Corporate Performance Management (CPM) refers to a tool used by corporations to formulate organizational strategies through prescribed methodologies, data analysis, processing, and reporting to monitor and manage the performance of an enterprise. In other words, CPM helps corporations use proven and tested methods and processes to improve their business management.
Corporate performance management (CPM) is a term used to describe the various processes and methodologies involved in aligning an organization’s strategies and goals to its plans and executions in order to control the success of the company. CPM is a subset of business intelligence (BI) that involves monitoring and managing an organization’s performance, according to key performance indicators (KPIs) such as revenue, return on investment (ROI), overhead and operational costs. However, it is important to recognize that CPM is not a specific strategy. For CPM to be useful, organizations must create a suite of analytical applications that can support the processes, methods and metrics used in corporate performance management.
Balance Scorecards: A collection of several organizations’ viewpoints
EFQM Excellence Model: A framework that bases strategies on how a competitive organization should operate.
MPO: Maps strategies or trends of how a business should be adapting to the changing global business experiences.
Six Sigma: A data-driven framework that ensures the successful operations of a company by eliminating defects by using a simple DMAIC (define, measure, analyze, improve, and control) approach.
Key Performance Indicators (KPIs): Measures performance of the above frameworks.
Performance management software has smart dashboards that contain every measurable metric a management team may need to use in its decision-making. However, the advantage is not in the variety. It’s in the ability to read and use data as changes happen in real-time across all parts of the organization.
Data consolidation for easy management
The tools have the intelligence to gather, group, and combine data from multiple sources, be it departments, spreadsheets, or even companies.
Provide ease of risk management
One significant advantage of CPM is the integration of tools such as what-if models. For instance, the model empowers managers to mitigate risks and make informed decisions based on the simulation of the best- and worst-case scenarios.
Provide simple data feedback and access
Performance management tools enable managers to have ease of access to information while still fostering accuracy and quality.
Ease of collaboration
CPM tools are not only locally integrated but also cloud-connected to allow all users to stay in sync across all departments.