The challenges facing today’s finance leaders
I returned from CFO Magazine’s Corporate Performance Management Conference last week with a sense that many finance leaders are experiencing similar problems when it comes to achieving a holistic view of company performance. I like to reflect on the common themes after a conference, and after this one, I kept coming back to the theme of “one shared challenge.” As a vendor who exhibits at several conferences per year, we’re used to hearing about a multitude of BI/analysis/data issues, but at this event, everyone seemed to be on the same page.
arcplan sponsored the CPM Conference, held around the corner from our US headquarters at the Loews Philadelphia. It brought together 150 CFOs, VPs of Finance, Directors of FP&A, Controllers, and Analysts for three days of workshops, case studies and networking. We had plenty of time to speak with attendees, and it was remarkable how many times I heard the same challenge:
I can’t connect all of my data on one screen.
I talked to many people using IBM Cognos, SAP, Oracle, and other systems simultaneously with no method to make them all work together. The inability to easily share critical business insight across the organization was a hot topic during every networking break. Again and again I was asked how arcplan could solve the issue of everyone spending their time of the process of monthly data gathering and not on the analysis…
Today, arcplan put out a press release about the 4 elements of a perfect planning process – and no, it’s not fire, earth, air, and water. You may have just emerged from your budgeting and planning season wondering if there’s a better way to go about it next time, if you can make it easier and more repeatable, or if you can help add value to the process. If so, read on. This press release covers how and why automation, linkage to corporate goals, rolling forecasts, and analytics are the keys to perfect planning.
The 4 Elements of a Perfect Planning Process
Planning can be the most dreaded activity or the most lauded, depending on how effectively the finance team manages it. But it is undoubtedly one of the most important exercises a company undergoes, as it lays out the future finance situation, which in turn should drive efficiency, improve performance, and unite everyone behind a common vision of success. As more companies around the globe deploy arcplan for budgeting, planning and forecasting, this international solution provider has compiled a list of best practices its customers follow to ensure planning perfection.
For many companies large and small, the planning process begins in Excel and involves a lot of manual data consolidation and time spent reconciling multiple versions of spreadsheets. This error-prone process is an incredible waste of time; planning in this way is inefficient and detracts from time that should be spent analyzing plans and working towards company goals. Automation is a better approach to aggregating plan data and has positive effects like improved consistency and time savings. A solution like arcplan Edge streamlines the consolidation process by simultaneously connecting to multiple data sources. This enables the system to act as a central repository with data entry and write-back functions, eliminating the reliance on spreadsheets by allowing planners to interact with live data in an Excel-like web interface. It also provides automated alerts based on user interaction, such as alerting managers when direct reports have completed a task in the budgeting workflow. Automation is hugely beneficial to the planning process because it enables timely completion of plans and diverts focus from the mechanics of the budgeting process to actual analysis.
Budgeting, planning and forecasting is a critical process for organizations of all sizes who want to ensure profitable operations and well, plan for the future of their business. For finance teams who haven’t mastered the art of effective planning, month-end financial reporting and year-end planning is a chore. Those who have their financial processes down to a science enjoy timely completion of plans, plans that align with corporate goals, rolling forecasts, and the ability to analyze and dissect data as needed to make better decisions.
Aberdeen’s research study on Improving S&OP with Planning and Forecasting Technology provides insight on how best-in-class companies address key financial and business planning objectives. IMAX Corporation – the immersive motion picture technology company – was featured in the report. They’re an arcplan customer and a great example of a company that has fine-tuned sales and operations planning in order to improve business outcomes. IMAX is reaping the benefits of planning done right. Here’s how they made it happen:
1) They use technology to consolidate and analyze data.
Finance teams can waste many hours, days and even weeks consolidating data from various sources to create monthly and quarterly reports, leaving no time to analyze that data and make forecasts. IMAX overcame this problem by implementing an arcplan financial planning solution that…
In my last post, I put to rest some myths about BI software customization. Today I’d like to continue rooting for configurable business intelligence by explaining the benefits you can look forward to with a custom solution.
1) You’ll get a BI solution that fits your needs , without compromise.
The most successful BI solution is one that fits your business requirements like a glove. Since each organization has unique business processes, these requirements will differ from one organization to the next. With a custom BI solution, finance teams for instance can take advantage of a personalized planning tool that reflects their existing process. Some of the planning vendors arcplan encounters offer an out-of-the-box solution that forces customers to mold to a specific process, instead of the other way around. This lengthens the adoption process, causes disruptive process changes, and adds training costs. When your BI software forces you to compromise on features, you won’t end up with an ideal end result. With a custom solution, you can get all of the unique features your organization needs – and as I said previously, it doesn’t need to take years and or demolish your budget.
2) You’ll enjoy a gradual learning curve.
In your fast-paced business environment, you need to spend time doing the work that brings in revenue and less time learning complicated technology. A custom BI solution can be tailored to how your team currently works, and a product like arcplan can ease the transition by enabling users to work in their most familiar interface – Excel. Because our solutions are customized, you might choose an Excel-like web interface, or want to work directly in Excel while having access to live data, which is something a lot of our customers like. This kind of solution helps users learn the technology very quickly and seamlessly transition to their new BI solution.
3) Configuration and project rollout can be done in phases.