CPM Glossary
The CPM Glossary includes relevant business planning terms for a better understanding of the Corporate Performance Management concept. To find a term, please select the first letter grouping of the word you are seeking or browse through the complete glossary.
Acronyms not appearing in the glossary may be included in the Performance Management Acronyms List.
Activity-Based Costing (ABC) – (also known as Activity Based Management) is a method of allocating costs to products & services and is generally used as a tool for planning and control.
Amortisation - the allocation of an asset amount to different time periods or the systematic repayment of a debt, which is the gradual reduction of the debt through regular payments until the total amount has been cleared.
Asset - economic entities that give rise to future economic benefit and is controlled by the entity as a result of past transaction or other events. Examples include cash, equipment, buildings, and land.
Balance Sheet (BS) - a statement of the book value of all of the assets and liabilities of an organisation at a specified date, such as the end of the financial year and is a snapshot of the organisation’s financial situation.
Balanced Scorecard - a data gathering tool for measuring a company's activities in terms of its vision and strategies, to give managers a comprehensive view, including both financial outcomes and human issues, of the performance of a business.
Benchmark - a point of reference for a measurement, usually used to evaluate aspects of an organisation in relation to the best practice.
Best Practice - a process, technique or activity that is the most efficient and effective at delivering a specific result than any other method.
Bottom Line - the net income an organisation has after subtracting costs and expenses from total revenue.
Budgeting - corporate financial planning that takes place annually for the upcoming financial year.
Business Analysis - The process of identifying requirements of an organisation to achieve strategic goals through internal changes made to reduce costs and run more efficiently.
Business Intelligence (BI) - the process of capturing raw data, then transforming and combining it into relevant information that can be proactively used to improve business performance, through clear and informative results in the form of dashboards, charts and KPI summaries, with full drill-down capabilities.
Business Performance Management (BPM) - (also known as Corporate or Enterprise Performance Management) concept introduced by Gartner Research in 2001, which "all of the processes, methodologies, metrics and systems needed to measure and manage the performance of an organization." 1
Business Planning - detailing steps to achieve organisation-wide goals or targets; a business plan may include:
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Description of new venture, future expansion or overall business strategy including research to support the plan;
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Changes in branding to change perception of company by the client, tax-payer or community;
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Management plans detailing how the business should be organised;
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Staffing plans, including how many people and what skills or expertise are needed for the business and how much the organisation is will to spend on labour costs;
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Financial plans, including costs to operate, overall budgets and expected return on investment.
Business Reporting - software solution that ties together other closely related data disciplines including data mining, statistical analysis and decision support to empower decision-makers to make better and faster decisions through easily accessible information.
1 Buytendijk, Frank; Geishecker, Lee; Wood, Brian (2004), Gartner Research, "Magic Quadrant for CPM Suites: No Dramatic Movement in 2004" Accessed 14 June 2007.
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