Many managers dread the annual budgeting and strategic planning process. Some claim that they prefer to do real work than spend time developing a plan few people will ever follow. Yet, that sentiment is largely misplaced. In our experience working with clients in the forest and paper sector over the past decade, we’ve found that over 3 percent of annual revenue can be directly attributed to proper budgeting and planning.
Surprisingly, it is not always the quality of the strategic plan or the size of the budget that matters. Rather, it is a company's ability to execute that really makes a difference. Are the best people leading the critical functions? Are effective measures and processes in place to check progress? Are the needs of the most profitable customers being met? Are the most effective partnerships and the most efficient technologies in place?
How PricewaterhouseCoopers can help you
If your company’s performance is not what it should be, PricewaterhouseCoopers can help. To start, our Performance Management Audit (PMA) will measure the gap between where you are and where you want to be. The PMA addresses seven key categories: strategy/alignment; people/leadership/culture; metrics; rigour/business processes; information enablers; external environment (customers and suppliers); and communication. A final report identifies gaps where a company might be losing value by not executing to plan. Often the report uncovers project areas where the company is failing to focus sufficient effort or investment. The PMA helps people throughout your company focus on maximising profit and minimising cost.
