History of Corporate Performance Management

It was not possible for companies to collect and analyze data properly before the 20th century. In the 1970s, decision support systems were introduced to business. Decision support systems can analyze one department at a time. In 1980, executive information systems were introduced. The executive information system can effectively summarize ongoing transactions within an organization. By the 1990s, business intelligence improved with the introduction of computer technologies. Customer relationship management also improved. Advanced management techniques combined with new technology have improved business planning, reporting, and analysis. These new developments gave rise to an integrated methodology known as corporate performance management. Entrepreneurial business management is a holistic approach to strategic planning.

The concept of corporate performance management was introduced in 2001 by Gartner research. Corporate performance management (CPM) is also known as business performance management. Describes the process, methodologies, metrics, and systems needed to manage the performance of an organization. The main features of corporate performance management include full integration, automation of data processing, support for collaboration, analytical insight, and focus on exceptions.

The three levels of corporate performance management are the client, application, and data levels. Important steps in corporate performance management are strategic planning, scorecard, budgeting, forecasting, consolidation, and business intelligence.

While strategic planning is the basic requirement of any business, the goal of the scorecard is to examine performance related to strategic planning. Corporate performance management uses metrics to assess the current state of the business. The data related to the metric is consistent and correct. Corporate performance management speeds up the budgeting and forecasting process, improving accuracy and providing auditable budgets. Foresight ability helps the company to take appropriate measures according to the occasion. Consolidation is an important component in CPM. Finances depend on the consolidation process. Business intelligence is about turning data into information. This information is used in decision making.