6 Stories to Give You the Finance Buzz at SAPinsider

SAPInsider Financials Logo

It’s going to be a busy time this week for many of my colleagues and the visitors to SAPinsider Financials 2015 in Las Vegas, so I decided to give you my thoughts on some interesting sessions to see, if you’re attending, given that you’re spoilt for choice with such a comprehensive agenda. And I’m bucking the trend with this blog post – because instead of talking about products, I ‘m talking about customers and thought leaders, and in particular the stories that you’ll be able to see and hear at the event this week.

Excited yet? I am! And with good reason, because many valued SAP customers have decided to make the trip to Las Vegas to give an account of their experiences with SAP solutions for Finance…stories of implementation approaches, best practices, and where they have found business benefits.

So for anyone embarking on a software implementation project, or even just considering approaches to solving some of their finance department and process issues, these are key SAPinsider Financials 2015 sessions to attend.

Six in Focus – But Don’t Forget the Rest!

My six focus sessions are chosen not because I know the customer stories particularly well, but rather because they’ll give attendees a good flavor across a range of finance topics. And my apologies to the many other customers not listed here – whose sessions are equally as valuable – but I just couldn’t fit you all into one short blog post.

I would, however, encourage readers attending Financials 2015 to take a look at the many other customer-led sessions at the event this week, as well as those detailed here, just so that you select sessions that will be most relevant to you.

Ready to learn about some of the exciting sessions ahead? Then let’s go:

  1. Keynote address, TODAY, Tue 17 March at 8:30 am – Okay, it’s strictly an SAP-led session, but there’ll be a panel discussion in which thought leaders will be asked to give their view about challenges and opportunities facing CFOs. It’s sure to be an interesting discussion – and let’s face it, no-one wants to miss the keynote!
  2. Sun Products, Wed 18 March at 8:30 am – A session where you should learn some best practice advice on implementing credit, dispute, and collections management.
  3. Velux, Wed 18 March at 10:30 am – I really like the sound of this session, in which you’ll hear how Velux moved from a traditional to “beyond budgeting” approach.
  4. McKesson, Thu 19 March at 8:30 am – For anyone seeking advice on implementing SAP ERP Financials then this is a session for you!
  5. Bentley Systems, Thu 19 March at 1:00 pm – Hear how Bentley Systems automated and shortened the payment processing lifecycle with SAP Bank Communication Management.
  6. Telephone and Data Systems, Thu 19 March at 4:30 pm – This is one for those of you interested in financial consolidations, with particular focus on project planning.

Don’t Be Shy – Get Networking!

All of these customers are attending the event to share their knowledge and experience with you, and I know that if you have questions for them after hearing their sessions that they’ll be delighted to speak with you…so do take advantage of this in the event networking sessions.

And remember to also take a look at the full agenda, so that you can plan your sessions and make the best use of your time. I hope you have an interesting and informative week, and that you return to work buzzing with the excitement of the potential to put in practice what you have learned at the event.

Have a great week!

You Want to Improve Your Financial Close Process – Where Do You Start?

By Elizabeth Milne, Sr Director, EPM Product Marketing, SAP

Last year I wrote the book Accelerated Financial Closing, and co-authored a white paper with Deloitte (5 Signs That Your Financial Close Process May Be Broken). This year, with a little help from my friends, I thought I’d kick off 2015 with a blog series.

The accounting and financial close process is an ever changing mandatory process. Some call it close to disclose, some call it record to report (R2R), some don’t call it anything but just do it. Organizations with a December 31 year end close have either finished or are still working on their annual close now, which is the biggest one of them all. As with any process there were bound to be bumps and hiccups along the way. Now is a perfect time to review how the annual close went (or is going) and try to identify areas that can be improved.

There are many dimensions to the financial close, three of which are people, process, and technology. While analyzing areas for improvement, each of these areas needs to be assessed. Do my people have the right skills for the tasks they are doing? Could they be better utilized doing other tasks? Are my processes documented? Are they effective and efficient? Am I leveraging technology to automate tasks where possible?

And all of these depend on each other. As Bill Gates so eloquently put it, “The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.”

The financial close process itself also has many different steps. We have been working with our customers and analysts over the year trying to compartmentalize some of the different steps to make it a bit more consumable and have developed the following diagram.

