Value Drivers for Financial Planning
Journal
Strategic Finance
Type
journal article
Date Issued
2023
Author(s)
Abstract
In an increasingly volatile, uncertain, complex, and ambiguous (VUCA) environment, predictable planning cycles have been replaced by opaque future prospects. These developments put a strain on financial planning and the associated decision-making process. Driver-based planning and forecasting offers an analytical and scenario-based approach for dynamically steering the business. However, identifying and selecting the underlying value drivers remains a challenge in practice. Based on a case study of Swarovski, a leading manufacturer of crystal glass and jewelry, this article discusses key challenges and success factors in selecting value drivers and proposes a structured value driver selection process.
Language
English
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Institute of Management Accountants
Volume
105
Number
6
Start page
42
End page
50
Pages
9
Subject(s)
Division(s)