Operational and business executives require clear transparency and timely analytics to drive strategic delivery and value creation. However, Management Reporting is often an inefficient foundational process in many large companies. Burdened with on-going data validations and multiple versions of the truth, businesses are unable to continuously monitor performance against expectations, align budgets and forecasts with business objectives, and establish cost effective solutions across all lines of business.
How Enterprise Performance Management Can Help
Enterprise performance management (EPM) enables effective development, execution, and measurement of an organization’s objectives. At its core, EPM helps organizations answer four key questions:
- What are our objectives?
- How are we performing against our objectives?
- How do we communicate our performance?
- What is driving these results—and how can we improve?
Elements of an Effective EPM Solution
An effective EPM solution is:
EFFICIENT: Makes efficient use of stakeholders’ time and is not burdensome to the organization. Delivers information to the right people at the right time.
INSIGHTFUL: Delivers meaningful insights into relevant drivers of performance. Provides a platform that can be used to analyze business performance at the necessary level of granularity.
ACCURATE: Ensures the numbers are correct. Helps all stakeholders understand what those numbers mean.
ACTIONABLE: Provides insight into how business performance can be improved. Helps stakeholders identify an optimal course of action to best improve performance.
INTEGRATED: Provides a single source of information to unify understanding of enterprise-wide performance. Ensures clear linkages exist for each function’s contribution to organizational objectives.
What Does EPM Success Look Like?
EPM success looks different for every organization. Some organizations work toward an efficient and effective close while others pursue sophisticated techniques to model future business performance. An organization’s level of EPM success progresses from hindsight to insight and ultimately to foresight. There are also different capabilities within the organization that can reflect different levels of success.