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What is EPM?
Column5 sees Enterprise Performance Management (EPM) as an umbrella term that describes the methodologies, metrics, processes, and systems used to monitor and manage an enterprise's business performance.
Methodologies:
Systematic & sustainable procedures for tracking, measuring, and improving business performance. |
Metrics:
Real-time measures (KPIs) focused on key issues and critical data for dynamic decision making & monitoring progress against financial and operational plans. |
Processes:
Performance feedback loops link strategic, operational, activity and results with the ability to respond to dynamic market conditions. |
Systems: Technology
Solutions that are financially intelligent, SOA, simple to configure, business owned & combine methodology, metrics and processes in an enterprise-wide reporting and analysis environment designed to track, understand and manage information. |
The aim is to enable organizations to more effectively execute strategy. Why? because that enables organizations to meet their mission and goals: be that increasing profitability, reducing the cost to serve or other performance indicators. To achieve this, organizations need more mature management processes that readily adapt to change while also providing consistent information across organizations.
What do we mean by process maturity?
- Process of equipping finance functions with the processes, tools, and skills to more effectively protect and enhance shareholder value
- Requires coordination with functions to develop management processes that brings together strategy, finance, sales, and operations to meet the needs of the entire organization
- Enables development of the most important source of competitive advantage: ability to quickly, cost-effectively, and profitably adapt to change
- Equips finances to fulfill one of its most important roles: to help organizations monitor progress against plans
In our experience, the two most common barriers to improving organizational effectiveness are:
- Managing variability
- Staying on top of market demands
- Daily fluctuations on today's economy
- Frequent change and substantial variability
- Commodity price fluctuations
- Forecasting cash flow in times of uncertainty
- Information consistency and accuracy
- Getting valid information that is truthful for its time period
- Getting accurate forecast information on all levels
- Information not available
- Inaccurate data
- Too much data
Column5 provides a range of consulting services to overcome these barriers and build a bridge to guide our clients down the sometimes difficult journey towards a more effective, better performing organization.
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