Dear colleagues,

”The time to repair the roof is when the sun is shining.” – John F. Kennedy.

Traditional planning methods rely on historical data, assumptions about future trends, and arbitrary targets. In contrast, Driver-Based Planning empowers organisations to swiftly assess the impact of internal and external changes on financial performance, aiding decision-makers in evaluating potential gains and risks tied to adjusting business drivers.

Despite these benefits, our survey reveals a concerning trend. The adoption of Driver-Based models for budgeting or forecasting has declined by 10% over the past two years, with only 48% of organisations implementing them in 2023

In this newsletter issue, we delve into the realm of driver-based planning, exploring its opportunities, challenges, and strategies for successful implementation. You will find articles from senior finance practitioners and the FP&A Trends Research Paper 2023 on "Unleashing the Power of Predictive Planning & Forecasting within xP&A".

As we continue to explore the new trends, I 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

Predictive Planning and Forecasting (PPF) is a game-changing approach that addresses the limitations found in traditional planning. Conventional processes that rely on the presumption of a predictable future are outdated and insufficient in today’s fast-paced business world.

Read this research paper to explore the combination of PA with xP&A and how organisations are using this combination to transform their planning and forecasting processes to create a more analytical and harmonised approach.

By Massimo Garau

When everything is changing fast with little clarity, our usual way of planning faces challenges — although it might be tempting to plan more often and in more detail, doing so can just add to the confusion in this already uncertain environment. Driver-Based Planning offers a structured approach to tackle uncertainty and enhance planning effectiveness.

In this article, Massimo Garau, CFO at Veganz Group AG, shares 5 practical steps to implement driver-based planning.

By Tomasz Klimek

How FP&A professionals can build a driver-based model for our business? What different areas need to be considered in order to successfully implement an automated, integrated driver-based model?

Read this article by Tomasz Klimek, Head of Planning and Analysis at Medicover, to learn the methodology of creating a driver-based model on the example of an aviation company.

By Michael Coveney

Dive into the strategic toolkit that not only paints a vivid picture of the future based on current operations but also tackles crucial questions: Are our plans grounded in reality? Can we afford the costs of our strategic roadmap? What if we alter course or reallocate budgets?

Read this article by Michael Coveney, Analytics Thought Leader and Author, Head of Research at FP&A Trends Group, to learn how well set-up Driver-based plans can answer these questions.

By Douglas Yeung

Driver-Based Planning is a powerful method that helps companies plan better by focusing on key business drivers (KPIs). While many resources focus on how to put plans into action, this story zooms in on what happens afterwards—the challenges of identifying crucial business drivers when company functions are already working on initiatives to support the business plan.

In this article, Douglas Yeung, Director of Business Operations at 8x8, explores post-planning stages and the challenges that arise at this point.

FP&A Trends digital events are vendor-agnostic and complimentary. If you are not able to join the live session, you can register to receive the recording later.

10 April 2024

Unlock essential FP&A team skills in our complimentary webinar, drawing on insights from discussions with International FP&A Board members across 32 chapters in 18 countries and extensive research. We've pinpointed the top 5 key roles crucial for excellence.

Register for this webinar for expert insights and examples of how technology is transforming FP&A. Unable to attend live? Register to receive the recording and access our invaluable insights at your convenience.

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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