understanding the new generation of business planning
TRANSCRIPT
© 2014 Ventana Research
Twitter: #VRSummit14 and @ventanaresearch Twitter: #VRSummit14 and @ventanaresearch
© 2014 Ventana Research
Twitter: #VRSummit14 and @ventanaresearch
New Generation of
Business Planning
Robert Kugel
SVP & Research Director
Ventana Research
© 2014 Ventana Research 3
Twitter: #VRSummit14 and @ventanaresearch
Robert Kugel CFA, SVP & Research Director
Rob heads up the CFO and business research focusing on the intersection of
information technology with the finance organization and broader business
applications. The financial performance management (FPM) research agenda
includes the application of IT to financial process optimization and collaborative
systems; control systems and analytics; and advanced budgeting and
planning. Rob also covers the areas of GRC and Sustainability that span across
business and IT.
Prior to joining Ventana Research he was an equity research analyst at several
firms including First Albany Corporation, Morgan Stanley, and Drexel Burnham,
and a consultant with McKinsey and Company. Rob was an Institutional Investor
All-American Team member and on the Wall Street Journal All-Star list. Rob has
experience in aerospace and defense, banking, manufacturing and retail and
consumer services. Rob earned his BA in Economics/Finance at Hampshire
College, an MBA in Finance/Accounting at Columbia University, and is a CFA
charter holder. As an industry veteran with more than 30 years experience,
Rob can be found on Twitter at @rdkugelvr and on LinkedIn and reached
via email [email protected] and read his blog
at http://robertkugel.ventanaresearch.com.
© 2014 Ventana Research 4 © 2014 Ventana Research 4
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Everybody talks
about the weather
but nobody does
anything about it.*
* Charles Dudley Warner
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Planning Isn’t Budgeting
•Static; infrequent
process
• Inwardly-focused
•Negotiated spending,
investment and revenue
targets
Object: control
(minimize) spending
Budgeting
•Dynamic; frequent
interactive process
•Externally-focused
•Find opportunities and
threats; plan
contingencies; drive
internal coordination
Object: steer
performance and
optimize investment
Planning
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Today’s Business Planning and Forecasting
Corporations engage in numerous silo-based planning
and forecasting activities, most of which are loosely
coupled
Cash Flow
Forecast
Sales
Forecast
Sales and
Operations
Plan
Demand
Plan Capital
Planning
Monthly
Re-forecast Annual
Budget
Sales
Forecast
Sales
Forecast
Sales
Forecast Sales
Forecast
Plan
Plan
Plan
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Spreadsheets
remain the tool
of choice for
managing
planning
and
budgeting
processes.
Spreadsheets Dominate
75%
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Budgeting Isn’t Integrated
Only 27% directly link
budgets to detailed
source data
Just 25% think it’s very
important to link all financial
and business plans and forecasts.
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Lack of Integration Across Enterprise
Sales forecasts are not integrated with
other departments:
SOMEWHAT
INTEGRATED
• Manufacturing
• Operations
• Product
Development
• Supply chain
NOT
INTEGRATED
• Distribution/
Logistics
• Procurement
• Field Service
• Order
Management/
Customer
Service
REALLY NOT
INTEGRATED
• Executives
• Information
Management
• Call Center
• Finance
• Marketing
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Agility Requires Contingency Planning
What are
your
objectives? What are the key
obstacles?
How do you
propose to
address them?
What can go
wrong?
What will you do
when that
happens?
© 2014 Ventana Research
Twitter: #VRSummit14 and @ventanaresearch
New Generation of
Business Planning
Robert Kugel
SVP & Research Director
Ventana Research
©2014, Ventana Research
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