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The definition of Performance Management metrics is a highly collaborative process. The discussions and the results obtained during the identification and definition of relationships between different KPIs is an essential goal, regardless of the subsequent implementation phases. The resulting database becomes the center and unique reference of the necessary functional extensions that lead CPM to interact with the various business processes through a common language.
The key is in the widest possible sharing of KPIs. If metrics are not aligned to the objectives, the objectives are not aligned to strategies and strategies cannot be communicated to those responsible for their achievement, it is almost certain that the resulting targets will be ignored.
Companies that do not develop a CPM project within a coherent map of the main components of the business, of their mutual influences and cause and effect relationship, cannot expect a different result from the mere display of a list of KPIs. CPM projects must generate value and obtain a "bottom up" approval by the process owners involved; the approach must necessarily be modular, but provide a roadmap of action to ensure both the achievement of intermediate results that the implementation of integrated design.
In order to lead CPM initiatives to success, a leadership role that can interact with top management in defining objectives, priorities and resources must be identified. A new role is then defined within the organization: he will collect responsibility of controlling, performance management and ICT, he will be independent and proactive in planning delivery. We can formally define this role as the Corporate Performance Officer (CPO).
The Business Intelligence Competence Center (BICC) is managed by the CPO across organizational and institutional guidelines and it can be composed by "variable geometry" in the use of funds derived from the Business, Finance and ICT domains base on the needs and the different project phases; this approach ensures the continuous project check and flexible support during the development phases.
Finally, "SEEK AND ACT" is the management perspective that requires the structuring of CPM systems. The importance of performance, its drivers search and the provision of coherent action plans to pursue them does not require further explanation to make the significance of corporate performance management initiatives clear.
