“Few processes within the purview of a CFO have so much potential to create—or destroy—business value than FP&A”
A recent study from the Institute of Management Accountants (IMA) found that in general, top performing organizations take a more rigorous and integrated approach to their FP&A practices by relying on businesses insights to drive results, not just predict them. Unfortunately, many companies are not achieving the full potential of their FP&A activities because they tend to put more focus on forecasting and budgeting, rather than the core principles of planning and execution. Forecasting and budgeting are certainly important, especially in communicating to the organization if it is on track to achieve its business outcomes or to raise warning flags. But forecasting results is not the same as building a plan to actually achieve them. Planning and execution are what will determine success.