From Department Tool to Business Backbone: The EPM Revolution 💫

Enterprise Performance Management (EPM) is undergoing a dramatic shift. Once viewed as purely a financial planning tool, it's becoming the backbone of comprehensive business planning.

With EPM now ranking as the #3 priority for business technology investment, organizations are discovering its power to connect financial performance with operational excellence.

Breaking Down the Transformation

The traditional view of EPM focused primarily on high-level financial plans and budgets. However, as John Hagerty, Distinguished Analyst at Dresner Advisory Services, reveals in our latest episode, the real action is happening in operational areas, including:

• Sales planning dynamics

• Supply chain operations

• Workforce management

• Operational metrics

Why This Matters for Your Organization

This evolution in EPM isn't just about adding new features. It's about fundamentally changing how organizations plan and measure success. Here are a few ways leading organizations are making this happen.

1. Starting small, scaling smart. While EPM adoption is surging across industries, success doesn't come from trying to transform everything simultaneously. The most effective organizations begin with focused departmental deployments that prove value quickly. By creating champions across departments and establishing a solid foundation, organizations can expand their EPM capabilities strategically and sustainably.

2. Leveraging AI for better insights. Integrating Artificial Intelligence (AI) into EPM isn't just about automation — it's about making financial data more accessible and actionable for everyone in the organization. Forward-thinking companies are transforming complex queries into simple questions that anyone can ask. Through AI, they can generate narrative explanations of financial performance in multiple languages. Perhaps most importantly, this AI integration frees finance teams to focus on strategic work that drives business value.

3. Connecting the dots. Modern EPM success comes from understanding how different parts of the business impact each other. It’s time to look beyond traditional financial metrics to understand operational drivers, creating direct links between operational decisions and economic outcomes. Building integrated planning processes that connect sales, operations, and finance allows you to develop a holistic view of business performance that drives better decision-making.

Looking Ahead: The Regulatory Wave

External pressures are reshaping EPM requirements worldwide. As environmental and social governance regulations expand from Europe and Asia Pacific into North America, organizations face new demands for data and reporting they've never tracked.  

This is a fundamental shift in how businesses need to measure and report performance. Getting ahead of this curve means using EPM to integrate these new metrics into planning and reporting processes now rather than scrambling to adapt later. The organizations that thrive will view these changes not as burdens but as opportunities to build more comprehensive and forward-looking planning systems. 

Ready to learn how your organization can harness the full power of modern EPM? Listen to our full conversation with John Hagerty on this week's episode of The CFO Show, available wherever you typically listen.

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In case you missed it…

Breaking down silos isn't just about technology — it's about people. In our last episode, Megha Parekh, EVP and Chief Legal Officer of the Jacksonville Jaguars, revealed how the partnership between legal and finance departments can augment business outcomes. She shares how bringing legal and finance teams together early in strategic planning can accelerate deal closures and improve risk management. This collaborative approach turns two traditional service departments into a powerful strategic partnership that fuels business success.

What’s next…

Building a finance function from the ground up is a challenge and an opportunity. In our next episode, Amy Ward, CFO of Blue River PetCare, shares her journey from Senior Accountant to CFO, revealing how she built and scaled a finance team that balances technical expertise with cultural fit. From choosing the right initial hires to implementing essential technology, Amy offers practical insights for finance leaders looking to build strong foundations while emphasizing that success comes from finding people who can grow with your organization.