Corporate Performance Management (CPM) is the mechanism for making the right information available in a timely and efficient manner, to the right decision makers who are appropriately incentivised to drive performance.
Simply put; CPM = The Right Management Information + The Right Behaviours
While the term CPM may not be familiar to all, the underlying processes that deliver the composite parts to the right management information are; strategic planning, budgeting and forecasting, closing the books etc
Companies struggle to transform strategies into actionable metrics and they grapple with meaningful analysis to expose the cause-and-effect relationships that, if understood, could give profitable insight to their operational decision-makers.
Many businesses now operate in networks spanning multiple locations and entities. Globalisation has made these organisations more complex and thus more difficult to manage. This was never more evident that during the credit crisis and resulting global recession in 2009. Senior management found they lacked information they could trust at the right levels within the organisation not only to make quick and effective decisions required in the volatile market conditions but also just for good governance.
Different ERP technologies used in the aforementioned entities need to be integrated. Those businesses that did invest millions in a new single ERP have found that whilst this has helped them roll out standard processes across their multiple location and entities, it has not necessarily given them the management information in the dimensions they need to run the business.
The regulatory burden is growing, and connectivity is forcing many companies to become more transparent. Sustainability is also becoming a critical agenda for investors.
Robust, timely management information is therefore essential to meet all these requirements and drive the business forward. All of the above factors, when combined with the inability to effectively change behaviours, have left many organisations in the eye of a CPM “perfect storm”.
CPM methods and software allow a systematic, integrated approach that links enterprise-wide strategy to core processes and into metrics to drive behaviours. An effective CPM empowers the right management decisions.
In order to help organisations navigate many of these issues, PricewaterhouseCoopers has been significantly investing in its CPM capabilities including recently acquiring a CPM business, Paragon Consulting Group. Paragon is a leader in CPM technology and this acquisition means that PwC can provide a full CPM proposition, from the initial ideas to successful implementation of corporate performance management processes, systems and metrics.
Meeting Your Needs
What are your performance management issues? Here are some that we regularly address:-
How PricewaterhouseCoopers can help you
PricewaterhouseCoopers' end-to-end approach to CPM helps our clients improve management information and prospective visibility through alignment of financial, operational and regulatory metrics that drive accountabilities, decision support and operational execution. With a focused and proven approach, we help clients to: