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- Herausgeber: John Wiley & Sons
- Kategorie: Fachliteratur
- Sprache: Englisch
Ron Dimon's thought-leading second edition of the book originally entitled Enterprise Performance Management Done Right, published in 2012, is a practical roadmap for using Connected Planning to develop an agile organization and to navigate the complex Enterprise Performance Management landscape. According to esteemed author, researcher, and Management professor Dr. Christopher Neck, "In the same way that one needs to be self-leading to finish a grueling marathon, an organization must be self-leading in order to execute on its plans in an efficient and effective manner. What drives self-leadership at all levels in an organization? The people within the organization of course--and those people must be involved in the planning occurring in an organization. Without a plan, an organization has no direction." Since 2012, much has changed in the world of connecting strategy with improved performance: new, cloud-based, in-memory technologies have been adopted by the largest organizations in the world. This book is for CFOs, CIOs, their direct reports, and any organizational visionary or aspiring leader who wants to ''bring it all together'' and create an actionable vision and plan for improving readiness, resilience, and performance.
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Veröffentlichungsjahr: 2021
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Table of Contents
COVER
TITLE PAGE
COPYRIGHT
DEDICATION
FOREWORD
Foreword from the First Edition
PREFACE
Who Should Read This Book?
Overview of the Content
So What?
Organic Growth and Outperformance Management
Note
ACKNOWLEDGMENTS
CHAPTER 1: What's Broken and What's Possible?
Strategy-Execution Gap
Buckets of Pain
Impact
Notes
CHAPTER 2: Connected Planning
CHAPTER 3: A Planning Operating System
Context
Impact
Responsibility
The Planning Operating System
Macro and Micro
The Middle
Summary
Notes
CHAPTER 4: Debate: What Can We Do, and What Should We Do?
People
The Process
Scenarios
Resilience
Drivers: What Moves the Needle?
Debate Management
Enabling Technologies
Potential Quick Wins
Summary
Note
CHAPTER 5: Commit: Who Will Deliver What, by When?
Accountability
Gaming the System
Enterprise Planning and Forecasting
Enabling Technologies
Ingredients for Your EPM Roadmap
Potential Quick Wins
Summary
Notes
CHAPTER 6: Visualize: Where Are We, Right Now?
Management by Exception
Your Point of View
Information Qualities
Information Delivery
Management and Statutory Reporting
Sustainability Reporting
Enabling Technologies
Rationalization
Potential Quick Wins
Summary
Notes
CHAPTER 7: Understand: Why Did We Get the Results We Got?
Business Questions
Patterns and New Insights
Big Data and Predictive Analytics
Data Visualization
Enabling Technologies
Components for Your Connected Planning Roadmap
Potential Quick Wins
Summary
Notes
CHAPTER 8: Execute: From Insights to Actions to Results
The 10-Step Insight Process
Everything Is Connected
Sales Performance Management
Sales Operations Performance
Order-to-Cash Performance Management
Supply Chain Performance Management
2
Marketing Performance Management
Summary
Notes
CHAPTER 9: Strategy: Everyone Aligned to the Right Outcomes
The Language of Strategy
Functional Value Maps
Optics: Line of Sight
Metrics Equal Focus
Profitability
Strategic Flexibility
Closing the Gap
Summary
Notes
CHAPTER 10: Digital Planning
Cloud Computing
Blockchain
Robotic Process Automation
Cognitive Technologies
Predictive Analytics
Cybersecurity
Notes
CHAPTER 11: Bringing It All Together
Alignment
A Common Business Language
Maturity Is in the Arrows
Return on Investment and Total Cost of Ownership
Standard Architecture
Your Connected Planning Roadmap
Organizational Readiness: The Connected Planning Center of Excellence
Paralyzed by Feuds?
Connected Planning and Incentive Plans
How Do You Get Started?
