Analytics-Based Enterprise Performance Management - 21 November 2023 - Busihub

Gary Cokins and Sufyan Khan talk about Enterprise Performance Management.

Many organizations are far from where they want and need to be with improving their performance. They apply intuition, rather than fact-based data, when making decisions. Enterprise performance management (EPM) is now viewed as the seamless integration of managerial methods such as strategy execution with a strategy map and its companion balanced scorecard (KPIs) and operational dashboards (OPIs); enterprise risk management (ERM); capacity-sensitive driver-based budgets and rolling financial forecasts; product / service / channel / customer profitability analysis (using activity-based costing [ABC] principles); customer lifetime value (CLV); supply chain management; lean and Six Sigma quality management for operational improvement; and resource capacity spending planning.

Each method should be embedded with business analytics of all flavors, such as correlation, segmentation, regression, and clustering analysis; and especially predictive analytics as a bridge to prescriptive analytics to yield the best (ideally optimal) decisions. This presentation will describe how to complete the full vision of analytics-based enterprise performance management.

Key questions addressed in the session:

What are forces and causes that have created interest in
enterprise and corporate performance management (EPM/CPM)
methods?

There is confusion and a lack of consensus as to what enterprise
and corporate performance management (EPM/CPM) is. Can you
describe or define EPM/CPM?

Of the forces and causes you described which three do feel are
the most impacting to improve an organization’s operational and
financial performance?

The adoption rate for EPM/CPM methods by organizations has
been relatively low even though some have been created decades
ago. Why is the implementation of them taking so long?