Rolling Forecasts are an essential tool for financial planning and analysis (FP&A), with the potential to radically transform the traditional corporate budgeting process. If implemented properly, a rolling forecast expands planning horizons, reduces planning cycles, and helps in executing organizational strategies.
By Amrish Shah, Snr Finance & Operations Director, The Netherlands
Yes, exactly. What does it take to become a good or even great FP&A professional? Beyond the more technical elements required, for example, an affinity with numbers (not unimportant!), with information systems and so forth.
What I want to list is in my experience those QUALITIES that I have found in people who I have worked with, worked for and who have worked for me in an FP&A domain that I found to be particularly effective in driving the FP&A agenda forward within their responsibility domain. I deliberately do not want to use either the word skills nor competencies, as these two words are fraught with misunderstanding and tend to create more confusion then clarity.
To create value from data, you do need a big data strategy – right?
Well, actually, probably not. According to Gartner, the ‘all-encompassing data strategy’ fails around 60% of the time. In fact, Gartner have even stopped publishing a Big Data ‘Hype Cycle’ (their measure of maturity and adoption of technologies).
As a word fractal is not frequently used in conversation. As a concept fractal is frequently present in our lives. Its presence is evident in nature.
The concept of a fractal was established in large part by the work of Benoit Mandelbrot, a mathematician whose work covered a wide and diverse number of disciplines. Perhaps the most notable example of how he established the concept of a fractal was his study of England’s coastlines. What his study identified was sections of England’s coastlines resembled the coastlines as a whole. This resemblance has been labeled self-similar. Self-similar, or self-similarity, has affected a number of studies related to science. Self-similarity is not restricted to science. Self-similarity exists in FP&A which I saw first-hand.
I recently had the honor of moderating a global webinar focused on how Finance leaders can leverage FP&A business partnering to impact performance across the enterprise. The featured speakers delivered nothing short of compelling experiences and insights. Larysa Melnychuk, the founder and managing director of FP&A Trends Group, shared her insights and experiences in moderating International FP&A board seminars across the globe. I doubt anyone has had as much face time with FP&A leaders across the globe than Larysa over the past 4 years. Ander Liu-Linberg shared his experiences and insights relative to the ground-breaking finance transformation that has taken place at Maersk over the past ten years. I wanted to share just a few of the great insights and take-aways they offered to our webinar attendees.