In the current highly uncertain business environment, an xP&A business partner needs to be equipped with defined skills and competencies that bridge technical acumen, technology, and influence.
The new xP&A world is much more connected than before with the ability to assess the component of risk management, multiple scenarios, modulations, and simulations. All of them are integrated and require a much closer approach to the business intelligence range of new skillsets.
By gaining a deep understanding of the key performance drivers outside of finance, and by expanding its field of prescriptive action into all functions across the enterprise, FP&A can move the next level up and transform itself into an extended Finance & Analysis (xP&A) organisation. This article explores why many of us still think in silos and reasons why traditional business controlling should evolve into extended planning and analysis (xP&A).
It’s often been said that we’re in the agile phase of strategic thinking – the stage of strategic thought that focuses on flexibility in planning and rapid, quickly responding iterations - and it really can’t be emphasised enough just how important it is to build a responsive and agile FP&A strategy. It makes all the difference between an efficient and high-performing strategy and one that’s dead in the dust.
FP&A Transformation has been taking place for some time, with teams moving from the Traditional FP&A Model to the extended FP&A (xP&A) Model. This represents a move from scheduled to on-demand planning, from one scenario to multiple scenarios and from finance to entire company planning.