Driver-Based Budgeting and Rolling Financial Forecasts   28-slide PPT PowerPoint presentation slide deck (PPT)
$49.00

Driver-Based Budgeting and Rolling Financial Forecasts (28-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Driver-Based Budgeting and Rolling Financial Forecasts (28-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Driver-Based Budgeting and Rolling Financial Forecasts (28-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Driver-Based Budgeting and Rolling Financial Forecasts (28-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Driver-Based Budgeting and Rolling Financial Forecasts (28-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Driver-Based Budgeting and Rolling Financial Forecasts (28-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Driver-Based Budgeting and Rolling Financial Forecasts (28-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Driver-Based Budgeting and Rolling Financial Forecasts (28-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Log in to unlock full preview.
Driver-Based Budgeting and Rolling Financial Forecasts (28-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Driver-Based Budgeting and Rolling Financial Forecasts (28-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Driver-Based Budgeting and Rolling Financial Forecasts (28-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Driver-Based Budgeting and Rolling Financial Forecasts (28-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Driver-Based Budgeting and Rolling Financial Forecasts (28-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Driver-Based Budgeting and Rolling Financial Forecasts (28-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Driver-Based Budgeting and Rolling Financial Forecasts (28-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Driver-Based Budgeting and Rolling Financial Forecasts (28-slide PPT PowerPoint presentation slide deck (PPT)) Preview Image
Arrow   Click main image to view in full screen.

Driver-Based Budgeting and Rolling Financial Forecasts (PowerPoint PPT Slide Deck)

PowerPoint (PPT) + supplemental PDF 28 Slides

$49.00
This presentation is developed a former consultant at Deloitte, KPMG, HP, and SAS, who is an internationally recognized EPM/CPM expert, speaker, and Wiley & Sons published author with almost 50 years of experience.
Add to Cart
  


Immediate download
Fully editable PowerPoint
Free lifetime updates

BENEFITS OF THIS POWERPOINT DOCUMENT

  1. Understand the deficiencies with the traditional annual budget process.
  2. Learn how to apply unit-level cost consumption rates with sales demand forecasts to project operational expenses and to include strategic and risk mitigation projects in expense projections.
  3. Learn how to shift from bottom-up general ledger cost center consolidations to top down financial modeling.

BUDGETING & FORECASTING PPT DESCRIPTION

This product (Driver-Based Budgeting and Rolling Financial Forecasts) is a 28-slide PPT PowerPoint presentation slide deck (PPT) with a supplemental PDF document, which you can download immediately upon purchase.

There is a shift in emphasis from historical reporting to predictive costing such as capacity-sensitive driver-based rolling financial forecasts, what-if analysis, and marginal cost analysis (e.g., pricing).

The annual budgeting process is being criticized as obsolete soon after it is published, prone to gamesmanship, cumbersome to consolidate cost center spreadsheets, not being volume sensitive, and disconnected from the strategy. The challenge is how to resolve these deficiencies. It can be done through driver based expense projections also useful for decision analysis.

The annual budget is often perceived as a fiscal exercise done by the accountants that is: (1) disconnected from the executive team's strategy, and (2) does not adequately reflect future volume drivers. The budget exercise is often scorned as being obsolete soon after it is produced, and biased toward politically muscled managers who know how to overstate and "pad" their budget request. To complicate matters, traditional budgets are typically incremented or decremented by a small percent change from each cost center's prior year's spending level. This "use it or lose it" behavior by managers in the last few months of the fiscal year unnecessarily pumps up their prior year's costs and consequently confuses analysis of who really needs how much budget in the coming year.

Today organizations are shifting to rolling financial forecasts, but these projections may include similarly flawed assumptions that produce the same sarcasm about the annual budgeting process.

What is the solution to these poor budgeting and rolling financial forecast methods?

Entrepreneurs know the age-old adage, "You need to spend money to make money." Excessively tightening the belt on an organization's spending can jeopardize its success. Rather than evaluating where costs can be cut, it is more prudent to change views and ask where and how the organization should wisely spend money to increase its long-term, sustained value. This involves planning for future expenses, but the annual budgeting and rolling financial forecast process has deficiencies.

