Is your company effectively aligned and managed to
carry out your business strategy? Corporate Performance Management (CPM) consists of aligning corporate strategy
to core business processes through management methodologies, so that strategy
and business processes are transformed into actionable activities necessary to
effectively manage operations, while generating the necessary metrics to improve
the performance of an organization. Simply put, it is a method of operationalizing strategy, and creating operational effectiveness.
Common challenges & issues:
Until recently, business owners' method of periodically assessing the
performance of their enterprises, solely oriented on monthly or quarterly
financial reports, checking if objectives in their strategic plan were being met,
and the targets in their budget exceeded. For years, executives have struggled
to drive strategy down and across their organizations, as well as finding
methods to measure efforts oriented at the long term health of the firm. Now, a
hybrid model termed by Gartner in 2001 as Corporate Performance Management has
emerged. CPM implementations utilize a hybrid of tools and methodologies which are selected based on the organizational culture,
prior use and penetration of existing tools and systems, ease of integration, impact, and cost. Some of these methodologies
and tools include balanced scorecard, strategy maps, activity-based costing,
total quality management, activity based costing, six sigma, economic value-add,
enterprise risk management and integrated strategic measurement.
Milton Alexander improves upon traditional CPM models by moving the results of
CPM analysis into a risk and governance management system, for improved decision
making, risk reduction, accountability, and performance.
How can we support you:
Policies and procedures that document how to use and execute the Performance
Management process.