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Strategy and Goals Input Form

What is a Strategy and Goals Input Form?

Strategy and goals input forms are considered management tools and are used by executives to capture the company’s goals for strategic key performance indicators (KPIs). Some key functionality in this type of strategic input template will allow the company to capture metrics in a database for their most important goals. Later, it is then easy to pull these metrics into budgets, financial reports and dashboards. You will find an example of this type of strategic input template below.

Purpose of Strategy and Goals Templates

Companies and organizations use Strategy and Goals Templates to provide managers with continuous visibility to strategic metrics to help guide their tactics and decision-making. When used as part of good business practices in a Financial Planning & Analysis (FP&A) Department, a company can improve its strategic alignment as well as reduce the risk that managers lose focus on the big picture.

Strategy and Goals Template Example

Here is an example of a strategic goals input form for multiple future years and for both financial and statistical metrics.

Strategy and Goals Input Form

Strategy and Goals Input Form

You can find 100’s of additional examples here.

Who Uses This Type of Strategic Input Template?

The typical users of this type of strategic input template are: The Board of Directors and Executives.

Other Strategic Input Templates Often Used in Conjunction with Strategy and Goals Templates

Progressive Financial Planning & Analysis (FP&A) Departments use several different Strategy and Goals Templates, along with corporate planning presentations and other management and control tools.

Where Does the Data for Analysis Originate From?

The Actual (historical transactions) data typically comes from enterprise resource planning (ERP) systems like: Microsoft Dynamics 365 (D365) Finance, Microsoft Dynamics 365 Business Central (D365 BC), Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Netsuite and others.

In analyses where budgets or forecasts are used, the data most often originates from in-house Excel spreadsheet models or from professional corporate performance management (CPM/EPM) solutions.

What Tools are Typically used for Reporting, Planning and Dashboards?

Examples of business software used with the data and ERPs mentioned above are:

  • Native ERP report writers and query tools
  • Spreadsheets (for example Microsoft Excel)
  • Corporate Performance Management (CPM) tools (for example Solver)
  • Dashboards (for example Microsoft Power BI and Tableau)

Corporate Performance Management (CPM) Technology Solutions and More Examples

 

Alt text: Annual Budget KPI Report

What is an Annual Budget KPI Report?

Budget Key Performance Indicator (KPI) reports are considered management dashboards and are used by executives and budget managers to ensure that the annual budget is aligned with the strategic goals of the organization. Some of the key functionality in this type of report allows a user to compare budgets to multiple years of strategic goals for both financial and statistical KPIs. Exception highlighting helps focus attention to budget versus goal variances that require more attention. You will find an example of this type of report below.

Purpose of Budget KPI Reports

Companies and organizations use Budget KPI Reports to ensure that budgets are within their acceptable range of strategic goals. It also gives budget managers and executives a reality check that they are budgeting for appropriate resources in the most strategic areas. When used as part of good business practices in a Financial Planning & Analysis (FP&A) Department, a company can improve its chances of getting the final budget version approved by the board as well as reduce the risk of missing budget deadlines because of budget revisions required by executives.

Budget KPI Report Example

Here is an example of a Budget KPI report that compares the proposed budget with multiple years of strategic goals.

Annual Budget KPI Report

Annual Budget KPI Report

You can find 100’s of additional examples here.

Who Uses This Type of Report?

The typical users of this type of report are: The Board of Directors, Executives, CFO and the Budget Manager.

Other Reports Often Used in Conjunction with Budget KPI Reports

Progressive Financial Planning & Analysis (FP&A) Departments use several different Budget KPI Reports, along with the detailed annual budget package and other management and control tools.

Where Does the Data for Analysis Originate From?

The Actual (historical transactions) data typically comes from enterprise resource planning (ERP) systems like: Microsoft Dynamics 365 (D365) Finance, Microsoft Dynamics 365 Business Central (D365 BC), Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Netsuite and others.

In analyses where budgets or forecasts are used, the data most often originates from in-house Excel spreadsheet models or from professional corporate performance management (CPM/EPM) solutions.

What Tools are Typically used for Reporting, Planning and Dashboards?

