Corporate Performance Management is a field of business performance management which considers the visibility of operations in a closed-loop model across all facets of the organisation. Specific to financial activities in the office of the CFO, CPM also supports financial planning and analysis (FP&A).
There are several domains in the CPM field which are driven by corporate initiatives, academic research, and commercial approaches. These include:
- Strategy formulation
- Business planning and forecasting
- Financial management
- Supply chain effectiveness
- Statutory Consolidation
Based on the mission and vision of an organization, different strategic needs may drive how CPM domains are leveraged and promoted within an organization. For example, a professional services firm based in Italy may view the need to have effective and transparent supply chain operations very differently from a clothing manufacturer with operations throughout the world. What is common in the CPM approach is the closed-loop CPM process model advocated by Kaplan and Norton and their management approaches to strategy formulation, including balanced and strategy map techniques.
The five domains, or disciplines, referred to above exist to define and cover the six stages of the closed-loop CPM process model. The six stages of the closed-loop CPM process model are: strategy development, strategy translation, organization alignment, operations planning, learning and monitoring, and testing and adaptation.