Performance Management and PMO Support for Life Science Company
Discover how we helped a life science company stay on track and within budget with performance management and PMO support.
GOOD STORIES
To improve spending forecast, we partnered with a leading pharmaceutical client to build a capital expenditure model. This solution would significantly enhance the client’s capabilities in business and financial planning.
THE OPPORTUNITY
The client faced challenges in allocating capital and predicting spending. After missing targets for years, they wanted an annual projection model to forecast expenses and R&D spending. This would help them allocate budgets properly.
They had tried various methods, with much trial and error. These methods resulted in consistently high forecasts, creating a large gap between forecasted and actual spending.
Our team built a capital expenditure projection model. This model produced accurate forecasts, closing the gap between forecasted and actual numbers. It ensured the client would meet targets.
OUR APPROACH
The team analyzed the client’s historical data to identify patterns and systems. They used this data to create several forecasting models, testing each for accuracy.
The best approach involved analyzing historical data, including past trends, projections, and actual spending.
Data normalization ensured accurate comparisons across all years. The model used normalized data to identify low, average, and high trends. These trends formed the basis for forecasting future spending patterns.
THE IMPACT
Using the capital expenditure framework, the client has achieved highly accurate forecasts, with results within 1% of projected figures, made possible by data normalization.
This success streamlined the forecasting process, reducing manual effort. By bridging the gap between forecasted and actual spending, we supported the client in improving planning and budget allocation.
“Creating this capital projection framework has been crucial for the client and it was important for us to understand the ‘why’ behind it before we decided to take on this challenge. After a lot of trials and errors, we were able to produce a system that our client can trust and rely on.” – Tyler Ronken, Project Lead
Take the lead
We helped a leading pharmaceutical client bridge the gap between forecasted and actual spending with an accurate capital expenditure model.
If you’re looking to improve your budgeting process and ensure precise projections, contact Tanisha Shetty and Tyler Ronken from Emendo USA Services to learn how we can support your financial planning.
Our people are the true driving force behind our success. We have assembled an incredible team of experts who come from diverse backgrounds, but they all share a common thread: a genuine passion for their industry and an unwavering commitment to exceeding our clients’ expectations.
Our people are the true driving force behind our success. We’ve assembled an incredible team of experts who come from diverse backgrounds, but they all share a common thread: a genuine passion for their industry and an unwavering commitment to exceeding our clients’ expectations.
Are you ready to embark on an incredible journey? Do you want to become a part of a vibrant and diverse community where like-minded individuals come together to explore, learn, and grow? We are always on the lookout for motivated and talented people.
HAVE A QUESTION
A capital expenditure (CapEx) model is a financial planning tool used by organizations to forecast future spending on long-term assets such as equipment, facilities, or technology. It helps businesses allocate budgets, predict cash flow needs, and support investment decisions.
Accurate CapEx forecasting ensures that organizations allocate resources efficiently, avoid budget overruns, and maintain financial stability. It supports strategic planning, prevents funding gaps, and helps align investments with business growth objectives.
Data normalization standardizes historical financial data across different time periods, departments, or cost centers. This ensures fair comparisons and improves the accuracy of trend analysis, allowing for more reliable CapEx projections.
Yes, CapEx models can be tailored to the unique requirements of industries such as manufacturing, healthcare, construction, or technology. Customization ensures the model captures industry-specific cost structures, regulatory considerations, and investment priorities.