Skip to main content
Home
The Online Resource for Modern FP&A Professionals
Please register to receive the latest FP&A news, updates and tips Login

Main menu

  • Home
  • FP&A Insights
    • FP&A Trends Digest
    • FP&A Trends Research
    • FP&A Trends Insight Paper
    • FP&A Trends Survey
    • Short Videos
    • Our Contributors
  • FP&A Events
    • International FP&A Board
    • FP&A Trends Webinars
    • Digital FP&A Circles
  • AI/ML Committee
    • Introduction
    • Members
    • Resources
    • Meetings
  • FP&A Tools
    • FP&A Trends Maturity Model
  • About Us
    • Company Policy
    • Privacy Policy
    • Editorial Guidelines
    • Our Ambassadors
    • Our Sponsors & Partners
    • Contact Us
image
PPE Model for Integrated Financial and Strategic Planning
February 3, 2021

By Manasi Ramanna, CFO at Cerulean Scientific

FP&A Tags
Planning and Budgeting
FP&A Strategic Planning
Integrated FP&A

planningIn a previously published article, I proposed that integrating a strategic and financial planning process that is facilitated by the FP&A Head would set the stage for the successful execution of a business strategy while meeting financial goals. In this follow-up article, I will introduce a model for such an integrated strategic and financial process and highlight key practical considerations for its use by an FP&A team. 

There are several good models for strategic planning. Having used many of these, I find models that are simple and easy to follow work best. This is mainly because the simplicity reduces debate about the merits and mechanics of the model itself and enables teams to focus on its implementation. Based on this principle, I find that the Plan, Prioritize and Execute (PPE) model is an effective tool for an integrated strategic and financial planning exercise.  

This model is flexible because it can be used by both large and small businesses and accommodate different budgeting methodologies. The model has three phases that are summarized below:  

PPE Model​

Three Phases of the PPE model

1. Plan

The purpose of this phase is to align and motivate the leadership team and set a direction for the company. This phase is conducted during a CEO-led offsite with heavy involvement of the FP&A lead. There are three main deliverables from this phase:  

  • Strategy fundamentals, which include the company’s vision, values and operating principles. If these have already been set, they should be reviewed by the team. 
  • Big Hairy Audacious Goal (BHAG), which is a compelling, self-explanatory mission for the company that fuels progress. It is typically a stretch goal, but it should not be unattainable. Defining the BHAG is perhaps the most crucial element, as it not only serves to motivate the team but also acts as a beacon for the business’ strategic priorities.
  • Strategic Priorities are cross-functional strategic objectives to be accomplished during the planning horizon that if executed upon flawlessly, would result in the company meeting its BHAG. Strategic priorities also translate into key assumptions for the company’s financial plan developed by the FP&A team prior to the next phase.

2. Prioritize

The purpose of this phase is for the leadership team to decide on the top five priorities for execution in the next year. The session is kicked-off with the FP&A lead presenting the long-range financial plan with the first year of the financial plan serving as a “budget guideline”.  

There is only one key deliverable for this phase, which is a list of five priorities for execution that will get funded in the budget for the following year. Each of these priorities should be measurable and have an accountable leadership team member assigned to drive execution. The FP&A lead will track the progress on these priorities throughout the year and build a budget to support their execution.

3. Execute

This step differentiates the PPE model from other planning models. The purpose of this phase is to ensure focus on the priorities for execution throughout the year. There are three main elements of the Execute phase:

  • Incentives: An incentive plan that ensures that the entire leadership team stays focused on achieving the priorities for execution is crucial. 
  • Tracking: The FP&A team should develop a dashboard that includes financial targets and priorities for execution. This is then discussed by the leadership team on a monthly basis.
  • Communication: Communication with all internal stakeholders, including the Board and employees, during planning and implementation is essential to align and motivate the different teams.

Tips for the successful use of the PPE model

Using the PPE model for an integrated strategic and financial planning process requires an FP&A team to not only draw upon its financial acumen and analytical skills but also hone its communication skills. Below are a few tips on communication that can aid a successful implementation:

  • Setting expectations: Expectations and deliverables for each phase should be clearly explained to the leadership team. This is as much about what not to expect as what to expect. Ground rules that cover pre- and post-meetings discussions should also be set. 
  • Path to the numbers: The PPE model enables the integration of strategic planning and financial planning processes using the strategic priorities and priorities for execution as key assumptions for both the financial plan and budget. It is helpful to reinforce this point during broader communications.
  • Speaking the same language: Aligning on the strategy fundamentals, BHAG and other deliverables, and consistently communicating them to all stakeholders (Board, employees etc.) will unify all stakeholders around purpose and execution.
  • Metrics for course correction, not people correction: Tracking of progress and metrics are an essential part of the PPE model. However, it is important to focus review sessions on collaborative and constructive course correction, rather than the accountability of any individual or department. This can help cultivate more of a problem-solving or idea generation approach when addressing issues that arise during plan implementation.   
  • Celebrate! Celebrating and acknowledging the wins along the way is a crucial success factor that keeps everyone involved motivated.
  • Planning time horizon: The planning time horizon must take into consideration the pace of the industry and size of the company. Typically, a three-to-five-year horizon works best for an integrated planning approach.
  • Making most of resources: The research and analysis conducted during the use of the PPE model can be extensive and insightful. Therefore, it should be shared with other departments to use for functional strategies and tactics development. 

