Corporate Performance Management
CPM (Corporate Performance Management)
As defined by Gartner, CPM is an umbrella term that describes the methodologies, metrics, processes and systems used to monitor and manage the business performance of an enterprise.
CPM may also be labelled BPM (Business Performance Management), EPM (Enterprise Performance Management) and FPM (Financial Performance Management).
What is Corporate Performance Management (CPM)?
Corporate performance management (CPM) is a process and methodology that provides an integrated approach to business planning, budgeting and forecasting covering the finance, sales, marketing, operations and HR functions of the Enterprise. Once implemented it links the strategies of an organization to their plans and execution, therefore helping organizations succeed. To support this, CPM includes the following management processes:
- Goal-setting and defining the business model
- Budgeting, planning, and forecasting
- Consolidating results and closing the books on a periodic basis
- Reporting results to internal and external stakeholders
- Analysing performance vs. plan, prior years, across divisions or products
- Then modelling again – creating what-if scenarios
Why is CPM important?
Delivering the strategy is the key focus for senior executives today and CPM is a way to help ensure that strategies get executed. By integrating organisational goals, metrics, and projects, your company is aligned around strategic priorities and can focus on the key drivers of the business.