Examples of business software used with the data and ERPs mentioned above are:

  • Native ERP report writers and query tools
  • Spreadsheets (for example Microsoft Excel)
  • Corporate Performance Management (CPM) tools (for example Solver)
  • Dashboards (for example Microsoft Power BI and Tableau)

Corporate Performance Management (CPM) Technology Solutions and More Examples

Workforce Planning

One of the most significant changes to businesses during COVID-19 has been  the large-scale work-from-home policies that almost all companies implemented. While some businesses may have partially or fully practiced this for a few years already, it has never in the history of the world been at this level. 

As many business owners are eager to get their staff back in the office, they may find that a majority of their team members have enjoyed their newfound freedom of working from home with zero commute time and no travel costs.

Some companies have already announced that they will be completely work-from-home going forward. Some employees may switch companies to find a more flexible employer if pressure to show up in the office five days a week is too high. 

Chances are that the remote work trend that was accelerated by COVID-19 will not fade away. There will be other trends that will continue to shape work-from-home habits such as:

  • Virtual reality technology
  • Video and collaboration technology (Teams, Slack, Zoom, etc.)
  • Longer commute times due to re-emerging traffic congestion
  • Hassle of all the new “cleanliness rules” when coming into the office
  • Real estate prices driving workers to live further away from work  
  • Commercial real estate prices and parking rates
  • Security concerns as home internet often is less secure than being in office 

If work-from-home is becoming the new normal for many organizations, a number of new questions arise including: 

  • How do companies assure that their team members are as- or more efficient as they were when working at the office? 
  • How do managers operate when they rarely ever meet their team members other than virtually on video calls?

Let’s take a closer look at both of these important items.

Efficient Workforce Planning Strategies and KPIs

Increasingly, executives are doubling down on two-way transparency. In other ways, the sharing of how you are doing as a company and how each team member is performing against agreed upon goals. In order for this to work, employ performance-based compensation plans and processes. 

Next, tools must be implemented to track metrics and provide reports. Imagine dashboards and scorecards with personal KPIs  and traffic lights. This is the recommended approach according to many management gurus.  Use top down sharing of strategies and goals that support the KPIs, broken down from company to department to individuals. Then, as results come in, bottom-up sharing of how team members as well as departments performed versus goals. 

Specifically, with likely strong growth in work-from-home trends, executives are already pondering how to ensure that employees are engaged, efficient and goal driven as they conduct their work from their bedroom or living room. With limited oversight and old-school micromanagement quickly fading, personal KPIs for work are rapidly growing in popularity. However, setting the best possible goals for employee KPIs can be a bit of science in itself.

Often attributed to the management guru, Peter Drucker, and first used by George T. Doran in 1981, the acronym, SMART, is used to guide goal setting.  Here is an overview of SMART goals: 

  • Specific – simple, sensible, significant
  • Measurable – meaningful, motivating
  • Achievable – agreed, attainable
  • Relevant – reasonable, realistic and resourced, results-based

In the years ahead, organizations both in public and private sector, will increasingly explore and try out individual KPIs, and those that are most successful with it are better equipped to build thriving organizations that are “future proof”. 

Key Elements of Remote Workforce Planning 

Managing and growing employees successfully has always been an area that can put a company ahead of its competitors. Companies spend money on benefits, training, education, and compensation plans to improve their staff. However, organizations promote from within, without experience, and do not train the new managers. This was a failing process and the future will require better managers with a higher percentage of employees working from home.

Define Job Descriptions 

The starting point is the most important. For each position, a manager needs a job description with the six to eight main responsibilities of the role along with the KPIs that will be set each year. Define what makes a successful candidate and a candidate that would fail in the role. Each employee receives this document from the manager and then the manager reviews it in a meeting to ensure both understand the expectations.

There are many ways of coming up with the main roles and responsibilities of the position. Interview people currently in the role, research online, talk to the HR department, and discuss with other managers. Keep the list of responsibilities concise, but include details. The more details around each role will enable the employee to understand the role and improve their chances of success.

Pinpoint the KPIs that will Define the Role.

The manager should explain how he/she will measure each KPI in the role and what is a success or a failure. Describe where the data comes from and how the KPI is calculated. Then sit with the employee and document what the goals for each KPI by a specific period will be. Ensure that the employee is onboard and agrees that they can achieve their goals. If numbers are set that they do not believe in, then you may lose the employee early on in the process.

