Business performance management (the concept) continues to enjoy its status as the hottest business strategy and technology application of the new millennium. Although corporate spending on BPM products and services is currently relatively small, the market is expected to grow fast. Most surveys show that only around 5 percent of companies with more than $100 million in annual revenue have fully implemented BPM and that significant numbers plan to invest in it over the next two years.

Vendors and consulting firms keen to exploit the trend are acquiring expertise and positioning their offerings to meet projected demand. Because the BPM market is loosely defined and quantified, encompassing a growing array of solutions (if vendor claims are to be believed) ranging from budgeting and planning to business intelligence and data management to enterprise application integration and business process management, it's no wonder BPM implementations are expected to grow dramatically over the next few years. Even though every analyst and consulting firm has a different spin on what comprises performance management, they all agree that businesses need to invest in it.

The complexity of choosing product and service providers -- already challenging because the young market lacks standards and established best practices -- is exaggerated as the playing field becomes increasingly crowded. Craig Schiff, of BPM Partners, sorts through the rhetoric by providing an insider's perspective on how to optimize BPM investments, in terms of both dollars and time spent, as well as how to maximize the performance improvements a project achieves. Schiff and his team have also helped Business Performance Management compile our second annual BPM Consulting Guide, which delves into 48 consulting firms' areas of expertise, levels of experience, and other differentiating characteristics.

Brian Hartlen, of Geac, further helps BPM purchasers improve their initiative's outcome by focusing on three misconceptions that commonly derail implementations. A recent Geac survey reveals that Walt Kelly's famous Pogo adage -- "We have met the enemy and he is us" -- applies to BPM initiatives: Companies want to invest in BPM but expect politics to be their biggest barrier to success. Firms that consider BPM to be a technology-driven initiative, project managers who expect automatic support for the implementation, and teams that assume the project will be final as soon as the systems and software are installed need to rethink their faith in these myths right away.

The BPM processes most organizations tackle first are budgeting and planning, and for good reason. Most executives report that, instead of providing insight into the business, budgeting and planning processes today are hindering the integration of strategic and tactical management. In this issue, Robert D. Kugel, of Ventana Research, shares results from his company's recent study on why and how companies are improving their budgeting and planning. In addition, he examines the factors that are preventing companies from being more effective in this critical area and provides his perspective on the best approaches to implementing new systems.

Once their pilot BPM initiatives are established, companies need to be ready to take BPM a step further. ITEC Consulting's Chris Iervolino explores best practices for consolidation and reporting software upgrades and outlines a way to ensure these systems' data is accurate -- an imperative in today's highly regulated business environment.

Companies seeking even greater gains can extend performance management disciplines from budgeting and reporting into CRM, human resources, the supply chain, and many more areas of the enterprise. However, doing so efficiently and cost-effectively can pose substantial challenges. David F. Giannetto, of Cohn Consulting Group, illustrates the benefits organizations can achieve by layering BPM solutions on top of technology they already own.

If you have other ideas about how to improve project success rates -- so that growth in the BPM market is measured not only by systems sold, but also by successful implementations -- we'd like to hear them.

David Blansfield is editorial director and publisher of Business Performance Management and chair of the BPM Summit. You can reach him at dblansfield@penton.com.