The measure of insight An international banking institution improves performance with Deloittes enterprise planning capabilities

Abstract A renowned international organization, which provides financial assistance to developing countries around the globe, sought a way to better measure the performance of its business units against enterprise goals and standards. The organization composed of five closely associated institutions operating on a global scale required frameworks for its performance management system, including key performance indicators (KPIs), an information technology (IT) portfolio analysis, and balanced scorecards. The Deloitte Analytics team led a project to define standards and drive consensus within the organizations central enterprise architecture (EA) group. The initiative also involved creating a visually interactive dashboard of KPIs. In addition, Deloitte evaluated the maturity of the EA organization. The challenge The clients IT teams operate globally, delivering IT services to more than 140 offices around the world. There are numerous business units with their own distinct applications, processes, and business priorities. There were two factors which differentiated this EA group from a typical EA organization in terms of scope and span of control: It had strategic responsibility for setting technology direction, ensuring alignment of projects and spending, and assuring transparency in the decision-making process. It lacked ownership or control of the majority of IT assets that it oversaw and had limited ability to track and enforce standards. Faced with the EA organizations large scope, but lack of IT ownership, the client issued a request for proposal for help in selecting the KPIs needed to measure enterprise architecture activity and track results to drive convergence towards defined standards. The client required methodology and frameworks to measure business performance through the use of balanced scorecards, KPIs, and value measurements. How we helped The Deloitte Analytics team, in conjunction with our Security and Advisory practitioners, brought deep performance management and EA experience to the project. Deloitte worked closely with EA leadership to assess enterprise and organization strategy, and to select and cascade metrics to the various EA teams based upon the services they provided.

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In order to develop the KPIs that would provide a balanced and holistic view of EA performance across the enterprise, the team compiled an exhaustive list of measures applicable to the projects goals and objectives. These were passed through two sets of predefined filters to make certain they were actionable, measureable, and achievable. Deloitte chose seven KPIs that were well balanced across the clients objectives of optimize cost, simplify sourcing, increase agility, and reduce complexity. KPIs were then defined from a method of data collection and measurement, calculation logic, and aggregation routine into a single scorecard for the EA organization.

The results Upon selecting Deloitte for the engagement, the client set high expectations for defining KPIs that met the immediate need for measuring business units against enterprise standards, while also designing a new dashboard. Deloitte not only meet this need, but also provided KPIs to track the performance of the EA organization, KPI selection frameworks for future use, and direction on how to classify the organizations IT applications. The Deloitte team shared its observations regarding the EA units place in the Deloitte maturity model for EA. Since the organization was using the performance measurebased approach for the first time, the business required a roadmap with steps to gain enterprise-wide acceptance of the initiative and put it into operation. By educating the core client team on the Deloitte framework, Deloitte enabled the EA teams to update current KPIs and add new measures as they progressed through the maturity model, driving performance into the future. We shared with the client Deloittes analysis framework regarding classifying IT applications on the basis of business value, technical condition, and application cost, in order to carry out an IT portfolio analysis. As a result of Deloittes performance management alignment and frameworks, applications and performance metrics were rationalized, and the EA brand was enhanced across the institution. For more information, please contact: Vivek Katyal Principal Deloitte & Touche LLP +1 612 397 4774 vkatyal@deloitte.com Jeff Torstenson Principal Deloitte & Touche LLP +1 612 281 4000 jtorstenson@deloitte.com

Deloitte developed data consolidation templates, formulas, and an interactive dashboard for presenting and analyzing KPIs.
Deloitte performed a gap analysis to determine what data was readily available and what information was still needed. Subsequently, we developed a roadmap of initiatives to automate the process of gathering the scorecard data by implementing processes and technology changes. In order to present the KPIs to EA and enterprise executives, we developed an interactive dashboard with drill up/drill down capabilities and what-if scenarios using SAP Xcelsius. This dashboard gave executives an overview for each of the KPIs, as well as information on each KPI, including trend, definition, calculation logic, and current value.

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