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.

FP&A: the Evolution of Driver-Based Planning

By Larysa Melnychuk and  Hans Gobin 

Driver-based planning (DBP) is an essential part of the financial planning and analysis (FP&A) armoury, enabling organisations – ranging from the smallest non-profit to a multinational – to become quicker, more dynamic and agile in their planning and in responding to internal and external changes in the business environment.
DBP was the focus on the London FP&A Board of senior practitioners’ most recent meeting, sponsored by Michael Page and Metapraxis, which was held on the eve of the landmark UK referendum on its continued membership of the European Union (EU). Given that the result early on June 24 confounded many expectations, the benefits of DBP may have been evident to many companies forced to reassess both their short-term and longer-term business plans.

This article outlines the main conclusions and recommendations on DBP that were generated by the London FP&A Board.

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. 

Responding to Criticism of FP&A

By Karl Kern, Founder/President, Kern Analytics LLC

Criticism is defined as “the expression of disapproval of something based on perceived mistakes.”  FP&A is a learning process that creates insight into what organizations are doing and where they are going. Processes are not perfect; mistakes are likely to occur.  As a result, FP&A practitioners need to recognize that their work is subject to criticism.  It is important therefore to acknowledge criticism and respond to it.

 

FP&A Tags: 

Pages