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Corporate Performance Management in 2018


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This article talks about leveraging the right CPM tools to analyze and manage data.

The goal of the blog this year is to provide executives, leadership teams, and those with company decision-making capabilities with a non-technical guide to assist them in understanding the benefits and of modern CPM tools and to help them in the analysis of their own company’s current versus ideal-state capabilities to support optimal decision-making. By the October of this year, if following this blog, the purpose is for the reader to be an executive-level expert on this matter so you can help lead your management and project teams to decide on and deploy a CPM platform that will have an immense impact on the performance of your organization.

Image taken from PhotoFunia.

Here are some of the key findings from a survey published by McKinsey & Company. They received 2,327 responses from executives across the world and across all major industries. Organizations who responded to the survey reported making decisions related to the following:

  • Product, service, or geographic expansion
  • General organizational changes
  • Investment in current products, services, or geographic areas
  • New infrastructures
  • Mergers and acquisitions
  • Maintaining the current infrastructure

The same survey also asked respondents about the multiple discussions that were key to their decision-making processes. One of these topics was the problem of who would participate in the decision-making process. The results from the survey show that transparency, alignment with corporate strategy, and including key employees all contribute to the success of the decision-making process.

So, the New Year’s resolution of this blog is to focus on how technology can be used as a main enabler of world-class decision-making across your company. Instead of implementing a complete, integrated CPM solution, most organizations have until now lacked a cohesive data management and analysis strategy, and they are still being reactive to their decision-makers’ pursuit of more and better information by just adding a dashboard tool or replacing a report writer. Some try to confront the problem at the transaction level by attempting to build a home-grown data warehouse or by implementing a budgeting and forecasting point solution and hoping to achieve progressive benefits. While it is completely fine to replace a particular CPM tool, like exchanging an older live ERP report writer with a new one to best serve a small group of users such as the accounting team, you need to think bigger if you aspire to enable world-class decision-making. There are several reasons and the return on investment (ROI) can be high by implementing a complete planning, reporting and analysis suite that can serve organization-wide managers and information workers with the information they need for better decisions. Every company that wants to be competitive will have this platform in the future, and some are already on their way. It is not implemented overnight because a successful solution requires good internal processes as well as reasonably clean transaction data, and of course it requires a highly flexible and user-friendly CPM solution to bring it all together.

 

To read more about CPM in 2018, click here.

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