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Home -> Blog -> Why Enterprise Performance Management (EPM) Isn’t Designed for HR and Business Teams
Enterprise Performance Management (EPM) has become a key solution for organizations aiming to optimize financial processes and overall business performance. An EPM system integrates financial planning, budgeting, and forecasting functions into a unified platform, evolving from simple financial consolidation to addressing broader business goals. In practice, EPM helps organizations manage planning, budgeting, forecasting, and reporting on performance, making it essential for CFOs and financial analysts to monitor metrics such as revenue growth and profit margins. However, traditional EPM solutions primarily cater to financial departments, often missing the nuanced needs of HR and business teams. This disconnect highlights several issues: Financial metrics are just one part of overall performance. Human capital management requires different tools. Cross-departmental collaboration needs more flexible solutions. Real-time people analytics are often not supported by traditional EPM systems. As companies increasingly focus on strategic human capital management and employee experience, the gap in organizational effectiveness becomes more apparent. If you're looking to bridge the gap in your Enterprise Performance Management and enhance your organization’s overall effectiveness, consider Doublefin. Our innovative solutions are designed to support cross-departmental collaboration, integrate real-time people analytics, and cater to the diverse needs of your HR and business teams. Contact us today to learn more!
While enterprise performance management software has proven its worth in financial operations, its limitations become apparent when applied to HR and business team functions. Despite the growing adoption of cloud-based EPM solutions, with companies like JTEKT reporting a 25% reduction in budgeting time, these systems still fall short in addressing crucial non-financial aspects of business operations.
Cloud-based EPM systems traditionally focus on financial KPIs, making it challenging to integrate and analyze non-financial performance indicators. Despite the integration of Robotic Process Automation (RPA) tools in EPM, which enables employees to focus more on core operations, the fundamental architecture of these systems remains financially oriented. This creates a significant disconnect for teams trying to measure:
While modern EPM solutions offer cloud capabilities, they often lack intuitive interfaces and collaborative features that business teams need. The complexity of these systems, initially designed for finance professionals, can be overwhelming for HR personnel and other departmental users. This technical barrier often results in:
The disconnect between financial and non-financial data becomes even more pronounced when teams attempt to collaborate across departments. Despite advances in cloud performance management, many EPM systems still operate in relative isolation, making it challenging to create a unified view of organizational performance that encompasses both financial and human capital metrics.
Modern HR and business teams require specialized tools that align with their unique objectives and operational requirements. Unlike traditional financial planning systems, these teams need solutions that prioritize people-centric data and facilitate dynamic workforce management. Let's explore the specific requirements that set HR and business teams apart from purely financial operations.
HR and business teams need to track and analyze metrics that go beyond the balance sheet. Their focus centers on measuring and improving:
These metrics require different measurement approaches and analytical frameworks than traditional financial KPIs. While financial metrics are typically quantitative and standardized, employee-centric metrics often combine both qualitative and quantitative data points to create a comprehensive view of workforce health.
The dynamic nature of modern workplaces demands systems that can capture and analyze workforce data in real-time. HR and business teams need tools that can:
This real-time tracking capability is essential for making informed decisions about workforce management and organizational development. Unlike financial reporting, which often operates on monthly or quarterly cycles, workforce data requires continuous monitoring and immediate response capabilities.
Modern organizations thrive on cross-functional collaboration, requiring systems that facilitate seamless information sharing and joint decision-making. HR and business teams need platforms that enable the following:
Integrated workforce planning that aligns with financial objectives Shared access to relevant data across departments Real-time communication channels for project coordination Collaborative goal-setting and performance tracking Joint reporting capabilities that combine financial and workforce metrics
The ability to work across departmental boundaries while maintaining data security and relevance for each team is crucial. This collaborative approach ensures that workforce decisions are made with a complete understanding of both the human and financial implications, leading to more balanced and effective organizational strategies.
While enterprise performance management adoption has increased to 71% in 2024, and 52% of organizations have been using EPM software for 5+ years, the need for specialized solutions that bridge the gap between finance and HR has never been more apparent. Modern organizations require tools that go beyond traditional financial budgeting and planning, which currently dominates EPM capabilities.
The emergence of specialized HR-focused platforms represents a significant shift from conventional EPM systems. These solutions prioritize the human element of business operations while maintaining the analytical rigor needed for strategic decision-making. For instance, Doublefin's automated & collaborative resource platform exemplifies this new approach by:
The integration of artificial intelligence (AI) and machine learning (ML) within these systems is revolutionizing how organizations handle people management. These technologies help detect patterns in employee data, predict workforce trends, and provide actionable insights for HR leaders.
Modern collaborative platforms like Doublefin are addressing the traditional silos between finance and business teams by offering:
These solutions recognize that digital transformation requires breaking down departmental barriers. By providing a single source of truth for both financial and HR data, organizations can make more informed decisions about resource allocation and workforce planning.
The key advantage of these alternative solutions lies in their ability to adapt to changing business needs while maintaining the rigorous financial controls that organizations require. Unlike traditional EPM systems that focus primarily on financial metrics, these platforms create a bridge between finance and HR, enabling truly strategic workforce planning.
Through cloud-based solutions for strategic planning and comprehensive reporting tools, organizations can now achieve the perfect balance between financial oversight and people management. This approach not only streamlines operations but also supports sustainable growth by ensuring that both financial and human capital considerations are given equal weight in strategic decision-making.
The landscape of organizational performance management is changing, revealing that traditional EPM systems are inadequate for the needs of modern HR and business teams. While these systems excel in financial planning, they often neglect the human element crucial for success.
The future lies in integrated solutions that connect financial and people management. Innovative companies like Doublefin are pioneering this shift by merging financial planning with HR needs, showcasing the potential for robust analytical capabilities alongside workforce management.
Successful organizations understand that performance management is not just about numbers but optimizing the relationship between financial resources and human capital. By adopting tools that balance financial accuracy with human-centric metrics, companies can enhance their performance management approach and thrive in a complex business environment. The key to future success is this integration of financial and human resource management powered by supportive technology.
Ready to transform your performance management? Discover how Doublefin’s innovative solutions can help your organization thrive. Contact us today for a demo and take the first step towards a more integrated future!
