This has to do with developing a strategy. And it starts with a thorough analysis of the company’s situation and its environment. Once this evaluation has been carried out, a plan is established to successfully achieve the proposed objectives
To achieve these goals, it is critical that the company understands the importance of performance management. Enterprise Performance Management (EPM), is what allows companies to be more efficient and stay ahead of their direct competition.
EPM has to do with a set of management processes designed to help improve strategic decisions in business. This performance management is usually carried out with the support of information technology, in other words with the use of specialized software.
Areas of the company that benefit from performance management
One way to understand the importance of performance management in organizations is to know which are the main areas of the companies that benefit from the use of EPM.
Performance management allows you to automate the processes of budgeting and financial planning. Thus, the organization can have accurate information about how its financial resources are invested and whether they are spent correctly.
With this process it is also possible to make sure that the projects and programs are aligned with the objectives. This way they can grow within the sector in which they operate.
Human Resources Management
Performance management goes hand in hand with Human Resources management, in a way that it helps to increase the productivity of the company by giving the corresponding value to the employees.
Steps to implement performance management
Performance management is a process by which managers, department heads, Human Resources, employees, and collaborators of an organization develop their activity as a team to establish objectives and improve overall organizational performance of the company. For that the following steps should be followed.
- Define scope and objectives, that should be SMART (specific, measurable, attainable, realistic, and timely).
- Plan activities to reach and execute objectives.
- Establish KPI’s to evaluate and monitor the results that are being obtained.
- Check that the results obtained are those expected
Knowing the importance of performance management in companies is essential to implement a plan as soon as possible. An efficient tool to do so is Oracle EPM – Enterprise Performance Planning, a solution designed to connect all the financial processes of the company guaranteeing maximum planning and process automation.
Therefore, if you want to optimize your business lines, this software is ideal. At Fusionworks, we help you to implement it in your company and start getting the most out of it.