Agile financial planning in practice
More clarity, less effort
Faster and better decisions with agile forecasting
In a world full of uncertainty and dynamism—keyword VUCA—finance departments are under increasing pressure to make important decisions quickly, yet still on a sound basis. Traditional planning processes often reach their limits here. An agile approach to financial planning can make all the difference.
Why agile financial planning is crucial now
Volatile markets, new business models, and increasing complexity call for a new mindset in the finance function. Instead of getting lost in the details, it is important to recognize what is essential: Which drivers really influence business development? Which information is relevant for decision-making?
This is precisely where an agile forecasting process comes in:
- Monthly updates and multi-year forecasts (e.g., in the 6+6+12 or 9+3+12 forecast cycles) create a solid foundation for budgeting and strategy.
- Planning is driver-based, not account-driven—this reduces complexity and increases meaningfulness .
- Focus on the essentials: Management discusses developments based on aggregated figures so as not to get lost in the details of top-down or bottom-up planning.
How to make change work: Success factors from real life
The path to agile financial planning does not begin with a tool, but with a clear concept. This is also evident in the example of a planning project in the automotive sector, where the transformation process followed five clearly structured steps:
- Concept development with internal and external experts
- Tool selection for forecasting and planning
- Building a forecast MVP in just three months
- Development of a budget MVP
- Refinement and scaling for broad rollout
What made this process particularly successful was the combination of methodological clarity and a pragmatic implementation culture. The project team was characterized by a strong hands-on mentality —all departments were actively involved rather than just being informed. The role of change agents from the regions was particularly important: they acted as multipliers, provided feedback from the field, and ensured acceptance on site. Another success factor was the deliberate reduction of detail. Instead of getting lost in the multitude of accounts, the team focused on the 25% of items that account for 80% of the impact. This not only created clarity, but also speed. This approach was complemented by a high degree of transparency: central dashboards and workflow overviews made it possible to see at any time where each region stood in the planning process – a real game changer for management.
Added value for the finance department: What's in it for me?
The introduction of agile financial planning not only brings methodological changes—above all, it creates noticeable relief and new opportunities for financial managers. Those who previously spent a lot of time consolidating data and interpreting countless detailed items can now concentrate on what really matters: managing the company on the basis of relevant drivers and transparent data.
Specifically, finance departments benefit on several levels:
- Less planning effort: Pre-initializing the P&L and focusing on the most important drivers significantly reduces manual effort.
- Greater transparency: Central dashboards and a single point of truth provide a clear overview of the planning status of all units at all times .
- More effective change management: Involving the regions at an early stage and working with change agents promotes acceptance and commitment throughout the company.
- Faster decisions: Aggregated, decision-relevant data creates the basis for focused discussions at management level – without getting bogged down in details.
Conclusion: Less is more—but it has to be the right stuff.
Agile financial planning does not mean less control, but rather more focus. By concentrating on the relevant drivers, you create space for strategic discussions and better decisions. Change requires courage, but it is worth it: for greater clarity, speed, and impact in the finance function.
We are happy to assist you in modernizing your financial planning, from designing the solution to implementing the change process. Just get in touch with us. We look forward to hearing from you.
Blog post author
Dennis Stahl is responsible for the CFO Services business unit and has been helping clients to modernize FP&A processes with innovative planning and analysis solutions for more than 7 years. In his projects, he supports companies ranging from upper mid-sized companies to DAX-listed corporations from a wide range of industries. He has extensive international consulting experience in the management, design and implementation of advanced customer solutions.
