Often managers do not have an easy way to measure and monitor performance indicators – or an effective method for communicating goals and objectives. As a result, too much focus can be placed on financial indicators and lagging performance measures while not enough emphasis is given to critical operation metrics and key performance indicators (KPIs).
Companies risk wasting resources and efforts when they lack a commonly shared and understood strategy. In the absence of a shared source of metrics, managers may measure performance in areas not related to the corporate strategy or not aligned in the correct way.
The employees know they are responsible for driving corporate performance. However, not every employee knows if or when they are responsible for resolving a performance-related problem. Many problems persist or go unaddressed simply because no one person, team or department has been specifically assigned to resolving them.
Corporate Performance Management [CPM] is a set of management and analytic process, supported by technology, that enable businesses to define strategic goals and then measure and manage performance against those goals. CPM includes metrics, methodologies, processes and systems used to manage performance targeted at the corporate level.
Furthermore, Corporate Performance Management solutions must be comprehensive and span all performance levels to manage the interplay among all types of indicators and provide a unified vision of the organization. CPM also offers the following benefits:
- Improves decision making;
- Minimizes uncertainty and meets KPIs and Objectives;
- Focuses on the indicators that reflect strategy and are most critical;
- Synchronizes communication of goals, strategies and metrics across broad geographic areas and allows users to view, update, share and work simultaneously on common information;
- Minimizes problems associated with reporting detailed financial and operational data from multiple applications, databases and legacy systems;
- Empowers organizations to make faster, smarter decisions in real time by capturing and transforming data from operational back-end legacy systems into a real-time data storage;
- Integrates key management processes such as planning, budgeting, forecasting, consolidation, reporting and analysis within a single IT platform in a closed-loop environment.
A comprehensive Corporate Performance Management solution supports all stages of the CPM lifecycle, allowing you to plan your strategy, set goals, manage risks and initiatives, measure and monitor indicators, take corrective and preventive actions and report and analyze your performance with the enterprise organization.