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CathyFregeletteFinancial Practice Director,BroadPoint
JohnHerbstrittChief Solutions Architect,BroadPoint
NilsRasmussenCEO,Solver
© 2016 BroadPoint Technologies | Slide 2
JosephJanelaCFO,APhA
© 2016 BroadPoint Technologies | Slide 3
12 Ways to Budget Better in 2017Cathy Fregelette and John Herbstritt
APhA Case StudyJoseph Janela
Solving the Problems with BI360Nils Rasmussen
Closing Comments and Q&A
© 2016 BroadPoint Technologies | Slide 4
Budget
Operate
Strategize
Align Your Strategies
and Budget1. Keep your eye on the goal
2. Get the right people
involved
3. Meet in the middle
4. Align your
technology to support
your strategy
Build Your
Operational Budget5. Choose the right tool for the job
6. Standardize & fortify the templates
7. Monitor workflow and approvals
8. Lock down your budget
Live with and
Love Your Budget9. Implement an
“early warning” system
10. Roll your forecast forward
11. Start planning early
12. Build one source of the truth
Budget
Operate
Strategize
That’s why nearly 1 in 3 associations don’t do it – and those that say they do, 19% don’t even write it down!
Your strategic plan must drive your budget, and your budget must be allocated among your strategic initiatives. Period. Do you have an actionable strategic plan? Do you link your financial budget to drive your
strategic outcomes?
© 2016 BroadPoint Technologies | Slide 5
Strategic planning is difficult
© 2016 BroadPoint Technologies | Slide 8
RED FLAGS Do you have a roadmap for your business?
Are you monitoring indicators related to you eco-
system?
If you ask 10 people what the goals are, how many
different answers will you get?
BEST PRACTICE Introduce how organizational goals actually link to
initiatives
Set SMART goals to track progress
Align your strategic plan to
monitoring mechanisms
#1 – Keep your eye on the organizational goal
#2 – Get the right people involved
© 2016 BroadPoint Technologies | Slide 9
RED FLAGS Finance or Operation teams are disconnected
from executive strategic planning
Limited insight on the progress of your
division/ department/ fund/ project managers
Manager wearing multiple hats
BEST PRACTICE Revisit your organization chart
Identify teams and roles to ensure buy-in to
the plan
#3 – Meet in the middle
© 2016 BroadPoint Technologies | Slide 10
RED FLAGS Cannot meet strategic goals with budget
process
Top-down strategy does not match bottom-up
team member input on a consistent basis
BEST PRACTICE
Realign operational plans to achieve strategic
goals
Establish and enforce your budget alignment
through a central database process
#4 – Align technology to the strategy
© 2016 BroadPoint Technologies | Slide 11
RED FLAGS Strategy PowerPoint Budget Spreadsheets
Difficult to get insights from financial system
to understand progress against goals and
strategic initiatives
Key operational information is missing in
budget
BEST PRACTICE
Financial System – Configure it to report on
your strategic progress
Other Systems – Make necessary changes to
other systems to provide critical data
#5 – Use the right tools for the job
© 2016 BroadPoint Technologies | Slide 15
RED FLAGS A spreadsheet only approach resulting in
multiple data sources
Cutting, pasting & re-entering
the same data
Unstable macros
No version control
Manual consolidation and roll-up
BEST PRACTICE
Approach your budget with an integrated set
of tools
#6 – Standardize & fortify budget templates
© 2016 BroadPoint Technologies | Slide 16
RED FLAGS Different spreadsheets per department or
manager
Provided templates not being used
Template being altered or changed
BEST PRACTICE
Build a standard template and share it with
your team
Tie your template to the data source
Lock down the ability to modify templates
#7 – Monitor workflow & approvals
© 2016 BroadPoint Technologies | Slide 17
RED FLAGS No structure for approvals
Unable to track the progress of the budgeting
process
BEST PRACTICE
Create a collaborative portal for teams and
budget managers
Formalize the flow of approvals
Provide real-time visibility of budget status
#8 – Lock down your budget
© 2016 BroadPoint Technologies | Slide 18
RED FLAGS Budget is not finalized
Budget is not uploaded into your financial
system or your budget database
Unauthorized budget changes post board
approval
BEST PRACTICE
Implement system controls to restrict budget
entry or changes
Budget
Operate
Strategize
Manual & Retrospective
Your budget has been approved, but now that means you need to live with it… and within it!
