Organizations that properly manage their performance data are bound to excel. However, performance management is a broad subject that can cause complexities and confusion in an organization. If you are a finance team looking to deploy corporate performance management (CPM) software as one of your finance solutions, here’s what you need to know.
Defining Corporate Performance Management
Before we delve into what CPM software is, lets first learn what corporate performance management is. CPM is a broad term that is used to describe the methodologies, processes, metrics, and systems used to monitor and manage the performance of an organization.
This methodology is frequently used when budgeting, forecasting, and preparing business plans. CPM is highly utilized by teams in finance, sales, marketing, and operations. It links an organization’s strategies to their plans and execution, thereby helping the business to achieve its goals.
Finance Solutions – CPM Software
CPM software is a specialized tool deployed to monitor and manage the financial and organizational performance of an organization to help the business to meet its corporate objectives. With it, business and executive finance teams can measure past and present performance and manage it to gain a business advantage in the future. Apart from accounting and monitoring profitability, CPM software is also used in other departments such as marketing and IT.
Key Benefits of Corporate Performance Management Software
CPM software should always have a place in your finance solutions toolkit. Here’s why.
A Single-Source of Truth
CPM software provides an overview of the performance of the entire organization, taking into account all its departments and subsidiaries. Large enterprises with dispersed branches can benefit a lot from this capability. It gives you increased visibility of your business’ overall performance.
Eliminating the Need for Spreadsheets
Previously, spreadsheets were used to perform the tasks that CPM applications do. These spreadsheets involve a lot of manual, repetitive and tedious work, and are disadvantageous when used to analyze business processes. CPM tools can eliminate the use of spreadsheets as they automate most processes. This reduces costs, improves productivity, and reduces errors.
Performance management involves multiple users. CPM software has different functionalities that can be used to manage different users. An administrator can use the tool to control the timing and order of processes such as data entry, data import, and reports. It has features that alert users about time constraints, allow scheduled processes to run at a predetermined time, share reports by email, perform calculations, import data from external sources, and much more.
CPM software combines spreadsheet-style calculations and an Online Analytical Processing database for simple data aggregation. If you do your calculations on Excel, a CPM tool allows you to transfer that data to the software and utilize it in the business model. The interface is designed to be user-friendly, and it meets the requirements of finance professionals.
Comprehensive Data Analysis
What sets CPM software apart is the level of detail it offers when it comes to data analysis. The software has a function that collects data from across the organization. Such data can provide better insights that you can use to make smarter decisions and give your company an edge over your competitors. Some CPM tools have a visual interface where you can see the overall performance of your business.
With the insights that a CPM tool provides, you can easily identify risks before they materialize. This knowledge will help you to react on time, manage the threat, and avoid being caught off guard. This capability makes CPM software a key component of your finance solutions.
Kinds of CPM Software
There are different kinds of CPM software available. They include:
- Platforms. All core CPM features are included in this software by default, and a company can add other functions depending on their requirements. Since all features are embedded in one tool, the organization can adapt quickly to the software.
- Package. Here, vendors of different CPM products offer their product as a Suite. The vendor integrates different products to create one package. These tools have advanced capabilities.
- Industry-specific CPM. These CPM applications are developed for industries that have particular needs and fields that are highly regulated.
How to Choose an Effective CPM Software Solution
The market is awash with CPM tools and providers. With all the options available, it can be tough to pick the right software. However, some critical elements can help you identify a tool that performs well. First, look at the user rating and customer feedback. A highly-rated tool is always the better option.
Second, check the reputation of the company. Work with a company that is experienced and well-reputed when it comes to developing CPM software. Such companies understand your needs better, and they have the resources to deliver. Before purchasing a tool, test the trial version to check whether it meets your expectations.
If you are looking for finance solutions software, using corporate performance management tools will undoubtedly benefit your organization. It will help you to align your processes with your objectives, give you real-time performance feedback, consolidate data, improve collaboration, and mitigate risks.