|Corporate Performance Management|
One Version of truth
Imagine driving a car without an instrument panel? Or the speedometer shows your speed from 5 minutes ago. You run the risk of getting a ticket, or much worse getting into an accident. Or maybe you will be late because you're being overly cautious. Now imagine you're the CEO of a company without an instrument panel - that's one of the reasons for CPM. But you need more than an instrument panel; you also need a map especially if you're trying to get somewhere you have not been before. To the CEO, the map is similar to a company's strategy map - another component of CPM.
Now consider that there are passengers in the car, and they all have different objectives. The child in the back wants to stop frequently or the grandmother wants to take the scenic route. This is not a big problem in a car as the driver can ignore the conflicts. But this is much harder in an organization where each department has its own objectives. Ensuring alignment to corporate objectives using scorecards is another key element of CPM
One way to get closer to the goal of a company that knows how it's really doing -- which means being fully transparent and working toward the same goals with the same assumptions and data -- is through the deployment of a CPM (corporate performance management) system. Such a system analyzes data related to business performance and presents it as a collection of KPIs (key performance indicators) aggregated into a "dashboard" of simple graphical readouts, using metaphors such as stoplights and gas gauges. From the dashboard, managers can drill down to study performance data in detail.
Corporate performance management (CPM) is a concept introduced by Gartner Research in 2001, which "all of the processes, methodologies, metrics and systems needed to measure and manage the performance of an organization."
According to Gartner, "Corporate performance management (CPM) is an umbrella term that describes the methodologies, metrics, processes and systems used to monitor and manage the business performance of an enterprise." Gartner views CPM as an important concept because it represents the strategic deployment of business intelligence (BI).