WEBVTT

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So what makes organizations insightful? This year's research allowed us to rank organizations

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according to whether their process was respected, inclusive, strategic and insightful.

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So let me explain what I mean by that. In a respected process all levels of management trust the outcome of the BP&F process,

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when it's inclusive it engages with a large number of operations and non finance personnel to improve the richness of the

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plans, budgets and forecasts and when it's strategic then, we're saying, it's if the result is aligned closely 

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with the organization's strategy. What we found this year was that there were around 70% of organizations

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saying that their process is respected, inclusive and strategic, only 40% said that process was insightful,

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and insightful means that it leads to unexpected insights or pathways to better performance. So we do

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masses of work on the BP&F process, we find that the process is respected for most people, inclusive and strategic

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but it's not delivering the result we want, it's not insightful enough, it's not helping

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the organization find new and better pathways to performance.

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In this slide we measure the impact that insightful organizations have

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on the performance their PB&F process remembering that we're measuring performance in relation to those 3 dimensions:

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the speed of a re-forecasting, the accuracy of forecasting and the time horizon,

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the distance over which we can see out to the future and we see that insightful organizations .....

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inclusive, respected and strategic organizations right across the board, so insightful organizations perform

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better, that begs the question what are the characteristics of an insightful organization.

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Well, the unique footprint of insightful organizations looks like this, they are definitely 

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organizations that make more use of rolling forecast, they're much more likely to use specialist planning, budgeting, forecasting

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software than spreadsheets, they definitely use non financial data 

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more than less insightful organizations and they use cutting-edge technology to

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do the analytics and I'll come back to what we mean by cutting-edge technology pretty soon.

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One of the surprising things about where insightful data comes from

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is this, when we asked people to rank different sources of insightful data, 

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n.1 was the general ledger but not that far behind, was the customer relation management system.

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So that's quite interesting, quite a new finding, that CFOs are now looking at CRM systems

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as a resource for insightful data about the future of the organization.