As such, my colleagues and I will be writing a series of blogs to walk you through each of the boxes here in more detail with suggested ways of improving each. Our weekly, 12-part series will cover the following topics:

  • Accounting – Simple Finance and ERP Financials
  • Accounting – Nakia Lease Administration
  • Accounting – Revenue Recognition
  • Entity Close – Intercompany Reconciliation
  • Entity Close – Account Reconciliation
  • Entity Close – Entity Close Management
  • Corporate close – Consolidation and Notes Management
  • Reporting and Disclosure – Reporting and Analysis
  • Reporting and Disclosure – Disclosure Management
  • Financial Close Governance
  • Close to Disclose Recap

Hope you enjoy!

Elizabeth Bio & Pic
Article originally posted on SAP Analytics. Reprinted with permission.

Implemented for the business, ready for the future; Lexmark’s journey with SAP solutions for EPM

It’s no secret that we filled the SAP Conference for EPM with as many customer sessions as we possibly could. Why? The answer to that is simple – you (or rather prior attendees) asked for it.

In fact, we had made the decision to include back-to-back customer sessions early in the planning cycle. And it wasn’t just a survey response that inspired us to do this, it was also the availability and willingness of so many SAP customers asking to speak.

So, never one to miss an opportunity to share a customer story, I decided to focus this blog on the first of our recent event speakers, Lexmark.

A customer view of their EPM journey

Immediately following the day-1 keynote and demo, the first customer session of the SAP Conference for EPM was Lexmark, a provider of printing and imaging products, software, solutions and services. Introduced by our event Platinum sponsor Macrospect, Lexmark gave an insightful account of their SAP Business Planning and Consolidation (BPC) journey, starting in 2009 as they moved away from an old manually-intensive spreadsheet-based solution to their current solution, powered by the SAP HANA platform which they use for consolidations, financial forecasting, budgeting and strategic planning.

Lexmark presentation at the SAP Conference for EPM

Lexmark presentation at the SAP Conference for EPM

This is a terrific presentation, highlighting the ups and downs of their implementation experience involving the definition and creation of models reflective of their business, as well as the business benefits that Lexmark now enjoy having worked with this solution for a number of years, and their plans for the future.

Candid thoughts – caught on camera!

Having enjoyed the full presentation from day 1 of the EPM event, this second video link is another chance to hear from JB Jenkins of Lexmark, but this time in a much shorter interview with SAP’s Karuna Mukherjea. Also interviewed here is Jeff Hattendorf of Macrospect, who offers some initial thoughts regarding the day-1 announcement of the SAP Cloud for Planning solution.

As well as interviewing Lexmark, Karuna was kept very busy as she took the time to interview a number of other customers at the EPM event too. Here are two more links, one for Dolby and another for Kohler who talk about experiences with BPC.

I hope that you enjoy these videos. But remember to stay tuned as there’s still more to come…watch out for my next blog sharing customer insights and interviews from the SAP Conference for EPM.

Why is Modeling Foundational to Enterprise Performance Management?

By Gary Cokins, Founder of Analytics-Based Performance Management LLC

The confusion, ambiguity and lack of consensus about what enterprise performance management is will continue for a long time. Fortunately, many are realizing that enterprise performance management (EPM) is much broader than how it’s often narrowly perceived – as just a CFO initiative consisting of bunch of dashboard dials and some better reports.

In my last blog I shared some of my thoughts on what exactly is the broad topic of enterprise performance management. This time I’m going to take the narrow route and focus on an essential capability within enterprise performance management – modeling.

Managing performance requires a deep understanding of causality

I often use an analogy that compares EPM’s various integrated component methods to meshed gears in a machine operated by something akin to global positioning system (GPS) for navigating strategy. I think of this as enterprise optimization. I really like the term “optimization” even though it can be dismissed by some managers as theoretical or impractical to achieve. Enterprise optimization can be described as “the pursuit and realization of an organization’s strategic objectives with the least amount of total resources in an ever-changing environment.” This pursuit maximizes the creation of long-term shareholder wealth through a deep understanding of the needs and preferences of customers. Great – but what does business analytics and modeling have to do with enterprise optimization?

