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A Circle of Blame for Failure – Part II

 

Read where the circle of blame begun

 

 

What are the lessons learned from this fictitious story?

 

Of course one can observe the irony that this circle of blame began with and ended with the CEO. But my intended message is that this circle could have been broken several times by applying and integrating EPM/CPM methods plus imbedding each of them with business analytics:

 

  • The CFO could have had an early warning alert signaling the rapid decline in earnings.
  • The Operations VP could have detected as a leading indicator the escalation in late scheduled orders.
  • The materials manager could have analyzed the cause-and-effect of the late production runs and begun mitigation with error correction.
  • The production manager could have early recognized the declining accuracy of the sales forecasts and recommended a more powerful predictive analytics solution.
  • The CIO could have realized the adverse consequences of not having a strategy map and its associated balanced scorecard system and fought for its adoption.
  • The VP of Strategic Planning could have demanded better selection of key performance indicators (KPIs) to align their managers and employees behavior and priorities with the executive team’s strategy.
Gain control over all your processes with a CPM/EPM solution

 

  • The marketing manager could have strongly demanded the need for a product, service-line, channel and customer and profitability reporting system to provide insights to answer the question of which types of customers to retain, to grow, to win-back, and to acquire.
  • The financial controller could have implemented an activity based costing (ABC) system to provide sales and marketing deeper insights.
  • The CPA firm’s audit partner could have advised the CEO of the need for the ABC system to shift the CFO’s emphasis from financial accounting to management accounting.
  • The Human Resources VP could have recognized how essential organizational change management is to overcome the natural resistance to change with employees and managers.
  • The CEO could have exhibited greater leadership in inspiring the benefits of implementing the full vision of a performance management framework with integration of all its methodologies with each one embedded with business analytics.

 

A culture for business analytics, metrics, and enterprise and corporate performance management (EPM/CPM methods and their supporting systems) has become essential for long-term sustained competitiveness and organizational transformation.

 

 

Gain control over all your CPM/EPM processes with Tagetik software solution

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