The New Reality for Business Planning and Analysis
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The document discusses the evolving role of business planning and analysis (BP&A) in organizations, emphasizing the significance of data and analytics in strategic planning and forecasting. Key transformation success factors are identified, including executive engagement, process standardization, and cross-functional collaboration. It highlights the need for finance functions to transition from traditional record-keeping to a performance-focused role that leverages emerging technologies and data stewardship.
The New Reality for Business Planning and Analysis
- 1. May 25, 2021 The New Reality for Business Planning and Analysis
- 2. Bill Guilmart Sr. Director, Solutions Marketing Workday Brian Anderson Principal, Advisory Finance Transformation KPMG Scott Fredrich Managing Director, Advisory Finance Transformation KPMG Ray Alwani ENMAX Director, Business Systems Process and Strategy
- 3. 3 © 2020 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 3 The New Reality for Business Planning and Analysis May 25, 2021
- 4. 4 © 2020 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Elevating the value of BP&A Data and analytics capabilities provide BP&A with an opportunity to influence the enterprise across three core areas. Strategic Planning Forecasting Analytics & Insights Continuous forecasting triggered by changes in business drivers Enterprise planning enabled by a robust technology suite Increased accuracy through reliance on external signals and predictive modelling Align strategic priorities across enterprise for 1-,3-, 5-year outlook Leverage rapid strategic modelling for assessing impact of external events: - Business model shifts - Unexpected external impact - Event-based scenarios Cross-functional analytics leveraging AI and predictive capabilities Digital delivery of analytics with mobile and self-serve capabilities Augmented visualizations integration across platforms New (and more) data as a foundation Accelerate value through technology Achieving organizational agility
- 5. 5 © 2020 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Uplifting the BP&A role 1) Know what and how to measure and analyze — Align your measurements with enterprise strategies and performance — Identify the foundational measures and analytics — Look forward with leading edge insights to analyze and predict 2) Employ emerging technologies — Drive the intelligent automation of foundational measurements — Enable the generation of leading edge insights and analytics — Optimize data quality and access to analytics 4) Develop Business Partnership capabilities and culture — Understand the evolving roles of the Finance function — Invest in the right skills & talent — Create a performance-centric and technology-enabled function 3) Be the Enterprise Data Steward — Shape the enterprise’s vision for insights and analytics — Develop the optimal delivery model for Finance — Spearhead the evolution of an analytics-based organization People and data deliver the value -- finance must transcend its role as a record-keeper and become performance and enterprise-focused
- 6. 6 © 2020 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. What will it take for a successful BP&A transformation? Transformation success factors Healthy signs Unhealthy signs — The right executive sponsors are engaged — Regular steering committee meetings are being held — Engaged operating committee to drive decision making — Hypothesis-based approach, use pilots to test and learn and gain support — Crawl, walk, then run based on maturity — End-to-end process standardization and management — High performing resources engaged with global view — Value drives the sequencing — Quick wins while working on longer transformation — Business case that tracks benefits — Change activities are an integral part of the program — Early and ongoing engagement of cross functional partners — Understanding and considering employee impacts — Visible incentives and recognition — Executives’ support is not visible — Not able to find the right resources with the right skills — Automate As-is process vs. “improve then automate” strategy — Not driving end-to-end-end thinking across process decisions — Lack of end-to-end comprehensive KPIs — “Why are we doing this?” mindset — No business case — Change not considered in upfront planning — Minimized ROI due to poor adoption — Out of touch with employee population needs and motivations Unflinching executive commitment and championing Holistic operating model outlook Articulating and monitoring the case for change Proven change transformation methodology Effective governance and program control — Program leads with the authority to make key decisions — Purposeful, digestible implementation plan — Effective risk mitigation to anticipate roadblocks/issues — Disciplined and rigorous controls to manage changes and exceptions — Uncontrolled – poor plans, controls, tracking mechanisms — Risk are not captured or mitigated — Status reporting not reflective of project reality
- 8. Bill Guilmart Sr. Director, Solutions Marketing Workday Brian Anderson Principal, Advisory Finance Transformation KPMG Scott Fredrich Managing Director, Advisory Finance Transformation KPMG Ray Alwani ENMAX Director, Business Systems Process and Strategy
- 9. Thank You
Editor's Notes
- #5: KPMG overview… Summarize of key themes: Strategic Planning, Forecasting, Analytics & Insights Trends: Longer term outlook Continuous forecasts Driver based models Enhanced reporting Incorporating external data (e.g., KPMG Signals Repository) Overview Background on ENMAX journey to new BP&A system (started with ERP, moved to planning…) Key themes that align to 3 core areas. Strategic Planning: Shifted to 3-year outlook; single working forecast – one 3 year rolling forecast with snapshot to create the budget; July of every year tack 1 year on ; focus is usually on immediate 18th months Forecasting: Driver based modelling – more models built directly in adaptive insights (call center based on hours by rep as driver – using historical models to estimate future hours) ; tight integration with Workday HCM Forecasting: Leverage tech to reduce cycle time (from identify change to seeing results ); prior to adaptive, could take up to 1 week. More immediate feedback, helps with what if scenarios Forecasting: Self service – pushing input out to business professionals who are closest to the drivers; create shared accountability throughout the year on same timeline, Analytics / Insights: eventually Finance will better understand and have more transparency into the dynamics between operational drivers and financial plan/forecast
- #6: KPMG overview…
- #7: KPMG overview…