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Prepare for Growth with Driver-based Budgeting and Planning

Prepare for Growth with Driver-based Budgeting and Planning

In good economic times and bad, all organizations need to efficiently allocate resources to both company operations and special projects. Transparency and flexibility are vital to planning processes, so as economic conditions change, organizations can use information to make decisions and determine how to reallocate resources for the future and reduce costs. Today’s companies require:

  • Accurate and reliable rolling forecasts — the need to forecast out sales and production does not stop just because of a yearend cut off
  • More frequent plans — the plans become an operational tool rather than an annual budget and you increase the forecast reliability
  • Driver-based planning — state sales and production in operational terms, rather than financial reporting terms, to keep the planning process close to those who provide the key business insights in an actionable form

As you prepare to gear up for the growth in an unsettled economy, you might want to explore the benefits of Driver-based planning and how it differs from Project based plans.