The incremental approach of EPM

Finext Financial Services28 oktober 2011

http://financialservices.finext.nl

Agenda

• What is EPM?

• Film: David Giannetto’s vision on EPM

• Challenges and developments

• Fundamentals of EPM

• Cases

Nordea Bank

Royal Bank of Canada

Unibanco

• Tips for a jump start

• Film: Inspiration

What is EPM?

• Gartner:

“The combination of management methodologies, metrics and IT ( applications, tools and infrastructure) that enable users to define, monitor and optimize results and outcomes to achieve personal or departmental objectives while enabling alignment with strategic objectives across multiple organizational levels (personal, process, group, departmental, corporate or business ecosystem).”

• Ventana Research:

“A business and IT imperative and management method that links people, process, information and technology to align business and technology to improve results.”

• Cranfield University:

“The process of quantifying past action, in which measurement is the process of quantification and past action determines current performance.”

Enterprise Performance Management

Challenges and developments

• One size does not fit all

• It’s not about copying someone else’s model

• Focus on process:

Emphasizes operational effectiveness and efficiency that leads to

strong financial results

Provide information on a timely basis

Focuses on the future, not the past

• ‘Energy’ within an organization is a limited resource

• Refocus the ‘power’ to places that need it

• Most systems within organizations focus on processing transactions

• Simplifying number of applications/systems in house

EPM is about

• Using data to help make decisions

• Create information

• Leveraging information that already

exists

Fundamentals of EPM

Nordea Bank

EPM at Nordea Bank

Nordea’s Challenges

• “avoiding too strong a focus on the financial perspective” (difficult to resist, for a financial institution) and

• “further improving linkage of Nordea’s incentive system to the BSC” as next steps

• to becoming a “best practice BSC user.”

• “start to use [the BSC] as soon as possible, even if not all key performance indicators are defined or possible to measure,” he advises

• “and don’t be afraid to update — remember, it is a continual learning process.”

Royal Bank of Canada

EPM at Royal Bank of Canada

Incremental improvements

RBC’s Future Plans

“When our customers are willing to trust us with detailed information about their lives, their needs and wants, then we can provide choices for people that also provide opportunity for the Bank.

We can offer the customer trade offs between what they are and are not willing to pay for. We can allow the customer to choose what’s important to them in a banking relationship.”

Unibanco

• Establishing the model

• Large, internal communications campaign aimed at: Continuing education on balanced scorecard Business strategy Individual contributions to the strategy

• Implementation of the modelImplementation team housed within HR

• Maintenance of the modelLearning and development programs for both current and future employees to get in line with strategy

Tips for a jump start

• Establishing the framework VISION

• Communication of objectives and strategy

• Implementation of the model; “Pull" instead of "push“ No hasty implementation Consistent and transparent communication Use existing data and resources

• Maintenance of the model; Information exchange between all levels of the organization levels

Continuous feedback and adaptation

Inspiratie

http://www.youtube.com/watch?v=4RdOwbgg3MM&feature=related

Got inspired and want to know more about our vision on EPM, contact us ….

Nerissa Laclénerissa.lacle@finext.nl+31(0)6 54222775

http://nl.linkedin.com/in/nerissalaclehttp://twitter.com/nerissalacle

Alwin Dooijeweerdalwin.dooijeweerd@finext.nl+31(0)6 13526981

http://nl.linkedin.com/pub/alwin-dooijeweerd/5/207/49ahttp://twitter.com/alwin_do