Enterprise Performance Management (EPM) is an umbrella term used to describe the methodologies, metrics, processes, and systems that help enterprise companies monitor and manage their business’s performance.
Executives seeking deeper insights into business trends and potentially ambiguous opportunities utilize Performance Management. Sub-components of EPM include: Enterprise Planning, Performance Monitoring & Measurement, and Enterprise-Wide Reporting.
Benefits definitely outweigh the challenges in deploying an EPM capability. These benefits include:
- Enterprise-wide visibility
- Strategic “red-zone” monitoring
- Improved resource planning and allocation
- Agile decision-making
- Predictions for future performance
- Delivery of a broad spectrum of critical business data (Note: this data is generated through monitoring, analyzing, and controlling organizational performance.)
Failing to properly manage or dedicate your company to continuous improvement of your performance management capability can lead to undesirable outcomes. Organizations must be aware of common ways that performance management initiatives can be undermined, causing business performance to stall or decline, instead of thrive.
Here are 10 ways you could be undermining performance management and suggestions on ways to avoid these pitfalls: