Ron Dimon - Connected Planning

1 COVER

2 TITLE PAGE CONNECTED PLANNING A PLAYBOOK FOR AGILE DECISION MAKING SECOND EDITION Ron Dimon

3 COPYRIGHT

4 DEDICATION

5 FOREWORD Foreword from the First Edition

6 PREFACE Who Should Read This Book? Overview of the Content So What? Organic Growth and Outperformance Management Note

7 ACKNOWLEDGMENTS

8 CHAPTER 1: What's Broken and What's Possible? Strategy-Execution Gap Buckets of Pain Impact Notes

9 CHAPTER 2: Connected Planning

10 CHAPTER 3: A Planning Operating System Context Impact Responsibility The Planning Operating System Macro and Micro The Middle Summary Notes

11 CHAPTER 4: Debate: What Can We Do, and What Should We Do? People The Process Scenarios Resilience Drivers: What Moves the Needle? Debate Management Enabling Technologies Potential Quick Wins Summary Note

12 CHAPTER 5: Commit: Who Will Deliver What, by When? Accountability Gaming the System Enterprise Planning and Forecasting Enabling Technologies Ingredients for Your EPM Roadmap Potential Quick Wins Summary Notes

13 CHAPTER 6: Visualize: Where Are We, Right Now? Management by Exception Your Point of View Information Qualities Information Delivery Management and Statutory Reporting Sustainability Reporting Enabling Technologies Rationalization Potential Quick Wins Summary Notes

14 CHAPTER 7: Understand: Why Did We Get the Results We Got? Business Questions Patterns and New Insights Big Data and Predictive Analytics Data Visualization Enabling Technologies Components for Your Connected Planning Roadmap Potential Quick Wins Summary Notes

15 CHAPTER 8: Execute: From Insights to Actions to Results The 10-Step Insight Process Everything Is Connected Sales Performance Management Sales Operations Performance Order-to-Cash Performance Management Supply Chain Performance Management 2 Marketing Performance Management Summary Notes

16 CHAPTER 9: Strategy: Everyone Aligned to the Right Outcomes The Language of Strategy Functional Value Maps Optics: Line of Sight Metrics Equal Focus Profitability Strategic Flexibility Closing the Gap Summary Notes

17 CHAPTER 10: Digital Planning Cloud Computing Blockchain Robotic Process Automation Cognitive Technologies Predictive Analytics Cybersecurity Notes

18 CHAPTER 11: Bringing It All Together Alignment A Common Business Language Maturity Is in the Arrows Return on Investment and Total Cost of Ownership Standard Architecture Your Connected Planning Roadmap Organizational Readiness: The Connected Planning Center of Excellence Paralyzed by Feuds? Connected Planning and Incentive Plans How Do You Get Started? Summary Notes

19 APPENDIX: AN EPM MATURITY MODEL

20 BIBLIOGRAPHY

21 ABOUT THE AUTHOR

22 INDEX

23 END USER LICENSE AGREEMENT

1 Chapter 1 Table 1.1 A Summary of the Buckets of Pain

2 Chapter 3 Table 3.1 A Business Function and Layer Matrix

3 Chapter 4Table 4.1 Examples of Models That Support Strategic Objectives

4 Chapter 6Table 6.1 Data Consumption Is Undergoing a Major ShiftTable 6.2 Example Roles Throughout the OrganizationTable 6.3 Matching the Tool to the Type of User

5 Chapter 7Table 7.1 Big Data Use Cases

6 Chapter 8Table 8.1 Connected Planning and Order-to-Cash Performance Management Initiat...Table 8.2 Potential Connected Planning Initiatives for Lenovo GroupTable 8.3 Connected Planning Components by Business Impact Area and DecisionTable 8.4 Connected Planning Initiatives by Industry by Management Process

