CPM - Corporate Performance Management
Corporate performance management (CPM) is an umbrella term that describes the methodologies, metrics, processes and systems used to monitor and manage the business performance of an enterprise. Applications that enable CPM translate strategically focused information to operational plans and send aggregated results. These applications are also integrated into many elements of the planning and control cycle, or they address BAM or customer relationship optimization needs.
CPM must be supported by a suite of analytical applications that provide the functionality to support these processes, methodologies and metrics.
A CPM system is software that monitors and manages an organization's performance, according to key performance indicators. These can be revenue, return on investment, or other corporate strategic goals, such as increasing operational efficiency or improving corporate strategy.
Corporate performance management system supports financial budgeting, planning and forecasting, and help leaders manage strategy and track the company’s financial health against goals. Corporate performance management tools are commonly used by the finance department, but are increasingly designed to be used across the enterprise. All in all, financial corporate performance management helps CFOs and other leaders maintain a clear picture of organizational performance.
CPM Software Comparison
To compare different CPM tools, you might want to consider evaluating options based on these factors:
Finance vs Strategy: Do you care more about strategic planning or financials (such as consolidation and close, reporting, etc)? Financial corporate performance management products rarely do both of these well, so depending on which is your priority, compare tools based on both capabilities. Look at feature ratings for budgeting, planning and forecasting, versus consolidation and close and reporting.
Deployment type: Corporate performance management solutions may be cloud-based, on-premise, or offer both deployment types.
Usability: Ease of use is an important factor, even more so if your use of the CPM software will extend beyond the Finance team. Look for comments about usability in pros & cons sections of reviews, and compare how the products rate for usability.
Reporting: Corporate performance management software is very centered on reporting and the ability to build custom reports. Reviewers often comment on the quality of reporting, and are asked to rate products based on reporting features.
F.A.Q. about CPM - Corporate Performance Management
Why is CPM important and who is CPM important for?
Recent studies have shown that strategy execution is the number one area of focus for senior executives today and CPM performance management is a way to help ensure your strategies get executed. By integrating organizational goals, metrics, and projects, your company is aligned around strategic priorities and can focus on the key drivers of the business.
CPM is important for every company, but especially those looking to:
- Remodel their budget
- Reduce costs
- Better align KPIs
- Upgrade their organizational strategy
- Improve the financial planning process
Importance of Corporate Performance Management Software
In the era of business management intelligence, it’s important that corporations embrace processes automation. Here are some of the benefits of adopting an enterprise and corporate performance management solution.
1. Real-time feedback. Performance management software has smart dashboards which contain every measurable metric a management team may need to use in its decision-making. However, the detail is not in the variety. It’s in the ability to read and use data as changes happen in real-time across all parts of the organization.
2. Data consolidation for easy management. The tools have the intelligence to gather, group, and combine data from multiple sources, be it departments, spreadsheets, or even companies.
3. Provide ease of risk management. One significant advantage of CPM is the integration of tools like what-if models. For instance, the model empowers managers to mitigate risks and make informed decisions based on the simulation of the best-worst case scenarios.
4. Provide simple data feedback and access. Performance management tools enable managers to have ease of access to information while still fostering accuracy and quality.
5. Ease of collaboration. CPM tools are not only locally integrated but also cloud connected to allows all users to stay in sync across all departments.