Driver-based planning is a management approach that uncovers a businesses’ main business drivers and makes a sequence of business plans that mathematically model how items imperative for organizational success would be impacted by various factors.
Driver-based planning’s goal is to center business plans on what is most like to drive success. Forecasting business drivers impartially with mathematical models is useful because pinpointing key business drives subjectively can be difficult. Models can be efficiently made using spreadsheets or created using data modeling software applications.
- Improved strategic planning
- Neutral analytical thinking
- High quality forecasting and planning
- Agile decision-making
- Better collaborative planning
- Improved analytics
Driver-based models need not be extremely detailed or complex. For models to be exact and able to be acted on, those creating the models need to focus on key performance drivers as well as key performance metrics derived from them. These are necessary drivers of revenue and cost across all business functions.