The landscape of performance management is rapidly evolving, and CFOs are adapting their people, processes, and technology to stay ahead. Relying on outdated tools like Excel can hinder efficiency and limit strategic insight. By embracing these three trends for EPM solutions in 2025, CFOs can break free from manual spreadsheets, unlock greater value, enhance decision-making, and drive strategic growth across the organization.
1. The office of the CFO is broadening. Performance management is not just a financial exercise anymore
The shift: The role of the CFO is evolving beyond traditional financial oversight, with performance management now extending across the entire organization. CFOs are increasingly taking a strategic leadership role, integrating financial data with operational performance metrics to drive decision-making. This shift means that performance management is no longer solely about balancing budgets or tracking financial results—it’s about aligning people, processes, and technology to optimize overall business performance. EPM systems are adapting to this broader scope, helping organizations link financial goals with operational execution for a more holistic view of performance.
How to evolve in 2025:
- Expand beyond financials & financial metrics: CFOs should use EPM systems to drive planning and actionability based on both financial and operational KPIs, providing a holistic view of organizational performance. If your EPM system is just a data repository for finance, it’s time to expand out.
- Integrate data silos and drive collaboration with business leaders: EPM systems should connect financial, operational, sales, and HR teams to support more informed, cross-functional decision-making. CFOs should use these platforms as a collaboration point to align financial and operational goals with other senior leaders. Gartner calls this move “xP&A,” and it’s about sharing accountability for financial outcomes across all key business leaders.
- Enhance scenario planning & forecasting: Not currently scenario planning? Leverage the modeling features of EPM systems to evaluate potential business changes, adapt to uncertainty, and make data-driven decisions with all stakeholders’ input.
2. Automation, AI, and Machine Learning are your new financial analyst team members—and they’re driving real efficiency gains
The shift: AI, machine learning, and automation are becoming integral members of the finance team, acting as virtual financial analysts that can process large volumes of data with speed and accuracy. These technologies automate routine tasks such as data entry, report generation, and variance analysis, freeing up human resources for more strategic work. Advanced AI and machine learning capabilities offer predictive insights, auto-generate forecasts, and flag anomalies. The result is a more efficient finance team, empowered to make faster, more accurate, and data-driven decisions.
How to evolve in 2025:
- Automate all routine tasks: Leverage performance management/EPM systems to automate time-consuming tasks like data entry, reconciliation, and report commentary generation, freeing up finance teams for higher-value activities.
- Enhance with predictive analytics: Use AI-driven insights within EPM systems to forecast key financials and drivers, identify potential risks, and make proactive adjustments to financial plans.
- Improve data accuracy and speed: Rely on automation capabilities to help detect anomalies, improve data quality, and accelerate financial analysis, driving more timely decision-making.
3. Technology (and EPM systems) have evolved to be more agile and business owned, reducing IT debt and empowering teams to adapt quickly to changing needs
The shift: Older performance management/EPM systems rely on heavily-involved IT overhead, making them rigid and slow to adapt to business needs. Modern solutions, with cloud-based technology and more user-friendly architecture, empower business teams to manage updates and adjustments independently. This shift enables greater agility, faster decision-making, and more alignment with the speed of business.
How to evolve in 2025:
- Assess your current solution & capabilities: Evaluate whether your EPM system is truly agile and enables business users to react to change appropriately, without heavy IT “red tape”. Often, companies can benefit from adopting a newer technology, even if that involves some short-term investment. The key question you should ask is whether your technology can move (close to) the speed of business—to provide agile budgeting, reporting, and analytics.
- Invest in ongoing training and collaboration for better ROI: Ongoing investment in training is essential for driving value with modern EPM systems, as it ensures teams are equipped to fully leverage the tools and work better across departments—ultimately driving better business decision-making.
The evolution of performance management is reshaping how CFOs lead and drive organizational success. By embracing these three trends—broadening the scope of performance management, leveraging AI and automation, and adopting agile, business-driven EPM systems—CFOs can move beyond traditional financial oversight and become strategic enablers of growth. The key to success lies in aligning financial insights with operational goals, empowering teams with modern technology, and fostering collaboration across functions. As 2025 approaches, those who adapt to these changes will position their organizations to thrive in an increasingly dynamic and data-driven business environment.