Abstract
The overall objective of this study was to study Corporate Performance Management (CPM) with specific reference to best practice in CPM.
Every organisation, regardless of type, needs a clear and cohesive performance measurement framework that is understood by all levels of the organisation and that supports the execution of strategy.
CPM describes the methodologies, metrics, processes and systems used to monitor and manage the business performance of an enterprise. CPM is one the hottest trends in business intelligence. CPM is an enterprise-wide strategy that seeks to align departmental initiatives to prevent managers from optimising local business at the expense of the overall corporate performance.
One of the key issues in business performance is not only the development of strategy, but ensuring that the strategy is executed. Therefore, an organisation requires a performance management process that is integrated with the strategy management process.
The ability to execute a chosen strategy is as important as the strategy itself. Executives must have the ability to execute against a chosen strategy. With the right processes, methodologies, measurements and technology support, today’s companies can develop the competencies needed to execute its strategic vision in even the most turbulent of times. CPM solutions offer organisations these right
processes, methodologies, measurements and technology to successfully execute against their strategies.
Best practice can be defined as those practices that have produced outstanding results in other organisations that can be adapted for use in your own organisation. In implementing a CPM solution in an organisation it is possible to learn from best practice applications already in use.
Best practice companies understand that effective management reporting is a balance among quality, quantity and speed of information. The problem is not necessarily the quantity or speed but rather the quality of the information. Best practice assists organisations in finding this balance.
Organisations attempt to implement performance management solutions, often without success. If a framework of best practice was adopted the chances of success would have been greatly improved. The challenges of performance management are readily addressable through improved technology and best-practice processes.
Studies have identified common critical success factors and best practices when implementing CPM solutions at organisations. Organisations can greatly increase the chance of successful implementations by taking cognisance of best practice in CPM
Prof. W.M. Conradie