The 5 Levels of Corporate Performance Management (CPM) Maturity: Climbing to the Top Floor

Transcription

1 Sponsor

2 Ask, Share, Learn Within the Largest Community of Corporate Finance Professionals The 5 Levels of Corporate Performance Management (CPM) Maturity: Climbing to the Top Floor

3 Learning Objectives After attending this event you will be able to: Understand the 5 Levels of CPM Maturity, as outlined by the leading analyst firm Understand how to align people and process with technology and data to drive more effective CPM Discover the current landscape of the CPM solutions market

4 Proformative Event Notes Links to today's presentation and the recording of this webinar will be sent out to all attendees within 24 hours of the event and the presentation is already posted on for free download. Those who would like CPE credits (through NASBA) will need to answer all polling questions during the event and should have pre-registered for CPE credit. For any questions on CPE credits, please send an to Please ask questions on today's topic via the "Questions" box in your GoToWebinar control panel at any time during the event. We will do our best get to your questions during the Q&A/panel discussion at the end of the event. If we do not get to your question, a speaker or webinar sponsor will follow up with you directly to address your question. You will be asked to take a short survey today regarding the webinar, and we would greatly appreciate your feedback regarding our event today as we always strive to improve the ROI we offer our event attendees for their valuable time.

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6 Ask, Share, Learn Within the Largest Community of Corporate Finance Professionals The 5 Levels of Corporate Performance Management (CPM) Maturity: Climbing to the Top Floor Nicole Diceman, Product Manager, Prophix Software

7 Presentation agenda What is CPM? CPM Maturity Model What differentiates CPM CPM marketplace overview Questions

8 CPM Overview

9 A familiar situation Challenge Silos of Business Units Many Moving Parts Slow & Error Prone Impact Lack of Collaboration Lack of Control Lack of Visibility Sales CRM Ops System HR IS General Ledger ERP

10 Conceptual CPM Overview Organizational Strategy Strategic Goals Alignment Organizational Alignment Contextual Insight Technology Single Unified Platform Self-service Solution SALES FINANCE HR OPS MARKETING

11 Top issues facing CFO s today Prioritizing and effectively responding to the demands on the finance function Gathering insights about their firms from the massive data streams available to today's companies Ensuring the necessary skills and capabilities are available

12 Leveraging Corporate Performance Management (CPM) An integrated CPM system, the backbone of your management operating system, is the foundation for building an agile enterprise PwC CPM has two main objectives, both resulting in greater organizational agility and more-insightful financial analyses: It supports more-efficient financial processes and provides related control and transparency (tactical goals) It enables competitive advantage by providing critical performance management capabilities (strategic goal) Gartner

13 What is CPM? Corporate Performance Management Budgeting, planning and forecasting Financial, statutory and management reporting Formal financial consolidation Profitability modeling & optimization Strategy management software

14 Polling Question

15 CPM Gartner Maturity Model

16 CPM Maturity Model Gartner's Maturity Model for Corporate Performance Management (CPM) consists of five levels of CPM maturity: Unaware (Level 1) Opportunistic (Level 2) Standards (Level 3) Enterprise (Level 4) Transformative (Level 5)

17 Accessing the CPM Maturity model

18 Where do you fit? 5% 70%

19 What does Level 3 look like Have implemented several CPM functions CPM is not viewed as a Finance-only function More detailed operational data is used (e.g. SKU, Customer, Service, etc.) Frequent re-planning Involvements of hundreds (or thousands) of users to consume and contribute information

20 Polling Question

21 CPM Marketplace Overview

22 Overview of the CPM marketplace Historically Enterprise solutions aimed at large global organizations Market share dominated by a few key players Systems were large in scale Implementations were timely and expensive Required specialized knowledge to maintain

23 Overview of the CPM marketplace Presently Enterprise software vendors have acquired the previous generation of CPM products Newly matured products aimed at the mid-market have sprung up to fill the gap Current market is experiencing a cycle of retiring certain products

24 The CPM sweet spot CPM applications aimed at: Lower TCO Shorter implementation times Fully unified CPM solution Lower IT costs

