Corporate Performance Management (CPM) was a term originally coined by Gartner in the early years 2000. Also Enterprise or Business Performance Management (EPM / BPM) are used as synonyms, depending on the vendors.
Performance management is focused on the common objective of linking enterprise-wide strategy with enterprise-wide operations through the use of :
- Key Performance Indicators (KPIs) or Balanced Scorecard
- Linking this to the core processes of Planning, Budgeting and Forecasting including Simulation and Scenario Modeling
- Integration with the Financial Consolidation & Management Reporting processes
- Activity Based Management/Activity Based Costing or Profitability Analysis
- Strategy Formulation and Strategic Planning
Typically a broader framework is defined. Most definitions of Performance Management build on the work from Gartner. According to Gartner, the framework consists of :
- methodologies (Balanced Scorecard, EFQM, Six Sigma, Beyond Budgeting, Time-Driven ABC, ...)
- metrics (leading and lagging, financial and non-financial, short-term & long-term, quantitative and qualitative, aligned, ...)
- processes (Strategy Formulation, Goal Setting, Business Activity Monitoring, Performance, Feedback, ...)
- systems (Business Intelligence & CPM / EPM software suites, data warehousing, advanced analytics ...)
Often the Office of Finance will take a leading role in the definition of the EPM / CPM strategy for the company. This means the role of Management Accounting evolves into what has been coined as Performance Management Analytics (PMA) (Silvi, Moeller and Schlaefke).
element61 has a particular focus on assisting organizations in defining a roadmap, and executing it, to automate Corporate\Enterprise\Business Performance Management processes in their company, whilst building on the data warehouse infrastructure that the company already has invested in.
Given the Mergers & Acquisitions of the last years, most CPM and BI Solutions now are owned by a few leading software companies, who focus on integrating both functionalities tightly into one suite and architecture. As such, companies need to develop an integrated vision on how Business Intelligence and CPM converge to support one single version of the truth and one single, iterative process for managing information on corporate performance, whether it is past, future or current management information.
Contact us for more information on Corporate Performance Management.