INTEGRATED FRAMEWORK FOR OPTIMISING ORGANISATION PERFORMANCE

Transcription

1 INTEGRATED FRAMEWORK FOR OPTIMISING ORGANISATION PERFORMANCE Dr Antonie van Rensburg September

2 Contents Introduction Background Drivers for this framework Who are we? What does a successful organisation look like? Portfolio Management for Investments & Projects Integrated Framework Framework Components Optimisation Example Conclusion 2

3 Introduction Investment Portfolio Manager versus Board of Directors Financial Market Investment Strategies drive asset classes and asset types Strategy and context drives investment actions Integrated framework to represent an organisation as an investment portfolio Intent is to ensure alignment for optimal performance 3

4 Drivers - context THE CRUNCH! BUSINESS MATTERS CONFUSION 4

5 Who are we (strategy)? Sakhubukumkani Co-Op Ltd Sakhubukumkani Co-Op Ltd Business Business Development Development Capacity Building Capacity Building Consulting Outsourcing Investments APEX FUND Village Village Banking Banking & MFI MFI PRIMARY CUSTOMERS Department of Trade & Industry Department of Trade & Industry SARB SARB National National Treasury Treasury DBSA DBSA Department Department of of Agriculture Agriculture Khula Khula Enterprise Enterprise Finance Finance (Pty) (Pty) SECONDARY CUSTOMERS MTN, MTN, African African Bank, Bank, De De Beers, Beers, Anglo Anglo American, American, Serco Serco PLC, PLC, Aviatech Gmbh, FNB. Aviatech Gmbh, FNB. Business Engineering (S, R, O) Business Process Outsourcing Enterprise Portfolio Management Project Management PM Training 5

6 HOW DOES A SUCCESSFUL ORGANISATION WORK? Set Direction Vision/mission Strategy Planning Develop HR capabilities Roles Competencies Behaviours Culture Develop Customer aligned organisation Products Services Values Develop organisational and process capability Align business & people Processes to achieve strategy Measures 6

7 Investment Portfolio Management Scenario Planning Macro Micro Impact Analysis Causal Factors Type Resources SOP Forecasted Scenario Investment Technique Allocated Risk Implementation Profit/Loss Risk Control Resource Management Planning Risk Management System parameters Operations 7

8 Example The World Fin Market Spot Currencies Commodities Derivatives South Africa Lag 3 Lag 3 Stock Market Money Market Bond Market Property Increase Increase Decrease 8

9 Project Portfolio Management Aggregated Level of project activities Appropriate mix of projects and initiatives Costs, Risks, Returns and trade-off Individual Projects and its information is vital for the success of the overall portfolio Requires cross functional views Consistently needs business architecture views 9

10 Integrated Framework Why are we doing? Balanced Scorecard How are we doing? Decision Support Enterprise Portfolio Management What should we be doing? Business Architecture What do we have? 10

11 Balanced Scorecard The Business Vision management system which integrates an organisation s strategic operating objectives with balanced performance measures as a basis of monitoring planned achievement and an indication of future performance Financial Perspective If we succeed, how will we look to our shareholders? External Focus Internal Focus Profitability Growth Shareholder Value Customer Perspective To achieve our vision, how must we look to our customers? Price Service Quality Internal Perspective To satisfy our customers, at what processes must we excel? Cycle Time Productivity Cost People Perspective To achieve our vision, what culture and people will we need? Market Innovation Continuous Learning Intellectual Assets 11

12 Decision Support Decision Support Systems, Tools and Techniques Top 80% Tariffplan Problems Warehouse DCC EEE BZZ CAA BUZ CCC OPERATIONAL SYSTEMS FINANCIAL SYSTEMS Source CUSTOMER SYSTEMS HR SYSTEMS 12

