How to Effectively Execute and Communicate Enterprise Performance Management (EPM) Solutions

Companies fail to effectively communicate and execute their performance management plans because the necessary management or communications systems are not in place. Beyond having a sound strategy, there are three other requirements for company success: having a management process that emphasizes accountability and control; taking advantage of available assets (employees and the information technology (IT) systems, especially enterprise resource planning (ERP) systems); and promoting a culture dedicated to continual improvement. Fundamentals for successfully implementing strategy include a sound strategy, strong management, and appropriate measurement systems. True corporate advantages come when these three areas are integrated to maximize performance. Tying measurement to management delivers accountability across the company, while linking measurements back to strategy ensures that objectives are measurable.

To specifically address business performance, a special class of analytical solution-called enterprise performance management (EPM) has emerged. EPM solutions provide the ability to measure, analyze, and optimize business results, enabling companies to align strategy and objectives with the overall performance of the business. They can integrate easily with other enterprise applications, such as ERP systems, to complement and extend their capabilities with analytical functionality. EPM solutions emphasize communication and the sharing of information across the company as well as providing the explanations behind key performance data. They can link performance back to strategic objectives, deliver feedback, and enable effective strategy management and optimization.