Monday Mar 04, 2013

Bridging the Gap Between Project Management and the CFO’s Office

Organizations undertake numerous projects and initiatives to generate revenue,  improve productivity and increase profits in the hope that they will have the desired effect. But in large and multi-national companies, how can they sensibly and efficiently decide which projects to undertake, how to assign resources, and how to fund them?

Aligning organizational plans (long term and short term) with financial plans and forecasts while enabling the various Lines of Business (LOBs) to lead the projects might sound like it would be next to impossible, but with proper project financial planning tools, it can work really well!

Whether you have indirect (or administrative projects) that generate cost but not revenue, capital projects or contract projects (that generate cost and revenue), or a combination of them, having a well defined, easy to navigate process for documenting, evaluating , funding and approving multiple projects from many LOBs is crucial for forecasting cost and revenues, and booking resources and staff.


Consider these steps:


Step 1: Plan for expenses and revenues (where appropriate), by individual project – and by groups of projects

Step 2: Generate and analyze project financials for individual projects and groups of projects

Step 3: Analyze the funding requirements and revenue generation potential for individual projects and groups of projects

Step 4: Analyze and approve workforce requirements and asset requirements for individual projects and groups of projects

Step 5: Enable the analysis, and approval process by Business Unit Leaders and Finance managers for individual projects and groups of projects within the overall financial plan

Step 6: Enable intercompany project planning and reconciliation to get a complete corporate view of projects within the overall financial plan

Step 7: Enable continued monitoring of project financials within the overall financial plan


Oracle Hyperion Project Financial Planning embraces these steps and provides the needed structure and automation to simplify an otherwise complex set of processes.

When proposing and planning new initiatives, understanding the financial implications on corporate financial plans and objectives and gaining consensus among all concerned parties are a major challenge for many organizations. Without good financial and operational information for both proposed and current projects, it is difficult to analyze and make decisions on new projects to undertake. Oracle Hyperion Project Financial Planning provides the ability for all involved parties to help with this decision making.

It bridges the gap between the detailed task oriented project plans that a project manager within each LOB maintains, and the overall impact of projects on corporate finances and resources. Management can get a holistic view of how their assets and resources are allocated, and then monitor performance and receive information about return on investment (ROI).

Oracle Hyperion Project Financial Planning bridges the gap between LOB project management and the financial plans and forecasts within the CFO’s office.

For more information, click here to read Oracle’s new whitepaper on Oracle Hyperion Project Financial Planning: Aligning Financial and Project Plans.

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