FP&A Analytics

Fractal FP&A: How to Apply the 80/20 Pattern

By Karl Kern, Founder/President, Kern Analytics LLC

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.

How do forecasts differ from budgets?

By Steve Morlidge, Business Forecasting thought leader, author of "Future Ready: How to Master Business Forecasting" and  "The Little Book of Beyond Budgeting"

In a previous blog post I mentioned that people who are highly sensitive to the lack of flexibility of traditional budgeting often see rolling forecasts as the answer. If we update our view of the future more frequently and don’t confine it to the financial year it is obvious that this will be more useful than traditional annual budgets based on the financial year.

Rolling Forecast: Will Traditional Budget Soon Become Abandoned?

Amsterdam FP&A Board June 2017By Larysa Melnychuk, Managing Director at FP&A Trends group

On 13th June 2017, 29 senior finance practitioners from such international and local companies as ABN AMRO, CRH, Diageo, Gemalto, Henkel, Ingram Micro, Naspers, PvH Europe, Regus, Sandoz, Staples Solutions, TIP Trailer Services, Vlisco, etc., gathered to interactively discuss Rolling Forecast Best Practices at the FP&A Board in Amsterdam.

'Business Analytic' Model Life Cycle

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

Analytic models are rarely static. Their aim is to model the organisation in such a way as to allow managers to investigate what is actually going on and to assess changes to the way it operates. These changes may include looking at price/cost structures; the way in which departments are organised; partnerships; outsourcing; or introducing new products/services into new territories.

In each investigation, the model being used will evolve as new information is uncovered that impacts into what is being analysed.

FP&A Analytical Transformation Milestones: Setting and Reaching

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

On 8th June 2017, 30 senior finance practitioners from such companies as Aareal Bank, AIG, American Express Global Business Travel, Altran, CSL Behring, Dematic, Equinix, Lohmann, Merck, PepsiCo, Procter and Gamble, Takata, UL, etc., gathered in Frankfurt, Germany, to interactively discuss FP&A Analytical Transformation.