Four components of the enterprise performance management (EPM) framework can be drawn on to resolve these limitations. They are a strategy map, a risk management matrix, capital projects, and activity-based costing principles. The first three are project-based and the last for recurring operational expense projections. Ideally, the correct and valid amount of future spending for capacity and consumed expenses should be derived from two broad streams of workload that cause the need for spending – demand driven and project driven. Demand-driven expenses are operational and recurring from day to day. Their requirements are typically from customers. In contrast, project-driven spending (e.g., strategy initiatives, risk mitigation) is nonrecurring and can be from days to years in time duration. How are these two demands on an organization's workload integrated into a budget?

Most executive teams request frequent updates and revisions to the financial budget. These are referred to as rolling financial forecasts because the projection's planning horizon may be as much as 18 months to two years beyond the fiscal year-end date. Imagine if you are a CFO or financial controller required to re-process the budget as a rolling forecast quarterly (or even monthly). There are not enough spreadsheets to do it! Only computer automation that integrates several of the methods of the enterprise performance management (EPM) framework, including good predictive analytics, allows an organization to produce valid capacity-sensitive driver-based rolling financial forecasts.

Organizations with a formal strategy-execution process dramatically outperform organizations without formal processes. Building a core competency in strategy execution creates a competitive advantage for commercial organizations and increases value for constituents of public sector organizations. You can learn to manage strategy. It is important to include and protect planned spending for strategic and risk projects in capacity-sensitive driver-based budgets and rolling financial forecasts. Those projects lead to long-term, sustainable value creation.

This presentation is ideal for managers who have struggled to advocate for rolling financial forecasts over traditional budgeting. It also serves those looking to champion driver-based budgeting and rolling forecasts within their organizations.

Got a question about the product? Email us at support@flevy.com or ask the author directly by using the "Ask the Author a Question" form. If you cannot view the preview above this document description, go here to view the large preview instead.

Source: Best Practices in Budgeting & Forecasting, Management Accounting PowerPoint Slides: Driver-Based Budgeting and Rolling Financial Forecasts PowerPoint (PPT) Presentation Slide Deck, Gary Cokins


$49.00
This presentation is developed a former consultant at Deloitte, KPMG, HP, and SAS, who is an internationally recognized EPM/CPM expert, speaker, and Wiley & Sons published author with almost 50 years of experience.
Add to Cart
  

ABOUT THE AUTHOR

Author: Gary Cokins
Additional documents from author: 6

Gary Cokins is an internationally recognized expert, speaker, and author in business analytics enterprise and corporate performance management (EPM/CPM) improvement methods (e.g., strategy map and its balanced scorecard; product, channel, customer profitability reporting usinf activity-based costing; driver-based rolling financial forecasts).

He is the founder of Analytics-Based ... [read more]

Ask the Author a Question

You must be logged in to contact the author.

Click here to log in Click here register

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.
Bundle and save! You can save up to % with bundles!

View bundle(s)




Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab




Read Customer Testimonials

 
"FlevyPro provides business frameworks from many of the global giants in management consulting that allow you to provide best in class solutions for your clients."

– David Harris, Managing Director at Futures Strategy
 
"As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."

– David Coloma, Consulting Area Manager at Cynertia Consulting
 
"Flevy is our 'go to' resource for management material, at an affordable cost. The Flevy library is comprehensive and the content deep, and typically provides a great foundation for us to further develop and tailor our own service offer."

– Chris McCann, Founder at Resilient.World
 
"I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact "

– Roberto Pelliccia, Senior Executive in International Hospitality
 
"As a consultant requiring up to date and professional material that will be of value and use to my clients, I find Flevy a very reliable resource.

The variety and quality of material available through Flevy offers a very useful and commanding source for information. Using Flevy saves me time, enhances my expertise and ends up being a good decision."

