Strategy execution means core competencies support a realistic strategy and that the plan can be achieved, on time, on budget, and with the intended results. In all honesty, there is no good strategy and failed execution. If an organisation is unaware of its core capabilities and limitations and moves forward anyway, the strategy is flawed.

xP&A is more than an attempt to ‘fix’ the planning process. It is a complete transformation of the FP&A function to continually challenge the status quo, to educate, shape and influence management decisions on how the organization achieves its goals.

For many organisations, the Strategy Gap is a major obstacle, preventing them from truly maximizing their Strategic Planning efforts and sustainably creating value.

There are arguably two main reasons for the Strategy-Execution Gap. The first is obvious: too much focus on short-term profits. The second is less immediately noticeable, but perhaps more deep-rooted: improper allocation of resources.

In this paper, we will explore these different areas to explain what they are, how they have benefited other organisations and the steps an organisation can take in making the transition.

Why are the KPIs an important component in FP&A? What can organisations do to design and build a robust KPI framework and deliver improved business performance?