Summary
Notes
APPENDIX: AN EPM MATURITY MODEL
BIBLIOGRAPHY
ABOUT THE AUTHOR
INDEX
END USER LICENSE AGREEMENT
List of Tables
Chapter 1
Table 1.1 A Summary of the Buckets of Pain
Chapter 3
Table 3.1 A Business Function and Layer Matrix
Chapter 4
Table 4.1 Examples of Models That Support Strategic Objectives
Chapter 6
Table 6.1 Data Consumption Is Undergoing a Major Shift
Table 6.2 Example Roles Throughout the Organization
Table 6.3 Matching the Tool to the Type of User
Chapter 7
Table 7.1 Big Data Use Cases
Chapter 8
Table 8.1 Connected Planning and Order-to-Cash Performance Management Initiat...
Table 8.2 Potential Connected Planning Initiatives for Lenovo Group
Table 8.3 Connected Planning Components by Business Impact Area and Decision
Table 8.4 Connected Planning Initiatives by Industry by Management Process
Chapter 9
Table 9.1 Actions That Can Impact Profitability
Chapter 11
Table 11.1 How Connected Planning Supports Nature's Rules for Survival
Appendix
Table A.1 Maturity Model Assessment Components
Table A.2 Sample Maturity Scoring
List of Illustrations
Chapter 1
Figure 1.1 Barriers in the Strategy-Execution Gap
Chapter 3
Figure 3.1 Planning Operating System: High-Level
Figure 3.2 Start of the Cycle
Figure 3.3 Understanding Your Results
Figure 3.4 Debate Possible Scenarios
Figure 3.5 Accountable Commitments
Figure 3.6 Bringing It All Together
Chapter 4
Figure 4.1 Close-Up of the Debate Process and Its Inputs and Outputs
Figure 4.2 Benchmark Analysis for Citizens Bank, Q4 2010
Figure 4.3 KPI Decomposition into Value Drivers
Figure 4.4 Sales Commission Model
Figure 4.5 High-Level Architecture for Modeling
Chapter 5
Figure 5.1 Close-Up of the Commit Process and Its Inputs and Outputs
Figure 5.2 Top-Down, Bottom-Up, and Side-to-Side Iterative Planning
Figure 5.3 A Simple Plan
Figure 5.5 Integrated Plan Types
Figure 5.6 High-Level Planning Architecture
Chapter 6
Figure 6.1 Close-Up of Visualize Process and Its Inputs and Outputs
Figure 6.2 Volume and General Domain of Reports by Organization Level
Figure 6.3 Generic Reporting Architecture
Figure 6.4 End-to-End Financial Close Process at a High Level
Figure 6.5 Sustainability Reporting in Oracle Hyperion Financial Management...
Figure 6.6 Shanks Group Plc 2012 Annual Report Page 1
Figure 6.7 Typical Reporting High-Level Architecture
Chapter 7
Figure 7.1 Close-Up of the Understand Process, and Its Inputs and Outputs...
Figure 7.2 Metric Decomposition within the Business Matrix
Figure 7.3 Standard Time Series Financial Report
Figure 7.4 Example of Multivariate and Comparison Patterns
Figure 7.5 Distribution of Each Record That Falls within Each $100 Profit Ra...
Figure 7.6 From–To Patterns: Deliveries Out of Berlin (Left), Gulf Coast Hur...
Figure 7.7 Outliers
Figure 7.8 Multiple Trend Lines: Discount by Quarter/Year by Supplier
Figure 7.9 Dollar Purchase Amounts versus Customer Age Shows Three Distinct ...
Figure 7.10 Geospatial Example
Figure 7.11 Waterfall Chart
Figure 7.12 Structuring Unstructured Data
Figure 7.13 Sparklines Embedded within Text
Figure 7.14 Analytics Architecture
Chapter 8
Figure 8.1 The 10-Step Insight Process
Figure 8.2 The Planning Operating System Works from Corporate to Business-Un...
Figure 8.3 Connected Planning Outside of the Four Walls of Your Organization...
Figure 8.4 Standard Order-to-Cash Process
Figure 8.5 Management Operating System on Top of Order-to-Cash Transactions...
