With a fast-changing business environment, financial managers are expected to be able to predict financial impacts of each big decision in days, or even hours. The delay of critical information can cause a ripple effect that drives poor decisions across the business, leading to poor results.  Unfortunately, the reality is most planning is built on a platform designed in the early 20th Century underpinned by spreadsheet usage.  

A detailed bottom-up plan is produced, taking up to 6 months to produce, only to be revised by management to shoe-horn in targets! Moving from a process that is solely about data collection and consolidation to spending more time on ‘what-if’ analysis and scenario planning, with regular Forecasts is imperative to survive in today’s world.

Thankfully, the paradigm is shifting. Businesses now understand that an effective plan needs to ensure the planning process is relevant, accurate and most importantly encourages managers to deliver the right results.  

To make your planning cycle relevant it is essential to incorporate four aspects into your planning model: