Full report can be downloaded from http://www.hyperion.com/cranfield
FOR IMMEDIATE RELEASE
Object Marketing (for Hyperion)
Tel: (020) 8762 9292
Press and PR Officer
Cranfield School of Management
Tel: 01234 754348
Full report can be downloaded from http://www.hyperion.com/cranfield
CRANFIELD SCHOOL OF MANAGEMENT: BUSINESS PERFORMANCE MANAGEMENT (BPM) HAS POSITIVE IMPACT ON THE ENTERPRISE
… Largest survey yet into corporate best practice and attitudes towards BPM…
LONDON, UK, August 26th, 2004 – Organisations believe Business Performance Management (BPM) initiatives have a positive impact on performance and that the most positive impact occurs when initiatives are planned and executed properly, using appropriate tools. Of the software applications used to automate BPM initiatives, organisations using packaged or custom BPM applications are most satisfied, while more than half of the organisations using Enterprise Resource Planning (ERP) applications rate their performance as just acceptable. Most unhappy are those organisations still using spreadsheets.
These are the key findings of the largest survey to date into corporate best practice and attitudes towards BPM, conducted by the Cranfield School of Management in conjunction with Hyperion (Nasdaq: HYSL), the global leader in Business Performance Management (BPM) software. The survey was conducted in late 2003, with responses from 780 Chief Executive Officers (CEOs) and Chief Financial Officers (CFOs) from the 5,000 largest organisations in the United States.
According to the report’s author, Bernard Marr, Research Fellow in the Centre for Business Performance at Cranfield School of Management: “Business Performance Management (BPM) is a term frequently used among senior executives of leading corporations around the globe to describe the management processes and business systems they use to improve performance and accountability. However, very few reliable studies have documented the state of the art, common practices and tangible benefits of BPM. We feel we have closed this gap by carrying out the largest survey to date into BPM. Given the breadth and depth of the survey results, we feel we have conclusively shown the positive impact of BPM on corporate performance - and that the key to success is planning, execution and appropriate tools. There is no question that those organisations still using spreadsheets for this kind of initiative are lagging their peers and competitors.”
Other key findings of the survey include:
1. Build a Business Model - Companies with a formal BPM approach report that they more often use causal models to build a hypothesis and link objectives and performance measures to the firm strategy.
2. Collect Data - Companies with a formal BPM approach report higher data quality and increased consistency in how they measure performance.
3. Analyse and Interpret Data – Companies with a formal BPM approach report
improved interpretation of their performance information.
4. Extracting Insights - Companies with a formal BPM approach claim to extract higher quality insights from their performance information.
5. Communicate Insights - Companies with a formal BPM approach report that they better communicate their insights.
6. Decisions and Actions - Companies with a formal BPM approach report better execution of their decisions and actions.
- ends -
NOTES TO EDITORS
A full copy of Business Performance Management: Current State Of The Art, can be downloaded free from http://www.hyperion.com/cranfield.
Business Performance Management – definition
BPM is the organisational approach to assess and monitor performance in relation to set goals and objectives. It encompasses methodologies, frameworks and indicators that are used to help organisations in the formulation and assessment of the strategy, to motivate people and to communicate or report performance to external stakeholders.
We sent a copy of the survey with a cover letter to the Chief Executive Officers (CEO) and Chief Financial Officers (CFO) of the Fortune 1000 companies. When we received multiple replies from the same organisation, we selected the response from the most senior respondent based on job title. If the CEO or CFO was unable to complete the survey, we asked him or her to select the most suitable candidate to fill in the survey.
We provided respondents with a Web link and encouraged them to complete the survey online, which gave respondents immediate access to benchmarking information based on other respondents as well as to a pre-study literature review. As a further incentive to complete the survey, we offered the first 100 respondents a copy of a management book on performance management. Using these techniques, we achieved 248 responses, which corresponds to a 25% response rate, from the Fortune 1000. Next, using the Perfect Analysis database product, we identified the 5,000 largest United States’ companies based on their total revenue, excluding the Fortune 1000 companies contacted before. We then approached another 4,477 executives from these United States’ companies, of which 430 responded - a response rate of just under 10%. In addition, we placed announcements in CFO magazine as well as in Perform Magazine, inviting CEOs and CFOs to go to our Web site and participate in the study.
