Corporate performance management (CPM) is related to business intelligence (BI) and is involved with monitoring and managing an organization's performance, according to key performance indicators (KPIs) such as revenue, return on investment (ROI), overhead, and operational costs.
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Corporate performance management, also called enterprise performance management (EPM), describes the practices that help companies plan and manage the financial success of their organization. A CPM system is a finance tool that monitors and manages an organization's performance according to key performance indicators. These metrics are often finance-driven, such as revenue, spend, and return on investment. Corporate performance management can also focus on other strategic corporate goals, such as increasing operational efficiency or improving corporate strategy.
Corporate performance management systems heavily support financial budgeting, planning, and forecasting. They help leaders manage strategy and track the company’s financial health against goals. CPM tools are commonly used by the finance department but are increasingly designed to be used across the enterprise.
Corporate Performance Management (CPM) is closely related to Business Intelligence (BI). The fact that these categories are so closely related has led to some category convergence. A number of products offer both CPM and BI capabilities in the same platform.
CPM leverages the data provided by BI to guide the organization towards its strategic objectives. The metrics and scorecards that are the endpoint of BI systems are the starting point of CPM. CPM systems link those metrics to the strategic and financial goals of the organization.
BI is focused on gathering and processing disparate data and presenting it in an easy to digest form like a report, visualization, or dashboard. However, reporting is not necessarily linked to an organization’s strategy. It does not include any mechanisms for planning, controlling, or managing towards business objectives or KPIs.
Corporate performance management software focus on a process-oriented set of tasks that involves financial activities, including:
In corporate performance management software, budgeting and forecasting capabilities are designed to assist with both operational short-term planning and strategic long-term planning:
Consolidation and close features allow CPM software users to combine and examine data from multiple entities:
These CPM tool features assist users with their financial statements and regulatory filings:
These tools for at-a-glance and in-depth analysis help CPM users interpret performance metrics in the context of their company's larger strategic goals:
It is vitally important for a CPM system to integrate with a company's BI system. The BI system feeds the CPM system performance data. The CPM system links performance data with strategic and financial data for the purpose of higher level planning and assessment. Types of integration include:
To compare different CPM tools, you might want to consider evaluating options based on these factors:
Pricing varies widely depending on whether tools are designed to serve SMBs or enterprises. Subscription pricing structure is usually per seat per month, with lower pricing for read-only seats. Enterprises are typically paying in the region of $25k total subscription price for leading solutions.
