The path to Connected Planning: Gradual and Intentional

Businesses need plans in order to determine which direction they are headed in and how they will get there. In essence, plans serve as a compass for businesses guiding teams in the right direction and course-correcting when needed. However, if each team is setting their plans in silos across a large organization, that can lead to several compasses each of which may or may not be pointing in the same direction. Instead, businesses need a connected plan - where all teams are enabled to collaborate and work together in one system in order to understand the interconnectedness of each business unit. This can result in a much more cohesive plan and serve as a central compass for the organization. 

As businesses scale, planning becomes more and more siloed with each team building their own plans given the business context, challenges and resources pertaining to their specific functions.

This results in a two-fold reconciliation process:

• Horizontal: Across teams, business functions, etc. (resolving dependencies)

• Vertical: Tops-Down and Bottoms-Up (combining company level targets with team level plans)

This works, in theory, but results in planning processes getting stretched out multiple months with several iterations. Connected Planning solves this. Let's dig in.

Definition and Background

Connected Planning is not a new concept by any means but let’s define what it means. Simply put, connected planning means all teams plan together in one system with real-time data and visibility. Teams are no longer left guessing about how a change in their plans impacts other business units and what the full scope of dependencies looks like. Instead, each team builds their plan together in one system enabling them to see how interdependent their plans are and how they compare against the overall company plan. This leads to less confusion and more collaboration which in turn reveals further insights about existing business processes. 

Recommended Approach

In practice, connected planning can take time to materialize given it requires each of the teams to build their individual models (or outputs) in a way that is connected with the rest of the organization through a strong underlying system architecture. Additionally, it also requires attaining buy-in from various teams each of whom may be used to their own ways of planning. Achieving the connected planning vision requires teams to change their current ways of working - this is why we believe the path to connected planning should be gradual and intentional, starting small and expanding organically. 

Here are a few prerequisites to implementing the connected planning vision:

1. Technology: Having the right planning system in place is one of, if not the most, important factors for connected planning. The system needs to be easy to build, maintain, use and adopt along with limitless planning capabilities. We believe the right choice is Pigment and here’s why.

2. Team: Executing on such a cross-functional vision requires the right set of leaders:

   • An executive who is willing to support and advocate at a tops-down level.

   • A project or planning manager who can orchestrate, coordinate and manage change.

   • A system owner or architect who can ensure the underlying foundation of models are set in a way that enable seamless connected planning.

3. Data: Planning requires a deep analysis of existing and historical data across teams (financials, customer data, headcount, other metrics) which all need to be integrated within the planning system. This ensures each team is able to plan and forecast with accuracy, setting them up for a successful planning cycle. 

4. Process: A well-coordinated and streamlined process is vital to ensure a truly connected plan.

The best way to get started on the path towards connected planning is to start small. We recommend our customers start by implementing one use-case to drive user adoption and slowly expanding with other teams. This ensures the connected planning process is gradually adopted resulting in more organic engagement across the organization. 

System Considerations

From a systems perspective, here are a few things to consider when working towards connected planning:

1. Integrations

   • Connect to key source systems to ensure updated data is available for planning (ERP for Financials, HRIS for Headcount, CRM for Sales, etc).

2. Common lists and hierarchies

   • These form dimensions that are reported on - identifying and setting the right structures early on can help save time over the long run.

3. Modular system architecture

   • Setting up different apps and models with the right connections, each dedicated to a specific use-case helps streamline model building and ensures the right foundations are in place for teams to plan together.

     
     

Connected Planning serves as the central compass that an organization needs to plan and move forward in the right direction, together - leading to faster planning cycles and stronger alignment between teams. This is only made possible by having the right planning technology in place. Check out our 5-step evaluation framework to guide you through the systems assessment process. Want to learn more? Chat with us!