When an Enterprise Performance Management (EPM) solution is deployed, the primary focus is on the project's success, and its ability to meet business needs. However, to guarantee sustainability and maximize return on investment, one lever is all too often underestimated: governance.
In an environment where connected planning unites numerous departments around a single platform, governance becomes essential to avoid a return to silos. This is where the Center of Excellence (CoE) comes in, a cross-functional structure that combines expertise, coordination and long-term vision.
Deciphering a model that transforms complexity into shared value.
The Center of Excellence: a concept born in the 80s
The concept has its roots in Lean management, a continuous improvement approach developed in the 1980s, based on process standardization, skills enhancement, value maximization and organizational learning. Transposed to the IT world, the principles have been adopted in various forms (Lean IT, Agile, DevOps etc.) with the aim of accelerating development cycles and fostering collaboration. The notion of Center of Excellence is part of this heritage, and can be defined as an organizational structure dedicated to process optimization, innovation and continuous improvement.
Steering, harmonizing and driving progress: the triple mission of the Center of Excellence
First and foremost, the CoE is responsible for the functional governance of the solution.
In the context of an EPM platform, he will initially seek to stabilize an initial application and facilitate its adoption by users. He then takes on the role of referent in terms of best practices and standardization, and promotes the development of internal skills among employees.
As use cases multiply, the CoE ensures that processes are consistent with each other and with the company's strategic objectives.
In particular, it ensures the uniqueness of data and repositories, the harmonization of business methods, and the optimization of system architecture and performance.
Centralizing and disseminating best practices
As a reference point for documentation and knowledge capitalization, the CoE steers employee training and acculturation to new technologies, encourages the multiplication of use cases, and networks experts and business teams to promote the sharing of experience.
"Fail fast, fail small, learn quickly".
The CoE encourages rapid experimentation. It develops small-scale Proofs of Concept (POC) to test innovations before generalizing them. This approach reduces risks and costs by identifying technical and functional challenges upstream, and facilitates stakeholder buy-in thanks to its ability to demonstrate the project's benefits. It also optimizes budget allocation by avoiding massive investment in an unviable solution.
Setting up a CoE - Start small, think big
There are several levels of CoE maturity, and it is possible to take a pragmatic approach to its implementation, adopting an evolutionary approach adapted to the use of the solution over time.
Rather than aiming for a complete committee from the outset, we recommend adopting an agile, evolutionary approach, focusing on a gradual ramp-up in order to rapidly create value, while preparing for a later extension. Rapid deployment is favored, initially focusing on priority missions (governance, training, support), then gradually extending the scope as usage evolves.
Centralized, decentralized, hybrid: which model for a CoE?
Different types of organization can be envisaged, each with its advantages and disadvantages.
With a centralized approach, the CoE is managed by a single team and acts as a central authority that oversees and controls all initiatives related to its field. Steering, training and expertise are brought together at a single point, ensuring strategic coherence, standardization of practices and pooling of resources. However, it may lack the flexibility to respond to local specificities, and slow down the adoption of initiatives.
Conversely, a decentralized approach distributes governance across several teams or departments, leaving a degree of autonomy where each entity can adapt practices to suit its specific needs. Decision-making is more local, encouraging the adoption and involvement of teams and offering greater flexibility and responsiveness, but can present risks of inconsistency and make sharing best practices more complex.
Many organizations also opt for a hybrid governance approach, with a central framework guaranteeing standards, and decentralized implementation enabling each entity to adapt these standards to its own needs.
The organization of the CoE can evolve over time: a centralized model can gradually open up to hybrid governance, as use cases multiply. The choice depends on the size and culture of the company, with the constant aim of maximizing impact without losing agility. Beware, however, of excessive decentralization, which could weaken the effectiveness of the CoE.
Key roles in a CoE
The composition of a CoE varies according to the m ode of organization, but should reflect the use of the platform. If the first use case only concerns a restricted perimeter, the CoE can start with a limited number of members, then expand at a later stage. A high-performance Center of Excellence generally includes: an organization code, but must reflect the use of the platform. If the first use case only concerns a restricted perimeter, the CoE can start on a limited basis and then expand at a later date. A high-performance Center of Excellence generally includes :
- Executive sponsorship through the support of top management to legitimize the initiative and ensure its alignment with strategic objectives.
- A dedicated team with business representatives to ensure functional consistency, and technical experts to maintain and upgrade solutions.
- A project manager to coordinate and monitor initiatives.
- Cross-functional partnerships, in close collaboration with IT teams in particular, to facilitate interdisciplinary collaboration and ensure the adoption of practices.
The CoE must not become another bureaucratic body. It must be agile and autonomous, adapting quickly to user needs and becoming a genuine strategic partner.
CoE, a catalyst for value
The CoE plays a central role in ensuring the long-term viability of EPM platforms, by ensuring their ongoing adaptation to changes in the company and its uses. By aligning business processes and technological innovations, the CoE maximizes the efficiency of the tools, while facilitating their adoption by the teams. Structured around a dedicated, agile team, it becomes a real lever for innovation, guaranteeing the coherence and lasting value of the solution. By reinforcing agility and stimulating innovation through consistent management, the CoE becomes a catalyst for the value of EPM platforms.
