: The Key to Business Intelligence Success Howard Dresner Chief Research Officer Dresner Advisory Services www.howarddresner.com
Book Goals/Methodology Identify several extraordinary organizations that have been strategically successful with Business Intelligence Full 360 degree review Focus upon the middle Onsite visits including all levels of management No holds barred approach
Project Goals Learn/Document: Why some organizations more successful with Business Intelligence and Performance Management Ingredients of (context for) BI/PM success Drivers and process for success with BI/PM Different success scenarios
Our first discovery: Culture is the primary determinant of Business Intelligence Success (or Failure)
Realized
Chaos Reigns!
Struggling with The Status Quo Parts of the organization are out of sync with the strategy A competitive (combative) atmosphere exists between functions Functions resist sharing information with others Internal conflicts seem impossible to resolve Business Intelligence and Performance Management programs have stalled (or worse)
The Reason is Culture: Individual & Group Beliefs/Behavior Tribalism: Small groups of like-minded people with a city-state view of the world Natural fit for small organizations Growth Outpaces Culture: Organization becomes a suboptimal network of isolated functions Organizational frailty Path of least resistance: Fixing problems without breaking what works Technology as one approach
Performance Culture Maturity Model Developed a pragmatic model to assist in understanding dynamics for success/failure with Business Intelligence and Performance Management Three categories; six dimensions Four levels of achievement
The Model
TM Dimensional Categories/Impact Strategic: Impacted by C-Level executives Operational: Impacted by individuals in operational roles Technical: Most often impacted by IT Department, but not exclusively
Six Dimensions of a TM Strategic Operational Technical Alignment with Mission Transparency & Accountability Action on Insights Conflict Resolution Common Trust in Data Availability and Information
Four Levels of Achievement Realized Emerging Departmental Optimization Chaos Reigns The Elite Virtuous Cycle Unfolds Most Common Crisis!
The Performance Culture Maturity Model Alignment with Mission Transparency and Accountability Action on Insights Conflict Resolution Common Trust in Data Availability and Information Realized Actionable and embraced mission supported, informed, and reinforced by General accountability accepted as cultural tenets Closed loop processes ensure timely, concerted action 4 Established and effective mechanisms for resolving conflicts Data as truth: Common application of data, filters, rules, /data matches rhythm of business Emerging Actionable mission supported by topdown Limited accountability; multiple functions collaborate Ad hoc (informal) action on insights across functions 3 When identified, conflicts resolved on an impromptu basis Common data: Provincial views used to support specific positions Enterprise availability, uneven currency of information Departmental Optimization Alignment with discrete functional goals, not enterprise mission Fragmented accountability within discrete functions Uncoordinated/ parochial action (sometimes at the expense of others) 2 Appearance of cooperation, opportunistic reconciliation Conflicting, functional views of data cause confusion, disagreement Availability and currency directed by departmental sources Chaos Reigns Mission not actionable, not communicated, and/or not understood Arbitrary accountability, general opacity Insights rarely leveraged 1 Conflicting, redundant, and competing efforts are the norm Data and information generally unreliable and distrusted Multiple, inconsistent data sources, conflicting semantics
The Performance Culture Maturity Model Alignment with Mission Transparency and Accountability Action on Insights Conflict Resolution Common Trust in Data Availability and Information Realized Actionable and embraced mission supported, informed, and reinforced by General accountability accepted as cultural tenets Closed loop processes ensure timely, concerted action Established and effective mechanisms for resolving conflicts Data as truth: Common application of data, filters, rules, /data matches rhythm of business Emerging Actionable mission supported by topdown Limited accountability; multiple functions collaborate Ad hoc (informal) action on insights across functions When identified, conflicts resolved on an impromptu basis Common data: Provincial views used to support specific positions Enterprise availability, uneven currency of information Departmental Optimization Alignment with discrete functional goals, not enterprise mission Fragmented accountability within discrete functions Uncoordinated/ parochial action (sometimes at the expense of others) Appearance of cooperation, opportunistic reconciliation Conflicting, functional views of data cause confusion, disagreement Availability and currency directed by departmental sources Chaos Reigns Mission not actionable, not communicated, and/or not understood Arbitrary accountability, general opacity Insights rarely leveraged Conflicting, redundant, and competing efforts are the norm Data and information generally unreliable and distrusted Multiple, inconsistent data sources, conflicting semantics
