As the business world becomes more competitive, building and sustaining a successful business requires executives, managers, and employees to understand the company’s strategy, so their own goals and plans align with the organization’s objectives. Making this connection requires a thoughtful management process. For most companies, it also requires technology.
A corporate performance management solution (CPM) links the organization’s strategy with its execution—with the decisions, plans, and actions carried out across the enterprise. CPM solutions provide critical insight and visibility to executive teams that can inform the decision-making and planning processes to propel the organization forward.
Note: CPM solutions are sometimes referred to as enterprise performance management (EPM), business performance management (BPM) or financial performance management (FPM) solutions.
CPM in Action
CPM solutions, such as OneStream Software, unifies information from disparate systems, such as the enterprise resource planning (ERP), ecommerce, and human capital management systems, to provide insight on operations across the organization. It cuts the time needed to gather data, so everyone from top leaders to front-line employees can focus on optimizing decisions and resources, and boosting performance.
For instance, CPM solutions can apply the information they’ve assembled to model various scenarios and offer an understanding of their financial impact—particularly key in times of upheaval. A CPM solution can also support processes like budgeting, planning, and the financial close.
CPM Within the IT Toolbox
At first glance, it might seem as if an organization that already has an ERP or business intelligence system doesn’t need a CPM solution. However, CPM solutions complement these tools.
An ERP system helps run day-to-day business operations. It may take orders, distribute products, and initiate billing. A CPM both complements the ERP solution and sits a layer above it. While the ERP handles transactions, a CPM solution provides direction to the organization and helps guide it toward its goals.
Data analytics and reporting tools can also appear similar to CPM solutions. The two are distinct, however. Data reporting solutions show where the organization is going. A CPM solution can direct the organization forward, helping it navigate obstacles so it can continue to execute its strategy. In this way, CPM solutions provide agility and visibility—also both key when the business environment is rapidly changing.
Most companies find it difficult to take a corporate performance management approach without technology. While very small businesses might be able to work with spreadsheets, as soon as they start offering multiple products or services, they’ll typically need a CPM solution that can manage organization-wide goal setting and reporting.
Once up and running, a CPM can provide flexibility in reporting and analysis. For instance, most can support multiple hierarchies, providing performance information by legal entity or management structure. This helps highlight performance by specific department or unit.
A CPM solution also can quickly offer an understanding of the likely impact of a reorganization, acquisition, or other corporate change. After an organization completes an acquisition, integrating the newcomer into the CPM solution typically takes days.
Like many technical solutions, prices for cloud-based CPM solutions have dropped. Many are now within the budgets of a wide range of organizations, including mid-sized firms.
The OneStream Software Platform offers a single, unified platform that assembles key financial processes within one place. Organizations can use it to quickly review key signals on a weekly or even daily basis, rather than waiting for month end. This accelerates planning and analysis and facilitates more timely decisions.
Often, OneStream Software replaces multiple legacy systems, simplifying the IT environment and reducing manual data gathering, reconciliation and movement. Through the data-driven financial and operational insight it provides, OneStream can empower the organization and accelerate its movement toward its goals.
HollandParker is a Diamond-Level OneStream implementation Partner with an extensive record of successful implementations. Its team of qualified, experienced experts can help your organization achieve its goals and optimize its investment in OneStream.
To learn more about our capabilities supporting your organization’s migration to OneStream, contact us today to schedule a free consultation. We are ready to support your organization’s financial transformation!