Scorecard And Dashboard And Metrics... Oh My! FMI PD Week 2012

Transcription

1 Scorecard And Dashboard And Metrics... Oh My! FMI PD Week 2012

2 Today s presenters Panelists: Mario Malouin, Vice-President and Chief Financial Officer, Canadian Air Transport Security Authority (CATSA) Jean-Paul Lemieux, Director, Trade Commissioner Service (TCS) Planning and Client Service Support Division, Department of Foreign Affairs and International Trade Canada Facilitators: Cathy Green, Senior Managing Consultant, Strategy and Transformation, IBM Canada Liz Geiger, Associate Partner, Business Analytics and Optimization, Canadian Public Sector and Health Market, IBM Canada

3 Governments are increasingly turning to performance information to deliver smarter outcomes What if Human resources could attract and retain topperforming employees by understanding drivers behind employee satisfaction? Central agencies and parliamentarians could see how every tax dollar is spent? Program management Transportation and logistics could gain critical insights to manage and maximize resources people, capital and processes? could improve traffic flows and reduce wait times and emissions? Budgeting and finance Law enforcement could have real-time insights into program budgets across jurisdictions to reduce spending responsibly? could have insights to beat criminals to the scene? Programs and services delivery could predict current and future needs of citizens and design programs accordingly?

4 Dashboard and scorecards can be valuable tools to integrate performance information in the quest to realize outcomes-based government Today we will share two practical dashboard/scorecard examples These tools are helping organizational management to: Measure key business functions Provide fact-based data for decision-making Motivate and direct behaviour Focus attention where it s needed most Make performance more visible and enable accountability Improve execution and delivery of programs

5 Agenda CATSA Operating in a Volatile, Uncertain, Complex and Ambiguous (VUCA) World (25 minutes) DFAIT Performance Measurement Initiatives in Support of DFAIT's Commercial Program (25 minutes) Questions and Panel Discussion (20 minutes)

6 Financial Management Institute of Canada Professional Development Week Scorecard and Dashboard and Metrics Oh My! A Full Strategic Corporate Partnership is a Critical Success Factor to the Achievement of an Organization s Strategic Objectives in a Volatile, Uncertain, Complex and Ambiguous (VUCA) World. Mario Malouin, CPA, CA, MA Vice-President and Chief Financial Officer Canadian Air Transport Security Authority Tuesday, November 27, 2012 Ottawa Convention Centre Ottawa, Ontario

7 Table of Contents Page Current Environment 3 CATSA 14 Balance Scorecard 18 Boarding Pass Security System (BPSS) 21 Planning Budgeting and Forecasting Tool (PBFT) 28 Looking Forward 34 Success Factors 37 7

8 Current Environment 8

9 Interdependence Corporate scandals 9/11 Both had a global influence 9

10 Corporate Scandals A financial tsunami that impacted many countries! How? 10

11 9/11 In the immediate aftermath of 9/11, the aviation security system underwent its most significant change worldwide Literally overnight, it became an urgent global priority to enhance counter-terrorism capabilities and preparedness In Canada, the federal Budget of December 2001 contained a $2.2 billion package of new funding for civil aviation security improvements. The Budget also announced the creation of the Canadian Air Transport Security Authority (CATSA) 11

12 Interdependence In times of crisis or instability, events can transcend borders and spread globally 12

13 VUCA Strong interdependence creates a VUCA world In a VUCA world, top leaders are faced with dilemmas that have no solutions and yet they are still required to make sound decisions Traditional leadership skills aren t enough 13

14 Adaptation Since we live in a VUCA world in which financial resources are more and more limited, CFOs and finance function must adapt. But how? 14

15 Alignment "The task of leadership is to create an alignment of strengths, making our weaknesses irrelevant." - Peter Drucker 15

16 Alignment To guide a company, CFOs should be in tune with the markets, and able to give early warning signals to the organization, and help the organization think through how to adjust quickly enough to market signals The Finance function should be a visionary in the business and not just a storyteller 16

17 "Growing complexity, talent scarcity, and technology deficits are most likely to put the finance function s effectiveness at risk." CFO Research Services and KPMG 2012 Global CFOs on the Art of Constructive Change 17

