As I’ve noted before, it’s common for CFOs of companies that are transitioning from being a small to a midsize business (that is, when they grow past about 100 employees) to find that the entry-level accounting package that they have been using no longer fits their needs. This software may be inexpensive to purchase and easy to use but it lacks many of the customization and business process management capabilities that become increasingly important as organizations grow. The transition from such an application is especially difficult when it involves an on-premises system, because the up-front and ongoing costs of implementing and using these can be daunting. Usually, the shortcomings start off as minor annoyances for companies that have between 100 and 500 employees and grow over time, and usually the pain increases with the number of employees and the volume and complexity of the underlying business. Yet because of the cost, finance executives usually don’t want to migrate to a new system until their old software threatens the orderly management of the business or becomes an overwhelming burden on finance operations. For that reason, increasingly we are finding companies choosing to migrate to a cloud-based ERP system sooner in their evolution because it is usually a more affordable and easier transition than using on-premises software.
Topics: Planning, Salesforce.com, ERP, Operational Performance Management (OPM), Reporting, close, closing, leadership awards, Cloud Computing, Accounting, Business Performance Management (BPM), Financial Performance Management (FPM), Workforce Performance Management (WPM), Financial Performance Management, FinancialForce.com, midsize, spreadsheet, workflow
When they were first introduced three decades ago, electronic spreadsheets provided a major advance in corporate planning compared to the paper spreadsheet-and-adding-machine systems they replaced. However, time passes and, as our research shows, desktop spreadsheets often hamper productivity because they were designed for personal productivity, not for managing repetitive, collaborative, enterprise-wide processes such as financial planning. The finance organization at the University of Central Florida’s College of Medicine was grappling with this reality.
Topics: Planning, forecasting, Operational Performance Management (OPM), Reporting, Budgeting, driver-based, leadership awards, Cloud Computing, Business Performance Management (BPM), Financial Performance Management (FPM), Workforce Performance Management (WPM), Financial Performance Management, Integrated Business Planning, spreadsheet
Effective planning has always been a challenge for companies, and it’s all the more so today. Even when companies deploy dedicated planning applications, they often do not or cannot use them to full advantage. I had a chance to learn more about 3M Corp. use of business planning in our recent 2012 Leadership Awards, who is the diversified global manufacturer of consumer and industrial products, several years ago acquired a dedicated planning application, but because the system could not scale to handle all of its planning contributors, it was forced to collect data from its worldwide business units using Excel templates. Desktop spreadsheets impose severe constraints in the planning process and do not readily handle the complexities of a large multinational firm, such as intracompany allocations, multiple currencies and changes in organizational structure. Modeling both product and financial elements is difficult and, for a company of 3M’s size, the processes do not scale well. The planning process was therefore prolonged, complex and could not readily adapt to change.
Topics: Planning, forecasting, Operational Performance Management (OPM), Reporting, Budgeting, driver-based, leadership awards, Business Performance Management (BPM), Customer Performance Management (CPM), Financial Performance Management (FPM), Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), Workforce Performance Management (WPM), Financial Performance Management, Integrated Business Planning, spreadsheet