💥 Driver-based financial planning is an opportunity to transform the quality of your forecasts! Because you can create a connection between financial KPI's and underlying business drivers and activities. I have collated some great examples from thought leaders of how you can make these connections. And yes, many businesses are more complex than a simple tree diagram. 👉 BUT START SIMPLE, and build from there: 1️⃣ Choose 1 financial statement component, like revenue. 2️⃣ Meet with someone outside of finance and identify 2 underlying drivers and related activities. 3️⃣ Develop your financial forecast by integrating these drivers into your calculations. 💪 More and more are embracing driver-based planning. 🚀 And those who get it right are having a real impact across the business! 😃 Give it a go! 🙌 Credit to the creators of the fantastic visuals in this carousel: Paul Barnhurst, The FPandA Guy Andy Burrows Oana Labes, MBA, CPA Corporate Finance Institute® (CFI) Business Partnering Institute Christian Frantz Hansen Anders Liu-Lindberg #finance #fpanda #cfo
Jeroen Biesbroek
3mo
Great post Iain! I am a great fan of business drivers, as they reveal the true value creation potential for the long term. Check out Metics, it’s THE solution for driverbased planning.
Thanks for putting this together Iain Main
Tom Griffiths
3mo
Love the visua! Driver-based financial planning bridges the gap between KPIs and business activities, enhancing forecast accuracy.
Kris Uy
3mo
Thank you for putting this visual together!
Finance Director @ Allstate Insurance • I help FP&A teams become proactive by transforming their operating system
3mogreat breakdown of the importance of linking your business drivers to the financial performance. It's truly the gold standard in financial forecasting.