Strategic planning

Substantiating strategy using driver models

In many companies, strategy development and financial planning often exist in two separate worlds. This reduces the probability that a strategy will be implemented. In addition, planning is limited to extrapolate the status quo, being supplemented with operational improvements where possible. Strategy-based medium-term planning using simulated driver models provides a connection between these two worlds.

Front loading

Ensuring consistency through to budgeting

Strategy-based mid-term planning focuses on the most recent forecast and integrates strategic ideas of market and cost developments as well as strategic measures. Simulation-capable driver models make it possible for you to view scenarios strategically and make reasonable decisions. As a result, planning has reliable and strategy-based target values for operational planning and budgeting in year 1. We refer to this process as front loading. It is one of the strongest levers you can use to improve your planning, especially with regard to its benefits and efficiency.

Active management

Discussing and modeling the future

The ability to quantify developments and scenarios quickly is of increasing importance for your company in a world that is more volatile every day. If you can anticipate and evaluate potential developments in an efficient manner, you are ahead of the competition. Our experienced performance management experts are happy to help you create and implement driver-based simulation models and predictive analytics.

A series of companies have developed their planning processes accordingly. Driver models are helpful in many ways:

Establishing a common language for strategy, finance, and management
In reporting as the basis for guided navigation and as a supplement or replacement for commentary
For use in forecasts so that changes of individual sizes (e.g. volume) can be “calculated through” in a simple manner
Integrating prognosis models based on predictive analytics