EADING PRACTICE VALUE REFERENCE FRAMEWORK

Leading Practices to plan, identify, create and realize the much-needed performance and value across the enterprise
VALUE & GOAL DECOMPOSITION & COMPOSITION VALUE ARCHITECTURE
LEAD OBJECTS PURPOSE & GOAL - VALUE (Why/Whither) Improve Improve Operational Value decomposition is the process by which the different value objects are Once a value object is decomposed, it needs to be connected to those ments around the value reporting to which, for example, the scorecards, dash- As a part of the Business Architecture, the Value Architecture services are
Strategic Business Objectives Cost Efficiency Lower Risk Strengthen Growth broken down into simpler forms of value objects. For example, a strategic aspects and areas that are relevant. For example, in order for the SBOs, CSFs boards and cockpits has to adhere to. An SBO, CSF, KPI, PPI and SPI have rules an enterprise modelling concept aimed to help prioritize and align
In the LEAD object modelling principles, a LEAD object refers to a specific, specialized object that is used by the Decomposition &
Composition principles within the LEADing Practice Frameworks, LEADing Practice Methods and LEADing Practice Approaches. In MAPS, MATRICES & MODELS
Competitiveness Excellence business objective (SBO) is decomposed into 3-5 critical success factors
(CSFs), while a specific critical success factor is decomposed into 5-7 key
and KPIs to create any value, it is vital that they are applied to one’s business
competencies and thereby specific business areas, functions and tasks. In this
to govern the value objects. If the organization has value management and
value governance in place, the value objects are subject to rules, audits and
business and IT investments – to realize values that matter the most in
reaching strategic business objectives – both short and long term. This
terms of the LEAD Way of Working using the LEAD objects, the classification of any of the LEAD objects is categorized in the following performance indicators (KPIs), and a key performance indicator is again particular area, there will be owners involved in developing the core competi- evaluations, and are thereby required to be compliant. concept has proven to be an important differentiator when planning, iden-
17 areas/subjects and entities: decomposed and then categorized into either a strategic, tactical or opera- tive and core differentiating aspects of the organization. In this process, the tifying, creating, and realizing the wanted value. From a holistic point of

Vision, Mission & Goals (VMG)

• Requirement & Goal • Business Competency • Rules • Process tional KPI. value objects are used as guidelines for the direction of their work, and their The above example is used to illustrate how vital it is to decompose the value view – taking all major business, process and technology perspectives into
• Services • Object • Owner • Roles performance is then measured against the value objects. objects into the needed granularity in order to connect it to the right aspects, consideration – Value Architecture provides rapid execution and return on

Measurement & Reporting

Balanced Scorecard (BSC)
• Flow • Measurement • Application • Data The decomposed key performance indicators can, however, be further in terms of relevant business competencies, objects, owners, processes, investment (ROI) enabled by a streamlined method coupled by lots of

Business Competency/

System Measurement/
• Platform • Infrastructure • Media • Compliance decomposed into both process performance indicators (PPIs) and/or service Performance measures can be done within the areas of different performance services, flows, roles, rules, compliance, measurements, applications, data, different focused approaches and powerful tools. The Value Architecture

Forces & Drivers (FD)

Business Model (BC)

• Channel Increase Growth Through Increase Growth Through Increase Revenue Through performance indicators (SPIs). This simple value decomposition example indicators e.g. KPIs, PPIs and/or SPIs. Such performance measurements can be channels, media, platforms and infrastructure aspects. approach is designed to address key decision makers like CEO’s, CFO’s,
Critical Success Factors Optimize Cost, Reduce Reduce Cost Of Faster Improve Brand Improve Customer Improve Customer Improve Partner & Improve Corporate Improve Information Improve Resource Improve Service & Strenghten Service & Improve Business Improve Risk Insight & Improve Risk Increase Growth Through Increase Growth Through Increase Revenue Through Increase Revenue With

Requirement (Rq)

Performance (Pe)
Reduce Income Tax Reduce Sales Costs Improve Responsiveness Strenghten Innovation Ensure Compliance Improve Risk Planning Expanding The Service Penetrating New Markets Developing New Sales & shows the relevance of decomposing the wanted value modelling objects the automated within multiple applications. It is the flow of the business decision- COO’s, CIO’s, CMO’s and CHRO’s. For each role, the performance and

Stakeholder (St)

Reporting (SM)
Cash Flow & Capital Administration Costs Goods Sold Time-to-Market Awareness Interaction Satisfaction & Loyalty Relationship Collaboration Services Management Management Product Delivery Product Development Recovery Intelligence Management Mergers & Acquisitions Partnering Service & Price Optimization Existing Customers

Revenue (Rev)

Information (I)
The purpose of LEAD object modelling is to: & Product Portfolio & Segments Service Channels right way. making that sets the basis for the channel, media and information require- value drivers varies, and so does the view upon the challenges confronted.

Service (Se)
Strategy (S)
• Decompose the objects into the smallest parts that can, should and needs to be modelled, and then compose the objects entities

Owner (O)
Cost (Co)
Value (V)
before building them (through mapping, simulation and scenarios).
• Visualize and clarify object relationships with the LEAD artifacts by using maps, matrices and models (alternative representation of VALUE & GOAL DECOMPOSITION & COMPOSITION

(MR)
CIO RO S GA ERP 10 CFO/COO FO S GA ERP 1 CRDO FL S OS SRM 16 CFO/COO FO S GA ERP 29 CMO FL S MS NET 4 CMO FO S OP CRM 2 CMO FO S MS CRM 1 CMO FO S MS ERP 18 CMO FO S MS CRM 4 COO RO S MS SRM 15 COO FO S GA SCM 1 CMO RE S MS SCM 24 CFO/COO FO S GA ERP 2 CFO/COO RE S IT ERP 16 CHRO FO S HR ERP 6 COO FO S DI ERP 25 COO RE S OS SCM 2 CRSO RO S GA NET 16 CMO RE S MS ERP 1 CFO/COO RE S GA ERP 10 CCO/CSO FO S GA ERP 15 CEO/CHRO RE S HR ERP 17 CRDO/COO RE S OP SCM 4 CMO RE S MS CRM 1 CEO/CSO RO S GA ERP 16 CEO/CSO FO S GA ERP 4 CMO FO S MS CRM 1 CFO/CMO RE S MS ERP 25 CMO RE S MS CRM 6
information). Business architecture Business architecture Service performance Financial policies Customer service policy and assessment Procurement planning Brand strategy Sales planning Brand development planning Channel collaboration and support Business development reporting Competitor benchmarking Define target strategies (SBO’s) Information resource management Develop and train employees Distribution strategy Procurement audits Regulatory planning Customer relationship management Operations reporting Business architecture Communications Supply network planning Analyze market and industry trends Business strategy Business strategy Customer account plans and policies Marketing and advertising Customer acquisition strategy and planning
• Reduce and/or enhance complexity overview. Optimize harmonization and consolidation Improve alignment of organization structures Improve service flow development for Acquire companies in target geographies Convert free services to fee-based services Optimal collaboration across the value chain Improve marketing strategy Consolidate/realign sales territories Improve customer loyalty Improve ability to turn strong relationships Balance between core and non-core Improve competitive research Improve strategic planning processes Improve datacenter power usage Develop and maintenance better core critical Develop low-inventory business models Rationalize order quantities and timing Improve anticipation and understanding of Establish customer communities Improve assessment and benchmarking of Improve communication of mission, vision, Build values and ethics into corporate Faster go-to-market with new product and Expand into markets outside the existing Improve understanding of chum/defection Develop, spin-off and sell new business Improve account management strategies Align advertising with pricing strategies Refocus and/or refine retention priorities and
• Communicate with customers. Driver & Forces (external and internal) 1,2 2 2 2 2 2 2 with business strategies product/service development functions into competitive advantage competencies effectiveness (PUE) competencies current and potential regulation/legislation business process performance values and ethics culture services industry or portfolio drivers strategies

Vision & Mission 1,2 1 2

As for the LEAD Way of Modelling with the LEAD objects, the purpose is to identify the three main properties characterizing the LEAD CIO FL S IT ERP 16 COO/CRDO FL S OS NET 18 COO RE S DI SCM 1 CFO/COO FO S GA SCM 1 CMO FL/RE S MS ERP 4 CRDO RE S OP CRM 2 CMO FO S MS CRM 15 CMO RO S MS CRM 16 CMO RE/RO S MS CRM 1 COO RO S GA SRM 15 COO RE/FL S OP ERP 18 CRDO RE S BD CRM 4 CFO/COO RE S OS ERP 21 CFO/COO RO S IT NET 16 CHRO FO S HR ERP 4 CMO FO S MS NET 1 COO RE S BD ERP 16 CSO RE S GA ERP 7 CRSO/CIO RO S IT ERP 2 CRSO RO S GA ERP 6 CCO/CSO RE S GA ERP 15 CIO/CSO RE S GA ERP 2 CSO RE S GA SCM 16 CSO FO S GA CRM 1 CBDO RE S GA ERP 1 CMO FO/RE S MS ERP 4 CMO FL S MS CRM 16 CMO FL/RE S MS ERP 4 CMO FO S MS CRM 16 Organizational Construct
object modelling principles: Strategy (strategic business objective) 2 1,2,3 2 2,3 2 2 2 Infrastructure resource management Service performance Distribution network planning Sales and marketing reporting Sales planning Operations strategy Customer service planning Sales assessment and workbench Customer service planning Define target strategies (SBO’s) Operations strategy Product/service design execution Information management Knowledge capture and availability Design incentives plan Customer account plans and policies Perform customer and market intelligence Business strategy Integrated risk management Business risk assessment Build company vision Business architecture Alliance management Business strategy Business strategy Identify market segment Marketing and advertising Sales planning Brand performance management Business Area
1) Identity: the decomposed area of the LEAD object that distinguishes it from other areas of the objects. Goal (business, application or technology) 1,2 2 2 2 2 2 Optimize infrastructure costs Service flow development for service design Refine/align logistics and distribution Acquire companies with relationships in Bypass current channels/sell directly to Reduce research and development time Develop and cultivate goodwill Improve cross-sell and up-sell approaches Improve customer service Improve relationship management strategies Increase use of flexible products/services in Improve design and development Fast and smart decision making tools and Improve data harmonization processes and Align compensation and incentive systems Differentiate treatment of Improve product/service conception Improve global trade service, cross-board Effective business continuity roadmaps Identify organization's limits and Improve communication of strategic Improve effectiveness of business model Improve product/service co-development Grow the scale of the existing business in Investigate and create business opportunities Enter new segments and markets Expand sales and advertising channels Charge higher prices dynamically Improve customer brand/product association Business Group
2) State: describes the purpose of the composed object. and service development functions strategies targeted customer segments customers through collaboration for key stakeholder groups facilities approaches processes tools with strategies, values and ethics customers/segments initiation processes transaction legal compliance weaknesses for business innovation directions and priorities with alliance partners primary industry that our companies separately would not and experience Business Function
Objective (critical success factor, plan, forecast or budget) 1,2,3 2,3 1 2,3 2,3 2 2 2 normally have realized Business Capability

OBJECTS
3) Behaviour: describes how the decomposed or composed object can be used as well as how it can be used with other LEAD
Service Construct Business Resource
object's as well as the decomposed or composed areas of the other LEAD object. Performance Indicator & Measurements Tier (strategic, tactical or operational KPI) 2,3 1,2,3 1 1,2,3 2,3 2 2 2 2 2 COO/CHRO FO S HR NET 1 CFO FO/RO S GA ERP 18 COO RE S OP SRM 14 CFO/CSO RO S GA ERP 28 CMO FO S MS NET 4 CRDO FO/RE S BD CRM 20 CMO FO S MS CRM 1 CMO RO S BD CRM 26 CMO RE S MS CRM 22 CFO RE S MS SRM 4 COO/CIO RE S GA SCM 2 CRDO FO S OS SCM 4 CFO RO S GA ERP 12 CFO/CIO RO S IT NET 16 CHRO FO S HR ERP 28 CTO RO S IT CRM 27 COO FO S HR ERP 16 CIO/CRSO FO S IT ERP 17 CRSO/CIO FO S IT ERP 2 CIO FO S IT ERP 6 CRSO/COO RO S OS ERP 1 CIO RE S IT ERP 16 CMO FL/RE S MS ERP 4 CMO RE S MS CRM 1 CCO FO S MS SRM 6 CMO RO S MS CRM 16 CMO FO S MS CRM 16 CMO FO S MS ERP 4 CMO RE S MS CRM 1

