What is it about?
Enterprise and corporate performance management (EPM/CPM) 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-line, channel, and customer profitability analysis (using activity-based costing [ABC] principles); and lean and Six Sigma quality management for operational improvement.
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Why is it important?
Most organizations implement EPM/CPM methods 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.
Perspectives
Many CFOs continue to use management accounting practices from the 1960s. They need to get into the 21st century using progressive EPM/CPM methods. These methods can be easily implemented in weeks, not months, using a rapid prototyping with iterative remodeling approach which is a consulting offering I provide. Crawl, walk, run, and fly. Start with the “crawl” to accelerate learning and buy-in.
Mr Gary Cokins
Analytics-Based Performance Management LLC
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This page is a summary of: Performance Management, January 2012, Wiley,
DOI: 10.1002/9781119205548.
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