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Strategic planning

Strategic planning is an established part of every company's activities. As one of the key processes, it is carried out at least once a year, usually with quarterly update forecasts.

 

Strategic planning presents a number of challenges

  • Defining planning indicators

Identifying the right indicators is a vital element of the strategic planning process. These are generally balance sheet/P&L indicators but can also include regulatory indicators such as capital resources. This set of indicators is often extended to include the key internal indicators used for internal control purposes. There are close links here to the company's KPI system.

  • Designing the planning process

The planning process must bring together both top-down and bottom-up approaches. At the same time, it needs to take account of any restrictions imposed by capital planning and regulation. The level of complexity is increased if the company is also required to comply with centrally defined risk strategies e.g. in relation to the structure of credit portfolios.

  • Ensuring consistency between target figures

It is important to translate all the different priorities that form part of the planning process into a consistent set of target figures. This involves taking account of the sometimes complex relations between factors such as cost and income, quantity structures, risk considerations and capital planning.

 

d-fine has considerable experience of defining planning indicators and designing/revising the planning process, including the task of assigning roles to each of the divisions involved.

At the same time, we can provide the necessary technical know-how in the areas of financial and risk management, controlling and regulatory systems. This ensures that target figures and systems remain consistent.

Furthermore, we can draw on a wealth of implementation and systems expertise to advise you on how best to implement your strategic planning e.g. within your business intelligence environment.