– Dennis Gershowitz, Principal at DG Associates
 
"As an Independent Management Consultant, I find Flevy to add great value as a source of best practices, templates and information on new trends. Flevy has matured and the quality and quantity of the library is excellent. Lastly the price charged is reasonable, creating a win-win value for "

– Jim Schoen, Principal at FRC Group
 
"If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"

– Debbi Saffo, President at The NiKhar Group
 
"[Flevy] produces some great work that has been/continues to be of immense help not only to myself, but as I seek to provide professional services to my clients, it gives me a large "tool box" of resources that are critical to provide them with the quality of service and outcomes they are expecting."

– Royston Knowles, Executive with 50+ Years of Board Level Experience




Save with Bundles

This document is available as part of the following discounted bundle(s):

Save %!
Analytics-Based Enterprise and Corporate Performance Management

This bundle contains 5 total documents. See all the documents to the right.

$179.00


Add Bundle & Save


Your Recently Viewed Documents

Customers Also Bought These Documents


Customers Also Like These Documents

Related Management Topics


Budgeting & Forecasting Strategic Planning Cost Optimization Costing Cost Analysis Company Cost Analysis Cost Accounting Product Costing Activity Based Costing Management Accounting Bain PowerPoint McKinsey PowerPoint Bain Presentations Bain Frameworks Boston Consulting Group PowerPoint Consulting Frameworks Strategy Frameworks PwC PowerPoint Mercer PowerPoint Bain Templates Accenture Templates McKinsey Templates Boston Consulting Group Templates Accenture PowerPoint Consulting Methodologies Booz Documents PwC Templates Capgemini PowerPoint Oliver Wyman Presentations Strategy Frameworks Compilation Boston Consulting Group Frameworks E&Y PowerPoint Consulting Training IBM Presentations Oliver Wyman Templates Strategy Consulting Frameworks Bain Documents IBM Documents Capgemini Documents Roland Berger PowerPoint A.T. Kearney PowerPoint BCG Documents Accenture Frameworks BCG Frameworks BCG PowerPoint Oliver Wyman PowerPoint Consulting Documents BCG Presentations A.T. Kearney Documents Management Consulting Frameworks BCG Templates E&Y Templates Roland Berger Presentations Capgemini Templates Boston Consulting Group Documents LEK Frameworks Booz Allen Presentations E&Y Frameworks McKinsey Presentations Booz Allen Frameworks A.T. Kearney Frameworks IBM Templates Booz Allen PowerPoint Accenture Documents Accenture Presentations A.T. Kearney Templates McKinsey Frameworks Boston Consulting Group Presentations McKinsey Documents LEK PowerPoint Mercer Templates Roland Berger Frameworks Capgemini Frameworks Booz Presentations Roland Berger Templates PwC Frameworks Strategy Methodologies Booz Allen Templates Booz Templates Strategy& Presentations Management Consulting Training Oliver Wyman Documents Mercer Presentations LEK Documents PwC Presentations LEK Templates IBM PowerPoint Capgemini Presentations E&Y Documents Oliver Wyman Frameworks Booz Allen Documents PwC Documents IBM Frameworks Mercer Frameworks Mercer Documents LEK Presentations Booz PowerPoint Booz Frameworks Strategy Documents A.T. Kearney Presentations Roland Berger Documents Business Frameworks E&Y Presentations Strategy& PowerPoint Deloitte PowerPoint Consulting Process A.T. Kearney Frameworks A.T. Kearney PowerPoint A.T. Kearney Templates A.T. Kearney Documents A.T. Kearney Presentations Gap Analysis Organizational Design Core Competencies Organizational Alignment Organizational Effectiveness Core Competence Organizational Development Core Competencies Analysis Market Research Market Analysis Market Intelligence Positioning Excel Project Plan Project Planning Workbook Excel Project Management Consulting Project Management Problem Solving Structured Thinking Financial Analysis Financial Statement Analysis Financial Ratio Analysis Balanced Scorecard Integrated Financial Model Company Financial Model Business Plan Financial Model Manufacturing Six Sigma Project Six Sigma Lean Six Sigma Green Belt Lean Six Sigma Black Belt Supply Chain Analysis Supply Chain Management Supply Chain SCOR Model Process Maps Process Mapping Scenario Planning Disruption Scenario Analysis

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.