Value Expectation 1,2 1 2 2

STRATEGIC Develop and train employees Building utilization Product/service manufacturing specification Tax handling Select channels for target assessments IP portfolio assessments Marketing and advertising Product/service change specification Market research oversight Channel strategy Business architecture Information management Project management Information architecture Design incentives plan Information architecture Design incentives plan Integrated risk management Integrated risk management Information management planning Quality guidelines and standards Service performance Competitor benchmarking Analyze market and industry trends Channel strategy Competitive response planning Sales performance management Segmentation planning Sales performance management
Service Delivery
Information Service
Core Differentiating Competency
Core Competitive Competency
The LEAD objects and BITE (Business Innovation & Transformation Enablement) objects are common, and therefore the objects can
Key Performance Indicators
Establish process improvement and Increase use of lower-cost real estate and Design product/services to use cost effective Improve tax benefits ratio and compliance Improve focus on higher-value advertising License or acquire product/services and Improve brand strength and goodwill Improve definition of product/service and Improve understanding of current customer Increase focus on partnership, merger and Build flexible business architecture and Better settings for innovation to flourish Improve business case development and Improve data transparency Align management and staff incentives with Better technology exploitation Improve incentives around product/service Aggregated detection of risks and control Improve business continuity planning Invest in accurate analytics and decision Align internal audit practices with business Improve effectiveness of service model Increase emphasis on differentiated product Redefine the industry to yield an intrinsic Identify joint ventures partners that Gain market share while others recover from Improve cross-sell and up-sell campaigns Improve focus on price-insensitive customer Improve identification of cross-sell/up-sell
innovation as key competencies facilities/relocate business operations materials channels/media intellectual property service specifications satisfaction acquisition opportunities infrastructure analysis processes company value and performance efficiency monitoring across the business support tools and risk objectives and services competitive advantage completes company product and service external shocks segments opportunities Main Service Non-Core Competency Business Object
be used for: Value Driver 2 1,2,3 1,2,3 2 Information Object
architecture and infrastructure porfolio Supporting Service Cost
1) LEAD modelling principles, and thereby architectural and layered architectural modelling Performance Expectation 1,2 1,2 2 Service Provider Revenue Data Object
CFO RO S GA ERP 12 COO RO S IT ERP 16 CPO FO S OP SCM 18 CFO RE S GA ERP 5 CMO FO S MS ERP 4 CRDO FO S BD CRM 16 CMO RE S MS CRM 1 COO RE S MS ERP 16 CMO RE S BD CRM 22 COO RO S IT SRM 1 COO RE S GA ERP 16 COO RE S BD ERP 20 CFO RE/FL S OS ERP 16 CFO/CIO RE S IT ERP 16 CHRO FO S HR ERP 16 COO FO S DI ERP 15 CPO RE S OP SCM 4 CRSO RO S IT NET 8 CRSO/CIO RE S IT ERP 2 CFO/COO RE S OS ERP 25 CFO RO S GA ERP 7 CIO/COO RO S GA ERP 16 CSO RE S GA SCM 1 CMO RE S MS CRM 1 CMO/CCO FO S BD SRM 16 CMO RE S MS ERP 4 CMO FO S MS CRM 4 CMO RE S MS NET 4 CMO FO S MS CRM 4
2) BITE modelling, and thereby innovation (renewal, novelty, modernization and advancement) as well as transformation (alteration, Service Consumer
change, optimization, renovation and makeover). This allows for the possibility of interlinking between the BITE and LEAD frame- Performance Driver 2 2,3 2,3 2 1 = Map Building and facility planning Business resilience remediation Sourcing strategy Financial policies Segmentation planning Product/service portfolio planning Segmentation planning Customer account services Perform customer and market intelligence Regulatory compliance planning Define target strategies (SBO’s) Product/service portfolio planning Assets guidelines, rules and standards Information resource planning Design incentives plan Stock control Procurement oversight Integrated risk management Business resilience remediation Information management Financial controlling Business architecture Alliance management Competitive response strategy R&D strategy Determine target segment Segmentation planning Competitive response planning Customer relationship management
Service Tiers
Improve terms on property and facilities Minimize recovery costs through Rationalize/consolidate vendor portfolio Consider tax implications in the Improve focus on segments with lower Improve utilization of product/service Improve effectiveness of marketing and Improve customer service and support Improve understanding of customer needs Develop and leverage strong/unique partner Improve responsiveness across the value Broadened product/service and service Improve asset management processes Improve IT disaster recovery plan Build innovation and improvement into Divest low-demand/obsolete inventory Improve focus on higher value vendor Improve monitoring and management of Improve business disaster and recovery Improve analysis of managerial Increase accountability of business unit Improve effectiveness of governance Seek joint ventures partners that completes Expand into adjacent business Improve product/service co-development Target new geographies Increase focus on most effective sales and Improve tailoring of offerings to customer Improve identification of valuable customer
works, as well as allowing for the possibility to innovate and transform using architectural disciplines, and vice versa. Value Proposition 2 2 = Matrix “self-healing” capabilities location/selection of facilities average cost-to-serve development channels advertising processes processes relationships chain offerings rewards and incentives relationships risk and compliance plan information leader for tax impact of decisions models the existing products and services porfolio domains/market segments previously not with alliance partners advertising channels needs relationships
served
Reporting 1,2 2 2 2 1,2,3 2,3 2 2 1,2 3 = Model
COO/CIO FL S OS ERP 16 CFO RO S OS SRM 14 COO FL/FO S HR ERP 20 CFO RE S GA ERP 2 CMO RE/FO S MS ERP 16 CRDO FO S BD CRM 4 CMO FO S MS CRM 1 COO/CIO RE S DI ERP 16 CMO/COO RE/RO S OP PLM 16 COO RE S MS SRM 8 CFO/COO FL S GA SCM 16 CRDO FO S OP ERP 21 CFO RE S GA ERP 5 CFO/COO FO S OP NET 14 CHRO FO S HR ERP 16 COO RE S OP SRM 3 CPO FL S OS ERP 12 CEHO FO S OS ERP 7 CRSO/CIO RO S IT ERP 1 CFO RE S GA ERP 3 CFO RO S GA ERP 1 CIO/CFO RO S IT ERP 17 CMO RE S MS CRM 4 CIO RE S BD SRM 4 CMO/CCO FO S MS SRM 16 CMO RE S MS ERP 4 CMO FO O MS CRM 4 CMO FL/RE S MS ERP 4 CMO FO S MS CRM 1
Asset allocation Asset allocation Workforce planning Tax handling Marketing and advertising Product/service design planning Sponsorship and events Order processing Product/service manufacture process Channel collaboration and support Cash flow management Operations process Financial planning Inventory supply schedule Talent management Demand planning and forecasting Procurement audits EHS regulations and compliance Business resilience remediation Financial planning Treasury and risk management Integrated risk management Identify market segment IP trading Channel collaboration and support Segmentation planning and strategy Sales strategy and planning Sales processing Segment assessment and analysis
Optimize asset-related costs Consolidate company real estate/facilities Reduce operational costs through efficient Ensure full utilization of tax carry forwards Improve execution of market- and Increase number and quality of Apply brand to new and unbranded Improve order management methods and Improve quality of products and services Improve ability to identify and assess Optimize working capital by applying Better pattern processes Improve budgeting and forecasting Collaborate with supplier on data Improve ability to attract talent Improve demand forecasting processes, Improve terms on materials purchases Improve environmental, health and safety Redundancy in key strategic parts of the Drive greater financial predictability Lower debt burden Improve incorporation of risk analysis in Tailor product and services to new customer Acquire intellectual capital and/or Increase coverage with sales, distribution Target new segments within current Increase sales by guaranteeing 24/7/365 Increase use of differential pricing Increase focus on high value/high potential
Business Process
resource allocation supply-driven promotions product/service and service launches product/services tools partnering opportunities flexibility in internal activities capabilities synchronization skills and tools legal compliance operational model to ensure continuity business planning segments technology and marketing partners geographies 100% availability mechanisms customers
Process Step
Process Activity
Infrastructure Component
SERVICE Gateways
OBJECTS
THE WAY OF THINKING WAY OF THINKING: STRATEGIC ASPECT TASKS PURPOSE & GOAL (VALUE) MAPS
CFO FL T OS ERP 8 CFO/COO RO/FO T HR ERP 2 COO VA T OS ERP 16 CFO FO T GA NET 3 CMO/CFO FO T MS CRM 18 CMO/CIO RE T MS CRM 1 CMO FO T MS CRM 4 CMO RO T GA CRM 16 CMO RE T MS ERP 15 COO RE T MS SRM 21 COO/CIO FO T GA SRM 4 CMO RE T MS CRM 4 CFO FL T GA ERP 16 CMO/CIO RE T IT ERP 14 CHRO FO T HR ERP 16 COO RE T OP NET 2 CHRO/CPO FO T OS NET 16 CEHO RO T OS NET 7 CIO RO T IT ERP 26 CMO FO/RO T MS CRM 17 CFO FO T GA NET 5 CHRO FO T HR ERP 7 CMO RE T MS ERP 16 CCO FO T MS ERP 4 CHRO RE T HR NET 16 CMO FO T MS CRM 16 CMO RE T MS CRM 13 CMO RE S IT ERP 4 CMO FO T MS CRM 16
Infrastructure Service
Which service is needed for the What kind of objects are used
Management Process
value and goal? Main Process
Sourcing guidelines, standards & procedures Organizational structure Sourcing strategy Tax handling Fees and commissions administration Market research oversight Brand development planning Financial controlling Customer relationship management Channel collaboration and support Value and performance management Competitive response planning Business development reporting Information management planning Manage employee development Product manufact./service execution planning Sourcing oversight and monitoring EHS guidelines, rules and rewards Business resilience planning Analyze market and industry trends Financial planning Career planning Channel strategy Market tracking Employee administration Sales strategy and planning Target channel evaluation Sales processing Service performance management
with the value and goal?
The LEADing Practice Way of Thinking, the so-called “welt anschauung”, is the essential starting point that creates the guiding princi- Supporting Process
Focus Area Improve balance between buy and lease Better alignment of business planning, Consolidate/outsource logistics and Accelerate or defer income/expenses Control advertising channels/media cost Improve market intelligence Develop and leverage strong brand Improve account management methods and Develop strong customer relationships and Improve integration of business processes Enhance outsourcing and building Better match of trends and buying patterns Improve and standardize credit assessment Collaborate with customers on data Better resource and skills performance Align product/service and material Improve incentives around procurement Compliance with environmental standards Effective and efficient back-up systems Reduce business risk by aligning with Improve alignment of budgets and capital Clarify governance roles and Improve sales/marketing and distribution Increase industry/portfolio marketshare Improve understanding of chum/defection Increase promotional and marketing Diagnose conversion rate of sales by Align product/service and service prices with Improve customer service to high Business and Information Object Business, Information and Data Object
ples. Providing a structural concept around strategic definitions e.g. wants, needs, direction, issues and problems. The way of thinking • Identify value and performance requirements management and reporting functions distribution functions tools communities across partner networks partnership of non-core business functions processes synchronization ordering schedules with distribution efficiency changing market needs programs with strategic priorities responsibilities costs with partners candidates activities advertising channels/campaigns value to customers value/potetial customers
postulates about what ought to be, with an abstraction level, which can analyze, appraise, approximate, assess and capture an objects • Focus on value issues and weaknesses cluster
schedules
MODELS MODELS
and or artifacts idea, design, plan, scheme and structure in order to understand the underlying thought, view, vision as well as • Develop value and performance standards COO FL T OS ERP 14 CFO FL T GA SRM 18 COO RE T OP SCM 1 CFO FO T GA ERP 6 CMO RE T MS CRM 16 CRDO FO/RE T BD CRM 16 CMO FO T MS CRM 4 CMO RO T MS CRM 12 CMO RE T MS ERP 21 COO RE/RO T GA SRM 16 COO RE/RO T OP SCM 12 CMO RE T MS CRM 9 CIO RO T GA ERP 4 CIO RO T IT CRM 27 CHRO/CMO FO T HR ERP 4 COO FO T OP NET 16 COO RE T MS CRM 15 CIO RO T IT NET 7 CIO RO T IT ERP 26 CIO FO/RE T IT ERP 8 COO/CMO FO T GA ERP 18 CHRO/COO FO T HR ERP 17 CMO FO T MS SCM 16 CCO RE T MS CRM 4 CPO/CCO FO T MS SRM 16 CMO RE T MS CRM 21 CMO FO/RE T MS ERP 16 CMO FL/RE T MS NET 6 CMO FO T MS CRM 16 Service Map Object Map
perspective, philosophy and belief. Requirement Map
• Ensure value measurements (across business areas) Sourcing strategy Account receivables Product manuf./service execution planning Tax handling Sales planning Product/service design verification Marketing and advertising Sales planning Sales processing Business architecture Supply network planning Market tracking Investment management Data and content management Design incentives plan Product/service assembly planning Channel strategy Security privacy and data protection Business resilience planning Information resource management Business architecture Objective management Competitive response strategy Market analysis evaluation Competitive response strategy Sales strategy and planning Generate leads Sales planning Customer acquisition strategy and planning Service Matrix Object Matrix
Stakeholder Map Requirement #
Who/Whom specification e.g. Where specification e.g. Layer, Objects, Area What specification: What specification:
Service Model Object Model
• Apply continuous business value improvements Increase use of leased product/servicing Consolidate billing operations, services and Refine and/or align material strategies Develop and utilize unique tax expertise Improve conversion rate of sales per Improve design and development processes Improve brand awareness/elevate brand Improve campaign design and management Improve effectiveness of sales processes Improve ability to integrate merged and Improve flexibility across the value chain to Improve actuality of consumer analysis Avoid expensive recovery investments Better master data harmonization Build product/service margins/profitability Better inventory control Improve product/service Data and privacy protection compliance Efficient fall-back systems Improve access to and distribution of Improve alignment of customer, Minimize risk by increasing expertise in Improve cost with complementary partners Increase revenue with market segment Improve cost with complementary partners in Lower prices to gain market share Improve quality and assignments of sales Coordinate pricing of complementary Improve influence in customer decision-cycle
Stakeholder/Owner (process, service, data, infrastructure) etc High Level Requirements Detailed Requirements

LEADING PRACTICE MAPS

Where specification:
Who specification: Who - in terms of ownership:
Enterprise, Business Area, Group, etc. #
equipment processes marketing campaign image processes and tools acquired organizations match new demands into sales incentives introduction/launch processes performance information product/service, sales, servicing, support, selected activities and markets in sales, marketing and distribution previously not served sales, marketing and distribution leads products and services
• Ensure strategic reporting and decision flow
Stakeholder #

and fulfillment strategies

Stakeholder Stakeholder (Business Unit) Stakeholder (Department) Stakeholder (Operational Manager) Business Area Competency Groups Operational Competencies

BUSINESS COMPETENCY
#

• Business strategy development

#
#

A LEAD Map is an accurate list and representation of the decomposed and/or composed LEAD Objects. A LEAD Map is often in the
#

COO FO T OS ERP 17 CPO FO T BD NET 12 CPO FO T GA NET 1 CFO FO T GA NET 3 CMO RO T MS ERP 10 CRDO FO/RE T BD CRM 16 CMO FO T MS CRM 1 CMO RO T MS CRM 16 CMO RE T MS CRM 16 COO/CCO RO T GA ERP 15 CFO FO T GA ERP 16 CMO RE T BD ERP 1 CIO FO T IT ERP 12 CFO/COO RE T IT CRM 20 COO/CIO RO T IT ERP 20 COO RE T OP NET 2 COO FO T BD NET 16 CIO RO T OS NET 7 CIO RO T IT ERP 26 CIO FO/RE T IT ERP 16 CHRO RE T HR ERP 16 CFO/CHRO RO T HR ERP 16 CRDO FO T BD ERP 16 CIO RO T IT ERP 7 CMO/CCO FO T MS SRM 16 COO FO T BD ERP 16 CMO RE T MS CRM 20 CMO FO T MS ERP 16 CMO FO T MS ERP 16 Which business competency Business Owner
• Business design
TACTICAL
#
#

form of a list that can be in a simple row as well as a catalog, and has the purpose of building an inventory or index list of the objects #
EHS regulations and compliance Product/service portfolio planning Define target strategies (SBO’s) Tax handling Sales planning Product/service design standards Brand strategy Channel plans and policies Servicing issues tracking Alliance management Value and performance management Prototyping and trials Information resource management Data and content management Business resilience planning Demand planning and forecasting Develop product/service strategies Regulatory compliance planning Business resilience planning Information resource management Organization service model Project resource planning Product design planning Regulatory compliance planning Market research strategy Product design standards Sales planning Sales planning Prospect intelligence uses value and goal? Process Owner
• Business model development
#

that are to be either decomposed and/or composed in the different LEAD Layers (business, application and technology). Service Owner
# #

Key Performance Indicators

Improve effectiveness of plant maintenance Standardize product/service catalogs Refine vendor/supplier strategies Improve tax benefits of compensation and Improve sales cost governance (policies, Improve product/service development Improve revenue generation capabilities of Improve channel management, processes Improve responsiveness to customer Improve communication with stakeholder Improve capability levels of resources in key Develop more attractive products and Consolidate device management information Better use of real-time data Establish recovery and maintenance plans Improve demand planning, processes, Improve incentives around material Improve monitoring and management of Efficient recovery solutions Improve access to information and Improve management of organizational Improve accountability/authority of Improve product/service quality and price Improve compliance and legal management Improve market coverage with partner Improve product and service quality Tailor sales approaches to customer Improve structuring and pricing of Improve product linkage based on customer
• Develop competitive and differentiated advantage #
Business and Information Object
Value Owner
#
#
benefit programs guidelines) performance management, methods and brand and tools complaints/feedback groups positions services and tools skills and tools efficiency regulatory compliance analytical tools change in support of initiatives program and project resources with partner processes of intellectual capital and segments promotions intelligence
• Business Transformation & Innovation Enablement (BITE) #
tools technology
Performance owner
MODELS
#

LEADING PRACTICE FRAMEWORKS #

#
Platform Component
# CIO FO T IT ERP 11 CIO RO/FO T IT SRM 18 CMO FO T MS NET 4 CFO FL/RE T GA NET 2 CMO RE T MS CRM 10 CRDO FO T OP CRM 20 CMO FO T MS CRM 16 COO RE T OP CRM 16 CFO FO T GA ERP 1 COO RE T GA ERP 2 CIO RO T IT ERP 16 CRDO RE T BD ERP 6 CFO RO T IT CRM 10 CIO/COO RO T IT NET 14 CFO RE T GA ERP 16 COO RE T OP ERP 2 COO FO T BD NET 12 CEHO RO T OS NET 17 CIO RO T IT ERP 22 CIO FO/RE T IT ERP 16 CFO/COO FO T GA NET 18 CHRO RO T HR ERP 16 CRDO FO T BD ERP 16 CHRO RO T IT ERP 16 CRDO/CCO FO T BD SRM 16 CBDO/CRDO FO T BD ERP 1 CIO RO T DI NET 21 CMO RE T MS ERP 6 CMO FO T MS CRM 1 Organizational Chart Information Owner
PROCESS
#