The result was that 193 companies responded to the announcement and completed the survey from which 102 were usable. We excluded 51 because respondents were from outside the United States, 32 because they were too small and 8 respondents because they did not provide sufficient company information. This gave us a total of 780 responses from large United States’ firms across different industries. The breakdown of industries of the firms represented in our final sample is as follows:
SECTOR Service - FREQUENCY 249 - PERCENT 32
SECTOR Manufacturing - FREQUENCY 156 - PERCENT 20
SECTOR Financial Management - FREQUENCY 49 - PERCENT 6
SECTOR Retail - FREQUENCY 37 - PERCENT 5
SECTOR Telecom - FREQUENCY 34 - PERCENT 4
SECTOR Other - FREQUENCY 255 - PERCENT 33
SECTOR Total - FREQUENCY 780 - PERCENT 100
All respondents were asked to reply for the company as a whole and not for any particular subsidiary or division. All participants were assured that all responses would be kept confidential. The cover letter and survey stated that only aggregates would be used for the research and that no individual company would be linked to specific responses.
About the Report Author
Bernard Marr is a Research Fellow in the Centre for Business Performance at Cranfield School of Management and a Visiting Professor at the University of Basilicata, Italy. Prior to joining Cranfield in 1999, he held a research position at the Judge Institute of Management Studies at Cambridge University. Bernard’s major research interests revolve around managing and measuring business performance.
His research focuses on balanced scorecards, strategy maps, intellectual capital, intangible assets and performance management software applications. Bernard is a leading thinker in the field of intangible value driver management and is recognised as one of the world’s authorities on performance management and its software applications.
For more information please see: http://www.som.cranfield.ac.uk/som/cbp/bwm.htm
Cranfield School of Management
Cranfield School of Management is a world-class university business school based in the UK. It is renowned for its high-quality teaching and research, as well as its strong links with industry and business. In addition to its MBA and MSc programs, Cranfield also runs management development courses – ranging from one day to several weeks – attended by over 6,000 managers from 80 different countries each year. Cranfield is known above all as a school that provides practical management solutions, which are achieved through its postgraduate degree programs, management development courses, research and consultancy.
The Centre for Business Performance specialises in the design, implementation, use and ongoing maintenance of performance measurement and management systems. It is based at Cranfield School of Management and encompasses a variety of teaching, research and affiliate faculty. The focus of the Centre’s activity is applied research and knowledge transfer, involving the development, application and dissemination of practical tools and concepts underpinned by high-quality academic research.
The specific aims of the Centre are to develop and implement practical tools and materials for use by management; to develop new understanding, frameworks and techniques for effective performance measurement and management; to interpret and disseminate relevant research findings; to provide an interdisciplinary business-academic community centred on performance measurement and management; to prepare and deliver educational and training materials for use at postgraduate and post experience levels.
Hyperion is the global leader in Business Performance Management software. More than 9,000 customers – including 91 of the Fortune 100 – rely on Hyperion software to translate strategies into plans, monitor execution and provide insight to improve financial and operational performance. Hyperion combines the most complete set of interoperable applications with the leading Business Intelligence platform to support and create Business Performance Management solutions. A network of more than 600 partners provides the company’s innovative and specialized solutions and services.
Named one of the FORTUNE 100 Best Companies to Work For 2004, Hyperion employs approximately 2,500 people in 20 countries. Distributors represent Hyperion in an additional 25 countries. Headquartered in Sunnyvale, California, Hyperion generated annual revenues of $622 million for the 12 months that ended June 30, 2004. Hyperion is traded under the Nasdaq symbol HYSL. For more information, please visit www.hyperion.com <http://www.hyperion.com> /uk, e-mail email@example.com
# # #
Safe Harbor Statement
Statements in this press release other than statements of historical fact are forward-looking statements, including, but not limited to, statements concerning the potential success of anticipated product features, the anticipated product offerings and the potential market opportunities for business performance management software. Such statements constitute anticipated outcomes and do not assure results. Actual results may differ materially from those anticipated by the forward-looking statements due to a variety of factors, including, but not limited to the company's ability to retain and attract key employees, the successful and timely development of new products, the impact of competitive products and pricing, customer demand, and technological shifts. For a more detailed discussion of factors that could affect the company's performance and cause actual results to differ materially from those anticipated in the forward-looking statements, interested parties should review the company's filings with the Securities and Exchange Commission, including the Report on Form 10-K filed on August 13, 2003 and the Report on Form 10-Q filed on May 10, 2004. The company does not undertake an obligation to update its forward-looking statements to reflect future events or circumstances.
“Hyperion,” the Hyperion “H” logo and Hyperion’s product names are trademarks of Hyperion. References to other companies and their products use trademarks owned by the respective companies and are for reference purpose only.
This press release was distributed by ResponseSource Press Release Wire on behalf of Object Marketing in the following categories: Personal Finance, Business & Finance, Computing & Telecoms, for more information visit https://pressreleasewire.responsesource.com/about.