A guide to modern Enterprise Performance Management (EPM)

In today’s fast-paced business environment, the role of the finance function is undergoing a continuing transformation. No longer confined to historical record-keeping, transaction handling and reporting. Finance leaders are now expected to be strategic partners, providing forward-looking insights that drive growth, agility, and resilience. At the heart of this evolution lies EPM.

But what exactly is EPM, and how can it empower organizations to thrive amidst constant change?

What is Enterprise Performance Management (EPM)?

Enterprise Performance Management is a comprehensive framework of processes, methodologies, and systems designed to help organizations align their strategy with execution. It’s about monitoring and managing performance to achieve strategic goals. An effective EPM solution bridges the gap between high-level strategy and day-to-day operations along the entire management cycle:

• Strategy operationalization: Translating group, divisional, and functional strategies into tangible, value-driver-based targets for the annual plan.
• Planning, Budgeting, and Forecasting: Developing annual budget plans, validating targets, and creating dynamic, rolling forecasts that allow for rapid response to market shifts.
• Financial Close & Consolidation: Streamlining and automating the financial close process to produce accurate, timely, and compliant consolidated results.
• Performance Reporting & Analytics: Delivering comprehensive management reports and decision analytics that provide a clear view of business performance.

EPM systems achieve this by integrating data from multiple sources across the organization – from finance and HR to sales and operations. By visualizing the right data and tracking the right Key Performance Indicators (KPIs), you can quickly glean actionable insights, define actions to increase profitability, and build the resilience needed to respond to unexpected disruption.

The power of choice: PwC’s tool-agnostic approach

A common question is: „Which EPM tool is the best?“. The truth is, there is no single „best-of-breed“ solution for every organization. The ideal solution depends entirely on the unique business needs, existing IT landscape, strategic goals, and scalability requirements.

This is why at PwC, a tool-agnostic approach is maintained. PwC’s deep expertise and strategic partnerships span over the entire EPM market, allowing the design and implementation of solutions using a wide spectrum of leading platforms. PwC has proven experience with tools such as OneStream, CCH Tagetik, Jedox, Anaplan, SAP Analytics Cloud (SAC), SAP BPC, Workday, and many more.

This independence allows to provide unbiased advice focused on finding the perfect fit for each business need. PwC understands the strengths of each platform – whether it’s the unified application model of one, the advanced modelling capabilities of another, or the seamless integration with an existing ERP system.

PwC’s comprehensive EPM service offerings

PwC provides end-to-end consulting services to guide through every stage of the EPM journey, from initial strategy to implementation and beyond. The offerings are designed to deliver sustainable value and transform the finance function.

1. Strategy Operationalization (Steering Model): PwC supports defining a clear and effective steering model, ensuring that corporate strategy is effectively translated into measurable drivers and KPIs that guide performance across the business.

2. Planning, Budgeting & Forecasting: PwC redesigns and implements modern planning processes, enabling everything from top-down target setting to driver-based budgeting and rolling forecasts. This includes building capabilities for Extended Planning & Analysis (xP&A), connecting financial plans with operational plans across the enterprise.

3. Financial Close & Consolidation: PwC accelerats the financial close, improve data quality, and ensure regulatory compliance by streamlining processes from local close to group consolidation, reducing manual effort and freeing up finance teams for value-added analysis.

4. Performance Reporting & Analytics: PwC designs and builds insightful reporting and analytics solutions. From interactive management dashboards to self-service analytics, the services empower decision-makers with timely, relevant, and trustworthy information.

5. EPM Tool Selection: Finding the right technology is critical. PwC’s structured and objective tool selection process ensures making a confident, well-informed decision:

• Creation of a criteria catalogue: PwC guides the definition and prioritization of the functional, technical, and strategic requirements for the future EPM solution. 
• RFP preparation: PwC helps preparing a comprehensive Request for Proposal (RFP) that includes detailed use cases reflecting specific business needs.
• Offer evaluation & shortlisting: PwC objectively reviews and evaluates vendor offers against the criteria catalogue to create a shortlist of the most suitable candidates.
• Vendor demonstrations: PwC facilitates structured, use-case-driven presentations from the shortlisted vendors, ensuring visibility of how each tool performs in scenarios relevant to the business needs.
• Interviews & reference checks: PwC conducts in-depth interviews with vendors and their reference customers to validate capabilities and performance.
• Negotiation support: PwC assists in the negotiation of submitted offers from at least two potential suppliers to ensure receiving the best possible terms and value.
• Final decision & signing: PwC prepares a final decision paper for the steering committee, outlining recommendations and the supporting rationale, leading to the final signing.
• Optional follow-up: Following the selection, PwC can seamlessly transition to leading the implementation of the chosen tool.

Why partner with PwC?

PwC provides a distinct advantage for each EPM transformation project.

• Strategic partnerships & proven track record: PwC holds strategic partnerships with many of the world’s leading EPM vendors. This, combined with the experience leading some of the largest and most complex EPM transformation engagements globally, gives clients unparalleled access to expertise and support.
• Deep functional expertise: PwC’s reputation is built on a profound expertise in planning, financial reporting, statutory consolidation, and ESG reporting, backed by global studies and thought leadership.
• Global reach, accelerated delivery: With a dedicated global team and established delivery centres, PwC can accelerate development and implementation, bringing agility and efficiency to your transformation journey.
• A holistic approach: PwC uses its own BXT (Business, eXperience, Technology) Agile delivery approach, ensuring that technology is not just implemented. PwC focuses on holistic finance transformation that incorporates strategy, processes, and people to deliver sustainable business value.

Autor:

Michael Schachermayr

For more detailed information on EPM and how to unlock the full potential of the finance function,
contact Michael Schachermayr directly.