Conclusion

Just as any strategy is as good as its execution, any model is as good as its implementation. The PPE model provides a simple and flexible framework for an integrated strategic and financial planning process that is heavily focused on execution. Hopefully, the details and nuances on the model provided in this article will help FP&A teams successfully run its own PPE process.  
 

The full text is available for registered users. Please register to view the rest of the article.
  • Log In
  • or
  • Register

Related articles

planning
Strategic Planning Pitfalls and Possible Solutions
January 14, 2021

On November 18, 2020, the International FP&A Board welcomed two FP&A thought leaders - Mike Huthwaite...

Read more
Financial Planning
Quantitative Modelling and Simulation for Strategic Financial Planning
November 26, 2020

Strategic planning is mostly done with qualitative analysis. In this article, we will explore the use...

Read more
Financial and Strategic Planning
FP&A Integration: Bringing Together Financial and Strategic Planning
September 30, 2020

FP&A departments are able to track and manage financial plans. But can FP&A help manage the...

Read more
The FP&A Dilemma: Balancing Long-Term Strategic Objectives & Short-Term Goals
July 30, 2019

Organisations often struggle to find a balance between their long-term strategic objectives and short-term goals. Being...

Read more
+

Subscribe to
FP&A Trends Digest

We will regularly update you on the latest trends and developments in FP&A. Take the opportunity to have articles written by finance thought leaders delivered directly to your inbox; watch compelling webinars; connect with like-minded professionals; and become a part of our global community.

Create new account

image

Event Calendar

Pagination

  • Previous
  • May 2025
  • Next
Su Mo Tu We Th Fr Sa
27
28
29
30
1
2
3
 
 
 
 
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Transforming FP&A Together: Human & AI Synergy
 
18
19
20
21
22
23
24
Moving from FP&A to Extended Planning and Analysis (xP&A)
 
Five Critical Roles for Building a World-Class FP&A Team
 
25
26
27
28
29
30
31
FP&A Business Partnering and AI: A New Era
 
All events for the year

Future Meetings

The Face-to-Face London FP&A Board: Data Management & Analytics: Unlocking FP&A Value
The Face-to-Face London FP&A Board Mastering Data in FP&A: Smarter Analytics, Better Decisions

June 5, 2025

FP&A Trends Webinar The Evolving Role of FP&A: From Number Cruncher to Strategic Advisor
The FP&A Trends Webinar Making FP&A Teams Fit for the Future

June 11, 2025

The Face-to-Face New York FP&A Board
The Face-to-Face New York FP&A Board From Insight to Impact: FP&A Business Partnering in Action

June 17, 2025

FP&A Trends Webinar Practical Steps for FP&A Analytical Transformation.
The FP&A Trends Webinar Unlocking FP&A Analytical Transformation

June 18, 2025

The FP&A Trends Webinar How AI is shaping the future of Financial Planning & Analysis (FP&A)
The FP&A Trends Webinar Transforming FP&A with AI: Maturity, Impact, and Future Roles

June 25, 2025

The Face-to-Face Sydney FP&A Board
The Face-to-Face Sydney FP&A Board Modern Financial Planning and Analysis (FP&A): Latest Trends and Developments

June 26, 2025

The Face-to-Face Singapore FP&A Board: Modern Financial Planning and Analysis (FP&A): Latest Trends and Developments
The Face-to-Face Singapore FP&A Board Modern Financial Planning and Analysis (FP&A): Latest Trends and Developments

July 8, 2025

AI/ML FP&A
AI/ML FP&A
Data and Analytics
Data & Analytics
FP&A Case Studies
FP&A Case Studies
FP&A Research
FP&A Research
General
General
Integrated FP&A
Integrated FP&A
People and Culture
People and Culture
Process
Process
Technology
Technology

Please register to receive the latest FP&A news, updates and tips.

info@fpa-trends.com​

              

Foot menu

  • FP&A Insights
  • FP&A Board
  • FP&A Videos

Footer countries

  • Amsterdam
  • Austin
  • Boston
  • Brisbane
  • Brussels
  • Chicago
  • Copenhagen
  • Dubai
  • Frankfurt
  • Geneva
  • Helsinki
  • Hong Kong
  • Houston
  • Kuala Lumpur
  • London Board
  • London (Circle)
  • Melbourne
  • Miami
  • Milan
  • Munich
  • New York
  • Paris
  • Perth
  • Riyadh
  • San Francisco
  • Seattle
  • Shanghai
  • Singapore
  • Stockholm
  • Sydney
  • Tokyo
  • Toronto
  • Washington D.C.
  • Zurich

Copyright © 2025 fpa-trends.com. All rights reserved.

0