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Planning, Budgeting and Forecasting transformation
Planning, Budgeting and Forecasting transformation in a global financial services company
Our client in the financial services industry has set-up a finance strategy plan to strengthen the role of the Finance function for the coming years.
Having the ambition to grow the finance function into a “Business Partner” / “Informed Challenger” of operating units/divisions, our client expressed a need to
- Increase the effectiveness and efficiency of the Planning, Budgeting and Forecasting processes (PBF), both for Finance and its stakeholders, and to reinforce the control mechanisms for Finance.
- Enable a deep and precise cost & profitability analysis of business units through a transparent, recharge of the corporate costs based on 5 principles: Simplicity, Transparency, Predictability , Repeatability and Controllability.
- Build a model to plan, budget and forecast its revenues & cost in order to perform simulations, scenario-analysis on a full scope P&L
Deloitte helped the client with the functional design of:
- Review and clarify the Business Governance rules of PBF in line with current EOC operating model and corporate governance
- Define new PBF Process Governance and clarify who does what, when Deloitte implemented successfully an integrated PBF model in TM1 9.5 thanks to our ‘what you see is what you get’ methodology: we continuously provided our client with a proof of concept model while gathering requirements. This enabled us to keep the momentum of change alive by including project stakeholders from the start of the project in the technological progress of the development.
Following integrated models were built in TM1 9.5
- One companywide P&L consolidation model
- One driver-based payroll model
- Two driver-based revenue models, enabling on-the-fly simulation integrated
- One companywide Chargeback model, supporting the quarterly demand management process
- Faster and more regular forecasting
- Saving of 1 FTE within finance department, 1 FTE outside the finance Department
- Disciplining effect on all stakeholders (strong standardization and integration)
- The decrease of the PBF cycle (e.g. reduction of the elapse time of the budget cycle by one month)
- Automated version management and audit trail
- Powerful process control through workflow management
- Clear communication towards all stakeholders about targets, deadlines, calendar, process steps and assumptions
- Possibility to simulate drivers of costs & revenues on the fly