Corporate Performance Management (CPM), also called Enterprise Performance Management, is an umbrella term used to describe the methodologies and processes that help to manage an organization’s success. One of the most prominent frameworks is the Balanced Scorecard (BSC), which is a strategic planning and management system that considers several organizational perspectives (in addition to just the financial angle). Organizations are also using the EFQM Excellence Model and Six Sigma. Key Performance Indicators (KPIs) are typically used to measure the success of these frameworks in action.
There are several challenges that can be an obstacle to effective performance management. We can sum them up into just three.Writing a poorly structured strategy – companies fail to pick top priorities and determine how they will support them through goals and actions; failure to communicate strategy– it’s vitally important to communicate the strategy to staff so they know what is expected of them and how to measure success; not measuring progress – the progress made toward goals must be measured on a regular basis. Performance management is an ongoing process. Planning, communicating, measuring and adapting to changing conditions are essential parts of that ongoing cycle.
The Solution – SoftExpert CPM
SoftExpert CPM is a web-based performance management software that helps organizations to manage the strategy formulation process, translate it into practical actions and monitor performance and execution in a simple way.
The solution empowers organizations with a full set of capabilities to transform strategy into operational objectives, driving both behavior and performance, defining and collecting metrics to measure and control business performance and measure progress. Managers can track and analyze performance in real time through flexible and interactive dashboards, improving management comprehension which leads to better, faster and more relevant decisions forward to action.
With the SoftExpert solution for Corporate Performance Management, organizations are confidently and more easily provided consistent access to information with optimized performance. Companies can maximize their investments with a solution that is modular, meeting immediate business demands and challenges, yet integrated for a more complete solution, creating greater value. The solution supports management of performance deviations, strategic and operational risks, projects, action plans, financial resources and processes, as well as a wide range of best-in-class performance management models and practices, like Balanced Scorecard, Six Sigma, and others.
Corporate Performance Management – CPM
SoftExpert CPM leverages a controlled workflow to manage input processes, which includes due dates and task reminders, such as data entry, approvals, revisions, or adjustments. The software makes data entry simple for users, eliminating the task of gathering multiple data items or cutting and pasting data. It streamlines information flow by automatically integrating and consolidating data from different sources (external databases, Excel spreadsheets, formulas) and provides access to users anytime and anywhere.
The software offers strategy maps, analytical graphs and diagrams designed to help in understanding the cause-and-effect relationships of key processes, objectives and key performance indicators. It also provides a tool to solve performance problems and define appropriate actions for the team in charge, creating a culture of performance.
Minimize uncertainty and meet KPIs and objectives.
Focus on the indicators that reflect strategy and are most critical.
Manage quantitative data and qualitative updates in one place.
Synchronize communication of goals, strategies and metrics across broad geographic areas and allows users to view, update, share and work on common information simultaneously.
Minimize problems associated with reporting detailed financial and operational data from multiple applications, databases and legacy systems.
Make faster and smarter decisions by capturing and transforming data from operational back-end legacy systems into real-time data storage.
Integrate key management processes within a single IT platform in a closed-loop environment.
Reduce risk with consistently-updated data, version-controlled plans, and driver-based models.
Spend less time compiling numbers and spend more time advising business partners on the insights obtained from self-service and interactive dashboards, even on mobile devices.
Return on Investment (ROI)
Traditionally, when enterprise professionals discuss the ROI of an investment, they are mostly thinking of "financial" benefits. Today, organizations must also consider the "non financial" benefits of an investment.
Financial Benefits include impacts on the organization's budget and finances, e.g., reduced costs or increased revenues.
Non-Financial Benefits are the so-called "intangible", "soft," or "unquantifiable" benefits of an investment. Unlike financial returns, there may be no widely-accepted metrics for organizations to apply. However, the SoftExpert solutions present undeniable potential for producing positive impacts on business performance and mission results. These include improved customer satisfaction, more precise information and a shorter cycle time.
It’s hard, if not impossible, to calculate the ROI of better decision making. Unlike some IT systems that replace more expensive systems, manual processes or headcount, performance application’s benefits are often “soft” or intangible. While there may be some ROI metrics that support a business case, CPM projects often require a bit of faith on the part of the people writing the checks – and some savvy selling by IT and business users.
The SoftExpert Corporate Performance Management (CPM) solution offers the following benefits:
- Increase productivity. Optimized business processes creation of scorecard templates and structured performance management planning, execution and control will allow your staff to achieve better results in less time.
- Reduces the budgeting cycle by eliminating spreadsheet management, data transfer errors, manual reconciliation and version control issues.
- Leverages zero footprint to minimize maintenance costs while providing extensive hierarchical drill-down and analysis capabilities.
- Reduced time and effort for tasks such as planning and budgeting.
- Reduced budget spending, especially in the wrong metrics. Attention must be sustained on metrics that are actionable, predictive and connected to the big picture lagging indicators.
- Cuts costs and increases revenue by:
- Increasing collaboration on data and knowledge.
- Eliminating manual errors.
- Automating input of data.
- Facilitating the performing of tasks.
- Accelerating cycle times for key processes.
- Reducing time with custom implementations and integrations.
- The investment in SoftExpert CPM will depend upon the business unit size and implementation approach.
Return on Investment (%)
- (((Total Annual Savings x n years) – Initial Investment) / Initial Investment) x 100.
Payback Period (years)
- Initial Investment / Total Annual Savings.
Non Financial ROI:
- Ensures goal alignment between business strategies, business measures and business actions.
- Improves consolidation process accesses combining all corporate data regardless of source for an enterprise-wide snapshot of performance.
- Provides streamline reporting minimizing problems associated with reporting detailed financial and operational data form multiple applications.
- Increases collaborative management synchronizing communication of goals, strategies and metrics across broad geographic areas.
- Eliminates alternative versioning and data integrity issues.
- Enhances an organization’s ability to separate critical information from extensive “mounds of data”.
- Empowers organizations to make faster, smarter decisions in real time by capturing and transforming data from operational back-end legacy systems and customer-facing front-end systems into a real-time (or near real-time) data store.
- Reduces the number of tasks done manually and automatically decreases the number of resources needed.
- Provides integration of compliance management capabilities into current business processes to support regulatory compliance.
- Helps to increase corporate transparency.
- Helps to balance short-term, middle-term and long-term trade-offs.
- Encourages value-creating investments.
- Improves the allocation of resources, streamlines planning and budgeting.
- Helps to better deal with increased complexity and greater uncertainty and risk.
8 Essential Features of Great Performance Management Solutions
Do you listen to your performance measures?