About the Course (5 min)

Overview of ABEPM (20 min)

• Who Will Benefit From This Presentation?
• Fundamental Questions
• What Do These Companies Have in Common?
• What is the Life-span of Big Companies
• Volatility and Uncertainty
• Drowning in Data But Starving for Information
• Articulating Information Needs for Impact
• Articles: Strategic Finance Magazine
• Confusion and Lack of Consensus about EPM
• What is Enterprise Performance Management?
• Long-term Trends in Government
• What Has Caused Interest in EPM?
• How Does it All Fit Together?
• EPM’s Three Major Components

The Rise of Business Intelligence & Business Analytics (21 min)

• Why is Business Analytics Needed?
• Questions about Competition?
• Problem: Generic Strategies Are Vulnerable!
• Confusion & Lack of Consensus about BA
• Work Backwards with the End in Mind
• Improving Performance by Unifying EPM and BA
• Business Analytics Insights and Actions
• Common Statistical Terms
• Which X is Most Likely to Y?
• From Data – BI Reporting – Models & Predictions
• What Pressures Cause Interest in Business Analytics?
• Examples of Analytics
• There are Many Business Analytics Domains
• Business Analytics is More Than Data Mining
• Reactive (Descriptive)
• Reactive Proactive
• How Do Forecasting and Predictive Modeling Differ
• Article: Changing the Past to See the Future

Strategy Formulation & Strategy Management (22 min)

• What Has Caused Interest in EPM?
• When Dilbert Jokes About It, It’s Mainstream
• Executives Most Concerned about Executing Strategy
• Vision and Mission Statements
• Generic Strategy Map Architecture
• Example of a Strategy Map
• Strategic Objectives: Part 1 – 3
• Who Does What?
• The Key to Scorecards
• Scorecard Lessons Being Painfully Learned
• What is the Difference Between KPI’s and PI’s
• What Measures Matter? KPI Correlation Analysis
• Using Correlation Tool
• Arrows Thickness Reflects Explanatory Power
• Sample Strategy Map
• What Are BSC’s Organizational Behavior Patterns?

Fact-Based Data with Managerial Accounting (78 min)

• What Has Caused Interest in EPM?
• Book: Activity Based Cost Management
• Six Eras of Managerial Accounting
• Here is Part of the Problem
• Cokin’s IFAC.org Taxonomy of Accounting
• Direct and Absorption Costing
• Activity-based Costing
• A Simple Explanation
• The Need for Tracing, Not Allocating Costs
• The Primary View of Most Managers
• The General Ledger View
• Each Activity Has Its Own Cost Driver
• The ABC Cross – What Questions Are Answered?
• Multiple-Stage Cost Flowing
• ABC/M Cost Assignment Network
• ABC/M Cost Assignment Network (Imputed CoC)
• Results of a Better Costing Method: Part 1 & 2
• Activity Costs “Pile Up” into Outputs
• Combined ABC and Project Accounting
• Time-Driven ABC (TDABC)
• Conditions Where TDABC is More Useful than ABC
• TDABC Costing Method Versus ABC
• Lean Accounting
• Rapid Prototyping with Iterative Remodeling
• Balancing Levels of Accuracy with Effort
• Offsetting Error
• Identifying Sources of Diversity
• Senior Managements Benefits Vs. Costs Test
• ABC Provides the Data for ABM
• The Vertical View of Assigning Costs
• The Horizontal View Sequencing Costs
• Value Stream Mapping
• CAM-I ABC Cross Expanded
• Time-Phasing ABC into ABM
• An Example of Unitized Costs
• Attributes
• Activity Analysis for Process Improvement
• ABC’s Attributes Can Suggest Action
• Cost of Quality (COQ)
• Sales – Costs = Profits
• Typical Examples of Cost of Quality Components
• Getting Efficient with Conformance Related COQ
• ABC’s Organization Behavior Barriers: Part 1 & 2

Customer Profitability and Value Management (34 min)

• What Has Caused Interest in ABPM?
• CEO Concerns Confirm this Understanding
• Value of Company = f(Value from Customers)
• Below-the-line “Calculated” Costs?
• What About Costs Below Product Costs?
• Costs From Sales and Marketing are not Products
• The Perfect Storm
• Two Types of Customers
• ABC/M Profit Contribution Margin Layering
• ABC Profit & Loss Statement
• Migrating Customers to Higher Profitability
• Customer Sales Volume Vs. Profits
• Evidence of Impact from ABC
• Revenue Management (RM)
• Why Are Some Customers More Profitable?
• Recursive Partitioning / Decision Trees
• Rapid Prototyping with Iterative Remodeling
• Benefits from ABC/M Rapid Prototyping
• A Shift in the CFO’s Emphasis
• Optimizing Customer Value: “Smart Sales Growth”
• Improve the Value Mix of Customers
• A Financial View is Not the Only Consideration
• Actions to Make Customers More Profitable
• Supply Chain Costing
• Supply Chain Trading Partner Relationships

The Shift to Predictive Accounting for Budgeting and Planning (32 min)

• What Has Caused Interest in EPM?
• Budgeting Problems Quiz
• Spreadsheet Budgeting – It Is Incremental
• Match the Budget Method to its Category
• Non-recurring Expenses: Strategic Initiatives
• Recurring Expenses: Future Volume & Mix
• Operations Resource Capacity Planning
• Predictive Accounting: Part 1 & 2
• Marginal/Incremental Expense Analysis
• Capacity Only Exists As Resources
• Predictive Accounting
• Risk Assessment Grid
• Matching the Budget Method to its Category
• Linking Strategy and Risk to the Budget
• Key Concepts and Definitions
• Don’t Treat Forecasting as a Special Event
• Refreshing the Rolling Financial Forecast
• Why Rolling Financial Forecast?
• Migrate from Annual Budgets
• Analytics: Probabilistic Planning Scenarios
• Disarming Competing Operational Measures
• CAM-I Capacity Model
• Predictive Accounting Information Flow
• Resource Capacity Planning and Costing
• Methods of Forecasting

Accelerating the Rate of Adoption for Implementing EPM (32 min)

• How Does It All Fit Together
• EPM is Circulatory and Simultaneous: Part 1 & 2
• Two BA Views: Hindsight and Foresight
• Drowning in Data But Starving for Information
• The Intelligence Hierarchy
• The Analytical Spectrum
• Slow Adoption Rate
• The Analytical Spectrum
• Remove the Wall Between IT & Users: Part 1 & 2
• Slow Adoption Rate
• Organizational Behavior Barriers: Part 1 – 3
• Typical Excuses Preventing Being Progressive
• Overcoming Resistance to Change