EPM systems have grown in popularity as a result of their efficiency in capturing transactions so that organisations can prepare even daily balance sheets and profit-and-loss account statements if they want to. However, the challenge lies in understanding the reasons behind these numbers, and gaining a comprehensive view of business performance – not just a partial glimpse.

Thanks to the capabilities of the EPM solutions that they have invested in, CFOs have started shifting their focus from mere compliance to true leadership. They are using the EPM systems to make budgets, plans, reports and disclosures more compelling, providing the answers to the ‘whys’ and ‘what-ifs’ and not just the ‘whats’ and ‘hows’.

Expanding Scope

Gartner predicts that 70% of financial planning and analysis efforts will expand in scope outside of finance teams over the next few years, making it evident that performance management extends far beyond the CFO’s office. “FP&A teams are over-extended: always in reactive mode, juggling complex requests that burn out staff, and they are still leaving service gaps because they can’t serve all the decision makers that need support. The typical modernisation approach of automating routine FP&A processes to create capacity for in-person decision support is simply not keeping pace with elevated demand in most organisations, and the current trajectory is unsustainable,” the analysts say.

When EPM is used as a tool for more pervasive business modelling, rather than just a gateway for financial planning and analysis or financial close management, finance teams can not only provide the analysis and insight that decision-makers need, they can actively help set new strategic visions for their organisations and identify new business models that create future growth. By breaking down silos and fostering collaboration, EPM enables finance teams to align strategic objectives with operational plans, ensuring a unified vision across the organisation.

However, transforming EPM into a dynamic, enterprise-wide platform that acts on information from existing ERP, customer relationship management (CRM) and human capital management (HCM) systems more effectively is easier said than done. It requires business leaders to intentionally evolve how they think about and approach planning to span different functions and the entire business, enabling more tightly integrated enterprise-wide business modelling.

Transforming Operations

To keep pace with the velocity of change in today’s market, finance teams have to use their EPM solutions to transform how they operate. By broadening the scope of EPM across the entire business, CFOs can help their organisations to operate in a more fluid, integrated way, equipping the company to be more proactive and resilient for years to come.

This approach positions organisations for the future by strengthening instantaneous information sharing between teams. Business leaders will need to document how internal functions are connected, from customer-facing sales and marketing teams to supply chain, human resources, and finance and accounting departments. This will uncover blind spots, unlocking hidden value where critical information is missing today — and where it needs to be in the future – ensuring that changes in any one area are cascaded across the rest at the speed today’s business landscape demands.

EPM is the ultimate solution for modern finance teams seeking to unlock their organisation’s full potential. More than just a finance tool, EPM is the art of enabling strategic execution most efficiently and effectively, empowering finance leaders to drive strategic initiatives, optimise performance, and achieve sustainable growth.