Corporate performance management (CPM) and enterprise performance management (EPM) – what do these mean? What is the difference between the two? Should I look to purchase both types solutions? These are questions that have come up in conversations recently and it is important to explain how they came to be, what these are, and common misconceptions about them.
CPM and EPM both evolved from business performance management (BPM), which dates back to the early 2000s. BPM was developed by software companies and consulting firms to describe solutions centered on management performance. Today, these terms are still used, but what exactly do they mean.
The term corporate performance management (CPM) implies a solution that is used to monitor and manage a corporation’s performance. These solutions contain advanced applications for driving a corporation’s goals and key performance indicators (KPIs), including profits, costs, and sales.
Enterprise performance management (EPM) encompasses all lines of business operations, including finance, marketing, manufacturing, sales, and supply chain. EPM is a category of enterprise software that includes support for a number of critical processes, such as strategic financial planning, planning and budgeting, forecasting, financial consolidation, reporting, and analysis.
So, are there differences between the two? Essentially, no. Both CPM and EPM solutions contain the same core concepts and are both a set of processes organizations use in order to obtain financial goals. One preconceived notion to the term CPM is that it only applies to corporations but not governments and non-profits. However, this is not necessarily true and because of this confusion, some companies and organizations are starting to adopt the term EPM. Does this mean CPM will cease to exist? No, not at all. In fact, there are two different components to CPM which have seen significant growth recently: financial corporate performance management (FCPM) and strategic corporate performance management (SCPM).
With the use of all of these acronyms in the performance management landscape and the confusion that surrounds them, it is important to up-to-date. To learn more about how RSM can assist you with performance management solutions, contact RSM’s management consulting professionals at 800.274.3978 or email us.