By TopDown Team
June 21st, 2016
We recently finished a very successful PBCS driver-based budgeting project. There are a lot of reasons why the project was successful. One big reason was the great team on the customer’s side. In particular, the customers project owner had a deep understanding of driver-based budgeting and how to use it to help his stakeholders. I’ve been pushing driver-based budgeting (and rolling forecasts) for many years and have done quite a few webcasts and Kscope presentations on the topic. In this case, seeing the benefits in the hands of a customer who really knows how to apply it, I found myself wondering why anybody ever does anything else.
If you haven’t already heard my argument here it is again.
Driver-based budgeting reduces the workload on planners because it requires far less data entry. The data planners do enter is more meaningful because, if designed properly, it makes you think about meaningful economic drivers that is, analysis instead of typing. The output is more meaningful because it’s based on meaningful economic drivers. And, as a developer driver-based budgeting is actually easier to build. That’s because, for the most part driver calculations fall into a handful of reusable methods. That makes them faster to implement and test. That means there is more time for the customized methods. You can find out more about benefits of driver-based budgeting here.
If you are a Hyperion professional, I have to believe you would prefer to work on a slick driver-based budgeting model rather than a non-driver-based alternative. If you are a Planner, I suspect you would prefer thinking about your goals and entering a few drivers instead of tons of typing or copying it all in from outboard Excel workbooks. If you are a senior finance person I’m sure you like timely budgets, that give you better insight without putting your team through the ringer.
So again, why does anyone do anything else? There must be some legitimate obstacles. Maybe if we identify those obstacles we can take steps to eliminate them.
That’s why I’m doing this poll. The poll will be a great summary. But it’s also a way to kick off an even more valuable conversation. So please, I am eager to her your thoughts.