13 Business Architecture DATA What FUNCTION How NETWORK Where PEOPLE Who When MOTIVATION Why TIME SCOPE (CONTEXTUAL) List of Things Important to the Business List of Processes the Business Performs List of Locations in which the Business Operates List of Organizations Important to the Business List of Events Significant to the Business List of Business Goals/Strat SCOPE (CONTEXTUAL) Planner ENTITY = Class of Business Thing Function = Class of Business Process Node = Major Business Location People = Major Organizations Time = Major Business Event Ends/Means=Major Bus. Goal/ Critical Success Factor Planner ENTERPRISE MODEL (CONCEPTUAL) e.g. Semantic Model e.g. Business Process Model e.g. Logistics Network e.g. Work Flow Model e.g. Master Schedule e.g. Business Plan ENTERPRISE MODEL (CONCEPTUAL) Owner Ent = Business Entity Reln = Business Relationship Proc. = Business Process I/O = Business Resources Node = Business Location Link = Business Linkage People = Organization Unit Work = Work Product Time = Business Event Cycle = Business Cycle End = Business Objective Means = Business Strategy Owner SYSTEM MODEL (LOGICAL) e.g. Logical Data Model e.g. "Application Architecture" e.g. "Distributed System Architecture" e.g. Human Interface Architecture e.g. Processing Structure e.g., Business Rule Model SYSTEM MODEL (LOGICAL) Designer Ent = Data Entity Reln = Data Relationship Proc.= Application Function I/O = User Views Node = I/S Function (Processor, Storage, etc) Link = Line Characteristics People = Role Work = Deliverable Time = System Event Cycle = Processing Cycle End = Structural Assertion Means =Action Assertion Designer TECHNOLOGY MODEL (PHYSICAL) e.g. Physical Data Model e.g. "System Design" e.g. "System Architecture" e.g. Presentation Architecture e.g. Control Structure e.g. Rule Design TECHNOLOGY CONSTRAINED MODEL (PHYSICAL) Builder DETAILED REPRESEN- TATIONS (OUT-OF- CONTEXT) Ent = Segment/Table/etc. Reln = Pointer/Key/etc. e.g. Data Definition Proc.= Computer Function I/O = Screen/Device Formats e.g. "Program" Node = Hardware/System Software Link = Line Specifications e.g. "Network Architecture" People = User Work = Screen Format e.g. Security Architecture Time = Execute Cycle = Component Cycle e.g. Timing Definition End = Condition Means = Action e.g. Rule Specification Builder DETAILED REPRESEN- TATIONS (OUT-OF CONTEXT) Sub- Contractor FUNCTIONING ENTERPRISE Ent = Field Reln = Address e.g. DATA Proc.= Language Stmt I/O = Control Block e.g. FUNCTION Node = Addresses Link = Protocols e.g. NETWORK People = Identity Work = Job e.g. ORGANIZATION Time = Interrupt Cycle = Machine Cycle e.g. SCHEDULE End = Sub-condition Means = Step e.g. STRATEGY Sub- Contractor FUNCTIONING ENTERPRISE Zachman Institute for Framework Advancement - (810) Copyright - John A. Zachman, Zachman International 13

14 Enterprise Portfolio Management Return (Margin) = Sales-COS= GM Overhead = NM Product/Service End-2-End Business Processes Complete supporting Business Architecture Required Change Objectives -Current level -Required level -Benchmarked level Projects Required Resource Project Portfolio Management 14

15 Example (before) Portfolio PRODUCT LINE NM BM Trading 15 % 50 % Consulting Services 35 % 40 % Retail Investments 12 % 13 % Project Portfolio PROJECT Project X Business Case PERFORMANCE Time: 8-10 min Cost: R105k/m Risk: High Data Source 1 Reseller Retail Service Provider Network Support: Marketing & Sales Regional Office - Broker Broker HO Trading Room Data Source 2 Outsourced Software Support Data Feed & DSS Initiator Manual Transaction Feed Market place 15

16 Example (After) Portfolio PRODUCT LINE NM BM Trading X % 50 % Consulting Services 35 % 40 % Retail Investments 12 % 13 % Project Portfolio PROJECT Project X Business Case PERFORMANCE Time: real time Cost: R30k /month Risk: Controllable Outsourced Software Support Network Market place Initiator Data Feed & DSS Transaction Feed Broker - gateway 16

17 Conclusion Translation of Business Strategy to Operational Objectives MIS does it exist and is it relevant? Does the employee understand how the business functions and makes its money? Financial Systems shouldn t be a lagging indicator of the business It represents the current state of well-being! 17

18 Q&A 18