finit - driver based forecasting 021216
Embed Size (px)
TRANSCRIPT
-
Driver Based Forecasting
February 12, 2016
Carla Cwiertnia
2016
-
Finit EPM Services
Page 2
Full Cycle Implementations
Upgrades
Dedicated Support
-
Why is Finit here?
Page 3
Finit takes pride in being a company of makers and Doers; people who dig in and get their hands dirty
We make and deliver personalized financial reporting solutions and experiences
Not Company to Company, but Person to
Person
By listening, questioning, and analyzing
-
The Finit Family
Page 4
Fully aligned with our clients, not just bottom line $
No debt or external ownership
Work with Finit employees, no subcontractors
Compensationbased on CLIENT SATISFACTION
PRIVATELY OWNED
CLIENT SATSIFACTION
NOSUBCONTRACTORS
DEBT FREE
-
Finit Values
Page 5
Our values on which we ask you to provide consultant feedback:
Approach & Collaboration
Integrity & Honesty
Client Betterment
Self Betterment
Colleague Betterment
Finit Betterment
Work Effectiveness
Impact & Innovation
Proactiveness & Passion
Service Solutions Betterment
-
Finit Customer Success
Page 6
Our values, culture, and approach to becoming a trusted advisor to our
customers has led to
100% customer success
for every Finit client (250+) and for every Oracle Hyperion project (500+)
-
Some Finit Customers
-
Questions
-
Upcoming Webinars
Page 9
February 19th - What would happen if I did...in HFM: greatest hits and disasters
Chris Barbieri
February 26th - Intro to Planning Part II
- Cindy Eichner
-
2016
About the Presenter
Page 10
Carla Cwiertnia
15 + Years Experience with Hyperion Planning and Essbase
Member of Planning and Essbase Practice Team
Member of Finit Answers Team
Oracle Hyperion Planning and Essbase Certified Consultant
Loves Hawaii!
mailto:[email protected]
-
2016
Agenda
Page 11
Driver Based Forecasting
Challenges and Types of Drivers
Key Steps in Creating a Driver Based Forecast
Driver Based Forecasting Examples
Contact Information and Future Webinars
-
Driver Based Forecasting
-
2016
What is a driver?
Cause and effect
What an organization does
Align with business processes
Inputs not outputs
May not be controllable
Page 13
-
2016
How do we use drivers?
Budget / Plan / Forecast
Revenue Analysis
Cost Analysis
Profitability and Pricing
Risk Analysis
Strategic Decisions
Process Improvement
Page 14
-
2016
What is driver based forecasting?
Identifying key metrics
Global Drivers
Local Drivers
Model impact of variables
Focus on areas that drive success
Page 15
-
2016
What are the benefits of driver based forecasting?
What if Scenarios for changing drivers
Focus on what drives the organization
Standardize forecast process
Predict labor expenses more accurately
Create forecasts more easily
Page 16
-
2016
How will Drivers Improve Forecast Accuracy?
Manage changes efficiently
Provides consistency
Update forecasts quickly and more often
Strategic advantage
Page 17
-
2016
Challenges and Types of Drivers
-
2016
Challenges to Driver Based Forecasting
Identifying key drivers
Differing Opinions
Determining the number of drivers needed
Identifying the level of detail required
Page 19
-
2016
Types of Drivers
Labor Cost Drivers Headcount
Tax Rates
Benefit Rates
Unit Drivers Pounds
Units Sold
WIP Units
Volume
Sales Drivers Gross Sales
Price
Revenue %
Net Sales
Margin %
-
2016
Types of Drivers (contd)
Occupancy Drivers Square Footage
Price per Square Foot
Financial Drivers
# of Transactions
Market Share / Attrition
Technology Drivers
Headcount
Licenses
# of Computers
# of Servers
-
Key Steps in Creating a Driver Based Forecast
-
2016
What drives revenue and cost
Metrics for overhead
Apply rates and caps
Use brackets to apply rates
Standardize the forecast process
Key Steps in Creating a Driver Based Forecast
Page 23
-
2016
Price
Units / Volume
Supply & Demand
Margin
Inventory
Fixed Cost
Variable Cost Labor
Material
Key Drivers of Revenue and Cost
Page 24
-
2016
Key areas of overhead IT
Finance
Human Resources
Overhead often gets allocated by these methods:
Headcount
FTE
Units Sold
Labor Hours
Drivers to Plan for Overhead
Page 25
-
2016
Overhead expenses are often associated with headcount
Drivers to Plan for Overhead (contd)
Page 26
-
2016
Travel Driver Examples
Travel Expense Drivers Type Domestic, International, etc.
Average Cost per Flight
Average Cost per hotel night
Average Cost per rental car day
Airfare Expense = Average Cost per Flight * number of flights
Hotel Expense = Average cost per hotel night * number of nights
-
2016
Travel Driver Examples (contd)
-
2016
Travel Driver Examples (contd)
-
2016
Using Drivers to Apply Rates and Caps
Labor Drivers Benefits Rate
401K Rate
Merit Increase Rate
Payroll Tax Rate
Medicare Tax Rate
Social Security Tax Rate
Social Security Tax Cap
Medicare Tax Cap
Unemployment Tax Rate
Unemployment Tax Cap
-
2016
Using Drivers to Apply Rates and Caps
Social Security Tax = If YTD Gross Income
-
2016
Income Tax Brackets Salary Cap and Rate Drivers
The Income Tax Rate applied depends on Base Salary
Driver Brackets
-
2016
Proactive vs. reactive
Align drivers with actual processes
More efficient and quicker to make changes
Standardizing the Forecast Process
Page 33
-
Summary
-
2016
Summary
Page 35
Drivers are what the organization does
Identify key metrics and get consensus
Model how processes are impacted by variables
Standardize
-
Contact Information &Future Webinars
-
2016
Thank You for Attending!
Page 37
Todays Presenter:
Carla Cwiertnia
General Questions:
Greg Barrett
Joe Mizerk
Copy of the slides or Recording:
Email us for a copy of the slides or a link to the recording
Past webinars:
www.finitsolutions.com/webinars
Follow us on Twitter for updates:
@Finit_Solutions
mailto:[email protected]:[email protected]:[email protected]:[email protected]://www.finitsolutions.com/webinars
-
2016
Upcoming Webinars
Page 38
What would happen if I did...in HFM: Greatest Hits and Disasters
Friday, February 19th, Noon ESTChris Barbieri
Intro to Planning Part IIFriday, February 26th, Noon EST
Cindy Eichner