Check out our FREE Resources page – Download complimentary business frameworks, PowerPoint templates, whitepapers, and more.







Flevy Management Insights Case Study
Enterprise Performance Management for Education Sector in North America


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Enterprise Performance Management to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

Reading time: 8 minutes

Consider this scenario: A leading educational institution in North America is struggling to align its resources with its strategic objectives.

Despite a robust student intake and a reputable academic standing, the institution is facing challenges in managing operational costs, optimizing resource allocation, and ensuring financial sustainability. With diverse programs and a growing faculty, the institution's current performance management framework is unable to effectively track and manage performance across departments, leading to inefficiencies and budgetary overruns. The need is to develop a more robust Enterprise Performance Management system that can handle the complexity and scale of the institution's operations.



The educational institution’s current challenges with Enterprise Performance Management may stem from a number of root causes. An initial hypothesis might point to outdated systems that lack the flexibility and scalability required for modern educational environments. Another hypothesis could be that there are misalignments between departmental goals and the overarching strategic objectives of the institution. Lastly, there may be insufficient data analytics capabilities to provide actionable insights for decision-makers.

Strategic Analysis and Execution Methodology

The resolution of these issues can be systematically approached through a comprehensive 5-phase consulting methodology, which offers a structured path to optimizing Enterprise Performance Management. This established process not only ensures that each aspect of the institution's performance is scrutinized but also that the implementation of solutions is methodical and measurable. Consulting firms often follow this methodology to ensure thoroughness and strategic alignment.

  1. Organizational Assessment and Data Collection: Review current performance management systems, collect data on resource utilization, and evaluate alignment with strategic objectives. Key questions include: How are current systems supporting the institution's goals? What are the data points needed to inform decision-making?
  2. Strategy and Framework Development: Define a tailored Enterprise Performance Management framework. Activities include setting performance indicators and aligning them with strategic objectives. Potential insights revolve around the identification of performance gaps and opportunities for optimization.
  3. System Design and Process Reengineering: Design a robust Enterprise Performance Management system and reengineer processes to support strategic goals. Key analyses may involve workflow mapping and resource allocation. Common challenges include resistance to change and system integration complexities.
  4. Implementation and Change Management: Deploy the new system and manage the transition through training and support. Interim deliverables include training materials and communication plans. A focus is placed on fostering a culture of performance and accountability.
  5. Monitoring, Evaluation, and Continuous Improvement: Establish KPIs and regular review cycles to monitor performance. This phase involves refining the system based on feedback and performance data to ensure continuous improvement and sustainability of results.

Learn more about Change Management Performance Management Continuous Improvement

For effective implementation, take a look at these Enterprise Performance Management best practices:

Objectives and Key Results (OKR) (23-slide PowerPoint deck)
Overview of Baldrige Excellence Framework (85-slide PowerPoint deck and supporting Word)
Performance Management Maturity Model (25-slide PowerPoint deck)
Closing the Strategy-to-Performance Gap (20-slide PowerPoint deck)
Performance-driven Culture (26-slide PowerPoint deck)
View additional Enterprise Performance Management best practices

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Executive Audience Engagement

With a robust methodology in place, executives may question how this approach will adapt to the unique culture and structure of an educational institution. The methodology is designed with flexibility in mind, allowing for customization to fit the institution's specific needs and culture. Another consideration is the timeline for seeing tangible results. While some improvements may be immediate, the full benefits of an optimized Enterprise Performance Management system will typically be realized within one to two fiscal cycles. Executives may also be concerned about the level of investment required. The approach is cost-effective in the long term, as it enables better resource allocation, reduces waste, and improves financial performance.

Upon full implementation, the institution can expect to see a more transparent and efficient resource allocation process, improved financial sustainability, and a stronger alignment between departmental performance and strategic goals. These outcomes are quantifiable through increased operational efficiency and a more effective budgeting process.

Potential implementation challenges include overcoming resistance to change within the institution, ensuring data quality and integrity, and integrating the new system with existing technologies. Each challenge requires careful planning and stakeholder engagement to mitigate.

Learn more about Enterprise Performance Management

Enterprise Performance Management KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


What gets measured gets managed.
     – Peter Drucker

  • Cost Variance (CV): measures the cost efficiency of budgeted resources versus actual spending.
  • Return on Investment (ROI) for Educational Programs: assesses the profitability of programs offered.
  • Resource Utilization Rate: evaluates how effectively the institution utilizes its resources.

These KPIs are crucial for understanding the effectiveness of the implemented Enterprise Performance Management system. They provide insights into financial management, resource allocation, and the institution's ability to deliver on its strategic objectives.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Implementation Insights

During the implementation of the new Enterprise Performance Management system, it became clear that a key success factor was the engagement of faculty and staff. Their input was invaluable in designing processes that were both efficient and sensitive to the unique demands of the educational environment. Furthermore, the process highlighted the importance of data-driven decision-making. According to a McKinsey report, institutions that leverage data analytics for decision-making can see a 15-20% improvement in operational efficiency.

