In recent years, organisations all over the world have been undergoing a rapid digital transformation. New tools and technologies are opening up the possibility of more collaborative business processes, including planning.
The organisation used to spend over 52 weeks on planning, but with an accuracy of only 92% -- low when compared with the resources allocated.
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?
In anticipation of turning the pandemic corner, companies are contemplating the return to the office or some form of the “Next Normal” working model. So how will your FP&A team find optimal ways of working in this new and evolving landscape?
The power of Finance Business Partnering enables Finance to step outside of their traditional Performance Management roles (setting budgets and reviewing actuals) in order to contribute to real value creation initiatives.
Simply put, spending more time working together is mutually beneficial for both Finance and the business.
But what is the best way to structure that relationship? Should Finance operate as an advisor, a consultant or perhaps even an investor?
It’s often been said that we’re in the agile phase of strategic thinking – the stage of strategic thought that focuses on flexibility in planning and rapid, quickly responding iterations - and it really can’t be emphasised enough just how important it is to build a responsive and agile FP&A strategy. It makes all the difference between an efficient and high-performing strategy and one that’s dead in the dust.