Performance Management and Agility James Taylor,

Performance
Management and
Agility
James Taylor,
CEO
About me
Independent consultant working
with clients to help automate and
improve decisions
Previously a VP at Fair Isaac where
I developed the concept of
Decision Management
20 years experience in all aspects
of software including time in
PeopleSoft R&D and at Ernst & Young
Blogger, speaker, writer
james@decisionmanagementsolutions.com
The one slide you need
Performance Management
measures and monitors
supports people who make decisions
But systems make decisions too
Decision Management
makes system decisions explicit
The combination builds cockpits
not dashboards
AGENDA
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2
3
Performance
Management or
Performance
Monitoring
The pilot
analogy
From dashboards
to cockpits with
Decision
Management
Performance
Management
or
Performance
Monitoring?
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The power of performance management
Greater agility
Understand drivers
Better decisions
Manage risk
Control performance
Manage opportunities
Control
Understanding
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The barriers to performance
Greater agility
Understand drivers
Better decisions
Manage risk
Control performance
Manage opportunities
Control
 People
 Computers
Understanding
 Macro
 Micro
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Reality check
People don’t make
many of the decisions
in your business
Systems do
Risk and opportunity
do not come only in
strategic lumps
But operationally, one
transaction, or one
customer at a time
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The pilot
analogy
The business executive as fighter pilot
But cockpits have controls not just dials
And planes have auto pilots
And pilots learn on simulators
Decision Management
Automates decisions
So your systems have an auto pilot
Exposes how decisions are made
So you have knobs and dials
Allows for simulation
So you can experiment and learn
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From dashboards to
cockpits
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Decision Management is
A business discipline that builds on
existing enterprise applications to
put data to work
manage uncertainty
increase transparency
give the business control
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5 principles of decision management
Little decisions add up
so focus on operational decision making
The purpose of information is to decide
so put your data and analytics to work
You cannot afford to lock up your logic
so externalize it as business rules
No answer, no matter how good, is static
so experiment, challenge, simulate, learn
Decision Making is a process
so manage it
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Decisions drive actions
A choice, a selection
Made after consideration
Results in action not just
knowledge
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The business value of decisions
Type
Strategy
Tactics
Operations
Low
Economic impact
High
“Making information more readily
available is important, but making
better decisions based on
information is what pays the bills.”
James Taylor & Neil Raden
Smart (Enough) Systems
20
Business rules for agility, transparency
If customer is GoldCustomer
and Home_Equity_Loan_Value is more than $100,000
then college_loan_discount = 0.5%
If member has greater than 3 prescriptions
and prescription’s renewal_date is less than 30 days in the future
then set reminder=“email”
If patient’s age is less than 18
and member’s coverage is “standard”
and member’s number_of_claims does not exceed 4
then set patient’s coverage to “standard”
Analytics add business insight
Business Intelligence
Descriptive Analytics
X
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X
X
X
X
X
X
How do I use data to learn
about my customers? What
has been happening in my
business?
Knowledge - Description
X
Optimization/Simulation
X
X
X X
X X
X
Predictive Analytics
X
X
X
X
X
X
X
X
XX X
X X XX XX X
X
X
XXX
X X
X X XXX
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X X
X XX
X X XX X X
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X X
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X X
X
X
Who are my best/worst
How are those customers
customers? How do I turn likely to behave in the future?
my data into rules for better How do they react to the
decisions?
myriad ways I can “touch”
them?
How do I leverage that
knowledge to extract
maximum value from my
marketing investments?
Action - Prescription
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Reduce time-to-action
Business
event
Decision latency
Action
taken
Delivering Decision Management
3 stages to better operational decisions
Identify the
decisions (usually
about customers)
that are most
important to your
operational success
Design and build
independent
decision processes
to replace decision
points embedded in
operational systems
Create a “closed
loop” between
operations and
analytics to
measure results and
drive improvement
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The Decision Management technology stack
Business Process Management
Web Services
Visualization
BI
In-database
Analytics
Database
Data
Warehouse
Decision Service
Descriptive
Analytics
Predictive
Analytics
Optimization
Business Rules
Enterprise Platform
Adaptive
Control
Performance
Management
KPIs
Action plan
Identify your
decisions
Adopt decisioning
technology
Think cockpit not
dashboard
Shameless commerce
Decision Management Solutions can help you
Focus on the right decisions
Implement a blueprint
Define a strategy
For assistance, to find out more or if you have
questions
decisionmanagementsolutions.com/learnmore
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Thank you!
James Taylor, CEO
james@decisionmanagementsolutions.com
www.decisionmangementsolutions.com/learnmore