© 2016 BroadPoint Technologies | Slide 19
#9 – Implement an “early warning” system
© 2016 BroadPoint Technologies | Slide 22
RED FLAGS Caught over-budget and too late to react
BEST PRACTICE
Provide stakeholders with year-to-date actuals
vs. budget in real time
Implement a solution to monitor the
conditions on a timely basis
Configure automated alerts for over/ under
target
#10 – Roll your forecast forward
© 2016 BroadPoint Technologies | Slide 23
RED FLAGS Relying on month-old financial data to make
critical business decisions
Unable to project where you will land at the
end of current period… or fiscal year
BEST PRACTICE
Provide a view of the year with your actual,
budget & forecast to-date
Reevaluate assumptions and adjust forecasts
based on changes in market conditions
#11 – Start planning early
© 2016 BroadPoint Technologies | Slide 24
RED FLAGS A “Big Bang” budget approach near year-end
Limited to no forecasting
BEST PRACTICE
Reforecast on a regular basis to be a step
ahead for next year’s budgeting process
Automate estimates of future periods based
on your 12 month trajectory
#12 – Build one source of the truth
© 2016 BroadPoint Technologies | Slide 25
RED FLAGS No one place to go for the latest numbers
Every department has its own method for
monitoring and managing budget
BEST PRACTICE
Deploy common portal to entire organization
for collaboration on the “GBU”
Adoption and access for managers &
stakeholders to vetted reports and budget
entry templates
© 2016 BroadPoint Technologies | Slide 26
12 Ways to Budget Better in 2017Cathy Fregelette and John Herbstritt
APhA Case StudyJoseph Janela
Solving the Problems with BI360Nils Rasmussen
Closing Comments and Q&A
• Individual Membership Organization
• Founded in 1852
• 62,000 Pharmacists (chain; independents; academia; students)
• Meetings, publishing, training programs, certification, government grants (HHS)
• $36 million budget
• 122 staff (38 budget managers)
© 2016 BroadPoint Technologies | Slide 26
• Strategic Plan
• Annual Budget Process
• Monitoring the Budget
© 2016 BroadPoint Technologies | Slide 28
What We Have:• Strategic Directions Committee
• Written plan with mission, goals, objectives, tactics & KPM’s
• Management teams involved in the process
• Annual review to determine the top mission and top support goals
What We Struggle With:• Linking the plan to the budget
• Measuring & reporting on the KPM’s
Priority for the 2017 Budget Process
© 2016 BroadPoint Technologies | Slide 29
Expectation gap: • Staff wanted a “one-stop” budgeting software system “to prepare their budgets”.
Timing 1 (Budget Staff):• Budgets needed to be prepared for the mid-Sept. Finance
• Committee meeting; challenge with summer vacation schedules.
Timing 2 (Finance Dept.): • Took time to generate, scrub, reclass, & distribute June financials
(which squeezed Timing #1)
Timing 3 (Finance Dept. & Executive Team): • Not enough time to critically review & modify the budget
© 2016 BroadPoint Technologies | Slide 30
Various Methods Used to Prepare & Communicate the Budgets:
• Calculations (Excel)
• Narratives (Word documents)
• Narratives in emails
© 2016 BroadPoint Technologies | Slide 31
Expectation gap:
• Education, education, education.
Timing 1:
• Expanded the time period for budget development.
Timing 2:
• Reduced the time for distributing reliable June financials.
Timing 3:
• Earlier budget cut-off & Implementation of BI360
Varying budget methods:
• Developed standardized budget templates.
© 2016 BroadPoint Technologies | Slide 32
Education:
• Goal: get everyone on the same page (get “buy-in”)
• Mandatory budget meetings
• Detailed walkthroughs at the budget meetings
• Hand-outs with screen shots & arrows for every step
• Detailed chart of accounts with explanations and examples
© 2016 BroadPoint Technologies | Slide 33
Timing 2 – Reduced the Time to Produce Timely & Reliable Financials:
• Revenue Side
Obtained an in-depth understanding of all revenue entry points and established procedures to acquire that info asap at month-end.
