The FP&A Trends Webinar: Mastering Analytical Transformation with FP&A Trends Maturity Model
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The FP&A Trends Webinar: Mastering Analytical Transformation with FP&A Trends Maturity Model
Click here to view details and register
By Michael Coveney, Analytics Thought Leader and Author
There are only 3 things management can ever control:
However, organisations operate in an uncontrollable and often unpredictable business environment, such as market demand, energy, inflation and exchange rates. As a consequence, the role of planning is to help manage what can be controlled to produce outcomes that will achieve organisational objectives, within an uncontrollable and unknowable external environment.
With this in mind, an analytic model can be used in a number of ways as outlined here:
It's worth emphasising that analytic models can never accurately predict results as it’s impossible to code or even know all the relationships involved. Their true value is in allowing managers to assess the impact of uncontrollable events and the cost of implementing changes to offset them when they arise.
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