Second, you need to have buy-in to the vision of the integrated business planning initiative across the organization; otherwise it will likely crumble under its own weight within six months to a year.
The third element is governance and setting up a steering committee to oversee the overall organization that will build and support the process.
Q: What is the CFO’s role in gaining buy-in from the various stakeholders who might be involved in developing and supporting IBP?
Michelle: Effective integrated business planning starts and ends with leadership.
And when the numbers don’t add up, CFOs, who are responsible for seeing that the company has sufficient working capital to operate effectively, can end up taking a lot of the blame.
So, you start with the company strategy (aka 2020 vision) and the three-to-five-year plan, and determine what the financial metrics are for the plan, and then run those metrics through the different parts of the business.
Fourth are the people and processes that you’re going to put it in place to operationalize the framework.
The fifth element are the insights you want to garner from IBP, and sixth are the technology and analytics tools needed to enable and support the process to ensure sustainability.
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