A future model for effective planning and performance management
In the future, the top planning and performance management teams will be notable for their:
Ability to produce high-value business insights – at scale, repeatably and in real time
To empower stakeholders with insights for more informed decision-making, the planning capability must be designed to produce dynamic analysis rather than static reports. Reporting data must be accessible across frameworks and scenarios and at a granular level, with alignment of budget, actuals and projection data.
Efficient and flexible processes, powered by next-generation technology
To deliver timely business insights, reporting and analytical processes must be efficient and flexible. The complexities of insurance products, financial reporting frameworks, capital frameworks and asset classes require an integrated architecture that connects actuarial, capital and asset projection systems with next-generation planning technology.
By replacing spreadsheet-based processes, advanced planning tools can help insurance organizations solve for the inherent complexities of insurance company financials. Next-generation planning tools can transform key capabilities by managing the overall process and workflows, as well as non-actuarial and investment modeling; organizing data; and providing interactive dashboards and visualization tools.
Integrated operating models with the right skills and talent organized in effective ways
Traditionally, functional specialists have responsibility for specific areas of planning and budgeting, often working independently with limited communication within the team. Collaboration can be achieved through an integrated planning approach that drives action through connected data, people and plans across the enterprise, utilizing consistent data sets and dynamic assumption management.
Across the industry, management’s ultimate objective is to enhance the trade-offs between risk and return, as they manage financial performance across multiple accounting frameworks and a range of uncertain scenarios. Business leaders make decisions every day about product mix, capital deployment, investment allocation, business investments, reinsurance and other matters.
The vision for more effective planning and performance management starts with confirming that business leaders have the information they need to make these decisions confidently. Further, leading finance groups will use their planning capabilities as a means to serve as business advisors that deliver continuous insights, robust analysis and timely decision support across the business.