Is planning a routine annual exercise or a flexible and dynamic FP&A process that drives value and supports decision-making under uncertainty? How to achieve the latter?

Driver-based planning is a key topic for any FP&A team today. But what is not always clear is just how driver-based planning is connected to requirements from stakeholders.

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.

Best practices from mature technology businesses have stable recurring Rolling Forecasts based on momentum, executive buy-in and a solid understanding of the drivers in both revenues and costs. And those forecasts have defined processes to ensure the right level of risk is mitigated with the right action plans to drive success.  However, start-ups have a different focus: getting their product to market and ensuring there is a fit, or there is no business

For FP&A in today’s business climate, agile planning is basically the speed and flexibility with which organisations can make adjustments to what it wants to achieve.

Budgets were invented in the Industrial Age as an efficient management tool. So why in this day and age of VUCA, most of the organisations around the world are still so hung up on traditional budgeting?