Robert Kugel's Analyst Perspectives

Rising Rates Will Catch Companies Flat-Footed

Posted by Robert Kugel on Feb 13, 2013 10:37:08 AM

One of the important lessons company executives should have learned over the past 15 years is that it’s dangerous not to do contingency planning, a subject that I’ve written about before. By this I mean real, think-outside-the-box contingency planning (not just extrapolating), which is especially important when doing long-range planning. The past decade or so has been punctuated by periods of elevated volatility in financial and product markets, and there’s a good probability it will occur again in predictable yet improbable ways. The dot-com boom and its resulting bust as well as the real estate bubble and collapse were in part liquidity-driven events. Many people recognized the artificiality of the rise in values during both of those boom times. There were naysayers questioning the longevity of the upturns, but as they continued unchecked and proved the skeptics wrong, most investors, analysts and advisors grew complacent and unwilling to consider truly unfavorable scenarios. By not planning for a bust, companies and individuals were not in position to react as swiftly and intelligently as they could have.

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Topics: Planning, forecasting, Reporting, Budgeting, contingency, currency, driver-based, Business Analytics, Business Performance Management (BPM), Financial Performance Management (FPM), Financial Performance Management, Integrated Business Planning, interest rate, spreadsheet

Planning for Fixed-Asset Investment Requires the Right Tool Not Just a Spreadsheet

Posted by Robert Kugel on Oct 20, 2011 9:12:00 AM

In today’s economy, all companies are contending with a dynamic business environment characterized by volatile commodity prices and exchange rates, a shaky global financial system and slow growth in many countries. Many of them rely heavily on desktop spreadsheets to support the data collection and analysis related to their capital-asset planning. However, spreadsheets have inherent limitations that make them the wrong choice.

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Topics: Planning, SAP, forecasting, Operational Performance Management (OPM), Planview, Budgeting, contingency, IBM, Oracle, Business Performance Management (BPM), Financial Performance Management (FPM), agile, capital spending, optimization, volatility