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.

Organizational agility often faces a considerable barrier: unaligned top-down and bottom-up planning processes. Why does this gap exist? How can we bridge it, and what role does technology play?

Corporate Performance Management (CPM) has long consisted in breaking the company’s strategy down into operational objectives and indicators, measuring the achievement of these objectives against operational entities' budget or forecast and take action on that basis. This approach was effective in a stable business environment, with slow and controlled changes.

Integrated FP&A involves harmonising the three levels of planning - Strategic, Financial and Operational levels. This is done both horizontally (cross-functional) and vertically (top-down and bottom-up), using integrated processes, people and platforms that connect all parts of the business. The case studies presented some real-world examples of implementing and applying integrated FP&A.

The vast majority of companies still rely on traditional organisational designs characterised by hierarchical structures, and steering with budgets. But these designs are outdated, severely limiting a company's ability to act and respond in today’s fast-changing environments. 

How can organisations operate viably in this age of uncertainty?

One of the biggest barriers for organisations to increase agility comes from unaligned top-down and bottom-up planning processes.