The Performance Culture Maturity Model Alignment with Mission Transparency and Accountability Action on Insights Conflict Resolution Common Trust in Data Availability and Information Realized Actionable and embraced mission supported, informed, and reinforced by General accountability accepted as cultural tenets Closed loop processes ensure timely, concerted action Established and effective mechanisms for resolving conflicts Data as truth: Common application of data, filters, rules, /data matches rhythm of business Emerging Actionable mission supported by topdown Limited accountability; multiple functions collaborate Ad hoc (informal) action on insights across functions When identified, conflicts resolved on an impromptu basis Common data: Provincial views used to support specific positions Enterprise availability, uneven currency of information Departmental Optimization Alignment with discrete functional goals, not enterprise mission Fragmented accountability within discrete functions Uncoordinated/ parochial action (sometimes at the expense of others) Appearance of cooperation, opportunistic reconciliation Conflicting, functional views of data cause confusion, disagreement Availability and currency directed by departmental sources Chaos Reigns Mission not actionable, not communicated, and/or not understood Arbitrary accountability, general opacity Insights rarely leveraged Conflicting, redundant, and competing efforts are the norm Data and information generally unreliable and distrusted Multiple, inconsistent data sources, conflicting semantics
The Performance Culture Maturity Model Alignment with Mission Transparency and Accountability Action on Insights Conflict Resolution Common Trust in Data Availability and Information Realized Actionable and embraced mission supported, informed, and reinforced by General accountability accepted as cultural tenets Closed loop processes ensure timely, concerted action Established and effective mechanisms for resolving conflicts Data as truth: Common application of data, filters, rules, /data matches rhythm of business Emerging Actionable mission supported by topdown Limited accountability; multiple functions collaborate Ad hoc (informal) action on insights across functions When identified, conflicts resolved on an impromptu basis Common data: Provincial views used to support specific positions Enterprise availability, uneven currency of information Departmental Optimization Alignment with discrete functional goals, not enterprise mission Fragmented accountability within discrete functions Uncoordinated/ parochial action (sometimes at the expense of others) Appearance of cooperation, opportunistic reconciliation Conflicting, functional views of data cause confusion, disagreement Availability and currency directed by departmental sources Chaos Reigns Mission not actionable, not communicated, and/or not understood Arbitrary accountability, general opacity Insights rarely leveraged Conflicting, redundant, and competing efforts are the norm Data and information generally unreliable and distrusted Multiple, inconsistent data sources, conflicting semantics
The Performance Culture Maturity Model Alignment with Mission Transparency and Accountability Action on Insights Conflict Resolution Common Trust in Data Availability and Information Realized Actionable and embraced mission supported, informed, and reinforced by General accountability accepted as cultural tenets Closed loop processes ensure timely, concerted action Established and effective mechanisms for resolving conflicts Data as truth: Common application of data, filters, rules, /data matches rhythm of business Emerging Actionable mission supported by topdown Limited accountability; multiple functions collaborate Ad hoc (informal) action on insights across functions When identified, conflicts resolved on an impromptu basis Common data: Provincial views used to support specific positions Enterprise availability, uneven currency of information Departmental Optimization Alignment with discrete functional goals, not enterprise mission Fragmented accountability within discrete functions Uncoordinated/ parochial action (sometimes at the expense of others) Appearance of cooperation, opportunistic reconciliation Conflicting, functional views of data cause confusion, disagreement Availability and currency directed by departmental sources Chaos Reigns Mission not actionable, not communicated, and/or not understood Arbitrary accountability, general opacity Insights rarely leveraged Conflicting, redundant, and competing efforts are the norm Data and information generally unreliable and distrusted Multiple, inconsistent data sources, conflicting semantics
