+ All Categories
Home > Economy & Finance > Trends in EPM: Re-Uniting Financial and Operational Planning

Trends in EPM: Re-Uniting Financial and Operational Planning

Date post: 14-Jul-2015
Category:
Upload: argyle-executive-forum
View: 343 times
Download: 4 times
Share this document with a friend
Popular Tags:
19
© Host Analytics Confidential and Proprietary – Slide 1 R Trends in EPM: Re-Uniting Financial and Operational Planning Argyle CFO Forum The Princeton Club, NYC 11/6/14 Revision 1.5 Dave Kellogg, CEO [email protected] 650 830 0332 www.kellblog.com http://twitter.com/kellblog
Transcript
Page 1: Trends in EPM: Re-Uniting Financial and Operational Planning

© Host Analytics Confidential and Proprietary – Slide 1

R

Trends in EPM:

Re-Uniting Financial and

Operational Planning

Argyle CFO Forum

The Princeton Club, NYC

11/6/14

Revision 1.5

Dave Kellogg, CEO

[email protected]

650 830 0332

www.kellblog.com

http://twitter.com/kellblog

Page 2: Trends in EPM: Re-Uniting Financial and Operational Planning

© Host Analytics Confidential and Proprietary – Slide 2

The Enterprise Performance Management Process

While (1=1) {

Plan

Close

Report

Analyze

}

Page 3: Trends in EPM: Re-Uniting Financial and Operational Planning

© Host Analytics Confidential and Proprietary – Slide 3

We’ve Improved the Wheel Over the Years

• Automation

– Enterprise performance management (EPM) suites automate the process

• Template-driven, automated reporting

– Eliminates Excel cut-and-paste errors and drudgery

• Driver-based planning

– Sophisticated models driven by a core set of key levers

– X-rays of the business

• Rolling forecasts

– Avoids cliff problems at end of year

Page 4: Trends in EPM: Re-Uniting Financial and Operational Planning

© Host Analytics Confidential and Proprietary – Slide 4

And We’re Increasingly Taking It to the Cloud

Standard “Cloud 101” Benefits

Faster time to value

Lower total cost of ownership Superior user adoption

Increased autonomy Pace of innovation

Page 5: Trends in EPM: Re-Uniting Financial and Operational Planning

© Host Analytics Confidential and Proprietary – Slide 5

But We Never Really Got Outside of Finance

• Wanted to engage the organization in planning

– The software didn’t cooperate

– The deployment model didn’t cooperate

• Planning system as centralized collection point

– Detail in departmental spreadsheets

• Two results

– Opaque buckets-of-money effect

– Over-the-shoulder effect

Page 6: Trends in EPM: Re-Uniting Financial and Operational Planning

© Host Analytics Confidential and Proprietary – Slide 6

And We Often Ended Up Making Budgets, Not Plans

Budget Plan

Trended Bottom-up

Built by finance Built by operations

“Theirs” “Ours”

Buckets of money Departmental detail

TBH TBD TBH Job Title

1-2 iterations Highly iterated

Lot of work Lot of thought

All about approval All about resource allocation

Ends up in a drawer Living document

Page 7: Trends in EPM: Re-Uniting Financial and Operational Planning

© Host Analytics Confidential and Proprietary – Slide 7

Along Came Big Data

• Unprecedented ability to track and measure

– Sales pipeline

– Marketing funnel

– Product usage

– Customer interactions

– Supply chain

• Desire to leverage in finance as well as operations

– EPS impact of high pipeline coverage?

– Opex increase to avoid raising expectations?

– Revised sales forecast based on product usage?

Plastics.

No, wait. Big data!

Page 8: Trends in EPM: Re-Uniting Financial and Operational Planning

© Host Analytics Confidential and Proprietary – Slide 8

And Changed the Conversation

20 Years Ago Today

How are you

feeling about the

quarter, Joe?

Good.

Waterline pipeline

coverage is at 2.2x. The

week 7 rep-level forecast

implies a result of 102%

of plan. The stage- and

category-weighted

forecasts predict 99% and

104% respectively.

So, good.

Page 9: Trends in EPM: Re-Uniting Financial and Operational Planning

© Host Analytics Confidential and Proprietary – Slide 9

Resulting in the Creation of a New Role

Commander Data

• Territories

• Commissions

• Capacity modeling

• Planning

• Forecasting

• Pipeline analysis

• Discounting

• Reporting

• Analysis

SVP Sales

VP Salesops

CEO

Page 10: Trends in EPM: Re-Uniting Financial and Operational Planning

© Host Analytics Confidential and Proprietary – Slide 10

The Same Thing Happened in Other Departments

CEO

Support

SupportOps

… Services

ServicesOps

Marketing

MktngOps

Sales

SalesOps

The rise of the “ops” person

Page 11: Trends in EPM: Re-Uniting Financial and Operational Planning

© Host Analytics Confidential and Proprietary – Slide 11

CFO’s Noticed The Change

“Hey, wait a minute. I spend more time talking to the VP of

SalesOps than I do to my Controller.”