A model is a representation of physical activities and their outcomes. Models are essential for improving decision making. In some models, such as weather forecasts, complex interdependencies between variables result in decreased accuracy. Hence, the model needs to be frequently re-calculated. For example, reliable weather forecasts, at best, project a week or two into the future. However, at its core a model is based on understanding cause-and-effect relationships – and typically multiple and simultaneous ones. The better the relationships are understood, then the more reliable and longer lasting will be the model’s projections.

The understanding of the input-output relationships in a model requires analytics of all flavors, including segmentation, clustering and statistical correlation analysis.

The emergence of business analytics

Modeling is prominent in fields such as skyscraper construction and oil and gas exploration. Biologists model cell behavior. Geneticists model DNA to understand diseases. Baseball executives model batter and pitcher outcomes to determine who to trade or pay higher salaries. When I was a junior at Cornell University in 1970, I wrote a computer baseball game with a classmate, based on a dice baseball game I played when I was a kid. The computer game simulated the 1969 National League season by calibrating the batters and hitters to their records, and the computer’s team rankings and win-loss records nearly matched the actual results. My program was accepted by the National Baseball Hall of Fame as the oldest computer baseball game.

When we can relate modeling in this way to sports or other interests we have we can begin to understand how it helps us interpret complex issues that confront us professionally. We can see it is not a big leap to see how scientific and engineering skills can be applied to the management of organizations.

In organizations, decisions abound – requiring marketing analysts to determine which types of customers to retain, grow, win back or acquire – and which types to not. More deeply, what is the optimal spending amount on deals, discounts and offers necessary to optimize future customer net revenues (profits)? How should an organization’s risk appetite be balanced against its risk exposure? How should the CFO report reliable rolling financial forecasts (since the budget is so quickly obsolete due to unexpected changes)? How should a personnel department identify the next employees who are likely to voluntarily quit or who to hire next? These questions can all be answered by using business analytics.

Strategy maps and companion balanced scorecards have long been popular for aligning the behavior and priorities of managers and teams to measureable strategic objectives for which they are accountable. Very simply, a strategy map is a model of an organization. They track your most vital key performance indicators (KPIs)

Optimization is about resources and outcomes

Some mistakenly think that enterprise resource planning (ERP) applications are the ultimate enterprise optimization solution. They are not. Managerial tasks – such as planning, simulating, defining and analyzing alternatives, and then selecting the optimum outcome – require far more input than transactional data from an ERP system. Getting all of the information needed for optimization is only accomplished by integrating the various methods of the enterprise performance management framework and embedding business analytics, especially predictive analytics, within each method.

Optimization is about determining the best level of resources (i.e., human capital or equipment) to produce the highest yield and desired outcomes. Optimization includes managing that same “best level” of resources – and aligning their behavior and priorities with the strategic objectives of the executive team. Optimization cannot be realized without business analytics. Modeling is foundational to achieving effective enterprise performance management, and business analytics is at the heart of modeling.

Keep an eye out for my next blog in which I talk about decision management.


About the Author: Gary Cokins, CPIM


Gary Cokins (Cornell University BS IE/OR, 1971; Northwestern University Kellogg MBA 1974) is an internationally recognized expert, speaker, and author in enterprise and corporate performance management (EPM/CPM) systems. He is the founder of Analytics-Based Performance Management LLC www.garycokins.com . He began his career in industry with a Fortune 100 company in CFO and operations roles. Then 15 years in consulting with Deloitte, KPMG, and EDS (now part of HP). From 1997 until 2013 Gary was a Principal Consultant with SAS, a business analytics software vendor. His most recent books are Performance Management: Integrating Strategy Execution, Methodologies, Risk, and Analytics and Predictive Business Analytics.

gcokins@garycokins.com; phone +919 720 2718


Linkedin.com contact: http://www.linkedin.com/pub/gary-cokins/0/15a/949.

Hear Gary share some of his thoughts concerning EPM innovations and best practices at the SAP Conference for EPM in Chicago, October 13/14, 2014

Where Do You Begin Implementing Enterprise Performance Management?

By Gary Cokins, Founder of Analytics-Based Performance Management LLC

I’m half-way through my current blog series where last time I looked at the budgeting process, and just two-weeks away from appearing at the SAP Conference for EPM in Chicago, October 13-14, where I plan to expand further on some of the concepts and ideas I’ve been writing about. So far I have considered the constituent parts of EPM, what makes for good and for bad EPM systems, and pointed to some ideas for evolving and improving EPM. But as organizations embrace the full vision of enterprise performance management – not just the narrow financial definition of better budgeting, planning and control – they frequently ask, “Where should we start?” Some may be eager to begin with a balanced scorecard, others by measuring channel and customer profitability. Still others want to take it to the limit by redesigning their core business processes.

