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Performance Reporting

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Corporate Performance Management (CPM), Business Performance Management (BPM), Enterprise Performance Management (EPM) and Financial Performance Management (FPM).


Corporate Performance Management

Corporate performance management (CPM) is a term used to describe the various processes and methodologies involved in aligning an organization's strategies and goals to its plans and executions to control the success of the company. CPM is a subset of business intelligence (BI) that involves monitoring and managing an organization's performance, according to key performance indicators (KPIs) such as revenue, return on investment (ROI), overhead and operational costs.

However, it is important to recognize that CPM is not a specific strategy. For CPM to be useful, organizations must create a suite of analytical applications that can support the processes, methods and metrics used in corporate performance management.

Some of the different strategic frameworks and management methods used in CPM include:

  • The balanced scorecard
  • Six Sigma
  • The European Foundation for Quality Management (EFQM) excellence model

The goal of CPM is to provide companies with significant business insights through processes like budgeting, scenario analysis, financial planning, forecasting and data reporting. Supply Chain Management (SCM) and Risk Management are two practices that should also be aligned with Corporate Performance Management. SCM is responsible for planning, controlling and executing a product's journey from materials to production to distribution in the most efficient and economical way possible. Risk management enables organisations to track the related risks of each plan or process alongside the performance results.

The term and concept of Corporate Performance Management were devised by Gartner in 2001. Since then, CPM has evolved as workplace practices and technologies have changed. Specifically, the increased use of Agile methodologies has significantly impacted the concept.

In 2017, Gartner retired the term corporate performance management after realising that companies were focusing only on point solutions for specific CPM software processes, like financial reporting and planning. As a result, Gartner named two new market classifications: 1. Financial planning and analysis, to replace strategic CPM and 2. Financial close, to replace financial CPM.

CPM is also known as Business Performance Management (BPM), Enterprise Performance Management (EPM) and Financial Performance Management (FPM).

Importance of Corporate Performance Management

 CPM has become a primary focus for most senior executives. By integrating business planning, sales, marketing, forecasting, and budgeting for finance, human resources and operations, organizations can link their organizational goals and strategies to their plans and execution. The alignment of the company around its strategic priorities allows a focus to be placed on key drivers of business operations as well as the key business metrics that must be maintained to improve revenue and grow profits.

Corporate Performance Management often includes the following important management processes:

  • Creation of a business model and identification of business goals;
  • Budgeting, planning and forecasting (BP&F));
  • Merging results and closing financial books on a regular basis;
  • Sharing results with all internal and external stakeholders;
  • Analysis of business performance compared to the plan, previous years and across products and divisions and
  • Remodelling based on the results and new

While every company should practice CPM, it is especially crucial for companies looking to reduce operational costs, improve the alignment of KPIs, remodel the budget, upgrade financial planning processes or improve organizational goals and strategies.

Since CPM is important to C-Level executives, organizations have started to build departments that are dedicated to strategy and performance management within the organization. This new department is sometimes merged with project management. Certification programs have also been developed to help individuals become experts in performance management.

The goal of the new department is to use CPM methods and tools to handle the measuring and reporting of performance results as well as manage strategic projects, communications, alignment, and strategic planning. The department is sometimes referred to as the Office of Strategy Management (OSM) or Project Management Offices (PMO).

Corporate Performance Management metrics

The business metrics or KPIs used in CPM provide measurable values that reveal how an organization has progressed in relation to its strategic goals. The information used to create these metrics often comes from books of accounts including income statements, balance sheets and cash flow statements, or from budgeting and forecasting data such as revenue, expenses, and inventory reports.

