5 ways successful CFOs will drive planning and performance in 2015
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Think you don’t have control of data and its effect on financial performance? Think again. Data volume is growing, data sources are multiplying, and the business environment is more volatile than ever. Leading edge CFOs are leveraging this new information to improve their planning, forecasting, and modeling efforts. They are breaking free from traditional processes and silos in favor of integrated and continuous planning. Could 2015 be the year your organization starts using FP&A to more positively impact your company’s business performance? View the slides from our webinar with Steve Player, managing partner, the Player Group.
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5 ways successful CFOs will drive planning and performance in 2015
- 1. © 2014 Anaplan, Inc. All Rights Reserved. Anaplan Confidential Information Five Ways Successful CFOs Will Drive Planning and Performance in 2015 Presentation slides from the webinar published by CFO.com Anaplan.com
- 2. © 2014 Anaplan, Inc. All Rights Reserved. Anaplan Confidential Information Introductions • Steve Player • Managing Partner, The Player Group • Christopher Schmidt • Editor, CFO • Folia Grace • VP Product Marketing, Anaplan Anaplan.com
- 3. © 2014 Anaplan, Inc. All Rights Reserved. Anaplan Confidential Information What current concerns do CFOs have about planning and performance? Anaplan.com
- 4. © 2014 Anaplan, Inc. All Rights Reserved. Anaplan Confidential Information • Increasing financial market pressure • Uncertain economic times • Changing regulations • Rapidly evolving technology • Complex global footprints • Unpredictable competition Navigating change SHIFT Happens Requires greater planning agility and coordination Anaplan.com
- 5. © 2014 Anaplan, Inc. All Rights Reserved. Anaplan Confidential Information CFO webinar audience poll How predictable is your current business environment as it relates to planning? 0% 10% 20% 30% 40% 50% 60% Highly predictable Predictable Unpredictable Highly unpredictable I don't know 1.7% 55.4% 34.7% 5% 3.3% Series1 Responses received: 121
- 6. © 2014 Anaplan, Inc. All Rights Reserved. Anaplan Confidential Information How can CFOs, transition from traditional budgets and still drive performance? or Anaplan.com
- 7. © 2014 Anaplan, Inc. All Rights Reserved. Anaplan Confidential Information • What ship do we need? • What projects and initiatives are needed to transform? • How do we continue performing while we change? Transformation ©BBRT NA 2014 7 Anaplan.com
- 8. © 2014 Anaplan, Inc. All Rights Reserved. Anaplan Confidential Information 1. Strategic plans 2. Financial plans 3. Rolling forecasts 4. Integrated sales plans 5. Connected operational plans 5 Ways planning can drive better performance Anaplan.com
- 9. © 2014 Anaplan, Inc. All Rights Reserved. Anaplan Confidential Information What is different about planning today? Next generation integrated business planning Plan Execute Measure Analyze Sales Channel Mgmt.HR R&D Plan Execute Measure Analyze Plan Execute Measure Analyze Plan Execute Measure Analyze Plan Execute Measure Analyze Plan Execute Measure Analyze Finance Supply Chain Customer Support Plan Execute Measure Analyze Marketing Plan Execute Measure Analyze Next generation integrated business planning Anaplan.com
- 10. © 2014 Anaplan, Inc. All Rights Reserved. Anaplan Confidential Information “Historically, we’ve done this through a sophisticated spreadsheet process that was rigid in terms of the instant ability to see alternative views on the data. With Anaplan we get an automatic, total view of our trade plans accounts across all customers. David Butcher, Britvic’s Director, Customer Change INTEGRATED BUSINESS PLANNING ” PROFILE Leading European soft drinks company $2b in annual revenues Produces and sells PepsiCo’s soft drink brands Operations in Great Britain, Ireland and France Anaplan.com
- 11. © 2014 Anaplan, Inc. All Rights Reserved. Anaplan Confidential Information CFO webinar audience poll What kind of system does your organization use for planning, budgeting or forecasting? 0% 5% 10% 15% 20% 25% 30% 35% 40% ERP/GL embedded planning module Purpose-built planning tool Spreadsheets Applications and spreadsheets None/no system 15.3% 10.7% 38.2% 32.1% 3.8% Responses received: 131
