Performance ● Governance ● Compliance (PGC)

Significant Business Value

The Aberdeen Group in their March 2005 report on Corporate Performance Management (CPM) reports that more than 75% of all enterprises that engaged in a program to improve their closed loop performance management systems achieved impressive improvements in % gross marginon average a 6.8 percentage points gain (17.7% to 24.5%). Enterprises with best-in-class closed loop performance management programs consistently outperform their competitors across all industries and company sizes:

• 32.7% gross margin versus 24.7% for industry norm, and 15.3% for laggards

• 65.7% profitable segments versus 41.3% for industry norm, and 31.5% for laggards

• 27.2% share of profitable segments versus 20.1% for industry norm, and 14.9% for laggards

This adoption of a short cycle, closed loop performance management strategy has become a best practice across all industries and company sizes, including not for profit organizations such as public sector governments and organizations.

There is a clear and growing trend across most enterprises, but especially for those reporting best-in-class business performance, to adopt, or deeply explore adopting, the strategy of selecting a prime vendor to anchor their closed loop performance management technology strategy.

 

Performance Management Imperative

What is Closed-Loop?

Significant Business Value

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