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The State of Budgeting and Planning Research Report

Jan. 31 2019 by Leslie Cant, Product Marketing Director - CCH Tagetik

Performance Management Budgeting & Planning

The role of the CFO and especially FP&A has changed significantly over the recent years. The organization is looking for the CFO to be more strategic, to partner with business to provide better guidance and be more forward looking. The pressure is on FP&A with their budgeting and planning to be more agile, with rolling forecasts, encompassing more detailed data, more accuracy, and a farther timeframe for long range planning.

Unfortunately, many FP&A departments are stuck in the past with old technology that can’t keep up with the latest trends and challenges. More than 41% are using budgeting and planning technology that’s been in the department for years, that they didn’t choose. Accordingly, the number of cloud deployments is only 26%, but 64% would choose to go cloud with their next software solution.

In summer 2018, we surveyed more than 450 finance executives and professionals to get a better understanding of the challenges they face, the state of their technology and their wishes for the future. Respondents were equally distributed from small, mid-market, large and enterprise markets across all industries including finance (banking and insurance), construction, CPG, energy & telco, services and public sector.

We found that although the needs of budgeting and planning are ever-increasing, 45% are using Legacy technology and a further 27% are still using Excel. Accordingly, the number of respondents dissatisfied with their technology was greater than 50%.

white paper budgeting and planning

Financial Executives and Professionals reported their top pains were:

  • Lack of communication and collaboration across the organization.
  • No clear workflow, process monitoring, lack of accountability
  • Budgets and Plans disjointed from Consolidation and Financial Reporting
  • Monthly and quarterly forecasts, what-if analysis and modeling are time-consuming manual processes
  • Misalignment of financial and operational plans
  • Difficult to make last minute changes
  • Too many spreadsheets and too many versions

Clearly, the technology that’s in use is not meeting the needs of budgeting and planning today, never mind the future! Respondents reported that 30% are dissatisfied and a further 30% neither satisfied or with their technology.

If organizations are using financial management processes of the past, they simply are not equipped to leverage the value of performance insights from their data. If they can’t see the details of their performance, there’s no way they can live up to the rapidly changing business environment or be a strategic partner to the CEO. As the survey results indicate, financial executives recognize the functionality deficit of the processes they are using. Legacy solutions aren’t enough. Spreadsheets are the tools of the stone age. We believe the cost of ineffective performance management is too high to ignore.

The “Wish List”

We asked survey respondents what their ‘wish list’ would be for new technology:

  • Integrated approach with financial and granular operational plans linked
  • Driver-based modeling, versioning and what-if analysis
  • A more agile process with budgets, plans, actuals connected
  • Continuous planning with rolling forecasts
  • Detailed workflow

For what type of planning they would like to do in the future, the top requests were cash flow analysis, strategic planning and in-depth profitability analysis.
Looking to the future, the biggest requests are for handling large data sets, artificial intelligence, machine learning and for better business partnering.

Do You Agree With Your Peers?

And what about you, if you had a “magic wand” what improvements would you make to your budgeting and planning solution? If you were to make the move to a new budgeting and planning solution, would you also choose the cloud?

You can review the results of our budgeting and planning survey to see how your organization compares by downloading our just-published white paper ‘The State of Budgeting and Planning Research Report’.

Also, check out our website to discover more about CCH Tagetik Budgeting & Planning and video testimonials of customers who have made the move to modernize their financial budgeting and planning process with CCH Tagetik.

cch tagetik budgeting and planning solution

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