Corporate Performance Management & Growth Kamran on 25 Dec 2007 02:14 pm
Components of a CPM System
A Corporate Performance Management (CPM) system brings a comprehensive approach to business processes.
It uses a wide variety of components including Economic Value Added (EVA) based measurements; different kinds of business methodologies including scorecards, activity-based measurements, etc.
CPM synthesizes a number of “best practices” and newest technologies to come up with and implement the best strategic plan for a given business.
As a self-contained system, CPM employs a Closed-Loop Process which begins with an assessment of the business’s mission and goals, which goals it wants to achieve and when, which resources should be allocated for which programs, the identity, needs and interests of the stakeholders, etc.
Then comes monitoring of the implementation and the collection of specific metrics.
This loop is closed with an evaluation of the measurements and re-assessment of the organization’s main goals, operational targets, and processes.
Gartner reports that 40% of the organizations will implement CPM within the next 3 years and they will have a significant performance advantage over those that don’t.