TALKING business
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Often , an external facilitator is contracted to provide fresh perspective and outside-thebox thinking to the process . By having an independent person providing guidance , the organisation will better be able to focus on the job at hand instead of trying to manage the strong personalities of the executive team that could dominate the discussion .
Once the strategy has been set and approved , additional sessions might be required to ensure there is alignment in the deliverables and how each area of the business will link to its enablement .
Importance of metrics
Part of this is to consider how the organisation will measure the success of the strategy . Metrics provide a sure-fire way of examining its effectiveness . It is also important for these metrics to extend beyond the executive level and encompass all aspects of the business .
This will empower the entire organisation to be focused on the strategy enablement and delivery . Some aspects that can help with this include embracing a balanced scorecard methodology . However , any method that links strategic objectives to key performance indicators and divisional and team priorities will work .
Once all of this is completed , any future strategy design , planning , and implementation will be done in a more integrated fashion . Success in the fastpaced digital environment is dependent on the ability of the organisation to efficiently and effectively operationalise strategy , ensuring that all staff are pulling in the right direction . •
The dangers of using spreadsheets for financial planning and analysis
The spreadsheet has become such a ubiquitous tool in finance that people hardly notice it anymore . But in a world where digital transformation requires different data approaches , Andries van der Berg , Business Manager : FP & A , Decision Inc , asks if reliance on this traditional solution pose a risk to business ?
Simply put , decades-old spreadsheets are not built to handle the complexities of modern , fast-paced businesses . Certainly , as personal productivity tools they work wonders but can present major accuracy issues when shared across multiple users and locations . A collaborative environment is one of the critical aspects of a digital enterprise and not being able to effectively manage multiple versions and the users editing these documents can severely inhibit a business . The issue for many organisations who continue to manage critical financial data using a traditional spreadsheet is that there is no safety check that automated Corporate Performance Management ( CPM ) solutions provide .
More than just numbers
At its heart , CPM solutions are focused on monitoring and managing the performance of a business utilising several key data sets ( such as revenue , operational costs and others ). In recent times , there has been an evolution of CPM solutions thanks to the increasing use of cloud-based systems and approaches .
Today , there are cloud solutions in the CPM environment designed to mitigate the risk
Andries van der Berg , Business Manager : FP & A , Decision Inc
of using spreadsheets for mission-critical functions . But decision-makers need to determine which offerings provide the best fit into their current processes and systems with change management amongst users a critical deciding factor .
Certainly , cloud technology can not only improve financial processes , but also allow for more detailed planning and reporting capabilities . While many standard spreadsheet solutions do feature elements of these , they are not built for the scale required by organisations . The biggest problem is that as the spreadsheet becomes more complex , so to does the amount of time users spend in getting to the information and data that they require .
If spreadsheets were just about the figures , then they would fulfil their purpose . However , the digital environment requires a different approach – one able to put data analysis at its core and provide decision-makers with the insight required to rapidly change business strategy as required .
Understanding analysis
CPM solutions provide a way to do all these things . By using an analyst-driven approach , it facilitates greater understanding of current approaches . Additionally , it enables a business to become more technology-agnostic and not as reliant on a spreadsheet solution from a specific vendor . Solutions providers that show a willingness to get insight into the current and future requirements of the business and propose CPM offerings built around them , will be ideal partners on this digital journey .
The reality of a business environment where people can take up to two weeks ( if not longer ) to compile a set of management reports is nonsensical . It becomes even more frustrating when chartered accountants end up manage the admin behind the reporting process instead of focusing on their core functions such as detailed analysis . CPM solutions provides the means to automate the entire process and perform much more effective cost-benefit analysis .
Fortunately , businesses are moving away from these traditional mindsets and looking at how best to integrate CPM into their organisations . This presents many exciting opportunities for future growth and ones that will move the organisation further away from the risk of ‘ death by spreadsheet ’. •
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