Dear colleagues,

“The most reliable way to predict the future is to create it.” - Abraham Lincoln, the 16th president of the United States.

Forecast is about the future, and predicting the future in a world of uncertainty is complex. However, several methods, techniques, and solutions can help us prepare for any unexpected scenario.

In this digest issue, we share with you the selection of articles and case studies from senior finance practitioners on different perspectives and approaches to forecasting for you.

I hope the insights shared will inspire you to take a fresh look at forecasting in your organisation and help you predict and create your future.

I also would like to invite you to participate in the 8th annual 2024 FP&A Trends Survey. Answering the questions takes just 10-12 minutes, and in return, you will be among the first to receive our comprehensive survey report in July 2024.

Kind regards,

Larysa Melnychuk, CEO and Founder
FP&A Trends Group & International FP&A Board

By Steve Morlidge

Why do we forecast? How do we do this?

Forecasting often becomes a politicised process where the blame for 'failures' spreads around, leading forecasters to defensively avoid 'being wrong' rather than focusing on maximising their business contribution.

Asking, "How does my work add value to the business?" could shift forecasters away from blame games and geek-centric confines, elevating them as crucial business partners.

Unlock the secrets of business forecasting's true value in the article by Steve Morlidge, Business Forecasting thought leader, author of "Future Ready: How to Master Business Forecasting" and "The Little Book of Beyond Budgeting"

By Nick Arzenton

What causes challenges in maintaining consistency in forecasting?

Producing reliable forecasts is a daunting task which involves a large amount of data, technical skills, tools, and a bit of luck. So, it's important to set up a clear plan, stick to a consistent approach, and aim for the most accurate forecasts possible.

In his article, Nick Arzenton, divisional finance director CS&O – IBO at Orange Business Services, outlines the new forecasting method and shares recommendations for practical application. But has this method become a silver bullet?

By Stéphane Bonutto

Forecasting is not just about numbers – it is like orchestrating a business symphony, where different departments collaborate to bring the Profit and Loss statement to life. The forecast is a truth-teller, revealing the honest story of expected revenues and costs. Yet, it's also a messenger, carrying signals about an organisation's future. Navigating this dance requires both the courage of leadership and a keen understanding of organisational culture.

In this article, you can learn more about forecast nuances from Stéphane Bonutto, Principal Director, CFO & Enterprise Value at Accenture DACH.

By Charles Peter

To boost organisational agility, it's important to address a key difficulty: the disconnect between top-down and bottom-up planning processes. FP&A is an instrument for harmonising these approaches, leading to more effective planning.

In this video, Charles Peter, Finance Director for Global Sales, Marketing, and Operations at Microsoft, provides a case study from his company. Charles shares insights into optimising planning and forecasting, highlighting Microsoft's path towards simplification.

FP&A Trends Group is launching the 8th Survey to analyse up-to-date issues affecting the performance of FP&A departments and deep dives into the evolving role of Financial Planning & Analysis.

Your contribution will help us understand the most crucial challenges within modern FP&A and define what needs to be overcome. In return, we will share the final report with you in July 2024. Therefore, I cordially invite you to spend 10-12 minutes completing the FP&A Trends Survey 2024. Sharing this questionnaire with your network is highly appreciated.

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