What is Performance Management?
Business Performance Management is a set of management and analytics processes that enables the management of an organization’s performance to achieve one or more pre-selected goals. Synonyms for “business performance management” include “corporate performance management (CPM) ” and “enterprise performance management”. – Wikipedia
In the business analytics world, performance management is typically referred to as corporate performance management (CPM). CPM has definitely made its way out of just the finance department and is often found throughout the enterprise. Though a bit of an ambiguous term, it typically encompasses the systems that enable forecasting, planning, and presentation of performance indicators in conjunction with goals, plans, or strategies. Decision support systems and balanced scorecards are a great examples of corporate performance management in practice.
Organizations that employ full CPM systems are able to take a closed loop approach to managing execution, aligning actions with plans, and continuously adjusting. Leaders understand direction and expected outcomes and can align their portion of the business accordingly. Performance against those expected outcomes are easily gleaned and adjustments are able to be made in flight. Plans are then able to be dynamically adjusted based on recent performance, new objectives/approaches, etc.
Analytics has progressed far past production reporting, and CPM systems help operations focused organizations move towards implementing, measuring, and achieving strategic objectives. The advantages of a closed loop corporate performance management approach include:
- Strategy focused organization, operating to plan
- Agile organization well equipped to handle change
- Results focused via clear expectations
- Greater accuracy in forecasting business results
- More dynamic planning process
- Holistic view of performance
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PerformanceG2 works with organizations to understand pain points and develop and implement projects that overcome challenges and produce significant results. We work with cross-industry organizations to provide the best tools and solutions for performance management, business intelligence and business analytics needs.