EPO Framework

Enterprise Performance Optimization (EPO) unlocks the hidden value in your business intelligence data, letting you allocate resources for maximum return, and make better decisions faster, in every functional area.

With EPO you can

• Create a More Effective Organization
• Increase Organizational Agility
• Maximize the Return on All Enterprise Resources
• Drive Improvement through the Organization

More Than Software

EPO is more than software. It is a framework for getting the most out of your limited resources. EPO is about driving improvement through transparent, supportable performance targets.

The framework consists of three stages

• Analysis
  EPO begins with your existing Business Intelligence data. Our software performs sophisticated multidimensional analysis, and identifies the hidden relationships between inputs (resources) and outputs (desired outcomes).

• Modeling
  Your management team can then use the LBA EPO™ model builder to quickly ask questions about your business, such as
  • “Given this much headcount, budget and square footage, how do I maximize
    for revenue and profit?”
  • “Given this production volume, how do I minimize distribution and handling costs?”
  • “Which of my field sales units is performing below target, by how much,
    and what is the underlying cause of the shortfall?”
  • “Where should I apply my marketing dollars to optimize customer acquisition
    and total revenue?”

  Building a query takes just a few seconds. The answers appear in less than a minute.

• Target Setting
  The LBA EPO software automatically creates peer-based scorecards using any performance metric. The performance data, peer weighting, and target calculation is completely transparent, virtually eliminating politics from the target setting process.

Benefits of EPO

The EPO framework and associated software has been in use for over six years.
The proven benefits include the following.

• Alignment
  EPO restores the missing links between strategy, financial planning and operational planning. The peer-based scorecard model, based on your own up-to-the-minute performance data, makes it easy to measure effectiveness and align compensation incentives for every business unit – down to the individual.

• Agility
  The EPO approach reduces the planning / budgeting / performance / evaluation loop from months to days. Not only can you measure and manage performance much more quickly, you can respond immediately to changing internal or external conditions.

• Efficiency
  EPO establishes efficiency levels, identifies shortfalls, and calculates optimal allocation for all the resources you use to create value in your business: cash, headcount, square footage, vehicles, shelf space, even time.

• Performance
  EPO quickly identifies sub-optimal performers and, more importantly, the specific factors contributing to poor performance.