Review and Finalize the KPIs 

Historically, managers would have an annual review that tried to encapsulate what happened over the year, but typically only highlighted the last few months as that is all that most remember. In a year like 2020, it becomes even more difficult with the rapid shift to remote work. 

Start now – meet with the employee monthly, show the KPI goal, the results to date, and a variance. Include a traffic light on each KPI to show whether the employee is succeeding (green), failing (red), or in the middle (yellow). For all yellow and red items document action items that the employee needs to do to improve upon those that are below the goal. 

Now, when you meet, the manager simply reviews the numbers and the prior action items. Many of the work from home efficiency concerns go away and it is all about productivity.  Below is an example of a simple scorecard for a manager to review with a consultant that includes actual data, the goal, variance with traffic lights, and goals for the next four quarters.

Screen Shot 2020-06-03 at 1.03.39 PM

By doing this across the board, the culture changes to become a highly productive workforce. Good employees want to work with other good employees. This culture helps build a profitable company with high growth. Terminate the employees that regularly do not meet their goals, but in a way that is clear from day one. 

 

Benefits of Automated Workforce Planning Software and KPI Management

Whether your KPIs and workforce planning requirements are simple enough to be handled in Excel or currently using a modern planning and budgeting tool, now may be a good time to think about ways to combine budgeting, workforce planning, reporting and KPI management into a single solution. 

So, whether caused by an unfortunate virus outbreak or technology trends affecting your industry, having effective workforce planning tools and plans to be ready for a reforecast is always going to reduce stress and blood pressure for the organization’s management team. 

blog image for corporate performance management during COVID-19

As we all struggle to adjust to our new reality of social distancing and general economic uncertainty, it seems as if our expectations for the future are changing day-by-day, if not hour-by-hour.

It is hard to tell what next week will be like for businesses across the world, much less what next month will look like – or six months from now. However, with a good Corporate Performance Management (CPM) solution, your company can gain insight into a range of possible future scenarios, so you can start executing meaningful action items right now.

With the right CPM in your toolbox, you can get fast answers to pressing COVID-related questions, such as:

  • How will it impact my business if I let some employees go? 
  • What can I expect for cash flow, as things stand now? 
  • Which expenses should I cut – now and later?
  • Who are the customers that are slow to pay? 
  • What is the best case scenario of COVID on my business… and the worst?

If you are not sure how to find those answers with your CPM, or if you are not sure whether your current system provides this critical information, this article will help.

What Are the Two Essential Capabilities of Corporate Performance Management During COVID-19?

If you already have and use a world-class Corporate Performance Management system such as Solver, Adaptive Insights, or Prophix, you can breathe easy. You already have access to the tools you will need to answer your COVID-related questions.

Those tools are:

1. Forecasting

Due to the ever-changing nature of the COVID-19 pandemic, nearly every company across the planet is having to throw out and replace their 2020 budgets right now. Forecasting on the fly can be difficult if you are working from spreadsheets but, with a highly effective CPM solution, you will have the freedom to run new forecasts for every twist and turn as the coronavirus situation unfolds.

Some of the best forecasts to run include:

  • Payroll modelling / forecasting

As a business leader, you already understand that it is possible you may have to let a few employees go or do a temporary salary cut before we all return to “business as usual.” This forecast helps you clearly identify the effect of your staffing strategy, so you can be more confident that you are making the right choice.

  • Sales modelling / forecasting

Perhaps you are not looking at staff reductions. Essential industries such as healthcare or food and health manufacturing are experiencing a steep rise in sales as a result of the coronavirus. However, whether your sales are on the rise or your company is facing a temporary slowdown, it is critical that you have accurate, timely insight into what you can expect for sales and revenues in 2020.

  • P&L, Balance Sheet, and Cash Flow forecasting

It is always a good business practice to keep a close watch on your P&Ls and Balance Sheets to make sure your financials are in order. With the abrupt market shifts we are all seeing right now, it is more important than ever to closely oversee changes in your operating, investing, and financing cash flows as you update your strategy.

