Variance Analysis
The review of why actual results differ from plan.
Definition
Variance Analysis is The review of why actual results differ from plan. It comes up most often when current results have to be judged against expectation, plan, or an external reference point.
The term keeps showing up because comparison terms keep teams honest because raw numbers mean very little without context. They are most useful when a manager has to explain not just what moved, but why it matters.
Use cases
Use Variance Analysis to compare actual results against plan or outside reference.
Review Variance Analysis when the team needs to explain why a variance matters instead of just listing it.
Track Variance Analysis so operations can keep forecast conversations grounded in evidence rather than instinct.