Pros and Cons of Corporate Performance Management


By Josh Riverside


Corporate management system comprises statistical forecasting methodologies, data mining techniques and optimization approaches. It helps in marketing, sales planning and operational activities. CPM identifies causes of performance issues, analyzes emerging trends and tracks business solutions. The marketing department in a business applies corporate performance management to develop better products, assess the results and understand the targets. The credit department applies CPM for reporting and analysis in creative ways. Human resource departments use CPM for analyzing workforce and adopting salary decisions.

CPM provides a collaborative planning process that connects business strategies and business measures. Individual performance can be measured through CPM. CPM identifies areas of opportunity in a business through goal seeking methodologies. It combines all corporate data across multiple departments and business units. Efficient reporting minimizes problems associated with reporting financial and operational data. Financial reporting in CPM gives up-to-date reports on plans, budgets and forecasts. This can optimize profitability and cash flow. Strategic planning and budgeting facilitated by corporate performance management system improves the predictability of an organization. Analytics in CPM provides facts and figures from different business levels. Reporting and analyzing tools enable business managers to meet their reporting needs and find the causes of problems. Collaborative management in CPM synchronizes the goals, strategies and metrics of an organization.

Coming to the cons involved in CPM, these systems are based on real time concepts. Most organizations disperse operational data across different corporate systems and manage it with a group of applications. This may result in inconsistent and unnecessary data. Poor data quality and lack of integration may lead to poor decision making.

If there is a lack of technical expertise in CPM, it may affect the organization process. The security and privacy of CPM systems is another matter to consider. In a CPM system, analysis and forecasting are limited by the data available. CPM systems need to be upgraded according to the technological development, which may be very expensive. Different organizations have to communicate in a corporate performance management system, and organizations with multiple technologies might fail to communicate with each other.

Corporate Performance Management provides detailed information on Corporate Performance Management, Corporate Performance Management Software, Corporate Performance Management Solutions, Corporate Performance Management Courses and more. Corporate Performance Management is affiliated with Business Process Management Systems.


More Resources

Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting

More Management Information:

Related Articles

Innovation Management - some ideas are better than others
Creativity can be defined as problem identification and idea generation whilst innovation can be defined as idea selection, development and commercialisation.There are distinct processes that enhance problem identification and idea generation and, similarly, distinct processes that enhance idea selection, development and commercialisation.
Train Me -- But Follow Through
My mechanic has me trained. When I take my car in for an oil change, he places a sticker in the upper left hand corner of my windshield to remind me what date and mileage I should have my next maintenance completed.
You Cant Not Communicate
Most of us would like to be better communicators. As leaders, co-workers, team members and in all of the other roles we play both professionally and personally, we know that communication is a major key to success.
Influencing the Organisation
There is a saying about management that suggests some managers are so focussed on the details of a business, that when the Titanic was sinking those particular managers were still straightening chairs in the dining room. Whether we love 'em or hate 'em, managers are here to stay, and their job is fundamentally to manage the resources within an organisation for optimum efficiency and effectiveness, and by doing so to achieve the organisation's goals.
CEOs Are Great, Top CEOs Are Greater
People in leading positions are often in a dilemma: on one hand they are supposed to give great performances, make the right decisions and so forth; on the other hand, they have to fill the role of a very confident and self-assured manager. This may be considered a dilemma because CEOs are expected to be almost supernatural, and asking for assistance in what is supposed to be their core competence (leadership!) simply does not fit the picture, no matter how necessary it may be.
Too Much Time Treating Symptoms
A man drives down the highway each day on his way to work. On Monday he gets a flat tire.
Operating on Perpetual Overload?
Check Out Your E-HabitsAnother week has ended. And, despite moving at the speed of light, you've once again barely made a dent in your more important goals or projects.
Four Steps to Better Performance Reviews
Direct reports-people who need direction and leadership-rely on their leaders to give them feedback and mentoring, not just management and evaluations. However, these people who most need their boss's help frequently lack the guidance that would enable them move to the next levels of success-theirs, their team's and the company's.
Crisis Management Tips
The term crisis management has different connotations. In this article, I will try to provide pointers that can be used in most situations:Is It A Crisis In The First Place?:This question is important to ask, as there are many situations that go wrong because the right person to handle it is not around.
No Time to Focus on the Big Picture? Try Focus Management
E-mail, voicemail, "got a minute?" interruptions, multiple projects and competing priorities. Whether it is in work or in life, we all understand the importance of "seeing the forest for the trees.
Why Your Company Needs An E-Mail Policy
Everyone at the office thought that using the company e-mail system to share jokes and funny stories was great fun. That is, until one offended employee decided to sue his employer for having helped to create a hostile work environment.
Necessary Tasks You May Want to Delegate
As a business owner, time is of the essence. Running a business is demanding.
Time Management Tip: Stop Micro-Managing Employees
If I was a fly on the wall what would I hear your employees say? Would it something like this? "They won't allow me to make even the simplest decisions." "The red tape here makes it very difficult for me to do my job.
Relationship Building - 5 Tips and 5 Questions
And is isn't hard - it's more about focusing on people, who they are and what interests them. And that's just where you spend your time.
Managing Workplace Conflicts
Kinds of Workplace ConflictsLet's start by identifying where conflicts happen. Think about the kinds of conflicts that happen around your workplace.
Einstein - Definition of Insanity
Insanity in the Sign & Graphics IndustryEinstein's DefinitionAlbert Einstein once said "The definition of insanity is doing the same thing over and over again and expecting different results". Think about this quote for a second and ask yourself, does this quote apply to the way you run your company?Have you been doing the same thing over and over again expecting different results? If so, then you might want to keep on reading.
Training and ROI (Return On Investment)
Statistics consistently reinforce that the biggest challenge in today's contact center environment is agent training. Turnover continues to be high; new hire costs are on the rise--$6500 per agent! At the same time, losing customers because of bad call experiences negatively impacts your bottom line.
Coaching Champions at Work
I saw Brian Kerr (the Irish national football coach) on television not so long ago and it reminded me of a platform I shared with him at a Banking Institute seminar in Dublin. Whilst I was waiting for my turn I listened to Brian and experienced two emotions - admiration and jealousy.
Leadership in Troubled Times
Leadership in Troubled Times The first task of a leader is to keep hope alive. - Joe BattenLeading an organization can be challenging, even when times are good.
Unravelling the Data Mining Mystery - The Key to Dramatically Higher Profits
Data mining is the art of extracting nuggets of gold from a set of seeminngly meaningless and random data. For the web, this data can be in the form of your server hit log, a database of visitors to your website or customers that have actually purchased from your web site at one time or another.