How CFOs can bring agile planning to the whole organisation to cope with Brexit
Agile methodology is not new but the application of agile thinking to budgeting, planning and forecasting is definitely innovative.
Recent research shows that 81% of senior finance professionals believe CFOs will be more influential in decision making but one third of CFOs are still making decisions based on gut feel. Unable to tap into enterprise-wide information they are at a serious competitive disadvantage, particularly given the Brexit decision.
Find out more about the agility needed to cope with Brexit in our white paper from Gary Simon, CEO of FSN Publishing.
10 Burning Questions to get the most from your Planning, Budgeting & Forecasting
10 questions to help your organization get the most from your planning, budgeting, and forecasting processes and systems.
If you want to grow your business quickly and sustainably, you need to underpin your ambitions with solid processes and systems for planning, budgeting and forecasting (PB&F). Focusing on these 10 questions and your answers to them could help you to find the perfect solution.
Automating Planning, Budgeting & Forecasting processes
Planning, Budgeting and Forecasting (PBF) are central to the viability and growth of any organisation, yet these core financial processes remain some of the most neglected areas of management endeavour.
The budgeting process in particular is seen as extremely onerous, slow and time-consuming. Often spreadsheet-bound, one survey suggests that as much as 20% to 30% of senior management time is locked up in the budget process, equating to 25,000 man-days a year in a billion dollar business.
Another survey confirms that 89% of organisations use spreadsheets for the planning, budgeting and forecasting process in some shape or form. And to add ‘insult to injury’, the typical budget is already out of date by the time it has been finalised, leaving management vulnerable to market volatility and unable to exert timely management of performance. Yet despite these drawbacks some companies have been able to make significant strides in process automation. According to one 2015 survey, median budgeting reporting times dropped about 21% between 2010 and 2014 with notable differences between median and top quartile organisations which typically have more advanced technologies. It seems that CFOs that do not invest in suitable technologies could be putting themselves at a serious disadvantage.
Gary Simon, is Leader of the FSN Modern Finance Forum on Linkedin with more than 43,000 members. He is a graduate of London University, a Fellow of the Institute of Chartered Accountants in England and Wales and a Fellow of the British Computer Society with more than 30 years’ experience of implementing management and financial reporting systems.
Can Finance Really Do Without Specialist Software?
Produced by CFO Innovation
One interesting finding of this study, which was commissioned by enterprise software company prevero, is that a significant proportion of CFOs appear to be ready to step away from spreadsheet-based planning and budgeting, a manual process that can often be time- consuming and inaccurate.
Nearly a third of respondents to this survey (31%) say they will invest in planning and budgeting software within 12 months, while 8% intend to do so within the next six months. A further 27% say they have already invested in planning and budgeting software.
Personnel Management on the Rise
Personnel departments face many challenges, from identifying the true cost of employing staff and recruitment costs to standardised personnel performance reporting.
Download our whitepaper to discover how you can manage the large volumes of data produced on a monthly, weekly or even daily basis, as well as how to deploy surveys to your workforce and how to report employee turnover with prevero.
BARC’s THE Planning Survey 16 now available
Selecting the right planning, budgeting and forecasting solution is critical for today’s data-driven businesses.
That’s why BARC’s THE Planning Survey 16 is so important, as it’s the world’s largest survey of planning software users. The BARC report is based on the real-world experiences of some 1,245 global users, all busy road-testing planning products from a dozen different vendors. So prevero is particularly proud that our BI and CPM solutions ranked 1st in 13 separate categories across BARC’s flexible planning solutions, performance management specialists.
Breaking down traditional Finance Office inefficiency cycles
Today’s dynamic global market places an increased requirement on successful planning.
However, that’s inevitably challenging, as few businesses have either the time or the resources needed to build the scenarios, carry out multiple simulations and submit options to stakeholders for approval.
With planning cycles getting shorter and shorter - and some companies adding multiple forecasting rounds in addition to their usual budgeting regime - organisations increasingly require professional integrated planning capacity in place to ensure the right levels of flexibility.
Is your Office of the CFO ready for Brexit innovation?
Brexit is set to bring profound changes to UK businesses of all sizes. Unfortunately – other than limited Government advice that ‘Brexit means Brexit’ - no one yet has any real understanding of what’s actually going to happen. Given this lack of clarity, how businesses prepare and adapt will be critical.
The Office of the CFO needs to decide quickly whether it’s going to be an Innovator or an Inhibitor in the process.
Planning and Forecasting in the “Post-Brexit” Reality
The recent unprecedented and irreversible British vote to leave the EU has moved the global business environment into a new phase of prolonged uncertainty. The result of only a one-day vote has thrown the world into the huge geopolitical shift.
Suddenly, many organisations found themselves in an environment of prolonged uncertainty and high risks. Many questions are left unanswered. What will the legal and tax implications be in the post-Brexit world? How could business models be adjusted to the new reality?
Will pre-Brexit strategy still be relevant tomorrow? Find out more about Planning and Forecasting in the Post-Brexit reality in our white paper from Larysa Melnychuk of FPA-Trends.
Global FP&A Survey Results 2016
For organisations to survive let alone grow, it's imperative that FP&A departments take advantage of the latest developments in business analytics. We asked more than 260 users about the adoption of analytics in their organisation and the impact it was having.
Today, more than ever, FP&A staff are aware of the importance of understanding their organisation's business model and its predictability. They also realise that because of the development of analytic technologies which are available to the whole market, they dare not pause in their quest to increase efficiency and forecast accuracy.
But just how mature is the current use of analytics - and how do you compare?
Controllers as Business Partners
Moving on from their role as 'Masters of Numbers', senior finance roles should strive to develop into Advisors and Business Partners, who pursue complex and linked management tasks together with the management team to promote a result-oriented management approach.
To be able to fulfill their role as operational advisors, controllers will need to reorganize their work schedules, the effort spent on collecting and processing data needs to be reduced, and more time spent on the evaluation, analysis and preparation of data gained from Business Intelligence systems.