Enterprise Performance Management (EPM) is a management field of
Business Performance Management which considers the visibility of operations in a closed-loop model across all facets of the enterprise. Specific to financial activities in the office of the
Chief Financial Officer, EPM also supports Financial Planning & Analysis (FP&A). There are several
domains in the EPM field which are being driven by corporate initiatives, academic research, and commercial approaches. These include:
- Strategy Formulation
- Business Planning and Forecasting
- Financial Management
- Supply Chain Effectiveness
Based on the
mission and
vision of an organization, different strategic needs may drive how EPM domains are leveraged and promoted within an organization. For example a professional services firm based in Canada may view the need to have effective and transparent supply chain operations very differently from a clothing manufacturer with operations throughout the world. What is common in the EPM approach is the
closed-loop EPM process model advocated by Kaplan and Norton and their management approaches to strategy formulation including
balanced scorecard and
strategy map techniques.