About Us
History of Planning Models Ltd
Planning Models Limited was established in 2007 to provide expert services in business planning and in the development and use of computer models to support our clients' decision making.
The company was created by John Taylor, previously a co-founder and partner responsible for PwC Consulting UK’s business modelling consulting practice. John also led PwC Consulting UK’s software products business and established and ran Cartesis UK Ltd, a leading provider of corporate financial reporting and planning systems for multinational corporations.
Business modelling benefits and challenges
Financial models are used by many leading companies to develop forecasts and plans, for investment appraisal and for evaluating acquisitions and mergers. Indeed, few major business decisions are made these days, uninformed by projections from a computer model.
Models can contribute objectivity, speed and insight to sharpen decision making on strategy, investment and resource allocation, by:
- deepening understanding of what drives business performance
- projecting future outcomes of business planning scenarios
- quantifying the performance impact of alternative decisions
- testing the robustness of plans and contingencies to future uncertainties
Business modelling is usually carried out by bright individuals, typically using spreadsheets. However, since business modelling is a relatively new activity, it lacks an established code of best practice or standard methodology. Many models, as a result, are poorly designed, poorly tested and undocumented. They are often developed in a hurry and are understood in detail only by their original authors. Many fall into disrepute when errors are found, or because it proves difficult to update them to reflect ongoing business changes. Hence, models are discarded and rewritten, often repeating the same weaknesses in design. All this activity can represent a significant cost, not to mention the business risks from model error. The total cost is seldom apparent to management because it is so widely dispersed across the organisation.
Our approach
We bring our business management experience and technical modelling skills to bear on business planning and the development and use of business planning models. Our aim is to power-assist our clients’ strategic, planning and investment decisions.
Planning Models helps its clients to avoid the common modelling faults, by adopting a more structured approach to the design, testing and use of models.
In a typical modelling project, we carry out the following steps:
- clarify the business objectives and output measures of performance
- workshops and historical analysis, to clarify business drivers and dynamics
- identify specific indicators and input drivers of business performance
- develop an agenda of key business issues, decision points and related questions
- design, build, test and document the model
- prove the model's realism, through calibration and sensitivity testing
- design and run planning scenarios and specific sensitivity tests
- analyse model results in support of planning decisions and risk analysis
We aim to carry out the modelling as interactively as possible, so that our client understands fully how the model works and can learn to engage in using the model directly.
The Modelling Resource Centre (under construction)
Through The Modelling Resource Centre, Planning Models Limited also has an ambition to contribute to the development and wider use of business models and best practices for their development. It is our conviction that wider effective use of business modelling technology and techniques can contribute to more rational decision making and thus to more efficient and effective use of resources for general economic growth.