What is Corporate Performance Management (CPM)?

We have written quite a lot about both Corporate Performance Management (CPM) (this post on How Dashboards & Scorecards Can Improve Your Financial Reporting & this post detailing 5 Ways to Convince Your Boss You Need New CPM Financial Software) and Enterprise Performance Management (EPM) (this post on How to Improve Revenue Planning with EPM Software & this post on KPIs: An Essential Component of Enterprise Performance Management), we have never actually defined what is Corporate Performance Management.

There are a number of definitions and competing terms used for Corporate Performance Management (CPM). For example, some of these competing terms include BPM (Business Performance Management), EPM (Enterprise Performance Management) and FPM (Financial Performance Management). Out of these, we prefer the term CPM since it signifies corporate-wide application

What is CPM: Understanding Corporate Performance Management

Enter corporate performance management: a set of strategies, metrics, and processes that organizations use to manage and improve overall business performance.

Corporate Performance Management (CPM) is a process and methodology that provides an integrated approach to business planning, budgeting and forecasting for finance, sales, marketing, operations and HR. CPM refers to a strategic framework for managing and improving organizational performance through data analysis, reporting, and process management. In this context, corporate performance management cpm plays a crucial role in aligning company strategies with operational execution. CPM’s integrated approach is essential for business management, as it aligns operations, goals, and metric tracking to optimize organizational performance. Once implemented, CPM links the strategies of an organization to their plans and execution, therefore helping organizations succeed. To support these initiatives, CPM includes the following management processes:

• Goal-setting and defining the business model.
• Budgeting, planning, and forecasting.
• Consolidating results and closing the books on a periodic basis, including financial consolidation and preparing unified financial statements.
• Reporting results to internal and external stakeholders, which involves collect data and data reporting for comprehensive insights.
• Analyzing performance vs. plan, prior years, across divisions or products, using analyze financial data and comprehensive analysis to drive improvements.
• Then modeling again – creating what-if scenarios.

Financial data is collected and analyzed for strategic planning and performance measurement across departments. CPM metrics and key metrics are tracked to inform performance tracking and support data driven decision making. Ongoing monitoring and analysis through CPM supports the organization’s financial health by providing accurate insights and timely interventions.

By leveraging CPM, companies can develop and implement actionable strategies and manage performance across the organization.

What is Kepion Planning?

Kepion Planning is one of the leading software solutions for CPM, offering a Cash Flow Forecasting Software that provides an integrated approach to business planning, budgeting and forecasting for finance, sales, marketing, operations and HR. With Kepion, data is consolidated into a single platform for reporting and analysis across the enterprise. Kepion seamlessly integrates with existing systems and operational systems, such as ERP and CRM, to streamline data management and improve automation. The platform leverages smart automation to enhance efficiency and accuracy in planning and reporting. Compared to broader enterprise performance management approaches, Kepion delivers comprehensive capabilities that integrate strategy, planning, and execution across financial and operational processes.

Why is corporate performance management in business Important?

Recent studies have shown that strategy execution is the number one area of focus for senior executives today and corporate performance management is a way to help ensure your strategies get executed. CPM also supports risk management by helping organizations anticipate and mitigate potential challenges through scenario modeling and integrated performance tracking.

By integrating organizational goals, metrics, and projects, your company is aligned around strategic priorities, while also maintaining financial stability and controlling operational costs as part of broader business management benefits, allowing you to focus on the key drivers of the business.

Who should use Corporate Performance Management tools?

CPM is important for every company, but especially those looking to:

• Remodel their budget
• Reduce costs
• Better align KPIs
• Upgrade their organizational strategy
• Improve the financial planning process
• Enhance employee productivity and optimize human resources management
• Streamline financial consolidation and performance tracking

Key Performance Indicators (KPIs) in Corporate Performance Management

Key Performance Indicators (KPIs) are at the heart of effective corporate performance management, providing organizations with the measurable benchmarks needed to evaluate progress and achieve business objectives. KPIs are quantifiable metrics that reflect how well a company is performing in relation to its strategic goals, making them essential for tracking organizational performance and financial health.

Within corporate performance management, KPIs span several categories, each offering valuable insights into different aspects of the business. Financial metrics—such as revenue growth, profit margins, and return on investment—are crucial for assessing a company’s financial performance and stability. Operational metrics, including cycle time and defect rates, help organizations analyze internal processes and optimize efficiency. Customer-focused KPIs, like Net Promoter Score (NPS) and customer retention rates, reveal how well a business is meeting client needs, while employee metrics such as engagement scores and turnover rates support human performance management and employee satisfaction. Innovation metrics, including the number of new products launched or R&D investment, highlight a company’s ability to adapt and grow in a competitive market.

To ensure KPIs drive meaningful results, they should be specific, measurable, achievable, relevant, and time-bound (SMART). This approach enables organizations to monitor progress, identify trends, and make data-driven decisions that support both short-term and long-term business success.

In the realm of digital marketing and online advertising, KPIs play a pivotal role in evaluating the effectiveness of marketing campaigns. Metrics such as click-through rate (CTR), cost per click (CPC), and cost per thousand ad impressions (CPM) allow businesses to assess the impact of their digital marketing efforts, optimize advertising spend, and maximize return on investment. By analyzing these key performance indicators, organizations can refine their marketing strategies, reach more paying customers, and improve overall campaign performance.

Corporate performance management software streamlines the process of collecting, analyzing, and reporting on KPIs. With a centralized platform, businesses can easily track performance metrics across the entire organization, gain valuable insights from historical data, and make informed decisions that drive growth. CPM software empowers teams to monitor progress toward financial objectives, align marketing efforts with business goals, and ensure the company’s financial health remains strong.

In summary, key performance indicators are fundamental to corporate performance management, enabling organizations to measure success, identify opportunities for improvement, and achieve their strategic vision. By leveraging robust CPM software and focusing on the right KPIs, companies can enhance their financial performance, optimize operations, and secure a competitive edge in today’s dynamic business environment.

How can Kepion Planning help my business grow?

Kepion Planning is scalable, making it the perfect complement for a growing business. Our flexible app modeling platform allows your business to start with a baseline model for budgeting, forecasting and reporting using integrated business planning software. As your business process become more complex, Kepion can help simplify things through automation. Kepion also supports performance tracking and enables data driven decision making by providing actionable insights from your financial data. We prioritize an intuitive process flow within our web interfaces for streamlined results.

Is my business too small to use Kepion Planning?

Kepion provides flexibility for both small and large enterprises. Small businesses can leverage one of our pre-built apps to get started quickly, while mid-size to large enterprises can use our Business Intelligence BI modeler tool to build the solutions that fit the way they work.

What are the business benefits of cloud-based CPM software?

Cloud-based CPM software builds on the benefits of traditional EPM software, making it easier and faster to deploy, reducing the cost of ownership, increasing innovation speed, and supporting enhanced collaboration across the enterprise.  It helps organizations automate manual tasks, accelerate key finance processes, and drive better alignment between Finance and operations.

Don’t operate under separate planning & reporting processes anymore. With Kepion’s Corporate Performance Management (CPM) Solution, you can collaborate on a single approach for integrated business planning. Designed for the business, by the business, Kepion’s Corporate Performance Management Software allows sales, finance, operations, marketing and HR to configure personalized planning apps specifically to how they work. Kepion’s Dashboards and Scorecards Software helps you visualize performance, plan for efficiencies and track your results. Schedule your demo today to learn more about what Kepion can do for your organization.