Relation to Strategy Platform Device INFRASTRUCTURE Application Owner

Competency Map
#
#
Knowledge management planning Infrastructure resource planning Segment assessment Financial planning Sales planning Procurement guidelines Select channels for target assessments Demand planning and forecasting Legal advice Define target strategies (SBO’s) Knowledge capture and availability Product/service design execution Regulatory compliance planning Information architecture Cash flow management Inventory performance management Develop product/service strategies EHS guidelines, rules and rewards IT strategy Information management planning Project management Project resource planning Evaluate perform. of existing products/services Technology innovation and strategy Product design planning Product concepts planning Order management planning Market tracking Sales strategy and planning
The purpose of an enterprise architecture framework is to define how to organize and structure the viewpoints and objects associ- • Analyze business strategy #
Platform Service What kind of infrastructure enables How is value and goal involved Data Owner
Competency Matrix
#
Increase utilization of IT systems Consolidate IT, telecom, network equipment Improve focus on higher-value customer Optimize expense vs. capitalization of costs Evaluate actual sales cost Improve ordering and receipt processes Optimize marketing channels Improve capacity/demand planning Establish development of strategic assets as Improve identification of stakeholder groups Increase accuracy real-time information flow Increase emphasis on design for Improve audit and compliance management Build master data with fully controlled Improve assessment and benchmarking of Improve capacity planning processes, skills Improve collaboration with Improve physical security of people Improve performance and reliability of IT Improve analytical processes and tools Continuously track and manage the Improve assignment of accountability and Increase revenue with new Improve competency transfer of new Improve product/service quality and price Innovate with new products or services Improve order management methods and Improve understanding of product/service Increase sales to existing customers
ated with an enterprise. An architecture framework serves as guiding principles to establish a common practice for creating, inter- the value and goal execution? with the process?
#

• Identify internal and external drivers (competitive forces) #

#
and facilities segments processes, skills and tools a key competency and establishment of priorities of demand thoughout the value chain configurability/customization processes redundancy A/P performances and tools vendors/partners systems/platforms realization of project benefits authority products/services differentiation technology and new business environment with partner tools value to customers
PLATFORM Business Model Level 1-3 OWNER Platform Owner
preting, analyzing and using architecture descriptions within a particular domain and/or layers of an enterprise or an organization. A • Understand business model drivers
#
#

Infrastructure Owner
# # Which platform is used to enable Information and Data Object Business, Information and Data Object Who is the owner of the value
framework is a theory based on a set of principles linked together to serve as a guideline with reference documentation. LEAD • Outline strategic business objectives (SBO’s) the value and goal? Security Owner
CMO/COO FL T GA ERP 4 CFO RO/FO T GA ERP 16 CPO FO T OS ERP 5 CFO FO T GA ERP 10 CMO RE T MS CRM 25 CRDO RE T GA CRM 16 CMO FO T BD CRM 16 COO RE T DI NET 16 CMO/COO RE/RO T DI ERP 16 CIO RE T IT NET 16 CFO/CIO RE T IT CRM 12 CMO/CRDO RE T BD ERP 16 CFO RO T GA NET 21 CFO/CIO RO T OS NET 28 CFO RE T GA ERP 18 CPO RE T IT NET 2 COO FO T OS SRM 12 CFO/CIO RO T GA NET 7 CRSO RO T IT ERP 2 CFO/COO FO/RE T OP ERP 8 CRSO/COO RO T IT ERP 12 CFO/COO RO T OS ERP 16 CMO RE T MS CRM 16 CRDO/CCO FO T GA SRM 4 CMO/CCO FO T MS SRM 16 CCO RE T DI SRM 10 CIO/CMO FO T IT NET 16 CMO FO T MS ERP 8 CMO RO T MS CRM 1 and goal?
#
#

version 3.0 currently consists of 10 frameworks, 6 methods and 4 approaches that are all integrated with each other and with support- • Identify performance and value opportunities
#
#
Financial policies Financial reporting Sourcing strategy Financial controlling Sales planning Project management Product/service deployment planning Operate outbound transportation Order processing Infrastructure operations Technology innovation R&D portfolio planning Value and performance management Information and knowledge management plan Financial policies Financial management Procurement audits Financial planning Business resilience planning Procurement planning Business resilience planning Quality audits and control Segmentation planning and strategy Business strategy Channel performance management Distribution network planning Performance and value evaluation Sales strategy and planning Customer relationship management MODELS MODELS Compliance Owner
ing maps, matrices and models. The LEADing Practice frameworks consists of the following: • Capture value and performance expectations and drivers
#
Minimize unprofitable, fixed contracts Better alignment of financial accounting and Improve purchasing on a national/global Optimize valuation and costing methods for Improve measurements of sales cost Improve project management Improve marketing and advertising Improve pick, pack and ship processes Improve services and delivery Improve integration of IT systems across Increase use of flexible and expandable Improve integration of research and Improve accounting and measurement Better data and privacy protection Coordinate management of A/R & A/P Improve coordination with vendors Improve coordination with business Compliance with accounting standards More effective damage handling Better cost transparency Effective and efficient risk management Improve effectiveness of program/project Increase sales/marketing coverage with Improve development of technologies, Increase revenue with new products/services Evaluate distribution channels that are Improve methods and tools for managing Increase focus on pricing effectiveness/price Strengthen customer base Information and Data Object Infrastructure Map Process Map Information Object
• Business Model/Competency Reference Framework • Process Reference Framework • Align value drivers to business strategy analysis functions basis inventories performance management methods and partner networks infrastructure development processes compliance across business units partners roadmaps procedures governance models partners distribution channels and customer through partnerships currently selling company products/services sales performance optimization Infrastructure Matrix CALL
SUB Process Matrix
MODELS UT MODELS
• Value Reference Framework • Service Reference Framework tools relationships with M&A
Infrastructure Model UTP STA
Process Model
• Define value innovation and transformation Platform Map LL/O NC
E Ownership Map
• Cloud Reference Framework • Information Reference Framework CA
• Define corporate and/or business unit strategy Platform Matrix M
ME Ownership Matrix
• Application Reference Framework • Data Reference Framework IS CH
• Develop and formalize business goals Platform Model AN Ownership Model
• Platform Reference Framework • Infrastructure Reference Framework CFO FL/RE O GA ERP 14 CFO FL O GA ERP 16 COO FL O DI ERP 25 CFO RO O GA ERP 10 CMO RE O MS CRM 25 CRDO RE O BD CRM 16 CMO FO O MS CRM 25 CMO FL/RE O MS ERP 25 CMO FL/RE O MS CRM 16 CSO RO O GA ERP 11 CMO FL O MS CRM 23 CRDO FL O BD ERP 25 CFO RE O OS ERP 23 CIO RE O IT ERP 14 CMO FL O MS ERP 23 COO FL O OP ERP 25 COO FL O OS ERP 25 CRSO/CIO RE O GA NET 24 CIO RE O IT ERP 19 CMO RO O MS ERP 5 COO FO O GA ERP 16 COO RE O OS SCM 9 CMO FO O MS CRM 16 CEHO RE O OS ERP 25 CMO RE O BD CRM 13 CRDO RO O BD ERP 4 CMO FO O MS CRM 16 CMO RO O MS CRM 16 CMO RE O MS CRM 4

AN
Business Model Level 1-3

H
EC
VALUE & GOAL

IS
Account payables Account payables Inventory movement management Tax handling Sales planning Product deployment planning Brand tracking and monitoring Customer servicing and contact history Customer servicing and contact history Policy management Servicing issues tracking IP trading Asset traceability Security, privacy and data protection Customer servicing and contact history Product manufacturing planning E&PM lifecycle management Legal audit management Business resilience planning Customer acquisition strategy and planning Project planning Operations support oversight and governance Sales processing/execution EHS incident and issue management Monitoring and tracking R&D strategy Brand marketing and advertising Customer tracking and checking Customer tracking and checking

M
They LEADing Practice frameworks has proven to help companies with some of the most common and complex advanced modelling # of accounts payable complaints per 1000 # of discounts lost % of correctly picked line items % of tax compliant audits % of sales lost % of new product/service developments % of transaction value of brand % of call agent's work time spent speaking to % of callers given satisfaction surveys Company policies and procedures # of new service requests % of patents for sale % of changes to the fixed asset register that # of hours spent in IT security training # of contacts per agent Average production costs of items Equipment availability % # of audit findings closing more than two % of incorrectly assigned incidents Customer acquisition cost as % of sales % of IT initiatives/projects championed by % of vendor services delivered without % of new customers from new # and % of accidents % of new product/service developments Investment in research # and % of message performance # and % of customers lost # and % of returning customers DECOMPOSITION

M
accounts payable invoices launched on budget callers are processed timely weeks value the business agreed service targets products/services launched on time
principles, dilemmas and challenges that companies has to confront today. This includes, but is not limited to: LEADING PRACTICE FRAMEWORKS Internal & External Driver, Vision & Mission,

NIS

MA
Business Strategy, Goal, Objective, Performance

NA
• Link to strategy.

HA
Media As Communication MEDIA VALUE & GOAL FLOW

GE
CFO FL/RE O GA ERP 21 CFO FL O GA ERP 29 COO FL O DI ERP 25 CFO RO O GA ERP 25 CFO FO O MS CRM 16 CMO RE O BD SCM 25 CMO FO O MS CRM 15 CMO FL/RE O MS ERP 24 CMO FL/RE O MS CRM 23 COO RE O OP SRM 16 CMO FL O MS CRM 23 CRDO FO O BD ERP 25 CFO RO O GA ERP 23 CIO RE O IT ERP 25 CMO FL/RE O MS ERP 16 COO RE O DI SCM 23 COO FL O OS ERP 25 COO/CIO FL O OS ERP 23 CIO RE O IT ERP 19 CMO RO O MS ERP 5 COO RE O GA ERP 23 CMO/COO RE O BD SCM 25 CCO RE O MS CRM 13 CRSO RO O GA ERP 10 CRDO RE O BD ERP 8 CMO FO O MS CRM 13 CMO FO O MS CRM 4 CMO RE O MS CRM 16 CMO FO O MS CRM 18

MEC
• Mapping of Business Model domains. Media Store, Advertising Media, Indicator & Measurements Tier, Requirement, Business Workflow
Account payables Account payables Stock control and governance Tax handling Sales planning Monitoring and tracking Brand assessment and evaluation Contact routing Customer servicing and contact history Demand planning and forecasting Servicing issues tracking Product design planning Financial controlling Security, privacy and data protection Customer servicing and contact history Order processing E&PM lifecycle management Assets evaluation and audits Business resilience planning Customer account management Project resource management Product deployment planning Target channel evaluation Legal audit management Product design planning Sales evaluation and audits Brand marketing and advertising Customer history management Sales processing/execution With which media does the value Which value and goal proceeds
• Capture Service Model. VALUE REFERENCE FRAMEWORK: External Driver, Vision, Mission, Goal, Business Strategy, Objective, Performance Indicator, Requirement, Value & Performance Expectation, Value & Performance Driver, Value Proposition Broadcast Media/Electronic Value Expectation, Value Driver, Performance Value Flow
# of invoices disputed # of invoices % of Inventory items incorrectly located % of disputed tax statements Lead to pipeline conversion rate % of new product/service developments Improve customer perception of warranties % of calls transferred % of calls answered within set timeframe # of integrated business processes across # of open service requests % of new product/service developments % of depreciation charges accurately % of email spam messages Agents FTE’s as % of total call center FTE’s % of backorders Equipment performance % # of business compliance issues caused by % of problems resolved within the Customer management process cost as % Ratio of fixed price projects cost versus Time-to-market of new services Order fulfillment lead time via Effectiveness of internal audits New product development rate Conversion rate of marketing/sales % of lead generation budget allocated for # and % of negative feedbacks from # and % of sales per employee and goal interact? and follows?
• Map and model processes and activities. Expectation, Performance Driver, Value Proposition, Reporting Flow

CALL/OUTPUT
Communication Networks, Digital Media,

MECHANISM
launched on time partner networks launched on time calculated and recorded unstopped/undetected improper configuration of assets required time period of operating expenses T&M projects cost partner/channel campaigns experimentation customers
BUSINESS MODEL/COMPETENCY REFERENCE FRAMEWORK: Business Area, Business Group, Business Capability, Business Resource, Core Differentiating Competency, Core Competitive Competency, Cost, Revenue Business, Information and Data Object Business, Information and Data Object Service Flow
• Identification of value and performance drivers. Electronic Media, Hypermedia, Mass Reporting
• Capture the many diverse and different workflows such as e.g. business workflows, service workflows, process flows, application Media, Multimedia, Print Media, Information Flow
SERVICE REFERENCE FRAMEWORK: Service Delivery, Information Service, Main Service, Supporting Service, Service Provider, Service Consumer CFO FL/RE O GA ERP 14 CFO FL O GA ERP 29 COO FL O DI ERP 25 CFO RE O GA ERP 25 CMO FO O MS CRM 16 CRDO VA O BD ERP 25 CMO FO O MS CRM 15 CMO FL/RE O MS ERP 24 CMO FL/RE O MS CRM 24 CMO FO O MS SRM 2 CMO FL O MS CRM 23 CRDO FO O BD ERP 4 CFO FL O GA ERP 23 CIO RO O IT ERP 25 CMO RE O MS ERP 22 COO RE O DI SCM 23 COO FL O OS ERP 8 CRSO/CIO RE O GA NET 24 CIO RO O IT ERP 19 CIO RO O IT ERP 16 COO FL O GA ERP 18 CIO RE O IT ERP 19 CMO FO O MS ERP 24 CCO FO O MS ERP 13 CMO RE O BD CRM 11 CMO RE O MS CRM 15 CMO RE O MS CRM 16 CMO RE O MS CRM 16 CMO RE O MS CRM 10 MODELS MODELS
system flows, data flows, reporting flows, etc. Recording Media, Social Media Process Workflow
Account payables Account payables Stock control and governance Tax handling Sales planning IP portfolio tracking Brand assessment and evaluation Servicing issues tracking Servicing issues tracking Sales processing Servicing issues tracking Product design planning Financial controlling Security, privacy and data protection Customer service planning Stock control and governance E&PM lifecycle management Legal audit management Business resilience planning Integrated risk management Project resource management Security, privacy and data protection Sales processing/execution Market tracking Product deployment planning Customer service strategy and planning Brand marketing and advertising Customer history management Customer relationship management Media Map MODELS Flow Map
• Model value and performance aspects, recognize and categorize measurements and reporting. INFORMATION REFERENCE FRAMEWORK: Information Performance Measurements, Information Reporting, Information Service, Information Security, Information Integration, Information Standardization Application Workflow
# of invoices outstanding # of new payable invoices % of inventory items with incorrect stock % of error in placing withheld tax right Sales productivity ratio % of rejected patents Increase brand credibility % of phone calls adherence to script % of blocked calls Adjust partner incentive plan to focus and # of open service requests older than 28 Design to cost accuracy % of depreciation charges recorded in the % of system transactions executed within Agent utilization % of safety stock used Equipment quality % # of minor finding on ISO 9001 internal % of problems with a root cause analysis # of IT-related events with business impact Average number of people assigned per % of downtime due to security incidents Average time-to-profitability for changes to Market share % Time-to-market of new products/services Direct communications to customers per % of leads generated via direct mail # of customer complaints % increase/decrease in the customer Media Matrix Forces & Drivers, Vision, Mission & Goals, Flow Matrix Data Flow
• All aspects of information architecture in terms of information object modelling, information measurements and reporting, etc. Media Used In Computer
balances parameters reward joint interest days appropriate period response time threshold audit with failure to escalate project/program existing products/services year loyalty-index Requirement, Stakeholder, Strategy, Value,