The performance metrics used in CPM can be organized into five categories. They are:

  • Financial - This includes all financial performance numbers, such as sales, costs and profits.
  • Internal – The employee experience can have a significant impact on the long-term success, or failure, of an internal metrics offer evaluation of the quality of management within the organization.
  • Customer - Customers are essential to every business; they are the source of the company's customer satisfaction and loyalty can be key indicators of business health and performance.
  • Compliance - The company must demonstrate legal compliance with employment regulations, financial reporting and environmental
  • Strategic - These metrics will reveal how well the company executed the strategies that management implemented to reach immediate targets and move towards long-term organizational

Corporate Performance Management Software

Historically used within finance departments, CPM software is now designed to be used enterprise-wide, often as a complement to business intelligence systems. CPM software includes forecasting, budgeting, and planning functions, as well as graphical scorecards and dashboards to display and deliver corporate information. A CPM user interface usually displays KPIs so that employees can track individual and project performance relative to corporate goals and strategies.

Benefits of corporate performance management software include:

  • a more streamlined and productive workflow;
  • reduced operational costs;
  • automation of previously manual tasks;
  • complete data analysis (DA) and
  • simplified

Cloud-based CPM software can benefit organizations further by making the tools easier and faster to deploy, increasing innovation speed, decreasing the cost of ownership and enhancing collaboration throughout the company.

Some popular examples of CPM software include:

  • Adaptive Insights
  • Anaplan
  • BI360 Suite
  • Business Planning Cloud
  • Corporater
  • Fathom
  • Host Analytics
  • Hubble
  • IBM Planning Analytics (PA)
  • Infor Dynamic Enterprise Performance Management
  • Jet Reporting
  • Kepion
  • Longview
  • Oracle Planning and Budgeting Cloud
  • Oracle Enterprise Planning Cloud
  • Oracle Hyperion Planning
  • Oracle Enterprise Performance Reporting Cloud
  • Prophix software
  • Profitbase BI
  • SAP Enterprise Performance Management
  • Sisense
  • Solver
  • Tagetik
  • True Sky
  • Unit4 Prevero and
  • Vena

Corporate Performance Management vs. Human Performance Management

While both practices focus on performance management, CPM and human performance management (HPM) differ in the areas they monitor.

HPM is a subset of HR that aims to improve operational capability as well as employee productivity and satisfaction. Employee reviews and retention rates can be used as key indicators of success for HPM.

As mentioned, CPM is a subset of business intelligence. While it sometimes includes monitoring employee satisfaction and retention, it does not focus on employee reviews. CPM instead focuses on improving communication throughout the organization and aligning and executing organizational strategies.


Many organizations have difficulty defining effective information architecture to meet the growing demands of Corporate Performance Management (CPM), Key Performance Indicator (KPI) Management and self-service Business

Intelligence (BI). They struggle with overgrown excel spreadsheets and a desire to work autonomously from Information Technology (IT) departments. Frequently, the underlying reason is a lack of understanding of how modern technologies support a variety of business processes.

Organizations spend significant dollars on enterprise corporate system platforms attempting to solve CPM problems, better met with out-of-the-box Cloud applications that are fit for purpose and at a fraction of the cost.

There seems to be a lot of confusion with this word’s “analytics” and “advanced reporting”. Executive stakeholders are looking to adopt a reporting strategy that is cost-effective, platform-centric, and has a strong user uptick but are getting confused with products and terminologies that all sound the same when coming from vendor sales marketing collateral.

Understanding the differences between Corporate Performance Management (CPM), Business Intelligence (BI) and Enterprise Resource Planning (ERP) might help clarify some of the confusion. These three technologies should coexist in any corporate information architecture.

According to Gartner, CPM is an umbrella term that describes the methodologies, metrics, processes, and systems used to monitor and manage the business performance of an enterprise or The most used functionalities include financial consolidation, disclosure reporting, budgeting and integrated planning & reporting. CPM systems are about planning, management reporting, and analytical flows to ensure accuracy and consistency at the management level. A CPM tool enables faster, better decisions at the top levels of an organization with the overall goal of improving the effectiveness of the corporate level structure.

Management effectiveness is ultimately measured by results; so, goals such as increasing market share, improving customer satisfaction ratings and achieving desired revenue levels come under the heading of management effectiveness. This is how you measure whether management decisions are improving your business performance. Businesses with very low organizational complexity do not necessarily need a CPM, but as soon as you have a multitude and/or operations in multiple regions or geographies, data and organizational complexity begin to impact the flow of data and thereby the ability of management to make decisions. At this point, having a CPM tool to assist managerial effectiveness becomes more and more critical.

