Corporate Performance Management (CPM)

FP&A Trends TV Series: Forces Creating Modern FP&A

Forces Creating Modern FP&A

  • In this episode of the FP&A Trends Series Gary Cokins, recognised business analytics expert, author-president of Analytics-Based Performance Management LLC, shares his insights on forces that create modern FP&A. Learn about the key success factors that modern FP&A should take into consideration when embracing the analytical transformation journey.

CPM Framework Overview

by Michael Coveney, co-author of "Budgeting, Planning, and Forecasting in Uncertain Times"

CPM is concerned with the way in which an organisation manages its overall performance. As defined by Gartner it involves combining the methodologies used to manage strategy, the metrics that evaluate performance and the processes used to direct people within the organisation – all of which should be supported by a technology solution. 

Evaluating CPM/FP&A System: Nine Key Areas for Consideration

by Michael Coveney, co-author of "Budgeting, Planning, and Forecasting in Uncertain Times"

 

There are many software products that claim to support CPM, but often they only support some aspects, for example, financial planning, and reporting. One of the issues is that the term CPM is synonymous with budgeting, forecasting and management reporting which by itself cannot provide a complete solution. 
Similarly, some vendors have multiple products covering different parts of CPM. For example, many have a scorecard application that they deem suitable for strategy management; a separate solution for collecting budgets and forecasts; and yet another for reporting and analysis. In the context of this framework, these multiple solutions can only work if they are truly integrated and can be made to operate as a single system. Without this level of the integration, system maintenance becomes an unbearable nightmare that cannot suitably adapt to the dynamics of the economic environment. 

This article gives an overview of 9 key areas that should be considered for the overall evaluation of CPM/ FP&A system.

Exceptional EPM/CPM Systems are an Exception

By Gary Cokins, Founder and CEO: Analytics-Based Performance Management LLC

Quite naturally, many organizations over-rate the quality of their enterprise and corporate performance management (EPM/CPM) practices and systems.   In reality they lack in being comprehensive and how integrated they are. For example, when you ask executives how well they measure and report either costs or non-financial performance measures, most proudly boast that they are very good. Again, this is inconsistent and conflicts with surveys where anonymous replies from mid-level managers candidly score them as “needs much improvement.”

Every organization cannot be above average!

 

How to Build Corporate Performance Management Workflow

by Michael Coveney, co-author of "Budgeting, Planning, and Forecasting in Uncertain Times"

 

Workflow is critical to a CPM application in the same way that it is critical to ERP. It is through a workflow that users are directed and their attention focused on their roles and responsibilities through the different performance management processes. 
The activities involved tend to be classified into the management processes. To construct the right CPM processes, which together should focus on achieving the organisation’s mission, we will have to define its purpose, activity and timing for the process.

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