EPM Market Maturity Enables Effective Modern Management Systems
In 2007, The Performance Management Revolution, by Howard Dresner, highlighted several issues with modern management systems—including over-reliance on gut feel and past experience to define vision and strategy and weak connective processes between management activities that made linking strategy to execution difficult. Enterprise Performance Management (EPM) software was immature, which forced organizations to rely on stand-alone performance management methodologies (such as the balanced scorecard) to plug the gap between strategy and execution.
The picture in 2020 was very different. The Dresner Advisory Services 2020 Enterprise Performance Management Market Study showed significant evidence of EPM market maturity, with most vendors offering strategy management capabilities that overcome the aforementioned process issues, and provide enterprise-class planning, modeling, and analytics.
However, despite these advances, EPM software on its own cannot create a modern management system. Getting some management teams to fully utilize EPM strategy management capabilities remains a serious challenge for many organizations.
1. EPM software is sufficiently mature to support and enable activities and connective processes required by modern management systems.
2. Because of this maturity level, much less need exists to implement stand-alone performance management methodologies outside an EPM system so that an organization can link strategy management with other management activities such as budgeting, planning, and reporting.
3. EPM software on its own will not provide an organization with an integrated modern management system.
4. Only the combination of EPM software, process change, and effective implementation will provide an organization with an integrated modern management system.