Dear colleagues,

As we approach the upcoming budgeting season, there's an ever-present question on the minds of finance practitioners: How can we modernise the traditional budgeting process and make it more effective? This edition of our newsletter explores agile alternatives that promise to reshape how we approach financial planning and performance management.

In this issue, I'll take you on a journey from the tried-and-true methods of Traditional Budgeting to the more flexible approach of Rolling Forecast and the transformative concepts of Beyond Budgeting and Zero-Based Budgeting. Discover how these techniques can breathe new life into your financial planning and analysis, providing you with insights and strategies to navigate the complexities of today's business landscape.

Get ready to explore a series of articles that will help you build a foolproof operating budget, explore alternatives to traditional budgeting, learn from the 25-year journey of Beyond Budgeting, understand the factors driving successful Rolling Forecast, and embrace the modern principles of Zero-Based Budgeting.

Stay tuned!

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

Budget season is just around the corner — are you prepared? If you’re looking to step into budget season with confidence, check out this comprehensive guide to Building a Foolproof Operating Budget. Jam-packed with expert tips to help you fine-tune your budgeting process, this free guide has everything you need to guarantee your budget’s effectiveness as your business grows.

Find out how to set your business up for success by working smarter, not harder. Click here to download the comprehensive guide.

By Steve Morlidge

Why, when everyone hates it, do we still have traditional budgeting? Business Forecasting thought leader Steve Morlidge believes the answer might lie in a lack of awareness about alternatives. He describes some of the prospect options and assesses to what extent they address the weaknesses of traditional budgeting: from Better Budgeting aiming for more efficiency, to Zero-Based Budgeting requiring cost justifications from the ground up, to Rolling Forecast offering flexibility, and Beyond Budgeting, focusing on continuous adaptation.

Read this article to grasp the nuances of these approaches and their potential to reshape budgeting norms.

By Bjarte Bogsnes

Amid the current frenzy around business agility, the Beyond Budgeting model stands as an early trailblazer, predating even the term "business agility" itself. Developed before Agile practices took hold, Beyond Budgeting introduced an agile approach which offers tailored strategies aligned with a company's context, heralding a future where agility and adaptability remain paramount.

Read this article to learn how Beyond Budgeting, an approach with a 25-year legacy, has become a global phenomenon shaping modern organisational practices.

By Larysa Melnychuk

Statistics reveal that one in five organisations that recently attempted Rolling Forecast had to abandon it due to unforeseen complexities and lack of perceived value. However, if approached correctly, Rolling Forecasting can be a powerful tool for FP&A, revolutionising planning processes, offering timely and dynamic insights that empower decision-makers.

Read this article to uncover the seven critical factors for achieving success with Rolling Forecast, derived from extensive discussions and experiences. Discover the drawbacks and challenges associated with this approach, as well as its comparisons to budgeting.

By Michael Huthwaite

In a world where spending efficiency reigns supreme, Zero-Based Budgeting (ZBB) emerges as a powerful tool to scrutinise fixed costs. Beyond mere cost reduction, ZBB introduces agility and data-driven insights to refine spending optimisation.

Discover how ZBB is revolutionising cost management by reading this article. It reveals the principles of modern ZBB, highlighting its power to reshape spending strategies. By emphasising balanced measurement and transparency, modern ZBB enables smart resource allocation, promoting both cost efficiency and long-term growth.

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.

28 September 2023

To meet the challenges of an unpredictable future and enhance planning capabilities, organisations are turning to a game-changing approach of Predictive Planning and Forecasting, boostering it with AI/ML technologies. This practice empowers businesses to make data-driven decisions, enabling them to stay ahead of the competition.

Register for this webinar to hear practical insights and real-world experiences on how AI/ML revolutionise the Predictive Planning and Forecasting processes.

4 October 2023

As AI continues reshaping our world, its impact on FP&A grows clearer. While AI may replace some finance roles by 2030, the art of FP&A storytelling with data remains invaluable. Empowered by AI/ML, the FP&A storyteller transforms decision-making, addressing complex planning challenges. This synergy allocates time for high-value tasks, amplifying FP&A's impact in our dynamic business landscape.

Register for this webinar to learn more about empowered decision-making: human-led, AI-backed intelligence in FP&A.

10 October 2023

In today's rapidly evolving business landscape, the traditional budgeting process is becoming increasingly obsolete. However, what if your organisation is not yet prepared to fully abandon it? Zero-Based Budgeting (ZBB) offers a fresh perspective on routine budgeting procedures and proves to be a valuable exercise for your entire FP&A team. It provides insights into key business drivers, fosters a culture of collaboration and value creation, and supports agile FP&A practices.

Register for this webinar to stay informed about the latest trends and advancements in successful ZBB implementation.

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