Finit Solutions Webinar Driver Based Forecasting
-
Upload
carla-cwiertnia -
Category
Documents
-
view
103 -
download
0
Transcript of Finit Solutions Webinar Driver Based Forecasting
![Page 1: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/1.jpg)
Driver Based Forecasting
February 12, 2016
Carla Cwiertnia
©2016
![Page 2: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/2.jpg)
Finit EPM Services
Page 2
Full Cycle Implementations
Upgrades
Dedicated Support
![Page 3: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/3.jpg)
Why is Finit here?
Page 3
Finit takes pride in being a company of makers and Doers; people who dig in and get their hands dirty
We make and deliver personalized financial reporting solutions and experiences
…Not Company to Company, but Person
to Person
By listening, questioning, and
analyzing
![Page 4: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/4.jpg)
The Finit Family
Page 4
Fully aligned with our clients, not just bottom line $
No debt or external ownership
Work with Finit employees, no subcontractors
Compensation based on CLIENT SATISFACTION
PRIVATELY OWNED
CLIENT SATSIFACTION
NOSUBCONTRAC
TORSDEBT FREE
![Page 5: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/5.jpg)
Finit Values
Page 5
Our values on which we ask you to provide consultant feedback:
• Approach & Collaboration
• Integrity & Honesty
• Client Betterment
• Self Betterment
• Colleague Betterment
• Finit Betterment
• Work Effectiveness
• Impact & Innovation• Proactiveness
& Passion
Service Solutions Betterment
![Page 6: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/6.jpg)
Finit Customer Success
Page 6
Our values, culture, and approach to becoming a trusted advisor to our
customers has led to100% customer success
for every Finit client (250+) and for every Oracle Hyperion project (500+)
![Page 7: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/7.jpg)
Some Finit Customers
![Page 8: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/8.jpg)
Questions
![Page 9: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/9.jpg)
Upcoming Webinars
Page 9
February 19th - What would happen if I did...in HFM: greatest hits and disasters – Chris Barbieri
February 26th - Intro to Planning Part II - Cindy Eichner
![Page 10: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/10.jpg)
©2016
About the Presenter
Page 10
Carla [email protected]
• 15 + Years Experience with Hyperion Planning and Essbase
• Member of Planning and Essbase Practice Team
• Member of Finit Answers Team• Oracle Hyperion Planning and
Essbase Certified Consultant• Loves Hawaii!
![Page 11: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/11.jpg)
©2016
Agenda
Page 11
• Driver Based Forecasting• Challenges and Types of Drivers• Key Steps in Creating a Driver Based
Forecast• Driver Based Forecasting Examples• Contact Information and Future Webinars
![Page 12: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/12.jpg)
Driver Based Forecasting
![Page 13: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/13.jpg)
©2016
What is a driver?
• Cause and effect•What an organization does• Align with business processes• Inputs – not outputs•May not be controllable
Page 13
![Page 14: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/14.jpg)
©2016
How do we use drivers?
• Budget / Plan / Forecast• Revenue Analysis• Cost Analysis• Profitability and Pricing• Risk Analysis• Strategic Decisions• Process Improvement
Page 14
![Page 15: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/15.jpg)
©2016
What is driver based forecasting?
• Identifying key metrics• Global Drivers• Local Drivers•Model impact of variables• Focus on areas that drive success
Page 15
![Page 16: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/16.jpg)
©2016
What are the benefits of driver based forecasting?
• ‘What if’ Scenarios for changing drivers• Focus on what drives the organization• Standardize forecast process• Predict labor expenses more accurately• Create forecasts more easily
Page 16
![Page 17: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/17.jpg)
©2016
How will Drivers Improve Forecast Accuracy?
