The Global Outlook

In an unpredictable and ever-changing geopolitical landscape where things just generally seem to be at an unstable/uncertain vantage point, navigating a business has become increasingly challenging. Coupled with that, we are witnessing the consequences of declining empathy and ineffective communication: from political polarisation and social unrest to the persistence of racism and intolerance. Organisations are not immune to these dynamics. Left unaddressed, they can erode motivation, collaboration, and ultimately business performance.

This volatility has a direct impact on businesses on a day-to-day basis. Planning and forecasting for the future becomes increasingly difficult as assumptions are increasingly challenged, leading to difficulty in making informed decisions. Nonetheless, there must be a better way to counter this unpredictability. Here, a diverse FP&A team may just be the solution. 

Lingering Questions

How can we steer businesses to the right path? Or even better, come out on top of these macro and geopolitical situations stronger? FP&A teams have an important role to play here. As the only team in the organisation that can crystal ball and chart a path forward, much importance, rightly so, should be placed on the management of the FP&A team.

Importance of FP&A

FP&A operates at the heart of an organisation. By nature of the role, it engages with a wide spectrum of stakeholders across functions and geographies. This central positioning means that the success of an FP&A team hinges not only on analytical expertise but also on its ability to communicate effectively, adapt to different perspectives, and build trust-based relationships.

In “The Culture Map” by Erin Meyer, there is an emphasis on flexibility and empathy [1]. Teams are encouraged to be flexible, curious, and active listeners. A good FP&A professional who embodies these characteristics and collaborates with colleagues who share these characteristics within an FP&A Team can only lead to positive results.

Pablo’s Experience in Diverse Teams

Throughout his career, Pablo has had the privilege of collaborating with colleagues from diverse cultural backgrounds. Each collaboration has been an education. At times, cultural patterns do appear: Germans might be perceived as detail-oriented and rigorous, Swedes as consensus-driven, and Americans as bold and direct. Yet these are surface-level perceptions. Ultimately, every individual is different. The real lesson is not about fitting people into stereotypes but about learning to respect each person’s unique way of thinking and working.

In a previous role, Pablo utilised his diverse background and experiences to lead a Finance function that was made up entirely of Swedes. He was able to successfully navigate through the intricacies of Swedish working culture thanks to his global mindset. In fact, the parent company was located in Germany, so Pablo had to play a pivotal balancing role, managing expectations from two very different working cultures. 

Sahil’s Experience in Diverse Teams

Sahil hails from a developing multicultural mid-sized country of 33 million people in Southeast Asia, where he has been exposed to various cultures from a young age. The polyethnic surroundings have led him to cultivate a diverse group of childhood friends, colleagues, and relationships. The one thing that has been embedded into his DNA is empathy – the ability to place yourself in someone else’s shoes. The classic saying “diversity is our strength” was not just something on a coffee mug, but a lived experience daily. In his current adult life, having migrated to continental Europe, he has successfully adapted to his surroundings relatively quickly. And this has boiled down to his ability to connect with people. 

An example of how this diverse background proved valuable was in a previous role where Sahil built the global subsidiary controlling function for a Germany-headquartered manufacturing company during the COVID-19 pandemic. With 10 international subsidiaries across nearly all continents, the company faced significant challenges regarding transparency, exacerbated by severe travel restrictions. Through open communication and strong cultural sensitivity, Sahil earned the trust of international stakeholders and successfully implemented standardised reporting processes, providing the Management Board in Germany with clear and timely transparency.

Analysis & Framework – a Case for Diverse FP&A Teams

During tumultuous times, businesses need to draw on all their strengths to steer the organisation down their respective targeted path. A diverse FP&A team does not boil down to just cultural, ethnic, gender, and sexual orientation, but also encompasses lived experiences, outlook, skill sets, and varied perspectives. A diverse FP&A team, encompassing the aforementioned factors, is better equipped to manage a business through a crisis or in the present day, amid multiple unexpected crises. The diverse FP&A team can leverage their varied perspectives to design a plethora of scenario planning that better protect and guide the business.

And this is where the true value of diversity lies. Being surrounded by people from different cultural and personal backgrounds does not automatically lead to better collaboration; however, diverse teams often face more conflict, misunderstandings, and slower decision-making. But precisely because of these challenges, diversity creates the conditions for growth. It forces us to adapt, to listen more carefully, to articulate our ideas with clarity, and to strike a balance between conviction and flexibility. When intentionally embraced, diversity accelerates the development of essential capabilities, including empathy, flexibility, and respect.

Examples of Diverse FP&A Teams

Very simply, an interesting, diverse FP&A team could potentially include someone who has a minor in philosophy or international relations. Alternatively, having team members who have spent a summer volunteering in another part of the world. These experiences could potentially inform future modelling for a business operating in challenging regions, for example. Ultimately, having team members with interesting and diverse experiences can be a huge asset to the team, as they are able to bring/share their differing lived experiences to scenario planning.

Think in the Box, Not Outside

In the book “Inside the Box: A proven system of creativity for breakthrough results” by Drew Boyd and Jacob Goldenberg, the concept of creativity thriving on constraints is advocated [2]. The collective experiences and creativity of the FP&A team are constrained by the product portfolio of a particular business, its liquidity situation and macroeconomic circumstances. The lever here is to ensure that the creativity of the FP&A team is fully in control of the CFO. The CFO can ensure the hiring of the right mix and diversity of a FP&A team to tackle any challenge in a creative and resourceful way. 

Furthermore, the book emphasises the need to seek creativity within the team. This means that for smaller to mid-sized businesses that may face difficulty hiring diverse FP&A specialists, they could utilise new/different measures/methods. For example, in a 40-hour work week, encouraging employees to use 10% of that (i.e., 4 hours/week) on innovation/automation. This could include simple tasks such as reevaluating existing Excel files and exploring ways to simplify them. 

Adding Long-Term Business Value

The importance of FP&A in an organisation is clear, as seen in Ernst & Young’s report, “FP&A: Adding Long-Term Business Value” (2024). The modern FP&A function is transitioning from traditional budgeting toward strategic forwardness: combining financial, operational, and human insights. A diverse FP&A team naturally bridges these dimensions, enabling leadership to make well-thought-out, future-focused decisions [3].

CFOs can intentionally foster diversity of thought by hiring for complementary experiences, enabling cross-functional and international rotations, and embedding structured decision reviews that systematically challenge assumptions and broaden perspectives.

Key Takeaways for CFOs/Finance Leaders:

• In times of geopolitical and economic uncertainty, FP&A plays a critical steering role
• Diversity in FP&A goes far beyond demographics and directly improves business outcomes
• Empathy, communication, and adaptability are core FP&A capabilities-not soft add-ons
• Intentional leadership unlocks the true value of diverse FP&A teams

Conclusion – Diversity Is a Secret Weapon

Ultimately, diversity in FP&A extends beyond mere representation. It is about creating an environment where people actively learn from one another, adapt their perspectives, and embrace differences with empathy and respect. Diversity, when coupled with intentional leadership and an open mindset, becomes a catalyst for growth, not only for the team, but for the entire organisation.

Sources:

1. Meyer, E. The Culture Map: Breaking Through the Invisible Boundaries of Global Business. PublicAffairs.
2. Boyd, D., & Goldenberg, J. Inside the Box: A Proven System of Creativity for Breakthrough Results. Harvard Business Review Press.
3. Ernst & Young (EY). FP&A: Adding Long-Term Business Value. 2024.