The Performance Culture Maturity Model Alignment with Mission Transparency and Accountability Action on Insights Conflict Resolution Common Trust in Data Availability and Information Realized Actionable and embraced mission supported, informed, and reinforced by General accountability accepted as cultural tenets Closed loop processes ensure timely, concerted action Established and effective mechanisms for resolving conflicts Data as truth: Common application of data, filters, rules, /data matches rhythm of business Emerging Actionable mission supported by topdown Limited accountability; multiple functions collaborate Ad hoc (informal) action on insights across functions When identified, conflicts resolved on an impromptu basis Common data: Provincial views used to support specific positions Enterprise availability, uneven currency of information Departmental Optimization Alignment with discrete functional goals, not enterprise mission Fragmented accountability within discrete functions Uncoordinated/ parochial action (sometimes at the expense of others) Appearance of cooperation, opportunistic reconciliation Conflicting, functional views of data cause confusion, disagreement Availability and currency directed by departmental sources Chaos Reigns Mission not actionable, not communicated, and/or not understood Arbitrary accountability, general opacity Insights rarely leveraged Conflicting, redundant, and competing efforts are the norm Data and information generally unreliable and distrusted Multiple, inconsistent data sources, conflicting semantics
The Performance Culture Maturity Model Alignment with Mission Transparency and Accountability Action on Insights Conflict Resolution Common Trust in Data Availability and Information Realized Actionable and embraced mission supported, informed, and reinforced by General accountability accepted as cultural tenets Closed loop processes ensure timely, concerted action Established and effective mechanisms for resolving conflicts Data as truth: Common application of data, filters, rules, /data matches rhythm of business Emerging Actionable mission supported by topdown Limited accountability; multiple functions collaborate Ad hoc (informal) action on insights across functions When identified, conflicts resolved on an impromptu basis Common data: Provincial views used to support specific positions Enterprise availability, uneven currency of information Departmental Optimization Alignment with discrete functional goals, not enterprise mission Fragmented accountability within discrete functions Uncoordinated/ parochial action (sometimes at the expense of others) Appearance of cooperation, opportunistic reconciliation Conflicting, functional views of data cause confusion, disagreement Availability and currency directed by departmental sources Chaos Reigns Mission not actionable, not communicated, and/or not understood Arbitrary accountability, general opacity Insights rarely leveraged Conflicting, redundant, and competing efforts are the norm Data and information generally unreliable and distrusted Multiple, inconsistent data sources, conflicting semantics
Drivers of a directed Culture
Copyright 2010 Dresner Advisory Services, LLC
Four Essential Forces Business Advocacy Business functions break down cross-functional barriers; begin behaving as a single organism with common purpose; aligned with mission Data Literacy Understanding and fluency for using data, information and related insights in the decision-making process Critical enabler, which may be enhanced by an IT-driven Business Intelligence initiative. Visionary Leadership C-Level executives embrace performance-directed culture as a pillar of strategy Organizational Activism Knowledgeable, focused, committed, passionate and persistent individuals. Can appear anywhere in the organization; appointed by management or self-appointed
It s All About Change: Drive, Influence and Enablement
It s All About Change: Drive, Influence and Enablement Common Trust in Data Data Literacy Availability and Currency of Information Enablement
It s All About Change: Drive, Influence and Enablement Action on Insight Business Advocacy Influence Conflict Resolution Common Trust in Data Data Literacy Availability and Currency of Information Enablement
