Analytics-Based Enterprise Performance Management (EPM)

Author: Gary Cokins

Many organizations are far from where they want and need to be with improving performance, and they apply intuition, rather than hard 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 (PIs); enterprise risk management (ERM); driver-based budgets and rolling financial forecasts; product / service / channel / customer profitability analysis (using activity-based costing [ABC] principles); customer lifetime value (CLV); lean and Six Sigma quality management for operational improvement; and resource capacity planning. Each method should be embedded with business analytics of all flavors, such as correlation, segmentation and regression 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.

Publication Date: May 2019

Designed For
CFO, financial controller, Accounting staff, CIO and information technology staff, Strategy and business planners, Marketing and sales managers, Budget managers, and Risk managers.

Topics Covered

• What is Enterprise Performance Management?
• What is Business Analytics?
• Eight Pressures that have caused interest in EPM
• EPM as a Value Multiplier through Integration

Learning Objectives

• Differentiate enterprise and corporate performance management (EPM/CPM) as the seamless integration of managerial methods rather than as a process
• Recognize how business analytics is an advance over business intelligence and where Big Data fits in
• Differentiate strategic KPIs in a balanced scorecard and operational performance indicators (PIs) in dashboards
• Recognize how to properly calculate product, service-line, channel, and customer profitability for analysis, insights and actions
• Describe "predictive accounting" for driver-based budgets / rolling financial forecasts, what-if analysis, and outsourcing decisions
• Recognize how to overcome implementation barriers such as behavioral resistance to change and fear of being held accountable
• Identify the type of analytics at the lowest end of the analytical continuum
• Identify a type of inferential/proactive type of business analytic
• Describe factors that have driven interest in EPM
• Identify the the number one reason why customer-related costs matter
• Describe the process included within the predictive continuum
• Recognize which process in the intelligence hierarchy provides for the highest ROI
• Identify the reasons why customer-related costs matter
• Describe characteristics of activity-based planning

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Finance (2 hours)

Program Prerequisites
None

Advance Preparation
None