- 12. © 2014 Anaplan, Inc. All Rights Reserved. Anaplan Confidential Information How can a CFO own performance in such an uncertain operating environment? T E C H N O L O G Y D R I V E R - B A S E D A S S U M P T I O N S MODEL & SCENARIO P L A N C H A N G E MEASURE C H A N G E M O D E L C H A N G E P L A N C H A N G E Anaplan.com
- 13. © 2014 Anaplan, Inc. All Rights Reserved. Anaplan Confidential Information Get where you need to go Plan. Change course. Adapt. THEN NOW Anaplan.com
- 14. © 2014 Anaplan, Inc. All Rights Reserved. Anaplan Confidential Information FINANCIAL PLANNING PROFILE $900M Revenue 250M registered users 6B Stations created “Anaplan is great – really responsive, customer oriented with a deep background in planning. They understand the challenges we’re facing and are able to marry that with their technology to solve them. ”Jared Waterman, Pandora
- 15. © 2014 Anaplan, Inc. All Rights Reserved. Anaplan Confidential Information Audience response to polling question How open is your organization to considering advanced planning approaches? Responses received: 131 0% 5% 10% 15% 20% 25% 30% 35% 40% Very open; we've begun Very open but we haven't begun Still evaluating Concerned about finance basics Not sure 17.4% 22.3% 36.4% 9.1% 14.9% Se
- 16. © 2014 Anaplan, Inc. All Rights Reserved. Anaplan Confidential Information How is cloud computing disrupting the economics of systems costs? Anaplan.com
- 17. © 2014 Anaplan, Inc. All Rights Reserved. Anaplan Confidential Information Why should Finance organizations embrace advanced planning approaches? FINANCE HRIT SALESOPERATIONS Anaplan.com
- 18. © 2014 Anaplan, Inc. All Rights Reserved. Anaplan Confidential Information “Through using Anaplan we have a more agile and efficient planning process. Darren Craddock, Director of Planning and Forecasting ”FINANCIAL PLANNING PROFILE UK’s largest general insurance provider 27K+ employees 30M+ customers Anaplan.com
- 19. © 2014 Anaplan, Inc. All Rights Reserved. Anaplan Confidential Information 04/03/2015 19 © 2014 Anaplan, Inc. All Rights Reserved. Anaplan Confidential Information ANAPLAN: THE PLANNING CLOUD FINANCEHR WORKDAYSAPSALESFORCE ORACLE NETSUITE OTHER IT MARKETING SALES OPERATIONS • What-if Analysis • In-Memory Processing • Model to Model Integration • Role-Based Access • Single Source of Planning Truth Anaplan.com
- 20. © 2014 Anaplan, Inc. All Rights Reserved. Anaplan Confidential Information Account Reconciliation Budgeting Deal Desk Trade & Promotion Planning Cost & Profitability Analytics SKU Level Forecasting Incentive Comp Commissions & Crediting Territory and Quota Planning & Mgmt. Sales & Operations Planning Financial Consolidation OPERATIONS FINANCE HR Integrated Business Planning Strategic Workforce Planning Project Resource Planning SALES Anaplan.com
- 21. © 2014 Anaplan, Inc. All Rights Reserved. Anaplan Confidential Information Five ways successful CFOs will drive planning and performance in 2015 Anaplan.com Learn more at anaplan.com
Editor's Notes
- A: As expected they are focused on helping their organization achieve outstanding performance. But the environment they are operating in is characterized by extreme validity. As they plan they must deal with: Widely fluctuating commodity prices i.e. Oil price dropping by 2/3s. How long will it stay below $50 per barrel? What does it mean to your organization. b. Shifting governmental environments that can dramatically shift opportunity into threats and vice versa. c. Rapidly evolving technologies filled with changes that can disrupt entire value streams. i. e. Uber disrupting the taxi industry i. e. Amazon wiping out book stores (Barnes & Noble to the neighborhood store) and now moving on to most retail categories i.e. most postal services are steadily declining These rapid changes point out the difficulty in relying on traditional annual budgets. These have become exercises in negotiation. That is one of the biggest changes we see in finance is the elimination of annual budgets as CFOs move to using relative targets, rolling forecasts, and a continuous planning environment.
