Optimizing performance and developing better management practices has been a major challenge for companies. More than standardized processes centralized in management systems, companies need to learn how to use the data collected to benefit their business, transforming information into corporate intelligence.
This level of efficiency and effectiveness can be achieved through CPM - Corporate Performance Management.
What is CPM
It is a set of best practices that aims to improve company performance by collecting, analyzing and monitoring performance indicators which, when aligned with strategic objectives, provide an integrated view of the enterprise.
It is part of the business intelligence area and is focused on optimizing company management, evaluating data such as revenue, invoicing, expenses, costs and return on investment, among others. For it to be fully effective, it must be integrated with other strategic management tools, CRM, ERP, Big Data and project management.
What the CPM is for
The main objective of this set of best practices is to offer a systemic and integrated view of the enterprise so that managers can extract relevant insights that lead to better decisions for the business, bringing benefits such as:
# Strategic alignment
The depth of data analysis provided by the CPM allows the company to have a truer perspective of its strategic objectives and goals, and can transmit coherent and easy-to-understand guidelines to all employees. Aware of their duties and responsibilities, employees work in line with these objectives, making a strong contribution to the company achieving the level of efficiency and effectiveness it is aiming for.
# Precise budget planning
As it provides financial data and information, CPM contributes to better budget planning, increasing the company's effectiveness in maximizing results and reducing costs. What's more, the systematic monitoring you start to carry out once these best practices have been implemented allows you to plan the future of your business with greater certainty, based on concrete data about the financial health of your business.
# Reducing business risks
Financial risks are those that have the greatest impact on the business and can even make the company's continuity unviable. In this sense, CPM helps to identify potential risks and eliminate them, safeguarding the company's assets based on data analysis. Through financial history, for example, you can find out whether it is possible to make a new investment, the degree of return on this investment for the business and the viability of the venture.
# Performance evaluation
CPM is also capable of reflecting organizational performance so that you can find competence gaps and remedy them through training, technology acquisition, process adjustments and other corrective actions. This is because it translates the information collected into measurable and easy-to-understand performance indicators, creating a culture of continuous improvement in your company.
# Shared vision
Being integrated with other management tools such as a Strategic ManagementCPM produces a shared vision of the business, as it brings another block of relevant information to your enterprise, distributing this information among all those involved.
Communication flows become clearer and more transparent, employees are communicated with in real time and have access to important information for carrying out their tasks, increasing the level of productivity and engagement.
CPM can be integrated with various strategic management tools, such as BSC, GPD and VBM. If you already use one of these, feel free to add CPM and achieve even better results!
