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Corporate Performance Management (CPM)

Exceptional EPM/CPM Systems are an Exception

By Gary Cokins, Founder and CEO: Analytics-Based Performance Management LLC

Quite naturally, many organizations over-rate the quality of their enterprise and corporate performance management (EPM/CPM) practices and systems.   In reality they lack in being comprehensive and how integrated they are. For example, when you ask executives how well they measure and report either costs or non-financial performance measures, most proudly boast that they are very good. Again, this is inconsistent and conflicts with surveys where anonymous replies from mid-level managers candidly score them as “needs much improvement.”

Every organization cannot be above average!

 

How to Build Corporate Performance Management Workflow

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

 

Workflow is critical to a CPM application in the same way that it is critical to ERP. It is through a workflow that users are directed and their attention focused on their roles and responsibilities through the different performance management processes. 
The activities involved tend to be classified into the management processes. To construct the right CPM processes, which together should focus on achieving the organisation’s mission, we will have to define its purpose, activity and timing for the process.

Seven Key Dimensions of CPM Business Model

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

The central CPM business model requires multi-dimensional technology. Whether this is an OLAP or ROLAP database is irrelevant, however, the members that make up each dimension will need to be assigned ‘attributes’ that will allow them to be reported and analyzed in ways other than their physical structure / hierarchy within the model. 
The CPM business model will typically consist of 7   key dimensions that are described in this article.

Corporate Performance Management (CPM): The Need for a Framework

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

 

In December 1999, Gartner introduced the concept of Corporate Performance Management (CPM), which they defined as the “... the processes, methodologies, metrics and systems used to monitor and manage an enterprise's business performance”. 
Since that time the concept has been adopted by most major software vendors, although they may refer to it using other 3 letter acronyms such as BPM, EPM and so on. 
However the market is currently confused in that many offerings, although labelled CPM solutions, are only partial solutions and do not meet the needs of CPM. CPM has also become synonymous with planning, budgeting and forecasting, which only forms part of a true CPM offering. 

Why Driver- Based Planning and Dedicated Planning Systems Matter for FP&A

By Elena Kiristova, CFO Russia and CIS at Groupon

Integrating actuals into the planning cycle is usually not an easy task. Financial and operating results are spread across multiple databases. Actual results and plan detail are at different levels. Lack of underlying volumes and rates make meaningful causal analysis difficult.

BUT - You want apples to apples. Too often you get a fruit salad.

With today’s more intensive focus on driver-based planning and key performance indicators, this  article will help management and FP&A staff think through the issues for better Variance Analysis and Corporate Performance Management.

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