These notes were made during the meeting of the FP&A Board on 16th May 2019 in London. They are a mixture of comments made by attendees and thoughts of those who presented case studies.
A financial plan is a product used for guiding people’s actions toward the accumulation of wealth. As a product a financial plan is created from a variety of sources. One source used for creating a financial plan is accounting.
The 7th Amsterdam FP&A Board was held to discuss and answer questions such as: What is Zero-based budgeting? Who is using it in their day to day practice, and to what extent? What are the benefits and challenges in implementing ZBB?
There once was a Finance manager who met a fisherman. “Could you please tell me about your life and your work?”, asks the Finance manager. “Well, I am at sea for five months and then I am home for five months”, the fisherman responds. There is a long pause. Our Finance manager is thinking hard. Something is wrong; five plus five is only ten! ”So what are you doing in the two last months?”.
A financial plan is a product used for guiding people’s actions toward the accumulation of wealth. As a product a financial plan is created from a variety of sources. One source used for creating a financial plan is economics.
Although Beyond Budgeting is about so much more than just budgets, our name tends to draw people, at least initially, towards the budget word. Once there, cost management often pops up as the number one issue, for obvious reasons. How can we manage cost without a budget?