Unleashing Profit Potential and Cost Control at Skadden Arps Using Oracle HPCM

Editor's Notes

• #4: Translating Vision to Strategy Barriers preventing organizations from successfully executing strategy Vision Barrier Poor communication from management leads to lack of vision and guidance for the work force Management Barrier Lack of management participation and focus on strategy prevents execution Resource Barrier Inability to properly allocate and align resources to strategy counteracts strategy execution People Barrier Without motivation to execute strategy aligned to vision, management lacks desire Vision, Strategy Background Vision An organization’s vision defines its direction – where it came from, where it is going It reflects the goals that and organization wishes to achieve and answers fundamental questions about the organization What is the organization, what does it do Who does the organization serve Why does the organization exist Where is the organization heading It represents the definition of an organization’s success from management’s perspective How does the organization determine if it is successful Strategy An organization’s blueprint for achieving its vision A strategy communicates to the organization the following Priorities Methods Resources Common outcomes A structured endeavor that achieves measurable results Execution through Strategic Planning Management activity that applies an organization’s vision to its goals creating common results Documented strategy that sets priorities, defines methodologies, aligns resources to achieve desired outcomes
• #5: Organizations often refer to The Balanced Scorecard as a means to align their vision with a strategy that translates a plan with specific steps to execute that strategy. Identifying what should be accomplished and measured, planners can actually execute strategy. Organizations can be viewed from four perspectives PerspectivesA Perspective is a view of an organization from a specific vantage point.  Four basic perspectives are traditionally used to encompass an organization's activities. The organization's business model, which encompasses mission, vision, and strategy, determine the appropriate perspectives. Financial Through financial data, an organization can gauge performance and success to its customers and shareholders Emphasis on just the Financial Perspective often leads to a biased or unbalanced view of the organization Learning & Growth An organization’s viewpoint towards individual and corporate self-improvement Because of today’s rapid changing work environment, the importance of knowledge workers within an organization who can adapt to the evolution of technology, competition, and redefined business practices is vital to the organization’s success Business Process Established, efficient business processes defined by individuals who are intimately involved in those processes reflect the Business Process Perspective Defines managers’ ability to measure how well their business is running Customer A recent realization of the importance of customer focus and satisfaction Leading indicator An unsatisfied customer will find an alternate product or service
• #6: Linking Strategy to Tactics A natural evolution of proper strategic planning is to link strategy to tactics to ensure communication of an organization’s vision occurs throughout the organization. Key in on Customer and Financial Perspectives and tie in profitability
• #7: Through strategic planning more questions arise
• #8: The chief hurdles for measuring profitability
• #9: Features of a successful profitability solution, connect-the-dots
• #12: Migrate from a legacy system for profitability reporting – FULL ALLOCATION OF COST
• #13: Snazz it up – expand to include sources of data for HPCM