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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!

 

The Most Useless Visualisation Ever

Randall Bolten , longtime Silicon Valley CFO, author of "Painting with Numbers: Presenting Financials and Other Numbers So People Will Understand You” and adjunct professor at U.C. Berkeley Extension

Let’s take a look at some of the most messed-up, incomprehensible recent examples of quantation. Not surprisingly, all are graphs. But some come from sources that definitely should know better. With some, try to figure out what went wrong; with others, if you can figure out what the heck they’re trying to say, please let me know. Enjoy!

RANDALL BOLTEN grew up in Washington, D.C., the son of a CIA intelligence officer and a history professor. He is passionate about the importance of presenting financials and other numerical information in a cogent and effective way, and in his current life is the author of Painting with Numbers: Presenting Financials and Other Numbers So People Will Understand You (John Wiley & Sons, 2012).

He is a seasoned financial executive, with many years directing the financial and other operations of high-technology companies. His experience includes nearly twenty years as a chief financial officer of software companies.

He has held the CFO position at public companies BroadVision and Phoenix Technologies, and at private companies including Arcot Systems, BioCAD, and Teknekron. Before his CFO positions, he held senior financial management positions at Oracle and Tandem Computers.

He received his AB from Princeton University, headed west to earn an MBA at Stanford University, and ended up staying in Silicon Valley. 

In addition to writing Painting with Numbers, he currently operates Lucidity, a consulting and executive coaching practice focused on organizing and presenting complex financial information. He divides his work time between Glenbrook, NV and Washington, DC, and maintains an office in Menlo Park, CA.

FP&A Tags: 

Clinical & Statistical FP&A

By Karl Kern, Founder/President, Kern Analytics LLC

In his book THINKING, FAST AND SLOW Daniel Kahneman describes two schools of psychology within the study of decision making.  Clinical psychologists advocate the use of methods like heuristics (rules of thumb) and intuition for making decisions.

Statistical psychologists, on the other hand, advocate the use of methods like simple algorithms or formulas for making decisions.  Clinical psychologists believe their methods are better than the methods used by statistical psychologists and vice versa.  The passion that each school of psychology has for its methods led me to examine my work as an FP&A practitioner.

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.

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