It s All About Change: Drive, Influence and Enablement Visionary Leadership Transparency & Accountability Drive Alignment with Mission Action on Insight Business Advocacy Influence Conflict Resolution Common Trust in Data Data Literacy Availability and Currency of Information Enablement
It s All About Change: Drive, Influence and Enablement Visionary Leadership Activism Transparency & Accountability Drive Alignment with Mission Activism Action on Insight Business Advocacy Conflict Resolution Influence Activism Common Trust in Data Data Literacy Availability and Currency of Information Enablement
Other Factors Transitions Setbacks Wake up Calls
The Cases
Case Studies Background Four organizations: healthcare, hospitality, manufacturing and public broadcasting Size ranging from $64M USD to $5B USD Process driven by either Business Operations, CEO, Finance or IT Department PCMM index/scores ranging from 2.8 3.9
Mueller Visionary CEO (25 years in role) served as its organizational activist Consistently moved organization forward, enduring setbacks; persevering and ultimately prevailing Built strategic management team as part of performance-directed culture vision with hands on involvement Embraced Balanced Scorecard with solid results Overall PCMM Index of 3.70
New CEO in 1984 Renewed focus on end users. Change in direction away from lowest cost to total value provider of steel building products Expansion to multiple branches 1984-1993 Transition occurs Mueller Timeline Substantial growth and expansion cause CEO and CFO to purchase and implement a comprehensive ERP system proving expensive and difficult to put into operation Lost year ensues 2000 Business Advocacy Emerges Data Literacy Commences Transition occurs ERP system stable, usable data collected. ERP system enforces roles & responsibilities, mission reinforced. Target branch system implemented 2004 Performance -directed culture realized Business Advocacy Established Visionary Leadership Emerges Organizational Activist Emerges 1993 First computer system installed. Business process reengineering program implemented. Seeds of more modern management system begin to unfold. Major Setback occurs 2002 CFO retires; new organization structure defined with IT, HR, Strategic planning. Additional management resources added to team. Data Literacy Established Strategy map; Balance Scorecard developed 2006-2009 Expansion of reporting systems to complement Target branch System. Balanced Scorecard system expanded to include Manufacturing Major successful acquisition Induction into Balanced Scorecard Hall of Fame
Mueller and the Performance Culture Maturity Model Alignment with Mission Transparency and Accountability Action on Insights Conflict Resolution Common Trust in Data Availability and Information Realized Actionable and embraced mission supported, informed, and reinforced by General accountability accepted as cultural tenets Closed loop processes ensure timely, concerted action Established and effective mechanisms for resolving conflicts Data as truth: Common application of data, filters, rules, /data matches rhythm of business Emerging Actionable mission supported by topdown Limited accountability; multiple functions collaborate Ad hoc (informal) action on insights across functions When identified, conflicts resolved on an impromptu basis Common data: Provincial views used to support specific positions Enterprise availability, uneven currency of information Departmental Optimization Alignment with discrete functional goals, not enterprise mission Fragmented accountability within discrete functions Uncoordinated/ parochial action (sometimes at the expense of others) Appearance of cooperation, opportunistic reconciliation Conflicting, functional views of data cause confusion, disagreement Availability and currency directed by departmental sources Chaos Reigns Mission not actionable, not communicated, and/or not understood Arbitrary accountability, general opacity Insights rarely leveraged Conflicting, redundant, and competing efforts are the norm Data and information generally unreliable and distrusted Multiple, inconsistent data sources, conflicting semantics
