The New Normal means that planning is no longer an extrapolation of the past. Similarly, business drivers that worked last year may no longer be relevant for the future. The reality is that organizations face multiple possible futures. Each one can be triggered by a crisis or an unforeseen event that will require the company to adjust or even change course.

So how should FP&A adapt to this New Normal?

As Einstein said, “In the middle of every difficulty lies opportunity.”  This survey we believe offers hope, insight, and a much-needed reality check on where FP&A is today.  It also forecasts what needs to happen for FP&A teams to develop their best practices from theory into reality. 

It is unrealistic to link every activity. In some cases, you may only be able to present the work that has been done with no obvious mathematical link to the outcome or the performance measure it supports. However, there is still value in presenting a goal and the supporting work being done along with its cost, so at least management can make an informed judgment as to whether they are linked.

There are three key building blocks for modern Financial Planning and Analysis: Digital, Data and Analytics. What are these building blocks, and why do they matter from the  FP&A perspectives?

The volume of data is so large and complex that forecasts are often unpredictable: the world is changing faster than managers can anticipate. Managers can no longer rely on traditional monthly reporting of internally generated data to navigate the future. This is where iFP&A comes in.

In this 7-minute presentation, Stefan Spiegel, CFO at Swiss Railway Freight Logistics (SBB Cargo AG), explains his company's journey towards merging finance and operations.