In the past decade, numerous large, high profile, thought to be strong and wealthy companies have disintegrated as their underlying fiscal structure crumbled under the strain of an unexpected or uncontrolled event. Some of these supposedly 'unbreakable' enterprises have been brought to their knees, and without government assistance many that survived would have collapsed.
The Financial Performance Management cycle provides ongoing monitoring, analysis and revision of financial forecasts and budgets to ensure organisations stay on track with their strategic plans.
Maxiplan uses the latest web technologies to provide powerful client side functionality whilst centralised storage of data, models and reports ensures users can collaborate and connect from any client computer using a browser with the appropriate login and password.
Here's a high level view of the Financial Performance Management cycle:
- Strategic Planning - typically carried out by an organisation's executives on a periodic basis (usually annually) to define the strategic focus required to deliver agreed objectives. A high level strategic plan is often produced.
- Performance Budget - involves creating a baseline operational budget and overlaying it with realistic costs for proposed initiatives to help deliver desired outcomes. This process may involve several iterations to create an agreed budget forecast, and typically requires input from several participants.
- Monitor Performance - the real value is monitoring performance to ensure successful execution of strategy and further validate the effectiveness of strategic initiatives.
- Analyse and Identify - this stage is important to assist in focusing on success. Wherever an anomoly in performance is identified, we need to look deeper in order to identify underlying causes and then develop potential solutions.
- Revise Forecast - having identified potential causes for variance, the forecast may need to be revised, corrected or tuned accordingly. This could involve adjusting income and expense assumptions, discarding strategic initiatives that are not working, and/or introducing new initiatives. Accurate re-forecasting often involves collaboration with business and operational staff.
With Maxiplan, detailed information can be analyzed or reported using data derived from existing data sources or collected directly through the browser.
CONTACT US today to find out how Maxiplan can help you analyze the past, monitor the present, and plan the future.