Traditional financial planning approaches often fall short in today's dynamic business environment. To overcome this limitation, future focused finance teams are increasingly turning to Extended Planning and Analysis (XP&A) to widen their planning horizon and drive better business outcomes. Explore why it is crucial to adopt Workday Adaptive Planning, a leading planning solution that unlocks the full potential of XP&A.

Organizations are increasingly recognizing the limitations of traditional financial planning and analysis (FP&A) approaches. While financial data inputs provide valuable insights into a organization's performance, they only scratch the surface of what drives success. To truly understand and optimize business outcomes, organizations must embrace a more forward thinking approach known as XP&A.  

Invisors can help you to realize the key benefits of XP&A planning and its potential to revolutionize the way your organization operates. Let's explore these benefits now:


# 1 |   Break down silos

One of the fundamental challenges with traditional planning processes is the lack of insight into how values are determined. Often, organizations rely on siloed planning, where each department or business line focuses solely on its own budget and plan. This fragmented approach can hinder the alignment between different parts of the organization and prevent a comprehensive understanding of the bigger picture. By adopting XP&A, you can break down these silos and foster increased alignment between functional areas.


# 2 |    Reduce resource fatigue

Traditional planning processes often consume significant amounts of time and effort, leaving little room for deeper analysis or more strategic activities. By streamlining planning workflows and leveraging automation, XP&A within Workday Adaptive Planning frees up valuable full-time equivalents (FTE) to focus on higher-level functions and more meaningful analysis.


# 3 |    Decrease room for error

Traditional planning processes are prone to human error, particularly when dealing with large amounts of data and complex calculations. With XP&A in Workday Adaptive Planning, organizations can leverage advanced technologies, such as machine learning, to predict anomalies, virtual what if scenario planning & analysis, workflow & process tracking, consistent modeling, and reporting across users. This ensures a consistent and accurate planning process.


# 4 |    Integrate financial + non-financial data

While financial-based drivers are important, they only tell part of the story. By integrating operational data into the planning process, organizations gain better insights into the factors driving financial performance. Operational decisions, often overlooked in traditional financial planning, become more transparent and understandable. This enhanced visibility empowers organizations to make informed decisions that have a direct impact on financial outcomes. XP&A provides the rationale and context to build the values reflected in financial reports, going beyond simple variances.


# 5 |    Tap into the potential for machine learning

By leveraging advanced analytics, organizations can gain better indications of future financial parameters. Machine learning algorithms can analyze historical data, identify patterns, and predict future outcomes with a higher degree of accuracy. This predictive capability enables organizations to proactively adjust their plans and optimize their performance in an ever-changing business landscape.


To fully harness the power of XP&A, organizations need a multi-instance planning platform that accommodates varying degrees of planning granularity. Different departments and business lines have different planning requirements. While finance may plan on a monthly or quarterly basis, other functions such as marketing, supply chain, or retail stores require daily planning. A multi-instance planning platform allows different areas to work independently while still considering specific points of interdependencies. This flexibility enhances collaboration and enables each function to plan effectively according to its unique needs.


XP&A represents a paradigm shift in the way organizations plan and analyze their operations. It will allow organizations to take best-in-class practices from finance and cascade them to other areas of the business. By moving beyond traditional financial numbers, companies can unlock a wealth of insights and optimize their business performance. XP&A fosters alignment, reduces resource drag, enhances accuracy and consistency and leads to a more integrated decision-making process. With the potential of machine learning and advanced analytics, organizations can gain a competitive edge by leveraging the power and flexibility of Workday Adaptive Planning to drive robust growth and success.


To learn more about how Invisors + Workday Adaptive Planning can provide game changing XP&A tools, reach out to schedule time using the below.

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