Corporate Performance Management
Corporate performance management (CPM) is a set of methodologies, criteria, processes, software tools and systems, which aim to enhance business performance. It is a process of business strategy management, engineered to convey plans into actual results. If applied properly and among all levels of the company, CPM will act as a multiplier of success.
An effective controlling system represents the basis of CPM. It is the most important process which enables successful performance management and offers essential support in monitoring and implementing strategic and operational business goals. Experts at P&S Group will help you set up the following main controlling systems and processes:
Planning includes defining one or more detailed plans and is one of the basic processes in business performance management. Through the process of planning, the company undertakes goals which it wants to pursue and determines the strategy to achieve them. Depending on the needs the company can conduct a plan at the operational and/or strategic levels. Modern information technology tools enable easy consolidation and centralized management with a planning process.
Forecasting is a method, which combines the use of certain assumptions, historical data, knowledge, experience and judgment, to help predict the movement of selected categories in the future. Typically, the expectations are guided by mathematical models, i.e. exponential smoothing, moving average, regression analysis and projection of trends.
Budgeting is a process in which quantitative needs of resources are carefully determined or predicted, such as the optimal number of employees, amount of material, amount of capital, the volume of external services, etc. Budget for a specified period (e.g., month or year) can be made at the level of a company, business units, projects or for an individual employee. Modern information tools, on offer to clients, enable easy consolidation and effective control over the use of resources.
Financial consolidation is a process of preparation and matching of financial information within the parent company and its subsidiaries. The results are consolidated financial reports that are meant for internal and external reporting and facilitate a transparent overview of operations within the group and the group as a whole. Due to frequent acquisitions of new companies and changes in ownership structure, preparing consolidated reports that contain accurate information represents a major challenge. Modern tools allow centralized management of the consolidation process, standardization, automation and simplified preparation of final reports for internal and external users.
Reporting is a process of preparation and publishing of various reports for external users, managers and/or employees. Reporting to external users is required by law and mainly includes preparation of various financial reports. Reporting to management is usually more extensive since the reports are meant to support their work and provide the basis for decision making processes. The challenge today is to organize large amounts of data in a system, which provides employees with coherent data and accurate information at the right moment.