MEC
Media Model Flow Model

ALL
CLOUD REFERENCE FRAMEWORK: Cloud Requirement, Cloud Goal, Cloud Performance Measurements, Cloud Reporting, Cloud Service, Cloud Security, Cloud Integration, Cloud Standardization Computing Media/Data Storage Scenarios
• All aspects of application modelling and application architecture in terms of application components, modules, functions, tasks, Balanced Scorecard, Performance, Measurement

T /C
HA
services, flows, events, measurements and reporting as well as application standardization and integration. Devices, Application
PROCESS REFERENCE FRAMEWORK: Business Process, Process Step, Process Activity, Management Process, Main Process, Supporting Process CFO FL/RE O GA ERP 25 CFO FL O GA ERP 25 COO FL O DI ERP 25 CFO RE O GA ERP 25 CHRO RE O HR ERP 23 CRDO RE O BD ERP 25 CMO FO O MS CRM 15 CMO FL/RE O MS ERP 1 CMO FL/RE O MS CRM 25 CMO RO O MS CRM 20 CMO FL O MS CRM 16 CRDO FO O BD ERP 25 CFO FL O OS ERP 23 CIO RO O IT ERP 25 CMO RE O MS ERP 16 COO RE O DI SCM 23 COO FL O OP ERP 23 CRSO/CIO RE O GA NET 24 CIO RO O IT ERP 19 CIO RO O IT ERP 12 CIO RE O IT ERP 10 CIO RO O IT ERP 18 CRDO FO O BD ERP 25 CEHO RE O OS ERP 13 CHRO RO O HR ERP 14 CMO FO O MS CRM 4 CMO RE O MS CRM 16 CMO FO O MS CRM 16 CMO FO O MS CRM 25 & Reporting, Business Competency/Business

PU
NIS
Software
• Analyze and develop your maturity levels and all aspects of data modelling and data architecture in terms of data components, Account payables Account payables Finished goods inventory planning Tax handling Employee administration Product deployment planning Brand assessment and evaluation Customer servicing and contact history Customer servicing and contact history Customer relationship management Servicing issues tracking Product design planning Asset traceability Security, privacy and data protection Customer servicing and contact history Inventory movement management Schedule and perform maintenance Legal audit management Business resilience planning Integrated risk management Integrated risk management Security, privacy and data protection Design evaluation EHS incident and issue management Workforce planning Market research strategy Brand marketing and advertising Customer account services Sales processing/execution Model, Revenue, Cost, Information,

IN
M
data entities, data services, data flows, measurements, and data reporting as well as data harmonization and consolidation. APPLICATION REFERENCE FRAMEWORK: Application Service, System Measurement # of overdue invoices % of amounts posted to accounts payable % of filled warehouse locations % of tax paid in-time versus tax penalty ratio % of management FTE’s % of research and development cost for new Increase brand strength Agent adherence to schedule % % of customers that are satisfied # of customer relations skills % of overdue service requests Product innovation index % of fixed asset acquisitions that are % of system transactions executed within Agent utilization - night shift % of slow moving products % of defects/violations/deviations found # of postponed ISO 9001 internal audit % of problems with a root cause identified % of business projects that consider IT risk # of business disruptions caused by % of email spam messages Research idea conversion rate Zero doctors cases and lost time incidents Capacity utilization Investment in development of new markets % of leads generated via email # of visits to customers % of online sales revenue
Owner, Service, System
that represent goods/services received products recorded response time threshold during peak-time by materials control caused by auditee problems stopped/detected

IN
• Technology standardization and integration (application, data, platform and infrastructure).

TE
Measurement/Reporting

PU
DATA REFERENCE FRAMEWORK: Data Service DATA ROLES

LA
/ CA U
• Cut costs.

T
Which data are used, modified LL G Which business roles works with
• Introduction of new solutions (BPM, SOA, Cloud, etc.). CFO RE O GA ERP 18 CFO FL/RE O GA ERP 25 CFO/COO FO O DI ERP 16 CFO RE O GA ERP 25 CHRO RE O HR ERP 23 CMO VA O BD SCM 25 CMO FO O MS CRM 1 CMO FL O MS ERP 23 CMO FL/RE O MS CRM 23 CIO RO O IT ERP 15 CMO FL O MS CRM 16 CRDO RE O BD ERP 25 CFO FL O OS ERP 23 CIO RO O IT ERP 25 CFO RE O GA ERP 16 COO RE O DI SCM 23 COO FL O OP ERP 25 CRSO/CIO RE O GA NET 24 CIO RE O IT ERP 19 CIO RE O IT ERP 25 CIO RO O IT ERP 25 CIO RO O IT ERP 19 CFO RO O GA ERP 16 CHRO FO O HR ERP 16 CHRO RE O HR ERP 25 CCO RO O MS CRM 13 CMO RE O MS CRM 16 CMO RO O MS CRM 13 CMO RE O MS SCM 23 RE
PLATFORM REFERENCE FRAMEWORK: Platform Service and/or produced? the value and goal?
• Business Innovation & Transformation Enablement (BITE). Account payables Account payables Warehouse tracking and monitoring Tax handling Employee administration Product governance Brand strategy Customer servicing and contact history Customer servicing and contact history Information resource management Servicing issues tracking IP portfolio tracking Asset traceability Security, privacy and data protection Financial controlling Inventory movement management Product manufacturing planning Legal audit management Business resilience planning Service delivery planning Integrated risk management Security, privacy and data protection Financial controlling Develop and train employees Employee administration Market analysis evaluation Brand marketing and advertising Sales performance management Sales administration CHANNEL EV VALUE & GOAL RULES
AL OL
UAT TR
INFRASTRUCTURE REFERENCE FRAMEWORK: Infrastructure Service Accounts days payable % of customer billing errors % of return warehouse expense % of tax statements filed in-time % of part-time employees % of sales due to launched product/services Response time to negative media coverages Average after call work time % of email inquiries responded within 24 # and % of product knowledge capturing # of overdue support tickets # of patent submissions, benchmarked % of fixed asset acquisitions that are % of virusses, spyware and malware Average cost per incoming phone call % of time spent picking back orders Average production costs of items # of postponed ISO 9001 internal audit % of unmodified/neglected incidents % of delivered services not in the service % of availability SLA’s met % of incidents classified as security related % change in new product revenue to total Complete monthly 1-on-1 program for all Total headcount Market share gain comparison % % of leads generated via social media % of customer wallet share per Average order size Information and Data Object Which channel is being used to E CO N Which rules govern the value Information Object
hours against competitors recorded in the appropriate period detected in emails caused by auditor catalogue revenue staff with performance rating product/service M E C H AN IS M
deliver the value and goal? and goal?
MODELS MODELS
CFO FL/RE O GA ERP 21 CFO FL O GA ERP 18 COO FL O DI ERP 25 CFO RE O GA ERP 25 CHRO FL O HR ERP 23 CRDO VA O BD ERP 16 CMO FO O MS CRM 25 CMO FL/RE O MS ERP 24 CMO FL/RE O MS CRM 25 CIO RE O IT ERP 15 CMO FL O MS CRM 23 CRDO FL O BD ERP 25 CFO RE O OS ERP 23 CIO RO/RE O IT ERP 23 CFO RE O GA ERP 23 COO RE O DI SCM 25 COO RE O OP ERP 25 CRSO/CIO RE O GA NET 24 CIO RE O IT ERP 19 CIO RE O IT ERP 29 CIO RO O IT ERP 4 CIO RO O IT ERP 18 CRDO RO O BD ERP 25 CHRO FO O HR ERP 7 CFO FL O BD SRM 5 CMO FO O BD CRM 16 CMO RE O MS CRM 16 CMO RO O MS CRM 16 CMO FO O MS CRM 21 Data Map Business, Information and Data Object Information and Data Object Roles Map
Account payables Account payables Stock control and governance Tax handling Employee administration Product/solution assessment Brand assessment and evaluation Customer servicing and contact history Servicing issues tracking Knowledge capture and availability Servicing issues tracking IP portfolio tracking Asset traceability Data and content management Financial controlling Order processing PM monitoring and reporting Legal audit management Business resilience planning Service level agreements Integrated risk management Security, privacy and data protection Plan and develop cost and quality targets Evaluate overall strategy Plan and develop cost and quality targets Product deployment planning Brand marketing and advertising Customer tracking and checking Sales administration Data Matrix Roles Matrix
MODELS MODELS
Average monetary value of disputed invoices % of electronic invoices % of unfinished received items % of tax statements paid in-time % of sick days (illness rate) Average number of prototypes per new # and % of customer perception of aesthetics Agent attendance % % of lost calls % of knowledge management shared # of service requests solved on first-call # and % of average cost per patent % of fixed asset disposals accurately Data accuracy ratio Average direct costs per incoming phone Customer order cycle time Defects per million opportunities (DPMO) # of repeat audit findings % of unmodified/neglected problems % of on-time service level changes % of CI’s monitored for performance % of patches applied outside of % of license costs of total research and Conduct culture surveys for standards and % of joint venture research and Time-to-market of new products/services % of leads generated via telemarketing Average customer size Average sales per customer or transaction Data Model Roles Model
STRATEGY ROADMAP

product between/within teams calculated and recorded call maintenance window development cost recognition development financing Channel Map Rules Map
APPLICATION
Channel Matrix Rules Matrix
THE WAY OF WORKING WAY OF WORKING: TACTICAL ASPECT TASKS PURPOSE & GOAL (VALUE) MATRICES
CFO FL/RE O GA ERP 25 CFO VA O GA ERP 18 COO FL O DI ERP 25 CFO RE O GA ERP 25 CHRO FL O HR ERP 23 CRDO RE O BD SCM 25 CMO FO O MS CRM 25 CMO FL O MS ERP 23 CMO FL/RE O MS CRM 25 CIO RE O IT ERP 15 CMO FL O MS CRM 23 CRDO FL O BD ERP 25 CFO FL O OS ERP 23 CIO RE O IT ERP 25 CFO RE O GA ERP 23 COO RO O DI SCM 22 COO FO O OP ERP 25 CRSO/CIO FL/RE O GA NET 24 CIO RE O IT ERP 19 CIO FO O IT NET 8 CIO RO O IT ERP 21 CIO RO O IT ERP 13 CRDO RO O BD ERP 25 CHRO FO O HR ERP 5 CFO RE O GA ERP 16 CHRO FO O HR ERP 13 CMO RE O MS CRM 16 CMO RO O MS CRM 21 CMO FO O MS SCM 21
Data Component
Data Entity Channel Model
What kind of application enables and
automates the value and goal?
Rules Model
Business Role
Process Role
Account payables Account payables Finished goods inventory planning Tax handling Employee administration Product deployment planning Brand assessment and evaluation Customer servicing and contact history Servicing issues tracking Information resource management Servicing issues tracking IP portfolio tracking Asset traceability Infrastructure operations Financial controlling Scheduling planning Product manufacture process Legal audit management Business resilience planning Security solution design Integrated risk management Security, privacy and data protection Plan and develop cost and quality targets Recruit/source candidates Financial controlling Resource scheduling Brand marketing and advertising Customer tracking and checking Sales administration Data Service Application Role
The LEADing Practice Way of Working is critical discipline of translating both strategic planning and effective execution. Structure the Tasks & Services Business, Information and Data Object
Average monetary value of invoices % of invoices disputed Cubic meters per 1,000 packages % of tax statements open longer than 30 Average number of sick days per employee Average time-to-profitability for new # and % of customer perception of company Average number of calls/service requests per % of misrouted calls # of knowledge sharing sessions on brand # of service requests solved on first-line # and % of patents that are due to expire % of fixed asset disposals recorded in the Data center bypass % Average employee costs per incoming Delivery Schedule Adherence (DSA) Finished goods turns (CoGS/average value % coverage of total audit universe Average incident closure duration % of secure information that is accurate % of critical business processes not % of systems covered by % of license income to total research and Identify successor for various positions, and Gross profit % by department/team % of hours spent on research and % of leads generated via trade shows Average lifetime value of customers Average sales revenue per sales person
arrangement of effort and work, by translating the “Way of Thinking” into a structural approach of working. • Analyze CAN, WANT and SHOULD do scenarios outstanding days products/services financing handler identity and company culture appropriate period phone call finished goods) and real-time covered by a defined service availability antivirus/antispyware software development cost have their development plans in place on development
plan time MODELS
• Analyze and benchmark strategies Application Map
The Way of Working organizes, classifies, aligns, arranges, quantifies, recommends and selects objects and or artifacts in the system- • Identify pain chain and goal chain CFO FL O GA ERP 18 CFO FL/RE O GA ERP 18 COO RE O DI ERP 25 CFO RE O GA ERP 25 CHRO FL O HR ERP 23 CRDO VA O BD SCM 16 CMO FO O MS CRM 24 CMO FL O MS ERP 22 CMO FL O MS CRM 23 CHRO FO O HR ERP 16 CMO FL O MS CRM 16 CRDO FL O BD ERP 25 CFO FL O OS ERP 23 CIO RE O IT ERP 25 CFO RE O GA ERP 23 CFO/COO RO O DI ERP 25 CFO FL O GA ERP 23 CRSO/CIO FL/RE O GA NET 24 CIO RE O IT ERP 23 CIO FO O IT ERP 23 CIO RO O IT ERP 22 CIO RO O IT ERP 14 COO FO O OP SCM 16 CHRO FO O HR ERP 18 CFO RO O GA ERP 4 CHRO FO O HR ERP 4 CMO RE O MS CRM 16 CMO RO O MS CRM 16 CMO FO O MS CRM 18 Application Matrix
ized and categorized way they need to be de-composed or composed together. • Define innovation and transformation need
Requirement Matrix OPERATIONAL Account payables Account payables Finished goods inventory planning Tax handling Salary packaging and administration Product deployment planning Brand assessment and evaluation Servicing issues tracking Contact routing Career management Servicing issues tracking Product portfolio planning Asset traceability Infrastructure operations Financial controlling Inventory movement management Financial controlling Legal audit management Business resilience remediation Service level agreements Integrated risk management Security, privacy and data protection Operations budgets Develop and train employees Financial controlling Career planning Brand marketing and advertising Customer relationship management Customer tracking and checking Application Model
• Identify and develop strategic business objectives (SBOs) and Average monetary value of overdue invoices % of invoices requiring special payment Floor space utilization % of taxes paid in-time Average salary per employee New product turn around time # and % of customer perception of ease to Average number of times call agents are Abandon rate of incoming phone calls # of leadership development workshops # of service requests solved within deadline % of ideas that are funded for development % of fixed asset disposals that are recorded Data center floor usage % Average fixed costs per incoming phone Inventory accuracy (in % and #) Maintenance costs as % of manufacturing % implemented OFI's raised in audits Average incident response time % of service levels (in SLA’s) reported in an % of critical infrastructure components % of systems not to policy patch level % of new product/service developments Personal goal achievement Growth against market Investment in training by number of % of leads generated via organic search Customer loyalty index Average spend per customer
LEADING PRACTICE MATRICES critical success factors (CSFs) What specification: Why specification:
Value Matrix
Why specification: Whither specification: Whether specification:
What/Which specification:
What specification:
Requirement #
Who/Whom specification e.g.
Stakeholder/Owner
Where specification e.g. Layer,
Objects, Area (process, service, data,
infrastructure)
What specification:
High Level Requirements
What specification:
Detailed Requirements Key Performance Indicators work with monitored conducted call costs automated way with automated availability monitoring launched on budget customers (SEO)
VALUE & GOAL COMPLIANCE
VALUE & GOAL MEASUREMENT Which requirement and goal needs
Value # Performance Indicator
Driver & Forces (internal/external) Strategy (strategic business objective) Value Driver Goal (business/application/technology) Objective (CSF, plan, forecast, budget) Value Proposition
Whither specification e.g. Core Differentiated,

• Define value expectations and drivers

(Strategic/Tactical/Operationl)
Value Requirement #
(What is required to execute the value creation # Core Competitive or Non-Core aspects

A LEAD Matrix is a representation that accurately shows the relationship between specific decomposed and composed LEAD
process)

CFO FL O GA ERP 18 CFO FL O GA ERP 23 COO FL O DI ERP 25 CFO RE O GA ERP 25 CHRO FL O HR ERP 25 CRDO RE O BD ERP 16 CMO FL O MS CRM 16 CMO FL O MS ERP 23 CMO RE O MS CRM 25 CHRO FO O HR ERP 16 CMO FL O MS CRM 23 CRDO FL O BD ERP 25 CFO RE O OS ERP 23 CIO RE O IT ERP 25 CFO RE O GA ERP 23 COO RO O DI SCM 25 COO FL O OP ERP 23 CRSO/CIO FL/RE O GA NET 25 CIO RO O IT ERP 19 CIO RO O IT ERP 25 CIO RO O IT ERP 7 CIO RO O IT ERP 18 CRDO RO O BD ERP 25 CHRO RE O HR ERP 18 CFO FO O GA ERP 16 COO RE O DI SCM 20 CMO RE O MS CRM 16 CMO RO O MS CRM 16 CMO FO O MS CRM 16 How is the value and goal measured? to be compliant?
Value Owner
Why, in terms of reason specification e.g.

