Are Spreadsheets Slowing Your Company Down?
Research has shown that companies today are moving further away from spreadsheets, point solutions, and legacy planning software due to their lack of efficiency. Too often do companies rely on one-dimensional planning tools only seen by upper management rather than using a single platform that plans financially and measures performance used by all departments. This offers transparency within the company.
Utilizing a common platform will allow managers to adjust accordingly based on performance, and everyone will be able to work more effectively. Strategic planning and performance management are essential for every company. Without these, organizations tend to struggle because they are unable to strategize and measure their success rate.
Spreadsheets have been shown to limit executives from collaborating easily and dealing with market changes. Surveys show that most respondents believe that they need to plan more frequently than in the past. Many respondents agree that their business lacks the necessary tools and skills to quickly identify problems and revise plans.
A huge issue is that senior executives often have a much different perspective of the company than do managers closer to the front line. For example, 41% of directors and vice presidents gave their business high praise for being able to analyze their performance throughout the process, while only 28% of managers felt the same way.
In a similar case, 35% of executives gave their business high praise for the ability to adjust course midstream, but only 28% of analysts agreed.
Many executives fail to grasp how agility and being able to make course alterations relate to planning. The reason for this hindrance is that organizations use spreadsheets as a planning tool. Spreadsheets should only involve simple models and small amounts of data — any more will push this tool beyond its limit.
Having the right tools will lead to increased employee productivity, as well as accurate planning. Some companies have already begun to take this approach, and the results have been impressive.
Tasks and assignments that would have taken two days with a spreadsheet can now be completed within an hour. By using a performance management platform, a deeper level of information can be quickly shared throughout the organization. Not only will business leaders be able to make decisions in a timelier manner, they will also be able to improve analysis.
Percentage of respondents currently using these tools for planning, and percentage of that group who say they’re satisfied with the tools
When companies make the switch from spreadsheets to a cloud-based platform for planning, they can include more managers in the planning process. This will ultimately lead to more engagement and commitment overall. Companies that utilize the continuous planning approach will react quicker and compete much more effectively.
We offer the flexibility of combing your current financial model with our planning tool for optimal efficiency. Find out more details at Finfox.