by Malcolm Faulkner, Analytics, SAP

Failure to effectively budget for long term value and generate initiatives identified in strategic plans, is a dangerous but all too common game.  For most organizations the budget remains the means by which resources get allocated, spending limits are determined and performance is evaluated.  Unfortunately, this results in too much focus on the current year goals and short-term financial indicators. Often the time and effort required to execute initiatives is under estimated causing problems down the road.  The budget simply is not a tool for overseeing and managing the execution of projects.

Financial tools alone are not enough to effectively manage the execution of budgeted projects.  If you don’t have the means of effectively executing projects then why not invest in addressing the problem and in doing so ensure all the budgeted projects have a better chance of succeeding and delivering value.  This is a strategic investment that’s worthwhile as a starting point – would you agree?

Many SAP customers have invested in our SAP Planning and Consolidation because it makes financial planning and budgeting significantly more efficient.  But what are you doing to improve the effectiveness of the overall organization?

This is where SAP Strategy Management comes into play – – it makes SAP Planning and Consolidation better!

Many organizations fall short on delivering optimal performance.  How do you enable everyone – from C-level executives to front-line workers – to focus on the actions required to achieve key initiatives?  The most effective organizations clearly communicate plans and objectives, align business units and allocate resources to key priorities, monitor and report on progress, and proactively take action when issues arise.  Creating initiatives that are planned and budgeted is the first step – but management of those actions is required to achieve the desired results in the critical element for success. Effective action is the key to closing the strategy to execution gap.

 

SAPPHIRE NOW 2012 –  Orlando – May 14-16

Visit the Analytics Campus for more information on the integration of these two solutions for Finance and on Value Realization with SAP Strategy Management.

Discussion Table –  BA304 –  Manage Strategies Effectively for Optimal Financial Performance

Microforum Discussion  – #7482 – Manage Strategic Initiatives for Optimal Outcomes,  Tue., 03:00 p.m.