Category Archives: Excel Hell

Next-Generation Planning and Finance, A Broader and Slightly Deeper Look

This post was prompted by feedback to the last prediction in my 2021 annual predictions post, The Rebirth of Planning and Enterprise Performance Management.  Excerpt:

EPM 1.0 was Hyperion, Arbor, and TM1. EPM 2.0 was Adaptive Insights, Anaplan, and Planful (nee Host Analytics).  EPM 3.0 is being born today.  If you’ve not been tracking this, here a list of next-generation planning startups …

Since that post, I’ve received feedback with several more startups to add to the list and a request for a little more color on each one.  That’s what I’ll cover in this post.  I can say right now this got bigger, and took way longer, than I thought it would at the outset.  That means two things:  there may be more mistakes and omissions than usual and wow if I thought the space was being reborn before, I really think it now.  Look at how many of these firms were founded in the past two years!

Order is alphabetical.  Links are to sources.  All numbers are best I could find as of publication date (and I have no intent to update).  I have added and/or removed companies from the prior post based on feedback and my subjective perception as to whether I think they qualify as “next generation” planning.  Note that I have several and varied relationships with some of these companies (see prior post and disclaimers).  List is surely not inclusive of all relevant companies.

  • Allocadia.  Founded in Vancouver in 2010 by friends from Business Objects / Crystal Reports, this is a marketing performance management company that has raised $24M in capital and has 125 employees.  Marketing planning is a real problem and they’re taking, last I checked, the enterprise approach to it.  They have 93 reviews and 4.1 stars on G2.
  • Causal.  Founded in 2019 in London.  I can’t find them in Crunchbase, but their site shows they have seed capital from Coatue and Passion Capital.  They promise, among other things, to “make finance beautiful” and the whole thing strikes me as a product-led growth strategy for a new tool to build financial models outside of traditional spreadsheets.
  • Decipad.  Co-founded in late 2020 in the UK by friend, former MarkLogic consultant, and serial entrepreneur Nuno Job, Decipad is a seed-stage, currently fewer than 10 employee, startup that, last I checked, was working on a low-code product for planning and modeling for early-stage companies.
  • Finmark.  Raleigh-based, and founded in 2020, this company has raised $5M in seed capital from a bevy of investors including Y Combinator, IDEA Fund, Draper, and Bessemer.  The company has about 50 employees, a product in early access mode, and is a product built “by founders, for founders” to provide integrated finance for startups.
  • Grid.  This company offers a web-based tool that appears to layer atop spreadsheets, using them as a data source to build reports, dashboards and apps.  The company was founded in 2018, has around 20 people, and is based in Reykjavik.  The founder/CEO previously served as head of product management at Qlik and is a “proud data nerd.”  Love it.
  • LiveFlow was founded in 2021, based in Redwood City, has raised about $500K in pre-seed capital from Y Combinator and Seedcamp.  The company offers a spreadsheet that connects to your real-time data, supporting the creation of timely reports and dashboards.  Connectivity appears to be the special sauce here, and it’s definitely a problem that needs to be solved better.
  • OnPlan.  Founded in 2106 in San Francisco by serial entrepreneur and new friend, David Greenbaum, OnPlan is a financial modeling, scenario analysis, and forecasting tool.  The company has raised an undisclosed amount of angel financing and has over 30 employees.  Notably, they are building atop Google Sheets which allows them “stand on the shoulders of giants” and provide a rare option that is, I think, Google-first as opposed to Excel-first or Excel-replacement.
  • PlaceCPM.  Founded in 2018 in Austin, this company takes a focused approach, offering forecasting and planning for SaaS and professional services businesses, built on the Salesforce platform, and with pricing suggestive of an SMB/MM focus. The company has raised $4M in pre- and seed financing.  The product gets 4.9 stars on G2 across 13 reviews.
  • Plannuh.  Pronounced with a wicked Southie accent, Plannuh is Boston for Planner, and a marketing planning package that helps marketers create and manage plans and budgets.  Founded by (a fellow) former $1B company CMO, Peter Mahoney, the company has raised $4M and has over 30 employees.  As mentioned, I think marketing planning is a real problem and these guys are taking a velocity approach to it.  They have 5.0 stars on G2 across five reviews.  I’m an advisor and wrote the foreword to their The Next CMO book.
  • Pry.  Founded in San Francisco in 2019 by two startup-experienced Cal grads (Go Bears!), with investment from pre-seed fund Nomo Ventures, Pry has fewer than 10 employees, and a vision to make it simple for early-stage companies to manage their budget, hiring plan, financial models, and cash.
  • Runway.  This company is backed with a $4.5M seed round from the big guns at A16Z.  I can’t find them on Crunchbase and their website has the expected “big thinking but no detail” for a company that’s still in stealth.  Currently at about 10 people.
  • Stratify.  Founded in 2020 in Seattle, this company has raised $5.0M to pursue real-time and collaborative budgeting and forecasting to support “continuous planning” (which is reminiscent of Planful’s messaging).  Both the founder and the lead investor have enterprise roots (with SAP / Concur) and plenty of startup experience.  The company has fewer than 10 employees today.
  • TruePlan.  Founded in 2020, with three employees, and seemingly bootstrapped I may have found these guys on the early side.  While the product appears still in development, the vision looks clear:  dynamic headcount management, that ties together the departmental (budget owner) manager, finance, recruiting, and people ops.  Workforce planning is a real problem, let’s see what they do with it.
  • VaretoFounded in 2020 in Mountain View, with fewer than 10 employees and some pretty well pedigreed founders, the company seeks to help with strategic finance, reporting, and planning.  The website is pretty tight-lipped beyond that and I can’t find any public financing information.