Mueller and the Performance Culture Maturity Model Alignment with Mission Transparency and Accountability Action on Insights Conflict Resolution Common Trust in Data Availability and Information Realized Actionable and embraced mission supported, informed, and reinforced by General accountability accepted as cultural tenets Closed loop processes ensure timely, concerted action Established and effective mechanisms for resolving conflicts Data as truth: Common application of data, filters, rules, /data matches rhythm of business Emerging Actionable mission supported by topdown Limited accountability; multiple functions collaborate Ad hoc (informal) action on insights across functions When identified, conflicts resolved on an impromptu basis Common data: Provincial views used to support specific positions Enterprise availability, uneven currency of information Departmental Optimization Alignment 2000 with discrete functional goals, not enterprise mission 2000 Fragmented accountability within discrete functions Uncoordinated/ 2000 parochial action (sometimes at the expense of others) Appearance of cooperation, opportunistic reconciliation 2000 Conflicting, functional views of 2000 data cause confusion, disagreement Availability and currency directed by 2000 departmental sources Chaos Reigns Mission not actionable, not communicated, and/or not understood Arbitrary accountability, general opacity Insights rarely leveraged Conflicting, redundant, and competing efforts are the norm Data and information generally unreliable and distrusted Multiple, inconsistent data sources, conflicting semantics
Mueller and the Performance Culture Maturity Model Alignment with Mission Transparency and Accountability Action on Insights Conflict Resolution Common Trust in Data Availability and Information Realized Actionable and embraced mission supported, informed, and reinforced by General accountability accepted as cultural tenets Closed loop processes ensure timely, concerted action Established and effective mechanisms for resolving conflicts Data as truth: Common application of data, filters, rules, /data matches rhythm of business Emerging Actionable mission supported by topdown Limited accountability; multiple functions collaborate Ad hoc (informal) action on insights across functions When identified, conflicts resolved on an impromptu basis Common data: Provincial views used to support specific positions Enterprise availability, uneven currency of information Departmental Optimization 2002 Alignment 2000 with discrete functional goals, not enterprise mission 2000 Fragmented accountability within discrete functions 2002 Uncoordinated/ 2000 2002 parochial action (sometimes at the expense of others) Appearance of cooperation, opportunistic reconciliation 2000 Conflicting, functional views of 2000 data cause confusion, disagreement Availability and currency directed by 2000 departmental sources Chaos Reigns Mission not actionable, not communicated, and/or not understood Arbitrary accountability, general opacity Insights rarely leveraged 2002 2002 2002 Data and Conflicting, Multiple, information redundant, and inconsistent data generally competing efforts sources, conflicting unreliable and are the norm semantics distrusted
Mueller and the Performance Culture Maturity Model Alignment with Mission Transparency and Accountability Action on Insights Conflict Resolution Common Trust in Data Availability and Information Realized Actionable and embraced mission supported, informed, and reinforced by General accountability accepted as cultural tenets Closed loop processes ensure timely, concerted action Established and effective mechanisms for resolving conflicts Data as truth: Common application of data, filters, rules, /data matches rhythm of business Emerging Actionable mission supported by topdown 2004 Limited accountability; multiple functions collaborate Ad hoc (informal) action on insights across functions 2004 When identified, conflicts resolved on an impromptu basis Common data: Provincial views used to support specific positions Enterprise availability, uneven currency of information Departmental Optimization 2002 Alignment 2000 with discrete functional goals, not enterprise mission 2000 Fragmented transparency 2004 and accountability within discrete functions 2002 Uncoordinated/ 2000 2002 parochial action (sometimes at the expense of others) Appearance of cooperation, 2004 opportunistic reconciliation 2000 Conflicting, functional views of 2000 data cause 2004 confusion, disagreement Availability 2004 and currency directed by 2000 departmental sources Chaos Reigns Mission not actionable, not communicated, and/or not understood Arbitrary accountability, general opacity Insights rarely leveraged 2002 2002 2002 Data and Conflicting, Multiple, information redundant, and inconsistent data generally competing efforts sources, conflicting unreliable and are the norm semantics distrusted
