Whenever an unexpected event occurs – either beyond our control or simply not anticipated in scale – it’s back in the saddle and time to update the financial forecasts. Quickly.
The challenge, though, is that the process, tools and people often aren’t equipped for this level of responsiveness. The consequences are exhausted employees, long response times and a real risk of flawed plans.
These kinds of events will keep happening, so we need to look ahead and improve and digitise the planning process. And in that order: process and principles before systems.
Don’t fall for the temptation of simply buying a new system and throwing current Excel sheets and the most junior team member at the software vendors. And by the way, those Excel sheets often look different across the group. So… which one should we actually trust?
Nothing against system vendors – in fact, a best-of-breed system is needed. However, it must be designed to be user-friendly and seamlessly integrated with key systems such as ERP, consolidation platforms and Sales & Operations Planning.
We need to digitise the planning process
Dear CFOs – the planning process must be among the top 3 priorities on your digitalisation agenda. Global CFO surveys confirm it: Digitalising financial planning is a top priority.
When done right, a digitised financial planning process is a solid investment with a compelling business case which provides:
- A more responsive finance function
- Better decision support for the organisation
- Shorter lead times and reduced resource load
- A foundation for AI and future process innovation
- Increased employee satisfaction and retention
- Less risk in the planning process
- Stronger alignment between finance and operations (same drivers, same numbers)
So, how do you get started?
The key is to eat the elephant in chunks. Start by building a vision and a solid plan to move forward in a structured and governed way.
Yes, it will take time to get really good – years even – but that’s okay. For example: start with commercial planning in 3-5 countries, then roll out to the rest, while in parallel designing OPEX, CAPEX, balance sheet and cash flow models.
After all, it might just be the most cross-functional process in the company, and one where finance is truly measured and adds value. But your colleagues would expect you to also innovate the finance processes.
Reach out
Are you ready to take the first step toward digitising your planning process? Whether you’re looking to build a vision, create a structured plan or simply need expert advice on where to start, Valcon is here to help.
Richard Thorsen, Partner at Valcon, is an expert in assessing financial planning needs, designing new financial planning models and implementing them successfully. Contact Richard Thorsen at [email protected] or +45 2147 0312 for expert guidance.
Together, we can ensure your planning process is future-ready and equipped to handle the unexpected.
