Measurable beneficial impact

CPM has been proven to have a directly beneficial impact on top-line organisational performance and can increase productivity by automating, managing and streamlining key business processes. Whilst there are many benefits from adopting a CPM solution, four key areas that can show rapid and tangible results are:

1. Transparency - business processes become absolutely transparent to the enterprise, improving visibility, collaboration and efficiency.

2. Consistent Business Processes - every element of a process is executed exactly as defined, and there can be no deviation. A common methodology can be used to monitor and assess process efficiencies amongst the user community.

3. Centralised Data - with all performance-related data in a single and centralised repository, benefits include:

  • Standard, up-to-date technology used by the entire organisation
  • No local instances of software, meaning no lengthy product updates
  • Common data and rules
  • A single place to look for all financial and non-financial data
  • Proactive reporting for exceptions and alerts
  • A responsive platform to adapt to new reporting requirements

4. Decision Making - with a combination of built-in financial intelligence and robust, flexible database technology, users can spend more time on decision-making, rather than simply collecting and processing data. CPM aims to create an integrated understanding of the business, allowing for greater insights into business performance. Value is added by combining data from separate systems to build a fuller business picture, allowing for ‘whole business’ decisions.

Building a business case - step by step

Building a business case for CPM can be broken down into five discrete steps:

1. Find the pain - before developing a business case, identify and gain consensus on the first processes to be included in the CPM project. Ideally this should be an area that currently causes the business some organisational pain. Whether or not sponsorship is in place, a clearly understood process area as starting point is required.

2. Document the process - establish a ‘current state’ process benchmark of the process. This is not intended to be a comprehensive re-engineering exercise, but rather an opportunity to better understand the current process.

3. Define the project, process and its goals - when capturing the current state of the process, develop consensus on a common vocabulary and a standard set of terms for describing the process.

4. Optimise the process - once a process is captured in its current state and associated metrics are defined, it can be leveraged to model a more optimal future state.

5. Develop a Return on Investment Model - the Return on Investment (ROI) model quantifies all benefits captured in Steps 1-4 (above), correlates them with anticipated costs and identifies savings potential. The primary goal of the ROI model is to provide a quantified assessment of anticipated added value from CPM deployment, specifically to estimate cost and net benefit expected.

This framework presents a high-level methodology and logical approach to developing a business case, also serving as a benchmark for tracking performance to plan during implementation.

Get management on board

One proven method to win management buy-in is by using short-term project wins to show proof-points and build credibility and then to leverage these wins to initiate and deliver change across larger project areas. In this way, it should be possible to determine whether the organisation can afford not to implement an integrated CPM solution.