• Develop value guidelines and measurements

(Whom is ultimately responsible for the value #
management lifecycle) #
Business Area & Group Motivation and Drivers for change

Objects. The core idea of a matrix is that it typically consists of aspects of one idea each in a list of row, another idea as a set of
(Which business area and group is the value #
Whither specification e.g.
Account payables Account payables Stock control and governance Tax handling Salary packaging and administration Monitoring and tracking Brand tracking and monitoring Customer servicing and contact history Customer servicing and contact history Career management Servicing issues tracking Product portfolio planning Asset traceability Infrastructure operations Financial controlling Finished goods inventory planning Schedule and perform maintenance Legal audit management Business resilience planning Service level agreements Integrated risk management Security, privacy and data protection Plan and develop cost and quality targets Recruiting policies Financial controlling Transportation planning Brand marketing and advertising Customer tracking and checking Sales strategy and planning
creation process a part of)

• Ensure value reporting and decision flow

Value Requirement
(What is required to execute the value creation # Goal & Objective #

Business and Information Object Information and Data Object

process)
(Business/Application/Technology)

columns and a third as the cross product between the rows and columns. This allows the LEAD Matrix to relate the unfamiliar to the
Value Owner

Average number of outstanding invoices in % of invoices under query Inbound volume received % of overdue tax statements Labor costs for full-time employees as % of Number of change requests per product # of consumer awareness Average talk time of phone calls Answered calls per hour # of managers trained in key processes # of solved service requests % of ideas that are killed % of non-valid changes to the fixed asset Data center recirculation % Average non-employee costs per incoming Inventory replenishment cycle time Rate of material defects caused by the % of past due corrective actions Average number of (re)-assignments of % of service levels (in SLA’s) that are % of outage due to changes (planned % of systems with latest % of research and development cost related Recruitment headcount factor HR controllable cost Delivery vehicle routing and scheduling % of leads generated via paid search (PPC) Customer retention Cross-sell/up-sell lead to pipeline conversion
(Whom is ultimately responsible for the value #
Which expectation specification e.g.

• Identify non-core competencies for cost cutting

management lifecycle)
Business Area & Group #
(Which business area and group is the value # Value/Performance
creation process a part of)
accounts payable per FTE sales development project register phone call material itself incidents actually measured unavailability) antivirus/antispyware signatures to new product development rate Business Perspective
familiar objects in the different layers (composition) usually through the form of a diagram, a table or a chart (e.g. rows and columns), MODELS MODELS
Value Requirement
(What is required to execute the value creation # Whither specification e.g. Core Differentiated,

• Develop strategic policies and guidelines #

process)
Core Competitive or Non-Core aspects

Marketing Channel, Sales Channel,

Value Owner

Business Rule
(Whom is ultimately responsible for the value #

thereby outlining direct connection points and showing a common pattern of the LEAD Objects. Measurement Map Compliance Map
management lifecycle)
Business Area & Group Why, in terms of reason specification e.g.
(Which business area and group is the value # #
Motivation and Drivers for change

Distribution Channel, Service Channel, Service Rule

creation process a part of)

CFO FL O GA ERP 29 CFO FL O GA ERP 26 COO FO O DI ERP 25 CFO RE O GA ERP 25 CHRO FL O HR ERP 25 CRDO FO O BD ERP 16 CMO FO O MS CRM 25 CMO RE O MS ERP 24 CMO FL O MS CRM 23 CHRO FO O HR ERP 16 CMO FL O MS CRM 16 CRDO RE O BD ERP 25 CFO RE O OS ERP 25 CIO FO O IT ERP 23 CFO RE O GA ERP 23 COO RE O DI SCM 22 COO FL O OP ERP 23 CRSO/CIO FL/RE O GA NET 25 CIO RE O IT ERP 20 CIO RO O IT ERP 25 CIO RO O IT ERP 7 CIO RO O IT ERP 18 CRDO RO O BD ERP 25 CHRO RE O HR ERP 18 CFO FO O GA ERP 16 COO RE O DI ERP 2 CMO FO O MS CRM 24 CMO RO O MS CRM 2 CMO FO O MS CRM 16
Value Requirement

Measurement Matrix Compliance Matrix

(What is required to execute the value creation #
process)
Whither specification e.g.
Value Owner Goal & Objective #

Channel Partner Process Rule

(Whom is ultimately responsible for the value #
(Business/Application/Technology)
Account payables Account payables Finished goods inventory planning Tax handling Salary packaging and administration Product concepts planning Brand assessment and evaluation Customer servicing and contact history Customer servicing and contact history Career management Servicing issues tracking IP portfolio tracking Asset traceability Data and content management Financial controlling Scheduling planning Demand planning and forecasting Policy management Business resilience planning Service level agreements Integrated risk management Security, privacy and data protection Plan and develop cost and quality targets Manage preplacement verification Financial controlling Distribution planning and forecasting Brand marketing and advertising Customer account plans and strategy Leads management
management lifecycle)

LEADING PRACTICE METHODS Reporting Model Compliance Model

Business Area & Group
(Which business area and group is the value #
Which expectation specification e.g.
creation process a part of) #

Application Rule
Value Requirement Value/Performance
Account payable invoicing processing costs % of payable invoices without purchase Inventory location accuracy Average error response time Labor costs for part-time employees as % of Ratio of number of concepts to actual # of customer perception of hidden or Average wrap-up time Average hold time of calls Monthly 1-on-1 coaching for each Average number of calls/service requests per % of new patents as leading edge on % of recorded fixed asset disposals that Data duplication ratio Average variable costs per incoming Missed Deliveries per Million (MPM) Ratio of actual capacity to rated capacity % of policies reported with Improve IT disaster recovery plan % of SLA breaches caused by % of outage due to incidents (unplanned % of virus incidents requiring manual % of research and development cost related Recruitment resignation factor HR related operating cost (HR controllable Distribution resource planning % of people remembering message Customers per employee Lead to pipeline conversion rate of existing
(What is required to execute the value creation #
process)
Value Owner
Whither specification e.g. Core Differentiated,
(Whom is ultimately responsible for the value # #
order sales products indirect costs GM/Director/Manager handler competitors represent actual disposals phone call non-conformances underpinning contracts unavailability) cleanup to product improvements and extensions cost by headcount) customers Technology Perspective Data Rule
management lifecycle) Core Competitive or Non-Core aspects
Business Area & Group

The Way of Working is where one defines the best suitable method that will help the practitioner to ensure integrity, accuracy and
(Which business area and group is the value #
creation process a part of)
Why, in terms of reason specification e.g.
#

Communication Channel
Value Requirement
Motivation and Drivers for change
Platform Rule
(What is required to execute the value creation #
process)

completeness of each particular task. The LEADing Practice methods are therefore a series of phases with a collection of activities that
Value Owner
(Whom is ultimately responsible for the value # Whither specification e.g.

Digital Image/Screen Channel Infrastructure Rule

management lifecycle)
Goal & Objective #

CFO FL O GA ERP 18 CFO FL O GA ERP 18 COO FL O DI ERP 25 CFO RE O GA ERP 25 CFO FL O GA ERP 23 CMO RE O BD SCM 25 CMO FO O MS CRM 25 CMO FL O MS ERP 24 CMO RE O MS CRM 25 CHRO FO O HR ERP 16 CMO FL O MS CRM 16 CRDO FL O BD ERP 25 CFO FL O OS ERP 16 CIO FL O IT ERP 18 CFO RO O GA ERP 16 COO RO O OP SCM 23 COO FL O OP ERP 26 CPO/CIO FL O OP ERP 26 CIO RE O IT ERP 19 CIO RE O IT ERP 8 CIO RE/RO O IT ERP 16 CIO RO O IT ERP 18 CRDO RO O BD ERP 25 CHRO FO O HR ERP 13 CFO FO O GA ERP 16 COO RE O DI SCM 15 CMO FO O MS CRM 24 CMO RE O MS CRM 15 CMO RO O MS CRM 23
Business Area & Group
(Which business area and group is the value # (Business/Application/Technology)

the user of the methods needs to follow and undertake in order to reach a specific goal. There can be multiple methods applied to
creation process a part of)

Which expectation specification e.g.

