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IMA Stuttgart May 2013

posted Jun 30, 2013, 1:10 PM by Germany ima
On May 31, 2013, the Stuttgart branch of IMA Germany held its first meeting of the year at the offices of Ebner Stolz Mönning Bachem  in Stuttgart.

Gary Cokins, an internationally recognized expert  and author in performance management systems and advanced cost management, held a presentation entitled  “Analytics-based Enterprise Performance Management – Making it Work.” Gary’s outstanding presentation was based on his many years of experience in the field of enterprise performance management (EPM) and corporate finance. His key message to the group was that most companies are far from where they want and need to be when it comes to implementing analytics in performance management, Instead, they still rely on gut feeling, rather than hard data, when making decisions.

Gary began his presentation by explaining how analytics should be embedded in strategy maps, the balanced scorecard, dashboards, activity based costing, customer profitability and value management, performance based budgeting, business intelligence and analytics – with all these components seamlessly integrated. 

Gary continued by discussing how analytics enable organisations to gain insights for better and more timely decision making. Business intelligence (BI) reporting consumes stored data that first must be cleansed and integrated from disparate source systems and is then transformed into information. This information, however, is historical and oriented towards the past. Analytics produces new information that provides predictive value. To be sure, argued Gary, enterprise performance management (EPM) requires BI as a foundation, but  it leverages and deploys this information to create new information containing this predictive value.

Gary finished by showing why predictive analytics are important, explaining that  organisations are shifting from managing by control and reacting to after-the-fact data toward managing with anticipatory planning so they can be proactive and make adjustments before problems arise.

A lively discussion about the weaknesses and failures of performance management systems  continued during dinner and rounded off a truly excellent presentation into the real world issues of making performance management effective in the daily operations of companies.

IMA Members from Munich, Stuttgart, Karlsruhe and Zurich were in attendance – and earned 2 hours of CPE credit.