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Beyond the Walls of Finance

The Next-Generation Performance Management Framework for the Enterprise.

Reduce costs and drive greater value by leveraging an effective enterprise performance management framework powered with leading practices and innovative technologies.

Today, the combination of volatility, globalization and increasing stakeholder expectations have created a need for more advanced enterprise performance management (EPM) capabilities. To develop and maintain these needed capabilities, Accenture believes finance organizations should first address three key questions:
- What is required to successfully plan and manage enterprise performance in a complex market environment?
- What is the roadmap that will help transform the current EPM capabilities into next-generation EPM with pace and certainty?
- How can organizations accelerate the journey to next-generation EPM capabilities?

Developing these capabilities requires an effective and sustainable operating model that can serve as the foundation for the enterprise as it builds next-generation EPM capabilities.

In this point of view, we discuss a new framework for next-generation enterprise performance management—reflecting leading practices and skillfully employing innovative technologies—that can help companies optimize the return on their EPM investments.

By providing better control over the value-added aspects of finance—including planning, analysis and business decision support—this EPM framework can help finance organizations meet demands for cost reduction, timely and accurate reporting, dynamic planning, effective stakeholder communications and driving profitable growth for the enterprise.

Key Findings

A framework that can help integrate the key components of the next-generation EPM operating model includes:
- Financial performance analytics: Using data, structured analysis and systematic reasoning to make decisions that drive performance.
- Integrated EPM process: Integrating “define and plan,” “execute and operate” and “analyze and monitor” capabilities, grounded in a value-creation mindset, external perspective and enterprise-wide focus to ensure a seamless performance management cycle across the enterprise.
- High-performance catalysts: Integrating and executing performance management agendas across the organization through catalysts such as governance, talent, incentives, technology, data and collaboration.

We believe that companies can increase their EPM effectiveness and efficiency while simultaneously dealing with these cost pressures by adopting a service-based operating model—one that merges the traditional EPM operating model with principles from organizations using an integrated business services model.

We have identified three types of service-based EPM operating models:
- Insourced EPM services: Delivered by EPM centers of excellence (CoE) which are run by the company’s staff. The capabilities, talent and skills are those of the company’s employees.
- Outsourced EPM services: Delivered by EPM CoEs which are run by external organizations, providing specific capabilities, talent and skills to the company based on a contractual relationship.
- Managed EPM services: A hybrid alternative, delivered by external resources—not necessarily residing within the CoE—working closely as partners to the business and helping operate an EPM service from an end-to-end view.


To achieve agility in enterprise performance management, we also suggest companies adopt scenario-based EPM—where scenarios are incorporated into processes for managing the business on an ongoing basis.

The following steps can help integrate scenario capabilities into EPM processes:
- Identify the key factors that can impact the organization and will help define plausible scenarios.
- Define relevant scenarios (typically two to three) that describe alternative future operating environments.
- Agree on a baseline scenario that will be used to define strategy, set targets and develop operational plans and budgets.
- Develop strategic plans, targets, action plans and resource allocation plans using the baseline scenario.
- Develop alternative views of targets and plans, focusing on the major impacts and changes under each scenario.
- Identify relevant triggers and corresponding tolerance ranges for each scenario that should be monitored on an ongoing basis in order to provide an advance warning of material changes in the operating environment.
- Adjust tactics for new scenarios by using the previously developed corrective actions to close gaps and generate a new forecast reflecting the changes in both the scenario and tactics.

Read more: download the PDF below (24 pages)

Les médias du groupe Finyear

Jeudi 13 Novembre 2014

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