Experts highlight alignment issues in budget season over numbers accuracy

During a recent Financial Executives International (FEI) podcast, experts Ryan Langenbrunner, Bill Primerano, and Michael Bernaiche discussed the challenges of budget season, arguing that many organizations face an alignment problem rather than a numbers problem. They noted that even with accurate budgets, if they are disconnected from strategic goals, the issue lies in misalignment rather than data accuracy.

Langenbrunner, who began his career as a financial analyst, shared his experience with spreadsheet-driven budget cycles. He described a process where data was collected in the morning, analyzed within an hour, and compiled into a 120-slide control book. Reviews focused on the correctness of numbers rather than strategic insights, leaving him with more tasks than he started with. IBM's implementation of Planning Analytics transformed this process, allowing leaders to see results through dashboards as soon as data was available, reducing the time spent questioning numbers.

Primerano emphasized the importance of timeliness in forecasting, noting that accuracy alone is insufficient. He recounted an instance where a team delivered a highly accurate but outdated forecast, missing critical market changes. He advocated for augmented intelligence, where AI processes data to assist human decision-making rather than replacing it. Primerano also cautioned against fully autonomous planning, likening it to a driverless car that navigates without human judgment.

Bernaiche highlighted the necessity of alignment before speed, stating that faster tools only accelerate broken processes. He noted that organizations still copying last year's files and applying growth factors are falling behind. The panel also discussed the costs of falling behind on technology upgrades, with Bernaiche pointing out that waiting 18 months to upgrade can leave companies significantly behind in a rapidly evolving landscape. They advised against chasing shiny demos and emphasized the importance of multidimensional technology to avoid silos and ensure organizational alignment.