The expansion of CFO and accounting role with Enterprise and Corporate performance management
Rolda
The video talks about the expansion of CFO and accounting role with Enterprise and Corporate performance management. Despite the confusion of each term, Gary Cokins recommends that the CFO and management accounting are in a great spot to bring the methods such as six sigma, operation methods etc. of both Enterprise and Corporate together for better synchronization.
The Army uses Lean Six Sigma (LSS) because it’s a vital part of today’s business environment. It attacks inefficiencies – waste caused by defects and eliminates non value-added flow of information or materials, data storage, stacks of inventory, overproduction and extra processing. With Lean Six Sigma proven techniques, Army managers have the skills to find, fix and finalize efficiencies to save time and money and improve our nation’s ready forces at best value. LSS is important to the Army because the methodology has a proven track record. It has produced a return on investment of 700 to 1 since its deployment. LSS is important to the Army because it is an analytically-based methodology that has and will continue to help us be responsible stewards of our nation’s resources
Corporate performance management (CPM) is the area of business intelligence (BI) involved with monitoring and managing an organization’s performance, according to key performance indicators (KPIs) such as revenue, return on investment (ROI), overhead, and operational costs. CPM is also known as business performance management (BPM) or enterprise performance management (EPM).
Enterprise performance management is a process designed to help organizations link their strategies to plans and execution. EPM software is designed to support the EPM processes, including budgeting, planning, forecasting, financial consolidation, reporting, analysis, and modeling.
Resources:
Lean Six Sigma
IMCOM Lean Six Sigma
AMEDD Lean Six Sigma
Army Logistician (Lean Six Sigma at Anniston Army Depot)
Related articles: PEO C3T employee earns Lean Six Sigma honor
http://searchdatamanagement.techtarget.com/definition/corporate-performance-management
http://blog.hostanalytics.com/what-is-enterprise-performance-management-epm
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Hassan
Predictive accounting projects future financial performance using a statistical understanding of an organization’s processes (Brimson, 2013). Predictive accounting seeks to understand the future and is based on the observation that much of an organization’s work is repeatable. Predictive accounting uses process maps to understand the sequence of activities. An organization can begin the process of mapping once it gains more insight as to how, when and why events occurred. The mapping process identifies the upcoming events that will follow and these future events are then translated into predictive financial statements using resource consumption activity standards and statistical probabilities (Brimson, 2013). An example of predictive accounting is if an accounting firm warned one of its clients of working capital being tied up in debtors and inventory.
Enterprise and corporate performance measures are the answers for executives who need to expand their focus beyond cost control and toward sustained economic value creation for shareholders and other more long-term strategic directives (Corkins, 2016). EPM/CPM provides managers and employee teams at all levels with the capability to directly align their actions and priorities toward the executive team’s defined strategies (Corkins, 2016). The use of these performance measures are not limited to one organization, but can also be applied to the companies which supply that organization. Apply performance measure help business keep cost down thus avoiding transferring these costs to the end user through higher prices.
Brimson, James. 2013. Predictive Accounting Article. Retrieved from http://www.valuecreationgroup.com/predictive_accounting_article.htm
Corkins, Gary. 2016. Analytics-based Enterprise and Corporate Performance Management (EPM/CPM). Retrieved from: https://opexsociety.org/body-of-knowledge/enterprise-corporate-performance-management/
Answer preview to the expansion of CFO and accounting role with Enterprise and Corporate performance management
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