Vareto Finance Glossary

Corporate Performance Management (CPM)


Corporate Performance Management (CPM) is a business process that adopts an integrated approach toward business planning and forecasting across areas like finance, marketing, HR, and operations. The mechanism interlinks the strategies of an organization with its plans and ensures appropriate execution. This helps organizations to achieve smoother and faster success.


CPM commonly includes the following business processes:a. Defining business models and setting business goals.b. Planning, forecasting, and budgeting.c. Consolidating financial results and ensuring timely accounting.d. Reporting financial results to stakeholders.e. Analyzing business performance.

Why it matters

For any business, strategy execution is one of the major focus areas that senior executives constantly monitor. CPM helps ensure that a company's strategies are executed as planned. By integrating organizational goals with various project streams, a company can be better aligned with its strategic priorities and focus on key business drivers to achieve its goals.