Enterprise Performance Management

Q&A: Analytics-Based Enterprise Performance Management

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Watch the prerecorded webcast by pressing play:


This presentation by Gary Cokins, a leading practitioner and author will cover:

  • How strategy maps and their companion balanced scorecards communicate strategic objectives with target-setting to help cross-functional employee teams align their behavior to the strategy and better collaborate.

  • Why measures of channel and customer profitability and customer value are now superceding profit and service-line measures – and shifting from product to customer-focused organizations including future potential value – customer lifetime value.

  • How activity-based cost management (ABC/M) provides not only accurately traced calculated costs (relative to arbitrary broad-averaged cost allocations), but more importantly provides cost transparency back to the work processes and consumed resources, and to what drivers cause work activities.

  • Reforming the broken annual budgeting process with performance based budgeting that links strategy to operations and is process volume sensitive rather than simply incremental at each cost center.

  • How EPM/CPM also applies to public sector government to understand their “output costs” and better serve citizens.

  • Why business analytics, with emphasis on predictive analytics and pro-active decision making, is becoming a competitive advantage differentiator and an enabler for trade-off analysis.

  • How all levels of management can quickly see and assess how they are doing on what is important – typically with only a maximum of three key performance indicators (KPIs).

  • How to integrate performance measurement scorecards and ABC/M data with:

    • Strategy formulation.

    • Process-based thinking and operational productivity improvement.

    • Channel/customer profitability and value analysis and CRM.

    • Supply chain management.

  • Quality and lean management (Six Sigma, cost of quality).

Measuring and Managing Customer Profitability

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You may have interest in this article I authored titled “Measuring and Managing Customer Profitability” for the Strategic Finance magazine published by the Institute of Management Accountants. Its message is that customers are the source of financial value to increase shareholder and owners’ value. But today customers view suppliers’ products and service-lines as commodities. Therefore suppliers must provide differentiated services to different customer segments. The sales volume of high demanding customers is not proportional to their profit level because they cause extra expenses from their suppliers. (I wrote the article related to my part time role as the IMA Executive in Residence now in my 4th year term. The www.imanet.org has 85,000 members in 140 countries.) Here is the link to directly download the article as a pdf file:

“Measuring and Managing Customer Profitability”; IMA Strategic Finance; February 2015.



I have also recorded two courses on this topic with Michael Management Corporation:

My first course is MMC – IC0541: Analytics Based Enterprise Performance Management


Second course MMC – IC0593: Measuring and Managing Customer Profitability


Third course MMC – IC0599: Driver-based Planning, Budgeting and Forecasting