In a recent research paper the Nasdaq quoted strategic consultancy and benchmarking organisation, The Hackett Group, announced the results of their 2018 Enterprise Performance Management (EPM) Study.
As defined by Hacketts, EPM may be summarised as
- ”Execution of business strategy through improved management decision-making,
- the alignment of behaviours of stakeholders with the organization’s strategic objectives,
- dynamic measurement of goals and performance, and
- leveraging of analytical and modeling capabilities.”
High-calibre EPM empowers executives to make data-driven decisions regarding resource allocation, define strategic objectives, and set annual targets with strategies for achieving them.
The study reported that top performers produce superior gross margins leading to higher returns on equity vs. industry average.
The four critical factors to success employed by top performing ERP organisations were:
- They integrate the planning process across the enterprise,
- They have superior forecasting processes,
- They provide more analytics-driven insight, and
- They collaborate effectively with business partners.
Hacketts found that EPM top performers complete their forecast 3.5X faster and are also more accurate than peers. They use a small team and look at high-level information. And they forecast on a rolling basis deploying driver-based modelling, to produce future insight to guide executive decisions.
Forecast 5 allows you to use high-level information to produce rolling forecasts delivering decision ready, board level information.
If you would like to improve your forecasting processes, Geof Nightingale, the Developer of Forecast 5 will be presenting twice daily (at 10am and 2pm) in
- Leeds on 10 June,
- Manchester on 11 June,
- Liverpool on 12 June and
- Birmingham on 13 June
Please click here to book for one of these free sessions to learn how Forecast 5 could help drive up Enterprise Value in your organisation.
This article first appeared in Chartered One – the official website of the Liverpool Society of Chartered Accountants.