Figure 8.6 Full Supplier Performance Management Operating System
Figure 8.7 Financial Impact of Supplier Performance Management on a Company...
Chapter 9
Figure 9.1 Strategy Map for Manufacturing Business
Figure 9.2 Functional Value Map Based on the Strategy Map in Figure 9.1
Figure 9.3 Balanced Scorecard System
Figure 9.4 Strategy in the Planning Operating System
Chapter 10
Figure 10.1 Cognitive Technologies
Chapter 11
Figure 11.1 The Planning Operating System
Figure 11.2 The Middle of the Management Operating System
Figure 11.3 Completed Management Operating System Survey
Figure 11.4 Survey Results by Capability (lower means more need of this capa...
Figure 11.5 Information Architecture
Figure 11.6 Value Chain
Figure 11.7 Initiatives Organized into Achievable Work Packages
Appendix
Figure A.1 EPM Maturity Model Scoring Sheet
Figure A.2 Example Assessment Score
Guide
Cover
Table of Contents
Begin Reading
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CONNECTED PLANNING
A PLAYBOOK FOR AGILE DECISION MAKING
SECOND EDITION
Ron Dimon
Copyright © 2021 by Ron Dimon. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at www.wiley.com/go/permissions.
Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.
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Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.
Library of Congress Cataloging-in-Publication Data is available:
ISBN 9781119485803(hardback)
ISBN 9781119485827(epdf)
ISBN 9781119485797(epub)
Cover Design: Wiley
Cover Image: © JamesBrey/iStock/Getty Images
For my mom and dad, Gwen & Colin “Bill” Dimon, who connected me to the world.
FOREWORD
I've spent the last 30 years researching and writing within the organizational domain. During this time, I have educated nearly 70,0000 aspiring businessmen and women in the fundamentals and theories of management and leadership and how to put such knowledge into real-world practice. One concept that has been the focal point of my research and teaching involves the topic of self-leadership. Self-leadership is an empowerment process of leading yourself to overcome obstacles to your goals. In the same way that one needs to be self-leading to finish a grueling marathon, an organization must be self-leading in order to execute its plans in an efficient and effective manner. What drives self-leadership at all levels in an organization? The people within the organization of course—and those people must be involved in the planning occurring in an organization. Without a plan, an organization has no direction. Without a plan that involves employees at all levels of the company and thus encouraging self-leadership, an organization not only has no direction, but it has uncommitted employees that lack the passion and energy needed for success. As Dr. Laurie Buchanan once stated, “No involvement means no commitment—no exception.”
The planning system is where an organization defines and decides what it wants to accomplish and who will do the work to make the accomplishment happen. In a plethora of organizations, planning systems do not foster self-leadership. People are often drafted into a process that is disjointed, unorganized, manually tedious, and political. It is many times facilitated by different point solutions and legacy tools that don't speak the same language. Rather than debating the art of the possible for the business, teams often argue about the sources of data, assumptions, and drivers. The current planning system in numerous companies is a top-down, nonempowering drag on culture, morale, and organizational effectiveness. How is an organization able to leverage its planning system to overcome impending obstacles when the planning system is an obstacle itself? How is an organization going to remain competitive in the chaotic times of today? These questions suggest that in order to thrive, companies today need to think about planning in a different, innovative way—planning that encourages individuals to lead themselves and be part of the planning process. Connected Planning is a wonderful step in this direction.
In a Connected Planning environment, the answer to the question “what's possible?” comes from a much more democratic debate than what we are used to seeing, involving stakeholders at the top of the organization and the subject matter experts with boots on ground. This begins a cycle of collaboration and calibration that leads to new insights, enabling greater agility and resilience. In the words of a timeless proverb, “If you want to go fast, go alone. If you want to go far, go together.”
Today's marketplace is fraught with stiff competition, pandemic, and increasingly uncertain geopolitical dynamics. Connected Planning provides the framework for leaders to adopt and implement an agile decision-making environment—an environment that encourages employees to lead themselves while driving the organization forward amidst the velocity and uncertainty of the market.
