Namaste!
Welcome to the Hyperion Planning blog series. Earlier I have written a blog on Hyperion Financial management (HFM) requirements gathering, analysis and preparation of Business Requirements Document (BRD). It was quite lengthy 5 series blog.
This time I want to write a bit crisp version of Hyperion Planning related, right from the preparation of requirements questionnaire for workshop, analyzing the responses from stake holders and finally prepare the BRD or FSD (Functional specification document) before moving on to the next phases of Hyperion Planning Implementation life-cycle.
As you know, all projects kick start with project charter on hand to understand very high level scope of the project.
As a first step, it would be very important to understand the current state of the planning, budgeting and reporting process in place. Once we identify the stake holders ., primarily with FP&A (Financial Planning and Analysis) department, conducting the several workshops to interact with them would be the next step.
Here is the list of questions that would help us to understand the current landscape of the planning, budgeting and reporting systems or processes.
This is not an exhaustive list for sure but it would get you going.
1 Please explain the current budgeting and forecasting cycle?
Please expect client's response as described below. This is a sample write-up for your understanding.,
The client's annual budget process is a traditional incremental budgeting. Under this process, budgets are developed and reviewed in the context of the previous year’s budget with funding decision-making primarily focusing on the incremental change to the budget.
Currently budget process has both bottom-up and top-down characteristics. From corporate strategy stand point it would be a top down and all functions/cost centres use bottom-up approach
Though strategic plan and limited performance data is incorporated into functions budget request submissions every other year, this information does not align to a comprehensive company wide strategic plan and typically serves as contextual or reference information rather than as a driver for the allocation of budget resources.
Further, the company capital budget does not directly integrate to the operating budget. Hence, decisions regarding capital investment are often made without direct access to information regarding the impact on long-term operating expenditures.
The Client currently develops its annual budget using a disparate collection of software tools throughout the budget development and execution life-cycle. Accordingly, the company's budget process has been aligned around these different tools and can be characterized as having many discrete sub-processes with limited integration.
The lack of an integrated, end-to-end budgeting application drives many inefficiencies, puts constraints on budgetary analysis, and lacks a platform for effective implementation or integration of current or future policy initiatives to the budget process such as strategy management to support Budgeting for Results or linking capital and operating budgeting.
2 How frequently would forecasting be performed (Monthly/Quarterly)?
3 Is there any requirement of Rolling Forecast (12 month at any point of time)
4 Is P&L Budgeting and Forecasting in-scope?
5 Is Workforce and Compensation Planning in-scope?
6 Is Balance Sheet Planning in-scope?
7 Is Cash Flow Planning in-scope?
8 Is Capex Planning in-scope?
9 Is Projects Planning in-scope?
10 How many number of users would be using the future budgeting and forecasting system?
11 Does budgeting use single or multiple currencies?
12 What is Reporting Currency?
13 Does Budget write back to ERP GL is in-scope?
14 Does Revenue Planning and Forecasting done at Location level?
15 Does budget/forecast preparation done at location level but entered into Planning & Budgeting application by Region level FP&A Team?
16 Would you anticipate more granular level (detailed) than GL accounts level for Planning and forecasting?
17 What would be the Time granularity for planning, budgeting and forecasting?
18 Would you anticipate to plan the Revenue and Opex based on prior year/month's actual average trends and to be able to make adjustments on top of the trends?
19 Would you plan to use the driver based revenue or opex planning?
20 Does workforce compensation planning and budgeting to be done at employee level, job level or Employee and job level?
21 Are there any compensation related expenses driven by formula rather than direct input?
22 How hourly based expenses are going to be budgeted (Hourly full time vs Part time)?
23 Would you anticipate to plan employee transfer between departments and Locations?
24 Would you anticipate to plan employee terminations/departures/retirements in a budget cycle?
25 Does Opex planning happens by department using GL accounts?
26 Identify and group the Opex GL accounts that are relevant to departments is in-scope?
27 Are "Facility Expenses" going to be derived using drivers or Direct input?
28 Are "Travel and Entertainment Expenses" going to be derived using drivers or direct input?
29 Are "Marketing Expenses" going to be derived using drivers or direct input?
30 Are "Selling Expenses" going to be derived using drivers or direct input?
31 Are there any Expenses to be allocated for reporting purpose?
32 Do you have any list of Existing Asset details for Depreciation calculations?
33 How many new assets to be budgeted for budget cycle?
34 What is Depreciation method for New Assets?
35 Are existing and new "leased assets" depreciation calculations in-scope for budgeting?
36 Is Asset transfer process in-scope for budgeting?
37 Is asset retirement process in-scope for budgeting?
38 How many financial reports to be built for management reporting?
39 Does Variance reporting generated from Budgeting or GL Systems?
40 Do you have any other reporting requirements that budgeting systems should meet?
I will prepare a sample requirements document (BRD / FSD) based on the common responses for the above questions in next blog.
Happy Learning!
Welcome to the Hyperion Planning blog series. Earlier I have written a blog on Hyperion Financial management (HFM) requirements gathering, analysis and preparation of Business Requirements Document (BRD). It was quite lengthy 5 series blog.
This time I want to write a bit crisp version of Hyperion Planning related, right from the preparation of requirements questionnaire for workshop, analyzing the responses from stake holders and finally prepare the BRD or FSD (Functional specification document) before moving on to the next phases of Hyperion Planning Implementation life-cycle.
