What is Corporate Performance Management? – Top 5 EPM or BPM

You may have heard of Corporate Performance Management or Business Performance Management, but what do they mean?

Keep reading to learn about corporate performance management and determine which approach might be best for your business needs.

corporate performance management

What is CPM?

Corporate performance management is a field of management that uses financial and non-financial indicators to monitor and manage organizational performance. CPM generally goes hand-in-hand with business strategy and can be used to help organizations make informed decisions about where to allocate resources.

It is to understand and evaluate a business or organization’s current situation with best practices and identify opportunities for performance improvement.

Corporate performance management is a specialized area of Business Intelligence BI that involves governing and managing overall organization performance according to the key performance indicators (KPIs) revenue, return over investments (ROI), overhead, and operational costs.

Business performance management provides organizations with a specialized approach to framing an effective business strategy and managing their day-to-day activities.

It helps tackle sales, budgeting, forecasting, marketing, HR, operational expenses, etc.  

Once the practical methodology of enterprise performance management is appropriately implemented, it correlates with an organization’s effective strategy and execution.

Thus, in other words, we can say CPM assists an organization in achieving its long-term goals.

To be more precise to say, Corporate performance management involves the following management processes:

The corporate performance management process

Corporate Performance Management Process
  • Setting the long-term goal of an organization and framing an effective and appealing business model that will receive more traction.
  • Useful in budgeting, planning, and prophesying the corporate future.
  • It helps in informing all the company stakeholders, whether they are internal stakeholders or external. Informing about the overall performance and prospects of the company as a whole.
  • Analyzing the performance of an organization vs. the company’s plans, company’s performance in the previous years, across divisions or products.
  • Then modeling again – creating what-if scenarios.

Financial performance management or enterprise performance management is an “Umbrella term” primarily used to describe methodologies and sets of practical steps that an individual can leverage to manage an organization and achieve its long-term goals successfully.

It is crucial for every organization, whether it lies in the small and medium enterprises (SMEs) category, Large scale manufacturing category, or any other category.

BPM is more important for those who are looking to:

  • Reframe their organization’s budget
  • Shrink the cost incurred in the production
  • Improve their financial planning process
  • Take their organization strategy to the next level
  • Better align KPIs

It is worth noting that CPM has a robust correlation with business intelligence (BI).

Suppose an organization or any company wants to be successful with the EPM. In that case, companies need to realize that it is incumbent to implement a framework to see that corporate performance is being managed.

To achieve this goal, different strategies and management methodologies are already utilized. However, one of the most well-known effective strategies is a balanced scoreboard.

The organization leverages different effective strategies to precisely measure the success of its framework in action. The popular ones are the EFQM Excellent Model, MPO, six-sigma, and the key performance indicators (KPIs).

Importance of CPM

A recent study revealed that seniors execute today’s need to overly emphasize strategy execution to survive in the overly saturated market.

BPM is the most prominent way to ensure your strategy gets executed.

Your company can be aligned around the strategic priorities and can focus on the key driver of your business by merging organizational goals, metrics, and projects.

Due to its outstanding importance for any business or organization, nowadays, many companies have a specialized department dedicated to performance or strategy management (performance management is often regarded as project management).

The offices of these departments operated as Office of Strategy Management (OSM) or Project Management Offices (PSM).

Undoubtedly, corporate performance has received so much traction from corporate leaders, and many peoples have opted for corporate performance management as a full-time career.

To address the requirement of the corporate section, many academic institutes have initiated a degree program to assist an individual in becoming an expert in corporate performance management.

Steps for business performance management

For businesses to do performance management, they need to carry out the following four steps.

  1. Detailed analysis of their current business process and its performance
  2. Detailed analysis of the process and performance of other businesses
  3. Comparing and examining their own business with other businesses
  4. Implement the steps needed to close the performance gaps

CPM common features

  • Budgeting & forecasting
  • Financial reporting and consolidation
  • Performance monitoring, measurement, and analytics
  • Interactive dashboards and data visualization
  • Strategic & tactical planning
  • Risk management
  • Cloud collaboration and sharing

Measurement of performance in CPM

Measurement of performance used in CPM

Measurement of performance used in corporate performance management can be divided into five categories.

  1. Financial: This category of performance measurement consists of the performance of all financial terms such as profit, cost, and sales.
  2. Internal: It includes the overall experience of laborers or employees in the organization. Because employee experience affects the success or failure of the organization, internal metric also helps to evaluate the quality of the management.
  3. Customer: Customers are valuable assets for all businesses. They are the main revenue-generating sources for the organization. Hence customer satisfaction is the main indicator of performance.
  4. Obedience: The organization should obey employment rules & regulations, environmental acts, and financial reporting.
  5. Approach: It shows how to execute the strategies implemented by the management to reach the organization’s objectives.

List of Software available for EPM and CPM

There was much software that was specifically developed to fulfill the requirement of finance departments. In addition, CPM software is specifically developed and deployed to be used enterprise-wide.

Apart from that, some software systems are precisely designed to bring perfection to business intelligence systems.

Here is the list of some well-known software dedicated to corporate performance management.

1. Adaptive Insights

Adaptive insight is an application software developed by a Workday company. That is a kind of software primarily geared towards financial planning and reporting.

Some of the well-known use cases of Adaptive-Insights are

  • automated budgeting and financial forecasting
  • financial reporting
  • other active planning activities that include integration with third-party products like Salesforce

2. Prophix

Prophix is arguably the best software for corporate performance management. This software can quickly accomplish budgeting, planning, and reporting.

Prophix, a company behind the development of this phenomenal software, emphasizes greatly enhancing the software’s core ability to automate data management and reporting tasks.

3. Anaplan

Anaplan is software that has completely revolutionized connected planning. Many large and the fastest evolving organizations leverage Anaplan’s cloud platform to automate their day-to-day business activities.

Many large-scale organizations leverage Anaplan software to devise better-informed plans and financial decisions.

4. SAP Analytics Cloud

Another excellent business software geared towards enterprise performance management is SAP. It can assist its users in automating the business innovation process.

The vendors of this phenomenal business software strongly believe that they can help their customers create significant new value through their outstanding services.

5. Oracle EPM Cloud

You might all be aware that the old paradigm has become obsolete with new trends and technologies in the corporate environment.

Oracle EPM Cloud is another excellent business software that can be effectively use for business performance management.

Oracle EPM has already incorporated cutting-edge innovative technologies into its cloud, enabling companies and corporate leaders to reinterpret their business processes and experiences.

Difference between corporate performance management and human performance management

Corporate performance management is focused on organizational goals and objectives, while human performance management is focused on individual employee goals and objectives.

Which type of CPM is right for your business?

That depends on your organization’s needs and priorities. For example, a financial system may be the best choice if you are looking for a more traditional approach to performance management. At the same time, an operational solution may make more sense if you are looking to improve operational efficiency or track customer satisfaction levels.
No matter which type you choose, the important thing is to select a system that will work for your organization and help you achieve your desired results. Then, with the right system in place, you can take your business performance to the next level!

Conclusion

Corporate performance management has nothing to do with employee feedback. In simple words, we can say BPM deals with how effectively you can execute your organization’s strategy.

Though EPM and enterprise resource planning (ERP)  systems are different, they work as complementary systems in business.

Whenever you hear the work of CPM from any corporate leader or corporate governor, it is strongly recommended to ask him whether he is discussing human performance management or corporate performance management.