The advantages of CPM in a competitive, predatory environment
The XXI century business environment has been more and more competitive and predatory. The cash flows generated by globalized environment quickly turn from opportunities to threats, be it productive or speculative.
CPM – Corporate Performance Management or, more accurately, Comprehensive Performance Management is a macro concept that includes Processes, Methodologies, Metrics and Technologies that allow the organization to measure, monitor and manage its performance. The application of this management concept becomes essential for the organization to follow the changing circumstances, allowing the managers to make forecasts and analyze alternative scenarios quickly, recalculating the best course of action.
Traditionally, many tools conceived out of Brazil to perform these tasks have been out of reach for the Brazilian companies due to their purchase cost or, more often, to their total property cost, which includes its installation, use and maintenance. Fortunately, national solutions have appeared to fulfill this gap, supported for having been designed, from the beginning, taking into consideration the peculiar characteristics of the Brazilian operations and regulations in opposition to the simplicity of the North-American or European realities, given the differences in taxation and labor systems.
Companies of all sizes need to manage their performance efficiently and find the agility to adapt to changes imposed by this volatile environment.
The definition of the company size may be like a moving target, since several manufacturers define a medium company as an organization that profits less than 100 million reais/year, while others define them as companies below 500 million dollars/year. But it is important to state that companies of all sizes have virtually the same demands de performance management.