- Question: What are those 5 ways? Answer: We find CFOs who are… Starting with an integrated strategic plan that provides a clear articulation of the strategic goals and the strategic action plans to reach those goals. They still do financial planning with periodic forecasts in place of budgets but are now able to create fully integrated enterprise plans that include: Consolidations Reporting and analysis Cash flow planning Balance sheets and monitoring of debt covenants. Advanced rolling forecasts which keep management focused on closing the gap to strategic objectives Detailed sales planning the tracks demand generations and includes Territory planning Commission planning and calculations Linkage back to operational planning which includes: Work force/ head count planning Capacity planning
- Q: Many of these elements have been appearing in the news. What is it that CFOs find and do differently to be successful in 2015? A: The biggest difference in the fact that these needs are being address by fully integrated software that includes and automatically links all these elements. In the past, finance would cobble together a series of Excel spreadsheets. The control environment was weak and collaboration meant email, phone calls, and hope that the other parties used the template version. Finance could own the resulting output but it carried huge potential risks. By moving these processes into an integrated system, you can still own your data, own your process, and own your results. But now that is taking place in an integrated environment.
- https://www.anaplan.com/press-releases/britvic-selects-anaplan-to-support-improved-planing-execution-and-evaluation/ CHALLENGES Assess trade terms for GB customers to determine our business plans and investments Complex spreadsheet managed these business plans Changes wouldn’t be immediate and could affect the executing our commercial strategy Inability to see alternative views on the data SOLUTION Replaced complicated spreadsheets with Anaplan RESULTS A layer of improvement to Britvic’s trade planning process, ensuring greater alignment between Britvic’s commercial strategy and the trade agreements established with its customers In-memory HyperBlockTM calculation engine that delivers unparalleled immediacy, flexibility and scale
- Q: Ownership and accountability are key themes to empowering the organization to achieve optimal performance. But how can a CFO and his or her Finance organization own performance when they face such an uncertain operating environment as you discussed earlier? A: That is where technology can really help. With the planning systems available today, finance organizations can produce light touch driver-based forecasts that leverage the latest assumptions of what the future can hold. But finance can also produce a series of scenario plans that examine what actions should be taken if those assumptions come in stronger or weaker than anticipated. Many organizations are even planning beyond the realm of likely occurrences to identify contingency plans should oil drop even further (down to even $10 per barrel – which it expectantly did back in 1986). Whether this is a positive scenario or a negative one depends on whether you are an oil producer or consumer. Having a plan for these creates what we call a “future ready” organization. Your organization needs modeling that is continuously available to robustly handle diverse needs. Today’s systems should be capable of changing with your changing business needs.
- CHALLENGES Rapidly growing company and market Data Feeds from Disparate Systems Corporate Philosophy to leverage cloud based solutions SOLUTION Complete FP&A solution: long range planning, monthly reporting, financial reports, and workforce planning in an integrated workspace Team trained in 2 days on platform features and tools Anaplan Connect: ETL tool to load data from external systems RESULTS Increased collaboration across departments with Cloud based solution 100% business self-service where users, not IT or consultants, manage development Easily able to expand toolset to coincide with growth of company and market
- Q: One key topic we hear a lot about is cloud computing and how that is disrupting the economics of systems costs. How does cloud computing impact these decisions? A: As you point out, cloud computing is disrupting the software industry. The cloud is seen: - as faster in implement, - lower cost, - easier, quicker, and cheaper to upgrade - more flexible to use in varying operating environments - requiring less IT support - and many other power selling points. Its main concerns of security are being addressed rapidly and successfully in many cases. While the recent data thefts at Target and others have raised cyber-security questions, the move toward the clouds continues. I would caution large and growing organizations that you need to get you IT resources involved in helping plan an evaluate cloud decisions. Information access and related security questions are complex and require knowledge of how your systems will interact. So partner with IT. Those are risks that you want to jointly own.
