The world of financial planning and analysis has observed changes of such magnitude that they cannot be described by our traditional statistical and analytical models. In this age of frequent Black Swan events, the traditional business approach to operating on an annual budget and forecast is no longer effective. In order to deliver a competitive advantage to a company, modern FP&A function needs to be flexible and dynamic, be based on sophisticated analytics, examine life-time values of the products and services and encourage business partnering. This significant change in the role of FP&A function requires big cultural shift and modern change management techniques....
In an interview to GTNews, Larysa Melnychuk, Managing Director at FP&A Trends group, shares her knowledge on the current state of Financial Planning and Analysis in different countries.
Although it is becoming commonplace to refer to financial planning and analysis as FP&A, this is actually an American term and one that is still not widely used outside of the US.
It is true that around the world, FP&A goes by many names.
The past 5 years have seen significant transformations in the FP&A world.
I have been fortunate enough to have travelled extensively and seen these changes. I observed many restructures, system implementations, analytical insights and innovations, redundancies, frustrations, deadlines… In other words- I saw a lot of changes in the FP&A World first-hand: both successful and painful. I met a lot of FP&A professionals – hard working, exciting, inspiring and often burned out.
At the beginning of this year, I want to share my list of the Top 5 FP&A Trends to watch in 2106.