•Manage changes efficiently• Provides consistency• Update forecasts quickly and more often• Strategic advantage
Page 17
![Page 18: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/18.jpg)
©2016
Challenges and Types of Drivers
![Page 19: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/19.jpg)
©2016
Challenges to Driver Based Forecasting
• Identifying key drivers• Differing Opinions• Determining the number of drivers needed• Identifying the level of detail required
Page 19
![Page 20: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/20.jpg)
©2016
Types of Drivers
• Labor Cost Drivers• Headcount • Tax Rates• Benefit Rates
• Unit Drivers• Pounds• Units Sold• WIP Units• Volume
• Sales Drivers• Gross Sales• Price• Revenue %• Net Sales• Margin %
![Page 21: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/21.jpg)
©2016
Types of Drivers (cont’d)
• Occupancy Drivers• Square Footage• Price per Square Foot
• Financial Drivers• # of Transactions• Market Share / Attrition
• Technology Drivers• Headcount• Licenses• # of Computers• # of Servers
![Page 22: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/22.jpg)
Key Steps in Creating a Driver Based Forecast
![Page 23: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/23.jpg)
©2016
• What drives revenue and cost• Metrics for overhead• Apply rates and caps• Use brackets to apply rates• Standardize the forecast process
Key Steps in Creating a Driver Based Forecast
Page 23
![Page 24: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/24.jpg)
©2016
• Price• Units / Volume• Supply & Demand• Margin• Inventory• Fixed Cost• Variable Cost• Labor• Material
Key Drivers of Revenue and Cost
Page 24
![Page 25: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/25.jpg)
©2016
• Key areas of overhead• IT• Finance• Human Resources
• Overhead often gets allocated by these methods:• Headcount• FTE• Units Sold• Labor Hours
Drivers to Plan for Overhead
Page 25
![Page 26: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/26.jpg)
©2016
• Overhead expenses are often associated with headcount
Drivers to Plan for Overhead (cont’d)
Page 26
![Page 27: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/27.jpg)
©2016
Travel Driver Examples
• Travel Expense Drivers• Type – Domestic, International, etc.• Average Cost per Flight• Average Cost per hotel night• Average Cost per rental car day
• Airfare Expense = Average Cost per Flight * number of flights• Hotel Expense = Average cost per hotel night *
number of nights
![Page 28: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/28.jpg)
©2016
Travel Driver Examples (cont’d)
![Page 29: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/29.jpg)
©2016
Travel Driver Examples (cont’d)
![Page 30: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/30.jpg)
©2016
Using Drivers to Apply Rates and Caps
• Labor Drivers• Benefits Rate• 401K Rate• Merit Increase Rate• Payroll Tax Rate• Medicare Tax Rate• Social Security Tax Rate• Social Security Tax Cap• Medicare Tax Cap• Unemployment Tax Rate• Unemployment Tax Cap
![Page 31: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/31.jpg)
©2016
Using Drivers to Apply Rates and Caps
• Social Security Tax = If YTD Gross Income <= Social Security Tax Cap, Then (Gross Income * Social Security Tax Rate)
![Page 32: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/32.jpg)
©2016
• Income Tax Brackets – Salary Cap and Rate Drivers• The Income Tax Rate applied depends on Base Salary
Driver Brackets
![Page 33: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/33.jpg)
©2016
• Proactive vs. reactive• Align drivers with actual processes•More efficient and quicker to make
changes
Standardizing the Forecast Process
Page 33
![Page 34: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/34.jpg)
Summary
![Page 35: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/35.jpg)
©2016
Summary
Page 35
• Drivers are what the organization does• Identify key metrics and get consensus•Model how processes are impacted by
variables• Standardize
![Page 36: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/36.jpg)
Contact Information &Future Webinars
![Page 37: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/37.jpg)
©2016
Thank You for Attending!
Page 37
Today’s Presenter:Carla Cwiertnia
General Questions:Greg Barrett
Joe Mizerk
Copy of the slides or Recording:Email us for a copy of the slides or a link to the recording
Past webinars:
www.finitsolutions.com/webinars
Follow us on Twitter for updates:@Finit_Solutions
![Page 38: Finit Solutions Webinar Driver Based Forecasting](https://reader030.fdocuments.us/reader030/viewer/2022033102/587115f81a28abac6d8b7113/html5/thumbnails/38.jpg)
©2016
Upcoming Webinars
Page 38
What would happen if I did...in HFM: Greatest Hits and Disasters
Friday, February 19th, Noon ESTChris Barbieri
Intro to Planning Part IIFriday, February 26th, Noon EST
Cindy Eichner