- Q: Why do you think Finance organizations are so quick to embrace these advanced planning approaches? A: Frankly, we in Finance are “tired of doing dumb stuff.” We can eliminate sand-bagging and stop pointless rounds of negotiating the lowest acceptable return. By pushing down into sales planning and operational planning we can help develop the tactics needed to achieve the strategic objectives. Operational managers and sales leaders become key adopters when they see their business problems mapped into model that allows them to evaluate multiple approaches and helps them decide which are most likely to succeed (these systems even track the key measures of that monitor that success).
- https://www.anaplan.com/customers/aviva-casestudy/ CHALLENGES Lacked agility to build scenarios quickly and deal with multiple versions Current planning tool based on financial reporting entities was unable to easily mirror their new segmentation approach into “cells” SOLUTION Single data source across businesses ensures financial control and speedy aggregation of group view Quickly build scenarios, manage multiple versions and create customized reporting hierarchies with easy to use front-end Rapid collaborative roll-out and training enables seamless transition RESULTS Time to consolidate the plan numbers reduced from one week to one day Cloud-based process connects business units in real time enabling a faster, more efficient and collaborative planning process without compromising accuracy Reduced planning and forecasting cycle by 4-6 weeks
- It is possible, and here’s why. At Anaplan, we designed a new way to empower enterprises to manage your unstoppable planning needs. With Anaplan, you can plan for any aspect of your business, and bring it all together to see the complete, big picture. From Trade and promotions planning to quota optimization in Sales, from annual budgeting to rolling forecasting in Finance, from demand planning in operations to headcount planning across it all. Anaplan empowers you to model potential impacts and course correct on the fly for the best outcome Unlike legacy systems, Anaplan was built from the ground up to run at hyper-speed to meet today’s growing performance needs. With Anaplan you can have confidence your growing data can all be handled without slowing up the whole process. With Anaplan’s in-memory platform you can plan, execute and continually optimize the way you do business. OLDER NOTES: From evaluating acquisitions to changing pipelines to team changes, . With just a few clicks and no IT intervention, you can see changes instantly ripple through your connected plans to reveal the impact across your business.
- Objective: Dive into Anaplan’s unique value proposition across the enterprise. Talk Track: Anaplan has enabled companies across the globe to solve for key challenges across their organizations from sales to finance to operations and more. We are purpose-built to manage massive volumes of data, high degrees of model & process complexity while enabling large numbers of people to collaborate on a single source of truth. Bottom Line: Anaplan is unparalleled in its ability to solve the challenges of large scale organizations. One of the most important things to understand about Anaplan is that it is a planning and modeling platform. There are applications from both Anaplan and our partners that solve specific problems, like Anaplan’s Financial Consolidation app or Deloitte’s Tax & Transfer Pricing app. But the Anaplan platform can be used to plan and model just about anything, like the use cases we see here in Finance, Sales, Operations, and HR. Let’s look at how some of our customers are using Anaplan. Hewlett Packard uses Anaplan to optimize their territory and quota plans for their entire sales force. 20K reps, 30K on commission, 3500 sales managers. They had done it before in Excel; 300 cascading spreadsheets. They didn’t know their deployed quota until the 2nd quarter. Now they have a single, living plan and know their deployed quota on day 1. Kimberly Clark started using Anaplan in Eastern Europe and is now moving toward using Anaplan for integrated business planning across the enterprise. Diageo is one of Anaplan’s earliest major customers. They started using Anaplan to plan and optimize their trade promotions in the US, and now have deployed more than 30 apps and models on Anaplan, doing everything from Demand Planning for their SAP backend, to pricing optimization across their brands and SKUs. So, what’s the common thread? These are all critical business problems that involve a lot of business users collaborating around the numbers that drive your business forward, whether those are sales, financial, or operational plans. Instead of doing hundreds or thousands of one-off, error-prone spreadsheet exercises, your teams can bring in whatever data they need and plan, model, and collaborate around numbers they can have absolute confidence in.
- Strategy does not create value. Data itself does not create value; only decisions and action create value. That is what planning is. A cascade of decisions and actions that create value. Anaplan has reinvented planning for the modern enterprise, allowing you to plan, collaborate, and act in real time.