Written by Heather Cole, September 2nd 2021
The world has changed. Organizations of every size are being forced to rapidly adjust to the new world where distribution challenges are the norm and employee retention is top of mind. The uncertain world is forcing companies to create a transformation strategy. I believe this needs to start with the CFO. It’s Time for CFO’s to Leverage Transformational Planning.
What is Transformational Planning?
At Lodestar Solutions we define Transformational Planning as a connected approach to financial planning, forecasting and even budgeting where data from different sources is consolidated in real-time. Then business users, finance and beyond can model and compare scenarios, identify trends, and create rolling forecasts to enable the CFO and other executives to anticipate the changes and respond quickly.
CFO’s may not have heard of Transformational Planning because, well we created the term at Lodestar Solutions when we were brainstorming the challenges and how IBM Planning Analytics is so underutilized. But it’s not just IBM Planning Analytics customers that haven’t realized they need to look at planning differently. Finance departments everywhere are not pivoting to look beyond financial planning to incorporate all the areas of the organization.
Challenge to Realize Transformational Planning
According to a Forbes article, Uncertainty Underscores CFO’s Role to Drive Digital Transformation.
For many companies, “a reliance on antiquated tools can stand in the way of digital reinvention which could lead to missed opportunities or inaccurate forecasts that undermine performance.” If you are an IBM Planning Analytics client that has not upgraded and started to leverage the amazing new functionality of IBM Planning Analytics I would put you in this category too.
IBM Planning Analytics and Transformational Planning
Great news for IBM Planning Analytics clients! The latest version of Planning Analytics is designed for Transformational Planning. Unlike some competitive solutions, IBM Planning Analytics is not just for finance. Clients that leverage IBM Planning Analytics for areas beyond finance like HR, Marketing, Inventory and even to model acquisitions will be able to pivot and benefit from Transitional Planning, thus giving them a leg up on competition. In the uncertain world its essential for team members to modify how they look at their data on the fly, in real-time without rebuilding their models. The newer functionality in IBM Planning Analytics, like virtual dimensions, allows this flexibility and more. And the best part is the IBM Planning Analytics solutions does not require additional modules to deliver robust planning and forecasting for all areas on your business.
For more, here’s a blog, Guide to Creating a Virtual Hierarchy for reference.
Additionally here’s a link to our blog on, What’s New in IBM Planning Analytics Workspace Version 64, 65 and 66?
Transformational Planning Starts with the CFO
For an organization to move to a transformational planning process, it must start with the CFO. According to an article in McKinsey Special Collection The Role of the CFO, Why CFOs need a bigger role in business transformations, “without the CFO’s leadership, certain key elements of the transformation are likely to receive short shrift: performance efforts will lack a meaningful benchmark to gauge success, managers will be tempted to focus on the biggest or most visible projects instead of those that promise the highest value, and expected transformation benefits won’t make it to the bottom line.” It’s Time for CFO’s to Leverage Transformational Planning.
How to Start the Journey
Are you wondering where to start on the road to Transformational Planning? Well over the next few weeks Lodestar Solutions will share tips on how to start this game changing adventure. The first step is committing to learn a better way and exploring how Transformational Planning will benefit your organization!
On September 28, 2021 at 11 am Eastern Lodestar will be hosting a webinar.
Mastering Transformational Planning: Why CFOs Should Lead this Initiative?
Transformational Planning is a connected approach to financial planning, forecasting and even budgeting where data from different sources is consolidated in real-time. Then business users, finance and beyond can model and compare scenarios, identify trends, and create rolling forecasts to enable the CFO and other executives to anticipate the changes and respond quickly.
In this webinar you will learn:
Why every CFO must discover and lead Transformational Planning,
How to move your organization to Transformational Planning
To Register for this complimentary webinar click here.
If you have questions about Transformational Planning reach out to us at Services@lodestarsolutions.com to schedule a chat.