What are the best practices in building Driver-Based Financial models? How do we identify internal and external drivers, and use technology for integration and collaboration?

In this video, we learn how A.P. Moller – Maersk Group made the transition from traditional budgeting to Rolling Forecasting.

Unlike traditional management methods, Financial Planning and Analysis solutions are a new way to manage your business rationally. With the FP&A systems in place, business processes become more accurate and agile, preparing your company for the challenges and uncertainties of today's economic climate.

The benefits of measuring seasonality of accuracy are that users can plan high/low scenarios for each prediction based on the season-specific range of possibilities.  Departments can adjust how much capacity, safety stock, or cash reserves are needed based on their own worst case.  And it's easier to determine missing factors for model improvement when you focus on adding predictors to the high noise areas of the model.

Michael gives an insightful presentation on FP&A Scenario Planning: Forecasting in the Uncertainty.

Corporate Performance Management (CPM) has long consisted in breaking the company’s strategy down into operational objectives and indicators, measuring the achievement of these objectives against operational entities' budget or forecast and take action on that basis. This approach was effective in a stable business environment, with slow and controlled changes.