Remember, unleashing the true value of finance is NOT only about finance. It’s not only about revenues or expenses. It’s also about unleashing value across the organization. It’s also about driving measurable business performance. And to do that, the organization must focus on what actually impacts the business. As modern finance leaders, part of our job is to create processes to help translate how changes in the business impact the P&L, balance sheet and cash.
Align Detailed Business Plans with Financial Goals
By aligning detailed business drivers and KPIs to financial plans, organizations create focus on what truly moves the needle. As a finance leader, you can create opportunities to better engage your business partners. And with better dialogue and engagement, you can help drive accountability. For example, consider the following potential dialogue with your business partners in Sales and HR:
- What are the top 3 new customer opportunities for the next quarter? Let’s talk about each and their opportunities and risks.
- Why is “customer X’s” forecasted volume up 25% in the next 6 months vs. the trailing 3-month run-rate?
- How many new Operations people are required to handle this new volume and potential new customers coming on board?
- How much training per employee should we plan for? What’s the training ramp time per employee before an employee is fully productive?
- What are the market labor rates and benefit assumptions per employee?
Do you notice the key theme? Not one of these questions are about revenue or expenses. They’re 100% focused on the actual drivers that impact the business. The factors that your business partners in Sales and HR live and breathe by day in and day out – and are held accountable to. And of course, by focusing on key business drivers, you become a finance leader who can ensure your business partners are dialed in and have the flexibility to shift on a dime.
Agility and Innovation Unleashes Finance
Driving agility in budgeting, planning & forecasting is powerful. It’s empowering for finance teams who need to break free from CPM 1.0 systems. For modern finance teams, having agility is non-negotiable. It’s now table stakes. And by creating agility with a CPM 2.0 platform, finance leaders can leverage this foundation to be creative. A foundation for innovation within finance and beyond.
That’s finance unleashed!
Stay tuned for additional posts from our blog series titled “5 Steps to Unleashing the True Value of Finance.” To learn more about how to unleash your finance team or OneStream Software, download our whitepaper titled Finance Unleashed: Enabling Modern Finance with CPM 2.0 Platforms.
 Ventana Research: “Let’s Talk About the Business Not Just the Budget”
Re-posted with permission from Source