Beyond Budgeting Philosophy: Are We Ready for the Change?

FP&A BoardBy Anastasia Chechkova, FP&A Trends correspondent

In this interview,  Larysa Melnychuk, Managing Director at FP&A Trends Group and the Founder of the International FP&A Board, shares her thoughts on Beyond Budgeting Philosophy and reveals insights that were generated by the London FP&A Board during debate on the subject.

Are we ready to change the traditional budgeting culture?

Rolling Forecast – The Maersk Group Case Study

By Neil Ainger, published first at GTNews

Is it realistic to completely abandon the budget? How can Rolling Forecast help with going "Beyond Budgeting"?

At one of the London FP&A Board meetings, a case study from Maersk Group was presented about how the shipping, transport and oil firm has benefitted.from Rolling Forecast and going Beyond Budgeting.

“We’ve abolished the annual budget completely and only use rolling forecasting (RF) now,” said Matthijs Schot, head of performance & analysis at AP Moller Maersk, as he shared his company’s implementation four years ago of an RF process and the lessons they’ve learnt.

 

FP&A Within The Economist

In this episode of the FP&A Trends Series, Toby Burton, CFO  (Global Circulation) at The Economist Group and a member of the London FP&A Board, shares his insights on how FP&A helps to drive the profits of The Economist’s Circulation business. 

This is a great example of how flexible and dynamic FP&A can help organisations to succeed in such quick and competitive business environment.

Toby's personal professional journey and experience as a CFO are the tremendous and very inspirational story: it shows how diversity, great leadership and incredible professional passion can help to excel. On the top of his professional responsibilities at The Economist, Toby is  Chair of Royal Association for Deaf people (RAD) in the UK.

London FP&A Board: Are Fancy Visual Aids Worth the Investment?

By Neil Ainger, GTnews

Some time ago, the FP&A Board in London saw members debate whether fancy business intelligence (BI) software tools are a wise or even necessary investment. The general consenus was that boardroom members often don’t want to see complicated graphs, instead preferring to see the numbers in a flat 2D table.

“I’ve worked for a chief financial officer [CFO] who hated graphs,” said one senior FP&A professional. “As a finance person, he wanted numbers, not graphs. He even got his PA to print off a dynamic clickable dashboard I produced! A lot of a presentation depends upon who you are presenting to. I’ve certainly adapted my technique and tools depending upon who is listening.”

The Key Tech Requirements of an FP&A System

By Neil Ainger, GTnews

At one of the previous meetings, The London FP&A Board addressed the technological requirements needed for effective FP&A. The well-known Chatham House anonymised rules were deployed to encourage a full and frank debate.

The board members agreed that technology (like any tool) is only as good as people’s ability to use it and to apply it for business benefit and the discussions about the key requirements of an FP&A system got underway.

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