“The Finance Center of Excellence and Performance Management”: a post by IBM's Charlotte Locke
Tim O'Bryan 270001NMX7 TIM_OBRYAN@yahoo.com | | Tags:  financialperformancemanag... charlottelocke timobryan fpm | 0 Comments | 918 Visits
As organizations seek the best ways to respond to a volatile marketplace that can change on a dime, the functions that were once the purview of finance organizations, such as enterprise planning, budgeting, forecasting and analysis, have spread to other parts of business, such as business units and organizations. This is because financial performance management – led by Finance -- has become increasingly strategic in organizations, regardless of their size or market sector.
While initial deployments might have once been focused on Finance, companies are tending to deploy performance management solutions more broadly in organizations. Therefore, performance management is rapidly migrating from finance to executives and everyday business users, who are taking on more and more responsibility for financials, analytics, planning/budgeting, risk analytics, and reporting on these processes, such as profitability analysis. Additionally, many companies that have successfully implemented these financial performance management (FPM) solutions, such as a planning solution or a financial controls, would now like to integrate these solutions with other FPM software and technology for a more complete solution.
To maximize the value obtained from either putting financial analytics in the hands of this new, wider audience with a common planning platform or from greater FPM solution integration, finance departments are challenged with managing and supporting these new tools and capabilities for numerous divisions, regions and functions and making sure that they work together. (See related article in this blog: “Financial Performance Management & The Agile Enterprise: Two Sides of the Same Coin,” by Tim O'Bryan) Processes that were already in place to manage spreadsheet sharing and review and manual processes are no longer sufficient. Developing an enterprise-wide initiative with standard technologies and processes that allows for extensions of current implementations is critical, and a Finance Center of Excellence (FCOE) can provide the reusable knowledge, disciplines and best practices to make these financial performance management initiatives possible.
Look for an upcoming posts on this topic, which will feature:
-- Charlotte Locke