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Top Ten ePM trends for next decade – #9

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.

        Top Ten ePM trends for Next Decade – #8                                                                           Top Ten ePM Trends for Next Decade

Please keep reading this blog series, as i post the other trends in next few days.

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      Author's profile photo Bob Zenker
      Bob Zenker
      I feel your topic covers the needs of the executive team to help drive business or make strategic change but is that where it stops?  If you have a reporting department for executives than would all reporting go under this Office of PM?  Would you see operational and departmental analysis being managed and created by this office?  Does this replace a decision support team?
      Author's profile photo Former Member
      Former Member
      Blog Post Author
      Good question. This will not replace a operational reporting group, but would strategically work with the different operational reporting groups in order to move to a single version of truth. As i mentioned in the blog, it could start from a virtual team pulled out of various groups, but eventually be a centralized team coordinating with various business lines and departments.
      Executive reporting and external reporting will all be under Office of PM.
      We could look at it as every operational reporting group with various dept., having a dotted line to Office of PM, similar to many other functions.
      Author's profile photo Bob Zenker
      Bob Zenker
      I consult with a few Universities and other companies in the public and private sector; I see this type of setup in Universities with the Office of Institutional Research providing external reporting and metrics for executives, while a Decision Support Team(s) will provide BI for the operational and analysis reporting.  It seems redundant at times but separating the departments allows them to focus on their customers more.  As an example: It's pretty rare that the Finance Dept needs to know the Student to Staff ratio which is key metric when external prospective students are looking at higher ed.

      So if this trend does happen I would recommend large organizations to look at Higher Educational structure to learn from their experience and maturity in this type of office.

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Thats great to know !!!

      Few organizations are looking at this model but your recommendation would definitely benefit. It would be great if you can post an article or blog on how reporting works in universities/public sector for the benefit of the BPX people