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Driver-Based Planning: When More Isn’t Better
Topic: Planning
Owner: Paul B Hoch
Date: 2014-07-02
Subtopic: Best Practices

When it comes to EPM planning, companies have traditionally taken a “more is better” approach regarding the level of detail included. With the belief that you can’t manage what you can’t measure, tighter budgets and competition between departments for budget allocation have caused departments to get too mired in the details. This is both time consuming and expensive.
Traditional planning is an annual event, which means it’s typically out-of-date by the time it’s finalized. It also be drain on resources, taking months to complete. In fact, according to the Harvard Business Review, the average Fortune 1000 company spends 1.5 percent of its revenue on forecasting and budgeting activities.
Driver-based planning, on the other hand, is a new approach to EPM planning, and focuses only on the actionable drivers of the business, using standards and averages for details beyond control. With driver-based planning, employees are more nimble and can react to market conditions more quickly. They can also quickly track how things are impacting the bottom line.
It sounds great, so why are so many companies reluctant to make the change? Oftentimes this is a leadership problem —people get too focused on the details because they’re asked for these details by their managers, and are afraid of not having all the answers.
In this session, attendees will learn:
• What is driver-based planning?
• What are some examples and success stories from companies using driver-based planning?
• How do you get leadership on board? How can you successfully “manage up?”
• A step-by-step guide to implementing driver-based planning from the top-down.


Download File   PHoch.Driver-Based Planning.ec.pdf

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