Why Integrated Planning & Reporting?

The other day I talked to a large consumer packaged goods (CPG) company about their vision on integrated planning. I was introduced to the Management Business Review of Oliver Wight. In the monthly Management Business Review meeting demand, supply, new product, financial, and resource projections are reviewed and decisions required to ensure the execution of the business strategy are made. To monitor the execution of an effective planning process the following 4 questions are addressed during the meeting at this CPG company:


1. Did we do what we said we should do?
2. Are our plans good enough to reach our targets?
3. Are we on plan financially?
4. What are the gaps and is the action plan to solve these?

 

In order to be effective during the meeting the following information needs to be available:
 

1. Integrated plan visibility over the next 24 months. The integrated plans should cover new products, demand, supply and a relevant financial evaluation.

2. Proposals to close the gaps between the latest projections and strategic and business plans.

3. One set of numbers based on credible data and information for e.g. profitability analysis by product and/or customer and variance analysis on e.g. production costs.

 

integrated planning and reporting processes

 

So we are talking about budget, rolling forecast, what-if and reliable actual figures at the right granular level to take decisions. For integrated planning & reporting we need an integrated set of data, without the possibility to have misinterpretation when data is coming from different sources and can have different definitions, which is often the case. Also I would like to stress that the actual data is required for an unambiguous profitability and variance analysis to make this work. That's why I'm talking about integrated planning & reporting!

When implementing this approach on integrated planning this CPG company started with changing People's mind-set, improve the Process and lastly adjust the Systems to align people on plans and not only on the P&L and to implement this change. I see also the approach to change the System as an enabler to change the People and Process as well.

I'm interested to learn what's your view on this last approach and if Tagetik is capable to provide a solution with enough depth for integrated planning & reporting? Read more details here 

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