Inflation and recession are creating chaos for most businesses in the world right now. In this article, we will explore some of the macroeconomic theories driving the current inflationary environment. These theories will allow you to understand, model, and advise your company on its options for addressing chaos and uncertainty.

Everyone in FP&A agrees that agile planning and forecasting are essential in an environment of great uncertainty. FP&A agility is the ability to reforecast on demand. But how can we implement it?

It is very important to have well-established mechanisms for planning and budget control. So, managers can quickly correct the unit's tactical plan based on present market conditions, and faster it rolls up into the corporate's strategic plan. 

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.

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.