ENTERPRISE PERFORMANCE MANAGEMENT SYSTEMS
Enterprise Performance Management Vision
A concise statement defining an organisation's long-term direction, the vision is a summary statement of what the organisation ultimately intends to become five, 10 or even 15 years into the future. It is the organisation's long-term "dream", what it constantly strives to achieve, its "raison d'etre". A powerful vision provides everyone in the organisation with a shared mental framework that helps give shape to its abstract future.
An effective vision statement provides as concrete a picture of the desired state as possible, as well as provides the basis for formulating strategies and objectives.
Planning an Enterprise Performance Management (EPM) vision has clear benefit, but doing so presents a number of challenges. Our research indicates that less than 50% of customers make use of multiple EPM solutions, and less than a quarter have completed an EPM vision or roadmap exercise to establish a long term strategic framework for Performance Management.
Creating an Enterprise Performance Management architecture is often complicated by:
- Determining what are the right data points to measure, why and what to do with the insights.
- Deciding on the underlying data sources and creating a reliable and scalable cost efficient process to capture the data needed to support the business.
- Enabling timely decision making. Keeping the decision information current, timely and accessible when it’s needed.
- Combining Financial and Operational data into a set of relevant and actionable insights.
The good news is that there are a number of Best Practices for addressing these challenges. Put simply the solution is one that links Strategy to Planning and Planning to Execution. Once a strategy has been agreed the Performance Metrics to measure the success of the strategy are easier to identify. This means that Operational Plans can be crafted to align with the Key Performance Indicators, resulting in improved execution across the business.
Empowering leadership teams and Line of Business managers with simple tools to constantly assess and refine a Plans performance and adjust Forecasts as necessary is proven to result in improved results.
Spending time to explore and set an EPM vision will maximise target outcomes in all areas including Profitability and Revenue growth. The Return on Investment (ROI) and measurable benefits of investing in an Enterprise Performance Management strategy are all enhanced by first determining the vision and roadmap.