“Quantalytic improved our budgeting and forecasting processes enormously. Their system is in use and is well supported. With the improved speed and consistency of budgeting and forecasting, it is now possible for us to quickly and accurately assess the impact of operational changes on the bottom line.” - Ulendo Roode, Commercial Manager,Tritton Mines, NSW
First principle budgeting
Budgeting is more than a rubber stamping exercise. it offers a real opportunity to look for bottom line improvements around the business. The most effective way to do this is to build up your budgets from first principles and where possible, link them to underlying business drivers. We offer a "first principle" budgeting service to help your team build up a bottom-up, fact based budget. We will collaboratively define a relatively simple budgeting structure in every department (for costs, revenue and capital spend) that meets the following criteria:
It is transparent and understandable
It is "driven" by underlying core business drivers - as these drivers change, the budget will change too
It is easy to maintain
All departments use the same, explicit, global assumptions
Department level assumptions are explicitly listed
It is reasonably simple, with an emphasis on explaining the big ticket items accurately
Our preference is to implement the budgets using the Adaptive Planning platform, however we are happy to work with your team using whatever platform is currently in use. The budget structure we come up with will be re-used and maintained by your staff for all their budgeting and forecasting going forward.
Read this case study for a practical example of where we helped an underground mining organisation build a first principle budget.