Everything is getting faster - so planning and performance management need to get faster, too. FASTER is an approach to planning and steering that meets the demands of modern companies and takes your performance management to a new level.
Quiet times are long gone and the speed at which companies (have to) operate is constantly increasing. Technological advances, global connectivity and increasing competitive pressure create a constant need to adapt. At the same time, uncertainty is on the rise - fueled by multiple crises and disruptions. Against this backdrop, organizations need to be more flexible to adapt to rapid change, drive innovation, and meet market demands.
“Move fast. Speed is one of your main advantages over large competitors.” - Sam Altmann
Steering instruments, especially for planning and forecasting, need to be developed accordingly. Metaphorically speaking: To steer a speedboat or a jet, a simple steering wheel is no longer enough. We need tools and processes designed for flexible maneuvering and high speeds.
FASTER combines proven, state-of-the-art methodology with modern technology and future-oriented steering processes. The result is a new form of planning and forecasting that meets the demands of the future.
In volatile times, steering and therefore also planning must be flexible. In a market environment that is constantly changing at short notice, it is necessary to proactively consider different developments in the form of scenarios. Scenario simulation provides the basis for management decisions and informed resource allocation.
To compare and discuss the different decision options, cause-and-effect relationships must be linked consistently across the scenarios. This can be done, for example, by using business model-specific driver models.
The use of a professional tool with integrated data management and process support enables companies to plan efficiently. Automatically generated proposal values based on available information are the core of automation – phasing and distribution functions are used for this purpose.
Using predictive analytics through machine learning algorithms, organizations can not only make predictions based on historical data, but also perform future-oriented analysis to make informed decisions.
Planning and forecasting must integrate all available information - for example, the recruitment of new employees should be included in planning and the financial impact considered accordingly. The various functional forecasts and plans (sales and operations planning, HR, etc.) must be streamlined in the financial steering.
In addition, the different organizational areas must be connected. This organizational integration not only promotes more efficient collaboration, but also enables company-wide, business-oriented simulations. Through this holistic integration, FASTER creates the foundation for effective and future-oriented financial steering.
Even in a volatile business environment, a clear sense of direction is critical. Setting strategy-based targets for the company and its individual divisions is therefore essential. To effectively implement these targets, corporate strategy must be seamlessly integrated into overall planning.
Especially in times of change, central steering is essential to ensure that all areas are synchronized. Major transformations can only be achieved effectively with a top-down approach.
Steering processes related to planning and forecasting need be designed with as little effort as possible to use resources effectively.
In particular, non-value-adding activities, such as data management, need to be optimized. By minimizing the workload in these areas, planners and the controlling team can focus more on analysis, decision support and strategic decision-making.
Risk-aware steering should be designed to identify warning signals at an early stage in order to respond proactively to challenges. To this end, the link between planning and risk management is essential: risks must be integrated and aggregated in order to perform risk simulations.
Stress testing, or running through worst-case scenarios, can be used to create contingency plans ("drawer plans") to prepare companies for different developments, including possible courses of action.
Horváth's FASTER approach offers a customizable framework for companies to align their corporate performance management with increased requirements. Combining the elements and instruments in a meaningful way is crucial for success.
Would you be interested in an exchange? We would be pleased to collaborate with you to assess how you can make your corporate performance management FASTER.
Klehr, D.
