Over the years I’ve learnt a few things about implementing performance measurement systems in practice. These suggestions apply equally whether we are talking about key performance indicators, scorecards or dashboards.
John Stretch
A Chartered Accountant with a Masters’ degree in financial modelling, John has over 30 years’ experience in consulting to businesses and banks in rolling forecasts, analytics, business plans, budgeting, performance management and reporting.
John has been a regular visiting lecturer at the Graduate Schools of Business of the University of the Witwatersrand and the University of Cape Town, and ran workshops for many years on the Continuing Professional Education programs of the Institutes of Chartered Accountants in South Africa, Namibia, Malawi and Zimbabwe.
He is a prolific author whose material has been published by Microsoft, CFO magazine, professional institutes, and business school journals. His book “Managing with rolling forecasts” has sold in the United States, Australia, Europe, the Middle East and China.
Author's Articles
Today’s FP&A practitioners are highly trained professionals with a greater ability to see the big picture, analyse and interpret data, and build predictive models. They are also experts in harnessing the power of information technology. They are able to create detailed cost and revenue databases that unlock patterns and trends in business behaviour and to build sophisticated and responsive forecasting models. We do rolling forecasts because we know they are better and because we can.
A British retailer recently announced plans to close over a hundred stores. Could part of the problem be an FP&A group whose ideas are outdated? The responsibility of FP&A extends far beyond forecasting and reporting financial numbers, to providing advice and insights into managing, nurturing, protecting and growing intangible assets such as customer and brand loyalty, as though they were tangible assets.
In an uncertain and fast-changing world, line managers need to be made aware of the uncertainties and risk inherent in the financial forecasts provided to them. Uncertainty is difficult to manage but uncertainties can be converted into known risk as forecasting capabilities and data management improve.