What is EPM (Enterprise Performance Management)?
EPM (Enterprise Performance Management) is a structured Finance capability that enables organisations to translate strategy into measurable financial plans, forecasts and performance outcomes. By integrating planning, consolidation, reporting and analytics within a common data and governance framework, EPM creates a consistent foundation for enterprise-wide steering and decision-making.
In a business environment characterised by complexity, shorter decision cycles and increased demand for transparency, a scalable EPM platform allows Finance to move beyond historical reporting and actively support strategic and operational decisions across the organisation.
What are the challenges within the EPM space?
Despite its strategic importance, many organisations struggle to realise the full value of EPM in driving financial performance. In our experience we often meet these common issues:
- Finance spends a lot of time preparing reports: Reporting takes time and focus away from business partnering, insights and driving value
- Consolidation processes are manual and complex: Month-end consolidation is a time-intensive manual process with lack of ownership and coordination to effectively deliver accurate reporting
- Planning processes are slow and ineffective: Planning is not integrated in the business. The process is long, and input becomes obsolete. The plan is not relevant for monthly reporting
- KPIs are not sufficient for steering the business: Reported data does not support the needs of management by providing sufficient transparency
- Reporting is not reliable and not used in decision-making: Data is not consistent across reports, and ownership is not clear. Data is not trusted, and reports may be too many or complex to uncover insights
Acknowledging and addressing these pain points - can unlock the tangible value in organisations.
What are the key benefits from EPM?
When EPM is designed as an integrated part of the finance operating model, it enables finance to move from reactive reporting to proactive performance management. A modern EPM capability connects data, processes, governance, organization and technology, to drive finance efficiency, stronger controls and ultimately better decisions.
A holistic EPM framework connects the strategy room with the forecasting and budgeting processes, such the strategy becomes measurable and reflected in the financial plans for the organization.
As the organization moves forward, business activities are executed which are reflected in transactional systems, typically ERP systems.
These can then be consolidated via the EPM, also serving external stakeholders.
The forecast and actuals datasets also function as foundation for more internal business reporting and performance management. Which in turn feeds back to the strategy room.
- Data you can trust
- Enables a single source of truth through a unified finance data model
- Improves data quality through automated validations and AI-supported anomaly detection
- Processes & governance that work for you
- Reduces manual corrections and reconciliations, freeing up time for value-adding activities
- Strengthens governance, compliance and auditability through robust workflows and clear ownership
- Technology that works with you
- Accelerates planning, consolidation and reporting cycles with higher accuracy and robustness
- Reduces dependency on legacy system constraints, supporting future growth and M&A activities
- Improved business insights driven by advanced analytics & AI
- Drives forward-looking insights through AI-powered, driver-based forecasting and scenario planning
- Supports faster decision-making with automated narratives, variance explanations and personalised analytics
How does an EPM solution work in practice?
An EPM system typically collects and validates data, either directly from ERP and other data sources, or upload templates for assumptions and/or drivers. From these data sources, combined with controlled workflows and system calibration, the financial forecasts are generated, which later can be stored as forecast scenarios. The system supports; approvals, legal consolidation, version controls, drilldowns and governance, followed by reporting at all levels in accordance with the dimensionality implemented.
In short, an EPM system enables better and more accurate decision-making across the Finance organisation and empower Finance people to deliver more strategic value to the business. By spending less time on collecting, correcting and processing data, the Finance team can spend more time generating business insights and driving decision making – acting as strategic finance business partners – all the way from the board room to the shop floor
EPM implementation: Turning an idea to reality
When helping clients mature their Finance function via an EPM approach and system, PwC supports the full lifecycle, through these 3 steps:
- Building the case for change, incl. a current state assessment of the Finance and IT system solution landscape, criteria and design of a “fit-for-future” Finance target operating model, as well as the development of an initial business case. Here you have a clear reason why.
- Select System- and System Integrator, with focus on designing functional client specific use-cases, system vendor RfP material, negotiating the best terms and prices, as well as a final business case and implementation roadmap. Here you have a clear understanding of what and how.
- System implementation and user adoption, incl. both project- and change management considerations. Here your idea has turned into reality.
A successful project is a team effort
Our PwC framework delivers a comprehensive and tailored solution for the client by combining
- The system vendor which brings the EPM software, typically an off-the-shelf cloud-based program which can be tailored for the client
- The system integrator which brings deep functional expertise in how this system works and can do the specific calibration required
- The client expertise into detailed knowledge of processes, data, practices and ambitions
- PwC typically acts as the Business Integrator across the entire EPM journey – ensuring alignment between strategy, processes, data, technology and people. We strive to be your trusted advisor, letting your organization leverage our experience from multiple client journeys to execute optimized and fit-for-purpose EPM
The strength of the approach flows from our ability to get the best from each team member in the pursuit of an optimized solution for the specific organizational context within time and budget. E.g. by challenging the system vendor to strive for non-standard calibrations if needed or by adjusting client processes and practices to fit the system and hence maximize execution capabilities.
To maximize client benefits from a new tool, we often advice clients to award the system integrator role alongside awarding the IT system vendor contract. Often the system vendor has implementation partners which are local system experts and can calibrate the system correctly to match client requirements.
This integrated approach helps ensure a smooth, high-quality EPM transformational journey that is anchored in your operating model and strategy. Together we deliver the comprehensive tool and approach for excelling within financial management with underlying data flows and processes. The result - future-fit scalable solution which will power your decision making for year to come.