Mueller and the Performance Culture Maturity Model Alignment with Mission Transparency and Accountability Action on Insights Conflict Resolution Common Trust in Data Availability and Information Realized Actionable and embraced mission supported, informed, and reinforced by General accountability accepted as cultural tenets Closed loop processes ensure timely, concerted action Established and effective mechanisms for resolving conflicts Data as truth: Common application of data, filters, rules, /data matches rhythm of business Emerging Departmental Optimization Actionable mission 2006 supported by topdown 2004 2002 Alignment 2000 with discrete functional goals, not enterprise mission Limited accountability; multiple functions collaborate 2006 2000 Fragmented transparency 2004 and accountability within discrete functions 2002 2006 Ad hoc (informal) action on insights across functions 2004 Uncoordinated/ 2000 2002 parochial action (sometimes at the expense of others) When identified, conflicts resolved on an impromptu basis 2006 Appearance of cooperation, 2004 opportunistic reconciliation 2000 Common data: Provincial views used to support specific positions Enterprise availability, uneven currency of information 2006 2006 Conflicting, Availability 2004 and functional views of 2000 currency directed data cause 2004 by 2000 departmental confusion, sources disagreement Chaos Reigns Mission not actionable, not communicated, and/or not understood Arbitrary accountability, general opacity Insights rarely leveraged 2002 2002 2002 Data and Conflicting, Multiple, information redundant, and inconsistent data generally competing efforts sources, conflicting unreliable and are the norm semantics distrusted
Mueller and the Performance Culture Maturity Model Alignment with Mission Transparency and Accountability Action on Insights Conflict Resolution Common Trust in Data Availability and Information Realized Emerging Departmental Optimization Actionable and embraced mission supported, informed, and reinforced by 2009 Actionable mission 2006 supported by topdown 2004 2002 Alignment 2000 with discrete functional goals, not enterprise mission General accountability accepted as cultural tenets Limited transparency 2009 and accountability; multiple functions collaborate 2006 2000 Fragmented transparency 2004 and accountability within discrete functions 2002 Closed loop processes ensure timely, concerted action 2009 2006 Ad hoc (informal) action on insights across functions 2004 Uncoordinated/ 2000 2002 parochial action (sometimes at the expense of others) Established and effective mechanisms for resolving conflicts When identified, conflicts resolved on an impromptu basis 2009 2006 Appearance of cooperation, 2004 opportunistic reconciliation 2000 Data as truth: Common application of data, filters, rules, Common data: Provincial views used to support specific positions /data matches rhythm of business 2009 2009 Enterprise availability, uneven currency of information 2006 2006 Conflicting, Availability 2004 and functional views of 2000 currency directed data cause 2004 by 2000 departmental confusion, sources disagreement Chaos Reigns Mission not actionable, not communicated, and/or not understood Arbitrary accountability, general opacity Insights rarely leveraged 2002 2002 2002 Data and Conflicting, Multiple, information redundant, and inconsistent data generally competing efforts sources, conflicting unreliable and are the norm semantics distrusted
Cleveland Clinic Business Operations (Finance and Medical Operations) forged early alliance and created grassroots movement New visionary CEO created strategic opportunity to support new initiatives Cross-functional group emerged as strategic EBI Group Overall PCMM Index of 3.95
Cleveland Clinic Timeline Data-driven Culture Emerges with Financial Crisis Performance Wheels of Death 1993 Business Advocacy Emerges Organizational Activists Emerge New CEO appointed Medical Ops & Finance efforts gain visibility Appoints new CFO 2004 Business Advocacy Solidifies Patient access dashboard application launched decreases physician appointment wait time from 13 to 8 days 2006 Performancedirected culture realized Wake-up call occurs Data Literacy Commences 2003 Medical Operations and Finance decide to collaborate on performance management efforts IT boycotts Transition occurs Visionary Leadership Emerges 2005 CEO charts new mission Patient First ; Performance management efforts gain attention of CEO; become strategic IT Joins effort Data Literacy Expands 2007 Reorganization into Institutes Initial dashboard evolves into broader management scorecard used to review/manage performance clinic-wide
