CPM, or corporate performance management, is the term used to describe the collection of systems, processes, metrics and methodologies used to manage and monitor an enterprise’s business performance. CPM applications and technologies translate information with a strategic focus to operational plans and deliver aggregated results.
CPM applications can also address requirements for customer relationship optimisation or business activity monitoring (BAM). An introduction to BAM can be found in the embedded short video.
CPM is an essential part of setting up and growing a business. Visit the Ahmed Dahab Twitter page to find more advice on establishing and expanding a business.
CPM helps organisations to improve their business management practices through the use of proven methodologies and tried-and-tested processes.
CPM utilises metrics from a variety of sources to feed back relevant information that can be used to improve the way a business operates. These can include accounting data such as income statements, balance sheets and cash flow statements, as well as forecasting and budgeting data such as inventory, expense and revenue reports.
Frameworks for Performance Management
As well as the use of metrics, CPM requires a set of frameworks to measure the effectiveness of the systems and processes that are in operation. These frameworks might include KPI (key performance indicators), Six Sigma (a data-driven framework), MPO (which maps strategies and trends), balance scorecards, or an EFQM excellence model. More details about the EFQM excellence model can be seen in the PDF attachment to this post.
BI, or business intelligence, is closely linked to CPM – so much so that there is often some convergence between the two categories. Many platforms therefore offer BI and CPM capabilities in one package. CPM guides organisations using data gathered through BI to help a company reach its strategic objectives.
CPM systems must be able to be seamlessly integrated with BI systems – the infographic attachment looks at how to evaluate the different types of available CPM software to choose the right one for your organisation.
CPM Software Features
CPM software has multiple uses and features which can be used to optimise the systems and processes that underpin business operations. These include budgeting, forecasting and planning, financial reporting and analytics, profitability modelling, overheads and operational costs, financial compliance and reporting, calculating ROI, and financial consolidation and close.