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In today’s economic climate, high-performance businesses will increasingly set themselves apart by their ability to quickly make smart decisions.
Accenture believes that rolling forecasting is not the solution for many companies, and has created a framework for a more pragmatic alternative—event-driven dynamic planning.
In the current global economic crisis, the ability to make smart decisions quickly about the allocation of scarce resources has become even more important. The concept of “rolling forecasting” is a potential solution, but Accenture’s experience has been that it is cumbersome and impractical, especially for large global organizations.
Accenture believes that event-driven dynamic planning could benefit many organizations to become aware of change and respond to it quickly, making the rapid course corrections needed to keep them on track to achieving high performance.
Accenture has developed a comprehensive framework for dynamic planning that is pragmatic and goes far beyond the static approach of the annual budget cycle. This framework is business-led rather than technology-driven and it supports a strong overall performance management capability by helping align strategy, targets, planning, operations and management reporting:
The final step leads back to the first as the process continues.
Dynamic planning supports faster decision making, provides visibility into the likely future and focuses on the most important drivers of business performance. Here are some guidelines to consider when embarking on a dynamic planning program:
Easier to implement than rolling forecasting, event-driven dynamic planning gives leaders the tools they need to become more agile as they pursue high performance in the highly competitive, volatile global marketplace.
July 21, 2009
Outlook from Accenture
Outlook is a journal of high-performance business.
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