Issue link: https://epubs.iltanet.org/i/30285
between best-in-class operational performance and best-in-class financial results. BUSINESS INTELLIGENCE Business intelligence (BI) and business performance measurement (BPM) are umbrella terms for the methodologies, metrics, processes and systems used to monitor and manage an enterprise’s business performance. Business intelligence helps managers identify trends and their underlying causes earlier, empowering them to take corrective action before business losses occur. While much of this information was available in the past, the data resided in silo systems or in transactional databases where the volume of data precluded easy retrieval or meaningful analysis. BI systems include such elements as planning, budgeting and forecasting, consolidation, performance analysis, exception reporting, executive dashboards, balanced scorecard analysis and activity-based management (ABM). The trend is for these systems to be consolidated into one platform residing on an online analytical processing (OLAP) engine and Web portal. BPM systems promote greater visibility into business processes and make strategic planning more effective because the systems can better communicate and align employees’ professional and financial goals with corporate strategies. Business performance measurement empowers decision makers with relevant, timely and accurate information across departments and operational perspectives. INCREASED ORGANIZATIONAL FOCUS AND EFFICIENCY As part of their groundbreaking work on balanced scorecards, Robert S. Kaplan and David P. Norton determined that 85 percent of corporate management teams spend less than one hour per month discussing strategy. They cite this as one of the key reasons that strategy, although well-conceived in most cases, is rarely implemented effectively. Performance metrics, tied to strategy and part of the regular reporting mechanism, will not only focus management staff, it will inform non-management staff as to their particular contribution to firm strategy. A comprehensive performance measurement system should set performance benchmarks for how the firm will achieve breakthrough results in the following operational areas: People (Learning and Growth) • Ability to attract and retain the best and the brightest • Employee satisfaction • Enthusiasm, commitment and loyalty Internal Processes • Quality of work product, high standards • Technology • Long-term orientation Client • Client satisfaction • Client retention in strategic areas • Client growth and profitability Financial • Net income per partner • Revenue/Contribution per client • Revenue growth in strategic segments (clients, area of law, etc.) www.iltanet.org Financial Management 43