2. Reporting

In an emergency, it can be difficult to sort through the sea of reports available to you from a Corporate Performance Management solution, so here is your quick guide to the essential reports you will need right now.

  • Multiple forecast versions compared

Gain insight into your organization’s best-case scenarios, worst-case scenarios, and everything in between using this easy-to-understand comparison report that maximizes your forecasting vision.

Actuals vs. Budgets are handy when your budget fits a predicted scenario, but we think it is safe to guess that your budgets do not quite match up with your reality right now. This report replaces your budgets with forecasts, so you can perform a more accurate actual vs. “budget” comparison that is based on the most up-to-date data.

  • Reports focused on vendor and payroll expenses

It may be time to cut expenses soon, so knowing which of your expenses are “expendable” may be critical information for your company. This report gives you the numbers you need, so you are prepared to cut back if and when that is required.

  • Customer aging receivables

Right now, every company across the world is anxious about the future and rethinking their expenditures – including your clients. By using reports focused on customer aging receivables, you will get quick and accurate insight into which of your customers or clients are late to pay, so you can check in instantly.

Not Using a CPM Solution Yet? There Is Still Time.  

If you are relying on unwieldy spreadsheets or the limited reporting options included with your ERP, you are probably frustrated at the lack of insight you have.

In truth, lack of insight can be a big problem for companies right now, considering how quickly the economic landscape situation is changing. If you are ready to get accurate, up-to-date financial and operational data at your fingertips, including easy-to-read KPI dashboards, planning tools, and a secure data warehouse to house all your data, now is the right time to get your Corporate Performance Management solution set up.

Setting up a modern CPM solution is easier than ever, but you will still need to make sure you choose the right solution for your needs. Though you have a wide range of strong CPM solutions available to your company, your ideal solution will depend on your unique business setup, size, industry, integration needs, and objectives.

However, to make sure your CPM system meets your precise needs during the coronavirus situation and beyond, you will want to ensure you choose a CPM that fits these requirements:

  • Cloud-based solution

If your workforce is largely working from home (WFH) for the duration, now will not be the right time to deploy or support an on-premises / in-office server solution. A cloud-based CPM is more convenient to implement and support during a disruption, and it is also more convenient to access for consultants working from home.

  • Rapid deployment

A CPM that takes months to deploy will not help you solve the situation right here and now. Cloud-based solutions are faster and easier to deploy than on-premises solutions, and CPMs that include pre-built vendor report and forecast templates will get you analyzing your evolving numbers the same day your solution goes live, so you can answer your critical questions instantly.

Learn More About Your Options for Corporate Performance Management

If chosen carefully, effective, cloud-based CPMs can help you maintain your agility with quick decision-making during the coronavirus or any other unexpected setback.

Ready for some advice that will help you determine which CPM is right for you? We can help.

Since 1996, the global team of CPM experts at Solver have helped companies like yours successfully navigate the rapidly changing business landscapes that define our modern, global commerce world. We are happy to share our expertise with you, so you can find your path through this unexpected and unprecedented worldwide situation.

Truly, you can ask us anything about CPM. We promise you a careful, well-reasoned answer that makes sense for your exact needs. (We do not like one-size-fits-all answers, and we suspect you do not like them either.)

 

We guarantee that when you contact Solver, you will get the guidance and help you need to understand all your CPM options, so you can confidently move your business forward in all situations, including right now.

Ask Solver a Question.

 

This article will highlight essential reporting and analysis features in Corporate Performance Management solutions.


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This article will describe the importance of forecasting with the best corporate performance management software and how it differs from budgeting.
Why is forecasting a good practice for all organizations? Here are five reasons:

  1. A forecast is usually a much quicker process and involves fewer employees.
  2. A forecast is entered at the general ledger account level while detailed templates, such as personnel templates, are not used.
  3. A budget is a company’s intention for the coming year, while a forecast is the most up-to-date expectation of what will happen over the remaining months of the year.
  4. The budget is finalized prior to the start of the year while a forecast can be created monthly or quarterly once the year has started and actual data can be reviewed.
  5. Many organizations create multi-year forecasts while budgets are only for the coming year.

