Uncertainty strikes which is not in the Business Plan?

"In theory, there is no difference between Theory and Practice but in Practice there is"~ J.L.A van de Snepscheut (1953-1994)

You have just finished your Business Planning for next year, have got following in place:

• Identified the Strategy for the next Year (FY)
• Set the growth objectives
• Have the budgets (Resource Allocations Plans)
• Gotten the cashflow forecast system up and running,
• Obtained firm commitments from your own Team
• Spoke with Key major customers, gotten them to include your revenue plans into their own Budgets

Then bang!, one of your Customer goes bust or undergoes major restructuring or there is a change in of regulation in your Industry or there is a major crisis which affects your business. So much time has been spent on planning and now back to fire fighting.

​Before answering the firefighting question, let’s first of all consider why planning is essential.

On the firefighting side, appropriate action need to be taken, off course this is easier said than done but that’s where planning pays off. First need to consider the negative or the positive impact of the unexpected event and adjust your projections for Income & Expenditure predictions. Most important projection is of Cashflow forecast. A simple budget geared to your Business is useful but Cashflow is King. Never forget that measuring and projecting cashflow is infinitely more important than having a detailed budget. Accountancy is history, a cashflow forecast is guest estimating the future of your business.

Sound planning should allow you to consider critical success factors and keep at the level that you need to stay in Business.

The underlying message is that plans formulated will always undergo changes in practice in ever changing world while that’s not in your control, what is in your control is to be ready to plan every time there is a major change happening in your business. Please do not confuse these planned changes with producing twenty “What If “Scenarios. The latter is almost too easy with the modern spreadsheet based technology, but a total waste of time for ever changing businesses today. Hence it makes sense to visit plans more often with focus on Critical Success factors such as Customers & Income/Expenditure & Cashflow and adjust the plans & budgets accordingly.

In simple in today’s every changing word:

• Plan. It’s essential. Not because what is planned is going to happen but because what is about to happen can be considered against what was planned
• Devise Plan B , for major event, have focus on critical success factors to stay in Business
• KISS: Keep it Simple (not simpler)
• Create Rolling projections and cashflow forecasts
• 
  

For enterprises which are using traditional method to planning, there is good news.

The Rolling Projections App is available on Anaplan’s application Hub which allows the user to have a complete view of the defined forecast period without the need to change settings or perform ad-hoc queries.
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To learn how to get create Rolling projections and cashflow forecast in a simple and easy way, we have a solution! Free feel to request a demo to learn more.

Click here to learn more and request a demo

About me:

Umesh Biyani has 15 years of work experience in Enterprise Performance Management and Analytics.He holds a Master’s degree from IIT Roorkee, and prior to Anaplan worked as Partner and Client Director for EPM Consulting Organization based out of Singapore. He specialized in working with CFOs and finance organization to define their EPM vision. Besides work, Umesh enjoys the gym and meditation.