ISDS 2001 – STUDY GUIDE for Final Exam – Chapters 3 and 6
Objectives: After completing Chapter 3, you should know:
1. that BPM encompasses a core set of processes, including financial and operational
planning, consolidation and reporting, modeling, analysis, and monitoring of KPIs, linked
to organizational strategy
2. that BPM helps organizations translate a unified set of objectives into plans, monitor
execution, and deliver critical insight to improve financial and operational performance
3. that BPM refers to the business processes, methodologies, metrics, and technologies used
by enterprises to measure, monitor, and manage business performance
4. that BPM is an ...view middle of the document...
that Monitor asks the question, How Are We Doing? It requires monitoring actual performance against the goals and objectives
11. that Act and Adjust asks the question, What Do We Need to Do Differently? It requires taking corrective action
12. that, using the BPM Cycle Figure 3.1 in the notes, (1) Strategize uses mission, values, goals, objectives, incentives, and strategy maps; (2) Plan uses budgets, plans, forecasts, models, initiatives, targets, (3) Monitor uses performance dashboards, reports, analytical tools, (4) Act and Adjust uses interpretations, collaboration, assessment, decisions, acting and adjusting, and tracking.
13. that the basic tasks of the strategic planning process are: (1) Conduct a current situation analysis, (2) Determine the planning horizon, (3) Conduct an environmental scan,
(4) Identify critical success factors (CSF), (5) Complete a gap analysis, (6) Create a strategic vision, (7) Develop a business strategy, (8) Identify strategic objectives and goals
14. the descriptions of each of the 8 basic tasks of the strategic planning process
a. Conduct a current situation analysis - Where are we?
Establish a baseline for both financial and operational
b. Determine the planning horizon - Produce plans on a
yearly basis with the planning horizon running 3-5 years
c. Conduct an environmental scan - Here the company
assesses standard SWOT (strengths, weaknesses,
opportunities, and threats). It identifies and prioritizes key
factors that actually or potentially affect the company.
d. Identify critical success factors (CSF) - Key factors that
delineate the things that an organization must excel at to be
e. Complete a gap analysis - Gaps reflect what the strategy
actually requires and what the organization actually
f. Create a strategic vision - What should the organization
look like in the future?
g. Develop a business strategy based on information from the
previous steps, taking into account the company’s strength,
take advantage of opportunities, address weaknesses, and
respond to threats.
h. Identify strategic objectives and goals
Strategic objective is a broad statement or course of action
that prescribes targeted directions for an organization.
Strategic goal is a quantification of an objective for a
designated period of time.
Example: DirecTV - Objective to decrease churn must be
turned into quantified targets (decrease churn by 15%).
15. the definition of strategy gap: the difference between the current performance of an
organization and the desired performance as described in the mission statements,
objectives, and goals
16. that the PLANNING requires operational and financial planning and budgeting
17. the definition of operational plan; know that an operational plan is like a project plan that
is designed to ensure that an organization’s strategy is realized. Know that the
operational plan: translates an...