Budgeting for 2021 Requires CFO Agility and Reinvention

McKinsey recently published these insights, and it really frames up well the importance of financial planning for 2021 in the wake of the pandemic and changes in our workforce. They present 5 steps that CFO’s can immediately take to remake budgeting processes for the upcoming year.

1. Stress-test scenarios and assumptions to counter uncertainty.
2. Reimagine the business from a zero base to determine key business drivers.
3. Hold back some spending centrally—as contingent resources—to build flexibility and optionality into budgets.
4. Assign finance talent to the highest-priority areas or topics to prevent burnout.
5. Rethink decision making to speed up and debias processes.

Read the full article and let our NAVIGATE CFO Services know if you need any help as you close out the year and plan for the future. 

Reference:

Memo to the CFO: A new approach to 2021 budgeting starts now (September 10, 2020) Retrieved from: https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/memo-to-the-cfo-a-new-approach-to-2021-budgeting-starts-now