$150K in Annual Margin Impact by Implementing Dynamic Planning
1,000+ hours of organization time freed up
$150K+ in annual margin impact driven
Established regular partnership between finance and operations managers
Labor Intensive Planning Cycle & Outdated Budgets
Hospitals and healthcare systems across the U.S. are facing major challenges with the traditional budgeting process. Despite devoting thousands of hours to creating the budget, leaders are left to question its overall value and accuracy once it is complete. Operational leaders and financial planning teams devote up to 30 percent of their overall time throughout the course of their careers to this broken process.
At this small Mid-Atlantic community health system, leaders needed a way to reduce the time and resources devoted to a budgeting process that yielded minimal value. They needed to be able to leverage that freed up time to support a more agile planning process and improve communication, accountability, and trust between finance and operational stakeholders.
Adopt a Rolling Forecast
As part of this more agile planning approach, the organization can now generate their annual plan at a higher level that can be revisited on a quarterly or ad hoc basis leveraging StrataJazz® Rolling Forecasting. With the ability to update the forecast throughout the year, they can continue to update and monitor targets as they identify gaps to the plan and need to establish initiatives to close those gaps.
Executive sponsorship from the CFO allowed them to drive this change across the organization, building trust in the process and the data. The team used capabilities within StrataJazz® Management Reporting and Productivity Reporting to help keep managers focused on meeting or exceeding prior performance to drive a continuous performance mindset. Managers gained confidence in the numbers being reported, as they could now leverage a metric-based scorecard with drill-path into details needed to understand the financial activities driving their metrics. Access to this scorecard created engagement and accountability to meet financial targets.
Drove $150K Margin Impact and Cut 1,000 Hours from Budgeting
With support from their CFO, this community health system has seen significant impact following the implementation of their new approach. By adopting a rolling forecast and holding operational leaders accountable to financial performance, the organization has seen $150K in annual savings and cut 1,000 hours from their budgeting process.
Without the traditional budgeting process, managers now focus on month over month performance, building a more agile and financially engaged culture. As a result, leaders expect to see ongoing improvements as managers grow their financial acumen and leverage financial data to make day-to-day operational decisions that will help them meet or exceed their targets.