Thanks to Ron Baden, Nuno Job, and Bill Rausch for helping me track down so many companies.

(Added Valsight 2/10/21.)

Putting the A Back in FP&A with Automated, Integrated Planning

I was reading this blog post on Continuous Planning by Rob Kugel of Ventana Research the other day and it reminded me of one of my (and Rob’s) favorite sayings:

We need to put the A back in FP&A

This means that the financial planning and analysis (FP&A) team at many companies is so busy doing other things that it doesn’t have time to focus on what it does best and where it can add the most value:  analysis.

This begs the question:  where did the A go?  What are the other things that are taking up so much time?  The answer:  data prep and spreadsheet jockeying.  These functions suck time away and the soul from the FP&A function.

dataprep

Data-related tasks — such as finding, integrating, and preparing data — take up more than 2/3rds of FP&A’s time.  Put differently, FP&A spends twice as much time getting ready to analyze data than it does analyzing it.  It might even be worse, depending on whether periodic and ad hoc reporting is included in data-related task or further carved out of the 28% of time remaining for analytics, as I suspect it is.

spreadsheetsrule

It’s not just finance who loves spreadsheets.  The business does do:  salesops, marketingops, supply chain planners, professional services ops, and customer support all love spreadsheets, too.  When I worked at Salesforce, we had one of the most sophisticated sales strategy and planning teams I’ve ever seen.  Their tool of choice?  Excel.

This comes back to haunt finance in three ways:

  • Warring models, for example, when the salesops new bookings model doesn’t foot to the finance one because they make different ramping and turnover assumptions.  These waste time with potential endless fights.
  • Non-integrated models.  Say sales and finance finally agree on a bookings target and to hire 5 more salespeople to support it.  Now we need to call marketing to update their leadgen model to ensure there’s enough budget to support them, customer service to ensure we’re staffed to handle the incremental customers they sign, professional services to ensure we’re have adequate consulting resources, and on and on.  Forget any of these steps and you’ll start the year out of balance, with unattainable targets somewhere.
  • Excel inundation.   FP&A develops battle fatigue dealing with and integrating some many different versions of so many spreadsheets, often late and night and under deadline pressure.  Mistakes gets made.

So how can prevent FP&A from being run over by these forces?  The answer is to automate, automate, and integrate.

  • Automate data integration and preparation.  Let’s free up time by use software that lets you “set and forget” data refreshes.  You should be able to setup a connector to a data source one, and then have it automatically run at periodic intervals going forward.  No more mailing spreadsheets around.
  • Automate periodic FP&A tasks.  Use software where you can invest in building the perfect monthly board pack, monthly management reports, quarterly ops review decks, and quarterly board reports once, and then automatically refresh it every period through these templates.  This not only free up time and reduces drudgery; it eliminates plenty of mistakes as well.
  • Integrate planning across the organization.  Move to a cloud-based enterprise performance platform (like Host Analytics) that not only accomplishes the prior two goals, but also offers a modeling platform that can be used across the organization to put finance, salesops, marketingops, professional services, supply chain, HR, and everyone else across the organization on a common footing.

Since the obligatory groundwork in FP&A is always heavy, you’re not going to succeed in putting the A back in FP&A simply by working harder and later.  The only way to put the A back in FP&A is to create time.  And you can do that with two doses of automation and one of integration.