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?

Today’s uncertain times mean that it is no longer good enough for organizations to have one fixed plan and forecast. Historic data by itself cannot help predict the future, nor can classical planning methods and standard variance analysis provide sufficient information to manage a business. It is time to change and adopt a fact-based mindset towards business decisions.

There has never been greater uncertainty and a faster pace of change than over the past months.

And yet, at a time that requires speed and agility, and in a function that needs these qualities more than others, we cleave to our traditional management accounting methods and adhere to our longstanding processes.

Watch the full recording of the FP&A Trends Webinar to look at the examples of Predictive Analytics in FP&A and understand how we can implement the process for the benefit of the whole organisation.

In this uncertain business environment, organisations must strive to become more agile and data-driven. Developed by the International FP&A Board, the FP&A Maturity Model provides a roadmap for just such a transformation.

The modern FP&A takes an exciting path of transformation to meet the demands of modern business operating in a highly uncertain environment. Changes in the FP&A framework are mainly driven by an increasing amount of data, innovations in technology and analytical methods. What will it involve getting to the leading stage of FP&A Maturity?