– Anonymous CFO

Page 12: Trends in EPM: Re-Uniting Financial and Operational Planning

© Host Analytics Confidential and Proprietary – Slide 12

And Asked Who Are These People Anyway?

• Planning

• Budgeting

• Modeling

• Reporting

• Analysis

FP &A

Page 13: Trends in EPM: Re-Uniting Financial and Operational Planning

© Host Analytics Confidential and Proprietary – Slide 13

There’s Good News and Bad News

Good

• Organizations are more

analytical, metrics-driven, and

data-driven in their decision

making than ever before

Bad

• A lot of this activity is

happening outside of finance

• And disconnected from it

Page 14: Trends in EPM: Re-Uniting Financial and Operational Planning

© Host Analytics Confidential and Proprietary – Slide 14

Quick Question

“What’s the impact on the board plan Q2 2015 GAAP EPS if

we hire 10 extra salespeople in Europe?”

(If you need to make a phone call to answer, you’re disconnected)

Page 15: Trends in EPM: Re-Uniting Financial and Operational Planning

© Host Analytics Confidential and Proprietary – Slide 15

Host Analytics Vision

• Cloud-disrupt the EPM market

– Faster

– Cheaper

– Better

• Re-unite financial and operational planning

– Restore the EPM vision

– New solutions

– Advanced modeling engine

Sales

Finance

Mkting

SC

Services

Integrated

Plan

Page 16: Trends in EPM: Re-Uniting Financial and Operational Planning

© Host Analytics Confidential and Proprietary – Slide 16

Sales Forecasting for Fast Growing Companies

• Mid-market cloud GL had limited reporting

• Excel not scaling for a busy FP&A team

• Sales forecasting challenging to manage

across Salesforce.com and Excel

• Weekly sales forecasts disconnected from

quarterly corporate plan and budget

BEFORE AFTER

• Host Analytics Planning Cloud with Sales

Planning

• Clear picture of weekly sales forecast,

integrated to corporate plan and budget

TubeMogul is a video advertising platform. It has 340 employees, is expanding

globally and recently went public.

Page 17: Trends in EPM: Re-Uniting Financial and Operational Planning

© Host Analytics Confidential and Proprietary – Slide 17

Sales Planning Starts with Trend Reports

iCIMS, Inc. provides Software-as-a-Service talent management platforms.

Privately-held, profitable 300+ employees, 1,900+ small to Fortune 500

customers worldwide.

• Key Marketing and Sales Leading Indicators

not tied to sales forecast

• Website unique visitors

• Free trials

• Inbound leads

• Sales forecast not tightly linked to corporate

plan

BEFORE AFTER

• Clear view of leading indicators with driver-

based model to predict

• Overall sales forecast

• Rep-level quota attainment

• Commission expense

• Ability to rapidly adjust elements of corporate

plan (i.e. hiring in Sales, Services) based on

leading Indicators

Page 18: Trends in EPM: Re-Uniting Financial and Operational Planning

© Host Analytics Confidential and Proprietary – Slide 18

FP&A, Accounting, and Sales on the Same Page

• Disparate ERP, CRM, BI and Excel systems

• FP&A was the bottleneck for data

• Accounting had limited planning and reporting

from mid-market cloud GL

• Sales Ops in Excel hell and struggling to model

commission impacts

BEFORE AFTER

• Host Analytics Cloud EPM Suite with Sales

Planning on top of existing systems and

replacing Excel

• FP&A empowers other teams with data,

models and tools

• Accounting gets multi-dimensional and

presentation-quality reporting

• Sales able to model commission impacts, tie

to corporate plan

Genesys Telecommunications Laboratories, Inc. provides contact center solutions

for mid-sized to large enterprises. 2K employees. $750M revenue. Pre-IPO. Use

NetSuite, Salesforce, Cloud9.

Page 19: Trends in EPM: Re-Uniting Financial and Operational Planning

© Host Analytics Confidential and Proprietary – Slide 19

About Host Analytics

Location Silicon Valley (Redwood City, Calif.)

Ownership Private, VC-backed

First Financing 2008

Total Financing $50M+

CEO Dave Kellogg (Salesforce, BusinessObjects, MarkLogic)

Employees ~200

Customers >400

Example

Customers

Abbott, Acciona, Align Tech, Earthlink, Evernote, GoPro, Groupon, Lindt,

Marketo, NEC, Peet’s Coffee, Republic Airways, Sanmina, Sharp, Splunk,

Sprouts, Stryker, Thule, True Religion, Vitamin Shoppe, Zep

Positioning Up-market cloud-based EPM leader (the Hyperion of the cloud)

Growth Fastest-growing company in the space


Recommended