Christopher Neck, PhD
Associate Professor of Management and Entrepreneurship
Arizona State University
Tempe, Arizona
October 2020
Foreword from the First Edition
I have been involved with what is now called Enterprise Performance Management (EPM) in one way or another my entire career, whether it was in financial reporting and analysis or formulating strategy for our global business. I am a strong proponent of closing the gap between high-level strategy and day-to-day decisions, and of completing the cycle from a decision to its effectiveness. All too often we devise great plans and set out to execute them and then get overcome by events or sidetracked without coming back to see how relevant our plans were or how effective our decisions are.
Current economic demands and competitive pressure now require that we pay more attention to this cycle of Strategy, Plan, Execute, Analyze, and Improve. We must be more flexible and adaptable and be able to react to changing market conditions and customer preferences. And we must have a new level of accountability at all levels of our organizations. And with more mature and advanced EPM tools and the vast amounts of data at our disposal, there is no reason we should not be using this to give us more insight into the business and make faster, better decisions.
At Hyatt, we use our EPM capabilities to optimize all of our resources in pursuit of our goal of becoming the most preferred brand in each customer segment that we serve, not just for our guests but also for our managers, associates, and investors. The general managers at our full-service owned and managed hotels have an average tenure of more than 21 years at Hyatt. They are supported by regional management teams that use information, planning, analytics, and what-if modeling to support our general managers in achieving their goals. EPM is one of the foundational elements of our success and helps us focus on our mission of providing authentic hospitality.
EPM is not just another management fad or another technology buzz- word. This is doing commonsense, fact-based management right. In this book, Ron Dimon shows us a way to think about EPM holistically and directly connects it to what's important in the business: sustainably delivering stakeholder value. The book provides a framework to hang your EPM roadmap onto, and helps you prioritize what's next on your journey to managing and improving performance. I wish you luck on that journey.
Gebhard Rainer, EVP and CFO
Hyatt Hotels Corporation
Chicago, IL
November 2012
PREFACE
This is the second edition of the book originally entitled Enterprise Performance Management Done Right published in 2012. Since that time, much has changed in the world of connecting strategy with improved performance: new, cloud-based, in-memory technologies have been adopted by the largest organizations in the world, more unstructured data and ways of handling it, and an even faster pace of business disruption and competition. Since the first edition was published, I've noticed more emphasis has been placed on the planning, modeling, and analytics components of Enterprise Performance Management, as organizations are eager to improve their ability to react quickly to changing markets and customers, changing competition, and changing employee needs. The desire to improve readiness for change as a core competency among my clients is driving more interest in planning processes and technologies.
What's changed in the second edition:
There is more emphasis on the debate and commit sections of the Enterprise Performance Management framework. I am using the term “connected planning” to emphasize that;
There is less emphasis on the statutory consolidation and reporting process, as the audience for this is limited to the Finance department, and Connected Planning appeals more to business managers and teams;
Chapters have been reordered to provide better flow of the Connected Planning process;
A new chapter on digital planning, and those new technologies that impact planning and forecasting, has been added;
As most planning systems are now cloud-based, or most organizations are moving to the cloud, the cloud architecture diagrams have been removed;
Whiteboard drawings have been updated and standardized by the steady hand of Meredith Dimon, Greenware Press Studios.
Who Should Read This Book?
This book is for CFOs, CIOs, their direct reports, and any organizational visionary or aspiring leader who wants to “bring it all together” and create an actionable vision and plan for improving readiness and performance. The book is also intended for managers who want to understand Connected Planning and how it can help them be better managers. My hope is that any student of planning and forecasting can learn and apply at least a few ideas from this book.
Connected Planning is essentially about three things to help you improve your management operating system:
A Framework.
This is the management operating system for your business and shows how all of the pieces of Connected Planning work together as one holistic process. It is most useful as a long-term, high-level Connected Planning vision.
Enabling Technologies.
Within the framework, I show what pieces you need to put into place to deliver on the necessary planning processes and how to connect them.
