How to Build Intelligent Variance in your Performance Reporting

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“PLANNING IS ESSENTIAL NOT BECAUSE WHAT IS PLANNED IS GOING TO HAPPEN BUT BECAUSE WHAT IS ABOUT TO HAPPEN CAN BE CONSIDERD AGAINST WHAT WAS PLANNED”.
~ Umesh Biyani
This is where the variance reporting plays an important role in explaining the causes behind what was planned & what has happened.
Historically Businesses would be using Variance Report which would look something similar:
This is followed by a commentary process explaining the cause of variance.

While this report helps you to understand that there is a variance, but doesn’t do much justice in explaining the actual cause of the variance.

A variance in a numeric term should the variance Type such as following:

  • Favourable variance (positive; better than planned)
  • Adverse variance (negative; worse than planned)

​Another way of reporting of the same data which really delivers insights to Management Team as Good Vs Bad Performance:

Business increasingly need a tool which would automatically help you to understand the cause of the variances, explain the variances without much of human intervention.

Now that we have understood the significance of variance reporting, in the next series of these blogs, we would explore how modern tools such as Anaplan can help you to deliver true causes of variances for your performance reporting to your Business stakeholders.

Stay tuned folks!

About the Author(s):

Umesh Biyani

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.

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