The ten commandments of planning and forecasting
Anders Liu-Lindberg
Leading advisor to senior Finance and FP&A leaders on creating impact through business partnering | Interim | VP Finance | Business Finance
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Planning and forecasting may feel like it differs from business to business, but the underlying principles never change. It’s almost as if there are rules set in stone for successful planning! This got us thinking, and with help from this community over the past few months we put together ten, not just rules but commandments to plan by. We are now taking the next step to write the “Planning & Forecasting Bible.”
Why do we need a “planning and forecasting bible?” Because FP&A professionals are always striving to improve and share best practices, we know the challenges that come with effective decision-making support in fast-moving business environments.
Sometimes it’s easy to take your eyes off the simple rules and get swamped by the complexities of your specific organization. But underneath the routines and the long-established habits, you will always find sound principles and expectations. By re-focusing on the reasons why you act as you do in your role, you become more effective and add more value to the business.?
These are the collected Ten Commandments to take planning and forecasting to the next level.
The Ten Commandments
How can we put these into practice?
Over the coming months, we’ll dig into the reasoning behind the inclusion of each Commandment and its importance in building a world-class FP&A function. We will look at the different ways to refocus on these simple rules and ensure that they are a conscious part of the regular process of planning and forecasting.
We’ll also consider some of the practical steps you can take, including the smart use of new technologies to support the FP&A function and subtle changes to decision-making KPIs that can transform the value delivered to the business.
Meanwhile, do you think that these Ten Commandments encapsulate planning and forecasting? What is the stand-out commandment that makes the difference in your work, and is there anything else you would include? Let us know in the comments.
This was the first article in my new series about the Ten Commandments of planning and forecasting. While you await future articles why not read my previous series "Charting the course for a successful career in FP&A"? You can find all the articles below.
You can read a lot more articles about FP&A, Business Partnering, and Finance Transformation below. It all start's with “Introducing The Finance Transformation Nine Box ”?where you set the ambition for your transformation. You should join the?Finance Business Partner Forum ,?which is part of the Business Partnering Institute's online community.
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The ultimate guide to decision-making for finance professionals ?(the last article in a series about the decision-making process and how Finance should impact it).
The Mindset Change Checklist For Finance Professionals ?(the last article in a series about the mindset change that finance and accounting professionals should make to become business partners)
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Anders Liu-Lindberg ?is the co-founder and a partner at the?Business Partnering Institute ?and the owner of the largest?group dedicated to Finance Business Partnering ?on LinkedIn with more than 10,000 members. I have ten years of experience as a business partner at the global transport and logistics company?Maersk . I am the co-author of the book “Create Value as a Finance Business Partner ” and a?long-time Finance Blogger ?on LinkedIn with 95,000+ followers and 160,000+ subscribers to my blog. I am also an advisory board member at?Born Capital ?where I help identify and grow the next big thing in #CFOTech .?Finally, I'm a member of the board of directors at?PACE - Profitability Analytics Center of Excellence ?where I support the development of new analytics frameworks that can improve profitability in companies around the world.
DIRECTIVO FINANCIERO CON AMPLIA ENFOQUE OPERATIVO Gerente de Finanzas y Tesorería en CERRACO MEX SA DE CV
2 年Excellent recommendations Anders Liu Lindberg, with a great list of points to do, but always as you mentioned, Planning aligned with your Strategic, because in the last one in where your want to maximize your strengths, take advantage of opportunities and reduce risk and threats
Financial Planning,Analysis and Business Controlling
2 年Looking forward to the next steps that will depict implementation of the Ten Commandments
Director - LMS Advisory, Advising SME's on Growth, Strategic Planning, Maximising Profit & Cashflow. Financial enabler. AI/Tech enthusiast | LMS | KeepMyBooks | WihseFP |Cerebiz |
2 年I think Number 2 is very important Anders Liu-Lindberg , because assumptions can become outdated very quickly due to internal or external factors. The underlying forecast would remain correct. If we don't know how we calculated a datapoint, many unnecessary changes could be made. Great list!
Fractional CFO - Commercial & Non profit | Ex Cisconian, Siemens & Vodafone Group | Senior Finance Executive
2 年Very nice. The 10 commandments
Strategic Finance Leader | Expert in Financial Turnaround | FP&A | Driving Fiscal Discipline & Shareholder Value in EPC & Manufacturing | Project Finance | Energy & Infrastructure Enthusiast |
2 年Anders Liu-Lindberg Thanks for sharing. Indeed, we have to follow these 10 commandments, but the most important one is the first one itself, to align with strategy. ??