• Expense Side
Developed a standard A/P invoice form for easier data entry
Established Strict cut-off dates for A/P, accrual & and payroll entries.
• Financial Statement Side
Developed trend analysis data to help identify unusual variances from the budget.
© 2016 BroadPoint Technologies | Slide 34
Timing 1 - Expanded the Time for Budget Development:
• With more timely & reliable June financial statements we were able to open & close the budget process earlier with more time in between (this was the big stress reliever)
© 2016 BroadPoint Technologies | Slide 35
Timing 3 – More Time to Review & Modify the Budget:
• BI360
Expedited the review process for me & the Finance dept.
o Budgets were locked down when “submitted”
o Able to review individual budgets as they were submitted
o Developed financial reports in BI360 that combined related program budgets, which allowed me to review from an “activities” perspective vs. a “department reporting” level (i.e. the true financial picture of an activity)
© 2016 BroadPoint Technologies | Slide 36
Timing 3 – More Time to Review & Modify the Budget:
• Standardized Budget Templates
o Calculation templates (revenue & some expenses)
o Template for major expenses ($5,000 +) with basis for determining the budget amount
o Template for major variances (+/- $10,000 AND >10%) with explanations for the changes
© 2016 BroadPoint Technologies | Slide 37
© 2016 BroadPoint Technologies | Slide 38
o Staff using their own data for status reports to their senior manager.
o Financials published late (reactive vs. proactive).
o “Christmas surprise” (year-end results significantly higher than the
projections developed in Sept & Oct).
© 2016 BroadPoint Technologies | Slide 39
o Finance took a more active role (numbers released to senior management, Finance Committee, & Board would come through Finance).
o Developed historical trend analysis for revenue & expenses.
o Published financials on a more timely basis.
o Budget monitoring approach:
Jan - April: concentrate on revenue (using trend analysis info)
May - June: review of expenses (compared to budget)
July - August: formal projections prepared by budget managers
Sept – Dec: monitor projections for major variances
© 2016 BroadPoint Technologies | Slide 40
12 Ways to Budget Better in 2017Cathy Fregelette and John Herbstritt
Solving the Problems with BI360Nils Rasmussen
Closing Comments and Q&A
APhA Case StudyJoseph Janela
Nils Rasmussen
- 27 years in the Business Intelligence industry
- CEO and Founder of Solver
- Author and speaker on BI subjects
Solver
- Founded in 1996
- 110 Employees and 220 reselling partners
- HQ in Los Angeles, 9 International Locations
- On Gartner CPM Magic Quadrant for 3rd year in the row in May, 2016
- 1,500 customers
© 2016 BroadPoint Technologies | Slide 41
Overall Vision
• Tying technology back to the Better Budgeting Approach™
How Solver supports each phase of the budget lifecycle (demo):
• Strategy
• Budget
• Operations© 2016 BroadPoint Technologies | Slide 42
© 2016 BroadPoint Technologies | Slide 47
12 Ways to Budget Better in 2017Cathy Fregelette and John Herbstritt
Solving the Problems with BI360Nils Rasmussen
Closing Comments and Q&A
APhA Case StudyJoseph Janela
© 2016 BroadPoint Technologies | Slide 48
Budget
Operate
Strategize
Align Your Strategies
and Budget1. Keep your eye on the goal
2. Get the right people
involved
3. Meet in the middle
4. Align your
technology to support
your strategy
Build Your
Operational Budget5. Choose the right tool for the job
6. Standardize & fortify the templates
7. Monitor workflow and approvals
8. Lock down your budget
Live with and
Love Your Budget9. Implement an
“early warning” system
10. Roll your forecast forward
11. Start planning early
12. Build one source of the truth
Contact BroadPoint for more information on available budgetingsolutions that may fit your needs or to schedule a demo of theSolver BI360 System.
John Herbstritt Cathy Fregelette
jherbstritt@broadpoint.net cfregelette@broadpoint.net(301) 634-2406 (301) 634-2414
info@broadpoint.net
(301) 634-2456
© 2016 BroadPoint Technologies | Slide 50
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