The Performance Culture Maturity Model Alignment with Mission Transparency and Accountability Cleveland Clinic Action on Insights Conflict Resolution Common Trust in Data Availability and Information Realized Emerging Departmental Optimization Actionable and embraced mission supported, informed, and reinforced by Actionable mission supported by topdown Alignment with discrete functional goals, not enterprise mission 2000 2007/8 2005/6 2003/4 General accountability accepted as cultural tenets 2007/8 Limited accountability; 2005/6 multiple functions collaborate 2003/4 Fragmented accountability within discrete functions Closed loop processes ensure timely, concerted action 2007/8 Ad hoc (informal) action on insights 2005/6 across functions 2003/4 Uncoordinated/ parochial action (sometimes at the expense of others) Established and effective mechanisms for resolving conflicts When identified, conflicts resolved on an impromptu basis 2005/6 2007/8 2003/4 Appearance of cooperation, opportunistic reconciliation 2000 2000 2000 Data as truth: Common application of data, filters, rules, 2007/8 Common data: Provincial views used to support specific positions 2005/6 Conflicting, functional views of data cause confusion, disagreement 2003/4 /data matches rhythm of business Enterprise availability, uneven currency of information 2005/6 2007/8 2003/4 Availability and currency directed by departmental sources 2000 2000 Chaos Reigns Mission not actionable, not communicated, and/or not understood Arbitrary accountability, general opacity Insights rarely leveraged Conflicting, redundant, and competing efforts are the norm Data and information generally unreliable and distrusted Multiple, inconsistent data sources, conflicting semantics
Denihan Hospitality Group Aggressive data literacy program driven by IT Department resulted in strong Common Trust in Data. 9/11 wake up call drove further investment and urgency surrounding BI Management consolidation facilitated development of visionary leadership; performance-directed culture began to emerge Overall PCMM Index of 3.22
Denihan Timeline Management recruits and hires database marketing professional Some early successes 2000 Wake-up call occurs Targeted projects focus Geographic expansion project Most Valued Guests program 2003 Visionary Leadership Emerges P&L responsibility for hotel managers. Growth through acquisition of new properties. 2007 Business Advocacy begins to emerge Organizational Activist Emerges Data Literacy Commences 2001 911 Attacks Occur DHG leverages customer data to restore occupancy levels Data Literacy Expands 2006 Management consolidation & recapitalization New hires, clash of cultures Transition occurs Pulse integrates operational and financial used by all management to run business 2009
The Performance Culture Maturity Model Alignment with Mission Transparency and Accountability DHG Action on Insights Conflict Resolution Common Trust in Data Availability and Information Realized Emerging Departmental Optimization Chaos Reigns Actionable and embraced mission supported, informed, and reinforced by 2009 Actionable mission supported by topdown 2006 Alignment with discrete functional goals, not enterprise mission 2001 Mission not actionable, not communicated, and/or not understood General accountability accepted as cultural tenets Limited accountability; multiple functions collaborate 2009 Fragmented accountability within discrete functions 2001 Arbitrary accountability, general opacity Closed loop processes ensure timely, concerted action Ad hoc (informal) action on insights across functions 2009 Uncoordinated/ parochial action (sometimes at the expense of others) 2002 Insights rarely leveraged Established and effective mechanisms for resolving conflicts When identified, conflicts resolved on an impromptu basis 2009 Appearance of cooperation, 2007 opportunistic reconciliation Conflicting, redundant, and competing efforts are the norm Data as truth: Common application of data, filters, rules, 2007 Common data: Provincial views used to support 2009 specific positions 2002 Conflicting, 2008 functional views of data cause confusion, disagreement 2001 Data and information generally unreliable and distrusted 2000 2000 2000 2000 2000 2000 /data matches rhythm of business 2007 Enterprise availability, 2009 uneven currency of information 2008 Availability and currency directed by departmental sources 2001 Multiple, inconsistent data sources, conflicting semantics
Northern California Public Radio Finance-led initiative to drive improved financial budgeting and accountability Mission-directed organization resisted introduction of new budgeting system underscoring cultural divide With strong signs of growing collaboration across functions, fragmentation remains common Additional management focus will help Overall PCMM Index of 2.87
N. California Public Radio Timeline Strategic plan executed with clear for community reach and clear support for its mission. However, significant budget overruns expose organization financially. 2004-2006 Organizational Activist Emerges Transition occurs A new budgeting system is purchased and implemented by Finance. Implementation is fast tracked Lack of reporting, inadequate training and system bugs hamper adoption 2007 Major Setback occurs Finance charters FSG to support line of business Only slight improvements in various. System does not expand beyond financial. Resistance continues without leadership direction 2009 Transition occurs Business Advocacy Established 2006 Due to significant issues surrounding cost controls, a new CFO is hired to establish a formal budgeting process. Major Setback occurs 2008 Although Finance has some successes, line of business rejects budgeting system and resists entering information. Lack of senior mgmt intervention encourages LOB resistance. 2010 Both CEO and CFO depart organization
