What is Corporate Performance Management Software?

Introduction

Corporate performance management (CPM) software is used by enterprises to define and manage the strategies they require to track their business performance. The platform is utilized to create and execute processes and methodologies, enabling companies to monitor key performance indicators (KPIs) related to their corporate objectives. Typically, executives and managers leverage this solution to improve business performance, while accounting units also deploy it to assess financial performance.

CPM products consolidate several kinds of business information (sales, operational, financial, etc.) across all business units of a company. Therefore, the application needs to be integrated with software tools such as supply chain and logistics, CRM, accounting, and ERP solutions. In addition, integration is also required with governance, risk, and compliance software to manage risks that could affect business performance.

Features of Corporate Performance Management Software

Budgeting, Forecasting, and Planning

These actions help with both long-term and short-term planning. Features include:

• Management reporting
• Scenario modeling
• Forecasting
• Financial budgeting

Consolidation and Close

These features enable you to combine and evaluate data from multiple sources:

• In-depth audit trails
• Consolidated and local reporting
• Minority ownership
• Intercompany eliminations
• Multi-currency management
• Reports and journal entries
• Financial data consolidation

Compliance and Financial Reporting

These features help with your regulatory filings and financial statements:

• XBRL assistance for regulatory filing
• Financial reporting and automated board
• Excel-based reporting
• Management reporting
• Financial statement reporting

Analytics

These functionalities help with both detailed as well as casual analysis. You can use them to understand performance metrics in relation to your firm’s strategic goals:  

• Benchmarking with outside data
• KPI setting
• Cost and profitability evaluation
• Color-coded scorecards
• Personalized dashboards

Integration

It important to integrate the CPM platform with your company’s business intelligence (BI) system. The BI solution feeds performance data to the CPM application, which the latter links with financial and strategic data to facilitate high level assessment and planning. Integration types include:

• Direct connections with third-party data sources
• Excel data integration
• Flat file integration

Benefits of Corporate Performance Management Software

Enhanced Data Visibility

CPM software allows you to separate data into important and non-essential categories. The dashboard presents options for you to view and analyze simplified data forms like maps, spotlights, alerts, graphs, and charts.

Goal Alignment

You can easily align your corporate goals using CPM software. It helps you to align your company’s resources with your long term and short term goals. Plus, it facilitates periodic analysis of both organizational and individual goals.

Collaboration

A CPM platform enables you to communicate, harmonize, and synchronize the goals of the different departments in your organization. Thus, it facilitates improved collaboration and communication between different business units.

Regulatory Compliance

Every business needs to meet regulatory compliance requirements like transparent practices and information disclosure. The CPM tool helps to streamline future business plans and review any obstacles.

Risk Management

The CPM solution assists you to easily manage business uncertainties and risks. It provides access to essential information and facts that help you to understand risks and take appropriate and informed decisions to overcome them.

Unified Dashboard

Decision makers and managers can utilize dashboards to efficiently analyze business performance. This saves effort and time for the management and leadership squads.

Easy Data Access

Simplified access to data is essential for quicker decision making. A CPM application enables you to easily access and analyze business data.

Data Management

Finally, a CPM platform helps to combine data from various sources. This enables you to understand where your business is moving towards. The solution makes data available in real time. You can manage this data in a user-friendly and simplified format.