Enterprise Performance Management

Enterprise performance management (EPM), also known by the names corporate performance management (CPM) and business performance management (BPM), is a strategic approach to improving business performance. Gartner Inc. defines EPM as, “the methodologies, metrics, processes, and systems used to monitor and manage the business performance of an enterprise”. EPM in short represents the strategic deployment of business intelligence solutions.

Methodologies
There are various methodologies for implementing EPM. It gives companies a top down framework by which to align planning and execution, strategy and tactics, and business unit and enterprise objectives. Some of these are six sigma, balanced scorecard, activity-based costing, total quality management, economic value-add, and integrated strategic measurement. The balanced scorecard is the most widely adopted performance management methodology. Methodologies on their own cannot deliver a full solution to an enterprise's CPM needs. Many pure methodology implementations fail to deliver the anticipated benefits because they are not integrated with the fundamental CPM processes.

Metrics
Metrics and Key performance Indicators (KPI’s) are critical in prioritization what has to be measured. The methodology used helps in determining the metrics to be used by the organization. It is frequently said that one cannot manage what cannot be measured. Identifying the key metrics and determining how they are to be measured helps the organizations to monitor performance across the board without getting deluged by a surfeit of data; a scenario plaguing most companies today.

Dashboards and scorecards
Business has today evolved from the age when Business Intelligence would take days or weeks to provide key organizational data requested by the senior managers. Up to the minute data, coupled with alerts and drill down facilities to locate the reasons for disruptions has empowered managers today. These solutions are integrated with the existing enterprise wide solutions thus augmenting the systems already in place.