Henry Ford said: "Coming together is a beginning; keeping together is progress; working together is success."
So why don’t more organisations plan and forecast in a collaborative manner, involving operational managers in defining and refining the financial and operational forecast for future periods?
Experience and research suggests a great deal of the informed knowledge and judgement that an organisation possesses, and which can add integrity and insight to the planning process, lies within the operational management team on the front line.
In many cases, whilst the desire to involve a wider constituency in the planning process is there, the technology in use limits the ability of the organisation to move beyond centralised spreadsheet based planning or single user budgeting and planning tools.
Meeting the need for world class, low cost collaborative planning with outstanding reporting and analytics was the founding objective of Six Degrees.
Does it matter?
If budgeting and planning isn’t collaborative there’s potential for disconnect between strategy as set and planned at a senior level, the finance function and the understanding and expectations of operational managers whose day to day decisions will directly affect the achievement of the strategy.
Think about that for a minute. Ninety-five percent of your employees don't understand your strategy. If that's the case, how could they possibly perform at their peak? How could they possibly make the right decisions when doing their jobs? Clearly, they can't.
The evidence says it matters!
Aberdeen Research surveyed over 130 companies in mid 2015 to discover if collaborative planning - of the type delivered by Six Degrees Planning - could make a real difference to the health of an organisation, and contribute to its bottom line.
According to their research, organisations that improve collaboration in planning, budgeting and forecasting have:
- Improved access to timely, relevant information for more employees
- Reliable financial reporting
- More accurate budgets and forecasts
- Improved confidence in decision making
By taking a collaborative approach to financial planning, budgeting and forecasting, your organisation can operate more cohesively and equip business leaders with the information they need to run the business.
Contact Six Degrees to find out how to improve collaboration in planning, budgeting and forecasting within your organisation.