The COVID-19 pandemic forced companies of all sizes to scrap their business plans for 2020 and attempt to come up with new ones even though so much is unknown and changing so fast. This article covers top challenges currently facing companies during pandemic.
Anyone working in the FP&A space knows intermittent disruptions such the COVID-19 epidemic are the just tip of the iceberg because, at some level or another, every business day is a ‘VUCA’ day and if you invest in building FP&A processes that prove their worth every working day then you’ll be better able to weather a crisis.
FP&A is going to thrive and evolve if it continues to enhance the decision-making process in an uncertain business environment. This is why we need to see a huge shift in the FP&A skill set.
In this article, we will explore the concepts of Zero-Based Budgeting and Zero-Based FP&A. The word “Budget” is not associated with flexibility and dynamics. Zero-Based Budgeting has started to be evolved to “Zero-Based Everything”:
If FP&A professionals previously thought we had a tough job, the new reality of a very different world after COVID-19 will make our previous issues seem like a walk in the park. Where should we focus our efforts and how can we provide the businesses with the best ways to move forward?
The COVID crisis is significantly challenging companies’ resilience i.e. their ability to face the crisis. It largely depends on their level of preparation. FP&A should keep a permanent assessment of this resilience and potentially promote plans to improve it. How can we do this?