25 Evolution of CPM End result Business model rules Data transformations Report creation & distribution Scenarios analysis Consolidation & currency rules Management allocations Budgeting/ Planning/ Forecastin g Analysis Cubes Reporting /Analysis Data Warehouse Dashboards & Scorecards Data Modeling LOB Applications Data Marts Files Data Aggregation

26 Evolution of CPM End result Business model rules Data transformations Report creation & distribution Scenarios analysis Consolidation & currency rules Management allocations Budgeting/ Planning/ Forecastin g Analysis Cubes Reporting /Analysis Data Warehouse Dashboards & Scorecards Data Modeling Business Model Manager/ Security Manager/ Infoflex Import Wizard Automation Collaboration Move beyond office of finance LOB Applications Data Marts Files Data Aggregation Automation & Workflow

27 Productization = Minimal IT Involvement IT Responsibility Data & Application Infrastructure Database Servers Application Server Source data permissions Backups Authentication and Access Network access privileges Firewalls Provisioned by IT and managed by business users Business User Responsibility Application Security Users, Roles, Permissions, Auditing Business Model Management Hierarchies and account rollups Business rules and formulas Allocations Complete data management Wizard driven imports Mapping tables Data adjustments Business process Management Report distribution Workflow approvals Scheduling Budgeting and Planning templates Self-serviced management reporting Ad hoc data analysis

28 New generation of CPM benefits One single product Can scale to meet your changing requirements Always within your secure environment Direct connections to any systems ETL is part of the product Drill across to transactions Unique blend of OLAP and Relational technology Our upgrades happen in minutes Scalable infrastructure to maximize performance SharePoint Integration

29 Thank You

30 Ask, Share, Learn Within the Largest Community of Corporate Finance Professionals The 5 Levels of Corporate Performance Management (CPM) Maturity: Climbing to the Top Floor Melissa Mikita, Financial Planning & Analysis Manager, Pace Communications

31 About Pace Communications Content Marketing Agency Print Products, Magazines, Websites and Interactive Initiatives Industries: Telecommunications, Hotel Hospitality and Retail Employees > 300 nationwide 2013 Content Agency of the Year

32 My Role at Pace Accurate and reliable financial reporting Working closely with internal client teams Monthly tasks: Monitoring actual costs from month to month Understanding variances from expectations Training client teams on understanding financial inputs Involvement in month end close Support in forecasting

33 Background Client team = Business unit Revenue and cost sources Overhead allocation Monthly process: P&L distribution Team meetings Information share with stakeholders

34 Our Previous Process Financial reporting Microsoft FRx Limitations to adding lines to P&L Manual print and distribution Ad Hoc Analysis Compiling data from G/L detail Manual manipulation in Excel Budgeting Information gathering Manual entry Significant amounts of assumptions

35 Need for Change Loss of support by Microsoft System requirements Financial reporting and budgeting in one?

36 One Solution for All Our Needs MAC compatible Choices in user licenses Security limitations Automated report distribution Unique template design Look and feel of Excel

37 Implementation 5-6 weeks total 2 weeks with software vendor on site Modification of chart of accounts Consultations Most value for initial rollout Aid in template designs Build of budget process Selling to the Pace team

38 Reaping the Benefits Saving time Automated process to meet our specific reporting needs Automated process of internal report distribution Smooth, user friendly budgeting process Ease of access to financial information Ad Hoc analysis at your finger tips Faster reaction time to changes

39 Learns Learnt and Where to GO! Identify what is missing Where are you spending time with manual processes? Adding new data sets to the system Helping in time tracking reporting Monitoring and reporting on contractor usage

40 Final Thoughts CPM has changed our business! Ease of access Quicker turn around on analysis Realistic and up to date point of view on our annual results Becoming a better resource

41 Thank You

42 Polling Question

43 Q & A

44 Again, you will be prompted to take a short survey once this webinar concludes, we would greatly appreciate your feedback regarding this event. Please join us at to ask any additional questions you may have and to continue this conversation with your peers and the experts you heard from today.

45 Sponsor