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to managers who can reject or approve. Standard facilities include the reporting of approval status and the integration of email capabilities to warn users when submissions have been submitted, approved, or rejected.
□ Lock plans once approved to prevent unauthorized changes.
□ Automatic alerting of plans or budgets that exceed set targets.
□ Reporting and charting capabilities that highlight inconsistencies in
submitted plans. Inconsistencies could include, for example, phasing that is different from previous years, an abnormal jump between the end of the last actual period and the start of the new budget period, and a budget that is substantially different from a statistically generated budget.
□ Review of budget and management comments during the process.
□ Generate comparative information including income, balance sheet,
and cash flow statements.
The Strategy Gap
Exhibit 5.11 Communication checklist.
Communication Functionality Checklist
□ Deliver online access to detailed tactical plans incorporating budget goals and supporting text.
Exhibit 5.12 Monitor checklist.
Monitor Functionality Checklist
□ Load data from transaction and other systems, both internal and external,
which feed the CPM system.
□ Employ email to automatically alert managers to actual results that
differ from budget thresholds.
□ Allow drill back to the detailed transactions from a summary report item.
□ End-user analysis on any exception including the ability to show that
exception in the context of last year, last month, as a trend, and with peer groups.
Exhibit 5.13 Forecast checklist.
Forecast Functionality Checklist
□ Time series analysis of key accounts, using the resulting formulae to predict
future performance. Typical capabilities include ignoring exceptional one-off results in the data to be trended, and some form of control over any significant growth or decline. The analysis should show the goodness of fit and, if required, allow the rejection of forecasts where there is a low statistical probability of achieving the forecast.
□ Automatic alerting where predicted results differ from the budget thresholds
set in future periods.
□ Modeling and evaluation of changes to individual tactics that may result in a
revised budget being set for certain tactics or budget centers.
Corporate Performance Management Systems
Exhibit 5.14 Report checklist.
Report Functionality Checklist
□ Match, eliminate, and audit inter-company accounts.
□ Adjust results with audit trails for the financial accounting treatment of minority
and other related adjustments.
□ Audit interrogation of results in sufficient detail to pass external audit scrutiny.
□ Automatic generation and distribution of results to individual users via printer,
website, and e-mail.
the ability to meet or exceed targets and must be able to comment on results and issues that affect them. Because enterprise-wide systems contain so much information, the CPM user interface needs to focus users’ attention on what is important so they can take action early.
User Access Methods
The way in which users access the CPM solution will vary depending on their location, their degree of expertise, and what they want to do once they have access. For many users, the web is ideal for delivering a CPM solution. This medium has done a great deal to help standardize access to information by providing a common, simple, and intuitive method that eliminates the need to know about the technicalities and location of the underlying system. However, the web by itself is not the complete answer for all users. For instance, a CPM system that requires users to be online to access information may not be that useful when the user is traveling. Also, for users creating reports, the web offers relatively few formatting capabilities. These users also may need to add information to provide the right context for their communication. Here, the spreadsheet and word processor are the best tools for adding context. For these reasons, CPM systems need to provide a wide variety of access options for both online and off-line users.
Web Browser. The web browser is the primary tool for accessing information in a CPM system. Web-based systems are extremely efficient when it comes to broad deployment across the enterprise. Adding more
The Strategy Gap
users is a simple matter of sending the user the appropriate URL address. There is no need to load or maintain software on a user’s machine. The web allows continuous changes to be made to the CPM system without having to go through any arduous rollout process.
When using a web browser to access information, users are freed from a machine or location, meaning they can access a CPM system anywhere, anytime. Web browsers can deliver text and formatted numbers, handle the interaction with functions, and contain links to other related documents. All users access the same version of the data, which eliminates version control issues and data controversies. Changes to a web-based system are communicated instantly to all users without the need to send files, templates, or anything else.