corporate performance management

1. Corporate performance management
It was not possible for businesses to properly collect and analyze data before the 20th
century. In 1970, decision support systems were introduced in business. Decision support
systems can analyze one department at a time. In 1980, executive information systems
were introduced. The executive information system can effectively summarize ongoing
transaction within an organization. By 1990, business intelligence improved with the
introduction of computer technologies. Customer relationship management also
improved. Advanced management techniques combined with new technology improved
the planning, reporting and analysis in business. These new developments gave rise to an
integrated methodology known as corporate performance management. Corporate
business management is a holistic approach in strategic planning.
The concept of corporate performance management was introduced in 2001 by Gartner
research. Corporate performance management (CPM) is also known as business
performance management. This describes the process, methodologies, metrics and
systems needed to manage the performance of an organization. The main characteristics
of corporate performance management include complete integration, automating data
processing, support of collaboration, analytical insight and focusing on exceptions.
The three levels of corporate performance management are client, application and data
levels. The important steps in corporate performance management are strategic planning,
scorecarding, budgeting, forecasting, consolidation and business intelligence.
While strategic planning is the basic requirement of any business, the objective of
scorecarding is to examine performance related to strategic planning. Corporate
performance management uses metrics to assess the present state of the business. Metric
related data is consistent and correct. Corporate performance management speeds up the
budget and forecasting process, improving accuracy and providing auditable budgets. The
forecasting ability helps the business to take appropriate action in keeping with the
occasion. Consolidation is an important component in CPM. Financials depend upon the
consolidation process. Business intelligence refers to turning data into information. This
information is used in decision making.
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