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Corporate Performance Management (CPM)

Effective Corporate Performance Management. What are the Top 8 Business Measures?

by Michael Coveney, co-author of "Budgeting, Planning, and Forecasting in Uncertain Times"

In this article, the author reveals the top 8 measures for any performance management system.

In summary, don’t just choose any old measure because it’s available or use a measure because someone else is using it. Instead, choose measures because of the value it brings to the management of performance

Beware of FP&A System Demonstrations

by Michael Coveney, co-author of "Budgeting, Planning, and Forecasting in Uncertain Times"

Too often software evaluations are restricted to features and functions. It’s like evaluating a car by looking at individual components such as the wheels, the engine, the seats …. but without seeing if they all work together to meet your needs for your circumstances. A small electric car may be fine for some people but no good if you need to travel to the arctic or move heavy equipment. So next time you are tempted to view a demonstration, make sure you’re prepared with questions that will help you to assess the true business value of the solution in your ‘real world’. 

Is your Planning System a ‘Measurement system’ or a ‘Management system’?

by Michael Coveney, co-author of "Budgeting, Planning, and Forecasting in Uncertain Times"

In short, performance management systems encompass performance measurement systems, but not the other way around. To achieve effective performance management, systems must possess sophisticated process control capabilities that constantly track organizational activities and invoke user involvement as required.

So do you have one? Is your planning system a ‘measurement system’ or a ‘management system’?

Five Steps to Set Stretch Targets for your Budgeting Process

by Michael Coveney, co-author of "Budgeting, Planning, and Forecasting in Uncertain Times"

A few days ago I was looking through some blogs on LinkedIn when I came across a comment that suggested the purpose of budgeting was to set stretch targets. A number of people seemed to support this idea, although I personally have to disagree for two key reasons.

What is a stretch target?

First of all, what is actually meant by a stretch target. This can differ depending on where you sit. As the budget holder of a sales division, this may mean setting sales targets that are higher than what would normally be expected. For production, this may mean producing more goods for less while marketing may see this as attracting more inquiries than last year....

Why Your Business Planning Process Needs More Edge Answers

By Michael Huthwaite, Founder and CEO at FinanceSeer LLC

The long-standing narrative of Enterprise Performance Management (EPM/CPM) has been squarely focused on the effort to steer organizations away from spreadsheets by embracing Enterprise Performance Management suites (i.e. platforms).  
Yet, the dirty secret that is rarely spoken about is that most organizations continue to remain heavily reliant on spreadsheets even after spending huge sums of money on EPM solutions.  
So, why are so many organizations still deeply dependent on spreadsheets?  The answer to this question lies at the Edge.  

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