This paper, based on our interviews with 25 top FP&A practitioners and thought leaders along with case studies from the largest global network of FP&A people, captures the best practices and new ideas coming out of this fast-growing area.
In this paper, we will explore these different areas to explain what they are, how they have benefited other organisations and the steps an organisation can take in making the transition.
I hope to show the analytical power that is now available to the FP&A practitioner and how it can drive business change in a structured manner; a method that involves considerably less effort than I had to apply all those years ago.
In an ever-changing environment, dynamic and data-driven Scenario Planning is of critical importance. That means moving from traditional methods to an agile FP&A process, which can help organisations to navigate successfully through uncertainty.
FP&A must drive profitable business decisions. As companies increase investments in advanced analytics, CFOs and their FP&A leaders are well-positioned to provide precise forecasts and actionable insights to support quick and accurate decision making.
The main criticism of the traditional budget is that it does not react to what is actually happening in the business during the year. But a Rolling Forecast solves that problem, helping companies to continuously plan (forecast) over a set time horizon.