Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals

Driver-based Budgeting and Planning: Agility, Predictability, and Alignment

• Understand myths versus realities in the realm of driver-based budgeting and planning

• Identify operational activities that impact your company’s performance

• Leverage existing budget contributors and operational data to help deliver driver-based budgeting and planning

• Understand the 5 key components of the value proposition for driver-based budgeting and planning

Learning Objectives

After attending this event you will be able to:

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Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals

Driver-based Budgeting and Planning: Agility, Predictability, and AlignmentPaul Hamerman, Vice President and Principal Analyst, Forrester Research Inc.

Anaplan Webinar:

Making Driver-Based Planning & Budgeting Work

Paul Hamerman, Vice President and Principal Analyst

Forrester Research, Inc.October 2, 2014

© 2014 Forrester Research, Inc. Reproduction Prohibited 6

Agenda

›Finance planning processes need to adapt to a more agile business environment

›Technology enables planning to reach new levels of agility

Finance will gain speed, insight, and business flexibility from next-generation planning systems.

© 2012 Forrester Research, Inc. Reproduction Prohibited

Financial processes span all three time dimensions

September 2013 “The Forrester Wave™: Financial Performance Management, Q3 2013”

© 2014 Forrester Research, Inc. Reproduction Prohibited 9

Growth-oriented companies are shifting toward customer-centric finance

Process Traditional focus Customer-centric focus

Planning and forecasting

Control expenditures via budgeting

Forecast revenue and allocate resources

Cost and profitability analysis

Product-based cost and variance analysis

Customer profitability and lifetime value

Performance measurement

Operational efficiency Revenue per customer, retention, growth

External financial reporting

Profits drive shareholder value

Growth drives shareholder value

Cash and treasury management

Hoard cash and liquid investments

Invest in growth via sales, acquisitions and R&D

Revenue streams Transactional Recurring

Source: Forrsights Software Survey, Q4 2013

Companies of all sizes invest in planning, budgeting and forecasting software

Not interested

Interested but no plans

Planning to implement in a year or more

Planning to implement in the next 12 months

Implemented, not expanding

Expanding/ upgrading implementation

Don't know

9%

12%

12%

9%

33%

23%

3%

5%

8%

6%

12%

36%

28%

6%

Base: 1,811 at companies with 20 or more employees

>1000 employees< 1000 employees

What are your plans to adopt the following packaged applications (Planning, budgeting and forecasting):

Worst to first: reset your planning and forecasting processesChallenges

› Business and market volatility makes forecasting difficult

› Budgeting eats up months of time and effort

› Spreadsheets are the answer to any question

› Plans and budgets are control-based and not clearly linked to business drivers

Best practices

› Collaborate across lines of business

› Iterate planning models continuously

› Link plans to business strategies

› Build predictive models

› Use external data to drive highly scalable planning models

Thank you for your interest in this presentation. View the on-demand webinar or download the full

presentation at:www.Proformative.com

Driver-based Budgeting and Planning: Agility, Predictability, and Alignment