A Fresh Planning Roadmap.
This is insight on how to prioritize all those potential planning and forecasting initiatives given your strategic business objectives, and how they are supported by enabling technologies, eventually being fulfilled on your aspirational Connected Planning framework.
Overview of the Content
The book is organized into 11 chapters:
Chapter 1
: What's Broken and What's Possible?
This chapter gives you an overview of the promise of Connected Planning. It helps you understand what problems this domain was created to solve and how well it's been solving them.
Chapter 2
: Connected Planning.
A new chapter in the second edition that gives an overview of Connected Planning, the components, and other definitions that help readers navigate the rest of the book.
Chapter 3
: A Planning Operating System.
This is the central framework of the book and of the model for Connected Planning as a process. Each of the cornerstones of the process are explored in subsequent chapters.
Chapter 4
: Debate: What Can We Do and What Should We Do?
One of the most overlooked cornerstones of Connected Planning, modeling “what if” scenarios, is the topic of this chapter. Enabling a robust, fact-based, open debate in the company helps it prepare for a variety of possible futures and helps it maximize the value of its assets and minimize risk.
Chapter 5
: Commit: Who Will Deliver What, by When?
There's more to Connected Planning than only planning. This chapter describes some better practices and shows how planning should be connected to the other areas of the management operating system.
Chapter 6
: Visualize: Where Are We, Right Now?
One of the most common needs of Connected Planning is variance reporting. It helps answer the question “where are we and how are we doing?” at a point in time. This chapter outlines how reporting and visualization has changed to be much more dynamic, how it must deliver more insight than ever, and how it cannot live in isolation from the planning process.
Chapter 7
: Understand: Why Did We Get the Results We Got?
Connected Planning as a process not only helps set targets, it also helps explore and understand why you met, exceeded, or missed those targets. This chapter explores approaches to understanding results through business questions and includes the ideas behind “Big Data” and predictive analytics.
Chapter 8
: Execute: From Insights to Actions to Results.
Chapter 8
is a collection of Connected Planning use cases across a variety of business functions, including Sales and Marketing, Supply Chain, and Human Resources, and processes like order-to-cash. From this chapter you see how Connected Planning can be applied to any area of the business . . . not just Finance.
Chapter 9
: Strategy: Everyone Aligned to the Right Outcomes.
Connected Planning works when it's aligned with and in support of an organization's strategic objectives.
Chapter 9
covers several topics on aligning connected planning to strategy including the ever-popular Profitability Management.
Chapter 10
: Digital Planning.
A new chapter in this edition,
Chapter 10
gives an overview of newer digital technologies that can surround and improve Connected Planning ecosystems.
Chapter 11
: Bringing It All Together.
Chapter 11
is all about developing your next-generation planning roadmap based on the concepts and practices discussed in this book. It helps you sell Connected Planning internally, ties up a few loose ends, and addresses what it takes to become world class in Connected Planning adoption.
So What?
Typically, budgeting, planning, and forecasting are thought of as solely Finance or Information Technology initiatives and can easily be put in the “operational efficiency through automation” bucket of benefits. Which is just a fancy way of saying a corporate cost-cutting program. However, in order for Connected Planning to really matter in the business, it has to have a direct impact on more than just operating margins. Ideally, it should provide your department, business unit, and company with one or more competitive advantages in the areas of:
Customer acquisition and retention
Product innovation and profitability
People productivity
Supply-chain efficiency
Marketing effectiveness
Overall sustainable execution of strategy
It is no longer an IT-led area but rather a joint IT, Finance, and Business concern that impacts all of these performance areas.
Revenue Growth
One of the first areas of the business to look at for financial performance and competitive advantage is revenue growth. There are a variety of ways that Connected Planning can improve revenue growth, including:
Better focus on sales productivity through more relevant, expedient sales forecasting
Better sales velocity by focusing efforts on the best-selling products, bundles, and channels
Maximized revenue by modeling product, bundle, and channel price mixes
Operating Margin
Especially in a down economy, with the automatic reaction to cut costs, Connected Planning can help ensure you cut the “right” costs and that the removal of those costs doesn't adversely impact profitable revenue or future market share. Connected Planning can impact this area in many ways, for example:
Understanding customer and product profitability allows companies to focus on marketing and selling the products that give the best return.
