Question 1

Why is steering only from past reporting risky?

Accepted Answer

Past reporting describes what happened, not what is going to happen. Steering only 'in the rear-view mirror' exposes you to reacting too late to weak signals, missing market shifts and replicating last year's biases. Robust steering combines actuals analysis, rolling forecasts and scenario simulation to inform decisions before they become forced.

Question 2

What is the difference between financial steering and performance management?

Accepted Answer

Financial steering focuses on accounting and budgetary indicators (revenue, margin, cash, budget vs. actual). Performance management is broader: it also covers operational KPIs (volumes, productivity, quality, satisfaction, NPS, time-to-market) and links business levers to financial outcomes. The first measures, the second informs decisions and trade-offs.

Question 3

When should you move from Excel to a steering tool?

Accepted Answer

When consolidation becomes time-consuming, file versions multiply, formula errors have a material impact, scenario simulation becomes impossible at speed, or collaboration between contributors breaks down. Excel still has its place at the front end (ad-hoc analysis, restitution), but can no longer act as the steering backbone once processes become transverse and recurring.

Question 4

What is EPM (Enterprise Performance Management)?

Accepted Answer

EPM refers to the processes, methods and tools that enable an organisation to steer its overall performance: reporting, consolidation, budgeting, forecasting, strategic and operational planning, and simulation. An EPM platform unifies these processes around a shared reference framework and a multidimensional model used by both finance and business teams.

Question 5

What is the difference between EPM, BI and ERP?

Accepted Answer

ERP records operational transactions (sales, purchases, payroll). BI restores and analyses past data (reporting, dashboards). EPM goes further: it incorporates a forward-looking dimension (budget, forecast, simulation) and allows modelling of assumptions to drive future performance. The three are complementary.