In an ever-changing environment, dynamic and data-driven Scenario Planning is of critical importance. That means moving from traditional methods to an agile FP&A process, which can help organisations to navigate successfully through uncertainty.
FP&A must drive profitable business decisions. As companies increase investments in advanced analytics, CFOs and their FP&A leaders are well-positioned to provide precise forecasts and actionable insights to support quick and accurate decision making.
The main criticism of the traditional budget is that it does not react to what is actually happening in the business during the year. But a Rolling Forecast solves that problem, helping companies to continuously plan (forecast) over a set time horizon.
Being adaptive to changes in the surrounding world and changing yourself is the only way to progress today. Continuous transformation of planning and analysis approaches becomes a lifestyle. Digital Transformation forms a fundamental part of it. At the same time, changes bring risks and the only way to manage them is to be prepared.
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.
Over the years, the challenges faced by management have required different planning approaches and techniques. Some have stayed and become ‘the norm’, for example, driver-based planning.