Decision Making to Enterprise Excellence

Information flows incessantly and markets shift at unprecedented rates; the ability to make swift, informed decisions is paramount. At the heart of this capability lies the concept of "Decision Excellence." This idea is championed by Charlie Gottdiener, CEO of Anaplan, a leader in the enterprise software industry renowned for its commitment to connected planning.

The Business Value of Decision Excellence

Recent research underscores the profound impact of superior decision-making on company performance. What does decision excellence mean? It encompasses the velocity, quality, and efficiency of decisions. Organizations excelling in these areas have a great potential to outperform their peers significantly. There is tremendous pressure executives face in today’s environment. With vast amounts of data streaming in—from internal operations to external economic fluctuations and competitive actions—leaders must navigate this complexity swiftly and effectively. The ability to process and act on this information is essential for maintaining a competitive edge.

Enterprise Connectedness: A Pillar of Better Decision Making

Central to achieving decision excellence is the concept of "enterprise connectedness." The planning function should be integrated across various organizational functions, from finance and sales to supply chain and operations. This interconnected approach ensures that decisions at the highest levels resonate through every layer of the organization and across all functions.

One can imagine this connectedness operating on three dimensions:

1. Vertical Connectedness: Aligning high-level strategic decisions with operational execution at every organizational level.

2. Horizontal Connectedness: Ensuring cohesive decision-making across different business units and functions.

3. External Connectedness: Strengthening the linkages with suppliers and customers, which are critical in adapting to external changes.

Companies that excel in these areas are better positioned to make high-quality decisions quickly, fostering agility and resilience.

The Connected Enterprise in Action

The evolution from connected planning to the broader vision of a connected enterprise represents a transformative shift in how businesses operate. Traditional enterprises often spend disproportionate amounts of time consolidating data and ensuring systems are aligned. In contrast, a connected enterprise focuses its energy on decision-making and scenario planning, thanks to integrated, real-time data flows.

Drawing example from Anaplan itself, their ability to assign sales quotas on the first day of the new fiscal year is a testament to their efficient planning processes. Most organizations struggle with delays. Dynamic planning capabilities should ensure the executives hit the ground running with a full 12-month runway. This agility allows for continuous refinement and real-time adjustments to their plans, offering a significant strategic advantage.

3 principles

1. Strategy-Led: Decisions are rooted in a clear, overarching strategy that guides the company's direction.

2. Values-Based: A strong emphasis on values like innovation and accountability ensures that the organizational culture supports its strategic goals.

3. Execution Discipline: Leveraging their connected enterprise model to ensure consistent, real-time decision-making and flawless execution.

Incidentally, Anaplan uses an internal initiative, Anaplan on Anaplan (AOA) that embodies these principles. The AOA team uses their platform to create models that enhance decision-making across all company functions, ensuring that the right information is always available at the right time.

The Future of Decision Excellence: Embracing Generative AI

One can envision three key areas where gen AI will add value:

1. Enhanced Access: Gen AI will enable executives to access insights through natural language queries, making it easier to obtain critical information on the go.

2. Predictive Insights: AI-driven scenario planning will provide early warnings and suggest alternative strategies, reducing the burden on human decision-makers.

3. Efficiency Gains: Leveraging AI to automate and optimize model building processes, drawing on insights from usage of metadata.

These advancements will not only speed up decision-making but also improve the quality and precision of the decisions made.

To Sum up:

Decision excellence is a critical driver of enterprise performance in today’s complex and fast-paced business environment. By fostering enterprise connectedness and embracing cutting-edge technologies like gen AI, organizations can significantly enhance their decision-making capabilities. The future belongs to those who can make informed, agile decisions that drive sustained success.