Corporate performance management is an umbrella term that includes methodologies, processes and technologies used to measure and monitor corporate health.
Also called business performance management and enterprise performance management, CPM can help organizations build better budgets, reduce costs, create alignment in key performance indicators, improve financial processes and more. CPM tools include forecasting, budgeting and planning functions -- to name just a few -- and relies on reader-friendly visuals to quickly display information. Although such a reliance on dashboards and visual scorecards can sound very similar to business intelligence, it is distinct from BI, although often used in close conjunction with it.
CPM began as a way of taking the pulse of the finance department, looking at factors such as forecasting, budget and planning, and the information was shared only with stakeholders related to finance. CPM typically still begins in finance, but its role has expanded. Over time, business leaders realized it could be used to measure other key indicators of success, such as strategic planning and employee performance, and as an overall measure of other domains, such as sales. CPM software often is targeted to specific business processes, such as supply chain management. In addition, many businesses create CPM programs around a business methodology, such as balanced scorecard.
This guide gives a bird's-eye view of what corporate performance management can mean to your company, shares some real-life examples and provides some basics on the vendor landscape.
Get to know corporate performance management
How good is the corporate health of your company? This is a question that corporate performance management can help you answer. But given that CPM can be a confusing term, first we share some basics on what it is and how it differs from BI before covering some of its potential functions.
A question that confuses many executives is: What is the difference between BI and CPM? Consultant Hyoun Park shares his thoughts. Continue Reading
Inventory and cash measures are some of the most powerful tools for aligning operations with finance in a comprehensive process for corporate performance management. Here's a look. Continue Reading
Companies can benefit from further integrating CPM tools and BI, whether they're still evaluating corporate performance management or already using CPM and BI software. Continue Reading
As strategic CPM becomes a key point of differentiation among vendors, you'll need to understand how it differs from CPM in the office of finance. Continue Reading
Manufacturing provides a compelling case for why CPM software must get better at handling complex operational needs such as rolling forecasts. Continue Reading
2CPM in action-
How CPM can help your company
CPM can help you align operational and financial data to drive enterprise-wide performance improvements and foster better corporate health. But before you can do that, you need to understand the factors that influence CPM success.
Real improvement can only come from choosing the right performance measures and getting employees invested in them, says an expert from benchmarking organization APQC. Continue Reading
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3The CPM marketplace-
CPM tools to measure corporate health
Although the software is just one piece of the corporate performance management puzzle, it's a critical one. This section helps you get a lay of the CPM vendor landscape so that you can begin to make informed and strategic decisions about your CPM roadmap.
CPM software gets a boost from these specialized budgeting, analytics and data repository tools to better align marketing initiatives with organizational goals. Continue Reading
In this video John Power, president and CEO of corporate performance management software vendor Longview Solutions, shares CPM trends and buying tips. For example, Power explains how big data is affecting CPM software buying, and why the alignment of operations and financial information is becoming increasingly important. Continue Reading
Business planning often requires identifying the best option among many. Optimization software can be a big help. Continue Reading