While the budget is created one to two months before the year starts, the bulk of it is created up to fourteen months prior to the start of the month. For example, the budget is finalized in November for a company based on a calendar fiscal year, which is a year prior until the next November happens. Meanwhile, a lot can change in the various aspects of an organization regarding economy, industry, products, competitors, employees, and leadership. A forecast can more accurately influence decision-making.

Companies can impact their bottom line by forecasting on a regular basis.

An organization will be much more agile by forecasting monthly, as it can affect the following decisions:

  • Expense reduction and tightening up the authority to spend money.
  • Employee raises, new hires, and terminations.
  • Capital expenditures reductions or increases.
  • Strategic planning and modifying initiatives.

A forecast should include the current year actual data for the closed months. It should also allow the departmental managers to modify the amounts for the remaining months. Additionally, copying the budget data to the forecast will allow managers to concentrate solely on changes in the forecast. You can show the prior year actual data as well.

Templates

Another example is a rolling forecast. This template exists for organizations that do not create a budget but they forecast monthly. In a five-year forecast template, it is recommended to plan the first two years quarterly and the last three years annually.
One other option for a monthly forecast is to enter an expected annual amount by each account. Create a calculation that subtracts the annual amount entered from the actual year-to-date data. Then allocate the remaining amount based on historical actual data.
Finally, we recommend using the Breakback template. This template allows a manager to enter a few amounts to create the forecast in October, November, and December:

  • The desired net Income of $600,000. This is the main driver of the Breakback template, and the only input that is mandatory.
  • Increase all administration expenses by 3%. All of the departments are available for a global increase or decrease across all accounts.
  • Increase administration full-time salaries by 6%. All of the accounts are available for a global increase or decrease across all accounts.

Variance Analysis

The calculation of a variance is the difference between the actual expenses and the budget, the actual expenses and the prior-year expenses, or the actual expenses and the forecast. To calculate revenue data, subtract the budget from actual expenses. To calculate expenses, simply do the opposite. The reason for this is that a positive variance is typically good while a negative variance is typically bad.
The first step is to calculate and analyze variances. Then allow departmental managers to enter comments to document the reasons for the variances.
Variance reports can have comparison reports against the budget for both month-to-date and year-to-date data. Envision a middle section that allows for comments or a conditional format for a quick highlighting variances for review. Variance reports can also be an exception report that allows the manager to filter out variances over or under a specific percentage.
There are several ways of showing variances, but how management will create actionable items to prevent or correct the issues remains essential. Variance analyses  help highlight trends, opportunities and challenges. Variances should be a precursor to a re-forecast. This can significantly affect hiring decisions, marketing spending, and strategy changes.

Best-practice Recommendations on Variance Reporting and Analysis Processes 

 

  • Provide variance reports to each department manager.
  • The finance department should meet with each department manager to review the variances and discuss any concerns and successes.
  • Build an input form that stores comments for all departmental material variances.
  • Concentrate on the larger variances and discuss with the executive management of the company.
  • Make changes to the strategy and initiatives of the organization if needed.
  • Continually re-forecast and make decisions regarding the forecast.
  • Create a forecast then the variance reports should be off of the forecast first and the budget second.
  • Document the action items and review them at the start of the next meeting.

Companies utilize forecasting to resolve budget allocation or to plan for anticipated expenses for the upcoming year. Take the time to forecast. Use the tips mentioned above to help achieve those organizational goals without wasting any time. Learn more from Enabling World-Class Decisions, the executive’s guide to understanding and deploying modern corporate performance management tools.
If you need assistance in finding a corporate performance management solution or a forecasting tool, Solver has a team of experienced professional that can get your organization starting in building the right template for you.
Solver enables world-class decisions with BI360, a leading web-based CPM suite made up of budgeting, reporting, dashboards, and data warehousing, delivered through a web portal. Solver is reinventing CPM with its next generation solution. BI360 empowers business users with modern features including innovative use of Excel in the model design process. If you’re interested in learning more, our team is excited to hear about your organizational needs and goals.

