The role of Finance Managers has now changed. No longer does Finance operate completely in isolation from the rest of the company. In the past, other departments would never see Finance, until it was Budget Season. But this has now changed, and Finance now needs to be at the centre of every big decision, showing clearly illustrated predictions about financial impacts, and taking decision-makers through multiple “”what-if”” scenarios, as they make important business decisions.

However, most finance departments still continue to use platforms designed in the early 20th Century underpinned by spreadsheet usage, making their organisation cumbersome and slow to change. These companies typically rely on a detailed bottom-up plan that can take up to 6-months to produce, only to be obsolete or under review immediately after it is completed.

Today’s modern business needs to be fluid and agile to sustain long-term growth in this unpredictable world. Organisations must move from using a process solely about data collection and consolidation, to one that spends more time on “”what-if”” analysis and scenario planning. Only regular and automated forecasting utilising up to the minute data will help decision-makers find the agility and flexibility needed to meet current market demands.

Thankfully, smart businesses are now understanding that an effective plan needs to access the most recent data to be relevant, accurate and most importantly, deliver the right results.

PMsquare believe that, to be relevant, organisations must incorporate these four essential aspects into their planning model to be successful: