Workday Adaptive Planning

FP&A Done Right: Volatile Business Conditions Require Agile Planning

June 4, 2021 by Revelwood Leave a Comment

This is a guest blog post from our partner Workday Adaptive Planning, explaining how to lay the groundwork for business agility.

Manual, spreadsheet-based planning may have worked well enough in a more predictable age. But today? Not so much. Volatile conditions demand a smarter approach to financial planning and analysis (FP&A), and more and more finance professionals are discovering that legacy planning processes don’t let you go there.

It’s not that spreadsheets aren’t great—we love them. But, let’s face it, spreadsheets break down if you’re trying to rely on them systematically to gather data from across the organization, roll up departmental plans, or do complex, collaborative planning.

Even traditional market forces have proven challenging to companies relying on old-world technologies and approaches. Technological advances, ever-increasing customer expectations, and smarter, data-driven decision-making put pressure on finance teams to find new ways to operate with agility.

But how do you plan in a way that allows you to respond to such events, from the predictable to the unlikely?

The answer begins—and ends—with a modern approach to planning.

Why old-world planning is a disadvantage

The traditional planning models finance teams relied on for decades aren’t just a questionable choice in times of disruption—they can leave your business at a grave disadvantage. Businesses hampered by outdated planning processes are often left scrambling to react to changes while more agile competitors outpace, outperform, and outmaneuver them. Look around you: The companies that are performing well at this minute have pivoted—sometimes substantially—in a matter of weeks, sometimes days. Their business agility has become their defining attribute for success.

It’s safe to conclude that many of these agile businesses aren’t weighed down by manual, episodic, and siloed planning. Rather, they’ve likely embraced a more modern approach to planning—planning that’s collaborative, comprehensive, and continuous. These businesses consistently minimize risk, maximize performance, and create competitive advantages because their planning empowers greater business agility.

The difference between static and modern planning can be stark. Legacy planning tools are typically bogged down by versioning headaches and siloed, instantly perishable data. In contrast, modern, strategic planning models allow teams to broaden planning data beyond finance, pulling in real-time operational and transactional data fromERP,HCM, and other slices of the enterprise stack—all to make better, data-driven decisions quickly.

Laying the groundwork for business agility

As many companies recognized even before the current crisis, agility is a business imperative—and this more modern approach to planning is the key to achieving it. These three milestones will get you started on your journey to achieving a new way to plan.

1. Assess the status quo

Before you map out where you’re going, you need to understand where you are. Take inventory of the current state of your company, more specifically the business planning obstacles keeping you from implementing a more modern and streamlined planning environment. More than likely, these obstacles will pertain to people, processes, or technology, or some combination thereof.

Assessing where you are means getting granular.

What do your current business planning processes look like?
How long does it take you to create a budget? A forecast? An annual plan?
Where are opportunities for improvement?
Who are your planning stakeholders?
What technology do you have in place, and how well is it serving you?
What data challenges need attention?
What are the bottlenecks?
What could be automated that isn’t?
Are there any opportunities for automated data integration?
What are you lacking in workforce planning?

Answering questions like these will help you get a clear sense of what you’re working with and where you can improve.

2. Get organizational alignment

Being a change agent is no easy task. That’s why you’ll need to recruit a savvy senior-level advocate to help champion planning as a worthy and necessary cause. Along with your senior advisor, you’ll need a task force representative of other departments outside of finance, including operations, sales, and HR. Don’t forget to include IT to help you navigate technology needs and coordinate various data sources.

The next move is to align these key people with the business agility cause you’re championing.

How? Build a business case.

You can do this by quantifying the impact that the organization’s current status quo has on the company. What are manual processes and bottlenecks costing your business in time and money? What opportunities are passing you by? Conversely, what would those measurement strategies and KPI models look like if you implemented a modern, or active planning model? Try to unearth more nuanced ROI measures—for instance, how cutting budget time in half could give your people more time to run critical what-if scenarios—to really drive home the meaningful change that a modern agility planning model would bring.

Once your team is in place and your pain points recognized and quantified, you can map out a plan for your initial project. Consider focusing your initial effort on a function within finance so you’ll have control over the rollout. Develop a multi-phased plan that clearly communicates goals, a concise and actionable plan, and the key metrics for your KPI model. The ability to effectively communicate the why behind this initiative will help secure any executive buy-in you need for the how. A comprehensive and well-thought-out plan will go a long way toward achieving that.

3. Expand across the business

As noted above, there’s a strong case for beginning the rollout of your new planning model in finance and focusing on low-hanging fruit to bring early and easy wins. You’re motoring along, mapping projects, tracking and communicating progress, analyzing KPI reports, and making necessary tweaks. Once a rhythm and familiarity are in place, broaden your scope beyond finance. Initiate planning projects that engage HR, sales, or marketing. This is where you begin to extend the use and impact of modern, company-wide planning.

The key in this phase is to strengthen cross-departmental communication and collaboration. Don’t fall into the trap of relying on your technology or tools to do the heavy lifting. It will be easier to realize and maintain success with regular stakeholder one-on-ones, identifying lessons learned along the way, uncovering opportunities for more ingenuity and improvement, and communicating success and congratulations when they’re warranted.

Doing this will help elevate the role of finance to a strategic force within your organization by orchestrating planning throughout the business. Finance will no longer be known primarily for gathering budget numbers and issuing reports. Instead, your business will look to finance to drive the change and innovation needed to not only weather times of uncertainty, but to thrive in them.

These three pillars lay the groundwork for creating a more agile planning environment—one that will help you plan for what’s coming, whatever that may be. With this foundation and the insights we’ll share in subsequent blogs, you’ll be much better equipped to map your way forward into that tomorrow.

The bottom line

It’s never been easier to define the main driver of business success. It comes down to how fast your business can identify and proactively respond to change. But if your business is mired in static planning —characterized by long planning cycles, immediately obsolete plans, siloed efforts, and hard-to-find errors—it won’t be operating with maximum speed or agility.

This is doubly true in today’s fast-paced, data-driven world. Businesses hampered by outdated planning processes are often left scrambling to react to changes while more agile competitors outpace, outperform, and outmaneuver them.

Wherever you are on your planning maturity journey, the tasks here will help you expand and accelerate business agility by:

Creating a new kind of planning mechanism that’s distributed, inclusive, and optimized for your strategic objectives.
Empowering finance to continuously deliver insights that help the business course-correct. To power better, faster decision-making in ever-shorter cycles based on rolling forecasts and real-time (and eventually, predictive) data.

The truth is, building a continuous one-to-one alignment between your strategic vision and your operational reality isn’t easy. It’s something very few businesses can claim. You won’t get there overnight and you will face hurdles.

But it only takes a few small steps in the right direction before momentum starts to build. Before long, those steps will amount to a giant leap forward and significant competitive advantage as business agility accelerates exponentially.

This blog post was originally published on the Workday Adaptive Planning blog.

FP&A Done Right: Accurate Forecasting = Insightful Decisions

May 21, 2021 by Revelwood Leave a Comment

This is a guest blog post from our partner Workday Adaptive Planning, explaining how great financial forecasts can guide business strategy.

If 2020 taught CFOs anything, it’s that they need well-executed financial forecasts and models from their FP&A team. Accurate forecasts help finance leaders make insightful, data-driven decisions, allowing their organizations to prepare for market conditions and trends, adapt to revenue and expense fluctuations, and execute strategic action plans.

So, if you’re interested in creating more accurate and reliable forecasts that can warn finance leaders when they need to make major changes, read on. You’ll learn how to create the kind of financial forecasts that guide business strategy.

Build an accurate business model

Before you can build a comprehensive financial forecast, you need to construct a well-designed business model. One way to do that is by modeling revenue. An effective revenue model should be able to answer questions like, “Which investments and actions are necessary to grow revenue by 25% next year?” Or, “If revenue remains flat, which programs should we cut to maintain profitability?” With the right model in place, you’ll have the flexibility to run scenarios and examine assumptions so you can answer these questions with confidence.

The purpose of revenue models is to forecast the sales volume and mix of products and standard service line offerings. They will vary widely based on your industry and business model. For example, a manufacturer might consider variables like capacity and utilization, while a law firm might look at client lists and billing rates. Whatever the nature of your business, the right model will help you get a better handle on revenue so you can drive your business forward.

Consider the money going out

In addition to the dollars coming in, your financial forecast will need to consider the money going out—expenses. Consider these key factors when modeling your expenses.

Personnel. This is likely your largest expense. If your organization is primarily salaried employees, you might forecast personnel expenses on a per-employee basis. If, however, you are a national retailer or restaurant chain with a large number of hourly employees, you may prefer to build a forecast based on work shifts or job roles.
Operating expenses. These are often tightly correlated with headcount. Your expense model should reflect that.
Cost of goods sold. You will need to forecast all costs associated with the delivery of revenue—including labor, materials, and overhead.
Fixed versus variable costs. Understanding what drives an expense is critical to getting the modeling right. A fixed cost (such as a data center) should be modeled in a way that it is not impacted by changes in revenue volume, while a variable cost (such as raw materials and packaging) might be modeled according to a formula (e.g., as a percentage of total revenue).
Overhead cost allocations. In some cases, you’ll want to trace and assign costs across segments or cost centers and possibly further to products, standard service lines, and ultimately to customers. Distributing IT expenses across multiple departments, for example, may help you understand the “fully loaded cost” of IT’s services to its various internal users. Begin by identifying “drivers” as the basis of your expense distribution. For instance, some overhead costs might be based on the number of customer orders or, for manufacturers, based on the number of material moves or machine setups. “Drivers” reflect the consumption view for how outputs consume expenses with a cause-and-effect relationship. (Activity-based costing is often used for this calculation.)

Get rolling with rolling forecasts

Once you’ve built your revenue and cost model, it’s important to define a frequency interval cadence and a calendar to recalculate the model. Financial forecasting is not a one-off exercise, but rather a practice to develop and refine over time.

By implementing a rolling financial forecast approach, you can revisit and update customer demand forecasts continuously based on actual data and performance to allow on-the-go course-correction as conditions and context change. Continuous forecasting helps you answer critical questions such as, “How are we doing against our plan?” and, “How should we adapt our plans and actions going forward?”

While some reforecasts may occur on an ad hoc basis, you should establish a consistent frequency cadence, whether semiannually, quarterly, or monthly. Each reforecast is an opportunity to assess performance and revise assumptions about the future. Your reforecasts can live alongside your original plan (and in some cases your annual fiscal budget) and represent your latest and best predictions of business performance and planned outcomes.

In some cases, you may need to generate forecasts on a much more frequent basis. Retail, hospitality, and other highly seasonal businesses may engage in daily or weekly monitoring to reflect customer shopping patterns. Other businesses may choose to do a flash weekly forecast around the product or service offering sales volume and mix or on other operational key performance indicators (KPIs) to ensure they remain on track.

Define your reporting process

Once you construct a comprehensive model of your business and incorporate your insights and assumptions into your financial forecasting process, you need to define a set of reports to be used (both internally and externally). Your reports should provide an easy-to-understand view of company health. They should include more than just a financial income statement and balance sheet view plus a pro forma net cash flow of your company’s finances. They should incorporate the monitoring of performance of both strategic KPIs and operational process-based performance indicators that you can easily share with your board of directors and management teams.

An efficient reporting process isn’t just about the reports you generate. It’s also about how you get there.

If you manage reports using only spreadsheets, then you’re familiar with the process of bringing together all your data sources, manually importing them into various spreadsheets, and emailing them around for approval. And that doesn’t even include the ad hoc requests you receive by email or from people passing you in the hallway.

The key to getting everyone the reports they need, faster and more accurately, is automation. An automated platform simplifies the gathering, reconciliation, extraction, and validation of your data. That alone can transform your reporting processes from a monthly hassle to a dynamic, ongoing influencer of organizational change.

Drive collaboration

So, you’ve automated your reporting. You’ve established a regular frequency cadence. And you’ve amazed your stakeholders with the insights you’ve shared. But if you’re still the gatekeeper of information, you may be missing out on a tremendous opportunity. When stakeholders are not directly involved in the planning process, they don’t feel a sense of ownership.

When data is accessible through self-service financial forecasting tools, people will be more likely to adopt a proactive approach to gathering critical finance data, and they’ll come to embrace your plan as their own.

Choose the right modern planning software

To help you take these steps, you’ll need the right financial forecasting tools. While Excel is where most finance teams get started, it’s not built for scale. As organizations grow and data sources multiply, organizations must turn to a cloud finance solution that can:

Facilitate collaboration. Get everyone in your organization involved in the planning process by giving them access to real-time data so business partners can take ownership of the numbers that they will likely be held accountable for.
Enable multiple what-if scenario planning. Combine high-level, top-down growth- and profit margin-based models with detailed, bottom-up personnel rosters and schedules in a single platform so you can quickly reconcile differences and address gaps.
Provide a single source of truth. With a core set of operational and financial data that’s common across the company, you can align the organization with the executive team’s strategy and monitor the organization’s performance in executing the strategy.
Automate reporting. With centralized reporting and automated data integration, you can eliminate the need to hunt for and manually aggregate data. That frees up more time to focus on analysis while providing stakeholders with the information they need to make better, faster decisions.

Financial forecasting comes down to answering a few key questions: How well can you understand your company’s position in the context of the economic environment? How much insight can you display into what’s driving opportunity and risk and causing problems? And perhaps most important of all, how ably can you communicate these insights to decision-makers throughout your organization? With the right financial forecasting tools, you can have all those answers right at your fingertips—and you can help every team member feel part of the process.

This blog post was originally published on the Workday Adaptive Planning blog.

FP&A Done Right: 3 Steps for Selecting your KPIs

May 7, 2021 by Revelwood Leave a Comment

This is a guest blog post from our partner Workday Adaptive Planning, explaining how to identify the most appropriate KPIs for your organization.

Now more than ever, companies that are unable to adapt or pivot easily to adjust to changing market conditions don’t just risk falling behind. They risk their very future.

But business agility isn’t something you can implement overnight. It takes a modern, multifaceted planning environment—one that isn’t weighed down by static, legacy planning processes characterized by spreadsheets, siloed data, outdated annual plans, and stale historical snapshots.

Today, forward-thinking CFOs and their FP&A teams understand the need for nimble, data-driven financial modeling powered by cross-departmental collaboration and encompassing a panoramic view of the business—one where planning happened not just within finance but throughout the enterprise. This is the definition of modern approach to planning.

And it’s exactly what businesses need right now.

In a recent blog, we outlined the three key steps that help you lay the groundwork for a modern planning model within your own organization. To realize the full potential of that groundwork, you’ll also want to engage a series of key initiatives that will amplify your ROI and increase the velocity of business transformation. Here we look at the first of these: identifying your critical KPIs.

When everything is important, nothing is important

When everything is deemed critical, how can you be expected to prioritize? It’s impossible to effectively plan or make decisions quickly when it’s unclear what is truly driving business success. Bring those mission-critical KPIs to light, however, and you can quickly get everyone aligned around them.

But before homing in on these metrics, it’s imperative to step back, take a look at the entire organization, and recognize that performance is tracked differently in each department and team. Your core KPI model should take into account different flavors of measurement strategy across departments, recognizing the metrics that weave through multiple departments. This will help ensure that planning is collaborative and comprehensive, and that tracking progress and reporting means the same thing to all the players involved. The biggest plus in all of this? This shared measurement strategy establishes company-wide ownership and direction.

To help you isolate your organization’s KPIs (and ultimately to plan better), consider these three steps.

1. Partner with operational leaders to uncover their mission-critical KPIs.

Rather than try to guess what functional leaders care about, take the time to sit down with those key stakeholders and walk through how they define success. What does their measurement strategy look like? How do they currently track and manage their own progress? What are their data sources? Whom are their reports important to? Do they use specific language or terminology that might mean different things to people in other departments? Be as thorough as possible in fleshing out their measurement strategy and any processes they have in place to support it.

2. Keep it simple.

People can get caught up in attempting to adhere to KPIs that aren’t easily tracked or aren’t even truly indicative of performance. Avoid establishing complicated processes or adding new, hyper-focused metrics to the mix. Yes, your goal is to maintain accuracy, but you need to balance it with minimum resistance. The last thing you want is to get lost in data and complicated algorithms, forcing you in the end to have to manually follow up with gatekeepers when the time comes to pull a report.

3. Establish a reporting system.

After isolating the necessary KPIs, you’ll need to set up some workflows around reporting. What are the tools you need to access and generate a KPI report? Are these tools accessible and easy to use for all stakeholders? What are the bottlenecks, and who are the gatekeepers holding back the flow of KPI reports? Ensure your reporting operations are accessible, easy to use, and accurate enough to give you a true snapshot of your organization’s progress—without data overload.

This blog post was originally published on the Workday Adaptive Planning blog.

FP&A Done Right: 5 Ways Dashboards Empower The Office of Finance

April 23, 2021 by Revelwood Leave a Comment

This is a guest blog post from our partner Workday Adaptive Planning, exploring how to unlock hidden opportunities with dashboards & analytics.

Visualizing data is often the fastest way to identify trends and patterns that lead to insights and better decision making. That’s because the simple clarity of visualizing data via interactive dashboards can reveal hidden opportunities that likely would have been missed in more traditional analysis and sharing of data.

Here are five ways dashboards can help identify valuable insights that may have been overlooked in the past.

1. Dashboards encourage company-wide planning (or xP&A)

Simply making dashboards accessible to stakeholders throughout the organization represents a huge win in itself—and a significant step toward breaking down silos. Yet beyond that, increasing the number of people who have access to data presented in digestible formats exponentially increases the chances of those aha moments occurring. The production floor manager will surely have a different perspective than the CFO. When that perspective is informed with accessible data delivered via a dashboard, the stage is set for new efficiencies and improved productivity.

2. Dashboards show instead of tell

There’s a reason the phrases “go through the numbers” and “eyes glaze over” are often uttered in the same sentence. Traditionally, delivering financial information has largely been a one-way conversation with the finance team presenting mundane reports and data downloads. With the exception of the number crunchers in finance and accounting, many business partners get lost or disinterested when presented with a number or data overload. Dashboards avoid this challenge by elevating the data to the next level and using graphics and visualizations to clearly show data in formats that provide key context and clarity. When data gets presented in highly visual and familiar formats, business users can often quickly see challenges and opportunities that otherwise might have been missed.

3. Dashboards offer customized views for different thinkers

Different people consume information in a wide range of ways. Some may be more comfortable viewing data presented in standard bar, column, gauge, area, and doughnut charts. Yet others benefit from data presented in more engaging or interactive formats. Workday Adaptive Planning dashboards feature data visualization that includes funnels, dials, waterfalls, bubbles, histograms, radars, and Pareto charts. Users across locations and on any device can view data in the formats that connect with their unique way of learning and thinking.

4. Dashboards are ever-present

Even finance pros and business leaders who are adept at extracting insights from traditional reporting face the challenge of locating reports once they are filed away. And once people find the report, they have the time-consuming process of checking if the data is still accurate. Conversely, dashboards are continuously available via a wide range of devices with data updated in real time, assuring users that they are working with the latest available information. So if conditions change or a new opportunity arises, easy-to-access data visualization is there to support decision-making and reveal how an opportunity may be quickly leveraged.

5. Dashboards are inviting and simple to use

The simple power of dashboards is that they are easy to use and invite users to experiment, explore, and discover. By eliminating the complexity barrier, the odds of uncovering hidden opportunities expand dramatically. Ultimately, dashboards create the opportunity for self-service analysis for everyone. That allows any user to perform drilldown analytics, create period-to-period comparisons, and explore iterative what-if analyses that can effectively identify issues that need immediate attention while also identifying trends that could be leveraged through sales and targeted marketing efforts.

This blog post was originally published on the Workday Adaptive Planning blog.

Workday Adaptive Planning Tips & Tricks: Save Personal Views on Sheets with Dashboard

April 21, 2021 by Michelle Song Leave a Comment

If you open any sheets via the Sheet tab in Workday Adaptive Planning, you can only save one view per sheet per version per user. Prior to the 2020 R2 Release, the only workaround to save the same sheet with multiple views is using EIP, Excel Interface for Planning, and open the sheet in multiple tabs or workbooks.

With the 2020 R2 Release, you now can save multiple views for the same sheet in the same tab per version in Dashboard. This function is extremely helpful to users that manage multiple departments, or anyone who wants to view the same data with different views in one tab.

In the example below, I opened the Product Revenue sheet twice in the same dashboard. The top sheet is showing the Gross Revenue account in the Product Revenue sheet for Customer 1 by Product values. The bottom sheet is showing the same Product Revenue sheet but by Accounts.

Workday Adaptive Planning Tips & Tricks: Save Personal Views in Dashboard

Once the Display Option is applied to the sheet in Dashboard, it is automatically saved for the selected version and there is no need to click the Save icon. If the dashboard is a shared dashboard, the latest published changes will become the new view of the sheets in that dashboard.

Here is another example. The top one has a filter to show New York employees and the second one has a filter to show just the employees in Canada.

Visit Revelwood’s Knowledge Center for our Workday Adaptive Planning Tips & Tricks or sign up here to get our Workday Adaptive Planning Tips & Tricks delivered directly to your inbox. Not sure where to start? Our team here at Revelwood can help! Contact us info@revelwood.com for more information.

FP&A Done Right: What Type of CFO Are You?

April 9, 2021 by Revelwood Leave a Comment

This is a guest blog post from our partner Workday Adaptive Planning. It is part 1 in a two-part series on the changing role of the CFO.

Finance has gained new perspectives from the impact of COVID-19, which has created the imperative for every business to move forward as a more agile and digitally enabled function.

But it can be tough for finance leaders to rise above day-to-day responsibilities to fill the big-picture role their companies need. Many formerly tactical CFOs have become strategic CFOs by taking one step at a time.

Here are three common hurdles on a CFO’s path to becoming more strategic and transformational—and how to move beyond them.

Hurdle #1: Cumbersome Planning Process

If the budget planning process is an onerous, time-intensive endeavor, it will remain stuck as an annual activity. That means financial insights are relatively static, reactive, and error-prone. To be strategic, CFOs are moving toward more frequent forecasting that needs a streamlined process.

Continuous planning requires financial teams to move beyond mere risk mitigation and financial metrics and to consider operational metrics and opportunity identification. This requires shifting your starting point. Rather than beginning in the past, with last year’s performance, you have to start in the future. Define and establish where you’re headed and the financial resources needed to get there.

Once you have these goals, the next step is to define a schedule for your company to reach those goals. When will strategic reviews take place? How do they translate into operational plans, and how do those plans mesh with your monthly, quarterly, or annual forecasts?

Hurdle #2: Time-intensive Data Management

Creating a streamlined process requires strong financial leadership. CFOs have to not only measure and report on financial and operational metrics, but also effectively communicate to the entire company its progress on financial and strategic goals. This takes time and sustained effort—which means you can’t bury your head in the numbers all day.

This is where leveraging technology comes in. At some organizations, finance departments spend up to two-thirds of their time gathering and managing financial data and ensuring its accuracy. That means there’s little time left for analysis, and the CFO isn’t able to rely on that deeper thinking when the CEO comes seeking advice.

In order to rise above this scenario, you have to make sure your team is using self-service, especially in reporting and analytics, and automation. A simple, powerful self-service platform provides real-time data, which frees up team members to do the deeper work of investigating that data without continually having to request more information.

Hurdle #3: Department Silos

When the finance team is viewed as a separate department on its own little island, everyone loses. Isolation makes it harder to gather accurate, real-time data. That makes budget managers less invested in the budget-planning process, which in turn makes it less likely that departments are held accountable for hitting their budgets and benchmarks. And it happens a lot: Nearly half of respondents in a Workday Adaptive Planning survey of CFOs said their teams could stand to collaborate better.

To avoid this downward spiral, high-performing companies increasingly train their finance teams to be well-rounded leaders from the get-go. By emphasizing general leadership and management skills in addition to quantitative mastery, CFOs ensure their departments are fully invested in the budget process. Put another way: In a world where the future is harder and harder to predict, the best plans must involve everyone in the business. That’s the value of company-wide planning, or extended planning and analysis (xP&A).

For FP&A practitioners, that means working with your team to ensure everyone is communicating clearly and consistently with the rest of the company. And “communicating” doesn’t mean throwing a ton of data at busy colleagues. The information you share has to be relevant and customized to different business units so each team can easily consume it.

This blog post was originally published on the Workday Adaptive Planning blog.

Workday Adaptive Planning Tips & Tricks: Excel Substitute

March 3, 2021 by Michelle Song Leave a Comment

We have something different for today’s Workday Adaptive Planning Tips & Tricks post – an Excel tip! Our Adaptive Planning users also use Excel, so we thought they’d find this helpful.

Have you ever wanted to get rid of spaces in some of your Excel cells? Maybe you do not want a cell to have separate words and instead want to use an underscore character. Or maybe you are in a situation where you want to adjust a prefix for a certain range of cells. You can use Excel’s find and replace functionality, but this approach could lead to a time consuming effort if you want to pick and choose the cells where it applies.

Excel’s SUBSTITUTE function can help you solve this problem. The SUBSTITUTE function is used to find a specific set of characters and replace it with something else while also giving you the ability to define details within cells.

The syntax of the function is:

=SUBSTITUTE (text, old_text, new_text)

text
- This is the source that will be changed; this is typically a cell reference.
old_text
- This is the subtext that will be replaced.
new_text
- This is what will replace the old subtext

If the cell in A5 consists of “Happy Birthday” then it can be updated to “Happy_Birthday” via the following:

=SUBSTITUTE (A5, “ “, “_”)

In addition, the parameter that defines the new text can also be a cell reference. This gives you the ability to quickly change the results of a large set of data by simply updating a single cell.

This approach will allow you to quickly find and replace characters within specific cells instead of having to manually go through a set of cells via Excel’s find and replace functionality.

The team at Revelwood has been recognized by Adaptive for its thought leadership in the space, commitment to its Adaptive Insights practice, and its rapid achievements of milestones. Visit Revelwood’s Knowledge Center for our Adaptive Insights Tips & Tricks or sign up here to get our Adaptive Insights Tips & Tricks delivered directly to your inbox. Not sure where to start with Adaptive Insights? Our team here at Revelwood can help! Contact us info@revelwood.com for more information.

FP&A Done Right: Achieve More Reliable Financial Forecasting

February 26, 2021 by Revelwood Leave a Comment

This is a guest blog post from our partner Workday Adaptive Planning, written by Gary Cokins. Cokins is an internationally recognized expert, speaker and author in enterprise and corporate performance management systems. In this piece Cokins outlines three steps for more reliable forecasting.

When a company fails to meet its financial targets, business leaders want to know why. Was it the pandemic? Did sales underperform? Did operations overspend? Were their purchases more expensive than expected? Was productivity below established standards? Did finance develop a forecast that was wrong from the start?

Determining the causes of budget variances is an effective way to avoid similar missteps in the future, as well as during times of disruption. But many businesses struggle to understand the causes of variances and to define a process that will turn out accurate forecasts every quarter.

Finance and business teams must work together to identify the activities or data gaps that led to a missed forecast projection and caused price, cost, and efficiency variances. Whether poor decisions were made, the business landscape changed, or customer needs evolved, digging into the root cause starts with building relationships based on trust and transparency.

Companies need to continuously answer these three questions: What? So what? and Then what? Answering the first question—What happened?—requires good reporting with visibility. Answering the second question—So what?—involves separating the signal from the noise and determining what is relevant from the reporting. Arguably, answering the third question—Then what?—is the most important and critical part, because only these decisions impact the future.

Here are three tips that will help your finance team set performance targets and standards that company leaders can be confident in.

Step #1: Bring everyone to the table

Hitting a financial forecast isn’t just about meeting sales goals. Employee turnover, travel expenses, marketing costs, and other operational expenditures must be accurately projected to create a viable financial forecast.

But finance teams can’t analyze all these variables on their own. They need to work closely with sales, HR, marketing, operations, and executive teams to get a clear view of past performance, changes on the horizon, and potential risks and opportunities.

Centralizing financial information in a single shared database reduces the time it takes for finance teams to gather this information, giving them more time to focus on analyzing causes of variances and speculating on potential outcomes. Collaborative financial planning software also helps keep information up-to-date by making reporting easier for other departments.

It may take time to get the whole company on board with a new data collection, integration, and delivery process, but the payoff that comes with more reliable reporting is worth the effort.

Step #2: Plan for multiple outcomes

It’s impossible to know for certain what the future might hold. No one has a crystal ball for this. But there are ways to view the planning horizon. One way is to create multiple projections that account for different scenarios. This can include sensitivity analysis by changing some of the variables, such as the forecast sales volume and mix, to calculate projected profits. This can keep your company running on all cylinders—regardless of what comes its way.

Project for at least two possible outcomes—one optimistic and another cautious—so you can create proactive response plans. Look closely at the assumed factors and variables that are most likely to impact your projections. For instance, a change in the price of raw materials, in labor rates, or the emergence of a new competitor could create pricing pressure, which might lead to a decline in revenues.

Scenario planning can also help companies navigate regulatory changes that come with political transition or turmoil. According to a survey by KPMG, 77% of U.S. CEOs say they are focusing more on scenario planning to manage change in the current political environment.

However, with the increasing responsibilities falling on FP&A teams, many feel they don’t have enough time for this type of proactive planning. Sixty percent of CFOs estimate that ad hoc analysis, such as running a new scenario for the forecast, takes up to five days, according to a survey we published a few years back.

Planning and budgeting software can help FP&A teams speed up the time it takes to outline the financial implications of different scenarios and outcomes. The right tool lets teams run reports with the click of a few buttons, giving them more time to consider the risks, opportunities, and assumptions to create comprehensive response plans.

Step #3: Collect customer data

Understanding changing customer preferences, needs, and demands can also help improve the accuracy of financial projections—and boost a company’s overall financial health. However, a third of U.S. CEOs say the depth of their customer insights is limited by a lack of quality customer data, according to KPMG. So it’s no surprise that nearly two-thirds expect to invest in data analytics technology in the next three years.

