The document discusses best practices for enterprise performance management (EPM) and budgeting processes. It outlines challenges with traditional spreadsheet-driven budgeting approaches and how purpose-built planning applications can help by linking strategic goals to plans, monitoring execution, and providing consistent insights across the enterprise. Real-world examples from Texas Children's Hospital and Wyman Gordon show how EPM solutions have helped streamline budgeting and given managers better access to timely forecast data.

1. Fix Your Forecast and Build Your Budget Best Practices for Enterprise Performance Management Emil Fernandez, General Manager EPM National Practice June 29, 2010

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4. Our Solutions

5. Why do we Budget?

8. Reason #1: Spreadsheet driven

9. Reason #2: Long Cycle Times

10. Reason #3: Complexity of Business Metrics

11. Reason #4: Disconnected

12. So why is it this way?

13. Transactional Systems vs. Management Systems

15. How new? Corporate Performance Management (CPM) Gartner 2001 Business Performance Management (BPM) Hyperion 2003 Enterprise Performance Management (EPM) Oracle 2007

16. So what is EPM anyway and why should I care?

18. Management Processes Exist in Silos ANALYZE PERFORMANCE GOAL SETTING SCORECARDS FINANCIAL REPORTING FINANCIAL MODELING VARIANCE ANALYSIS ROLLING FORECAST OPERATIONAL PLANNING MONITOR RESULTS

21. EPM Favors More Complex Organizations Complexity Basic Reports Mgmt Rpts Analysis Financial Reporting Private Public Multi-National Multi-Division Financial Modeling Performance Management Small Medium Large Size

24. Time Competitive Advantage OPERATIONAL EXCELLENCE MANAGEMENT EXCELLENCE Cost – Lean and Mean Quality – Six Sigma, TQM Speed – Real-time, JIT Smart – Actionable Insights Across Enterprise Agile – Adaptable to Changing Business Conditions Aligned – Consistent View of Performance

25. Enterprise Performance Management (EPM) World-class EPM organizations deliver 2.4 times the equity market returns of industry-peer companies Source: CFO Challenges and Opportunities in the Flat world 1.0 2.40 Peer Group World-Class

27. How do I apply EPM Principles to the Budget process?

30. Planning Applications – Key Components Managers Web Forms Centralized Database Planning Manager Approve Deny Promote Manage Report Analyze Model Actuals GL OLAP

31. Features & Benefits (continued) Feature Benefit Automated Reduces Errors, reduces cycle times Web-based forms Gets away from e-mailing spreadsheets Secure People see only what they need to see Workflow Increases efficiency, reduces cycle times Flexible Able to run multiple what-if scenarios

32. Planning Applications – Features & Benefits Feature Benefit Centralized database Single version of the truth (raw data) Calculation Engine Single version of the truth (business rules) Summary-level data Ultra-fast performance, reduces cycle times Easy-to-generate reports Facilitates analysis, reduces cycle times Ability to load actuals Measure and improve enterprise performance

33. Does it really work? Yes.

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