Are you looking for details on corporate performance management (CPM) software? Look no further. You find all the details you need to know about it here.
There are a lot of industry-specific terms that you need to be aware of when it comes to business intelligence and strategy management.
One of the well-known corporate-related terminologies is corporate performance management.
Corporate Performance Management is often used with different names, such as Business Performance Management( BPM), Enterprise Performance Management( EPM), and Financial Performance Management( FPM).
I am using the above terms interchangeably throughout this post.
You also find the unbiased, well-researched list of top EPM software systems and details about them.
Let us start by getting clarity on what it is.
What is Corporate Performance Management or Enterprise Performance Management?
Definition: Corporate performance management is to understand and evaluate a business or organization’s current situation with best practices and identify opportunities and means of 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 manages their day-to-day business activities.
It helps tackle sales, budgeting, forecasting, marketing, HR, operational expenses, and many more.
Once the practical methodology of enterprise performance management is properly implemented, it correlates the effective strategy of an organization and its 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:
- Setting the long-term goal of an organization and frame 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 stakeholders of the company, 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, performance of the company 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” that is primarily used to describe methodologies and set of effective steps that an individual can leverage to manage an organization and achieve its long-term goals successfully.
CPM 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 budget
- Shrink the cost incurred on production
- Improve their financial planning process
- Take their organization strategy to the next level
- Better align KPIs
It is worth noted 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 on them to implement a framework to see that corporate performance is being managed.
To achieve this goal, different strategies and management methodologies are already utilized. One of the most well-known effective strategies of them all 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 emphasize the strategy execution overly 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 CPM’s 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.
- Detailed analysis of their current business process and its performance.
- Detailed analysis of the process and performance of other businesses.
- Comparing and examining their own business with other businesses.
- Implement the steps needed for closing 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 corporate performance management can be divided into five categories.
- Financial: This category of performance measurement consists of the performance of all financial terms such as profit, cost, and sales.
- 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.
- 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.
- Obedience: The organization should obedient to employment rules & regulations, environmental acts, and financial reporting.
- Approach: It shows the way of executing 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 EPM software is precisely designed to bring perfection to business intelligence systems.
Here is the list of some of the 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 that is mostly 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.
Prophix is arguably the best software for corporate performance management. The tasks which this software can accomplish very easily include 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.
Anaplan is software that has completely revolutionized connected planning. Nowadays, 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 great 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 quite aware of the fact that with the advent of new trends and technologies in the corporate environment, the old paradigm has become obsolete.
Oracle EPM Cloud is another excellent business software that can be effectively used for business performance management.
Oracle EPM has already incorporated all the cutting-edge innovative technologies into their cloud, enabling companies and corporate leaders to reinterpret their business processes and experiences.
Difference between corporate performance management and human performance management
- CPM is a parameter of business intelligence. It gives attention to proper communication throughout the company and the execution of company strategies. It does not give attention to employee reviews.
- HPM is a parameter of human resource management. It gives attention to employee productivity, satisfaction, and reviews.
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.