AT A GLANCE

What is enterprise performance management?

Enterprise performance management (EPM) is a set of processes, tools, and strategies organizations use to plan and manage overall performance. The purpose of EPM is to align day-to-day operations with high-level strategies and long-term objectives. It achieves this by providing a framework for setting goals, tracking progress, and adjusting in real-time when needed.

• Strategic planning: Establishing long-term goals and linking them to specific initiatives to keep teams aligned with the organization’s mission
• Budgeting and forecasting: Creating detailed financial plans and revising them to reflect changes in the market or business environment
• Performance measurement: Monitoring KPIs to assess whether goals are being met and identify areas for improvement
• Financial consolidation and reporting: Streamlining data management and generating reports to provide a clear picture of financial performance
• Scenario modeling: Preparing for best-case, worst-case, and most- likely outcomes by analyzing potential scenarios and their impact
• Integration across systems: Connecting EPM tools with ERP, CRM, and other systems so that data flows seamlessly across the organization

It’s important when thinking about enterprise performance management to note its differences from another closely related and key business management process: enterprise resource planning (ERP), which handles day-to-day tasks such as inventory, supply chains, and payroll. Unlike ERP, which focuses on operational priorities, EPM is centered on high-level strategy and planning.

A simple way to differentiate is to think of ERP as covering the “how” of running your business each day, while EPM continually addresses the “why” and long-term “what’s next.”

The advantages of EPM software.

The demands of a tech-driven business world have pushed performance management to be smarter, faster, and more agile. EPM software is designed to help organizations meet this challenge, streamlining and automating key processes without sacrificing quality or output.

According to the most recent Workday CIO Indicator Study, IT leaders agree that these types of tools are essential, stating that investment in cloud and automation tools will do the most to enhance IT collaboration with other key teams, such as finance. They also note technology solutions as key enablers for uncovering forward-facing insights, filling data gaps, and driving digital transformation.

Let’s look at some of the important features and benefits that make EPM software so valuable.

EPM software features.

With EPM software, teams can access and analyze real-time data, plan using sophisticated scenario analyses, easily collaborate with teams in other departments, and make timely decisions with confidence, knowing that they’re informed by accurate, up-to-date information. Here are four features that show the potential impact of EPM solutions for your organization.

Unified dashboards.

Unified dashboards bring all performance data into one place, providing a clear view of metrics such as revenue, costs, and operational performance. Rather than juggling multiple reports or systems, users can track progress toward key goals in one place and in real time.

Example: A CFO can review financial and operational performance metrics alongside sales forecasts, helping them make informed strategy decisions without switching between tools.

Predictive analytics.

Predictive analytics uses AI and machine learning to analyze historical data and predict outcomes. This feature is particularly useful for forecasting and identifying risks before they become actual problems.

Example: EPM software can analyze past sales trends, adjust for external factors such as seasonality, and generate more reliable revenue projections. This reduces uncertainty and helps organizations allocate resources more effectively.

Scenario modeling.

Scenario modeling allows organizations to explore “what-if” scenarios, such as changes in market conditions, shifts in customer demand, or unexpected disruptions. By simulating different scenarios, businesses can test strategies before committing to them.

Example: A company could model the financial impact of a new product launch under different pricing structures, helping it choose the most profitable approach.

Cloud-based accessibility.

Modern EPM software is cloud-based, which eliminates the need for heavy IT infrastructure and makes tools accessible to remote or distributed teams. Data is updated in real time, allowing teams in different locations to work from the same set of information.

Example: A multinational company with offices in North America, Europe, and Asia can use cloud-based EPM software to collaborate on its annual budgeting process. The finance team in New York can input projections, and their counterparts in London and Tokyo can see those updates in real time.

Benefits of EPM software.

EPM solutions can provide a multitude of business advantages across different functional areas. Here are five potential benefits to implementing EPM software.

Sharper decision-making.

EPM software helps leaders move beyond guesswork by providing clear, accurate insights when they’re needed most. Instead of sifting through outdated reports or disconnected data, decision-makers can see the full picture and act on reliable information. This means faster, better-informed choices that drive stronger results.

Better collaboration across teams.

When everyone has access to the same up-to-date information, teams can collaborate more effectively. Finance, operations, marketing, sales, human resources, (and others) no longer need to reconcile conflicting reports or work in silos. EPM software creates a shared understanding of goals and progress, so teams can focus on solving problems and achieving results instead of untangling miscommunication.

Faster reactions to change.

