The financial planning and analysis (FP&A) storyteller has emerged as one of the five critical roles within the FP&A function. In a data-driven world, the volume of data that exists is exponentially increasing. Equally, the time available for managers to process insights from this data is decreasing. Therefore, the requirement that these insights be taken and used to drive leadership decisions has never been greater.

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.