Monday, November 28, 2011

Why Financial Budgets Need Operational Models

This is part 1 of a 3 part series on combining financial & operational models to link key business drivers to budgets & forecasts.

So, why do financial budgets need operational models?
  • Increase ability to anticipate and react to change in today’s uncertain environment where past ≠ future
  • Traditional budgeting’s focus is often misplaced (i.e. focused on salaries & wages vs attracting/retaining customers and human resources)
  • Key drivers link operational tactics to the expected financial results of executing on strategy, giving insight behind the budgeted numbers and facilitating variance analysis
Please browse this autodemo for an overview of Prophix CPM, a solution that can facilitate sophisticated operational modelling.

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