New technology such as Digital Performance Management gives birth to a new type of controller (financial analyst). Proven tools and routines will be complemented with new tools and routines. Trusted habits and approaches will be recharged with new ways of doing things. How long this takes depends on our openness and willingness to learn from each other and to adjust to this change.
We at Trufa are observing following changes of behavior in our customer base:
1. Leaving the ivory tower
Digital Performance Management enables the automatic detection and in time management of operational input factors (operational performance drivers).
Digital Controllers are closely collaborating with the operational managers. Digital Controllers are genuine Business Controllers. They are sitting in the business and no more in a central location.
The input factors get managed early enough to influence the output factors (focusing on leading rather than lagging performance indicators).
2. Substituting reporting
Digital Performance Management enables unbiased ad-hoc big data queries.
Digital Controllers resort to experimentation to verify hunches and for special aspects.
Experimentation saves time and money.
3. Ignoring outliers
Digital Performance Management enables the management of whole distributions.
Digital Controllers focus on bulk instead of single improvements.
Managing outliers could be very hard and results are questionable regarding time and money.
4. Overcoming silos
Digital Performance Management enables the analysis of end-to-end processes.
Digital Controllers think in processes rather than departments.
Competing and conflicting sub-optimizations are avoided.
5. Applying statistical thinking
Digital Performance Management enables the application of robust statistics and machine learning.
Digital Controllers accept statistical errors instead of insisting on deterministic results all the time.
Statistics make sense even out of incomplete data.
5. Relying on automation
Digital Performance Management enables a very high degree of automation.
Digital Controllers prioritize based on automatically determined performance scores.
Automation is key to the increasing diversity of business processes caused by the digitization of our world.
7. Avoiding surrogate battles
Digital Performance Management enables to manage true efficiency (cash) and true effectiveness (profitability).
Digital Controllers distinguish between relevant and irrelevant analyses.
Dynamic aggregations of all details are the ultimate flexibility.
8. Having fun
Digital Performance Management enables to go where nobody has gone before.
Digital Controllers have more fun since they have less frustrations from unsolvable financial inquiries.
Digital Controllers focus on what counts rather than what can be counted.