ValidExTM
Proof of Performance - The Spreadsheet Dilemma
When faced with the need to qualify, summarise, and validate performance measures, many operations staff turn to spreadsheets, drawn by their agility and perceived ease-of use. It is not unusual for resources businesses to be dependent on hundreds, if not thousands of spreadsheets to support their operations. It has become clear that spreadsheets are not the optimal solution:
- They are used inappropriately for many complex applications.
- They are more than often wrong. Numerous studies (PWC, KPMG, et al) have confirmed that most (around 90%) contain errors. As a consequence, almost 1 in 4 business decisions based on these figures can be incorrect.
- They are expensive to develop ($10k-$100k).
- Spreadsheets have short lives, typically <9 months.
- Corporate intellectual capital is locked away.
- Lack of control of standard definitions and calculations.
- They are not readily auditable - cryptic formulae and meaningless row/column cell references.
In addition to these inherent problems with spreadsheets, their misuse in reporting processes destroys granularity as performance measures are repeatedly summarised. Organisations are unable to enforce standard definitions and calculations, and there is a complete lack of traceability and auditability. Unit Managers are able to adjust their own performance figures by making corrections and compensations from quarter to quarter.
Trusted Measures - Validate & Explain
Your Key Performance Indicators are made up of measures and calculations. How transparent are these? Have any correction factors been applied? By whom? How do you separated fact from fiction?
The KPI circle - plan, execute, report:
- Prove results with facts, reasoning and evidence.
- Use of standards, tests and trials to maintain consistent performance measurement.
- Ensure data is correct before publishing.
In order to properly manage risk, all of this needs to happen in concert: to deliver validated information about consuming and expending physicals - gained from real-time data.
It is clear that to provide trusted data, securely, right up the reporting chain, it needs to be managed in a controlled environment. It should also be clear by now that both off-the-shelf point solutions and bespoke developments have failed to match spreadsheets in their agility and flexibility in meeting the changing needs of a business.
ValidEx addresses these issues by employing a powerful, graphical environment for building models. An environment which uses graphical flowcharts to define the performance calculations and business rules.
The
ValidEx platform. A data management platform that leverages your
existing investment in best-of-breed applications, yet provides a secure
framework to manage the validation and explanation of critical performance
indicators. The platform includes a database that Validates and Explains
physicals data, to provide a trusted source of information for other
applications. A repository for definitions, business rules, processes,
standard terms & measures - capturing intellectual capital. A powerful,
graphically based rules and modelling engine which can be linked to a wide range of data
sources. Read more »
