Oracle Scorecard and Strategy Management. Christian Dunshirn Oracle Austria GmbH

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1 Oracle Scorecard and Strategy Management Christian Dunshirn Oracle Austria GmbH Oracle BI11g Launch Event, Vienna,

2 What is a scorecard?

3 Scorecards What Are they? A Structured Management Discipline Extended Business Intelligence Key Performance Indicators Measures Digital Dashboards Management Cockpits Benchmarking

4 Balanced Scorecard Basics The balanced scorecard is a strategic planning and management system.. to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. originated by Dr. Robert Kaplan (Harvard Business School) and David Norton as a performance measurement framework that added strategic non-financial performance measures to traditional financial metrics to give managers and executives a more 'balanced' view of organizational performance...the new balanced scorecard transforms an organization s strategic plan from an attractive but passive document into the "marching orders" for the organization on a daily basis.

Dashboards and Scorecards Complimentary Perspectives Past Future Business results Operational and strategic Root cause analysis Guided navigation Alerting Benchmarking Metrics Graphics Reporting

5 Dashboards and Scorecards Complimentary Perspectives Past Future Business results Operational and strategic Root cause analysis Guided navigation Alerting Benchmarking Metrics Graphics Reporting Metadata Strategy deployment People & team Accountability maps Management processes Initiative tracking Cause & effect Collaboration Dashboards Why did I miss my goal? Scorecards How do goals support our strategy?

Metadata Strategy deployment People & team Accountability maps Management processes Initiative

6 What is Scorecarding? Scorecarding is a methodology that enables you to communicate strategic goals to your organization and monitor their progress A Scorecard should answer questions like : Where is the organization going? How will we get there? What is critical to my success? How am I doing against my goals? but most importantly! The Scorecard is your communication vehicle

organization and monitor their progress A Scorecard should answer questions like : Where is

7 Strategic measuring of performance Four Management Functions : Planning, Organizing, Leading, Controlling If you can t measure, you can t manage If you can t measure, you can t improve What gets measured, gets done Permanent Measurement is core of the Balanced Scorecard 7

you can t manage If you can t measure, you can t improve What gets

8 Why do I need a scorecard?

9 Reasons for the Need of a Balanced Scorecard 1. Focus on traditional financial accounting measures such as ROA, ROE, EPS gives misleading signals to executives with regards to quality and innovation. It is important to look at the means used to achieve outcomes such as ROA, not just focus on the outcomes themselves. (Source: Kaplan & Norton, 1996) MBAO 6030 Human Resource Management

signals to executives with regards to quality and innovation.

10 Reas 2. Ex suc fina (Source: Kapla

11 Reasons for the Need of a Balanced Scorecard 3. Some non-financial measures are drivers of financial outcome measures which give managers more control to take corrective actions quickly. (Source: Kaplan & Norton, 1996) MBAO 6030 Human Resource Management

measures which give managers more control to take corrective

12 Reasons for the Need of a Balanced Scorecard 4. Too many measures, such as hundreds of possible cost accounting index measures, can confuse and distract an executive from focusing on important strategic priorities. The balanced scorecard disciplines an executive to focus on several important measures that drive the strategy. (Source: Kaplan & Norton, 1996) MBAO 6030 Human Resource Management

distract an executive from focusing on important strategic priorities.

13 Balanced Scorecard Perspectives Financial: What are our shareholders expectations for financial performance? Customer: To each our financial objective, how create value for our customers? Internal Process: What processes must we excel at to satisfy our customers and shareholders? Learning & Growth: How do we align out intangible assets people, systems, and culture to improve the critical processes? (Source: Kaplan & Norton, 1996) MBAO 6030 Human Resource Management

Internal Process: What processes must we excel at to satisfy our customers and shareholders?

14 Oracle Scorecard & Strategy Management

15 Complete. Oracle Business Intelligence 11g Data Integration Scorecards Interactive Dashboards Reporting & Publishing Ad-hoc Analysis Office Integration Search Detect & Alert Collaborate Mobile Embedded Common Business Intelligence Foundation OLTP & ODS Systems Data Warehouse Data Mart Exadata OLAP Sources Packaged Applications (Oracle, SAP, Others) Unstructured & Semi-Structured Excel XML/Office Business Process

Publishing Ad-hoc Analysis Office Integration Search Detect & Alert Collaborate Mobile Embedded Common

16 OSSM Offers An Environment to Monitor KPIs and Strategy Define KPIs to measure progress and performance over time Graphically communicate strategy & strategic dynamics using Strategy Maps Strategy Trees Cause and Effect Diagrams Custom views Navigate these business relationships seamlessly to expose the root cause of anomalies

dynamics using Strategy Maps Strategy Trees Cause and Effect Diagrams Custom

17 OSSM Offers An Interactive, Collaborative Environment Dashboard integration Embed scorecard visualizations into dashboards to foster broad interactive analyses KPI Agents To monitor performance even when you can t KPI & Scorecard Actions Align day-to-day decisions with your corporate strategy Annotations & Overrides Collaborate and document exceptions to prevent future recurrences

performance even when you can t KPI & Scorecard Actions Align day-to-day decisions with your

18 OSSM Offers KPI Management Track Performance Define Responsibility Collaborate Assign Actions

19 KPI Performance

20 KPI Performance Traffic Lighting

21 KPI Ownership

22 KPI Collaboration Threaded Discussions

23 KPI Collaboration Related Documents

24 Action Link Types

25 Strategy Map

26 Strategy Tree

27 Cause and Effect

28 Summary A scorecard helps to define and communicate the vision and strategy of an organization A scorecard includes financial and non financial aspects A scorecard is the extension of Business Intelligence A dashboard is no scorecard but has to be integrated with a scorecard A scorecard needs to be based on the view of the whole organization

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