“The whole idea of knowing what the customer wants before they want it is sort of the brass ring,” Tom Hayes, president and CEO of Tyson Foods, told KPMG. “We have real-time data from the shelf back to our supply chain. It takes out a lot of waste and helps us to more accurately forecast—a great benefit for products with a short shelf life.”

Taking the right steps to figure out where a missed forecast and associated assumptions went wrong will help keep business performance on target year after year.

This blog post was originally published on the Workday Adaptive Planning blog.

Workday Adaptive Planning Tips & Tricks: Interactive Dashboards – Dynamic Planning with Embedded Sheets

February 24, 2021 by Dave Miersch Leave a Comment

More often than not, clients of Revelwood will make use of multiple sheets in Workday Adaptive Planning to support different aspects of their planning process(es). When using several sheets to make changes to key drivers, assumptions and scenario drivers, clients often ask the question, “How can I quickly and easily see how the changes I make on one sheet impact the rest of my budget?” One tried and true method was using multiple screens or windows with multiple sheets or reports open to see how the model changes. While this method works, it can be cumbersome and as many of us are working remotely for the foreseeable future, it likely becomes problematic if we do not have access to all those great monitors at home.

Another more dynamic solution is using the newer functionality of embedded sheets within Dashboards.

Within Dashboards, users now have the ability to add any Standard, Modeled, or Cube sheet you have created within Adaptive Planning to enter data without ever having to navigate away from our dashboard view(s). These sheets act as usable copies of your existing sheets allowing changes to be made and instantly reflected on related charts and dashboards.

In the below example, we have three Dashboards. Sales Volume & Margin by Month, budgeted Sales Revenue vs Prior Year Actuals and budgeted Sales Volume vs Prior Year Actuals.

Interactive dashboards in Workday Adaptive Planning

While in edit mode, navigate to the dashboard selector and simply drag and drop the “Sheet” option into your dashboard window. An additional drop-down menu will then be available to select all available sheet options to choose from.

Learn about interactive dashboards in Workday Adaptive Planning

Select the appropriate sheet you want to use to make changes and analyze the overall model impact and you’re all set! You now have your previously created and defined sheet embedded within your dashboard.

In my example, we have added our “Bottle Release Schedule” sheet which is essentially our sales unit planning sheet.

Understanding interactive dashboards in Workday Adaptive Planning

Making any changes and saving them within the Dashboard will automatically funnel through to dependent charts and dashboards. We are going to add 1,000 units sold in the month of April 2021 in rows 1 and 3, click save in the sheet, and then see how those changes impact our entire model in real time.

Dynamic planning with embedded sheets in Workday Adaptive Planning

We can quickly see that making those changes has added 2,000 units to our total sales volume as well as $300,000 in additional revenue.

Any sheet created within Adaptive can be pulled into dashboards for more fluent and flexible planning and reporting in one view. While some functionality is limited vs using the sheet itself, having the ability to make changes and immediately see the impact without managing multiple windows can be a valuable tool in the heart of budget season.

The team at Revelwood has been recognized by Workday Adaptive Planning for our thought leadership in the space, commitment to our Workday Adaptive Planning practice, and our rapid achievements of milestones. Visit Revelwood’s Knowledge Center for our Workday Adaptive Planning Tips & Tricks or sign up here to get our Workday Adaptive Planning Tips & Tricks delivered directly to your inbox. Not sure where to start with Workday Adaptive Planning? Our team here at Revelwood can help! Contact us info@revelwood.com for more information.

Workday Adaptive Planning

Why old-world planning is a disadvantage

Laying the groundwork for business agility

1. Assess the status quo

2. Get organizational alignment

3. Expand across the business

The bottom line

Build an accurate business model

Consider the money going out

Get rolling with rolling forecasts

Define your reporting process

Drive collaboration

Choose the right modern planning software

1. Dashboards encourage company-wide planning (or xP&A)

2. Dashboards show instead of tell

3. Dashboards offer customized views for different thinkers

4. Dashboards are ever-present

5. Dashboards are inviting and simple to use

Read more Workday Adaptive Planning Tips & Tricks:

Hurdle #1: Cumbersome Planning Process

Hurdle #2: Time-intensive Data Management

Hurdle #3: Department Silos

Read more FP&A Done Right posts here:

Read more Workday Adaptive Planning Tips & Tricks:

Step #1: Bring everyone to the table

Step #2: Plan for multiple outcomes

Step #3: Collect customer data

Read more FP&A Done Right posts:

Read more Workday Adaptive Planning Tips & Tricks:

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