Getting back to what’s really important in planning, budgeting, and forecasting
For most consumer products (CP) executives, the process for planning, budgeting, and forecasting (PBF) is inconvenient at best and irrelevant at worst. Time is spent and resources wasted, on an overly complicated process. For what?
When we asked that old question recently, we came up with a new answer: PBF should put value back in the business.
In the 2009 article, “Rethinking the numbers game: Putting “value” front-and-center in planning, budgeting, and forecasting,” Deloitte describes the way we believe PBF should work — as a backbone process that allows a CP company to fund initiatives based on their contribution to the realization of the enterprise strategy (value creation), to maintain and protect the current value of the enterprise (value stewardship), and to align performance with the strategic plan (value management).
Put another way, we imagined a PBF process that makes “value” the point of the exercise.
In this 2010 article, “Value matters: Getting back to what’s really important in planning, budgeting, and forecasting,” Deloitte takes a closer look at how a simplified PBF process can unlock value creation opportunities for CP companies. However, revamping your planning process is not something that can be done overnight — the process has a lot of moving parts and touches a lot of stakeholders. But most CP companies would benefit from the approaches and recommendations explored in this article.
We believe that planning for specific growth initiatives, simplifying and shortening the process, and developing a strategic performance management approach can pay large dividends and help to maximize the value of the enterprise.
Download the full "Value Matters" report below.
As used in this document, ‘Deloitte’ means Deloitte LLP (and its subsidiaries). Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.