Understanding Corporate Performance
12 August, 2021
Many organizations still rely heavily on the use of Microsoft Excel for data collection and analysis, as well as budgeting, forecasting, and reporting activities. These processes are incredibly time-consuming and error-prone, leading to employees spending most of their time only on repetitive tasks, meeting the organization’s basic needs. Another problem is that vital activities like forecasts and model scenarios are based on those excel models, leading to faulty and unreliable models. Corporate Performance Management (CPM) helps free up valuable time and relocate resources to better use.
Corporate Performance Management is a term usually used to describe one of the central management tasks of a company. It generally refers to the company’s plan to use data feedback to improve its main financial performance and efficiency. It describes the methods and solutions required for enterprise management, including the following management processes:
Budgeting, planning, forecasting
Modelling the value creation of a company
Consolidation of the results
CPM offers three key advantages for finance teams. Firstly, automation of financial planning, reporting and consolidation processes, eliminating errors, and labor-intensive work provides an advantage. Secondly, the cycle time is accelerated, adequate data is provided, and more time can be used for value-added strategic work and analysis. Last, the centralization and automated data aggregation of finance and operations leave data unbiased and improve cross-departmental collaboration.
Initially, CPM was only used by finance departments. It has been significantly expanded to be used for many functions throughout the company and can be successfully implemented within comprehensive planning. It focuses on the future and can create forecasts based on actual analysis. Evidently, CPM softwares help companies increase efficiency by eliminating or extending spreadsheets and improving planning and reporting processes through centralized databases, workflow and process control. The right CPM solution is flexible, supports modelling and advanced analysis, and can help CFOs and other executives perform scenario analyses to improve decision-making.
The Financial Navigator is an all-in-one software solution dedicated to simplifying the financial management of MidCaps and SMEs. Its Forecasting, Budgeting, and Analytics features allow companies to benefit from the CPM core benefits. The Financial Navigator aggregates and analyzes all relevant financial data, creating transparency for decision-makers. Users benefit from real-time Cash Management, centralized payments, reliable Cash Flow Forecasting, intuitive Business Planning and ad-hoc Analytics.
Visit our website to learn more about the Financial Navigator and schedule a free demo!