How AI Is Changing Performance Management

Prescriptive baselines and AI agents can help solve common problems, allowing leaders to apply human talent where it adds the most value.
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Eras of progress often begin with a question: What if we could think and act faster? Writing answered this by preserving ideas beyond peoples’ individual memory. The assembly line answered it by multiplying human effort at scale. Spreadsheet apps answered it by giving every analyst superpowers at their fingertips. Today, AI is starting to answer it again—this time, by helping transform how organizations plan, decide, adapt, and execute.

The future of performance management likely won’t be defined by complexity, but by clarity: Prescriptive baselines, inquisitive engagement, and AI that works like new heads on the team, freeing human energy for the decisions that matter most.

The next chapter in performance management isn’t about building clever models—it’s about institutionalizing better decisions, faster.

How Performance Management Became a Discipline of Solved Problems

As James Straton, CEO of Keyrus EPM Americas, puts it, “These are solved problems.” Financial forecasting, inventory and demand balancing, sales capacity, and territory optimization, to name a few. For these performance management concerns and many more, leaders expect prescriptions with baselines, industry benchmarks, and data adapters that configure quickly so their teams can focus on what’s truly unique about their business.

This shift changes the role of partners. It’s no longer about celebrating bespoke complexity and being able to handle any nuance. It’s about compressing time-to-value and managing change at scale. Connected planning platforms now offer configurable accelerators and modular data taxonomies that can slot into companies’ architecture across finance, supply chain, sales, and workforce, so that teams can converge on one version of truth and potentially operate on faster cycles. The craft hasn’t disappeared; it’s being refocused: Less architecture brilliance, more enablement, adoption, and governance.

The baseline is ready. The hard part is preparing organizations to use them.

Balancing Prescription With Curiosity

There’s a potential trap in this prescriptive era, however: Assuming a template is the strategy. High-performing leaders often insist on prescriptive and inquisitive, in that order. They often ask partners to show up with a point of view (the 80 percent that’s proven) and then interrogate context (the 20 percent that differentiates).

The result is a pragmatic rhythm: Start from a standard (what good looks like across finance, sales, supply chain, and workforce). Probe for variance (distinguish between best practice and best fit, ensuring prescriptions are adapted to the company’s context, priorities, and constraints). Codify what’s unique (KPIs, workflows, scenario thresholds, stakeholders). Harden change management (roles, data controls, and decision rights).

This balances speed with specificity, and it’s how organizations move from pilots to institutional capability.

AI as an Extension of Human Teams

Straton captured the current mood: “We’re not cutting heads, we’re adding heads with AI.”

Think of AI as specialized team members embedded in your planning environment: Insight agents that surface anomalies, trends, and margin risks in line with plans. Forecasting agents that blend traditional time-series with causal drivers from supply, demand, and workforce signals. Recommendation agents that propose actions (shift mixing, re-allocating capacity, adjusting quotas) with explainable rationale and impact estimates.

Crucially, these agents must be governed by people—with lineage, scenario approvals, and auditable justification—so CFOs, COOs, and CROs can defend decisions to boards and regulators. The aim isn’t a lights-out enterprise; it’s like a well-lit cockpit where humans remain accountable while AI does the heavy lifting.

AI shouldn’t eliminate heads; it should give every head more reach.

Three Imperatives for Leaders

Embrace prescription where it’s proven. Don’t spend months re-inventing OPEX or inventory planning because you have always done it in a unique manner. Adopt configurable baselines and industry-calibrated assumptions, then invest your scarce talent in the exceptions—your unique demand drivers, service levels, or pricing power.

Govern AI to earn trust. Demand explainability (what signals informed a recommendation), scenario guardrails (who can approve changes and when), and data lineage. Embed policies into the planning layer so AI is accountable by design, not by afterthought.

Build an adaptive organization. Shorten cycles. Co-locate finance, supply chain, sales, and workforce planning on a single, connected platform so scenarios can potentially reconcile in hours, not quarters. Upskill planners from model builders to decision facilitators. Incentivize behaviors that reward cross-functional trade-offs (service, cost, cash) rather than siloed optimization.

Planning for What Comes Next

Annual budgets are giving way to rolling, event-driven planning. The planning system isn’t a tool; it’s a capability: Prescriptive baselines to start, inquisitive discovery to differentiate, and AI agents to extend human judgment. The outcome is not more dashboards; it’s better decisions with fewer meetings.

Most leaders in finance, sales operations, workforce, and supply chain are converging on the same conclusion: When the common problems are solved up-front, human energy can be freed for the uncommon ones. That is where value can be created, and where we could find our next great innovation.

See how Keyrus Global EPM helps leaders solve common problems, and focus human ingenuity where it matters most. Find out more with Keyrus.

By James Straton, CEO, Keyrus EPM Americas