Contact Information: Media Contacts: Derek Kober GlobalFluency 650-433-4233 Greg Schneider Adaptive Planning 650-810-0525
Adaptive Planning and BPM Forum Poll Reveals We've Reached Bottom in Downturn and Expect Economy to Improve
Quarterly Survey of Corporate Financial Pros Shows Increasing Optimism, but High Levels of Economic Uncertainty Continue to Drive Frequent Re-Planning and Re-Forecasting
| Source: Adaptive Planning
MOUNTAIN VIEW, CA--(Marketwire - June 9, 2009) - Fifty-three percent of company financial
professionals say conditions are worse now than six months ago, a marked
improvement compared with the 86 percent who reported so three months ago.
And 48 percent expect conditions to improve in next six months, over three
times as many who said so last quarter, according to the results of an
online Performance and Planning poll released today by Adaptive Planning
and the Business Performance Management (BPM) Forum.
These and other findings point to indications that the economy is bottoming
out, according to company financial experts. The vast majority of
respondents expect the economy to begin to recover within the next year,
with 37 percent predicting the turnaround to start in 2009 and a further 44
percent predicting a recovery beginning in the first half of 2010.
The study also shows improvements in growth expectations over the next six
months, with 50 percent predicting revenue growth (versus 18 percent last
quarter), and 34 percent seeing growth in profit margins (versus only 5
percent last quarter).
Recovery is a mixed picture though, as expenditures and headcount are still
lagging and will likely fall further. Capital spending growth plans have
improved only slightly from last quarter's survey (20 percent see growth in
the next six months versus 14 percent in the last survey). In addition, a
full 40 percent expect further cuts in capital spending over the next six
months, and a third still predict further staff reductions.
Despite the improved recovery timeframe, financial professionals are still
experiencing significant economic uncertainty, driving elevated levels of
re-planning and re-forecasting -- with more re-planning and what-ifs
expected going forward. In fact, a majority of companies missed their
revenue plan last quarter. Similar to the previous quarter, 28 percent
re-planned, re-forecasted, or created what-if scenarios three or more times
last quarter -- twice as many as did so in Q4 of 2008. And 50 percent
expect to perform even more re-planning and what-if analyses going forward.
"We are encouraged that corporate financial professionals are starting to
see the light at the end of the tunnel, but they still need help to manage
through what appears to be the trough of the downturn," said William A.
Soward, CEO of Adaptive Planning. "Regardless of whether companies are
preparing for expected growth or further decline, there remains significant
uncertainty as to what the near future holds, so better and more frequent
scenario planning is required to make better forecasts and decisions."
In terms of growth obstacles, demand for goods and services continues to
top the list of key concerns, with access to credit and financial market
stability remaining as the number two choice. Nearly two thirds of
respondents expect little impact from government programs, a slightly more
positive sentiment than last quarter's results.
Among the top leading indicators of economic recovery were unemployment
rates and the stock market, both of which have been in flux recently and
add to the levels of uncertainty that budgeting and planning professionals
face.
The online poll surveyed financial professionals from companies in over
twenty industries and ranging in size from under $10 million to over $1
billion in revenues, with 56 percent categorized as midsized or large
companies (more than 100 employees). This is the third quarterly poll
examining perspectives on key economic conditions, individual company
performance, and the role of planning and forecasting in the current
economic downturn.
The Planning and Performance poll will be conducted once per quarter and
the results tallied against those of previous quarters to identify trends
in overall economic conditions and planning practices. For more information
on the summary report of the findings, visit
http://marketing.adaptiveplanning.com/forms/ppindex.
About the BPM Forum
The Business Performance Management (BPM) Forum is dedicated to advancing
performance accountability, process improvement, operational visibility and
compliance in global organizations. It provides support to thousands of
senior executives and practitioners representing enterprises with more than
$500 billion in combined annual revenues. The BPM Forum's C-level members
engage in research, thought leadership, and knowledge exchange programs
around a variety of strategic issues and challenges. More information is
available at: www.BPMForum.org
About Adaptive Planning
Adaptive Planning is the worldwide leader in on-demand financial planning
and reporting solutions that improve operational efficiency, strengthen
companywide collaboration, and drive better business decisions in companies
of all sizes. Adaptive Planning makes it easy to move beyond spreadsheets
and automate budgeting, forecasting, reporting, and "what-if" analysis,
without the cost and complexity associated with traditional business
intelligence and BPM software. With free software, free trials, and both
on-demand and on-premise deployment options, Adaptive Planning is the
fastest and easiest way for finance organizations to enhance their agility
and strategic value. Adaptive Planning is headquartered in Mountain View,
Calif. and can be reached at 650-528-7500 or www.adaptiveplanning.com.