Enterprise performance management (EPM) holds the promise of helping corporations drive growth and government agencies become results-oriented organizations. Defined by AMR Research as "a superset of applications and processes that cross the traditional department boundaries to manage the full lifecycle of business decision-making," EPM combines planning, forecasting, performance metrics, operational reporting, and modeling capabilities with strategy execution. 

Why EPM?
The current business environment is very different from what it was five to ten years ago. Events like the Y2K computer problem, dot.com bubble and burst, and Enron fiasco have made indelible marks on the global business community. In the wake of those events, key market forces are driving dramatic change for virtually all businesses.

Compliance and governance pressures, intense competition, and years of cost-driven execution have led to a unique set of circumstances for most companies. As a result of these converging market forces, companies now face a singular urgent need, which is of a strategic nature. Since most organizations have largely squeezed costs as much as possible, they now face significant pressure to improve visibility and grow the business.

As a result, companies are looking to technology such as EPM to help drive profitable growth. Just as organizations have leveraged technology over the last quarter century to improve efficiencies and reduce costs, they now need EPM technology to help them grow the top-line. 

The key to effective enterprise performance management or EPM is tying performance metrics to business strategy. EPM addresses the two prerequisites for breakthrough performance—strategy execution & linking strategy execution with key business processes. 

Strategy execution
Ask any CEO what it will take to drive breakthrough performance and he/she will tell you the key is strategy execution. However, the following major factors prevent organizations from successfully executing strategy:

  ► Strategy is poorly defined
  ► Strategy is not tangible
  ► Strategy is not clearly communicated
  ► Measurement is not focused on key drivers of performance
  ► Measurement takes place in silos across the organization
  ► Strategy is not integrated into other management rhythms


Linking strategy execution with key business processes through EPM
In order to drive breakthrough business performance, strategy execution must be linked with key business processes, such as allocation, planning, initiative prioritization, and rewards. As a result, organizations must adopt a discipline of formally monitoring and managing all the business processes that impact strategy execution. Those processes include objective management, initiative management, resources management, risk management, and incentive management.

Contact us to find out how Enterprise Performance Management (EPM) can help drive growth in your company.