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The Financial Controller and CFO's Toolkit, 3rd Edition by David Parmenter

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Chapter 9A Lean Annual Planning Process—Ten Working Days or Less!

This sounds impossible, yet annual planning can be completed in two weeks. It takes good organization, plenty of abandonment, and awareness that the annual planning process is not adding much value to the organization as the numbers are wrong as soon as the ink has dried. Annual planning is undermining an efficient allocation of resources, encouraging dysfunctional budget holder behavior, negating the value of monthly variance reporting, and consuming huge swathes of time from all those involved.

When was the last time you were thanked for the annual planning process? You have a situation where, at best, budget holders have been antagonized; at worst, budget holders now flatly refuse to cooperate.

The future for planning in any lean organization is quarterly rolling planning, which is covered in Chapter 16 in this book and is developed from the Beyond Budgeting movement, which I fully endorse. However, it will take upwards of nine months to implement quarterly rolling ...

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