FP&A Trends

Driver-Based Planning: Why is it So Important For Modern FP&A?

By Larysa Melnychuk, Managing Director at FP&A Trends group

The Driver-Based Planning concept is a hot subject in the FP&A world. Many organisations consider it for their planning purposes, however just a few have already implemented the fully driver-based planning model.

Why? Because it requires a complete re-thinking of how organisations plan and forecast. It works in analytical culture, where judgemental planning and forecasting practices are not accepted.

Is our corporate world ready for this mind shift?

The fourth Stockholm FP&A Board was debating on why driver-based planning matters for modern FP&A.

Dynamic FP&A: How to Design Data Driven Planning Architecture

by Michael Coveney, author of "Budgeting, Planning, and Forecasting in Uncertain Times"

How to Design Data Driven Planning Architecture?

A new generation of planning systems are beginning to emerge that are data driven. These systems are very different from traditional planning systems and have an architecture that enables them to support the modern agile planning process.  From a user perspective, they operate as a single management system where planning can be driven by events and exceptions in the business environment. For example, a change in the competitor landscape may lead the system to collect more data for the affected areas, which leads to new initiatives being proposed, selected and budgets changed accordingly. This can happen at any time and on a continuous basis.

FP&A Data Visualisation: Showcase Your Critical Thinking Skills!

solutionBy Randall Bolten, longtime Silicon Valley CFO, author of "Painting with Numbers: Presenting Financials and Other Numbers So People Will Understand You” and adjunct professor at U.C. Berkeley Extension

You will be considered a great FP&A professional only if you can communicate clearly, effectively, and eloquently. 

Obviously, the most important goal of almost all numbers presentations is to inform your audience.  But every good FP&A professional should have another, more selfish goal: to showcase your critical thinking skills. If you keep both goals in mind, achieving each will make the other more likely.

RANDALL BOLTEN grew up in Washington, D.C., the son of a CIA intelligence officer and a history professor. He is passionate about the importance of presenting financials and other numerical information in a cogent and effective way, and in his current life is the author of Painting with Numbers: Presenting Financials and Other Numbers So People Will Understand You (John Wiley & Sons, 2012).

He is a seasoned financial executive, with many years directing the financial and other operations of high-technology companies. His experience includes nearly twenty years as a chief financial officer of software companies.

He has held the CFO position at public companies BroadVision and Phoenix Technologies, and at private companies including Arcot Systems, BioCAD, and Teknekron. Before his CFO positions, he held senior financial management positions at Oracle and Tandem Computers.

He received his AB from Princeton University, headed west to earn an MBA at Stanford University, and ended up staying in Silicon Valley. 

In addition to writing Painting with Numbers, he currently operates Lucidity, a consulting and executive coaching practice focused on organizing and presenting complex financial information. He divides his work time between Glenbrook, NV and Washington, DC, and maintains an office in Menlo Park, CA.

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?

The Role of Chance in FP&A

By Karl Kern, Founder/President, Kern Analytics LLC

How should the role of chance influence the work of FP&A practitioners?  

Intentions may lead to results that were not intended.  There are times in which good intentions may lead to bad results or an idea that is designed to accomplish one task may succeed by performing a completely different task.  As a result, FP&A practitioners should recognize the role of chance in FP&A.

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