Planning for the Recession with Power BI
As the potential for global recession looms, organizations are looking for ways to shore-up finances and operations. According to Gartner, nearly 50% of leading CFOs “believe supply chain volatility and shortages will last beyond 2022”! Most expressed struggles finding and maintaining adequate talent. Nearly 70% believe that non-labor input costs will rise drastically as well. What’s a company to do in the face of such dire predictions?
McKinsey recommends that to survive a downturn,
Companies should rely on scenario planning and prepare a set of long-term moves that will help them thrive in a higher-for-longer environment.
By utilizing Power BI’s visual analysis and turning on Planning and Write-back capabilities, leading organizations are capitalizing on the opportunity to Plan and Forecast their way ahead of the impending recession. Here’s how they are, and you too, can do such.
Modeling ‘What-If’ Scenarios in the Wake of a Recession
We’re in a moment of economic uncertainty. In the face of uncertainty, business leaders can help their organizations be more in control by envisioning possible alternatives and modeling “what-if” scenarios across all aspects of the business.
Another way modeling scenarios helps is by allowing decision makers to leverage assumptions and driver-based formulas within your models. These assumptions can “drive” values across other areas of the business to update in real-time as new data is entered. This can help corollary departments to make necessary adjustments and streamline “getting ahead of pending recession issues” across the org.
Upon modeling and seeing the results of potential “what-if” scenarios, your team can make initial decisions knowing the possible impact. From there, team members can save the best-case scenarios as updated plans or forecasts, and then execute; enabling your organization to proactively stabilize future outcomes.
Planning for the Recession and Beyond
With a potential recession lingering, crucial processes across the org may be impacted. As such, it’s important to consider adjusting associated plans, including Supply Chain Planning (SCP) and Sales Forecasting, to name just a few. Through modern Power BI ecosystem solutions (aka add-ons), some leading organizations are doing just that. Capitalizing on their Power BI investment, they unify data, tools, and people, while providing Planning and Write-back features that allow for real-time collaboration and decision making — all essential processes in light of a looming recession.
The recession is only one of many events that can affect your business. Regardless if the recession comes to fruition or not, it’s important to focus on the long-term benefits of Planning.
In addition to helping prepare for a recession, Planning can help you:
- Stay on top of economy and market trends
- Maintain your company’s overall financial health
According to a recent Forbes article…
While public debate around the inevitability of an economic downturn rages, smart business leaders are hoping for the best and planning for the worst.
Maximizing Power BI for Recession Planning
If you’re Planning for the worst, then being prepared is critical. If you’re Planning for the best, then knowing where and how your business can adapt is essential in order to stay competitive and relevant today. Regardless; Planning is key
And, when it comes to Recession Planning, Tania Tome of Ecokaya suggests (via Forbes)…
Create a long-term vision for growth with short-term action plans and robust scenario planning. Motivation is an important muscle to develop to face obstacles and adversity and be prepared to fight until we win.
Utilizing Power BI for Analysis PLUS Modeling and Forecasting is a great way to put your organization ahead of the curve amidst the impending recession. Interested to learn more? Take a look at how Power ON Visual Planner can take your Business Intelligence stack to the next level.
Until next time…
