As explained in depth in APQC’s Strategic Planning and Implementation Best Practices for Achieving Organizational Agility: Best Practice Report, organizational agility is the ability to quickly identify and execute initiatives to respond to opportunities and risks that align with overall strategy. As part of the analysis contained in that best practice report, APQC found that organizations that include financial management groups in the strategy planning process tend to perceive more difficulty with organizational agility than those that do not; specifically in the form of organizational resistance.
This article will explain why and how that does not have to be the case. In fact, ideally, the opposite should be true. APQC asserts that it is critical for financial management to be involved in strategic planning because of the positive effect it can have on organizational agility. The two principal ways financial management can boost organizational agility are 1) scenario planning and 2) predictive analytics-informed forecasting.