2020 and 2021 have been challenging years for everyone. Two years after the arrival of Covid -19, business and lives are still very much disrupted. 

So, what did we learn from the pandemic that we can now put in place so as to help with future black swans?

With technology developing at breakneck speed, it is no wonder that FP&A teams around the world are beginning to capitalise on innovative modern tools. In particular, planning processes have been transformed by the implementation of Artificial Intelligence (AI), Machine Learning (ML) and Predictive Analytics.

Unstable times are putting pressure on our planning process: we need to re-forecast more often to make timely and informed decisions, while at the same time we need to expand our forecasting horizons and look ahead. How can we achieve this?

To deal with the resulting uncertainty, FP&A teams have had to demonstrate agility and analytical rigour, as well as flexibility. The organisational disruption, impact on business performance and changing supply chain demands have required FP&A teams to respond with rapidly changing forecasts, budgets and investment plans. 

Zero Based Budget has seen a resurgence over the last few years, especially during the pandemic. As organisations feel the effect of the pandemic, they are turning more and more to using Zero-Based Budgeting (ZBB) to ensure survival.

The top 7 trends shaping FP&A today can be grouped into 3 key building blocks: Process, Technology, and People.

The building blocks are a 3-part recipe to create the perfect cake. Each part will help to curate a strong finance professional and a successful cross-functional FP&A team.