Quickly modeling NewCo scenarios in a pending acquisition and basing those models on historical data and actual constraints (by product, by geography, by customer segment, etc.) can give a more accurate picture of available synergies to set the expectations of the street.
Cash Cycle
Accelerating your cash cycle gives you more confidence in working capital, better opportunities for investments, and improves overall efficiency. Connected Planning efforts can include:
Gathering and sharing information on Days Sales Outstanding (DSO), Days Payable Outstanding (DPO), and Days in Inventory (DII)—delivered to the right people in the organization (and tied to employee rewards)—can have a positive impact on cash cycle.
Cash-Flow forecasting and Working Capital analysis can help improve the cost of capital and debt ratios and can reduce risk.
Asset Utilization
Ensuring that assets such as plants, production lines, or equipment are being employed in profitable activities is the way of an efficient organization. A couple of ways that Connected Planning can impact your return on assets include:
Modeling capacity to ensure you have the right equipment availability, manpower, and output or yield
Scheduled versus unscheduled repair analysis to show how effective your preventative maintenance programs are
Customer Satisfaction
Making sure customers are attracted to your company and products and then retained for maximum lifetime value is one of the goals of most organizations. Connected Planning can help ensure that this happens by:
Showing if there's a correlation between customer satisfaction levels and customer support staffing
Analyzing customer satisfaction scores by product and product lifecycle over time, showing root causes for declines in product satisfaction
Tracking a plan to improve Net Promoter Score by department
Employee Engagement
With more awareness and accountability, employees at all levels of the organization can make decisions to improve both the top and bottom lines.
Connected Planning helps show how what you're working on is related to overall targets. For example, an accounts receivable (A/R) clerk can see how the velocity of receivables under his or her control can impact DSO, working capital, and free cash flow.
It encourages more sharing and collaboration of plans, analyses, and results, and reduces the need to re-create the wheel every time.
Organic Growth and Outperformance Management
The real goal of Connected Planning is to have a material impact on business performance, to standardize on one management operating system across an organization—for better performance visibility, execution, accountability, and organizational flexibility. What if you had a stretch goal of using Connected Planning not just for performance management, but for OUT-performance management?
How would we use Connected Planning to outperform your competitors on both revenue growth and profitability over the long term?
There are many ways to do this:
Organic growth is key—an intelligent investment in organic growth may provide more value than growth through acquisition. Connected Planning supports organic growth in many ways:
Profitability planning with customer and market segmentation: spending more effort marketing and selling the most profitable product/service offerings to the right people at the right time at the right price (price modeling and analytics is a key component of this).
Model, plan for, measure, and manage cross-selling and up-selling efforts. Use analytics to understand which cross-selling and up-selling initiatives work and how they can be replicated. Tie this into the pricing models as well.
Look to adjacencies, for example, bundles with partner products/services (e.g., Nike + Apple Watch). These can capture new markets and pull along sales of your products. Including external parties (suppliers, partners, resellers) in your rolling revenue forecasting process gives you more visibility into opportunities.
Market expansion: Connected Planning includes multidimensional modeling of different scenarios that can be risk-weighted, so, for example, if you want to expand to an emerging market, you can factor in risk from currency fluctuations, government regulations, and other assumptions. Once you have debated and selected the right model, you can use that as the basis for a capital expenditure plan, revenue and expense budget, and workforce plan.
Other areas for Connected Planning to contribute to out-performance include supporting and interconnecting knowledge-intensive intangibles (intellectual property [IP], patents, copyrights, strong brands) to financial and operational key performance indicators (KPIs)—thus linking innovation to the entire business.
If you want a quick way to start using Connected Planning to impact the top and bottom lines, simply add a new category to your revenue forecast: from “worst-case,” “probable,” and “commit” to a “stretch” (upside) number, and start managing to that.
