A comparative index across 8 geographies Measuring how well an organisation is performing is a basic need, requiring full visibility of various processes and workflows including the needs and inputs of partners and other stakeholders, as well as an effective means of monitoring and measuring how these variables work to produce an end result. The research behind this report shows that most organisations still have much to do, with disconnects between key steps and a lack of inclusion of essential stakeholders across processes.
- The overall EPM index for the geographies covered is 5.13 out of a maximum score of 10 There is still much to do in most organisations to ensure that they look at empirical data while creating the capability to extrapolate forwards with tools such as scenario and "what if" analysis, and in involving internal and external stakeholders in a given organisation's core management processes
- A high number of respondents did not see any close alignment or dependencies in the sub-indices making up the EPM index Without a core set of plans that build upon each other, there will be little chance of creating a coherent and effective overall strategy. It is strongly recommended that organisations ensure that plans are fully integrated and that process flows are fully understood before enacting an EPM strategy
- Geographies with "soft-touch" governance expect to see the most change in regulatory loads over the coming 24 months - but organisations based in them also score well in the EPM index The research points towards geographies with the lowest regulatory loads currently being able to meet their reporting and process needs far more than those in more heavily regulated geographies. However, these same geographies do expect to see regulation change far more than others - and this could well mean that the same research run in six months' time could see certain geographies move backwards in their index scores
- Mid-sized organisations score less well than very large organisations Although the difference is relatively low (generally less than 0.2 points difference), mid-sized organisation can learn from this report and from how larger organisations codify and automate key processes, and how different stakeholder groups are embraced and included to create more effective value chains
- Few organisations are looking to new geographies or new channels for growth This is probably down to the current financial climate, where higher-risk strategies are not being embraced. Most organisations see that concentrating on attracting new customers in existing markets, offering new products or services to existing customers or reducing customer churn can bring quicker returns that attempting to break into new markets - which may be suffering equally as badly as the organisation's established markets
- Business intelligence (BI) is not seen as a critical tool in the EPM toolbox Many respondents did not see BI as a critical business tool. A quarter of respondents were not sure what their views on BI were, with a further 15% seeing BI as an expensive tool for visualising data. Only 12% saw BI as being an important means of monitoring, measuring and reporting on the overall health of a business. However, those who see BI as a critical tool scored better in the overall index than those who did not, or just see it as a means of looking to past performance.
Conclusions Enterprise performance management is still in its early days, with the majority of organisations having some non-integrated pieces of functionality in place. However, if organisations could pull together the various strands of the sub-processes together, an effective and flexible strategic platform could be built from which organisations would be well positioned for survival through the current market conditions and be well positioned for rapid growth when the conditions improve.
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