Corporate Performance Management (CPM)

8 Business Measures for Effective Corporate Performance Management

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

 

A number of years ago I was contacted by a manager in the Health profession and asked if I could tell them 25 measures they should be tracking. I was a little surprised and thought to myself that if they didn’t know what those measures were given that they worked in the industry, then what chance would I have in coming up with the right ones.

In reply I asked them what was the purpose of the organization, as in my opinion, the measures ought to be associated with what they were trying to achieve. But this didn’t help. They were looking out for a list that they could then track and presumably say that they were now adequately measuring performance....

Beware of FP&A System Demonstrations

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

So you’re looking for a system that can help you improve your ability to plan and manage organizational performance. You’ve been using a spreadsheet for many years to budget and although it is infinitely flexible, you are worried about the integrity of the data and the fact that no one quite knows how the macros and VB scripts work. Oh, and you never seem to have adequate data to make ‘real-world’ decisions.

In looking through various blogs and magazine articles, you’ve heard that corporate performance solutions are the ‘in-thing’ and that everyone seems to be implementing them. So after doing some research you shortlist three suppliers who are now all going to tell you why their system is unique, the best and how much better off you would be if you choose them.

Performance Measurement Vs Performance Management

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

How do you think performance is  measured at the Olympics Games by the teams involved?   The number of gold medals?  The number of world records?

Now come back a few years to when a team is preparing for the games. How is performance going to be managed?   You can be sure it won’t be in terms of the number of medals they hope to win. Instead, the focus will be on the type of training being given, the diets being prepared, the way in which equipment and facilities are being used. To ensure these activities can take place, budgets and other resources are allocated to the appropriate activities. In short, the focus is on the process of preparing the athlete and not on the outcomes they hope to achieve...

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