Financial and Operational Performance Management
DEFINITION: Performance Management – “Using a set of tools and approaches to measure, improve, monitor and sustain the key indicators of a business”. [Gemba.com]
Financial and Operational Performance Management (FOPM) encompasses many terms and definitions including; budgeting, forecasting, reporting, analysis and dashboards. But few organisations realise the full extent to which FOPM can improve a business. Whether you come from a large corporation which is looking to standardise it’s FOPM technology or from a smaller company taking it’s first steps into the FOPM arena, Solution Minds can help.
There are 3 components to a successful FOPM project:
- The right technology
- The right requirement
- The right implementation partner
Solution Minds has been helping clients with Performance Management for 13 years, with experienced consultants to help you every step of the way. We work with a number of industry leading solutions to ensure you get the right solution for your business. Our team has worked with almost every industry vertical and with every department within that industry. So whether you work in Management, Finance, IT, HR, Sales, Marketing or Operations, let us take the risk and uncertainty out of your project.
You may be the market leader in your industry, but without the right financial tools your business is doomed. We’ve seen it before, a small company with an innovative product takes off and grows rapidly without the people or processes in place to support it.
With the pressure of competition on the rise and increased regulatory scrutiny, finance departments are really feeling the strain. In order to grow and prosper in this challenging environment businesses must have effective financial and operaional performance management.
Financial Performance Management
Financial Performance Management (FPM) is, as the name suggests, the efficient management of financial resources. Ventana Research describes FPM as a specific set of capabilities that includes "defining their company's key performance indicators, formulating strategic plans and forecasts, handling performance reporting, and increasing finance operational efficiency and execution company-wide."
There are 3 key processes that a FPM solution brings together:
- Close, consolidate, and report
- Plan, forecast, and control
- Analyze and optimize
This process involves a set of tasks that has long been burdened by slow, manual, spreadsheet-based procedures. Wheresas FPM solutions allow finance to automate the entire close process, from data collection to financial consolidation to output. Data is brought together from diverse entities and divisions into a single, statutory-based view. The result is a shorter close cycle, with greater accountability and the assured data integrity needed for compliance.
Some of the benefits of FPM:
- Organisations can adapt quickly to change
- Scenario modeling and rolling forecasts allow finance to help the management team anticipate and prepare for the future
- Finance personnel gain the insight to drive profitability and growth
- Analysis of data enables users to pick up problems quickly and drill down to the root cause
- Easily interact and interpret large data sets from multiple sources
- Brings departments together by linking information, so that managers can make better, more informed business decisions
- Combines data scalability with ease of use, responsiveness and interactivity
Smart companies seek competitive advantages wherever they can be found. And FPM is what allows finance organisations to identify those advantages and compete – and succeed – in today's business environment.