By: Rawad Khallad, Development Manager, CUBES Solutions
Corporate Performance Management (CPM) experienced a lot of changes over the years in line with continuously emerging technology, which enabled the field and significantly expanded its capacity. Before we dive in, let us establish the meaning of CPM. It refers to a set of processes and methodologies acting as a way of aligning organizations’ strategies and goals to streamline the workflow and better control the success of businesses.
Considering that CPM is a subset of business intelligence, it supports monitoring and managing the performance of organizations based on key performance indicators (KPIs) like client retention rate, customer satisfaction, operational costs, and risk. Businesses can utilize CPM to enhance their communication while also aligning and implementing their strategies. Hence, CPM holds a critical essence, especially when seeking to drive (and maintain) business growth.
In affirmation of the power of the industry, a Gartner survey showed that the global CPM market is projected at a CAGR growth of 9.5% from 2020 to 2025 to hit $5.75 billion. Moreover, it was found in a Forrester Consulting report that businesses are reaching a 307% return on investment (ROI) in only three years after utilizing CPM.
Over the years, corporate performance management has transformed at a remarkable pace. This advancement was so powerful that it led to fundamental changes in many areas like organizational structures, business models, the nature of work, and employee needs. Performance management quickly rose to a prominent state, becoming vital for companies as they aim to strengthen their financial performance and decision-making processes.
Key Benefits
- Strategic decision-making
- Improved performance
- Enabled collaboration
- Continuous improvement
- Objectives aligned with strategies
CPM Expansion: The Future Awaits
The history of corporate performance management dates to the 1920s when companies started focusing on maximizing production and achieving operational efficiency. Since then, we have certainly seen significant changes enticed by technology, ever-changing digital transformations, and our modern day of steady discoveries. CPM is continually evolving and subject to changes, thus encouraging all organizations and businesses looking to utilize CPM to create a progressive performance management system that keeps all necessary factors under consideration.
With progress, the benefits of performance management became more effective. The market has seen empowerment during the rise of modern technologies and innovative tools, and businesses were able to easily obtain real-time data capturing and analysis. Notably, businesses have become more agile as CPM solutions and methodologies provided a smooth way to obtain reliable insights and offered a better environment to become more responsive to the changing market.
The progress of CPM over the years has had an impact on organizations today. For instance, there emerged a shift towards predictive analytics, helping organizations to foresee future trends and make strategic, informed decisions based on data. This kind of development further enabled organizations to better identify risks and opportunities, and better optimize their operations.
Several key trends drove CPM to the successfully thriving market we know now. These trends include the abovementioned predictive analytics along with the capacity to integrate with business intelligence, providing a more collaborative environment, and measuring performance to properly execute strategies. Leveraging the latest technology and contemporary trends enabled organizations to better utilize CPM solutions to enhance their performance and achieve a meaningful customer experience. It is also important to note that organizations are now starting to target CPM solutions to meet their sustainability and social responsibility objectives, thus creating further prosperity for the market.
The future of the global CPM market is still exciting and full of potential. It is a future that promises more intelligence, and an even higher value to stakeholders.
Rethinking Performance Management
The way we manage businesses has completely changed over time mostly due to continuously emerging technologies and modernizations. There comes a time to change alongside the world and start adapting to the modern way. Therefore, when it comes to Corporate Performance Management, organizations can obtain additional efficiency the more they become willing to reimagine their performance management by utilizing the latest trends that appear in the market.
Cloud-based CPM systems are one of the most popular trends of today’s digital era that remarkably accelerates the growth of businesses. Those CPM solutions grant companies the benefit of managing on the cloud all aspects related to their performance management process, such as reporting and budgeting. This approach empowered the industry by allowing corporate performance management solutions to become more accessible and effective.
The cloud-based approach grants companies access to advanced analytics and data visualization tools. This, consequently, supports a full understanding of business performance and making data-driven decisions. The significance of cloud-based CPM lies in ensuring that companies have real-time operational and financial data that gives access to clear insights, better agility, and full visibility over operations.
The more visibility an organization has, the better chances it has for growth. CUBES Solutions for example offers a performance management approach that offers comprehensive visibility and control over performance, strategy, risk, operations, and other business elements while also facilitating a smooth way to reach complete corporate governance.
Data captured using CUBES solutions and tools gives the qualitative and quantitative results needed for successful corporate performance management. Hence, organizations will be able to drive truly meaningful data and in-depth data feeds that open way for many benefits such as making strategic decisions, improving customer experience, and generating larger ROI.
Driving meaningful data is one of the main business drivers, and an essential key for organizations to obtain better control over their performance as well as other business elements.
In Summary
Corporate Performance Management is becoming increasingly more critical to companies by the day as they aspire to enhance their performance, decision-making process, data-driven insights, and visibility over business elements. CPM frameworks and solutions have been utilized over the years to better align activities and improve outcomes, corporate performance has been experiencing ongoing expansion and evolution to have a bigger advantage for all companies and organizations. The future of the industry is yet to reach the finish line, and there is a global expectation of further development, especially with emerging technology at the scene.
About the Author
Rawad Khallad is a goal-oriented Development Manager at CUBES Solutions, with 19 years of expertise in the IT and technology sectors. Mr. Khallad demonstrates excellence in the field of Corporate Performance Management and is experienced in system integration and data migration. He is specialized in developing, implementing, and managing IT projects, leading the development of company software products, and providing support to implementation teams.
