What Is CPM And What Can it Do For Your Business?
CPM stands for Corporate Performance Management and it covers everything to do with managing the way a business performs. CPM Technology helps to:
- Grow your business faster,
- Increase efficiency,
- Raise profit margins, and
- Deliver value more effectively to customers.
CPM - sometimes called Business Performance Management (CPM) or Enterprise Performance Management (EPM) - is all about linking up the various departments of the organization to share data and increase transparency. That helps business leaders to monitor, analyze, review and boost the performance of the business.
In a Salesforce-native CPM, all the data from sales, resourcing, and finance lives in the same place so it can be easily kept up to date and shared.
A CPM allows the business to:
- Track and monitor KPIs
- Match KPIs against corporate objectives
- Analyze financial performance
- Consolidate data for budgeting and planning
- Track and reduce costs
- Produce forecasts
- Integrate with other financial systems
- Automate data collection
What Kind of Businesses Use CPM?
In the past, CPM was mainly used by larger organizations of 1,000 plus employees. But thanks to the affordability and ease of use of next-generation CPM solutions, dynamic and ambitious businesses from the startup stage to the enterprise stage now use them. That is a big reason why we are seeing so much growth in this market.
Businesses that see the opportunity to grow (and maybe exit), enterprise businesses that are operating globally, businesses that are merging with others, and who need to optimize business performance are most likely to adopt CPM.
Legacy CPM Systems
CPM evolved from finance and accounting tools and is sometimes referred to as Financial Planning and Analysis. Legacy models are complex, take 12 to 18 months, and require a lot of time and effort to maintain.
The lack of ease of integration means they still often involve a great deal of manual effort in moving data from one system to another. That can be slow, prone to error, and the financial data remains siloed in a separate bubble.
What Is Salesforce-native CPM And How Does It Work?
The advent of the Salesforce platform created new possibilities for CPM. Salesforce-native CPM is easy to implement, taking a few weeks rather than many months. It integrates easily with other apps.
But most importantly it puts the finance team in a new position where they can rapidly share data with the rest of the organization. Instead of being used primarily for accounting, it can be harnessed to build effective collaboration, improve operational decision making and drive growth.
The CPM democratizes the data, sharing it with everyone who needs it within the organization, enabling them to make the best decisions. It brings everyone together on the same page and provides accurate and up-to-date information which can be used to improve the planning process. Instead of a static annual plan, a rolling plan is constantly adjusted, in line with the latest information.
It also offers a new degree of automation, adjusting forecasts, targets, and so on in line with the latest information so they are always accurate.
CPM replaces the need for lots of individual tools and offers a strategic finance platform that allows you to expand your business. It can:
- Accurately forecast revenue and costs
- Create a rolling plan continually adjusted in line with the forecast
- Share data across the organization
How Does CPM Drive Business Growth?
People across the business benefit from round-the-clock access to the financial data they need. For example - sales and customer success teams can see full financial information about a client on account records. Marketing teams can combine traditional lead and conversion metrics with financial and budgeting data to gain complete visibility.
The CPM allows different teams and departments to ensure they are putting their heads together and basing decisions on the most current and financially robust information. When a sales leader shares their sales forecast with finance, finance can ask questions, see live data, and ultimately get on the same page with what the number should be.
Data can be pushed through to operations automatically - for example, when sales creates a new opportunity, it will appear in the forecast and cash projection. When the accounting department receives payment on an invoice, the sales lead can see that commission will be paid. The CPM provides benefits that fuel growth:
- Sales and services can easily see client information
- Sales and finance collaborate over the forecast
- Financial data is pushed automatically to operations
In short, CPM platforms are designed to streamline sales, operational, and financial alignment. That results in better performance, strong growth, and increased revenue and profits. Business benefits include:
- Mechanisms for capital efficiency,
- Faster company growth,
- Increase overall company value.
Want to see a Salesforce-native CPM in action? Get a personalized tour of PlaceCPM today!