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This presentation aims to explore the concepts of Financial Planning and Corporate Performance Management as well as the integration between both, making these the structure to address the stages of a CPM tool implementation.
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Copyright BIMaven Consulting, Lda. Este conteúdo são propriedade intelectual da BIMaven Consulting (MAVEN), protegida nos termos do Decreto-lei Nº 63/85, de 14 de Março – Código do Direito de Autor e dos Direitos Conexos. A divulgação, transcrição ou rerodução deste conteúdo não é permitida sem prévia autorização, por escrito, da MAVEN. O conteúdo é confidencial e de circulação restrita a quem a mesma se destina, que terá o direito de a utilizar apenas para os fins acordados com a MAVEN.
Corporate Performance Management Alberto Zenkner
Agenda
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Agenda
Budgeting, Forecasting and Financial Modelling
Corporate Performance Management
Implementation Metodology
Budgeting, Forecasting and Financial Modeling
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Budgeting, Forecasting and Financial Modeling
Strategy What businesses are we in? How will we compete? Which choices will make us more money? Planning How will we align resources with our strategy? How will we measure our progress?
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Budgeting, Forecasting and Financial Modeling
Budgeting How will we ensure accountability and encourage behaviors needed to execute the strategy? Forecasting How will we adjust to reflect changing conditions?
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A business model will become a virtual reality
representation of how a real business opportunity will
develop.
Budgeting, Forecasting and Financial Modeling
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To enable this virtual world to be as realistic as possible it
needs to be logically constructed from a set of assumptions
that covers each influencing factor.
Budgeting, Forecasting and Financial Modeling
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These factors include both the business environment (for
example, inflation, potential customers and taxes) and the
organization (for example, product prices, staff numbers and
product volumes).
Budgeting, Forecasting and Financial Modeling
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The most comprehensive means of financial budgeting and
forecasting is to develop a series of projected financial
statements with the support of well defined business rules.
Budgeting, Forecasting and Financial Modeling
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Based on the projected statements, the firm is able to
estimate its future level of receivables, inventory, payables,
and other corporate accounts as well as its anticipated profits
and borrowing requirements.
Budgeting, Forecasting and Financial Modeling
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Budgeting, Forecasting and Financial Modeling
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A financial model helps managers to explore complex
choices, using sets of assumptions to represent
alternative scenarios, whether they are for budgeting,
forecasting or strategic planning
Budgeting, Forecasting and Financial Modeling
Corporate Performance Management
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Corporate Performance Management
CPM supports development of annual budgets and longer-
term plans, including workflow technology to manage
formulation of budgeting processes, and the ability to model
scenario and “what-if” analysis.
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Corporate Performance Management
The planning component of CPM supports linking financial plans
to operational plans. These capabilities demand a strong ability
to integrate with existing systems outside of the CPM solution.
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Corporate Performance Management
CPM supports techniques such as activity-based costing and
activity-based management, including the ability to model the
impacts of different resource allocation strategies on
performance.
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Corporate Performance Management
CPM products include tools such as dashboards, cockpits, and
scorecards designed to quickly and easily communicate key
performance data to users.
Further, CPM products have tools for modeling the relationships
between performance criteria in order to arrive at an
organizational performance model.
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Corporate Performance Management
Planning
Monitoring
Reporting
CPM
Modeling
Analyzing
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Corporate Performance Management
Business Analysis &
Implementation Metodology
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BA & Implementation Metodology
BUSINESS ANALYSIS SOLUTION IMPLEMENTATION
The process of implementing a CPM solution can be divided
into eight phases that are comprised of three stages
AS-IS ANALYSIS
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BA & Implementation Metodology
BUSINESS ANALYSIS SOLUTION IMPLEMENTATION
In the first stage, will be evaluated technological issues and
the status of the budget process
AS-IS ANALYSIS
Phase 1
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BA & Implementation Metodology
BUSINESS ANALYSIS SOLUTION IMPLEMENTATION AS-IS ANALYSIS
• Identify the state of infrastructure hardware
• Identify the level of maturity of the planning model
• Identify the project main sponsor
Phase 1
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BA & Implementation Metodology
BUSINESS ANALYSIS SOLUTION IMPLEMENTATION AS-IS ANALYSIS
• Identify how many employees are involved in the budgeting
cycle
• Identify how long this cycle takes
• Determine the scope of the project
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BA & Implementation Metodology
BUSINESS ANALYSIS SOLUTION IMPLEMENTATION AS-IS ANALYSIS
The second stage will be defined the managers requirements
and specified of the business rules to meet these outputs
Phase 2
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Definition of the structure of financial statements, KPIs and
other outputs required by managers:
• Income Statement
• Balance Sheet
• Cash Flow
BA & Implementation Metodology
BUSINESS ANALYSIS SOLUTION IMPLEMENTATION AS-IS ANALYSIS
Phase 3
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Make the transition from Financial Accounting for
Management Accounting by converting the chart of accounts
of the company for the new defined structure;
BA & Implementation Metodology
BUSINESS ANALYSIS SOLUTION IMPLEMENTATION AS-IS ANALYSIS
Phase 3
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This phase involves only actual data that will performed at
first to test the outputs and subsequently used to compare
actual x planned results
BA & Implementation Metodology
BUSINESS ANALYSIS SOLUTION IMPLEMENTATION AS-IS ANALYSIS
Phase 4
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Defining templates for inputs of planned data
BA & Implementation Metodology
BUSINESS ANALYSIS SOLUTION IMPLEMENTATION AS-IS ANALYSIS
Phase 5
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Development of financial modeling in accordance with the
business rules defined by managers and accounting staff
BA & Implementation Metodology
BUSINESS ANALYSIS SOLUTION IMPLEMENTATION AS-IS ANALYSIS
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BA & Implementation Metodology
BUSINESS ANALYSIS SOLUTION IMPLEMENTATION AS-IS ANALYSIS
Only in a third stage, with well-defined business rules,
and a stable model, starts the implementation of
technological CPM solution.
Phase 6
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Software Installation;
Load of Dimensions;
Development of formulas, input forms and reports;
Workflow preparation.
BA & Implementation Metodology
BUSINESS ANALYSIS SOLUTION IMPLEMENTATION AS-IS ANALYSIS
Phase 7
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Testing and Validation
BA & Implementation Metodology
BUSINESS ANALYSIS SOLUTION IMPLEMENTATION AS-IS ANALYSIS
Phase 8
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Training of end users
BA & Implementation Metodology
BUSINESS ANALYSIS SOLUTION IMPLEMENTATION AS-IS ANALYSIS
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