With enormous traction in the ePM space happening over last few years, the next decade (2010-2020) is definitely going to be key decade for ePM. As an active practioner of ePM in the last decade, the focus of my blog series would not be just on technology but the business process aspects of ePM. What are those top 10 trends. Here it goes…
Trend # 9 – Office of ePM
While finance or in some cases IT was driving enterprise performance management initiatives, in the next years, many large organizations would start focusing on setting up an independent Office of Performance Management, reporting directly into CEO and working hand in hand with various LoB.
What is the likely reason for this trend?
ePM is an organization wide initiative and there needs to be clear ownership independent of specific functions such as finance or sales. Especially in bigger corporations where the complexity of business is wide and there is a need to constantly relooking at business models and therefore changes to how performance management is perceived, it is important that there is a group /office that is responsible for taking care of the organization evolution reporting needs.
With a clear office of PM available, the redefinition of process and technologies required to address performance management needs are addressed extensively.
Have they not existed before?
Yes they have, but have been part of Finance or IT or as Internal Audit or sometimes even in HR functions. There have been also groups that is part of Office of CEO. But the purpose of Office of PM is take it further down the organization and not just keep it at very top level. This would ensure great drive of performance culture.
What would be the charter of Office of ePM function?
· Drive a best practice approach to reporting, analysis, business insights, risks, performance driven thinking across the organization
· Enable quick reporting and insights to top management, who can better present to external stakeholders
· Getting beyond boundaries of a specific function, and view it from the organizational goals perspective – not just focusing the financial, or human resources drivers – but moving towards a goal of sustainable drivers across organization
· Enable technology ePM projects that would bring value to organization
· Taking organization beyond internal walls – enabling competitive insights /benchmarking for industry best results with enabling industry data
· Ensuring all external compliance and reporting are taken care smoothly
· Ensure accurate metrics to HR department to ensure performance driven culture – usually the data for this may not come from any transaction system, but probably through customer surveys, internal surveys, sustainability surveys
· Ultimately play a pivotal role in ensuring Strategy to Execution is fulfilled
Who are the people who will be in this function?
The office of PM would typically led by a very senior person for it to receive the traction. But the team should consist of business experts who know the organizations business very well, analysts who are good at analyzing data (even statisticians/people with mathematical background) would also be important to work with the business experts and offcourse it should have technical experts who can drive ePM initiatives to adapt to latest and greatest business intelligence and application technologies that would help getting the right efficiency. Technical experts work very closely with both the business and analyst.
Many organizations have started on this path, but focused on more of EPM Center of Excellence with respective to technologies, based on few initiatives. Next level would be to make it an independant business function . Setting up of such emerging function is most likely over the next decade, it would probably start as a virtual group but bound to become an independent function.
Please keep reading this blog series, as i post the other trends in next few days.