18 18

19 CATSA 19

20 CATSA Background Secure critical elements of the air transportation system: Pre-Board Screening (PBS) Hold-Baggage Screening (HBS) Non-Passenger Screening (NPS) Restricted Area Identity Card (RAIC) 20

21 CATSA at a Glance 89 airports More than 51 million passengers screened 62 million pieces of baggage screened More than 5,400 screening officers 106 checkpoints 314 screening lines 4 regions 21

22 CATSA Governance Crown corporation Report to Parliament through the Minister of Transport Governed by a Board of Directors Regulated by Transport Canada Third-party screening contractor 22

23 Balance Scorecard 23

24 Balance Scorecard A single version of truth Source: Transforming Finance, TDWI Best Practices Report 24

25 Balance Scorecard CATSA tracks high level strategic performance indicators in a scorecard to help align the corporate mission and visions with day-to-day activities How can we do it? 25

26 Boarding Pass Security System (BPSS) 26

27 BPSS Automated boarding pass verification Class 1 airports Developing expansion plans 27

28 BPSS Benefits Enhanced: Validation of boarding passes Security resolution Performance monitoring 28

29 Boarding Pass Verification Paper boarding passes Electronic boarding passes 29

30 Security Incident Resolution Process CATSA Security Operations Centre (SOC) is notified of an incident along with information about the passenger involved SOC uses BPSS to search for passenger 30

31 Security Incident Resolution using BPSS BPSS tells SOC exactly when and where the passenger was screened, as well as the flight information By aligning the time stamps, the SOC reviews Closed Caption Television (CCTV) footage of the passenger and incident Using flight information from BPSS and physical description from CCTV, the passenger is located Incident is contained / resolved 31

32 BPSS Performance Management Vital to daily operations Improves customer service Wait-time information Data sharing initiative Planning, Budgeting and Forecasting our cost 32

33 Planning Budgeting and Forecasting Tool (PBFT) 33

34 34 34 PBFT Transform enterprise planning budgeting and forecasting tool (PBFT): Implement an end-to-end business solution (provide integration) Minimize use of Excel spreadsheets (improve data reliability) Implement standard templates/consolidations Enable financial/non-financial modeling and what-if analysis Empower end users (Responsibility Managers) Reduce reliance on Financial Analysts Realize productivity gains in Financial Planning

35 Before Lack of Integration Source data not linked to costing models No data integration Data manipulation required prior to loading source data into costing models Costing models are not linked to TM1 Inability to report quickly on model inputs that generate an expense Inability to quickly update costing model data and assess impacts. Inability to deploy common drivers and assumptions across all costing models 35

36 After Integrated Data Consolidated cube Internal/external reports $ Actuals & Forecast Source data is linked to costing models Assumptions $ Forecast Screening Capital Maintenance HR Other Expenses Reports on model inputs & details Integrated data Source data is loaded directly from the data warehouse to the costing models Costing models are linked to TM1 TM1 web input ->TM1 Cubes Operations Equipment Data Warehouse Operational data HRIS GP Ability to report quickly on model inputs that generate an expense Ability to quickly update costing model data and assess impacts Ability to deploy common drivers and assumptions across all costing models 36

37 Planning and Budgeting Screening Hours 37

38 Converting Screening Hours to Budget Dollars 38

39 Looking Forward 39

40 Looking Forward Predictive Analytics: To leverage organizational business knowledge by applying sophisticated analysis techniques to enterprise data. The resulting insights lead to actions that demonstrably change how resources are assigned. Financial Reporting Tool: To automate the creation of statutory and regulatory reports, providing a collaborative environment in the creation of financial data, narrative analysis and XBRL tagging. 40

41 Looking Forward Combining predictive analytics models with organizational business knowledge provide insight into critical issues such as outcome improvement. Through measuring uncertainty surrounding these issues, predictive analytics enables proactive risk management, refining key decision making processes through controlled, iterative testing of potential actions and their likely intended-and unintended-consequences. These findings and their corresponding business rules can then be deployed within front-line operational systems to identify measurable cost savings, repeatable process improvements, and sustainable competitive advantages. 41

