Making Driver-Based Planning & Budgeting Work
For Finance departments to best navigate through the twists and turns of today’s fast moving marketplace, a haphazard, once-a-year budgeting process just doesn’t cut it. For an effective modern finance team to survive and thrive in this environment, it needs to reflect three principles:
- Agility. Quickly analyze how internal or external events will impact financial performance and make a timely and appropriate response.
- Alignment. Timely and on-going collaboration around a consistent set of data so resources and operational capacity are aligned to the latest forecast.
- Accuracy. Planning based on a shared set of assumptions, at an appropriate level of detail that will optimize accuracy.
Driver-based budgeting can be an effective tool to put these principles into action and help you thrive in these uncertain times. But only if you can elevate it from its typical piece-meal, spreadsheet involved exercise. Read on to learn how to make driver-based budgeting and planning work for your organization.