Planning, Budgeting & Forecasting

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Planning, Budgeting & Forecasting

PB&F

PB&F is the process that normally receives the most complaints and criticism through and organization, especially from outside the finance function.

Drivers of Change

 
  • Recent M&A drive reorganisation
  • Incoming CEO/CFO challenges effectiveness of processes
  • Business Partner dissatisfaction
  • Cost vs. benefit ratio of PB&F is not transparent to the entire organisation
  • Symptoms of a dysfunctional Process

Common Symptoms

  • Too early, too long
  • Collects financial results, not performance drivers
  • Provides limited insight to future Lack of “what-if” analysis
  • Degrades throughout the year with blind spot for next year 
  • Duplicate governance Processes (e.g. Headcount)
  • Reconciliation issues across the matrix: legal entity vs. management unit

Benefits and outcomes

  • Achievement of organisation’s ambitions against PBF maturity model 
  • PBF is the clear driver of the strategy into the operations Causes of PBF variances transparent to organisation
  • PBF produces actionable insights for management
  • Greater alignment of performance and accountability
  • Increased transparency, timeliness and relevance of performance driver reporting
  • PBF analysis in integrated across functions and business unit
  • Optimised usage of time and resources across organisation
  • Minimal version iterations enabled by scenario modeling
  • Clearly documented processes with appropriate workflow and controls