NextGen@Planning: How Corporate Planning Can Become Future-Proof

Geopolitical uncertainties, volatile markets, increasing regulatory requirements, and new technological possibilities are increasingly calling traditional annual budgets into question. The ICV Expert Work Group NextGen@Planning is therefore developing a holistic approach that aligns planning and forecasting more closely with flexibility, integration, and modern technologies.

At the heart of the approach is a framework consisting of three interconnected levels:

1. Foundation—the Basis of Modern Planning

Planning processes should be simple, streamlined, and flexible. Clear objectives, a transparent representation of the business model, and agile processes lay the foundation for rapid adaptation to change. Another prerequisite is a consistent understanding of the terms “planning,” “budget,” “medium-term planning,” and “forecast.” While planning and budgeting are goal-oriented, a forecast provides a neutral, expectation-based description of where the company is likely to be.

2. Integration – Planning as an Integral Part of Corporate Management

Modern planning must not take place in isolation within the finance department. Strategy, risk management, operational control, xP&A, and ESG and sustainability goals must be integrated. In particular, Extended Planning & Analysis (xP&A) directly links areas such as sales, production, and human resources with financial planning. This makes the financial implications of operational decisions visible more quickly.

ESG, too, is evolving from a reporting issue into an integral part of corporate management. Sustainability goals must be planned, linked to financial metrics, and factored into forecasts. Scenarios and risk-adjusted forecasts help to systematically account for uncertainties.

3. Technology – Platforms, Automation, and AI

An integrated and powerful planning platform forms the technical foundation of modern processes. Automation and artificial intelligence can enable significant gains in efficiency and quality, for example through predictive forecasting, automated budget pre-population, anomaly detection, or AI-supported “what-if” scenarios.

However, the key point is this: AI can only be as good as the underlying data and processes. For this reason, the expert group recommends a gradual approach to mature use cases. AI supports controllers in their analysis and decision-making, but does not replace their professional judgment.

From Theory to Practice

NextGen@Planning provides concrete tools for modern process design. Frontloading shifts the alignment of strategic priorities and key value drivers to the beginning of the budget process. Campus planning brings relevant stakeholders together in a shared “Big Room” and reduces lengthy coordination loops. OKRs support ongoing agile management and enhance adaptability throughout the year.

Six Key Recommendations

This results in six key areas of action for companies:

1. Clarify terminology and clearly distinguish between planning, budgeting, and forecasting.
2. Coordinate strategic priorities early on, for example through front-loading and campus planning.
3. Systematically account for uncertainty —by incorporating scenarios into planning and using ranges in forecasting.
4. Integrate functional planning and link it to financial planning via xP&A.
5. Establish an integrated planning platform as the technological foundation.
6. Introduce AI gradually and focus initially on mature, clearly manageable use cases.

Conclusion

NextGen@Planning views modern corporate planning not as a step-by-step optimization of an existing budget process, but as a fundamental shift in perspective: Planning becomes an integrated, continuous management process that links strategy, operational decisions, risks, sustainability, and technology.

The key message is this: Technology alone does not make planning modern. Only the combination of a clear planning foundation, consistent integration, and appropriate technology creates a truly sustainable corporate management system.