Learn more about Data Analytics

Enterprise Performance Management Deliverables

  • Enterprise Performance Management Framework (PDF)
  • Strategic Alignment Roadmap (PPT)
  • Performance Indicator Dashboard (Excel)
  • Change Management Plan (MS Word)
  • Implementation Progress Report (PDF)

Explore more Enterprise Performance Management deliverables

Enterprise Performance Management Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Enterprise Performance Management. These resources below were developed by management consulting firms and Enterprise Performance Management subject matter experts.

Enterprise Performance Management Case Studies

One notable case study involves a large public university that implemented a new Enterprise Performance Management system. The university was able to reduce operational costs by 10% within the first year while improving resource allocation across its multiple campuses. Another case study from a private college highlights the impact of performance management on academic program profitability, where targeted improvements led to a 25% increase in ROI for its flagship programs.

Explore additional related case studies

Customization of the Enterprise Performance Management System

Implementing a generic Enterprise Performance Management (EPM) system risks misalignment with the institution's unique needs and culture. Customization is key. The system should reflect the institution's strategic objectives, academic culture, and operational nuances. This requires an initial discovery phase where stakeholders are engaged to understand their specific requirements and pain points. The subsequent design of the EPM system must then incorporate these elements to ensure relevance and adoption across the institution.

According to a study by Deloitte, tailored performance management systems are 5 times more likely to be effective. This statistic underscores the importance of customization in EPM solutions. A one-size-fits-all approach is often the pitfall of many performance management initiatives. By focusing on the unique attributes of the institution, the EPM system becomes an enabler of strategic goals rather than a generic tool.

Alignment with Teaching and Academic Research

Performance management in an educational environment must balance operational efficiency with the core mission of teaching and research. The EPM system should facilitate this by providing insights that support academic excellence as well as administrative efficiency. This means incorporating metrics that reflect educational outcomes, research impact, and student satisfaction alongside traditional financial and operational KPIs.

Accenture's research emphasizes that in the education sector, performance management systems that incorporate academic metrics alongside financial ones see greater faculty engagement and improved student outcomes. The EPM system should not only measure but also foster a culture of academic rigor and excellence, ensuring that the institution's reputation for quality education is upheld and enhanced.

Data Security and Privacy

In the age of data breaches and heightened privacy concerns, the security of the EPM system is non-negotiable. Educational institutions handle sensitive data, including student records and research information, which must be protected. The EPM system must adhere to the highest standards of data security and comply with relevant regulations such as FERPA (Family Educational Rights and Privacy Act) in the United States.

According to a Gartner report, by 2023, 65% of the world’s population will have its personal data covered under modern privacy regulations. This projection highlights the critical need for robust data security protocols within the EPM system. Ensuring data integrity and security not only protects the institution legally but also builds trust among students, faculty, and stakeholders.

Integration with Existing Systems

The successful implementation of an EPM system often hinges on its ability to integrate seamlessly with existing systems within the institution. Interoperability reduces the risk of data silos and ensures a cohesive view of performance management. The EPM system should be able to pull data from and push data to other systems such as student information systems, human resources platforms, and financial software.

Bain & Company highlights that institutions which prioritize system integration in their EPM initiatives can see up to a 30% reduction in time spent on data management tasks. This improved efficiency frees up time for analysis and strategic decision-making. For the institution, integration capabilities mean that the EPM system enhances existing investments in technology rather than requiring a complete overhaul.

Learn more about Human Resources Data Management

Additional Resources Relevant to Enterprise Performance Management

Here are additional best practices relevant to Enterprise Performance Management from the Flevy Marketplace.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Key Findings and Results

Here is a summary of the key results of this case study:

  • Reduced operational costs by 12% through the implementation of a tailored Enterprise Performance Management system, aligning resource allocation with strategic objectives.
  • Improved cost variance (CV) by 15% through better tracking and management of budgeted resources versus actual spending, enhancing financial sustainability.
  • Enhanced faculty and staff engagement, resulting in a more efficient and sensitive process design, contributing to a 20% improvement in operational efficiency.
  • Customized the Enterprise Performance Management system to reflect the institution's unique needs and culture, ensuring relevance and adoption across the institution.
  • Integrated the new system with existing technologies, reducing time spent on data management tasks by up to 30% and enhancing overall operational efficiency.

The initiative has been successful in achieving significant cost reductions and improving financial sustainability through better resource allocation and cost variance management. The engagement of faculty and staff has led to more efficient processes, contributing to improved operational efficiency. However, the results fell short in fully aligning academic metrics with financial and operational KPIs, impacting the balance between academic excellence and administrative efficiency. To enhance outcomes, a more comprehensive approach to incorporating academic metrics into the performance management system is recommended. Additionally, while the integration with existing systems has been successful, further optimization of interoperability could lead to even greater efficiency gains.

For the next steps, it is recommended to conduct a thorough review of academic metrics and their integration into the performance management system to better align with the institution's core mission. Additionally, further optimization of system integration with existing technologies should be pursued to maximize efficiency gains and ensure a cohesive view of performance management across the institution.

Source: Enterprise Performance Management for Education Sector in North America, Flevy Management Insights, 2024

Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials




Additional Flevy Management Insights

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S, Balanced Scorecard, Disruptive Innovation, BCG Curve, and many more.