As you know, all projects kick start with project charter on hand to understand very high level scope of the project.
As a first step, it would be very important to understand the current state of the planning, budgeting and reporting process in place. Once we identify the stake holders ., primarily with FP&A (Financial Planning and Analysis) department, conducting the several workshops to interact with them would be the next step.
Here is the list of questions that would help us to understand the current landscape of the planning, budgeting and reporting systems or processes.
This is not an exhaustive list for sure but it would get you going.
1 Please explain the current budgeting and forecasting cycle?
Please expect client's response as described below. This is a sample write-up for your understanding.,
The client's annual budget process is a traditional incremental budgeting. Under this process, budgets are developed and reviewed in the context of the previous year’s budget with funding decision-making primarily focusing on the incremental change to the budget.
Currently budget process has both bottom-up and top-down characteristics. From corporate strategy stand point it would be a top down and all functions/cost centres use bottom-up approach
Though strategic plan and limited performance data is incorporated into functions budget request submissions every other year, this information does not align to a comprehensive company wide strategic plan and typically serves as contextual or reference information rather than as a driver for the allocation of budget resources.
Further, the company capital budget does not directly integrate to the operating budget. Hence, decisions regarding capital investment are often made without direct access to information regarding the impact on long-term operating expenditures.
The Client currently develops its annual budget using a disparate collection of software tools throughout the budget development and execution life-cycle. Accordingly, the company's budget process has been aligned around these different tools and can be characterized as having many discrete sub-processes with limited integration.
The lack of an integrated, end-to-end budgeting application drives many inefficiencies, puts constraints on budgetary analysis, and lacks a platform for effective implementation or integration of current or future policy initiatives to the budget process such as strategy management to support Budgeting for Results or linking capital and operating budgeting.
2 How frequently would forecasting be performed (Monthly/Quarterly)?
3 Is there any requirement of Rolling Forecast (12 month at any point of time)
4 Is P&L Budgeting and Forecasting in-scope?
5 Is Workforce and Compensation Planning in-scope?
6 Is Balance Sheet Planning in-scope?
7 Is Cash Flow Planning in-scope?
8 Is Capex Planning in-scope?
9 Is Projects Planning in-scope?
10 How many number of users would be using the future budgeting and forecasting system?
11 Does budgeting use single or multiple currencies?
12 What is Reporting Currency?
13 Does Budget write back to ERP GL is in-scope?
14 Does Revenue Planning and Forecasting done at Location level?
15 Does budget/forecast preparation done at location level but entered into Planning & Budgeting application by Region level FP&A Team?
16 Would you anticipate more granular level (detailed) than GL accounts level for Planning and forecasting?
17 What would be the Time granularity for planning, budgeting and forecasting?
18 Would you anticipate to plan the Revenue and Opex based on prior year/month's actual average trends and to be able to make adjustments on top of the trends?
19 Would you plan to use the driver based revenue or opex planning?
20 Does workforce compensation planning and budgeting to be done at employee level, job level or Employee and job level?
21 Are there any compensation related expenses driven by formula rather than direct input?
22 How hourly based expenses are going to be budgeted (Hourly full time vs Part time)?
23 Would you anticipate to plan employee transfer between departments and Locations?
24 Would you anticipate to plan employee terminations/departures/retirements in a budget cycle?
25 Does Opex planning happens by department using GL accounts?
26 Identify and group the Opex GL accounts that are relevant to departments is in-scope?
27 Are "Facility Expenses" going to be derived using drivers or Direct input?
28 Are "Travel and Entertainment Expenses" going to be derived using drivers or direct input?
29 Are "Marketing Expenses" going to be derived using drivers or direct input?
30 Are "Selling Expenses" going to be derived using drivers or direct input?
31 Are there any Expenses to be allocated for reporting purpose?
32 Do you have any list of Existing Asset details for Depreciation calculations?
33 How many new assets to be budgeted for budget cycle?
34 What is Depreciation method for New Assets?
35 Are existing and new "leased assets" depreciation calculations in-scope for budgeting?
36 Is Asset transfer process in-scope for budgeting?
37 Is asset retirement process in-scope for budgeting?
38 How many financial reports to be built for management reporting?
39 Does Variance reporting generated from Budgeting or GL Systems?
40 Do you have any other reporting requirements that budgeting systems should meet?
I will prepare a sample requirements document (BRD / FSD) based on the common responses for the above questions in next blog.
Happy Learning!
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Hello I learned about your blog through facebook. I am essbase certified and have learned basic hyperion planning stuff through videos. I am currently a tester for hyperion planning application, but want to go on the business analyst/functional route, but am very confused. Can you help me out?
ReplyDeleteI hope some of these blog series would help you to understand the details of business analysis side of the Hyperion implementations.
DeleteYou may have to gain a domain or functional knowledge about a business to be able to successful as a BA. I would suggest you pick up some finance knowledge on how Management reporting works. Also budgeting and forecasting knowledge would also help your transition.
DeleteThanks
Padmaja
Very nice information. Thank you for sharing. It is clear !
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteHi padmaja ,
ReplyDeleteCould u please provide a course in udemy for epbcs and pbcs.