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Planning, Budgeting & Forecasting

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External forces challenge existing business models and induce changes in companies' operating and steering models. As a consequence, corporate planning is challenged by new needs and possibilities.

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Planning, Budgeting & Forecasting

  1. 1. Planning, Budgeting & Forecasting A BearingPoint Accelerator External forces challenge existing business models and induce changes in companies’ operating and steering models. As a consequence, corporate planning is challenged by new needs and possibilities. >
  2. 2. Planning, Budgeting & Forecasting | A BearingPoint Accelerator Contents Market Drivers Our Approach Client Benefits References Contact CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< >
  3. 3. Planning, Budgeting & Forecasting | A BearingPoint Accelerator Market Drivers Trends induce technology and market drivers that create challenges for trusted and efficient corporate planning CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< > Change of business models Redefinition of operating & steering models Adaptation of controlling, planning & reporting models Increase of available & processable data Decrease of media discontinuities Closer integration of transactional & BI based data Trusted and efficient corporate planning Competition Sustainability Regulations Digitalization Challenges Technological Drivers Market DriversTrends Need Potential
  4. 4. Planning, Budgeting & Forecasting | A BearingPoint Accelerator Scope of planning Application of analysis clusters Identification of issues Definition and detailing of options Evaluation of options Classification of approaches based on dynamic & complexity Our Approach In six stages, we perform the optimization and design of planning processes with a holistic and company-specific approach CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< > ISolution options are evaluated and final planning solutions are implemented Characteristics and options per solution design topic are determined Planning topics are identified and positioned in a matrix Relevant planning occasions and sub plans are determined Approaches to optimize corporate planning are identified and categorized Pain points are clustered based on the analysis dimensions Trusted and efficient corporate planning II IIIIV V VI
  5. 5. Planning, Budgeting & Forecasting | A BearingPoint Accelerator Our Approach The analysis is based on four dimensions; the subsequent optimization is performed with regards to the steering relevance, validity, efficiency, and flexibility that represent top management specific requirements CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< > Planning Content • Is the steering relevant management information the focus of the planning process? • Are planning occasions, planning horizon, and planning frequency defined? • Are steering relevant KPIs assigned to planning approaches? • Is the granularity of the planning output defined? • Is the granularity of the planning input defined? Planning Methodology • Should the planning methodology focus on steering the portfolio in a finance-focused planning approach (are cost units supplemented by statistical information)? • Should the planning methodology focus on the operational steering in an integrated planning approach (are cost units oriented operative planning derived out of financial planning)? • Can influence driver and initiatives improve the current planning quality, as well as increase commitment or efficiency?Support • Are the requirements for a supportive IT solution defined? • Are the fundamental frameworks for an IT solution defined? • Is the strategy to support the IT solution defined? • Can the current or future process be conducted with the current personnel? • Which organizational changes can be made to increase efficiency? Planning Process • Are centralized and decentralized planning contents defined? • Are the interfaces between strategy and planning processes defined? • Are the amount and sequence of management discussions defined? • Are the references and interfaces between the different segment plans and planning occasions defined? Steering relevance Flexibility Efficiency Validity Planning Content Planning M ethodology Planning Process Support
  6. 6. Planning, Budgeting & Forecasting | A BearingPoint Accelerator CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< > Client Benefits The trade-off between efficiency and three dimensions of effectiveness is solved depending on the company’s specific motives, drivers and preferences Efficiency = Results of corporate planning are the best possible with the given amount of internal and external resources • Short planning cycles • Reduction of vertical & horizontal coordination cycles • Planning automation Steering relevance = Planning orientation on control and the possibility to influence • Focus on value-relevant planning contents & units support decision making • Full integration of all sub plans facilitates a target oriented planning process • Planning based on value drivers and KPIs Flexibility = Capability of being adjusted to meet varied planning requirements or assumptions • Calculation of versions & “total scenarios” • Scenarios including risks, chances & measures • More frequent planning, monthly & rolling forecast Validity = The extent to which corporate planning is well-founded and corresponds accurately to the real world • Accuracy & consistency of planned figures • Integration of planning occasions & units • Technological integration Steering relevance Flexibility Efficiency Validity Planning Content Planning M ethodology Planning Process Support
  7. 7. Planning, Budgeting & Forecasting | A BearingPoint Accelerator References Our client is one of the biggest airlines in the world and consists, besides their regular airline business, of aviation services operating in catering, logistics, and maintenance CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< > Challenges • Fierce competition, mainly created by low cost carriers and gulf airlines • Reorganization of structure within the Client organization along a functional orientation towards processes • Change of operating and steering models without precise definition of new business structures • Lack of integrative planning approaches among business units and processes • Low degree of harmonization of planning approaches and processes within the group business units Approach • Analysis of current planning processes and methods within the different business units • Generation of a high-level concept and planning manual • Precise definition of the new operating, steering and planning models • Development of an integrated and harmonized planning approach along the client's matrix • Evaluation and selection of innovative planning & reporting software using critera catalogs Results • Harmonized & integrative planning approach across relevant business units • Enabling of coordination between process owners and business units • Integration of business units and processes in the client's matrix • State of the art planning & reporting tool allowing for the neat integration of transactional and planning data
  8. 8. Planning, Budgeting & Forecasting | A BearingPoint Accelerator References Our client is a leading railway company with revenues of over €8 billion. BearingPoint took the role of strategic partner, controlling the whole project within the divisions and corporate division CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< > Challenges • Liberalization and increase of competition in a highly complex railway system • High complexity of the controlling model due to the integrated train business • High number of shadow processes • Long lead time of strategy: long term, mid term and budget planning up to 2 months • Lack of quality and consistency of corporate planning Approach • Inclusion and optimization of planning and consolidation processes • Implementation of a business-partner-role to improve efficiency and decision quality • Transforming business requirements into business blueprint • Development of prototypes to compare business requirements and IT functionalities Results • Planning arises along business processes, focusing on major factors by using value driver models • Replacement of time consuming object-based detail planning by deriving financial planning through business logic to increase efficiency • Planning granularity is oriented towards the objects and requirements of the planning horizon whereby for each planning horizon (budget, MUP, LFP), steering relevant factors are changeable • Reduction of lead time, measurable increase of effectiveness and efficiency of planning and consolidation
  9. 9. Planning, Budgeting & Forecasting | A BearingPoint Accelerator Contact About BearingPoint BearingPoint consultants understand that the world of business changes constantly and that the resulting complexities demand intelligent and adaptive solutions. Our clients, whether in commercial or financial industries or in government, experience real results when they work with us. We combine industry, operational and technology skills with relevant proprietary and other assets in order to tailor solutions for each client’s individual challenges. This adaptive approach is at the heart of our culture and has led to long-standing relationships with many of the world’s leading companies and organizations. Our global consulting network of 9,700 people serves clients in more than 70 countries and engages with them for measurable results and long-lasting success. For more information, please visit: www.bearingpoint.com © 2017 BearingPoint. All rights reserved Stefani Rahmel Partner BearingPoint Germany stefani.rahmel@bearingpoint.com CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< Dr. Frank Tiefenbeck Senior Manager BearingPoint Germany frank.tiefenbeck@bearingpoint.com

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