42 Success Factors 42

43 Success Factors Among the top 10 objectives for the Finance function over the next 2 years. hire qualified people and retain them and increase Finance knowledge (Corporate Finance Function Survey: The Canadian Perspective by KPMG) Passion Capital: Passion Experience Knowledge 43

44

45 Performance Measurement Initiatives in Support of DFAIT's Commercial Program Department of Foreign Affairs and International Trade TCS Planning and Client Serivce Division FMI November 27,

46 Presentation Outline The Trade Commissioner Service s Approach to Planning and Performance Measurement What led us to using Balanced Scorecards and Business Intelligence The International Business Development Dashboard Challenges, Achievements and Lessons Learned 46

47 What is the Canadian Trade Commissioner Service? Part of the Department of Foreign Affairs and International Trade Canada. The mandate of the Trade Commissioner Service is to increase Canadian Prosperity through International Trade. Canadian Trade Commissioner Service helps Canadian companies succeed globally with services provided from over 150 points of service around the world. Trade Commissioners provide a variety of services to Canadian clients: Preparation for International Markets Qualified Contacts Market Potential Assessments Problem Solving 47

48 The TCS Approach to Planning and Performance Measurement 1. Rigorous Annual Commercial Economic Program Planning 2. Use Performance Measurement Tools 3. Internal governance 4. Ensure Accountability Requirements Met 48

49 TCS Operational Planning and Reporting Life Cycle 49

50 What led us to using Balanced Scorecards and BI? A common framework generates consistency in reporting world-wide. Improves accuracy and accountability of reporting by the Trade Commissioner Service. Strengthens the use of resources to generate outcomes, using readily available data and statistics. 50

51 Why use the BI approach? Centralizes information from multiple corporate systems Transparent system that increases accountability in managers Ease of data manipulation for managers overseas, enhancing reporting capabilities 51

52 What is the International Business Development Dashboard? Is a key component of overall efforts to track outputs/outcomes and improve management practices Provides information on indicators that are key to the organization s and commercial program success Influences managers to concentrate on areas that are mission critical and provides with information to guide decision making Presents timely data: data is updated every weekend 52

53 How Data is Brought Together TRIO/CRM Cdn Commercial Interests List IBD Scorecards HR Data Virtual Trade Commissioner Trade Cube Financial Data TCS Client Survey 53

54 Analytical Capabilities Management Questions How many clients are we serving? Dashboard Metrics # of new clients to post, # of new clients to region, # of new clients to the TCS Where do our clients want to go? What level of services are being delivered? Are clients satisfied with the services/support that they are receiving? Client Preference vs. CCIL Rankings Number of services delivered, outcalls performed and leads disseminated by mission Client Satisfaction metric and report How does a mission compare to its peer group? Number of outcalls, number of leads by mission vs. others in same tier How are we working now compared to previous years? Graphs showing trends for new clients, outcalls and leads Is the Integrative Trade Model being implemented? Services delivered by business line, outcalls delivered by business line 54

55 Scorecards 55

56 Reports in Scorecard 56

57 Senior Management Use Report quarterly to the International Commerce Coordination Board Meeting briefing requirements Regularly provide audit/evaluation teams with accurate data and analysis Provision of ad-hoc analysis to support informed decision making 57

58 Key Challenges Definitions/guidelines Consistency of reporting Training Users 58

59 What the Dashboard Has Achieved Highlighted accountability Clarified the importance of data recording Improved reporting and quality of data in corporate systems Provides ready access to relevant data 59

60 Ensure effective consultations Lessons Learned Work with BI group to align corporate systems Transparency helps to improve data quality and compliance Learn from others and share best practices with other departments Senior managers play a pivotal role in creating an appetite for performance information: information breeds interest in more information 60

61 Future of BI at DFAIT BIAC Business Intelligence Advisory Committee DFAIT has put in place a governance committee for BI related initiatives. Currently working on a project to identify the Subject Matter Experts (SME's) to define KPI's for the creation of a scorecard and dashboard at the ADM level to be used by the DM. 61

62 Questions???