# Driver Based Planning

Driver Based Planning is an add-on approach to planning and budgeting apart from the conventional allocation features explained in the previous sections.

With this feature, planners explicitly identify the key business and value drivers, understand how they affect the KPIs, and then perform planning/budgeting by configuring these drivers. 

## Advantages of Driver-based Planning

1. Planners can create a transparent and defined planning/budgeting methodology that clearly explains how certain key operational drivers impact the KPIs. This simplifies your forecast model and facilitates clear communication to all the stakeholders.
2. Forecast demand, risk and opportunities over the long term. Efficient and precise forecasting is achieved by concentrating on the drivers that matter the most and getting rid of superfluous information.
3. Execute fast and flexible planning by changing key metrics in drivers and understanding the effect. You can also create multiple drivers for different periods.

Let us see the steps to configure the drivers and understand how this works in the upcoming sections.


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