Enterprise Performance Management Systems

Enterprise Performance Management Systems
Study Guide
I. Enterprise Performance Management

A. Enterprise Performance Management (EPM) is a process that facilitates
the linking of an organization's strategies to specific plans and actions.
The overall process can be broken down into several key sub-processes
including the following:
1. Planning, budgeting, and forecasting
2. Performance reporting
3. Profitability and cost analysis
B. An underlying goal of EPM is to help strategic goals and objectives be
communicated to employees and reflected in budgets and action plans.
EPM is not only a performance tracking system, but also a
communication tool.
C. EPM requires reviews and updates on a periodic basis. The timing and
frequency of these reviews can be adapted to serve the needs of the
organization. For example, companies with a shorter operating cycle,
such as retail, may need more frequent review than some
manufacturing companies with longer operating cycles.
D. EPM relies on key indicators of performance to inform management
decision making and analysis. EPM can help identify business and
market trends.
E. EPM software packages can improve efficiencies in planning, budgeting,
and reporting processes by relying on a centralized database and
workflow. EPM can also reduce or even eliminate the need for
spreadsheet-based business activities by acting as a central repository
for performance data.
F. EPM provides a more holistic view of an organization's performance by
linking its financial and operational data and metrics. This helps
facilitate the analysis and reporting of the organization's activities.
Summary
Enterprise performance management is the process of using company strategies to
set goals, monitor and analyze performance, and improve operations.
Communication is key to successful enterprise performance management, and
companies must determine how to best correspond with employees to ensure that
effort aligns with company strategy and objectives are being met. Accounting
information systems and enterprise resource management complement enterprise
performance management by providing easier access to higher-quality information.
SLIDES
FLASHCARDS
What is Enterprise Performance Management (EPM)?

Enterprise Performance Management (EPM) is a process that facilitates the linking of
an organization's strategies to specific plans and actions.
What are the sub-processes of EPM?

Sub-processes of EPM:
 Planning, budgeting, and forecasting

 Performance reporting
 Profitability and cost analysis
What is an underlying goal of EPM?

An underlying goal of EPM is to help strategic goals and objectives be communicated
to employees and reflected in budgets and action plans.
What are some benefits of EPM?
 EPM software packages can improve efficiencies in planning, budgeting, and
reporting processes by relying on a centralized database and workflow.
 EPM can reduce or even eliminate the need for spreadsheet-based business
activities by acting as a central repository for performance data.
 EPM provides a more holistic view of an organization's performance by linking
its financial and operational data and metrics.
Question 1
aq.ep.man.sys.001_1906
What is an Enterprise Performance Management (EPM) system?
This is a system that optimizes overall employee satisfaction scores across the enterprise.
In conjunction with a Database Management System (DBMS), it maintains consistent data
across the centralized database.
This is a process designed to help organizations maintain their Human Resources and
Personal payroll.
This process and software system are designed to help companies link their strategic goals
and objectives, communicate them to management, and align them with their budgets and
corporate plans.
You Answered Correctly!
Aligning the entire company around the strategic goals and objectives is one of the
main purposes of an EPM.
Question 2
A major common element between a corporate performance management (CPM)
program and a country's gross domestic product (GDP) is best reflected in which of
the following performance measures?
Performance
Productivity
Effectiveness
Efficiency
This Answer is Correct
A corporate performance management (CPM) program deals with productivity,
effectiveness, efficiency, cycle times, and business velocities. Productivity is a
company's output of goods and services divided by its inputs. This means productivity
can be improved by either increasing the amount of output using the same level of
inputs or reducing the number of inputs required to produce the output. Gross
domestic product (GDP) measures the total market value of all final goods and
services produced by a country in a given year. GDP represents the total output of a
country (i.e., productivity). Hence, productivity is a common element between the
CPM and GDP.
Question 3
Which of the following is the major benefit of implementing corporate performance
management (CPM) software?
Faster reporting of financial results
Continuous data collection and reporting
Automatic distribution of information to stakeholders
Reduced human intervention
This Answer is Correct
With the use of CPM software, accounting and finance staff can focus on addressing
major issues than on small issues or solving day-to-day minor problems. Because the
CPM software generates all the required reports automatically, no need to prepare the
reports manually. Hence, no need to intervene in the functioning of the CPM software.
This is a major benefit.
Question 4
The ultimate goal of enterprise performance management (EPM) is which of the
following?
Hindsight
Insight
Foresight
Visible
sight
You Answered Correctly!
Foresight means future showing compliance awareness, strategic planning, and
operations planning. This is the ultimate goal of EPM.

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Enterprise Performance Management Systems

I. Enterprise Performance Management

What is Enterprise Performance Management (EPM)?

What are the sub-processes of EPM?

 Planning, budgeting, and forecasting

What is an underlying goal of EPM?

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