The Progressive CFO series has provided a good account on the trends of budgeting process for large organizations.
With the development in mobile computing over the past couple years, the planning and budgeting process has evolved in a few key areas:
- Time dimension – the turnaround time is shorter
- Nature of budgeting and planning – focus more on forward views rather than historic transactions, building multiple scenarios
- Strategic value has increased – as a result of ability to generate different scenarios quicker.
- Constant monitoring of drivers – no longer seeing budgeting & planning as a quarterly/half-yearly/annual exercise.
In summary, velocity has transformed the nature of budgeting and planning.