CPM System Upclose

Corporate Performance Management (CPM) system consists of the following elements:

1. A Strategic Plan.
2. An inventory of budgeting, forecasting, planning, reporting and measurement tools available.
3. Integration of those tools in a way to help reach the Strategic Planning goals.
4. An inventory of internal and external resources.
5. A method to relate the allocation of those resources to the Strategic Plan so that the managers can decide which actions to take to implement the plan.
6. A feedback loop from the operational units back to the line management and all the way up to the strategic planners.

The major emphasis is to close the gap between strategic planning and policy execution so the planning will not remain as a mere theoretical exercise.

CPM tries to go beyond the traditional financial reporting of (for example) same-store sales figures a year apart, or similar metrics showing the annual changes in selected variables.

Such measurements are crucial but in themselves that do shed any light on the actual practices that create such changes.

CPM aims to address not only the end result of the change but its causes as well.

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