Why Finance Teams Should No Longer Be the Sole Owners of Financial Planning
Finance teams have been viewed as the sole owners of financial planning and outcomes within organizations for decades. However, as the business landscape continues to change at a rapid pace, it has become clear that this approach is no longer viable. To meet targets and achieve long-term success, stakeholders from across the organization must participate in financial planning in a meaningful and active manner.
The traditional method of financial planning entails the finance team developing a budget or forecast and then presenting it to the rest of the company for implementation. However, this approach often leads to a lack of ownership and engagement from other departments, who feel that financial planning is solely the responsibility of the finance team.
To truly achieve success, financial planning must become a collaborative effort, with all stakeholders working together to create a plan that is aligned with the organization's goals and objectives. This requires a fundamental shift in mindset, where financial planning is no longer viewed as a standalone function, but as an integral part of the overall business strategy. With that comes a more collaborative approach. This requires involving stakeholders from across the business in the planning process and encouraging them to take an active role in setting financial targets and outcomes.
The first step in this process is to ensure that all stakeholders understand the importance of financial planning and how it impacts the business as a whole. This requires education and training to ensure that everyone is on the same page when it comes to financial planning.
Next, it is essential to involve stakeholders from across the organization in the planning process. This includes not just the finance team, but also other departments such as sales, marketing, operations, and human resources. By including a diverse group of stakeholders, the financial plan can be created with a broad perspective that takes into account the needs of the entire organization.
The best way to keep everyone on the same page and have access to the most up-to-date and accurate data is by using a collaborative planning platform. This allows stakeholders from across the business to collaborate on financial planning in real-time. It provides a central hub where stakeholders can access financial data, input assumptions, and collaborate on financial models. The platform can be customized to suit the unique needs of each organization, providing a flexible and scalable solution.
Utilizing a collaborative platform creates a shared understanding of financial targets and outcomes across the organization. By involving stakeholders from different departments, a more holistic view of financial planning can be achieved. This ensures that financial targets are aligned with the overall business strategy, increasing the chances of success. It also helps to create a culture of accountability across the organization.
Finally, even with collaborative planning platform tools, it’s crucial to establish clear accountability and ownership for financial outcomes. This means identifying specific goals and targets, and assigning responsibility to individual departments or stakeholders to achieve them. Regular monitoring and reporting on progress towards these goals can help ensure that everyone is on track and working towards the same objectives.
To achieve success in today's business environment, stakeholders from across the organization must play a meaningful and active role in financial planning. This can be achieved by using a collaborative planning platform, like Finicast, which provides the technology infrastructure needed to facilitate collaboration and accountability across the organization. By adopting a collaborative approach to financial planning, organizations can create financial plans that are aligned with their goals and objectives, and that drive long-term success.
Contact us today to learn more about how Finicast can help you start collaborative planning.