Actually, unless you are a brand new startup, budgeting and planning for future is well under way for 2013. If you haven’t started or need some help, this is a good points article.
Excerpt: It’s that time of year again: Budgeting and planning for next year are in full swing. Everyone has been through this process. At one end of the spectrum is the struggling business unit that unveils the miraculous “hockey stick” trajectory their sales and profits are just about to take…again. (Don’t bet on it.) At the other end are high-performing business units that are starved of the resources they need in order to fund growth because they are subsidizing another business unit’s hockey stick.
Through hundreds of sessions like these across dozens of industries, we’ve identified four best practices to make your budgeting and planning process much more effective and less dependent on illusory projections.
Read full article via Four Ways to Build Better Budgets – Jason Green – Harvard Business Review.
Small business takeaways. How many in management want to hear their planning is a fallacy! Truth hurts!
Excerpt: While $300 million might sound like a ridiculously large number to small business owners or entrepreneurs, leaders in many global giants consider the amount a drop in the bucket. But anyone with near-term innovation targets with nine (or six or even four) digits in them should ensure they are familiar with the concept of “planning fallacy.”
The basic concept, first presented by Nobel Laureate Daniel Kahneman and his partner Amos Tversky in an influential 1979 paper, is that human beings are astonishingly bad at estimating how long it will take to complete tasks
Read full article via The Planning Fallacy and the Innovator’s Dilemma – Scott Anthony – Harvard Business Review.
Another good article from Executive Street today on strategy and planning. This one addresses the how-to of driving the energy and the process.
Excerpt: Implementing corporate strategy is dependent upon the energy, dedication, hard work and faith of the organization’s employees. Motivating employees to act decisively in the face of uncertainty is a challenge where many an organization have failed miserably. Simply stated, a considerable amount of energy is required to drive strategies to fruition – and that energy must be generated from within the organization.
This article shares important guidance on the topic of generating, harnessing and channeling employee energy – factors with deep implications for any organization doing strategic planning.
Read full article via Corporate Strategy: Batteries Not Included- Generating organizational energy for execution | Executive Street.
Part 1 of this article is in the previous post, this is part 2 …….. as said in part 1 comment, good read and good list against which to compare.
Excerpt: In last week’s post, Strategic Planning: 12 Common Mistakes (Part 1 of 2), we explored the first six of 12 common mistakes made in corporate strategic planning. This week, let’s look at six more common mistakes to learn from and avoid making.
Read full article via Strategic Planning: 12 Common Mistakes – Part 2 | Executive Street.
Sometimes it helps to actually compare against a best practices good list or in this case “don’t do” list.
Excerpt: In a recent post, 12 Common Traits of Companies With Successful Corporate Planning, we examined common patterns of companies experiencing success in their corporate strategic planning efforts. This week and next, we will will examine 12 common mistakes made in corporate strategic planning.
This week, let’s look at the first six common mistakes.
Read full article via Strategic Planning: 12 Common Mistakes (Part 1 of 2) | Executive Street.
Excerpt: A robust and mature S&OP process is absolutely critical to improving operating performance in critical areas such as: Customer service Inventory management Capex efficiency Profitable revenue growth Technology and data Companies that manage S&OP purely as a supply chain process are not seeing the bigger picture. Today’s competitive market pressures require that S&OP focus less on yesterday’s back order and more on how the company’s existing capacity can meet long-term plans.
Read full article via Improving business and operations planning – Why is integrated planning and S&OP an issue now? – Ernst & Young – Global.
Recommended read — discussions and information addresses today….what has been learned and changed as the CFO role adapts and changes…leadership and management
Excerpt……Their insights were particularly timely. As companies navigate the increasingly complex waters of the global marketplace, CFOs are becoming a more influential part of the strategic-planning process.
Read full article….via CFO round table: Managing uncertainty. From AICPA Journal of Accountancy
Event webinar…you do need to register….
