Unleashing the True Value of EPM ROI: A Strategic Perspective

Understanding the Core of EPM ROI

Most discussions about EPM ROI focus on efficiency: time saved, processes automated, and headcount avoided. These benefits matter. However, they rarely represent where the most meaningful returns are realised.

A few years ago, I worked with an ASX-listed organisation implementing a new EPM solution. During the first annual budget cycle on the new platform, something unexpected occurred. The board raised a concern that one product line appeared to be loss-making in the upcoming year’s budget.

Assuming there was an issue with the new system, they asked the finance team to investigate. The team reviewed the details, validated the assumptions, reconciled the outputs, and re-examined the model. When they reported back to the board, the conclusion was not what anyone expected.

The system was correct.

Not only was the organisation planning to make a loss on that product line in the coming year, but it had also made a loss in each of the two previous years. Until then, the organisation’s internal systems had never surfaced this insight. That discovery led to a decisive outcome. The product line was discontinued, and the financial impact was immediate and material. In practical terms, that single decision paid for the EPM investment.

The Challenge of Measuring EPM ROI

Stories like this, however, are the exception rather than the rule. EPM investments rarely deliver a single, clean moment where ROI can be neatly attributed to one decision. As a result, ROI discussions tend to remain anchored in efficiency: time saved, automation achieved, and effort reduced. While these savings can be tangible, they are not where EPM delivers its most durable value.

The stronger returns come from performance improvement. Better visibility into performance leads to clearer trade-offs, earlier signals, and fewer decisions made on partial or outdated information. These benefits are real, but they are often harder to quantify.

Rather than asking, “How quickly can EPM pay for itself through efficiency-led cost savings?” it is worth considering a different question:

“How can EPM generate sustained value over time?”

The Long-Term Impact of Performance Improvement

Performance improvements create the conditions for long-term shareholder value. Small gains compound quickly:

• A modest uplift in sales growth

• A slight improvement in margin through better mix

• A gradual reshaping of the cost base

  
  

Individually, these changes may appear incremental. However, over time, their cumulative impact is significant.

When an EPM system helps teams identify these levers, and, critically, plan for them, execute against them, and monitor progress, the resulting impact on the bottom line can far exceed the original investment. This is where long-term ROI is created.

Shaping Performance with EPM

For CFOs and FP&A leaders, the opportunity is not just to explain performance more clearly but to shape it. This means embedding value-focused levers into planning and forecasting and using them to guide decisions throughout the year.

When planning moves from describing outcomes to influencing them, EPM stops being a cost of operations and becomes a strategic investment. That is where real return on investment lies.

Conclusion: Embracing EPM for Future Success

In conclusion, the true value of EPM ROI lies beyond mere efficiency. It is about fostering a culture of performance improvement and strategic decision-making. By focusing on sustained value generation, organisations can unlock the full potential of their EPM investments.

#AstuteDimension #Jedox #FPandA #EnterprisePerformanceManagement #FinanceLeadership

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