Proper Corporate Performance Management Helps Point Your Business Towards Success
Are you utilizing proper corporate performance management (CPM) to enhance your top-level strategies?
Business Intelligence (BI) is everything to the modern high-powered business. It’s not enough to merely have a functioning company. You need to be keeping tabs on as many granular details of your operations as possible – and that includes what’s happening in upper management. Corporate Performance Management is the solution that helps ensure the top of the company, and the rest, are properly in alignment.
CPM Is Not HPM
Before we dig into CPM, there’s one important thing to touch on: CPM is a different concept from human performance management. HPM is a form of HR tracking and measuring which focuses on aspects such as worker productivity, morale, and capabilities. HPM is how you keep tabs on your workforce and ensure they’re properly motivated while operating near-peak efficiency.
CPM, on the other hand, is focused on the big picture. It’s tracking enterprise-wide metrics and comparing them against strategic goals to track the overall success of your operation.
What CPM Tracks & EnablesCPM is a form of business intelligence, a blanket term covering several critical aspects of top-level management such as:
Cost tracking & reduction
Budget modeling & forecasting
KPI tracking & alignment
Efficiency & performance management
It’s important to understand that CPM is only BI, rather than a strategy in and of itself. CPM is what brings you the intelligence necessary to create smart strategies and track their success. Techniques such as the Balanced Scorecard then take in that intelligence and show you what’s succeeding – and what isn’t, prompting management to take the appropriate corrective actions.
The Balanced Scorecard goes beyond typical financially focused performance tracking. It recognizes that modern business success must be measured in more than just dollars and cents, particularly when it comes to ensuring the long-term stability of a company. We’ve all seen too many companies who were, as the saying goes, “penny wise but dollar dumb,” implementing strategies that were profitable in the short term but led to long-term failure. The Balanced Scorecard technique balances this out by also looking at other key metrics – generally including customer response, internal training/retraining, and the efficiency of internal processes.
By applying these concepts within the framework of corporate performance management, executives gain the insights needed to steer their company towards long-term success.