Gartner also defines BI as an umbrella term that includes the applications, infrastructure and tools, and best practices that enable access to and analysis of information to improve and optimize decisions and Here, commonly used functionalities include data discovery, data visualization, and big data. Business intelligence includes several types of applications and technologies for acquiring, storing, analyzing, and providing access to information to help users make more sound business decisions. BI applications include decision support systems, query and reporting, online analytical processing (OLAP), statistical analysis, and data mining.

ERP applications automate and support a range of administrative and operational business processes across multiple industries, including a line of business, customer-facing, administrative and asset management aspects of an organization.

These Gartner definitions of CPM, BI and ERP outline the distinct differences between these three technologies. It is therefore quite peculiar that some organisations try to support fundamentally different business processes through a single solution, but, and this should also be pointed out as software vendors all too often love to present their solutions as a “one size fits all”. Whenever you come across such a bold statement, just do remember that there is usually a conceptual alignment with an all-purpose platform and be careful of the exorbitant costs from these platforms.

BI is not CPM.

BI allows rapid analysis of big data sets with the ability to draw on data sources across platforms to give seamless visibility over many applications, making it easy to understand complex relationships in data. Furthermore, the ability to drill down into data to answer the ‘next question’ will often result in deeper understandings of costs/demands/revenues etc. For example, join the rating and billing database to correlate against response requests in the CRM system.

However, BI cubes (a multidimensional structure that contains information for analytical purposes) frequently change, as they view data from many angles and reporting can be a moving target. Reporting periods may not be properly closed, and corporate reports can present constantly changing comparative data. A BI tool may not feature process management functionalities; furthermore, executives may not understand the complex data relationships and therefore the data presented. The BI tool can create nicely summarized data. BI is focused on gathering and processing disparate data and presenting it in an easy to digest form like a report, visualization, or dashboard. However, reporting is not necessarily linked to an organization’s strategy. It does not include any mechanisms for planning, controlling, or managing towards business objectives or KPIs.

 Business Intelligence Diagram

Business Intelligence Diagram

CPM leverages the data provided by BI to guide the organization towards its strategic objectives. The metrics and scorecards that are the endpoint of BI systems are the starting point of CPM. CPM systems link those metrics to the strategic goals of the organization.

CPM compliments BI by presenting data ready for expert commentary where results are stored to provide a view over time, providing an explanation in the form of progress updates to the meaning behind the data. This gives a fixed view of the truth that can be more easily understood and provides a common scoreboard in a way that BI often does not, due to its complexity. Matching data with a commentary promotes a deeper understanding of variances or change drivers that are critical for interpretation by executives. It then allows the organisation to act on that information to improve the performance of its operations.

ERP is not CPM.

ERP (enterprise resource planning) systems are about automating transactional flow to ensure accuracy and consistency across multiple business functions. At its core, it is about operational efficiency. ERP systems do this incredibly well.

ERP Diagram Transparent

                                                         ERP Diagram

The most recent versions have gone beyond the transactional process and begun to focus on the user experience as well. The systems leverage transactional information to directly influence the actions of system users. As a result, it places transactions needing attention right in front of the user – effectively making users an extension of the system. This further enhances the overall efficiency of the systems. And some even have begun to enable visualization to push metrics and performances measures out to users.

CPM systems typically source some of their data from the ERP database but also layer in the information received from HCMs, CRMs, and other sources. Each system is important to the effective operations of a business, with an ERP being focused on business execution and CPMs primarily focused on business navigation and management.

The differences in CPM, BI and ERP highlight the importance of addressing the corporation’s business processes each with the right technology. If positioned and utilized wisely, they leverage and feed off each other, providing the end-user with a much richer data set. We recommended the marriage of the three systems, as together they each provide a different part of the puzzle, that is to automate and give order to enterprise-wide reporting, for internal and external consumption.