Corporate performance management (CPM) isn’t a new process. It has been used to assist businesses with planning, budgeting, and forecasting for finance, marketing, human resources, and so on.
This management tool executes all these jobs seamlessly, thanks to its intuitive interface that displays data analytics and collaborative tools, as well as figures of key performance indicators (KPIs) in a consolidated view.
Did you find these terms overwhelming? If yes, you probably haven’t invested in a CPM system. Don’t let your business be left behind. Consider making this software a part of your arsenal to enjoy the benefits below.
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Advantages of Using Corporate Performance Management
1. Improved Workflow Efficiency
Some companies still rely on Excel to manage their day-to-day activities. They tend to go traditional because that program is easy to learn, simple to use, and relatively inexpensive.
However, using Excel spreadsheets is prone to human error, and can add to everyone’s workload. Every bit of data is typed manually, and calculations are done the old-fashioned way.
With corporate performance management, companies can streamline workflows, and reduce reliance on spreadsheets. Balanced scorecard is one of the most useful performance management technique for any business.
In simple terms, it is a system for improving performance that works by measuring the company’s health from four different perspectives, creating a balanced view of your organization.
CPM software also sends automatic notifications to users to remind them of deadlines, and provides the option to schedule tasks for specific time slots.
2) Simplified Financial Processes
Also known as business performance management, CPM not only helps improve workflow and produce accurate information; it also simplifies complicated financial processes.
This tool brings collates financial information, and computes data about it into spreadsheets. In fact, a CPM system can pass data between Excel and the software so that all vital calculations can be exported and processed into plain-language instructions for improving one’s business model.
It’s generally capable of running large-scale calculations. Among the activities it can perform are allocating costs to activities, products, and customers; locking actual data for historical periods; and reallocating costs to remaining months.
Additionally, corporate performance management doesn’t require extensive knowledge of scripting languages and so any financial professional can use this software with just a little learning on the job.
3) In-depth Data Analysis
Data analysis plays a pivotal role in businesses. It helps top executives and managerial employees make informed decisions that will drive the company forward.
Through CPM software, everyone who’s involved in the data analysis can contribute to the making of strategic decisions.
With this tool, users can draw useful information based out of the data they’re viewing, swap rows and columns on the screen, access a recall button, and select what data to view: accounts, time periods, or organizational entities.
There’s even an option to save data views for later analysis. By using it, users can stash away varied presentations of the same data for on-demand retrieval later on.
4) Better KPI Alignment
Companies that are looking to calibrate their KPIs for the digital age can benefit from CPM. The analysis of financial data and traceability of actions, specifically, enables them to do so.Short for key performance indicators, KPIs are important metrics that help businesses evaluate their performance, track progress, and set goals.
Implementing a performance management framework can provide a structured approach to measuring, aligning, and improving KPIs across departments, ensuring that every aspect of the business contributes effectively to overall objectives.
These informative numbers are communicated to executives and managers through reports, dashboards, or scorecards that are delivered electronically.Through KPIs, the senior management can spot the risks and opportunities for the organisation, and strategize accordingly to reorganise all involved departments for better productivity.
5) Level Up with CPM Software
Forward-thinking businesses are always aiming to gain a competitive edge. But how can they outperform competitors if they failed at understanding and measuring their performance?
This is where CPM software comes in handy. Such a tool helps every organisation manage the success of their business by improving workflow, simplifying financial calculations, providing comprehensive data analysis, and aligning KPIs with their corporate goals.