This article focuses on the importance of budgeting with a corporate performance management solution.
budgeting
Budgeting is a topic that is not very popular in many organizations. It can be an extremely time-consuming project for many employees. This is why it is important to communicate the significance of a budget to all employees so they take pride and ownership of it. Don’t make complex templates as the goal in estimating for the coming year. If employees can’t have small variances, then they will make decisions that only impact their results against the budget and not what is in the best long-term interest of the organization.
Your budget should should be an approximate estimate of how the company will do in the coming year. Provide information on how investment money can be spent. This is based on the strategies and initiatives of the company. The goal should not be to budget down to each dollar.
For example, one company budgeted down to an employee cost of $6.52 per month per employee. The company was asked whether the cost could be estimated as a total for each department, but they claimed they needed it down to the dollar. However, budgeting at the department level and allowing a five percent variance would have had no impact on the decisions that the company made. Another important item to ask yourself is “what is an acceptable variance for an organization?” For instance, if there is a five percent variance in the revenue, then would this impact the decisions that the company will make in the coming year?
 

Personnel Budgeting Template

 
Personnel budgeting has an immense impact for organizations due to the high proportion of costs of an organization. A personnel budgeting template has similarities across all companies. There are many variables to consider, such as the type of raise, how many raises, overtime, bonuses, commissions, taxes, benefits, and IT costs to name a few. It is also important to know whether to budget by employee or by position.
Budgeting by position enables an organization to ignore employee names, terminations, and having to hire employees to replace a terminated employee. It also allows budgeting by multiple employees. As an example, a template can allow a manager to input how many accountants should be employed, what the average salary is, and what the average raise would be. If a company is budgeting by employees then each accountant should be listed. The employee’s exact salary, his/her expected raise, and all other information specific to each employee should be included as well. Budgeting by employee will be more accurate if there is little employee turnover, but it also requires more work.
Other items to keep in mind with personnel is how to allocate monthly salary, which impacts tax and benefit calculations. Allocate salary evenly by work days, by calendar days, and by pay periods. There are other ways as well. Another item to consider is separating out full-time and part-time employees, as there may be differences in the benefits that are allocated to part-time employees, such as overtime and 401k. These are all calculations that must be built into the payroll form.
 

Assumptions Template

 
A great first step is creating an assumptions template, which allows an administrator to enter data. This will impact the calculations of many templates, and it does not have to be hard-coded into the templates themselves. This data will flow from the form into all other templates. An assumptions template should include payroll tax rates, a worker’s compensation rate, and a benefit rate. The number of days in each month also matter.
The data from the assumption form will then flow into the payroll form.
There may also be a need to allocate an employee across multiple departments. In this case, there are two options: 1) Budget every employee to a “dummy” department and then allocate the salaries, taxes, and benefits in new template. 2) Upload the employee information into each department and enter the number of hours allocated to each department. This ensures there is an administrator report that checks to verify that an employee does not exceed 2,080 hours a year.
Many companies use another template called the capital expenditures template. This particular template allows users to enter capital expenditures that are projected into the coming year. This also calculates depreciation, typically on a straight-line basis. The asset type is typically chosen because each asset type has a specific life. A capital expenditures template should include asset type, department, purchase description, purchase month, purchase price, and quantity. The capital expenditures and the monthly depreciation are summarized at the bottom of the template.

More information

If you would like to get a better understanding of the budgeting templates above, you can download the free ebook here. Beyond using the right templates, it is important to have the right team and infrastructure in place to implement a successful budgeting strategy. Take the time on the front end to set budgeting goals that line up with your overarching organizational goals.
We also recommend to ask for help! By asking for help within the right channels, you can ensure the right sounding board that can guide you through the process with minimal time wasted and designed for maximum efficiency. At Solver, we have a team of experience professionals that have taken on countless projects like this one. Between the power of BI360 and their expertise, you have all you need to set yourself up for success.
Solver enables world-class decisions with BI360, a leading web-based CPM suite made up of budgeting, reporting, dashboards, and data warehousing, delivered through a web portal. Solver is reinventing CPM with its next generation solution. BI360 empowers business users with modern features including innovative use of Excel in the model design process. If you’re interested in learning more, our team is excited to hear about your organizational needs and goals.

This article discusses corporate performance management (CPM) tools and examples of effective strategy, goals, planning, and analysis. 
 
budgeting, reporting, data warehouse, power bi, dashboards
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