When it comes to improving business performance, quite a bit of jargon gets thrown around. Corporate performance management (CPM), for example, is often used to refer to business performance management and enterprise performance management, but these terms don't always refer to the same thing.
CPM improves a company's capability. It helps the company enhance three fundamental values: performance monitoring, information delivery, and performance effectiveness. These values assist in understanding, improving, and managing the business. Within an integrated ecosystem, a corporate performance management system coordinates the performance of managers, employees, customers, and suppliers. Information access and strategic planning are the foundations of corporate performance management.
3 Reasons Why You Need Corporate Performance Management (CPM)
In the era of exploding business intelligence
, businesses need to embrace process automation. CPM may profoundly impact your team's productivity, coherence, insight, and more.
CPM functions are critical to the C-suite and the long-term success of an organization. As a result, several businesses have developed departments solely dedicated to strategy and performance management. Let's look at the top reasons why you should use CPM for your business.
Addressing Challenges in Financial Data
Compiling your financial data takes time. To see and organize your financial data easily and quickly, you can use CPM software to connect with your ERP system
. This application will also make the finance team's job simpler. It will be easier to understand and manage the projected estimates and how important they are.
Smart dashboards in business performance management or CPM software provide every quantifiable statistic that a management team will need to use in its decision-making. Even though there are so many different types of data, it can be a good thing to read and use it as changes happen in real-time in the company.
Most businesses have several individuals involved in performance management
, right from C-level executives to back-office administrators. Although not everyone is actively participating in the performance management process, many users need access to and analysis of reports.
CPM technology for a business focuses on a single source of information or data. That is why it provides greater control over it. It also gives more control and security over the results that come out of the process.
Who Uses CPM?
Earlier, CPM was primarily used by businesses with more than 1,000 workers. However, due to the affordability and simplicity of next-generation CPM solutions, dynamic and ambitious organizations from the startup phase to the enterprise level are now utilizing them. This is one of the prime reasons for the rapid increase in the CPM software market.
Companies that sense an opportunity to grow, large businesses that operate globally, organizations that merge with others, and businesses that strive to improve company performance are the most likely to use CPM.
Overcoming the Corporate Performance Management Challenges
When a business imparts great performance management throughout the workplace, critical expectations and desired outcomes must be set. Also, this does not always go as planned. As a result, CPM presents significant challenges that need immediate attention, as stated below.
This involves ensuring that all organizational processes and essential components, such as finances, project and program management, risk management
, etc., align with the primary goal.
A poorly implemented CPM will result in complete failure. To make sure that information can be easily integrated, processed, and reported to meet specific standards, a company should build an ICT infrastructure that is easy to use, complete, and appropriate.
Synchronization of Objectives
Businesses should not depend only on current tactics while neglecting to develop their own. Instead, they should focus on getting their main objectives out in the open so that CPM and all stakeholders are on the same page.
Things to Consider While Choosing a CPM Platform
Before investing in corporate performance management software, understand your team’s requirements. What manual tasks do they currently execute? What tools will the team require to keep pace with the growth of the company?
Here we have mentioned the top three things to consider while choosing a CPM platform for business.
You want your employees to be passionate about the platform and its potential; choose an option that will significantly enhance their day-to-day functioning. Involve your team in the process of choosing a platform so they can give their opinion on how easy it is to use.
A user-friendly and accessible CPM system will lead to successful training, deployment, and an instant ROI.
Integrations with Existing Tools
Make sure your new CPM system can integrate with your existing systems. You may want to import data from your ERP system, BI tools
, and spreadsheets in real-time to save time and effort by copying and pasting data between applications. Manual data re-entry takes a lot of time and puts data at risk of being missed or entered incorrectly.
This integration is crucial if your business utilizes a data warehouse to integrate data from multiple cloud tools. To do more analysis, you can also export data from the CPM platform into models and spreadsheets and presentations and word documents.
Value to the Organization
The cheapest option is not always the best one for your business. Evaluate the value of the software to the team, leadership, and organization. How can the program improve efficiency, offer accurate business visibility, and assist with data-driven decisions? This is where value is measured.
Corporate performance management is the framework that connects your organizational objectives with planning, enabling successful strategy implementation. Investing in CPM software will increase a company's efficiency by handling a reasonably straightforward process. When employees are free from tiresome activities, they can be employed for something useful that will contribute to the company's development.
“The true measure of the value of any business leader and manager is performance.”
– Brian Tracy
Frequently Asked Questions
What Is the Role of CPM in Business?
CPM software, which was earlier used in finance departments, is now meant to be used enterprise-wide, usually complementing business intelligence systems. There are graphical scorecards and dashboards for displaying corporate information in the CPM software. Forecasting, budgeting, and planning are some of the features that come with the software.
What Are the Primary Corporate Performance Metrics?
CPM is an aspect of business intelligence (BI) that includes monitoring and controlling a company's performance based on key performance indicators (KPIs) such as revenue, ROI, overhead, and operational expenses.
What Is the Difference Between CPM and EPM?
CPM concentrates on delivering a company-wide performance management solution, especially for the organization's finance department. EPM focuses on the overall performance of the organization, going beyond the finance departments to sales, marketing, supply chain, and other areas.