Category: Budgeting and Forecasting

Reimagining Forecasting in Uncertain Times

One of the key purposes of forecasting is to help organizations continuously anticipate the future, assess its likelihood, consider the implications and use all the available information and practical techniques to make confident decisions that maximize the potential of the business and improve enterprise performance. Of course, this is not an attempt to simply predict […]

The Accuracy in your Forecast Matters More than the Forecast Itself

One of the roles of the FP&A function is predicting future business performance and help business leaders prepare for an unplanned future through forecasting and decision support. Although anticipating the future is challenging given today’s fast-changing environment, looking ahead is increasingly essential. The world is far, far more complex than we think. Unknown unknowns and […]

Human or Machine Intelligence? Augmentation Key to Better Forecasting

Forecasting is an invaluable process for any business. A forecast can play a significant role in driving company success or failure. For example, high forecast accuracy helps a business anticipate changes in the market, identify growth opportunities, reduce risks, analyze  root causes of performance and proactively respond. On the other hand, forecasts that are poorly […]

How Effective is Your Budgeting and Forecasting

The only thing right about a forecast is that it’s wrong. This unavoidable truth is particularly evident in business today. Businesses are grappling with high levels of volatility, uncertainty, complexity and ambiguity. Increasing regulation, competition, geopolitical tensions, ever changing consumer preferences and a shift in economic powers are making it difficult for finance teams to predict […]

Rethinking the Annual Budgeting Process

Human beings are creatures of habit. Once they have mastered certain habits, especially bad ones, it is extremely difficult to let go. Even though we are fully aware that the immediate, medium-term or long-term consequences of our bad behaviours are dire, we still cling unto them. Could this be because of our ignorance or maybe […]

Why Implement Continuous Rolling Forecasts?

The annual budgeting process has been around for decades and still forms part of the performance management framework for the majority of organizations. As the economic environment has evolved and become more dynamic, has the budgeting and forecasting capabilities in your organization also evolved and adapted to this change? Unfortunately, for many organizations, the annual […]

Are You Using Scenario Planning To Improve Decision Making?

As the business and macro-economic environment continue to change at rapid paces and increasingly getting complex, the pressure on the finance organization to support the core business by strategically addressing volatility, uncertainty and risk is also intensifying. This fast changing environment is making it extremely difficult for organizations to forecast business performance with a greater […]

Improving Finance’s Financial Planning & Analysis Capabilities

As the role of the finance function continues to evolve from reporting on what happened in the past to driving business performance and creating enterprise value, the function’s financial planning and analysis capabilities need to be improved. More than ever, increased volatility and uncertainty is placing considerable pressure on finance leaders to support business decision-makers […]

Factoring Risks into Financial Forecasts and Planning

VUCA, short for volatility, uncertainty, complexity and ambiguity is an acronym used to describe the world we live in. Since the onset of globalization, CFOs have had to deal with a variety of uncertainties and risks. From the traditional operational, financial, credit and market risks to strategic risks, the list goes on. Yet despite having […]

Producing Reliable Forecasts That Improve Decision-Making

Although almost every organization uses forecasts to predict and manage future business performance, only a few of the produced forecasts are reliable despite the amount of energy and time invested in producing them. The problem with unreliable forecasts is that they have far-reaching strategic and operational implications. They lead to poor decision-making which in turn […]

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