Planning, as it is currently practiced, is still largely a collection of silos. It's time to bring it all together, to interconnect the processes, to build on a common-rules and metadata platform and to turn planning into a sophisticated management operating system.
My hope is that you embrace the Management Operating System and use Connected Planning to drive value for your people, your customers and vendors, your markets, and all of your stakeholders.
My hidden agenda is to help move the Connected Planning market category forward through more sophisticated adoption and by showing more correlation to improving performance. At a minimum, that would include:
Making it a closed-loop process, not fragmented silos and initiatives
Encompassing all areas of the business including Sales and Marketing, Operations, and Development, not exclusive to Finance
Including cognitive and predictive analytics, not just Financial Planning and Reporting
Using it as a platform for continuous improvement, better transparency, collaboration, and what author Daniel Pink says truly motivates us: Autonomy, Mastery, and Purpose
1
Note
1
. Daniel H. Pink,
Drive: The Surprising Truth About What Motivates Us
(Riverhead Press, 2009).
ACKNOWLEDGMENTS
To my friend Simon Tucker from whom I have learned much and shared many adventures and laughs. Much of the content for this book was formed and validated while working with Simon on myriad clients.
Thanks to Dr. Christopher Neck and Gebhard Rainer (writer of the Foreword in the first edition of this book) for their forewords.
To those who encouraged and supported me in writing this book: Rick Cadman, Dawna MacLean, Tony Mayo, Rohit Millstein, Marty Kaplan, and Bonny Smith.
To my early mentors from Deloitte in Toronto: John Gambles, P. Howard Lyons, Jim Youldon, and Denman Lawrenson and to Alan Slaight for letting me work on his book on Stewart James (Stewart James in Print: The First Fifty Years [Jogestja, 1989]).
To friends and colleagues who reviewed the content, gave me feedback, and helped improve the overall quality of the book, especially Shawn Frost and Fred Sandsmark.
To my editors at John Wiley & Sons: Sheck Cho and Susan Cerra, with much gratitude for their vision and especially for their patience.
To countless clients through 30 years of consulting who taught me their businesses and allowed me to contribute to their success.
Also to Gord Downie, Kevin Hunter, Brian Ginsberg, Bill Fowkes, Carl Tsenis, Corrado Fermo, Dick Antalek, Barbara Paige Kaplan, Madelyn Reid, Charlotte Reid, Patricia Sagara, Ed Majors, Mark Macaluso, Grace Stubberfield, Roland Edwards, and to my children, Harrison Dimon, Heather St. Hilaire, Ruth Dimon, and Oliver Peregrin.
A special thank-you to Tristan Gaynor, George Heiler, Kevin Murphy, and Dave McLurg at Anavate Partners for helping complete this book.
And finally, to my wife and illustrator, Meredith Dimon, thank you for your love, encouragement, and inspiration every day.
Ron Dimon
Santa Fe, NM
April 2021
CHAPTER 1What's Broken and What's Possible?
“Finding what's wrong and fixing it” versus “seeing what's possible and going for it” give two very different lives.
—TONYMAYO
We are in the middle of an information deluge and an insight glut.1
Our systems, processes, and information are still struggling to escape silos when the economy is crying out for collaboration, efficiency, and better results.
Folks are constantly reinventing the wheel at work and some lament “if only people in our company knew what everyone in our company knows!”2 Many companies can barely agree on the definition of a customer, an employee, or sales figures, let alone agree on how to improve them.
With all this technology and information at our fingertips, we are still making decisions in the dark and relying on our best guesses.
Certainly, some organizations are doing better than others when it comes to closed-loop, fact-based decision-making, but the opportunity to take advantage of all this data we have is barely being exploited.
Strategy-Execution Gap
What is it that thwarts a rigorous process of sustainably executing an organization's strategy? As shown in Figure 1.1, some of the barriers include those capabilities that are the responsibility of managers and leaders in the organization.
In March 2010, Harvard Business Review (HBR
