1.
Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
Driver-based Budgeting and
Planning: Agility, Predictability, and
Alignment
Richard Barrett, Financial Software
Expert, Anaplan

2.
WHAT YOU NEED
FOR DRIVER-BASED
BUDGETING
Our Session Today
PLANNING &
BUDGETING
CHALLENGES
DRIVER-BASED
PLANNING &
BUDGETING

3.
Managing Volume, Complexity & Collaboration
In Real-Time
Planning, Budgeting
& Forecasting
Sales Forecasting
Territory & Quota Planning
Planning Sales Capacity Planning
Incentive &
Compensation
Configure, Price
& Quote
Demand Planning
Strategic Financial
Cash Flow Planning
Profitability
Analysis
SKU Level Forecasting
Financial
Consolidation
OPERATIONS
FINANCE
HR
Integrated Business Planning
Project Resource Planning
Workforce Planning
SALES
CAPEX Planning
Trade &
Promotional
Planning
10
locations
worldwide
100+
global & local
partners
100+
apps &
accelerators
1 trillion+
cells in our
models
Patented
technology
Hyperblock™
Founded in
2007
175+ global
customers
20,000+
engaged users
3x revenue
growth in 2013
$150M
in funding

4.
WHAT YOU NEED
FOR DRIVER-BASED
BUDGETING
Our Session Today
PLANNING &
BUDGETING
CHALLENGES
DRIVER-BASED
PLANNING &
BUDGETING

5.
Challenges with Budgeting Today
1 Takes too long &
Cannot reforecast
costs too much
2 as frequently as
3 4 desired
[OR NEEDED TODAY]
Not accurate
enough
Always out
of date

6.
Challenges with Budgeting Today
1 Takes too long &
Cannot reforecast
costs too much
2 as frequently as
3 4 desired
[OR NEEDED TODAY]
Not accurate
enough
Always out
of date
…and during this time many organizations have moved away from spreadsheets!

7.
BUDGET P&L
Total Premium
$
Total Cost of
Claim $
Line Item
Expenses $
Unifying Planning With Budgeting

8.
BUDGET P&L
Total Premium
$
Total Cost of
Claim $
Line Item
Expenses $
Unifying Planning With Budgeting
# Hits on
website
% Complete
Quote
Conversion Rate
%
Avg. Premium $
# Renewed
Policies
# Current
Policies
Mid term Lapse
Rate %
Renewal
Rate %
# Total Policies
# Quotes
# New
Policies

9.
BUDGET P&L
Total Premium
$
Total Cost of
Claim $
Line Item
Expenses $
Unifying Planning With Budgeting
# Hits on
website
% Complete
Quote
Conversion Rate
%
Avg. Premium $
# Renewed
Policies
# Current
Policies
Mid term Lapse
Rate %
Renewal
Rate %
# Total Policies
# Quotes
# New
Policies
Claims
Frequency %
# Claims
Avg. Cost of
Claim $
Claims Agent
Productivity
# Claims Agents
Needed
Avg Cost of
Claims Agents
Expense Cost $
Other Expenses

10.
Unifying Planning With Budgeting
OPERATION PLANNING
Typically done outside of Enterprise FP&A solution
BUDGET P&L
Total Premium
$
Total Cost of
Claim $
Line Item
Expenses $
# Hits on
website
% Complete
Quote
Conversion Rate
%
Avg. Premium $
# Renewed
Policies
# Current
Policies
Mid term Lapse
Rate %
Renewal
Rate %
# Total Policies
# Quotes
# New
Policies
Claims
Frequency %
# Claims
Avg. Cost of
Claim $
Claims Agent
Productivity
# Claims Agents
Needed
Avg Cost of
Claims Agents
Expense Cost $
Other Expenses

11.
“
DBP&B links
demand to the
resources needed
to fulfil that
demand and their
unit cost to model
key variable
expenses
”
Benefits

12.
“
DBP&B links
demand to the
resources needed
to fulfil that
demand and their
unit cost to model
key variable
expenses
”
Benefits
Quick, light-touch reforecasts - as frequently
as you want
Tighter alignment of capacity that falls
straight to the P&L
Better insight that leads to more incisive
actions
Less sandbagging that leads to greater
accountability and improved accuracy
Improved productivity as contributors no
longer have to maintain offline spreadsheets

13.
So What’s Holding Us Back?
Level of expertise needed to write rules
and maintain models
Upfront effort involved in building a driver
based model
Inability of traditional budgeting solutions
to cope with the increased data volumes

14.
WHAT YOU NEED
FOR DRIVER-BASED
BUDGETING
Our Session Today
PLANNING &
BUDGETING
CHALLENGES
DRIVER-BASED
PLANNING &
BUDGETING

15.
CELL
CUBE
To recalculates dependent
values following the shortest
sequence
TABLE
For
transactional data
and to make it
easy to modify
hierarchies
Contain
lots of data in a
very compact
form
Dependency
Tracking
What’s Needed to Deliver DBB
OPTIMAL ARCHITECTURE
• Optimal architecture for:
– Data volumes
– Processing rules in
real time
• 64 bit In-memory
calculation engine
• Multi-core parallel
processing

16.
What’s Needed to Deliver DBB
OPTIMAL ARCHITECTURE
• Optimal architecture for:
– Data volumes
– Processing rules in
real time
• 64 bit In-memory
calculation engine
• Multi-core parallel
processing
SELF MANAGEMENT
• Simple formulas in native
syntax
• Drag-and-drop
functionality
• Easy access to view and
audit rules

17.
OPTIMAL ARCHITECTURE
• Optimal architecture for:
– Data volumes
– Processing rules in
real time
• 64 bit In-memory
calculation engine
• Multi-core parallel
processing
SELF MANAGEMENT
RAPID MODEL BUILDING &
QUICK TIME TO VALUE
• Simple formulas in native
syntax
• Drag-and-drop
functionality
• Easy access to view and
audit rules
• Intuitive modelling
interface
• Built in intelligence for
time & hierarchy
management
• Cloud based delivery
• Rapid implementation
What’s Needed to Deliver DBB

18.
Using a DBB for “What-If?” Analysis
Copy
current
version
Amend
rules,
hierarchies
and time
periods
Run
real-time
iterations
Adopt as
latest
If you’ve developed a DBB version
model, the last thing you
want are users reverting
to spreadsheets for ad-hoc
Send to
peers for
review
with
workflow
scenario analysis

19.
Want more information? Download the full recorded webinar:
https://www.anaplan.com/webinars/driver-based-budgeting/

20.
Sponsor