With mid-year fast approaching, many firms will be assessing revenue and cost performance against budgets drafted last year. Beyond using midyear reviews to simply monitor for overspending, CFOs can maximize the business impact of these reviews by operating three levers: communicating performance, making appropriate course corrections in the mid-year plan update, and maintaining productive pressure on the senior leadership team.
Recent research reveals other persistent obstacles to successful long-term budget planning, including a lack of high-quality data to inform budgetary decisions, poor integration of capital projects and initiatives into planning processes, and ineffective communication of the plan.
How does your company use mid-year budget reviews to position the firm for success in the current year and beyond? What challenges to long-term planning is your organization most focused on overcoming?