In fact, there is no one-size-fits-all answer. So where you start depends on which enterprise performance management methodology you consider provides the fastest significant return and gets the employee buy-in ball rolling quickest.

Enterprise performance management is not new. Organizations have been doing it for years, arguably even before computers arrived on the scene. The traditional version of enterprise performance management involved a weakly communicated strategy that was followed up by measurements of customer service, sales and order-fulfillment functions. There was no attempt to integrate the varied components of enterprise performance management or to develop proactive core processes. Today, top performing organizations realize they must integrate methodologies and their supporting systems, visually display measurements and apply predictive analytics to all their processes. This is the new version of enterprise performance management.

As organizations realize that enterprise performance management is really much more about improving performance rather than just controlling and managing it, they begin asking, “Where do we begin to take what we already do to a much higher level?”

Accept that enterprise performance management is about integration and speed

An organization attains the full vision of enterprise performance management when executive leaders expediently communicate strategy to managers and employees alike and are committed to providing continuous updates to their plans.


This allows everyone to act in sync and without wasted effort. Speed matters in communications. Performance suffers when managers and employees are forced to repeatedly react to unexpected changes. To realize maximum benefits, any of the methodologies – such as strategy mapping, customer relationship management, Six Sigma, lean management and anticipatory capacity resource planning – must be robust, seamlessly integrated and in sync. Because some organizations already have several of these methodologies in place but not necessarily connected, the “where to get started” question depends on identification of the key factors relating to the organization’s current situation.

For example, if a reasonably sound, activity-based accounting system already provides information on which specific combinations of products, services, channels and customers earn or lose profit, executives may want to focus on successfully incorporating this information into a strategy map and associated balanced scorecard implementation. Failure to execute a well-formulated strategy is a major frustration that frequently prompts executives to pursue a broad enterprise performance management initiative. On the other hand, the executive team might be receiving cost information that is either incomplete, for example, because the team is receiving only product- or service-line profit information and not the full-channel and customer-segment information or inaccurate, perhaps because of distorting indirect cost allocations. In this case the executives may want to upgrade their management accounting system by applying activity-based principles.

Again, determining where to start on integrating an enterprise performance management framework depends on the organization’s weaker links.

Any approach to enterprise performance management begins with the attitudes of senior leaders. If they launch into enterprise performance management with a Darth Vader attitude – seeking underperformers to expose and cut off their air supply – the process will be painful with potentially negative repercussions. Employees will experience fear. Enterprise performance management should focus on remedy not punitive measures; A trust-based approach involves a great deal of accountability from individuals for achieving desired results. Wise leaders see their role as setting direction and continuous redirection, clearly communicating their ideas, and empowering their managers and employee teams to determine the best methods for moving the organization forward in the direction communicated by its leaders. These fine leaders are coaches not dictators.

Assuming an enlightened leadership team, then what?

Organizations will not make speedy progress by focusing exclusively on one methodology, such as better forecasting, and taking a year or longer to implement these improvements. If you take this approach then in all likelihood your competitors will beat you, or your customers’ expectations will outpace you. Instead, you need to enact multiple methodology improvements simultaneously. An increasingly accepted best practice for such improvements is to apply the “plan, do, check, act” (PDCA) cycle. Start with rapid prototyping, followed by iterative remodeling for all of the relevant methodologies. Naysayers will argue that the organization can handle only a few projects at a time, but they underestimate the capabilities of people to work together when they are being guided by leaders, not just managers.

With these rapid prototyping techniques, an organization makes mistakes early and often, not later when more has been invested and it is more costly to make corrective changes. This do-it-quick approach accelerates learning and brings fast results that in turn gain buy-in from employees who by nature are naturally resistant to change. Iterative modeling allows for scaling each of the prototyped methodologies into repeatable and reliable production systems. Enterprise performance management is like gear-teethed cogs in a machine: The more closely linked and better meshed the methodologies are during implementation, the smoother and faster the organization moves forward Software applications are very relevant, but their purpose is to support all of the methodologies. They are enablers of processes, not complete solutions on their own.

