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Importance of performance management system

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					Importance of performance management system




Corporate performance management improves the capability of a business. It provides
three important values to the business. They are information delivery, performance
oversight, and performance effectiveness. These values help to understand, manage and
improve the business. Corporate performance management system coordinates the
performance of managers, staff, customers and suppliers within an integrated
environment.

The basic elements of corporate performance management are providing information and
strategy planning. CPM can provide the core decision makers direct access to required
information. With a clear understanding of the facts of the business, informed decisions
can be taken for boosting the performance. Performance oversight signifies an overall
view of the business details. CPM provides the required performance oversight to the
management which helps in optimizing the business. Performance effectiveness helps
business executives as well as decision makers to set clear goals and work towards
achieving them. CPM assures the necessary performance effectiveness.

Corporate performance management system combines the management process in a
single, interactive and collaborative work space. Scorecards and reports can improve
finance, operations and workforce. Web based collaboration and distribution capabilities
improve the communication process. Corporate performance management system can
reduce planning, forecasting and reporting time through data capture and analysis. It
integrates business strategies, business measures and business actions.

Corporate performance management provides accurate financial information about the
day-to-day activities of people, equipment and process. It can develop comprehensive
plans and customized reports. It helps the organization to maintain profitable inbound and
outbound relationship with the customers. CPM can reduce problems associated with
reporting financial and operational data.

Corporate performance management finds use in the pharmaceutical and health science
sectors. It can be used for clinical performance management and product demand
forecasting. In the financial sector, CPM is applied in mortgage banking, incurrence
claims and risk reporting. Corporate performance management is important in
manufacturing areas. It is important in supply chain planning and manufacturing
performance management. CPM application is important in aerospace and defense
management. Other important CPM areas are retail performance management, vendor
management, police performance management and the public sector.


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