BPM is a set of integrated, closed-loop management and analytic processes, supported by technology that addresses financial as well as operational activities. BPM is an enabler for businesses in defining strategic goals, and then measuring and managing performance against those goals. Core BPM processes include financial and operational planning, consolidation and reporting, modeling, analysis, and monitoring of key performance indicators linked to organizational strategy.
An old accounting adage states that "you can't manage what you can't measure." BPM encompasses the processes and tools that allow you to manage and measure your business.
Without BPM, you are at risk - visibility into historical financial results is no longer enough. Internal demands for strategic planning as well as external factors require forward-looking analysis. Without a good BPM strategy, you may be operating blindly in today's fast-paced and unforgiving world.
BPM is critical if you are going to respond to the following types of challenges:
- Market pressures
- Need for repeatable and predictable processes
- Consolidation of data
- Need for non-financial metrics
- Aligning workforce with corporate goals
Specifically, strong BPM processes are critical which requires certification of financial reports and mandates that companies publish a detailed description and assessment of their internal control structure and financial reporting procedures.