Corporate Performance Management or CPM guides companies in today’s information-saturated business world. Like information systems management or agile project management methods, it is a widespread concept. But it is more important than ever to have reliable information. Information that gives you confidence in the numbers at any given time.
Definition of Corporate Performance Management (CPM)
CPM and its software simplify and accelerate the process of data collection. It does this for statutory management purposes and makes it visible to all who need it. It also enables accurate financial reporting. But also, to control key business processes in the strategic and operational management of the company.
There are many ways to define and describe performance management. The good news is that they all focus on a common goal:
Linking the business with strategy and operations through key performance indicators (KPIs).
Methodologies, metrics, processes, and systems are implemented. These are the essential ingredients for successful performance management. This approach is about corporate governance.
The CPM methodology
First, systematic, and sustainable procedures for monitoring, evaluating and improving business performance.
For example, the Balanced Scorecard, Economic Value Added, Activity Based Costing and the Six Sigma method.
Real-time metrics captured in a web-based dashboard focused on key issues and critical data for dynamic decision making.
That is, ROI or Return on Investment, CRM or Customer Relationship Management, supply chain analysis and management.
Corporate Performance Management processes
Performance feedback loops link the strategic, operational, and financial levels. And offer the possibility to respond to dynamic market conditions. This means formulating the strategy, planning it and managing the implementation budget.
The processes differ from case to case:
- Strategic Corporate Performance Management (SCPM) is the strategic management vision.
- Financial Corporate Performance Management (FCPM) as the management’s financial vision.
Finally, CPM systems, as technological solutions, or information systems, combine methodology, indicators, and processes.
Indeed, on a single company scale, which includes the environmental component, they enable analytical reports designed to monitor, understand, and manage.
Finally, in a more practical way, data warehouses and Decision Support Systems (DSS) contain the data used to make decisions and monitor indicators on a regular basis.