Driver-Based Planning is an approach in which the key business variables which drive a company’s success are identified and used to forecast where the company is heading, with the results being used to produce plans and budgets. Essentially, it involves the linking of analytics data to the financial planning and budgeting process. The business drivers used in the driver-based planning approach are usually factors that may have an impact on the bottom line of the business, such as Key Performance Indicators (KPIs) or Key Behavior Indicators (KBIs).