Embrace uncertainty with predictive analytics

Gradually, managers and employee teams will begin to see and understand the big picture, including how all of the methodologies fit together. Those in commercial organizations will realize that creating higher profits and increasing shareholder wealth is not a goal but a result. For these organizations, the true independent variable is finely managing the innovation-based R&D and spending on marketing to focus on the desired customers to retain, grow, acquire and win back – and cut lose the unprofitable ones. Leaders in public-sector organizations may view funding as a scarce commodity; therefore, they need to maximize outcomes by increasing output or improving service delivery without the use of additional resources.

Executives are constantly on a quest for the next breakthrough in managerial innovation. My suggestion is to start by integrating and enhancing existing methodologies that have proved their worth. It’s likely that the organization has attempted applying already to some level of competence. However, integration deficiencies may exist in some areas, leading to time lags that cause excessive and costly reactions.

Successful organizations can gain much insight by performing much deeper analysis, such as better and more granular customer segmentation. This more detailed business intelligence can be utilized within the methodologies in use and supporting systems for better decision making. The next major task is to get in front of the wave, using predictive analytics to mitigate risk by making changes before the effects can occur. Predictive analytics may well be the next major competitive differentiator, separating successful from mediocre or failing organizations. The uncertainty of future demands or events should not be viewed as a curse, but rather embraced as something organizations can tame with the powerful and proven probabilistic tools that already exist.

So what to do? Start now – everywhere. Most organizations over-plan and under-execute. For organizations that have experienced recent upheaval, now is the time to regain some order. With a nurturing attitude from executive leaders who act more like coaches than bosses then organizations can move quickly towards completing the full vision of enterprise performance management. But it requires a willingness for executives to step forward, initiative and empower their organizations to embrace enterprise performance management as the new culture for how the business operates.

Next time I shall discuss why modeling is an essential capability within an EPM system.


About the Author: Gary Cokins, CPIM


Gary Cokins (Cornell University BS IE/OR, 1971; Northwestern University Kellogg MBA 1974) is an internationally recognized expert, speaker, and author in enterprise and corporate performance management (EPM/CPM) systems. He is the founder of Analytics-Based Performance Management LLC www.garycokins.com . He began his career in industry with a Fortune 100 company in CFO and operations roles. Then 15 years in consulting with Deloitte, KPMG, and EDS (now part of HP). From 1997 until 2013 Gary was a Principal Consultant with SAS, a business analytics software vendor. His most recent books are Performance Management: Integrating Strategy Execution, Methodologies, Risk, and Analytics and Predictive Business Analytics.

gcokins@garycokins.com; phone +919 720 2718


Linkedin.com contact: http://www.linkedin.com/pub/gary-cokins/0/15a/949.

Hear Gary share some of his thoughts concerning EPM innovations and best practices at the SAP Conference for EPM in Chicago, October 13/14, 2014

Enterprise Performance Management: Integrating a Suite of Proven Methodologies

By Gary Cokins, Founder of Analytics-Based Performance Management LLC 

In my first blog of this series I talked about a Tipping Point in EPM. I’ll be expanding on this theme a little more when I present at the SAP Conference for EPM in Chicago on 13/14 October. But before that I’d like to invite you to join me as I continue this blog series with an examination of EPM and its constituent business processes from a number of perspectives.

Enterprise performance management (EPM) can be described as the integration of various methods that translate plans into results – execution. It is a framework for managing your strategy. Strategy is of paramount importance and is senior management’s number one responsibility. For commercial companies, strategy usually answers three key questions:

  1. What products or service lines should we offer or not offer?
  2. What markets and types of customers should we serve or not serve?
  3. How are we going to win?

EPM provides insights to improve all performance in the above three choices. But, its main power is in achieving number three – winning – through adjusting and executing strategies. EPM does this by aiding managers to sense earlier and respond more quickly to uncertainty. It does this by pushing accountability for results to the lowest possible organization levels.

In contrast to the popular 1990s business process reengineering (BPR) approaches, where after radical redesign every single step and task were explicitly mapped, EPM instead relies on the power of focusing on the pertinent and relevant information. After determining the organization’s strategic objectives, measures (i.e., key performance indicators, KPIs) and their supporting projects, the rest will follow naturally. That is, employee work activities align to pursue strategy, often intensely customer-focused, as job number one.


