Corporate Performance Management Process
The business performance management methodology is a subset of business intelligence that focuses on the communication, alignment and execution of strategies through frameworks. These frameworks address financial processes to garner success.
The CPM processes include:
- Defining the business model: Set the goals that you want your company to achieve. You can use your CPM to adjust your budget, reduce expenses, improve your strategies and more.
- Forecasting, budgeting and planning: Determine strategic and financial goals by working with your finance team, executives and stakeholders.
- Financial close management: CPM management validates budgets and forecasts against financial performance, going a step beyond ordinary accounting procedures.
- Reporting: Reports are sent out to let stakeholders know all the information needed to make business decisions. CPM software also ensures compliance with reporting standards and transparency.
- Modeling and analysis: Models test ideas through many scenarios, so you can predict changes and prepare for them. Analysis studies operating factors and business performance to identify correlations, compare actual performance to target goals and make changes to meet these goals. Based on the results of the first round of testing, CPM continues to put models through what-if scenarios and gather more data.