We live in an era with an interconnected global economy, where constant change and uncertainty are taken as a given but planning for such an environment is not easy. Flexible and dynamic financial planning and analysis (FP&A) can help firms to cope. The financial crisis affected many companies and some of them became all too familiar with the spectre of unexpected ‘black swan’ events or ‘perfect storm’ market conditions that adversely impacted their business. Those that survived understand the value of FP&A.
Some organisations have not had enough time to re-align their cultures, systems and processes to suit the ‘new normal’ conditions, but they should as most chief financial officers (CFOs) and other finance professionals know that the ability to forecast results is the number one concern of modern business.