So what then is it that EPM is comprised of- if it offers companies so much potential? EPM is an umbrella-like concept covering tightly integrated and universally applicable methods: strategic planning, scorecard measurements, budgeting, rolling financial forecasts, costing (including activity-based costing [ABC]), forecasting resource requirements, and also financial consolidations. EPM also includes the important adjacent neighboring methods that are independent of any industry: business intelligence tools, customer relationship management [CRM], specifically sales performance management; supplier performance management; shareholder valuation (e.g., cost of capital, economic profit and value); human capital management (HCM); and six sigma and lean operations.

Key elements to EPM

There are three primary elements for EPM:

  1. Focus. The task of managing strategy begins with making choices and focus. There is never enough money or resources to chase every opportunity or market on the planet. We are continually limited by scarce and precious resources and time, so focus is key – and strategy yields focus.
  2. Communicatation and Feedback. The task of managing strategy continues with communication. This context is reserved for senior management articulating its strategy to employees, typically with a strategy map. Along with articulating strategy comes the all-important feedback to managers and employee teams. It allows everyone to answer the question, “How am I doing on what is important?” A balanced scorecard is the key tool for reinforcing communication of the strategy. Think of a balance scorecard as the drive gears of the strategy map. Think of the strategy map’s strategic objectives as a set of chain links, where each chain link uses if-then relationships. The leading and lagging measures steer work efforts to align with the organization’s mission and vision. By integrating, distributing, and analyzing enterprise-wide information, an organization gains the power to act on this information – ahead of its competitors.
  3. Collaboration. The task of managing strategy ends with collaboration. (It is essentially a never ending iterative loop.) By aligning the strategic objectives among the various departments and functions, the organization taps into the collective knowledge of its employees and unleashes each person’s potential. The EPM framework truly makes executing strategy everyone’s job. Collaboration in this sense is all about collective dialogue. Management is not equivalent to control – management is coaching people for continuous improvements.

A simple way to think about EPM is that it embraces both planning and executing. However, EPM is greatly aided when managers and employee teams have good visibility into the drivers of performance in particular fact-based intelligence on product, channel, and customer profitability reporting. With fact-based intelligence, better strategic objectives are more likely to be formulated, and employee teams can analyze what is happening and what might happen (e.g., what-if planning scenarios) in order to make better decisions.

People and culture matter

Business schools tend to divide their curriculums between hard quantitative oriented courses, such as operations management and finance, and soft behavioral courses, such as change management, ethics, and leadership. The former relies on a run-by-the-numbers management approach. The latter recognizes that people matter most.

The quantitative approach applies Newtonian mechanical thinking as if the world and everything in it is a big machine. This approach speaks in terms of production, power, efficiency, and control, where employees are hired to be used and periodically replaced, somewhat as if they were robots. In contrast, the behavioral approach views an organization as a living organism that is ever changing and responding to its environment. This Darwinian way of thinking speaks in terms of evolution, continuous learning, natural responding, and adapting to changing conditions.

The trick to general management is integrating and balancing the quantitative and behavioral approaches. In today’s knowledge-worker dominated world where customization and personalization are increasingly the ‘norm’, old-school, command-and-control style executives who prefer to leverage their workers’ muscles but not their brains run into trouble.

Increasingly, the strategy must reflect customer preferences and needs, while also satisfying shareholders (i.e., owners) entitlement to wealth creation. Translated, this means top-down guidance with bottom- up execution. From the shop floor to the top floor – and back again, EPM bi-directionally converts plans into results.

EPM provides robust and practical insights. EPM informs an organization about its current position, which direction it is going, which direction it should be headed, and what it will require to get there.

Performance Management is Based on Business Modeling

With new advances in software modeling tools, data warehousing and mining, technology is no longer the obstacle – but our thinking is! Modeling is best done using a combination of principles and tools. Business modeling is central to the performance management suite. Senior managers can verify the feasibility of their proposed initiatives using computerized business models to predict results rather than through experience gained in the school of hard knocks.

These tools provide every manager with the needed ability to:

  • Identify business problems and
  • Uncover opportunities to improve, and then to size their impact if successfully improved.

Executives can rely on these same systems to foster communications among managers and employee teams. Employees can actively manage with an increased confidence that what they choose to work on aligns with the organization’s strategy and goals.

