CorPeuM provides a single integrated environment where all the components required to manage the execution of strategy can be defined and operated as a single application. No other software is required. At CorPeuM we see this separation of applications as being detrimental to supporting strategy execution. What distinguishes a strategy execution system, is an architecture that completely integrates these capabilities so that they operate as a single application.
CorPeuM is fully integrated with all parts of the process.
Strategy execution is all about action. It’s about doing those things that are essential for an organisation, not only to grow, but to survive. And yet two-thirds of executives in a survey conducted by McKinsey admit they struggle with its execution. The report ‘Mastering the building blocks of strategy, by Chris Bradley, Angus Dawson, and Antoine Montard), which was based on the survey, goes on to say:
“It’s [strategy execution] a crucial struggle. No strategy, however brilliant, can be implemented successfully unless the people who have the most important jobs know what they need to do differently, understand how and why they should do it, and have the necessary resources.”
The CorPeuM management team have considerable experience in implementing performance management systems in both small and large organization’s around the world, to support strategy. However the tools at out disposal fell far short of what is required as has been outlined in this web site.
It was because of this frustration that led us to design and build a new and better breed of application that is more able to plan and manage the execution of strategy. A system that is totally integrated, that fits in with all leading management methodologies, and that copes with today’s fast moving, complex business environment.
People & Workflow is what drives CorPeuM
Management processes are primarily concerned with ‘what’ and ‘when. From a user point of view they determine when users interact with what parts of the planning models used to manage performance. From a data flow point of view they determine what and when data flows between models.
Within each major process, there are a number of interconnected tasks that each department has to perform, in a specific order and at specific times. For example, budgeting may start off with the setting of a high level goal to which sales will decide on how this will be delivered throughout the year. To do this they may need to work in collaboration with marketing and production. Once this has been completed, other areas of the organization can start allocating resources that fit in with the sales and marketing plan.
In the past these planning and reporting activities were run according the organizations planning/reporting calendar, and focused onto a particular period of time such as the current or next year. But as we have seen, the volatility of today’s business environment means that organizations are now unable to predict events even a few months out and so waiting for the next annual planning process when dealing with unexpected issues makes no sense at all.
To be able to do this on a continuous basis, where activities are triggered by events and exceptions is difficult. It can’t be done through menus as these define activities in a pre-set order. The only sensible option is through an intelligent workflow capability.
CorPeuM has such a capability where an administrator can order a series of tasks to be set, which can be triggered according to dates and/or events. These tasks determine how data is collected, transformed, approved and turned into analyses and reports. When a process is started, CorPeuM automatically distributes specific tasks to those involved, as and when they are required to respond.
Notifications are sent if deadlines are violated and late tasks or exceptions can be automatically escalated to those responsible for overseeing any action. For example, if a particular strategic initiative is falling behind on implementation, or is forecast not to deliver the benefits planned when launched, CorPeuM can automatically alert those involved and enforce a series of remedial actions.
To control the entire process, administrators are provided with an interactive time-line where they can look out for bottlenecks and re-assign or re-start tasks as appropriate. This ensures an efficient and effective continuous process – an essential requirement for effective execution.
CorPeuM Platform Leaflet
CPM ( Corporate Performance Management ) or Strategy Execution System?
It would seem that the execution of strategy should be a focus of CPM, which Gartner define as “… an umbrella term that describes the methodologies, metrics, processes and systems used to monitor and manage the business performance of an enterprise.”
To go with this, Gartner have identified a number of application categories that provide functionality to support those management processes, methodologies and metrics:
Budgeting, planning and forecasting. These encompass short-term financially focused budgets, longer-term plans and high-level strategic plans. Applications should deliver workflow capabilities to manage budget/plan creation, submission and approval, as well as provide the ability to dynamically create forecasts and scenarios.
Profitability modelling and optimization. This includes activity-based costing (ABC) applications that determine and allocate costs at a detailed level, and activity-based management applications that provide capabilities to enable users to model the impact on profitability of different cost and resource allocation strategies.
Scorecard applications. This includes the ability to deliver dashboards and link key performance indicators (KPIs) to a strategy map, with a hierarchical cause-and-effect relationship among the KPIs. They are often used in conjunction with a particular methodology, such as the Balanced Scorecard.
Financial consolidation. This enables organizations to reconcile, consolidate, summarize and aggregate financial data based on different accounting standards and federal regulations.
Statutory and financial reporting. These are specialized reporting tools that can format output as structured financial statements, and support specific generally accepted accounting principles (GAAP) presentation rules, such as U.S. GAAP or International Financial Reporting Standards.
To meet the challenge of CPM, vendors have developed (or acquired) a range of software products, often with different architectures, for each application area. This makes them difficult to integrate. For example, to implement a scorecard application that is linked to the budget process will require two products with different interfaces, and where a change in one application does not automatically update the other.
Without a totally integrated architecture, the overhead involved in maintaining a system not only severely impacts the time it takes to include changes, but also, because of complexity involved, means that any links becomes untrustworthy, which jeopardises the very purpose of the application.
Strategy Execution Leaflet
The CorPeuM mission is to improve the execution of strategy!
The basis of all performance management is in administering an organization’s business activities (sales, marketing, production, product development, etc.) in an environment that is increasingly uncertain. As outlined in ‘What is Strategy Execution?’, a strategy execution system should support the way in which these business processes are planned and monitored. This will require a number of integrated application capabilities, including:
Business Modelling: The system should be able to model an organization’s current and proposed business processes that show how they are connected to achieve the organization’s purpose.
Metric Categories: It should be possible to view that business model in terms of a number of metric categories such as the resources it consumes, the risks being run, the workload being performed, and the outcomes that are generated. Measures from these different categories will need to be displayed in combinations. For example, to show whether an activity is worthwhile requires its costs to be shown, along with the work performed and any outcomes. In addition, these metric views should be tailored to those people responsible for particular areas of the business.
Methodology support: It should adapt to an organisation’s chosen management methodology. i.e. it should conform with the terminology used and the way in which planning activities are prescribed.
Initiative management: It should allow the creation, selection, approval and monitoring of projects/strategic initiatives that improve organizational performance and how they link to corporate goals.
Scenario planning: It should allow combinations of initiatives to be assessed and the side-by-side analysis of alternate business models, through which senior management can set future plans.
Dynamic reports and analyses: It should communicate plans and results through personalised reports, analyses, dashboards, scorecards and strategy maps but in the context of how well the plan is being executed, so that the future can be better managed.
Dynamic workflow management: The system should be able to cope with continuous planning and monitoring of execution, which intelligently involves the right people at the right time, from across the enterprise.
Most people would agree that these capabilities are essential for managing strategy and its execution. Similarly, most CPM software vendors would claim to have these, but as they say, the devil is in the detail.
CorPeuM provides a single integrated environment where all the components required to manage the execution of strategy can be defined and operated as a single application. No other software is required.
At CorPeuM we see this separation of applications as being detrimental to supporting strategy execution. What distinguishes a strategy execution system, is an architecture that completely integrates these capabilities so that they operate as a single application.