How can you evaluate EPM performance and exceed industry benchmarks?

EPM refers to the processes designed to help organizations plan, budget, forecast, etc. Still not aware of the EPM? EPM refers to Enterprise performance management, EPM solutions are primarily used by CFOs and the office of finance, while other functional areas, such as HR, sales, marketing, and IT, use EPM for operational planning, budgeting, and reporting.

EPM Objectives: Improve project delivery efficiency Enhance resource utilization Minimize project risks Increase stakeholder satisfaction Metrics: On-time project completion rate Budget variance Resource utilization rate Customer satisfaction scores Project success rate Risk mitigation effectiveness Employee engagement in projects Return on investment (ROI) from projects

EPM stands for Enterprise Performance Management, which is a system for setting, measuring, and improving the performance of an organization. EPM objectives are the specific and measurable goals that an organization wants to achieve, such as increasing revenue, reducing costs, or improving customer satisfaction. EPM metrics are the indicators that track and evaluate how well the organization is progressing towards its objectives, such as sales growth, profit margin, or net promoter score. EPM objectives and metrics should be aligned with the organization’s strategy, and should be regularly reviewed and updated to reflect changing business conditions.

1. Define your EPM objective and metric The first step in evaluating EPM (Enterprise Performance Management) performance is to clearly define your objectives and establish measurable metrics to track progress. EPM objectives may include improving financial performance, optimizing operational efficiency, enhancing decision-making processes, or achieving strategic goals. Metrics could include key performance indicators (KPIs) such as revenue growth, profit margins, return on investment (ROI), customer satisfaction scores, or employee productivity metrics. By aligning EPM objectives with organizational goals and selecting relevant metrics, you can effectively evaluate performance and identify areas for improvement.

I am of the opinion that EPM objectives should align with business goals and vision. It should identify specific benefits such as increasing customer satisfaction or improving financial performance. Also, various metrics and systems must be installed in order to track performances and progress. Continuous refining the progress will help in enhancing performance.

Benchmark EPM performance against best practices by: Comparing key metrics with industry standards. Evaluating project success rates, resource utilization, and stakeholder satisfaction. Assessing adherence to project management methodologies. Analyzing efficiency in project delivery and risk management. Incorporating feedback loops for continuous improvement aligned with industry-leading practices.

Over the past couple of decades, EPM software platforms evolved from Windows-based client/server systems to internet-enabled, web browser-based applications. Today, there’s an increasing demand for cloud-based EPM software, also known as software as a service (SaaS). When EPM software is “in the cloud” it simply means that the application is housed on a network of remote servers, instead of at a company’s location.

Define Key Performance Indicators (KPIs): Identify the most important metrics and KPIs for your organization's EPM processes. This could include financial indicators, operational metrics, or strategic goals. Implement a Comprehensive EPM Solution: Utilize a robust EPM software system that can help you track, analyze, and report on your KPIs effectively. This can provide real-time insights into how your organization is performing. Benchmark Against Industry Standards: Compare your performance metrics to industry benchmarks to see where you stand relative to your competitors. This can help you identify areas of strength and areas for improvement.

2. Benchmark your EPM performance against best practice Benchmarking your EPM performance against industry best practices and peer organizations can provide valuable insights into your relative performance and areas for improvement. Conducting benchmarking studies allows you to compare your EPM processes, capabilities, and outcomes against leading practices and identify gaps or areas where you may be underperforming. By understanding how your EPM performance stacks up against industry benchmarks, you can identify opportunities to adopt best practices, implement process improvements, and enhance overall performance.

In my experience and knowledge, paying attention to areas such as strategic planning, budgeting, forecasting, performance measurement and risk management.

- Define clear performance metrics: Identify key performance indicators (KPIs) relevant to EPM (Enterprise Performance Management) such as profitability, efficiency, productivity, and customer satisfaction. -Benchmark against industry standards: Research industry benchmarks for EPM metrics to understand where your organization stands compared to competitors. - Invest in technology and talent: Invest in advanced EPM software and tools as well as training for employees. - Collaborate with industry peers: Share best practices and insights with industry peers to gain knowledge and learn from others. - Stay agile and adaptable: Adapt quickly to changes in the market.

Gathering and updating data in Excel or similar tools can be a real headache, especially for larger enterprises. While EPM helps with data gathering, remember that you may still need to manually update existing data outside the software. Providing training, guidance, and support is important to ensure a smooth transition for every department involved. EPM software has one primary goal: to improve business performance.

3. Identify your EPM strengths and gaps Evaluate your EPM performance to identify both strengths and areas for improvement. Assess your organization's capabilities, processes, systems, and data quality to determine where you excel and where there may be gaps or inefficiencies. This could involve conducting a comprehensive assessment of your EPM framework, including financial planning and analysis, budgeting and forecasting, performance measurement, risk management, and strategic planning processes. By identifying strengths, you can leverage and build upon existing capabilities, while addressing gaps enables you to implement targeted improvements to enhance overall EPM performance.

Enterprise performance management is a powerhouse tool with the potential to transform the way businesses operate. It stands as a powerful ally in the realm of business management by assisting organizations in operational planning, KPI tracking, and budgeting. So, whether you’re a small startup or a well-established enterprise, embracing EPM can propel your organization toward new heights of success.

4. Prioritize your EPM Improvement initiatives Once you've identified strengths and gaps in your EPM performance, prioritize improvement initiatives based on their potential impact and alignment with organizational priorities. Consider factors such as the magnitude of performance improvement opportunities, resource requirements, feasibility, and strategic importance. Focus on initiatives that address critical gaps, deliver tangible benefits, and support long-term organizational objectives. By prioritizing improvement initiatives, you can allocate resources effectively and ensure that efforts are directed towards initiatives that will drive meaningful improvements in EPM performance.

5. Execute your EPM Improvement Initiatives Execute your prioritized improvement initiatives by developing detailed action plans, allocating resources, and implementing changes to your EPM processes, systems, and practices. This may involve redesigning workflows, upgrading technology infrastructure, enhancing data analytics capabilities, or providing training and development opportunities for staff. Effective execution requires clear communication, strong leadership, and collaboration across functional areas to ensure that improvement initiatives are implemented successfully and deliver the intended outcomes.

6. Monitor and review your EPM performance Continuously monitor and review your EPM performance to track progress, measure outcomes, and identify areas for further refinement. Establish regular performance review cycles to assess the effectiveness of improvement initiatives, measure performance against established metrics, and identify any emerging issues or opportunities. By monitoring EPM performance over time, you can identify trends, evaluate the impact of improvement efforts, and make informed adjustments to your EPM strategy and implementation approach as needed.