Introduction

  • Lumen, Inc. Overview

  • Current Situation

  • Amgen Case Study: CPM Maturity Applied

  • Performance Management Maturity Model

  • Lessons Learned

  • Discussion


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Performance Management Maturity Model: Cross-business Unit Comparisons Charting the Course

Developed with input from across industries and thought leaders

Represents a formula for long-term success that is a function of three fundamental capabilities

Outlines a path forward as companies work toward closer alignment of business strategy and execution


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Three Dimensions of the Cross-business Unit ComparisonsPerformance Maturity Model

  • Organization and Culture

    • The practices and integration of metrics into the organization’s behaviors; includes the breadth and depth of metrics in managing performance

  • Processes

    • The practices and structures for producing, distributing, managing and using performance metrics; includes the quality of the metrics

  • Technology and Data

    • The technology support and data quality that underlies the metrics, scorecards and dashboards


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The Model is Based on Three Dimensions Cross-business Unit Comparisons

Performance Maturity Model

Organization & Culture

Processes

Technology & Data


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Lumen Performance Management Maturity Model Cross-business Unit Comparisons

Organization & Culture

Processes

VISIONARY

MASTERY

INTERMEDIATE

EXPERIMENTATION

Technology & Data


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Lumen Performance Management Maturity Model Cross-business Unit Comparisons


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SO Where Was Amgen: Cross-business Unit Comparisons

CASE STUDY DISCUSSION


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Amgen: Cross-business Unit ComparisonsMetric Maturity Survey Results (Example)*

Overall metrics maturity

People Process & Technology

  • CASE STUDY DISCUSSION AND DATA

  • (Hint: Performance Management Maturity)

*NOTE: Numbers disguised, but demonstrating trend


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Map Yourself Against the Model Cross-business Unit Comparisons

Organization & Culture

Performance Maturity Model

Processes

Data subset to highlight participants in Session

VISIONARY

x

8

x

14

21

x

24

x

26

4

x

20

17

x

25

x

16

MASTERY

18

31

10

x

12

22

13

x

8

19

28

6

x

15

32

x

INTERMEDIATE

5

x

9

x

32

x

6

21

17

5

29

x

16

4

x

x

x

14

28

10

9

22

13

31

20

x

EXPERIMENTATION

12

19

24

x

25

x

15

29

26

x

x

18

32

4

Technology & Data

31

x

5

7

26

7

x

x

22

x

10

x

19

x

25

20

x

x

x

x

x

x

9

12

8

28

21

15

13

16

7

14

17

29

18

24

6


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Process Dimension Appears Least Mature Cross-business Unit Comparisons

Overall

Process

Organiz

Technol


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Process Dimension Appears Least Mature Cross-business Unit Comparisons

Finance

IT

Overall

Overall

Organiz

Process

Tech

Organiz

Process

Tech

Operations

Overall

Organiz

Proc

Tech


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Agenda Cross-business Unit Comparisons

  • Welcome & Introduction

  • Lumen, Inc. Overview

  • Current Situation

  • Amgen Case Study: CPM Maturity Applied

  • Performance Management Maturity Model

  • Lessons Learned

  • Discussion


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Observations Cross-business Unit Comparisons

Performance Management Maturity is quite low

Maturity levels may vary by department

You must balance multiple dimensions of maturity challenges

The Organization/Culture and Process dimensions (Methodology for dashboard/scorecard, metrics) are the least mature areas

CPM delivers significant benefits, and, in today’s economy is a critical management methodology to implement.


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Observation: Cross-business Unit Comparisons

You can accelerate value delivery by addressing maturity issues:

  • Use the Performance Maturity Model to benchmark your dashboard initiatives and goals

  • Adapt methodology to address different maturity of organizational units

  • Expand your approach to address the dimensions of performance maturity

    • Cultural, Process and Technology

Take our Performance Management Maturity Assessment at

www.Lumeninc.com/maturity

Use the Results to Put your Project Back on the Fast Track


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Throw Away “The Box” Cross-business Unit Comparisons

Use the Performance Maturity Model to initially to establish your CPM initiatives and goals

Adapt methodology to address different maturity of organizational units

Expand methodology to fit dimensions of performance maturity

Cultural

Process

Technology

Target the value for your maturity level “don’t shoot for the moon”

Value delivered is relative to the maturity of the organization

Use the Performance Maturity Model to ensure that your CPM initiatives have the right balance of people, processes and analytic applications

Garter, 2008


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Key Takeaways Cross-business Unit Comparisons

Customizing the Performance Management approach to the company’s Maturity is a key element to achieving efficient, successful implementation…

and ultimate USE of a CPM methodology

Start now with an assessment of Performance Maturity!


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Thank you! Cross-business Unit Comparisons

Contact Information:

Mitchell Weisberg

Take ourPerformance Management Maturity Assessment now:

www.Lumeninc.com/Maturity

We will email your results.


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