Businesses need to pivot quickly in response to market shifts, disruptions, or new opportunities. EPM software gives organizations the flexibility to adapt plans on the fly, whether it’s reallocating resources, adjusting budgets, or updating forecasts. Being able to respond quickly helps businesses avoid costly delays and stay competitive.

Greater financial accuracy.

Manual budgeting or forecasting processes are prone to errors, especially when data is spread across multiple systems. EPM software simplifies and automates these processes, ensuring that the numbers are accurate and up-to-date. This precision builds trust in financial data, making it easier to plan confidently and allocate resources effectively.

Clarity across the organization.

EPM software provides a central source of truth, making it easier to understand how the business is performing and where it’s heading. With clear metrics and a unified view of progress, leaders and teams can align on what matters most and ensure that time and energy are spent on the right priorities.

Considerations for EPM implementation.

Implementing EPM software successfully requires a clear strategy and careful planning. CIOs and business leaders need to focus on understanding their organization’s needs, choosing a solution that fits, and preparing their teams for change. Done right, EPM can deliver real and lasting value, helping your business to make smarter decisions and stay aligned with its goals.

Here’s what to prioritize before you adopt an EPM solution.

1. Understand your organization’s needs.

Before choosing a solution, take time to assess your organization’s unique challenges and goals. A clear understanding of what your organization requires will help you select the right features and tailor the implementation process accordingly.

• Define objectives: Improve forecasting accuracy, streamline financial reporting, and enhance collaboration across departments.

• Evaluate current gaps: Identify inefficiencies in your existing EPM processes, such as too much manual data entry or siloed reporting systems.

• Engage stakeholders: Gather input from finance, operations, and other departments to be certain the EPM system addresses their needs.

2. Choose the right EPM solution.

Not all EPM software is created equal, and selecting the wrong one can lead to compatibility issues or underwhelming results. Work closely with vendors to align their offerings with your long-term vision and infrastructure.

• Scalability: Choose a solution that can grow with your organization and adapt to changing business needs.

• Integration: Ensure the EPM software integrates seamlessly with existing tools such as ERP, CRM, and HR systems to avoid data silos.

• Cloud vs. on-premise: Cloud-based solutions are typically easier to deploy and maintain, offering real-time access and automatic updates, but some industries may still prefer on-premise systems for compliance reasons.

3. Invest in change management.

EPM implementation often involves a shift in how teams operate and make decisions. Without a clear change management strategy, you risk low adoption rates or resistance from employees. A strong change management plan ensures your team is ready to embrace the new system.

• Communicate the vision: Help teams understand why the EPM system is being introduced and how it will benefit their work.

• Provide training: Equip employees with the skills they need to use the system effectively. Offer ongoing training to account for feature updates or team turnover.

• Involve leadership: Encourage senior leaders to champion the system, demonstrating its importance through their own use.

4. Take a phased approach.

Attempting to roll out EPM software across your entire organization in one go can lead to confusion and overwhelm your workforce. A phased implementation minimizes risks and allows your organization to adapt gradually.

• Start small: Focus on a specific department or function, such as financial planning, to test the system and refine processes before expanding.

• Iterate and optimize: Use feedback from the initial rollout to address pain points and improve the system for broader adoption.

5. Prioritize data accuracy and security.

An EPM system is only as good as the data it processes. Ensuring data integrity and security is critical to the system’s success.

• Clean your data: Before migrating to the new system, audit and standardize your existing data to avoid errors or inconsistencies.
• Establish governance: Create clear policies for how data is collected, stored, and used to maintain accuracy and accountability.
• Secure sensitive information: Work with IT to implement robust security measures, especially if your organization handles confidential financial or customer data.

6. Continuously monitor and improve.

EPM implementation isn’t a one-and-done process. To maximize its value, you’ll need to regularly evaluate its effectiveness and make adjustments as needed.

• Track KPIs: Measure system success against the goals you set during the planning phase.
• Solicit feedback: Regularly ask users for input on what’s working well and where improvements are needed.
• Stay updated: Keep an eye on new features, updates, or integrations from your EPM provider that could further enhance functionality.

Starting your EPM journey.

Enterprise performance management is the bridge between your organization’s day-to-day operations and long-term goals. Implementing EPM effectively to achieve this requires thoughtful planning, the right technology, and a commitment to change.

By focusing on careful implementation, collaboration, and continuously optimizing your approach, you can ensure that EPM delivers meaningful and lasting value to your organization.

Discover how Workday Adaptive Planning can drive your organization’s success, today.