7 Chapter 9Table 9.1 Actions That Can Impact Profitability

8 Chapter 11Table 11.1 How Connected Planning Supports Nature's Rules for Survival

9 AppendixTable A.1 Maturity Model Assessment ComponentsTable A.2 Sample Maturity Scoring

1 Chapter 1 Figure 1.1 Barriers in the Strategy-Execution Gap

2 Chapter 3 Figure 3.1 Planning Operating System: High-Level Figure 3.2 Start of the Cycle Figure 3.3 Understanding Your Results Figure 3.4 Debate Possible Scenarios Figure 3.5 Accountable CommitmentsFigure 3.6 Bringing It All Together

3 Chapter 4Figure 4.1 Close-Up of the Debate Process and Its Inputs and OutputsFigure 4.2 Benchmark Analysis for Citizens Bank, Q4 2010Figure 4.3 KPI Decomposition into Value DriversFigure 4.4 Sales Commission ModelFigure 4.5 High-Level Architecture for Modeling

4 Chapter 5Figure 5.1 Close-Up of the Commit Process and Its Inputs and OutputsFigure 5.2 Top-Down, Bottom-Up, and Side-to-Side Iterative PlanningFigure 5.3 A Simple PlanFigure 5.5 Integrated Plan TypesFigure 5.6 High-Level Planning Architecture

5 Chapter 6Figure 6.1 Close-Up of Visualize Process and Its Inputs and OutputsFigure 6.2 Volume and General Domain of Reports by Organization LevelFigure 6.3 Generic Reporting ArchitectureFigure 6.4 End-to-End Financial Close Process at a High LevelFigure 6.5 Sustainability Reporting in Oracle Hyperion Financial Management...Figure 6.6 Shanks Group Plc 2012 Annual Report Page 1Figure 6.7 Typical Reporting High-Level Architecture

6 Chapter 7Figure 7.1 Close-Up of the Understand Process, and Its Inputs and Outputs...Figure 7.2 Metric Decomposition within the Business MatrixFigure 7.3 Standard Time Series Financial ReportFigure 7.4 Example of Multivariate and Comparison PatternsFigure 7.5 Distribution of Each Record That Falls within Each $100 Profit Ra...Figure 7.6 From–To Patterns: Deliveries Out of Berlin (Left), Gulf Coast Hur...Figure 7.7 OutliersFigure 7.8 Multiple Trend Lines: Discount by Quarter/Year by SupplierFigure 7.9 Dollar Purchase Amounts versus Customer Age Shows Three Distinct ...Figure 7.10 Geospatial ExampleFigure 7.11 Waterfall ChartFigure 7.12 Structuring Unstructured DataFigure 7.13 Sparklines Embedded within TextFigure 7.14 Analytics Architecture

7 Chapter 8Figure 8.1 The 10-Step Insight ProcessFigure 8.2 The Planning Operating System Works from Corporate to Business-Un...Figure 8.3 Connected Planning Outside of the Four Walls of Your Organization...Figure 8.4 Standard Order-to-Cash ProcessFigure 8.5 Management Operating System on Top of Order-to-Cash Transactions...Figure 8.6 Full Supplier Performance Management Operating SystemFigure 8.7 Financial Impact of Supplier Performance Management on a Company...

8 Chapter 9Figure 9.1 Strategy Map for Manufacturing BusinessFigure 9.2 Functional Value Map Based on the Strategy Map in Figure 9.1Figure 9.3 Balanced Scorecard SystemFigure 9.4 Strategy in the Planning Operating System

9 Chapter 10Figure 10.1 Cognitive Technologies

10 Chapter 11Figure 11.1 The Planning Operating SystemFigure 11.2 The Middle of the Management Operating SystemFigure 11.3 Completed Management Operating System SurveyFigure 11.4 Survey Results by Capability (lower means more need of this capa...Figure 11.5 Information ArchitectureFigure 11.6 Value ChainFigure 11.7 Initiatives Organized into Achievable Work Packages

11 AppendixFigure A.1 EPM Maturity Model Scoring SheetFigure A.2 Example Assessment Score

1 Cover

2 Table of Contents

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