The Performance Culture Maturity Model Alignment with Mission Transparency and Accountability KQED Action on Insights Conflict Resolution Common Trust in Data Availability and Information Realized Emerging Departmental Optimization Chaos Reigns Actionable and embraced mission supported, informed, and reinforced by 2009 Actionable mission supported by topdown 2006 Alignment with discrete functional goals, not enterprise mission Mission not actionable, not communicated, and/or not understood General accountability accepted as cultural tenets Limited accountability; multiple functions collaborate Fragmented accountability 2009 within discrete functions Arbitrary accountability, general opacity 2006 Closed loop processes ensure timely, concerted action Ad hoc (informal) action on insights across functions 2009 Uncoordinated/ parochial action (sometimes at the expense of others) 2006 Insights rarely leveraged Established and effective mechanisms for resolving conflicts When identified, conflicts resolved on an impromptu basis 2009 Appearance of cooperation, opportunistic reconciliation 2006 Conflicting, redundant, and competing efforts are the norm Data as truth: Common application of data, filters, rules, Common data: Provincial views used to support specific positions 2009 Conflicting, functional views of data cause confusion, disagreement 2006 Data and 2007 information generally unreliable and distrusted /data matches rhythm of business Enterprise availability, uneven currency of information 2009 Availability and currency directed by departmental sources 2006 Multiple, inconsistent data sources, conflicting semantics
A TM Index Index = 3.95 Index = 3.70 Index = 3.22 Index = 2.87
A Few Data Points
Maturity 100% 0% 90% 20% 33% 33% 33% 80% 50% 70% 67% 60% 50% 60% 40% 50% 50% 67% 33% 30% 20% 33% 10% 17% 17% 20% 17% 0% 0% Chaos Departmental Emerging Realized Recent Finance Workshop - Average PCMM Index = 3.11
3.5 3 2.5 Maturity Weighted Mean Score 3.33 3.33 3.17 3.17 3.11 3.00 2.67 2 1.5 1 0.5 0 Recent Finance Workshop - Average PCMM Index = 3.11
Maturity Source: The Palladium Group and Dresner Advisory Services Study Average PCMM Index = 2.8
Organizations with Directed Culture See Greater Success with BI Alignment with Mission Transparency and Accountability Action on Insights Conflict Resolution Common Trust in Data Availability and Currency of Information Organizations successful with BI - PCMM Index Average = 3.13 Source: The Palladium Group and Dresner Advisory Services Study
Organizations Lacking Directed Culture Struggle with BI Alignment with Mission Transparency and Accountability Action on Insights Conflict Resolution Common Trust in Data Availability and Currency of Information Organizations unsuccessful with BI - PCMM Index Average = 2.56 Source: The Palladium Group and Dresner Advisory Services Study
Some Final Thoughts
Getting Ready to Get Ready: Using The PCMM as a Diagnostic Enhance executive understanding and prepare for next stage of business change; growth Establish a benchmark - and index for recurring/ongoing assessment Identify strengths, weaknesses; areas of focus Develop a roadmap for action and investment Create a foundation for future, strategic change
Obstacles and Enablers Wake up calls and transitions may occur and need to be recognized for the game changers they can represent. Setbacks are not uncommon and (most) should be considered temporary and transitional Visionary leadership, business advocacy, and data literacy must be present for a directed Culture to fully emerge. Organizational activism will likely dictate the order. Technology-led approach ALONE will rarely succeed. Technology is an enabler not a driver.
Technology Noise Big Data Dashboards Visualization Cloud
An Early Inca PCMM Index Average = 2.83
In Conclusion Culture is often the reason that organizations struggle and why BI and EPM efforts fall short Assessing your progress towards a performance-directed culture using the PCMM will give key insights into your current state; strengths and weaknesses Equipped with greater perspective, it will be possible to develop a more practical roadmap in support of a performance-directed culture
: The Key to Business Intelligence Success Howard Dresner Chief Research Officer Dresner Advisory Services www.howarddresner.com