Planning, Budgeting & Forecasting in EPM: Rolling Forecasts & Driver Models | CFO Shortlist
EPM Buyer’s GuidePLANNING BUDGETING FORECASTING

Planning, Budgeting & Forecasting

Move beyond static budgets to rolling forecasts with driver trees, controlled inputs, and scenario toggles that connect FP&A to operations.

Key takeaways
  • Rolling horizons (12–18 months) beat point‑in‑time budgets.
  • Drivers make assumptions explicit and maintainable.
  • Contributor UX with validations prevents model drift.
  • Scenario toggles enable decision‑ready what‑ifs.

Model design

  • Separate structure (COA, org, time) from logic; keep cubes lean.
  • Drivers per revenue/cost stream (price, volume, mix, HC, rates).
  • Versioning: baseline, working, approved—visibility rules per role.

Operational inputs

  • Pipeline → bookings → rev‑rec; headcount with comp & vacancy logic.
  • Capex and depreciation schedules linked to cash and P&L.
  • Excel add‑ins/web forms with validations and audit trail.

Cadence & scenarios

  • Monthly rolling updates; quarterly re‑plan; locked/working copies.
  • Base/bear/bull; sensitivity sliders for rates and drivers.
  • Variance analysis with commentary tasks and materiality gates.

Pitfalls

  • Too many dimensions → performance hits; model bloat.
  • Uncontrolled sandboxing → version chaos.
  • Stale integrations → mistrust of numbers and rework.
Checklist
  • List top drivers and link to P&L/CF.
  • Define contributors/approvers & SLAs.
  • Agree on versions and naming conventions.
  • Set scenario defaults; wire variance workflow.
  • Connect ERP actuals and HRIS/CRM feeds.
  • Pick a pilot (e.g., opex + headcount).

Frequently Asked Questions

4–6 weeks with crisp scope and ready data; include training and variance review.
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