Modelling for Strategic Planning
A financial model is a powerful way to assess the viability of a strategic plan. The process of building the model and analyzing historic and future trends can help identify gaps in the current strategy and inform strategic planning efforts.
During the planning process, management is often faced with the challenge of selecting the best scenario to move forward with.
Decision making criteria are often qualitative in nature, and geared towards lofty goals. This leaves them incomplete without a qualitative assessment of the financial impacts.
Through financial modelling, factors such as the quantity and timing of capital needed, interruptions in production, merger integration synergies can be modelled to forecast the financial results. The results will not only help bring a scenario to the forefront as the most financially viable, but will also give a clear roadmap for performance along the implementation journey.