BY KEN LEVEY
Ken Levey, Vice President of Financial Institutions, Kaufman Hall
To identify current performance management trends and priorities—and their implications in financial institutions—Kaufman Hall conducts an annual survey of CFOs and other senior finance professionals. Executives from more than 100 credit unions, banks, and other financial services institutions participated in the most recent survey, whose findings, implications, and recommendations appear in our2018 CFO Outlook survey report, Performance Management Trends and Priorities in Financial Institutions. This article explores select findings related to budgeting, planning, and profitability.
As you read this,think about priorities and progress in your organization and how they compare with those of institutions represented in these findings.
The Road to Better Budgeting and Planning
The CFO Outlook survey report revealed valuable insights around the length of budgeting cycles, rolling forecasting, and ways to enhance budgeting to support strategic initiatives.
Shorter Budget Cycles Allow Time for Value-Added Analysis
In our 2018 survey, 39 percent of respondents said their annual budgeting process takes more than three months to complete (with some reporting up to six months), and a comparable 40 percent said their budget cycles do not allow adequate time for value-added analysis that can inform strategic decisions.