In my next blog I’ll invite you to walk with me through a discussion about performance management with a CFO, and set the challenge for you to ask the hard questions in your own organization.


About the Author: Gary Cokins, CPIM 


Gary Cokins (Cornell University BS IE/OR, 1971; Northwestern University Kellogg MBA 1974) is an internationally recognized expert, speaker, and author in enterprise and corporate performance management (EPM/CPM) systems. He is the founder of Analytics-Based Performance Management LLC www.garycokins.com . He began his career in industry with a Fortune 100 company in CFO and operations roles. Then 15 years in consulting with Deloitte, KPMG, and EDS (now part of HP). From 1997 until 2013 Gary was a Principal Consultant with SAS, a business analytics software vendor. His most recent books are Performance Management: Integrating Strategy Execution, Methodologies, Risk, and Analytics and Predictive Business Analytics.

gcokins@garycokins.com; phone +919 720 2718


Linkedin.com contact: http://www.linkedin.com/pub/gary-cokins/0/15a/949.

Hear Gary share some of his thoughts concerning EPM innovations and best practices at the SAP Conference for EPM in Chicago, October 13/14, 2014





The 2014 SAP Conference for EPM: Strategy AND Execution

In EPM (or enterprise performance management if you prefer full names), we talk a lot about the Strategy to Execution cycle, believing that enhanced performance is possible by linking and continually re-aligning operational plans with business strategy and objectives.

While EPM as a solution area is focused primarily on the area of Finance within organizations, the principle of linking strategy with execution spreads far wider than this, and having an eye on your goals despite all that goes on around you can prove to be a success factor in many parts of business, if not personal lives also.

I’m presently involved in planning for the 2nd annual SAP conference for EPM, which is a collaborative venture between TA Cook Conferences and SAP. Being mindful of the strategy to execution link has been a big part of our planning cycle, and as we now approach the event (with just 5 weeks to go), I am pleased that we took the decision to set out our objectives early, defined a plan to work to, have held regular alignment calls with central and dispersed teams so that we can adjust plans and correct our course in light of new information or changes – with the result that we are now well on track towards holding a terrific event that has an excellent speaker line-up, fabulous sponsors and so far is seeming to attract interest and registrations from many Finance executives and managers.


Customer stories are key

Given my involvement in the event planning team I thought it might be remiss of me if I didn’t share some details of it with you in the coming weeks. After all, many readers of this blog channel are Finance professionals, and so it’s something that I hope will be of interest. At the last event we took feedback from many customers who attended, and by-and-large they told us that the thing they wanted to hear most at the conference were stories from other customers about their EPM solution experiences. With that in mind we set out our stall this year to focus squarely upon giving our customers’ the stage – with the result that we have eleven SAP EPM customers joining the event next month to talk about their experiences in implementing and using EPM solutions. With speakers from a range of industries using varying EPM solutions, there will surely be “something for everyone” interested in EPM. Our speaker line-up this year includes:

  • Blue Cross Blue Shield of Michigan
  • Citrix
  • City of Henderson
  • Dolby
  • HealthNet
  • John B. Sanfilippo and Sons
  • Lexmark
  • Mars
  • Owens Corning
  • Pacific Gas & Electric
  • T-Mobile

As well as this impressive customer line-up, we also have some special guests joining the conference including Joel Bernstein, SAPs CFO Global Customer Operations and Paul Hamerman, Principal Analyst at Forrester Research who are both due to take part in a discussion panel on day-1, and Gary Cokins of Analytics-Based Performance Management who will present the day-2 keynote. More details are available in the event brochure

Collaboration leads to better results

Our ability to secure this excellent speaker line-up has in many ways been a result of great collaboration with our sponsoring business partners. I’ll mention them more in my next blog as partners have been a key factor for us in creating a well-rounded agenda. Suffice to say as a result of that collaboration, we can expect to hear some terrific EPM stories from the customer speakers who have decided to join us at the event.

There’s no particular secret to setting up and hosting events. Obviously you need the right subject matter, but that alone doesn’t create the event. What you do need is a clear strategy, a workable plan and then you have to execute on it. This needs careful thought, planning, collaboration and continual re-alignment towards the overall goal despite the many challenges that occur along the way. And that’s really no different to many processes in business…albeit just a bit more “glitzy” perhaps in the end result!