Business management expert Peter Drucker said there is nothing worse than doing the wrong thing well. Corporate performance management (CPM), enabled by technology, can help you in these performance areas:
You
are drowning in data, but lack actionable information. You need
visibility into performance to find what’s relevant and distribute this
information in a timely way.
Your
planning systems are disconnected and unwieldy. You need to integrate
separate planning systems across departments so they work together.
You need a
common language that defines your business drivers and you need to
communicate them systematically throughout the organization.
You need a
complete line of sight across departments, into historical results, and
forward into projected returns, to understand the key drivers and
trends. You can then adjust your course of action as necessary
Make business more predictable: Planning and Consolidation
Eliminate problems such as:
Planning
and consolidation is inflexible and takes too long—the result is not
worth the effort.
Planning
and consolidation is inflexible and takes too long—the result is not
worth the effort.
Performance
targets are best-guess rather than predictable, leading to problems with
the market and shareholders.
Make people accountable: Scorecarding
Eliminate problems such as:
You
can’t communicate and distribute responsibility for your strategy as
effectively as you want.
It’s
difficult for people to know where action is needed the most. For
example, customer profitability is the boardroom goal but your metrics
are based on total revenue.
You base
performance metrics on what can be measured, rather than what you want
the strategy says you must accomplish.
