Corporate Performance Management (CPM)

Transcription

1 Corporate Performance Management (CPM) (What is it? Why do you need it?) Presenters: Dave Henson and James Meyer What is CPM? Gartner: CPM is an umbrella term that describes the methodologies, metrics, processes and systems used to monitor and manage the business performance of an enterprise. Applications that enable CPM translate strategically focused information to operational plans and send aggregated results. These applications are also integrated into many elements of the planning and control cycle, or they address customer relationship optimization needs. CPM must be supported by a suite of analytical applications that provide the functionality to support these processes, methodologies and metrics. 1

2 In Other Words. Your Ticket out of Spreadsheet Hell! Why is CPM Important? Source: KPMG 4 2

3 The Changing Role of the CFO CFOs have stepped out from the confines of their role. Exploiting data and creating value, they can now serve as innovator and disrupter in their business. Accenture CFO Reimagined Report Evolving Role of Finance From CFO Reimagined Study,

4 What is your company s goal? What are your potential icebergs? How quickly can you identify them? The further in advance, the less dramatic impact it will have Common Issues Facing Organizations Multiple Systems that are disconnected wasting time & money Planning is often a compromise of getting it right vs getting it done Key Decision Makers don t have access to real time metrics Love Hate relationship with Excel users breaking formulas! Dave Henson dhenson@manersolutions.com

5 CPM Data you can Trust HR ERP CRM Components of a Good CPM Solution 1. Budgeting & Forecasting (including version control & workflow) 2. Financial Reporting & KPIs 3. Consolidations & Allocations 4. Collaboration 5. Centralized Data Warehouse with Strong APIs (One Source of Truth) 10 5

6 Or, In Visual Terms Analytics Reporting Planning Consolidations Modeling Data Warehouse Data Integration Layer PR/HCM ERP System(s) Co. 1 Co. 2 Co. 3 Etc. CRM Other 11 Let s Drill Down on Budgeting Top 5 Reasons To Retire Excel and Move to Budgeting Software 6

7 Reason #1: Data Integrity 88% of Spreadsheets have errors (per a recent MarketWatch study) According to Ray Panko, a Professor of IT Management at the University of Hawaii, spreadsheets contain errors in 1% or more of all formula cells, even after careful development. Reason #2: Version Control The difficulty of managing budget versions with Excel increases exponentially as you increase the number of: People involved involved in the budgeting process Tabs on your worksheets Financial dimensions G/L Account numbers 7

8 Reason #3: Collaboration Spreadsheets are difficult to share when multiple budgeters are involved. Notes do not roll up when sheets are linked No workflow Reason #4: Business Rules & Ease of Use Difficult to enforce business rules formulas break Input sheets too complex 8

9 Reason #5: Inability to Easily Re- Forecast Spending time manipulating spreadsheets vs. analyzing the data Too much overtime Static vs. Active Planning To Summarize 1. Data Integrity 2. Version Control 3. Collaboration 4. Business Rules & Ease of Use 5. Inability to Easily Re-Forecast 9

10 What Tool is Right for You? What s your primary concern (budgeting or reporting)? How much do you want to spend? What are your data sources? What is your ERP system? What are your key metrics? CPM What gets measured gets managed William Thomson, Lord Kelvin Make sure metrics are important to the business user. Include metrics that are actionable. Metrics should be measured frequently. Use formatting to make the metrics easy to interpret. Provide context by alerting users visually and then including a drill down if needed. Ensure users of every level know individual, departmental, and strategic goals. 10

11 Gartner s Picks G2 Crowd s Picks 11

12 Our Recommended CPM Solutions QUESTIONS? Dave Henson James Meyer