Excerpt from their newsletter………Everyone wants a crystal ball to be able to look into the future. For businesses, that desire becomes a necessity because having a vision of the future allows for better and more strategic decision making in the present. Rolling forecasts built on driver-based and project-based planning do just that, creating a framework that supports better decision making. The webinar content will focus on how to define your company’s objectives creating a rolling forecast, best practices in analyzing the dynamics of revenues and expenses in your business, and how to access how external conditions impact your company’s performance.
Register for webinar here……….Rolling Forecast: New Methods of Looking into the Future | Webinar | April 26, 2012 | Proformative.
Planning and forecasting……the analysis results you need….. great small business leadership and management takeaways….
Excerpt……Determining the break-even point is crucial to determining margins, which, in turn, aid in financial planning for the next year. Break-even analysis determines both the minimum amount of sales required to avoid a loss or to “break-even” at the end of the fiscal year and permits you to adjust sales estimates accordingly.
This article reviews the break-even analysis process by discussing elements like the following: fixed costs, variable costs, units, selling price, sales estimates, revenue, profits, and margins. Primary sections address cost components of break-even analysis, the margin of safety, and contribution margin analysis.
Read summary then download full PDF paper here………Using Break-Even Analysis to Determine Your Company’s Financial Health | Los Angeles Fractional CFO Services | CFO Edge, LLC.
Strategy, innovation and disruption…… leadership tool to help you with your planning and strategy.
Excerpt…….Social media tools and web based collaborative approaches (web 2.0) are a disruptive technology changing business, social and political models by enabling instant, often unmediated content generation and sharing.
Most business leaders anticipate that marketing and sales are the functions within their organisations to make the most use of web 2.0. But communication with customers may not be the most significant benefit. Corporations have used web 2.0 for different applications, and some of the case studies in the tool examine to what effect these innovative uses have been employed.
Read introduction and download tool……….via How to make a business case for Web 2.0. From CGMA.org
The link provides a download button for the white paper…… Sorry, guys, you will have to register to download….. it is free once you register.
Excerpt introduction……“In this white paper, you’ll read why traditional planning and forecasting processes are not enough in today’s environment. And, you’ll learn about the three capabilities that form the foundation of modern, dynamic planning and forecasting processes:
• Analytics – including multi-dimensional analysis, on-demand scenario planning, and predictive analytics
• Modeling – the ability to quickly build and revise sophisticated models to find the best path forward
• Contribution #or participation# – rich workflow and role-based interfaces that facilitate broad, frequent contributions to plans and forecasts
If you want to move beyond the traditional finance role and play a more visible, pro-active role in supporting business decision making, read this white paper today. “
Download white paper here…via Three Capabilities to Fuel Today’s Dynamic Planning and Forecasting | Proformative.
Good read……data management and analysis.
Excerpt………..you’ve sat in a business operations meeting where hours were spent explaining a two percent deviation in weekly sales even though the random variation in the data is five percent. Maybe you’ve sat in quarterly Marcom budget planning sessions where you are using a sophisticated market-mix model to allocate your spend but with a “small” caveat – this quarter, company leadership has decided to increase brand spend 10-fold and decrease non-brand spend proportionately. These situations epitomize some of the most common mistakes in statistical analysis. In the work of performing analytics services across multiple verticals and geographies, common themes arise:
Read full article…..via Five Common Statistical Analysis Mistakes. From Information Management
You do have to register in order to download the whitepaper …….
Excerpt introduction………The planning process includes: Strategic Planning, Operational Planning, and Financial Planning. It’s the integration of these plans that provides the mechanism to adjust to the actual scenario.
Download white paper here……via Battle-Tested Best Practices in Planning and Budgeting | Proformative.
Risk management ..takeaway is a planning list from peer stats for your 2012 …Leadership and C-Suite
Excerpt…..IT security, global expansion, and excess cash top the list of 10 risks companies should be particularly concerned about in 2012, according to the Corporate Executive Board (CEB).
The research firm comes up with a list of so-called risk hotspots every year, based on discussions with clients, surveys, and observations about what’s going on in the corporate world. The CEB offers its tally as a starting point for senior executives to use with their boards and internal-audit teams to discuss how their company should do risk assessments in the coming year.
Read full article……via Risk Assessments Radar Screen 2012. From CFO.com