SAP BusinessObjects Planning and Consolidation: Evaluate Planned and In-Flight Initiatives with the Starter Kit for Capital Planning

  • by William Newman, Managing Principal, Newport Consulting Group
  • June 10, 2010
The starter kit for capital planning for SAP BusinessObjects Planning and Consolidation, version for the Microsoft platform, allows for specific business process flows to be common across budget planning for multi-year capital expenditure investments. See how to use the starter kit as well as the various views available to evaluate different strategic objectives.
Key Concept
The starter kit for capital planning available for SAP BusinessObjects Planning and Consolidation, version for the Microsoft platform, allows for a consistent and accurate approach for multi-year capital expenditure investments aligned with strategic objectives.

Linking strategic planning at the executive level to departmental-level management can occur based on several approaches. The most common resembles what is often referred to as a planning round. A planning round may consider the upcoming fiscal-year budget aligned to specific strategic objectives that are intended to be achieved inside that fiscal year. A planning round may also look downstream to subsequent years to provide insight into fiscal mapping of resources and capital required to achieve particular strategic objectives. This gives the organization advanced warning and allows preparation for it to move in a particular direction and to acquire the talent, capital, and resources needed for execution.

The end product of such a planning round is an operating budget that functional and operational management may use to execute in the upcoming fiscal year, with downstream annual forecasts (summarized in Figure 1). Many organizations treat this operating budget as a compact between executive management and the operational and functional teams. Based on human capital performance management and reward and recognition programs, performance against budget and plan yield significant compensation effects for management and staff alike.



Figure 1
Example of summarized planning round budget levels

Note
The starter kit for capital planning is available for SAP BusinessObjects Planning and Consolidation 7.0, version for the Microsoft platform. The starter kit for capital planning is available for SAP BusinessObjects Planning and Consolidation 7.5, version for the Microsoft platform, is currently in ramp-up. At the time of this writing there are no plans to release the starter kit for capital planning for SAP BusinessObjects Planning and Consolidation, version for the SAP NetWeaver platform.

By using the starter kit for capital planning, available for SAP BusinessObjects Planning and Consolidation, version for the Microsoft platform, organizations can leverage a consistent, accurate approach to multi-year investments. I’ll show you the highlights of the starter kit for capital planning and some of the key points when using it.

Note
William’s forthcoming book Understanding SAP BusinessObjects Enterprise Performance Management, to be released in mid-2010, covers this and other topics. For more information, visit SAPinsider.com/Store.

William Newman

William Newman, MBA, CMC is managing principal of Newport Consulting Group, LLC, an SAP partner focused on EPM and GRC solutions. He has over 25 years of experience in the development and management of strategy, process, and technology solutions spanning Fortune 1000, public-sector, midsized and not-for-profit organizations. He is a Certified Management Consultant (CMC) since 1995, qualified trainer by the American Society of Quality (ASQ) since 2000, and a trained Social Fingerprint consultant in social accountability since 2012. William is a recognized ASUG BusinessObjects influencer and a member of SAP’s Influencer Relations program. He holds a BS degree in aerospace engineering from the Henry Samueli School of Engineering and Applied Science at UCLA and an MBA in management and international business from the Conrad L. Hilton School of Management at Loyola Marymount University. He is a member of the adjunct faculty at both Northwood University and the University of Oregon with a focus on management studies and sustainability, respectively.

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