Programming Channel Security Rule

#
Value/Performance
Account payables Account payables Inventory movement management Tax handling Financial controlling Product deployment planning Brand assessment and evaluation Customer servicing and contact history Servicing issues tracking Learning management Servicing issues tracking Research plan Asset traceability Data and content management Financial controlling Supply network planning Manage master production schedule Procurement monitoring and reporting Business resilience planning Service level agreements Integrated risk management Security, privacy and data protection Plan and develop cost and quality targets Employee appraisal Financial controlling Operate outbound transportation Brand marketing and advertising Customer account governance Market tracking
one Way of Thinking. Average value of outstanding invoices in % of one-time vendor payments Number of line items picked Average overdue time of tax statement filing Average telephone/communication costs per Time-to-market of changes to existing Customer perception of product or service Contact frequency Average number of calls to resolve Number of cross-training sessions Average overdue time of overdue service % of research and development financing by Accuracy of recorded fixed assets Potential double customers in master data Cost of operating call center/service desk Number of active suppliers per supply Ratio of actual input required to produce % of procurements in compliance with Mean time to detect (MTTD) % of SLA’s requiring changes % of service desk availabilty Cost of cleanup of virus/spyware incidents % of research and development resources by Value added per employee HR related operating cost (HR controllable Electronic links for communication with % of people understanding message Response rate Market share % Broadcasting Channel, I/O
accounts payable per FTE employee products/services availability issue/problem requests third party employee one unit of output standing procurement policies and total resources cost by labour cost) carriers Channel, Audio Channel
A LEADing Practice method structures the practitioner’s way of working within a specific area with supporting techniques, tools, procedures
Laws
principles, rules, procedures and practices. CFO VA O GA ERP 21 CFO FL O GA ERP 18 COO FO O DI ERP 16 CFO RE O GA ERP 25 CFO FL O HR ERP 23 CMO RE O BD SCM 25 CMO FO O MS CRM 25 CMO FL O MS ERP 22 CMO RE O MS CRM 23 CHRO FO O HR ERP 29 CMO RE O MS CRM 16 CRDO FL O BD ERP 25 CFO FL O OS ERP 29 CIO RO O IT ERP 25 CFO RO O GA ERP 16 COO FO O DI SRM 16 COO FL O OP ERP 5 CRSO/CIO RE O GA NET 24 CIO RE O IT ERP 23 CIO RE O IT ERP 25 CIO RO O IT ERP 7 CIO FL/RO O IT ERP 18 CMO FO O MS CRM 21 CHRO RE O HR ERP 4 CFO FO O GA ERP 16 COO RE O DI SCM 15 CMO RE O MS CRM 13 CMO RE O MS CRM 15 CMO RE O MS CRM 22 Critical Success Factor Policies
Account payables Account payables Stock control and governance Tax handling Financial controlling Product deployment planning Brand assessment and evaluation Customer servicing and contact history Contact routing Career management Contact routing Research plan Asset traceability Security, privacy and data protection Financial controlling Order processing Manage master production schedule Legal audit management Business resilience remediation Service level agreements Integrated risk management Security, privacy and data protection Sales evaluation and audits Learning management Financial controlling Operate outbound transportation Sales evaluation and audits Customer history management Customer prospect assessment and evaluation Business Performance Indicator Guidelines
Cost per accounts payable invoice % of overdue invoices Number of receiving errors Average overdue time of tax statement Average travel costs per employee Time-to-market of new products/services Customer perception of quality of outputs Phone occupancy rate Average number of incidents handled by Source best practice leadership programmes Improve responsiveness to customer % of research and development projects Accuracy of recording of acquired fixed Ratio of cost of materialized and prevented Cost per minute of handle time Perfect order measure/fulfillment Ratio of actual to projected unit Corrective action response time Mean time to repair (MTTR) % of SLA’s without service level breaches % of unplanned outage/unavailability due Distribution cycle of patches % of sales due to launched products/services Investment in new product support and Sales generated by department/team Electronic links for delivery advice Conversion rate of marketing/sales Response time Monitor customer behaviour pattern Business KPI’s Standards
payment each first line operatives and recommendation to CEO requests and inquiries involving customers assets IT incidents production costs to changes training information campaigns
Service Level Agreement Regulations
Process Performance Indicator Governance
= Business Layer Component
CFO RE O GA ERP 18 CFO FL O GA ERP 18 CFO/COO RE O DI ERP 25 CFO RO O GA ERP 2 CFO FO O GA ERP 5 CRDO FL O BD ERP 23 CMO FO O MS CRM 16 CMO RE O MS ERP 23 CMO RE O MS CRM 23 CHRO FL O HR ERP 16 CMO FL O MS ERP 16 CRDO FL O BD ERP 25 CFO FL O OS ERP 14 CIO RO O IT ERP 25 CFO RO O GA ERP 13 COO RO O OP SCM 25 COO FO O OP ERP 25 CRSO/CIO RE O GA NET 24 CIO RE O IT ERP 18 CIO RO O IT ERP 25 CIO RO O IT ERP 7 CIO RE/RO O IT ERP 18 CCO FO O MS SCM 21 CHRO RE O HR ERP 13 CFO FO O GA ERP 25 CFO RE O GA ERP 16 CMO FO O MS CRM 16 CFO/CMO FO O GA CRM 25 CMO RE O MS CRM 24 System Measures Controls
Application Component Risk Management Stewardship
Account payables Account payables Warehouse tracking and monitoring Tax handling Financial controlling IP creation support environment Brand assessment and evaluation Servicing issues tracking Customer servicing and contact history Employee administration Customer service strategy and planning Research plan Asset traceability Security, privacy and data protection Financial controlling Safety stock planning Schedule and perform maintenance Legal audit management Business resilience planning Service level agreements Integrated risk management Security, privacy and data protection Design evaluation Learning management Financial controlling Financial controlling Brand marketing and advertising Financial controlling Customer tracking and checking Value Measurement Application Module
Creditor days Credit analysis costs as a % of revenue Number of return warehouse expense Amount of taxes handled per tax FTE Employee benefit costs as % of labor costs Average application time for patents Customer perception of reliability Maximum call hold Average speed to answer phone call Training hours per employee Costs of operating call center/service desk % of research and development projects Accuracy of changes to the fixed asset Ratio of IT management costs and Ratio direct versus indirect costs per Size of safety stock Work-In-Progress turns (CoGS/average Effectiveness of internal audits Ratio of number of incidents versus Average penalty costs per SLA Availability (excluding planned downtime) Latency of unapplied patches % of sales revenue via partner/channel Training hours ratio Sales growth rate Research and development expense Lead to closed sales opportunity won Annual sales per customers New customer retention rate = Application Layer Component Performance Measurement Audit & Evaluations
ANALYZE DESIGN BUILD DEPLOY/IMPLEMENT RUN/MAINTAIN CONTINUOUS IMPROVEMENT
THE WAY OF GOVERNANCE Project preparation and blueprint Realization Final preparation Go live Governance Optimize and develop involving pre-competitive research with
competing companies
register prevented IT incidents costs incoming phone call value WIP) number of problems conversion rate
Service Measurement
Application Feature
Application Function
Security
Monitoring
= Technology Layer Component Application Task
The LEADing Practice Way of Value Governance, derived from the Greek verb [kubernáo], which means to steer, is essentially the act STRATEGIC BUSINESS OBJECTIVES BUSINESS OBJECTIVES ALIGNMENT KEY PERFORMANCE INDICATOR MEASUREMENTS SETUP & INITIATION VALUE & PERFORMANCE MEASUREMENTS CFO RE O GA ERP 29 CFO RE O GA ERP 18 COO FL O DI ERP 25 CFO RE O GA ERP 25 CFO FO O GA ERP 25 CRDO FO O BD ERP 9 CMO RO O MS CRM 4 CMO FL O MS ERP 22 CMO RE O MS CRM 23 CHRO FO O HR ERP 7 COO RE O IT ERP 11 CRDO FL O BD ERP 25 CFO RE O OS ERP 14 CIO RE O IT ERP 27 CFO RO O GA ERP 24 COO RO O OP SCM 25 COO RE O OP ERP 25 CRSO/CIO RE O GA NET 24 CFO/CIO RO O IT ERP 18 CIO RE O IT ERP 17 CIO RE O IT ERP 10 CIO RE/RO O IT ERP 28 CRDO RE O BD ERP 24 CFO RO O GA ERP 25 CFO RE O GA ERP 25 CFO RE O GA ERP 16 CMO FO O MS CRM 13 CFO/CMO RE O GA CRM 16 CMO FO O MS CRM 25
Application Service
Account payables Account payables Stock control and governance Tax handling Financial controlling Research tracking Brand tracking and monitoring Servicing issues tracking Contact routing Employee appraisal Enterprise Architecture Research plan Asset maintenance Information management planning Financial controlling Inventory supply schedule Manage master production schedule Legal audit management Financial management Integrated risk management Integrated risk management Security, privacy and data protection Plan and develop cost and quality targets Financial controlling Financial controlling Financial controlling Leads management Financial controlling Sales processing/execution
of governing what already exists, or is in the process of getting developed/deployed.
Early pay discounts Cycle time to resolve an invoice error Stored items per employee Cost of tax penalties Employee benefit costs as % of labor costs Number of collected ideas that were Growth sustainability rate of brand Maximum call length First-call resolution rate Compliance survey for 1-on-1’s completed Better balance between standard and % of research and development projects Age of assets % of services not covered in IT disaster Ratio employee costs versus Supply chain cycle time Internal cycle time receipt of material to Recurring audit finding instances Average cost to solve a problem Change in "Residual Risk" Critical-time failures Security vulnerability density per 1,000 Average development costs per new product % actual vs. estimated savings Total labour cost Research and development expense by total Lead to pipeline conversion rate Customer service expense per year Sell-through % = Decomposition Component
VX BA VX BA VX BA VX VX for full-time employees developed further with recommendations to each facility customized applications involving universities/research institutes recovery and continuity plan non-employee costs per incoming phone GRN/MRR lines of code expenses
The Way of Value Governance relates to decisions and guidance that define expectations and direction, grant power, or verify and call
ensure value identification and creation. It consists of value governance within the entire value lifecycle in terms of value analysis, = Composition Component
CFO FL/RE O GA ERP 14 CFO FL O GA ERP 16 COO FO O DI ERP 25 CFO FL O GA ERP 25 CFO FL O GA ERP 23 CRDO FO O BD ERP 16 CMO RO O MS CRM 14 CMO RE O MS ERP 23 CMO RE O MS CRM 19 CFO FO O GA ERP 5 CRSO RO O IT ERP 17 CRDO FO O BD ERP 16 CFO RE O OS ERP 14 CEHO RO O OS ERP 21 CFO RO O GA ERP 24 CFO RE O GA ERP 16 CEHO RO O OS ERP 25 CRSO/CIO RE O GA NET 25 CFO/CIO RO O IT ERP 18 CIO RE O IT ERP 25 CIO RE O IT ERP 10 CFO FO O OS ERP 5 CRDO RE O BD ERP 25 CFO FO O GA ERP 25 CFO RE O GA ERP 25 CFO RE O GA ERP 25 COO RE O DI CRM 13 CPO RE O OP SRM 25 CFO/COO RE O DI SCM 25
value design, value implementation and run, monitor ones value as well as the continuous improvement disciplines. The Way of CRITICAL SUCCESS FACTORS SOLUTION PLANNING PROCESS PERFORMANCE INDICATOR SOLUTION PROJECT PLAN SIGN OFF EVALUATION & REPORTING DECISION MAKING IMPROVEMENT
Account payables Account payables Warehouse tracking and monitoring Financial controlling Financial controlling Product concepts planning Brand assessment and evaluation Servicing issues tracking Servicing issues tracking Value and performance management Integrated risk management Prototyping and trials Asset traceability EHS regulations and compliance Financial controlling Account receivables EHS audit and control Legal and case processing Financial management Service level agreements Integrated risk management Development planning Plan and develop cost and quality targets Cost accounting Financial controlling Financial controlling Order tracking Procurement evaluation Transportation administration
Governance also includes the relationships among the many players in the mentioned phases to ensure that each phase and task Figure 11: Value Decomposition & Composition model.
Monetary value of invoices outstanding Invoicing processing costs Warehouse productivity level Revenue won/lost due to exchange rates as a Revenue per employee (or FTE) Number of collected ideas that were # of negative media coverages Maximum delay in queue Resolution time of complaints Audit financial ratio of partnership Improve risk protection and management Average prototyping speed Depreciation to fixed assets ratio % of energy used from renewable sources Ratio fixed versus variable costs per Cash to cash cycle time % of hazardous operational waste Time to respond to legal discovery of Average cost to solve an incident Deviation of planned budget for SLA Critical-time outage % of new service developments launched Research and development costs as Training cost headcount factor Total overtime cost Research and development resources by Cycle time of purchase order Purchase price variance Total transport cost as % of delivered sales
enable the specific value identification, creation and realization in achieving the outlined goals. VX BA VX BA PX SX IX VX BA VX BA PX SX IX VX BA VX BA PX SX IX % of total revenue implemented incoming phone call records on budget percentage of total costs total resources

Value governance involves therefore setting standards and priorities for the various relevant innovation and or transformation efforts
e.g. ITIL, COBIT, BPM etc. A part of this is identifying value governance leaders and defining value experts within the various projects, SOLUTION ANALYSIS & SCOPING SOLUTION DESIGN SOLUTION BUILD SOLUTION DEPLOYMENT SOLUTION GOVERNANCE CONTINUOUS SOLUTION IMPROVEMENT

all to improve the value innovation and transformation strategies. The ultimate goal of both business governance and value govern- 1 2 3 4 5
ance is to both to control an organization’s defined strategies and goals. VX BA VX BA PX SX IX VX BA PX SX IX VX BA PX SX IX VX BA PX SX IX VX BA PX SX IX
THE WAY OF MODELLING CLASSIFICATION AND ANATOMY OF THE KEY PERFORMANCE INDICATOR’S CODE BAR HOW A KEY PERFORMANCE INDICATOR (KPI) ATTACHES TO AN OPERATIONAL BUSINESS COMPETENCY VALUE-BASED COSTING
As a part of the continuous improvement concept the value governance steps includes the establishment of internal Value or Trans-
formation Centers of excellence or competency centers. Their goal is among others to share value-improvement and standards,
The LEADing Practice Way of Modelling is the approach the Value eXpert or Value Architect follows in
1 2 3 4 6 8 3 BUSINESS MODEL LEVEL 5 OPERATIONAL BUSINESS COMPETENCY 7 PERFORMANCE & VALUE MEASUREMENTS 8 VALUE-BASED SERVICE DESIGN 9 GOAL/VALUE-BASED PROCESS DESIGN SUPPORTING SERVICE
OPERATIONAL BUSINESS COMPETENCIES Value-based Costing (VBC) is a LEADing Practice performance and expenses related to resources NVESTIGA NO
E IN VATI
VALUE PHASES

EI LU
Value Needs & Wants order to define the value modelling principles to make an objective assessment of the possible. It also The business model level characterizes the scope of decision-making. Strategic decisions focus primarily upon overall strategy, business Business competencies can be categorized as either core differentiating compe- principle is hardly understood by most enterprise architects using today’s enter- Business measurements in terms of performance and value are the formal, tions to periodically set their SBO’s and CSF’s with linked operational measure- Many organizations realize that traditional process design does not consider the value aspects of one's organization. Too sadly, there are two huge enter- An operational business model contains the structural overview of the operational concept that is based on the innovating and supplied to the company to the activities
Innovating and transforming one’s Service

TI

ON
VA
VAL
having applied best practices in none value creating areas and leading practice in the areas that are core differentiating and core

ON
Input to Business Case Gate 1 Gate 2 Input to ROI Gate 3 Input to TCO Gate 4 Gate 5
INNOVATION & TRANSFORMATION VALUE IDENTIFICATION VALUE INNOVATION VALUE CREATION VALUE REALIZATION VALUE GOVERNANCE provides a uniform and formal description of the model objects and artifacts within one or more planning, forecasting, budgeting, direction and value management, while tactical decisions are mainly about governance, monitoring, tencies, core competitive competencies or non-core competencies. The identifi- prise modelling techniques, and remains to be the single source for cost and information-based routines and procedures that managers (performance) and ments (KPI’s and PPI’s) to provide input and feedback to decision makers in the Model to increase customer satisfaction and prise modelling mistakes we encounter in most organizations: business competencies of an enterprise, a business unit, or even a specific Line of cutting-edge practices that leaders and outper- performed within the company. In terms of the
competitive in order to spread awareness of the value standards and priorities throughout the organization. Value governance also

VA L

ON
1.0 General Administration 2.0 Human Resource Management 3.0 Information Technology

VA

CE
VA

N
REQUIREMENTS U

CHRO FO O HR ERP 29 9
E UE

VA

N
1) Implementing Best Practice concepts where LEADing Practices should have been applied.

VA

G
LU

IO
executives (value) use to maintain and/or alter patterns within organizational direc-
LU
progress of moving towards the previously defined strategic, tactical, and opera-

TI
different types of models by using value decomposition and composition modelling techniques control, and managing business operations. Operational decisions address the processing, delivery and execution of specific operations: cation of this competency categorization can help an organization to identify value difficulties today, and thereby TCO and ROI challenges. The operational Business (LOB) within a company. formers in today’s business markets execute. VBC LEAD Way of Modelling, organizations using this
N O E

L
CA T
loyalty as well as to increase competitive G OVE RNA

N
NI E C R E ATI

L
ID E
3 4 4 6 6 N TIFI E PLAN R E ALIZ A
works on monitor and document both the successes and shortcomings of an organization’s operational execution of the value drivers
VX VX VX VX BA VX BA within the different layers (e.g. business, application and technology). S = Strategic T = Tactical O = Operational where LEADing Practices and Value Management needs to be applied, and business competencies are not only the interlink which connect business mea- tion, services and/or activities. A typical business measurement helps organiza- tional goals and objectives. advantage is for many organizations the value 2) Applying optimization principles where innovation principles should have been applied. aims to maximize the value adding business com- approach receives great insight into profitable
defined in ones organization. 5 Talent management 1.1 Strategic Planning 2.1 Organizational Planning 3.1 IT Strategy & Planning Degree of Change: Degree of Change: Degree of Change: Fit Gap & Root Cause Analysis (Needs & Wants)
VX BA where Best Practices and Performance Management needs to be applied. Such a surements, reporting and a company's activities; they represent an invaluable creating and realization aspects that they need The operational business model, and thereby its operational competencies, is an petencies, services and activities while minimiz- and profitless activities based on a customer or a High Medium/High Low/Medium & Performance & Value Expectations

Performance Needs & Wants The Value eXpert and Value Architect has to be able to translate the “Way of Working” into a “Way of categorization is vital in order to know where one can standardize to improve the source, when automating them in systems, and furthermore when innovating and PERFORMANCE & VALUE MEASUREMENT TEMPLATE in order to differentiate in the market. Both of these mistakes result in destroying value where value should have bears fruit when there is a connection not only between the value drivers 1.1.1 Business vision 1.1.5 Alliance management 2.1.1 Organization structure 2.1.5 Resource scheduling 3.1.1 IT strategy 3.1.5 Strategic development invaluable tool when developing KPI’s for processes. It enables the management to ing, or entirely eliminating, non-value adding product point of view. VBC links performance and
In Value Management an additional purpose of governance is to assure that value expectations (on behalf of others in terms of stake- Candidate acceptance ratio ANALYZE DESIGN BUILD IMPLEMENT RUN/MAINTAIN CONTINUOUS IMPROVEMENT

Modelling”, which mostly include: BUSINESS COMPETENCY SYSTEM MEASUREMENTS operating model, cut cost and increase the performance, and where to innovate transforming one’s performance, operating, cost, service, revenue, and/or value been identified, created, and realized. Executives that ask themselves what it (SBO’s and CSF’s) and performance drivers (KPI’s & PPI’s), but also how the focus on creating business value, optimize processes and even gain a competitive aspects. In terms of the LEAD Way of Thinking expenses related to resources supplied to the
holders) that an organization produces the defined pattern of good results while avoiding an undesirable pattern of bad circum-
• Expressiveness • Arbitrariness • Suitability • Comprehensibility
7 VIEW
GOAL & OBJECTIVE VIEW DECISION MAKING VIEW
VIEW
PROCESS VIEW MEASUREMENTS VIEW
to improve the service, revenue and value model of one's organization. This model.
1 INDICATOR 2 INDICATOR NUMBER 3 DEFINITION
Business service types reflect what kind of takes to move from traditional process design to value-based process organization applies them to their competencies, processes, and activities.
1.1.2 Business plans 1.1.6 Business architecture 2.1.2 Workforce planning 2.1.6 Organization charting 3.1.2 Portfolio planning 3.1.6 Business requirements
advantage on both the strategic, tactical and operational business level. It is there- with VBC, the overall objective is to use and company to the activities performed within the
Collect inputs into your
specific value driven costing
GO/
NO GO Define specific concepts
GO/
NO GO
GO/
NO GO Execute the service flow Supporting VDC
Value Management
stances. Therefore, the value governance and continuous improvement process and systems are typically administered by a value VALUE MOTIVATION VALUE PLANNING VALUE MOTIVATION
Candidate Acceptance Ratio Measures the share of accepted candidates in the overall number of proposed candidates
frameworks implementation plan
• Coherence • Completeness • Efficiency • Effectiveness service is provided to one (or more) services, design have to consider the role that value plays in their processes, and also The LEADing Practice Value-based Process Design links these factors and 1.1.3 Business strategy 1.1.7 Business forecast 2.1.3 Project resource planning 2.1.7 Organization service model 3.1.3 Enterprise architecture 3.1.7 Service strategy fore a powerful combination when changing existing business strategies, and when improve the core competitive and core differenti- company.
audit and value quality gates throughout the value lifecycle. 2 Consider organization’s
Define the strategic concepts
Execute the VDC Provide input organization’s

