At the higher levels of business, enterprise performance management (EPM) systems are used to better analyze the general health and performance of the organization – from planning, budgeting, strategy execution, and more.
The reason for an ‘enterprise’ performance management system is that large organizations tend to have different needs and challenges than smaller ones.
With the sheer size of enterprises, analyzing the health of the company is a challenge in itself.
Yet EPMs also come with challenges, because complex problems tend to be solved by complex solutions. And complex solutions are… well, you know where this is going.
So let’s take a look at some of the common issues of enterprise performance management.
Collaboration between departments
We know that within many huge organizations there can be a disjointed approach when it comes to communication. While some teams may be highly diligent and transparent when it comes to tracking and submitting data, other departments may be notorious slackers.
Tracking down essential data from departments that are not the most proactive nor collaborative is going to require a huge amount of effort. The human element is essential for a high functioning EPM – which can be applied to work and technology in general.
Sheer size of data
In large organizations, massive amounts of data are created and stored every day. Accurately gathering and updating all metrics in a system can be a logistical nightmare, taking up valuable time and energy that your accounting department likely doesn’t have to spare.
Keeping everything up to date
Data can only be meaningful for organizations if it’s constantly being updated, making it relevant. Think about it: your accounting team receives and inputs the sales report for yesterday. What happens when you receive four new sales today?
How is communication between the departments when it comes to keeping performance management documents constantly up to date? If documents are not instantly updated as soon as possible, then those documents could be out of date – even within minutes and seconds.
Due to the sheer volume of data, the collection of data across departments, and the updating of data sets, it’s almost impossible to be certain that the data under analysis is 100% accurate.
As such, the conclusions that we reach from these datasets are, correspondingly, likely to not be accurate either. This would result in the crucial decision-making process being based on outdated information.
The value of enterprise performance management is too high to allow workers to access them and use them incorrectly.
Despite these challenges that are an inevitable part of any enterprise performance management system, there are effective ways to overcome them.
Tracking key metrics manually tends to lead to challenges for the company. And so the best solution to accurately tackle these issues is to implement EPM solutions, which are designed to streamline the processes involved in the performance management of enterprises.
These EPM solutions include auto-populate datasets, which eliminates the need to input data manually; ensuring that datasets reflect the most accurate numbers; eliminating the need for time-consuming and anger-inducing spreadsheets; instant creation of detailed reports for greater insight into the performance of the enterprise.
With the correct EPM platform suited to your specific needs, organizations can make much better decisions based on more relevant data and metrics.