|[February 25, 2013]
Long-Range Planning Benchmark Study Exposes Gaps in Processes, Technology and Data
AUSTIN, Texas --(Business Wire)--
Few organizations excel at selecting and managing initiatives and
capital projects, according to a new Long-Range
Planning Benchmark Research Report. Conducted by Ventana Research
and sponsored by Planview® and Financial Executives Research
Foundation (FERF), the study surveyed 289 global long-range planning
professionals across various industries to discover their practices and
needs, as well as the potential benefits from improving their existing
processes, information and systems.
Companies use long-range
planning to determine the best strategy for succeeding in their
markets and to ensure they have the assets needed to support their
strategic objectives. This planning includes the allocation of
investments in those assets and identifying resources, such as financial
and personnel, sufficient to support them. About two-thirds of the
survey respondents said their main objectives are to help develop the
annual budget, optimally allocate capital or project investments, and
influence corporate strategy.
"Efficient long-range planning is critical in today's dynamic business
climate," said Marie Hollein, president and CEO of Financial Executives
International (FEI). "The recommendations provided in this research
report for long-range planning should help financial executives
streamline their companies' planning processes."
Majority indicate improvements needed: Only five percent of
companies surveyed said their long-range planning process works so
well that no improvements are needed. More than half said their
process works but needs some adjustments in various aspects of
planning, including managing the execution of major initiatives and
Effectiveness of planning correlated with quality of decisions:
89 percent of companies wit a long-range planning process that works
well also said their choices of major initiatives and capital projects
are good. Overall, just 10 percent said their organizations have
consistently selected the best major initiatives and capital projects
for funding, while 30 percent said their results have been mixed.
Data quality is critical: Companies with more up-to-date,
accurate data indicate that they are better able to conduct
contingency planning, adapt to change, and make consistently good
choices of capital projects and major initiatives. In addition,
organizations that can drill down into underlying details immediately
during a review meeting are better able to respond to changing
environments and more likely to make better choices about capital or
major initiative investments.
Software is a key component: Software has a direct
impact on a company's ability to support a more efficient process and
do contingency planning. Two-thirds that have very or generally
effective software can examine all relevant scenarios versus just 20
percent that do not. According to the research, organizations should
reconsider the use of spreadsheets, which are used by two-thirds of
the companies surveyed but rank substantially below dedicated
applications on how well they monitor and manage capital projects as
well as a host of other forecasting and budgeting issues.
To learn how organizations can immediately use this information,
register for the Webinar - New
Benchmarks for Long-Range Planning - to be held Wednesday, February
27, 2013 at 11:30 a.m. EST. The webcast will feature industry experts
Bill Sinnett, senior director, research of FERF, the research affiliate
of FEI; Robert Kugel, senior vice president and research director of
Ventana Research; and Marcus Klein, product line manager, Planview.
Download the Executive Summary here: http://planview.com/LRPBenchmark.
"The research shows that although there are legitimate differences in
how companies plan, there are also important elements that can make
these efforts most effective," commented Robert Kugel, senior vice
president of Ventana Research's financial performance management
practice. "Our research provides best practices and maps improvement
opportunities that will help organizations plan more effectively and
move beyond the use of spreadsheets into a connected approach to
"Improving the management of projects and major initiatives requires a
well-designed, consistent process that emphasizes measurement and
responsibilities," said Linda Roach, vice president of marketing,
Planview. "As the Ventana Research study reveals, the best results are
achieved when this process is supported by software designed to
facilitate initiative-specific data collection, forecasting, analysis
helps enterprises drive innovation, become more agile and efficient, and
improve their business performance. For more than 20 years, leading
organizations have been making better decisions using our solutions to
optimize the planning and execution of their business strategy. As the
market leader in portfolio management, Planview combines a passion for
customer success with a commitment to innovation and thought leadership.
Throughout the enterprise, Planview's customers use portfolio management
to capitalize on business opportunities and thrive in a dynamic, global
economy. For more information, visit http://www.planview.com.
Follow Planview on Twitter (News - Alert): @Planview.
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