Figure 1: LEADing Practice Key Performance Indicator (KPI) code bar. Mission SBO Decision Making of Scorecards Management Process of Strategic KPI’s & PPI’s
Candidate Acceptance: Proposed candidates that are formally accepted by a customer and consumed by another. By linking the how and where to increase this value. Too few enterprise modelling enables full value identification, planning, creation, and governance: creating new business strategies. ating competencies, and thereby value aspects of unique situation implementation approach strategy and planning

VX BA VX VX BA Executives Executives BUSINESS TECHNOLOGY

LEADING PRACTICE MODELS service types and the service flow to one’s experts/architects realize that the ability to develop and achieve value only 1.1.4 Define target strategies (SBO’s) 1.1.8 Value and performance management 2.1.4 Career planning 2.1.8 Organization forecasts 3.1.4 Technology innovation and strategy 3.1.8 Information management strategy an organization, when securing and improving In the context of LEADing Practice modelling
To sadly we see that value governance is too often overseen by teams made up of both business and IT professionals. The daily value Vision BPI Identify value driven costing
stakeholders
Initiate communication with
VDC stakeholders
Launch release
communications
Provide input into service
improvement
The LEADing Practice value model is a representation that graphically shows the value relationship C-LEVEL STRATEGY MAPPING Main Process 4 PERFORMANCE INDICATOR CATEGORY value drivers (SBO’s and CSF’s) as well as one’s market position. principles, VBC will be used and applied in the
governance within projects should consists of assuring, on behalf of those governed, the desired business innovation, transformation
and the interconnection of specific composed objects and complies with a specific set of rules for
1 Strategy BUSINESS MODEL DOMAIN BUSINESS COMPETENCIES TECHNOLOGY STANDARDS performance drivers (KPI’s), organizations can 1.2 Legal & Regulatory Affairs 2.2 Recruitment 3.2 Deployment course of developmental changes through which
The C-level mapping identifies for each C-level executive the unique and

STRATEGIC
CRITICAL SUCCESS FACTOR
and value creation while avoiding an undesirable pattern of high cost, ineffectiveness and inefficiency (low performance). Value Supporting Process
Investigate organization value Verify value needs & wants Provide input into process

VALUE
On-going communications
5 KEY PERFORMANCE INDICATOR (KPI) 6 PROCESS PERFORMANCE INDICATOR (PPI) driven costing needs & wants against strategic concepts workflow improvement
VALUE INVESTIGATION PERFORMANCE MANAGEMENT what the graphical components mean, and how they are connected to the rest of the business. The different value and/or performance drivers. The management of an organiza- Strategic Business Planning enable value-based Service Modelling. Strengthen Innovation In terms of the LEAD Way of Working, it draws on the value areas, subjects, products or services
governance within a project should also consists of the set of governance gates and thereby value audit milestones within the lifecy- • Revenue Model Core Differentiating Competencies LEADing Practice
1.2.1 Legal audit management 1.2.5 Regulatory planning 2.2.1 Talent management 2.2.5 Manage preplacement verification 3.2.1 Deployment planning 3.2.5 Change implementation
1
Degree of Change: Degree of Change: Degree of Change:
5 key ideal of a value model is that it is a representation, an illustration, of a composition of information tion's c-level value and/or performance drivers is one of the most challenging Financial Operational Time Cost Quality Volume Efficiency both: changes as it passes during its lifetime, from its Apply process to VDC Re-evaluate value planning,
cle that ensures quality and value aspects within the various phases and tasks. High Medium Low Forecast • Value Model • Goal is competitive advantage • Invest to differentiate 5%
Analyze services for VDC
implementation framework creation, realization and

VX BA VX BA
intended to represent an aspect of an enterprise (e.g. business, application and/or technology), using tasks; there is a general need for knowing exactly which strategy, perfor- • Focus on innovation and efficiency • Diversify between business units The following service types are used for the STRATEGIC BUSINESS OBJECTIVE 1.2.2 Business risk assessment 1.2.6 Legal advice 2.2.2 Application tracking 2.2.6 Manage new hire/re-hire 3.2.2 Release planning 3.2.6 Transformation 1. Value Drivers, as a major source of value definition, value identification, value plan- Analyze activities within a
governance

SERVICE PLANNING
a specific set of rules, which express a logic or grammar. Based on already acquired information from Budget X X information, and focuses on: ning, value innovation, value creation, value
mance and/or investments to prioritize in order to realize the most possible identification and the linkage to value and Improve Competitiveness service

either a value map or a value matrix (or both), a value model is usually crafted to enable complex infor- • Service Model Core Competitive Competencies Industry Best Practice performance drivers: 1.2.3 Legal and case processing 1.2.7 Policy management 2.2.3 Recruit/source candidates 2.2.7 Job posting 3.2.3 Release implementation 3.2.7 Implementation strategy a) strategic linkage; realization and thereby existence to the possible
Continuous Value Improvement value for the business. Value & Performance Mgt.
7 RATIONALE 8 TARGET GROUP(S) CHRO FO O HR ERP 29 Evaluate resource allocation
mation to be communicated more easily to stakeholders, management and leadership within their • Performance Model • Goal is competitive parity • Invest in industry standard functionality 15% b) improving value management; value governance and improvements. model
Business Innovation & Business Innovation & Business Innovation & Talent management
Business Innovation & Transformation Transition (Build & Deploy) • Focus on efficiency and effectiveness • Replicate across business units Measures the efficiency of the candidate selection Top Management KEY PERFORMANCE INDICATOR KEY PERFORMANCE INDICATOR KEY PERFORMANCE INDICATOR 1.2.4 Legal and management consolidation 1.2.8 Legal standards 2.2.4 Screen and select candidates 2.2.8 Recruiting policies 3.2.4 Change planning and control 3.2.8 Technology implementation
Transformation Strategy Transformation Design Transformation Governance domain through the use of a more detailed, graphical illustration and/or depiction. A candidate set of categories might be as follows: Administration CSF Decision Making of Dashboards Management Process of Tactical KPI’s & PPI’s
Strategic Service Types: STRATEGIC LEVEL TACTICAL LEVEL OPERATIONAL LEVEL c) creating value measures; Analyze cost management
Managers Managers Candidate acceptance ratio process
CBDO = Chief Business CMO = Chief Marketing & Sales Control & Monitoring • Cost Model Non-Core Competencies Standard Best Practice Enables decisions on necessary actions concerning the resource request process Recruiting Managers 1 = Strategy Business Responsible: CMO/COO Business Responsible: CMO Business Responsible: CRDO
d) improving revenue; and Value-based Costing is therefore applied in the
1.3 Information Analysis 2.3 Administration 3.3 IT Business Management
• Identify business drivers (external and internal) • Align and define business objectives (CSF’s) with • Create and prepare balanced scorecards, dashboards • Initiate value measurements linked to SBO’s and • Perform value measurements against value • Defines value innovation and transformation The LEAD fully integrated and standardized value templates enables the practitioner to work and Development Officer Officer Evaluation & Reports
Main Process • Operating Model • Goal is to meet market standards • “Out of the box” functionality - differentiation adds no value
80% 2 = Plan Business Model Imperative: Responsive/Focused Business Model Imperative: Responsive Business Model Imperative: Flexible e) producing enhanced value aspects in entire Value Lifecycle phases:
model with the objects throughout all the aspects of the enterprise (business, application and tech- • Focus on effectiveness and efficiency • Standardize across business units 9 CALCULATION 10 PROCESS CONTACT 11 APPLICATION CONTACT 12 DATA CONTACT
Business Level: Strategic Business Level: Tactical Business Level: Operational
1.3.1 Financial reporting 1.3.5 Operations reporting 2.3.1 Employee administration 2.3.5 Career management 3.3.1 Financial management 3.3.5 Testing and regression testing services and products. 1. Value Identification, this is the phase where
• Identify and analyze value drivers business strategy and goals (SBO’s) and cockpits CSF’s expectations (targets) • Continuously re-align and optimize value CCO = Chief Channel Officer COO = Chief Operations Officer 3 = Forecast Formulate phased Specific design for the value Tailor and develop the Deployment Quality VDC Governance Performance Management

COST
Supporting Process Business Competency Area: Operations Business Competency Area: Marketing, Sales & Service Business Competency Area: Business Development
Figure 9: LEADing Practice KPI. implementation approach driven costing framework VDC solution Assurance and Control
• Identify and analyze performance drivers • Align value drivers to business strategy • Setup and prepare value measures and reporting • Set up value reporting in scorecards and dashboards • Perform performance measurements against value expectations against value drivers Tactical Operational Plan
• Identify value stakeholders • Align and define performance indicators (KPI’s) with • Setup and prepare performance measures and • Initiate performance measurements within KPI’s, PPI’s expectations (targets) • Continuously re-align and optimize performance nology). Not only are the objects governed by its connection value modelling rules, but how and CEO = Chief Executive Officer CPO = Chief Procurement Officer Divide number of accepted candidates by overall number of proposed candidates Process contact name Application contact name Data contact name 4 = Value Management Operational Business Competency: Product/service manufac. proc. Operational Business Competency: Competitive response planning Operational Business Competency: Product portfolio planning
one explores, analysis, collects, captures, Design strategy for value Build the value driven costing
**Consult the VDC support
team
Review lessons
learned/feedback
VALUE TASKS

Solution Area: PLM Solution Area: CRM Solution Area: ERP Conduct training
1.3.2 Product and service cost reporting 1.3.6 Staff reporting 2.3.2 Employee transfer 2.3.6 Employee profiling 3.3.2 IT HR management 3.3.6 Change control driven costing artifacts and assets
• Identify performance stakeholders business objectives (CSF’s) reporting and SPI’s • Continuously deliver value reporting to value expectations against performance drivers where the value templates interlink and share common objects is defined and standardized. There- CEHO = Chief Environment & Health CSO = Chief Strategy Officer Policies, Rules & Guidelines 5 = Budget Improve quality of products and services Number of trends matched to buying patterns % of ideas that are funded for development
The objective is to innovate and transform an assesses, clarifies, appraises, evaluates, Examine possible
solutions/concepts
• Define business strategy and goals (SBO’s) on • Define value expectations • Initiate value stakeholders and ownership • Set up performance reporting in dashboards and stakeholders • Identify and re-align value organization to meet Link with other financial Assess value realized from
behalf of the identified business drivers • Define performance expectations • Initiate performance stakeholders and ownership cockpits • Continuously deliver performance reporting to new and/or unexpected value opportunities fore, a value matrix is the continuity of and interconnection between a value map (a representation of Officer CTO = Chief Technology Officer Measurements Figure 3: How cost and value relate to business competencies and technology standards.
13 DRILL-DOWN DIMENSIONS 14 PROCESS(ES) ACTIVITY MEASURED 15 SOURCE(S): Application Function, Task or Service
1.3.3 Sales and marketing reporting 1.3.7 Evaluation and analysis 2.3.3 Skills management 2.3.7 Organizational guidelines and standards 3.3.3 Performance and value evaluation 3.3.7 Program management
organization’s revenue, service and value model examines and then plans accordingly. Select the organizational Build the value driven costing Launch standardized management processes operations
Formulate value case based solution and approach phases and steps processes (ie. forecasting)
• Identify value opportunities within the business • Align identified value opportunities with business • Enable decision making with interlinking operational performance stakeholders • Identify and re-align performance organization to decomposed and/or composed objects) and a value model (a representation of interconnected and CFO = Chief Financial Officer CRDO = Chief Research & Tactical Service Types: Business Process: Product & Service-focused Business Process: Customer-focused Business Process: Internal-focused Figure 8: Operational Business Competency. as necessary to achieve strategic objectives. 2. Value Strategy & Planning, this is the phase on value investigation
strategy and goals (SBO’s) strategy, goals and objectives performance measurements with strategic value • Identify gap in reporting, evaluation and monitoring meet new and/or unexpected performance Audits Regions Resource request IPP (SAP HR/Workforce Resource Management/Resourcing) findings Determine recommendations
• Identify performance opportunities within the • Align identified performance opportunities with aspects and thereby measurements opportunities
related objects). The value maps, matrices and models are therefore used in the decomposition and CHRO = Chief Human Resources Development Officer 6 = Strategic Advice 1.3.4 Business development reporting 1.3.8 Monitoring and policies 2.3.4 Reassignment and status changes 2.3.8 Communications 3.3.4 Supplier and contract administration 3.3.8 Asset management Thereby providing better insight into how value where one initiates, aligns, arranges, blue- Design cost management
process
Create value and performance
measurements
Deliver tool to model costs Monitor the VDC process
for improvement

business strategy and goals (SBO’s) business strategy, goals and objectives composition work (within and throughout the layers). Officer CRSO = Chief Risk & Security Officer Divisions 7 = Strategic Guidance & Compliance REVENUE MODEL LEGEND VALUE MODEL LEGEND SERVICE MODEL LEGEND COST MODEL LEGEND PERFORMANCE MODEL LEGEND OPERATING MODEL LEGEND KEY PERFORMANCE INDICATORS (KPI’s) should be allocated to individual business areas, prints, categorizes, charts, defines, deter-
• Assign value stakeholders
CIO = Chief Information Officer
Operational Administration Business KPI Management Reporting Cockpits Management Process of Operational KPI’s & PPI’s
6 VALUE-BASED INFORMATION MODELLING 8 = Monitoring = Revenue Opportunity = Value Opportunity = Service Flow = Cost Opportunity = Performance Opportunity = Integration Opportunity 1.4 Project Management 2.4 Benefits 3.4 Risk and Compliance KPI’s should always be an integrated and essential part of an operational business competencies, services, activities, products mines, quantifies, drafts and outlines. Design resource allocation Apply VDC measurements to
Improve based on lessons
learned
Workforce Long discussed, and even though expected by many business and IT orga- Prepare the interim build Measure cost of activity

