Enterprise Performance Management: Controlling your company’s performance has become even more critical and relevant

Digital transformation provides companies with several tools to simplify, streamline, control, optimise and boost their business and expansion strategies. Every day, all systems, solutions and technologies make one of the most valuable assets of this new era available to decision-makers: data.
The exponential increase in available data makes it increasingly critical that it be correctly analysed and transformed into relevant, reliable, flexible and timely information. The use of the latest technology will only add value if it is based on these principles and supported by efficient processes.
Turn data into useful information!
Enterprise Performance Management (EPM) helps you organise and systematise all data and uses tools, methodologies and best practices to measure and control defined targets.
Enterprise Performance Management
Why do we need it?
To enable decision-makers to take the best management actions, it is increasingly important to measure and monitor the economic and financial as well as the commercial and operational performance of companies, so as to produce quality just-in-time information in a controlled environment, reducing time spent on low value-added processes through automation.
EPM uses metrics that support:
1. Strategy optimisation
– The information collected gives decision-makers clearer and more realistic insight into strategic objectives and targets, possible vulnerabilities and changes in action plans. With this information, managers and employees are able to align the monitoring of strategic indicators and increase efficiency levels, while making more informed decisions in their areas of action.
EPM: Better monitoring of economic, financial, commercial and operational performance vs forecasts and targets.
2. Budgeting and variance analysis
– Budgeting models accelerate and improve the quality of forecasts, which are the basis for comparison with actual data collected and processed. The automation of these processes allows costs to be reduced and results to be maximised. With forecast information and related variance analysis, decision-makers can make more informed decisions about, among other things, the feasibility of new investments and anticipate expansion strategies.
3. Risk monitoring
– The information provided by good performance management solutions helps companies to anticipate, identify and reduce financial and profitability risks.
4. Increased productivity and results
– The analysis of key performance indicators can help to identify activities and products that do not generate value, to correct failures and vulnerabilities, to adjust processes, and to adopt new policies for planning and continuous improvement. Fast and permanent access to up-to-date and reliable information also reduces the time spent on low value-added processes.
Adopting an EPM solution
An EPM project (from a consolidated business area/segment and entity perspective) includes defining the best practices, processes and tools that inform statutory reports, management reports, strategic planning, budgeting, forecasting, and the reporting of analytical performance indicators to meet the real information needs of the decision makers.
This concept of performance management may seem simple, but it is not always the case. There are several challenges of a technological, operational and procedural nature. The success of an EPM project relies on the continuous alignment of the most appropriate technology with people and processes. Enterprises that choose to implement performance reporting solutions without ensuring that the related processes are the most appropriate are likely to be left with solutions that do not meet their needs.
Systematic performance evaluation is also important. Only thus can managers more easily identify the factors that may jeopardise the desired outcomes and adapt, avoiding poor or inefficient decisions. This planning and continuous review of processes fosters a more entrepreneurial culture, capable of responding to a constantly changing market, and greater integration between areas.
Where to start?
Before adopting an EPM solution you need to define objectives, create a solid strategy, and choose the solution that best fits your corporate reality. Hiring a partner with an experienced team and expertise in the various components of enterprise performance management, that is committed to the continuous development and support of solutions incorporating the latest best practices and that meet the new needs of companies, is crucial.
With an experienced (technological and functional) EPM team, Milestone is known for investing significantly in the innovative solutions that it develops internally, adaptable to any business sector.
Serving as a starting point, these solutions allow a significant reduction in the time (and cost) needed for an implementation project and, simultaneously, the incorporation of best practices in the models to be built, tested beforehand.
We also assist customers seeking support services for EPM solutions that have been implemented by other companies.
Contact us for more information.
Paulo Ferreira
Enterprise Performance Management Solutions Lead
Leave a Reply
You must be logged in to post a comment.