Unlock your planning power and deliver insightful forecasts with EPM and xP&A

16 February, 2023

Less than 50% of CEOs believe that projects typically deliver on their initial financial forecasts, according to PwC’s 2023 CEO Survey. You can improve your financial results with extended planning and analysis (xP&A), which combines financial and non-financial measures to deliver accurate forecasting.

a birds eye view of a team in an office reviewing documents

PwC, ACCA and Chartered Accountants Australia and New Zealand (CA ANZ) recently surveyed nearly 3,000 respondents as part of a global survey on planning and performance. 83% of Irish respondents agreed that new performance measures beyond purely financial are needed.

However, combining a wide range of forecasting metrics, from sales volumes to repeat customers to staff utilisation, is difficult when the data is in spreadsheets. And our survey shows that 96% of organisations rely heavily on spreadsheets for planning.

You can combine forecasts in one place using enterprise performance management (EPM) software such as SAP Analytics Cloud with xP&A capability. Sales teams, operational managers and HR can then combine their insights with traditional budgets and forecasts in an integrated business plan, providing a consistent vision across your organisation.

The right technology is vital, but you also need strong planning capability. PwC’s EPM Navigator benchmarks have identified processes and people as the areas where Financial Planning and Analysis (FP&A) and planning teams struggle. It’s no coincidence that processes and people often don’t get attention in a busy planning department that is rushing to produce the next budget or forecast. However, when companies take the time to get their EPM and xP&A processes and training right, they enjoy higher accuracy, better insights and more productive staff.

Three priorities to get your planning right

1. Assess your current capability

Identifying your EPM strengths and weaknesses gives you a foundation for improvement. The PwC EPM Navigator can give you a complete overview of your capability and benchmark you against your peers.

2. Identify quick EPM wins

Examples of quick wins that can deliver improved planning results include agreeing on key non-financial drivers, involving business users in planning and freeing up time using light-touch automation.

3. Consider an xP&A-capable EPM tool

A modern, xP&A-capable tool such as SAP Analytics Cloud will make planning easier and faster. It will also enable your organisation to plan consistently across Finance and non-financial functions.

We are here to help you

48% of CEOs today are reconsidering their major initiatives, according to our 2023 CEO Survey. Getting these decisions right is crucial, and the first step is realistic planning across your business. We are ready to help you achieve best practice. Contact us today.

Contact us

Jens Gladikowski

Director, PwC Ireland (Republic of)

Dara Ingoldsby

Senior Manager, PwC Ireland (Republic of)

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