TACTICAL
• Assign performance stakeholders 16 BUSINESS COMPETENCY 17 SERVICE TYPE 18 SERVICE TIER model service level agreement (SLA)
By using the value templates to manage the different kinds of highly connected information and Operational Reporting
nizations, Value-based Information Modelling (VBIM) is something that many Consolidated Actuals Budget & Measurements Goals 9 = Reporting competency and its most important processes. and/or customers, and is a critical aspect to the 3. Value Creation and/or Build, this is the phase
Main Processes 1.4.1 Portfolio assessment 1.4.5 Project resource management 2.4.1 Enrolment 2.4.5 Process claims 3.4.1 Regulatory compliance planning 3.4.5 Integrated risk management Improve based on leading
relations, the value creation is ensured. The value map (which list the various related objects in order VALUE MODEL IMPERATIVE (PPI’s related to KPI’s) (KPI’s related to CSF’s) (SBO’s & CSF’s) 10 = Evaluation and/or Audit = Cost Flow decision-making process. VBC links value aspects where one compiles, shapes, composes,
2 = ROI Opportunity = Main/Supporting Service
= Revenue Flow = Control & Monitoring = Standardization Opportunity Follow methodology for Build the cost management practices
1 Quality Gate 1 2 Quality Gate 2 3 Quality Gate 3 4 Quality Gate 4 5 Quality Gate 5 6 Quality Gate 6 Operational Oversight do not know how to really apply. It is about more than only mapping one’s Business Competency Operational Business Competency 29 - Processing Tier 1 - Simple Service aligning services to VDC process components
Calculate cost of delivering
service
- Value Management plan sign-off - Identify and outline value opportunities - Value and performance measurements build - Value Management plan execution - Evaluate value measurements against target - Fit Gap Analysis to capture the decomposed unrelated objects) is vital as well as the value matrix (which composes in The four value imperatives – Focused, Responsive, Flexible and Robust – Supporting Processes 11 = Policy 1.4.2 Project office/schedule 1.4.6 Project support 2.4.2 Spending accounting 2.4.6 Planning/review offerings 3.4.2 Security privacy and data protection 3.4.6 Business resilience remediation KPI’s provide a way for the management to develop actionable metrics which and expenses related to resources supplied to configures, constructs, crafts, builds, develops framework
Operational Executing processes and then automating them, it is about realizing which areas create Recruitment Talent management
• Business requirements specification and - Identify and outline performance opportunities - Value Management project initiation values - Root Cause Analysis
terms of relating specific objects together) and the value model (which graphically represent the together provide direction for todays organizations as they target business 12 = Procedures = Channel = Value Identification = Simple Service = TCO Opportunity = BPM (Effectiveness & = Governance, Policies & connect to the bottom line, regardless of department. Good KPI’s will be actionable the company services. VBC is then a way of mea- and tests. Build resource allocation Link with value & performance
Standardize practices

resource and knowledge need - Requirements specification sign off - Evaluate performance measurements against value, which business measurements exist in the particular area, and thereby Efficiency) Guidelines Plan phased implementation model management
• Ensure that quality goals and scope are - Project roles assignment target values decomposed and composed objects) are both critical in integrating and standardizing the value innovation and/or transformation in different areas e.g. competencies, Delivery Cockpits / Dashboards Dashboards Dashboards / Scorecards 19 STRATEGY/GOAL CONNECTION 20 CRITICAL SUCCESS FACTOR/OBJECTIVE CONNECTION 13 = Measurements 1.4.3 Project management 1.4.7 Project evaluation 2.4.3 Participant monitoring 2.4.7 Evaluation and audit 3.4.3 Regulatory compliance remediation 3.4.7 Security solution design and measurable with a direct relationship to profitability. It is also important to set suring which of the organization’s services and 4. Value Implementation and/or Deployment, approach
need to be handled with different information modelling principles and
GOVERNANCE GATES

= Core Differentiating = Value Creation = Complex Service = Cockpits, Dashboards & = Measurements # = People Distribution
well defined across the project lifecycle
templates and tools of the practitioner. Furthermore, it is an essential part of supporting as well as processes, services, etc. None of these imperatives are new by themselves, Processing 14 = Administration Competency Scorecards clear targets and assign reporting accountability for each metric. activities generate revenues in excess of costs, this is the phase where one launches, imple-
Align services to VDC
even automated with different principles (e.g. using LEADing Practice Improve Operational Excellence (SBO) Improve ability to attract talent (Strategic CSF) 1.4.4 Project planning 1.4.8 Project reporting 2.4.4 Deliver employee benefit program 2.4.8 Benefit policies and guidelines 3.4.4 Business resilience planning 3.4.8 User identity and access processing
Identify design objects
methodology

integrating and standardizing the practitioner’s Way of Thinking, Working and Modelling. but indeed, companies have arguably been moving toward becoming more 15 = Communication and as a result, provide keen insight into what is ments, executes, deploys, activates, com-
Operational Measurements principles) to ensure continuous value creation. It is in this area that many = Core Competitive = Value Governance = Unique Service = Evaluation & Audits = Reporting Flow 1 = Maturity Level Build phased implementation
focused, responsive, flexible and robust for quite some time. Yet few compa- Average time to recruit (Operational CSF) 16 = Performance Management Competency Using this step-by-step approach will enable you to develop good and efficient KPI’s really providing value for customers. pletes, concludes, delivers and puts into Verify the connections for approach
organizations, when applying the principles wrong, destroy more value than Result/Output Strategies/Goals 1.5 Finance 2.5 Performance Evaluation 3.5 Information Management (IT) value driven costing framework
Last but not least, it ensures integration of the Enterprise Modelling and Enterprise Architecture nies know how to model and apply these values in all the different perfor- Figure 2: Example of how business model levels relate to competencies, objectives, decision making, measurements and processes. Actuals 17 = Risk Management Figure 6: Applying business model value drivers to Key Performance Indicators for goal/value-based process modelling. for your organization: operation/service. with value drivers and needs
1 Value Audit 1 2 Value Audit 2 3 Value Audit 3 4 Value Audit 4 5 Value Audit 5 5 Value Audit 6 they actually create. The starting point of VBIM is to identify which SBO’s, (Short-term, long-term) (Target year 1-5) Color Legend Provide phased VDC
objects and artifacts. Bringing an organization that uses the LEADing Practice value way of modelling mance and value areas. Figure 5: How to measure the performance and value gain from a KPI. 1.5.1 Financial planning 1.5.5 Credit management 2.5.1 Employee appraisal 2.5.5 Manage employee development 3.5.1 Information management planning 3.5.5 Information resource management 1. Define the most critical processes in your business. 2. Performance Drivers, as a major source of 5. Value Realization and/or Operation, this is the approach for implementation
- Analyze and investigate possible value and - Refined Value Management plan sign-off - Value innovation measurements and reporting - Value & Performance Management evaluation - Performance gap reporting - Value Management governance CSF’s and KPI’s will be in the various information systems.
performance opportunities - Business compliance across innovation and/or - Performance innovation measurements and and reporting templates to the highest maturity possible of working not only documented (level 3) or managed = Business Layer = Process Layer = Application Layer = Data Layer Operational Service Types: The color of the KPI code bar represents the main business process area of the KPI. In the example case (see figure 1), the purple color represents an 2. Choose a metric related to customer service. information, and focuses on: phase where one administers, controls,

SERVICE DELIVERY
transformation lifecycle reporting • Number of value and/or performance
(level 4) but enabling optimization, governance and continuous improvement (level 5). In order to innovate and transform one’s organization, business area, depart- BUSINESS MODEL COMPETENCY AREA 18 = Operational Administration organization-focused business process. 1.5.2 Financial controlling 1.5.6 Cash flow management 2.5.2 Job analysis 2.5.6 Evaluate overall strategy 3.5.2 Information architecture 3.5.6 Knowledge capture and availability 3. List the top four or five processes that are connected to the customer service a) improving performance; maintains, manages, monitors, measures and
obstacles encountered 4 While the information systems deployed by any organization will obviously Financial & Planning, Budgeting Consolidation &
Define the organizational
measurement targets/areas
Conduct VDC concept and
solution testing
Implement VDC workflows into
organization’s service flows
VDC Operations
Eliminate redundant steps or
processes (see next step)
• Number of value and/or performance targets ment, product, service and/or operation, there is a need to enable one’s value Business competencies are defined as business areas with characteristic resources and capabilities. Performance- and value-tuning one’s Measured Activities 1 INDICATOR 8 TARGET GROUPS(S) 15 SOURCE(S): Application Function/Task/Service 19 = Issue Management metric. b) reducing costs; audits. for VDC Run VDC enabled processes
not reached vary, a candidate set of categories for an organization might be as follows: Operational Modelling & Forecasting Reporting Name of the performance indicator. Target group(s) to which the indicator will be reported. Source from which the indicator can be taken. 1.5.3 Treasury and risk management 1.5.7 Evaluation and audits 2.5.3 Objective management 2.5.7 Performance measurements 3.5.3 Data and content management 3.5.7 Information system design (strategic, tactical, operational)
LEADing Practice captures the aspects of the cost and value of innovation and transformation within model to be more: business areas remains a challenging modelling task, since a business model contains the structural overview of the business compe- 20 = Operational Planning 4. Connect the metric to the bottom line. c) creating performance measures; 6. Value Governance and/or Continuous Perform stakeholder
• Number of value and/or performance CRM = Customer Relationship Management 2 INDICATOR NUMBER 9 CALCULATION 16 BUSINESS COMPETENCY Strategy-focused process Production-focused process Supplier-focused process Design the value driven acceptance
Reduce cycle time for service

opportunities not executed its profile for Key Performance Indicators (KPI). The LEADing Practice KPI code bar (see figure 1) is RE = Responsive: Provides real-time identification, analysis and reaction to tency areas of an enterprise, a business unit, or even a specific line of business within a company. Process Tools Analytics Query & Reporting Enterprise Reporting Number of the performance indicator. Explanation of how this indicator is calculated (e.g. methodology, State the business competency and operational business 21 = Process Management 1.5.4 Financial policies 1.5.8 Financial reporting 2.5.4 Develop and train employees 2.5.8 Performance evaluation 3.5.4 Knowledge management planning 3.5.8 Information configuration management 5. Make the metric actionable and measurable. d) improving cash flow and quality; and Improvement, this is the phase where one costing workflow (assure Assign appropriately skilled
ERP = Enterprise Resource Planning components, formula or data used). competency that the KPI or PPI belongs to.
alignment to business resources to activities
comprised of a set of categories, and is structured according to a layout of the following value areas: outside drivers, actual opportunities and threats, in terms of one's 3 DEFINITION 22 = Operational Monitoring 6. For each KPI, define the title, how it will be measured, and the target. e) producing enhanced performance standardizes the existing, re-assesses, competencies, business Craft rollout/implementation Optimize VDC workflows
NET = SAP NetWeaver services, activities and tasks) approach (release,

OPERATIONAL
PHASE LEGEND 1. C-Level Strategy Mapping service, revenue and value model. Connecting the business competency areas with the SBO’s and CSF’s enables the organization to focus on creating business value, Crystal clear definition of what the performance indicator is all about. 10 PROCESS CONTACT 17 SERVICE TYPE 7. Set up regular reporting. products. re-directs, adjusts, alters, re-evaluates,
PLM = Product Lifecycle Management Integration Services Name of the owner of the process and the department. The type of service that is part of the measurement. 23 = Reporting Partner-focused process Organization-focused process Sustainability-focused process 1.6 Facility Management 2.6 Compensation 3.6 Solution & Service Delivery
communications, training) Prepare post-implementation
review
2. Value Model Imperative FO = Focused: Enables differentiation and pursuit of LEADing Practices, and improve service flow, and fine tune performance, thus enabling the potential of gaining a competitive advantage on both the strategic, 4 PERFORMANCE INDICATOR CATEGORY 24 = Evaluation and/or Audit 8. Continue to refine and set up a system of rewards for top performers or amends, changes, corrects, eliminates, Identify design of value Eliminate VDC bottlenecks
Business Analyst Value eXpert Process eXpert Service eXpert Information eXpert Transformation eXpert Information Architect Enterprise Architect Technology Architect Tester Driver, stakeholder or owner SCM = Supply Chain Management State whether the indicator is a Key Performance Indicator (KPI) or 11 APPLICATION CONTACT 18 SERVICE TIER 1.6.1 Building and facility planning 1.6.5 Facilities administration 2.6.1 Design incentives plan 2.6.5 Salary benchmarking 3.6.1 Service delivery planning 3.6.5 Service management
objects Provide VDC approach for
3. Business Level Performance thereby best-in-class competencies (capabilities and resources), for tactical and operational business level. It is therefore a powerful combination when changing existing business strategies, and when a Process Performance Indicator (PPI) and assign it to a category. Name of the application contact and the department. The service tier of which the service type is a part of and belongs 25 = Measurements departments. The objective is to innovate and transform an enhances, increases, modifies, optimizes, implementation

BA VX PX SX IX TX IA EA TA TE SRM = Supplier Relationship Management to. Customer-focused process Human Resource-focused process Finance-focused process
4. Business Model Competency Area focusing on one’s core differentiating and core competitive competen- creating new business strategies and critical success factors to have a direct link to the business competency areas. 5 KEY PERFORMANCE INDICATOR (KPI) 12 DATA CONTACT 26 = Procedures organization’s cost, performance and operating transforms and/or revolutionizes. Receive measurements
1.6.2 Building portfolio assessment 1.6.6 Controlling and reporting 2.6.2 Effectiveness analysis 2.6.6 Pension management 3.6.2 Operations planning 3.6.6 Infrastructure operations
5. Operational Business Competency cies. Assign the Key Performance Indicator (KPI) to a category (e.g. Name of the data contact and the department. 19 STRATEGY/GOAL CONNECTION model. Thereby providing a link between
Once the various application components are identified, one’s application financial or operational). State the strategy and goal connection in which the performance
27 = Operational Advice and/or Guidance
6. Value-based Information Modelling FL = Flexible: Creates business flexibility and asset advantage by matching A generalized, candidate set of business competency areas for an organization might be as follows: 13 DRILL-DOWN DIMENSIONS indicator is a part of. 28 = Operational Guidance & Compliance 1.6.3 Facilities maintenance 1.6.7 Facility issue management 2.6.3 Salary packaging and administration 2.6.7 Compensation administration 3.6.3 Infrastructure resource management 3.6.7 Service performance activity-based costing (ABC) with value-based Evaluate measurements
tasks, services and measurements need to be mapped and linked to Netweaver 6 PROCESS PERFORMANCE INDICATOR (PPI) Drill-down criteria by which this indicator can be detailed (e.g. by Internal-focused process Technology-focused process Distribution-focused process
7. Performance & Value Measurements one’s cost model dynamically with the revenue model. BD = Business Development IT = Information Technology MDM BW/BI ERP costing (VBC) principles, and make simple adjust-
scorecards, dashboards and cockpits according to their value-based BPMN Assign the Process Performance Indicator (PPI) to a category region, course type, etc.). 20 CRITICAL SUCCESS FACTOR/OBJECTIVE CONNECTION 29 = Processing Perform the operational
8. Value-based Service Design RO = Robust: Reduces the impact of catastrophic change and supports long DI = Distribution MS = Marketing, Sales & Service (e.g. time, cost, quality, volume or efficiency). State the critical success factor and/or objective connection to 1.6.4 Building utilization 1.6.8 Building policies and procedures 2.6.4 Calculate variable compensations 2.6.8 Compensation policies 3.6.4 Infrastructure resource planning 3.6.8 Development standards ments to allocated overhead costs that do not
14 PROCESS(ES) ACTIVITY MEASURED
value analysis
information. Name of the process(es) activity that is measured. which the performance indicator belongs.
9. Value-based Process Design term survival by building redundancy throughout the performance and GA = General Administration OP = Operations 7 RATIONALE Product & Service-focused process Governance-focused process accurately model how the product or cost
Concise rationale of why the indicator is necessary and how it can Figure 7: Operational Business Model.
operating model. HR = Human Resource Management OS = Operations Support Figure 4: Value-based Information Modelling.
be used to support decisions. consumes the overhead activities. VBC links Figure 10: Example of a Value-based Costing model.

A part of the EADing Practice Frameworks. For more information about LEADing Practices, please visit www.LEADingPractice.com. WEBSITE
www.LEADingPractice.com
EMAIL
[email protected]