Description of enterprise and corporate performance management (EPM/CPM) methods.
What is it about?
Many organizations are far from where they want and need to be with improving performance, and they apply intuition, rather than hard data, when making decisions. Enterprise performance management (EPM) is now viewed as the seamless integration of managerial methods such as strategy execution with a strategy map and its companion balanced scorecard (KPIs) and operational dashboards (PIs); enterprise risk management (ERM); capacity-sensitive driver-based budgets and rolling financial forecasts; product / service / channel / customer profitability analysis (using activity-based costing [ABC] principles); customer lifetime value (CLV); lean and Six Sigma quality management for operational improvement; and resource capacity spending planning. Each method should be embedded with business analytics of all flavors, such as correlation, segmentation and regression analysis, and especially predictive analytics as a bridge to prescriptive analytics to yield the best (ideally optimal) decisions. This text describes how to complete the full vision of analytics-based enterprise performance management.
Why is it important?
Most organizations implement enterprise and corporate performance management (EPM/CPM) methods, including the Balanced Scorecard, in isolation of each other. There is synergy when an organization seamlessly integrates them, and even more power when one imbeds business analytics of all flavors (e.g., regression, correlation analysis) into each method.
The following have contributed to this page: Mr Gary Cokins