Top 7 Signs Your Organization Needs Enterprise Performance Management

In working with my clients across a wide spectrum of business sizes, industries, and geographies, when it comes to EPM, there are some “buckets” of pain I have found common to them all. Here Enterprise Performance Managementare 7 reasons your organization needs EPM:

  1. More time is spent on assembling the numbers than on analyzing them— all this manual effort makes us inefficient and not very scalable.
  2. People show up to meetings with “their” numbers, and we don’t know how they got those numbers—there is not a lot of confidence.
  3. Some people aren’t getting the reports or analyses we’re sending out— it either gets lost in their email or the right people aren’t on the distribution list (or they’re ignoring it).
  4. There is little alignment across functions (Sales, Marketing, Development, HR).
  5. People aren’t following the prescribed processes, especially for submitting their plans and forecasts—they make different assumptions and interpret what we want differently.
  6. The right people don’t have access
  7. Sometimes the data is just plain wrong— it doesn’t include the latest numbers or it’s an old version, or it’s missing parts.

You can learn more about EPM and how it can help your organization build a common business process to execute its strategy in my book Enterprise Performance Management Done Right: An Operating System for Your Organization (Wiley CIO)

Advertisements

Modern Management System

A modern management system that promotes fact-based decision making, accountability, transparency, and turns your data into a competitive advantage is supported by the four cornerstones of Enterprise Performance Management – brought together by a robust governance framework, process and set of tools.  This is EPM:

epm

EPM and BI resources on twitter

Happy 2014!

I wanted to take a minute and share some good EPM and BI resources on twitter that I follow.  Enjoy!

@marcusborba @timoelliott @Ken_Hansen @wjdataguy @ProjectXLtd @BIWisdom @jasprice @jhurwitz

@howarddresner @MadaboutBI #BIWisdom @nenshad @lewandog @shawnrog @FrankBuytendijk

And there are lots more.  Check out @rondimon and see who I follow.  Please feel free to suggest other folks I should follow.

Cheers!

SG&A Performance Management

Selling, General & Administrative (SG&A) expense is top of mind for many organizations right now.

Simple SG&A Value Map example

Simple SG&A Value Map example

Everyone in the enterprise has an impact on SG&A expenses.  From your salary, to the office supplies you use, to the travel you take on behalf of the company.  It’s everyone’s job to help maintain and control these expenses.

SG&A spend should be optimized at the “right” level to help deliver on the promises of the organization.  If they are at too low a level, sales revenue will suffer.  At too high a level, Read more of this post

Data Consumption is undergoing a major shift

A good decision is based on knowledge and not on numbers.
—PLATO

As EPM practitioners, our job is to help deliver better insights to the business, and the starting place is delivering useful information: on time, at the right level of detail, to the people who can use it to make a decision that helps improve short and long-term results.

With the plethora of data we’re getting, and with the speed at which change happens and transactions occur, it’s getting harder to find out exactly where you stand. How, when, where, and why we consume data is undergoing a major shift: Read more of this post

8 Principles of Enterprise Performance Management

This is a list of what most of my clients tell me they want.  I propose that this list is exactly what EPM delivers.

So unless I hear otherwise, these are the 8 principles of enterprise performance management:

  1. We have a lot of data, we’re getting more every minute, and we want to use it to compete better;8 robots
  2. To use all that data, we want to gather it and transform it so that it makes sense;
  3. We want new insights into our business, based on the facts gleaned from the data;
  4. We want to know what levels of performance are possible in our industry, for our business, in the future; Read more of this post

Closing the Strategy-Execution gap

In March 2010, Harvard Business Review surveyed

Photo © Ruth Dimon, 2013

Photo © Ruth Dimon, 2013

1,075 readers about strategy and execution in their organizations.
Only 37% said their companies are ‘‘very good’’ or ‘‘excellent’’ at execution.

What is it that keeps us from having a sustainable process for executing our strategy?
On the one hand you have your strategic objectives, including:

  • Profitable Revenue Growth
  • Customer Success
  • Operational Efficiency
  • Employee Engagement
  • Cash cycle velocity
  • And so on.

On the other hand you have available resources at your disposal:

%d bloggers like this: