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
    • Contributors
    • Editorial Guidelines
    • FP&A Trends Digest
    • FP&A Trends Research
  • FP&A Board
    • Amsterdam
    • Austin
    • Boston
    • Brisbane
    • Brussels
    • Chicago
    • Copenhagen
    • Dubai
    • Frankfurt
    • Geneva
    • Hong Kong
    • Houston
    • Kuala Lumpur
    • London Board
    • London Circle
    • Melbourne
    • Miami
    • Munich
    • New York
    • Paris
    • Perth
    • San Francisco
    • Seattle
    • Shanghai
    • Singapore
    • Stockholm
    • Sydney
    • Tokyo
    • Toronto
    • Washington D.C.
    • Zurich
  • AI/ML Committee
    • Introduction
    • Meetings
    • Members
    • Resources
  • Video Content
    • Digital FP&A Boards
    • FP&A Webinars
    • Short Videos
  • Contact Us
  • About Us
    • Ambassadors
    • Privacy Policy
    • Company Policy
    • Our Sponsors & Partners
image

The FP&A Trends Webinar: The Winning Formula for FP&A Storytelling

Click here to view details and register

 

The Time for FP&A Analytical Transformation Is Here!
New
February 23, 2023

By Kedar Kale, MENA FP&A at Amazon

FP&A Tags
FP&A Transformation
FP&A Analytics

The past decade brought many changes in the world of business. The COVID-19 pandemic has confined billions of people to their homes and brought the flow of money to a grinding halt, threatening a deep global recession. A crisis of this magnitude and uncertainty can potentially create more shifts in the world order than in the previous decade. For example, the sudden surge in online shopping and subscriptions is a sticky habit that will stay even after the lockdown. 

A crisis like this one can be a great change-maker and provides opportunities to drive changes that may deliver significant benefits in the long run. One such organisational change, whose need has often been discussed but not executed, is ‘FP&A transformation’. In times such as these, when revenues start drying up and cost pressures start mounting, the demand for ‘value-add’ and ‘efficiency’ increases across the business world. FP&A transformation can make the overall finance function more efficient whilst adding more value through analytical insights. The time for transformation is now!

 

Key Components of FP&A Transformation

  • Align the FP&A & Overall Business Strategy and Clearly Define FP&A Goals 

The role of FP&A is to guide a business to more informed decisions and optimal performance. Hence, before attempting to transform FP&A, it is important to clearly define the business strategy and align it to the FP&A strategy. It is also important to determine the goals of FP&A as clearly as possible. For example, giving an FP&A team specific revenue growth and cost optimisation targets is a good way to build more ownership and can help drive the team to improve analytics, identify opportunities and make recommendations. This ownership mindset is important to drive true transformation. Without this, an FP&A team may remain in the comfort zone of building budgets, tracking variances in budgets, etc., without adding much value.

  • Become Friends with Data and Statistics

Over the past decade, we have seen an unprecedented increase in the capability to both collect and process data. Data analytics now regularly drive business decisions and deliver improved results. FP&A cannot function without truly harnessing the power of data and learning the art of analytics. While forecasting, it is important to link financial metrics with non-financial ones and use statistical regression modelling. While business partnering, FP&A should use statistical methods such as hypothesis testing and A/B testing to drive a healthier decision-making process. All of these methods require a good working knowledge of statistical concepts. FP&A team members with more traditional accounting backgrounds should be trained in statistics and data analytics courses. Incorporating a hard-core data analyst into the FP&A team may also be a good idea.

  • Let Technology Be Your Guide

The most important component to the success of FP&A transformation is harnessing technology. It is crucial to improve both the efficiency and effectiveness of FP&A. Through automation of repetitive, manual, non-value-adding tasks such as completing management reports, FP&A can be more efficient.

By using technology-enabled models and real-time dashboards, FP&A can generate more insights, interact with the business and impact decisions made. However, to truly harness technology, it is important to:

      1. Implement the right systems and tools

  • Planning systems need to be integrated, collaborative, easy to use and work in real-time
  • Analytics tools need to be integrated with ERP software, strong data manipulation and visualisation capabilities

      2. Engage and upskill the team

  • While implementing new systems and tools, it is a common fallacy that top-down enforcement works. 

There have been innumerable instances where a corporate team responsible for ‘transformation’ has passed down a tool to all FP&A teams across a company without realising the nuances of one particular business unit or location. Hence, FP&A team members from across the organisation should be involved from the early stages to iron out issues before implementation.

  • Teams need to be upskilled to use the systems and tools implemented effectively. Investments in training can pay huge rewards in the long run.

      3. Integrate with the Business 

The true benefits of FP&A transformation will only be seen when FP&A is fully integrated with the business. Through leveraging technology and being more data-savvy, an FP&A professional can add tremendous value to any business. They can provide real-time intervention in decision-making. For example, a brand financial analyst should be able to provide inputs on financial KPI impact when a brand manager is planning a consumer discount. They will be able to verify the discount’s financial sense since the FP&A models used will determine whether the benefit of the volume uplift outweighs the revenue impact of the discount.
 

Conclusion

Overall, the benefits of a successful FP&A transformation are tremendous, and this moment is a great time to invest in one. By making FP&A a truly value-adding function, this transformation will not only protect the FP&A function during the crisis and strengthen the organisation’s performance after the crisis.

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

Related articles

Transforming Finance: From Controlling to Finance Business Partnering Function
October 11, 2019

Does your finance department add true value to the business? Do you see finance influence decision...

Read more
FP&A Transformation: What to Consider
April 17, 2017

For quite some time CFOs and the finance community have been talking about transforming the finance...

Read more
3 Easy Steps to Make Data Analytics Real
September 22, 2017

Analytics runs all business, yet it’s so often obfuscated. To make it real is a journey...

Read more
fp&a
Key Steps to Embrace FP&A Transformation
June 21, 2021

FP&A Transformation has been taking place for some time, with teams moving from the Traditional FP&A...

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

FP&A Trends Survey 2023: Define the future of FP&A 

Click here to view details

Pagination

  • ‹‹ Previous
  • March 2023
  • Next ››
Su Mo Tu We Th Fr Sa
26
27
28
1
2
3
4
 
 
 
5
6
7
8
9
10
11
Five Critical Roles for Building a World-Class FP&A Team
 
Five Critical Roles for Building a World-Class FP&A Team
 
12
13
14
15
16
17
18
Five Critical Roles for Building a World-Class FP&A Team
 
Five Critical Roles for Building a World-Class FP&A Team
 
19
20
21
22
23
24
25
Five Critical Roles for Building a World-Class FP&A Team
 
Myths and Misconceptions of Rolling Forecast and Scenario Planning
 
26
27
28
29
30
31
1
Leveraging Predictive Planning and Forecasting within xP&A
 
 
All events for the year
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

Future Meetings

The FP&A Trends Webinar
The FP&A Trends Webinar The Winning Formula for FP&A Storytelling
April 4, 2023
The Face-to-Face London FP&A Board
The Face-to-Face London FP&A Board FP&A Storytelling in a Data-Driven World
April 20, 2023
The Face-to-Face Stockholm FP&A Board
The Face-to-Face Stockholm FP&A Board Reinventing FP&A: Key Lessons Learned from the Pandemic
April 25, 2023
The Face-to-Face Copenhagen FP&A Board
The Face-to-Face Copenhagen FP&A Board Reinventing FP&A: Key Lessons Learned from the Pandemic
April 27, 2023
Key FP&A Challenges and How to Address Them
The FP&A Trends Webinar Key FP&A Challenges and How to Address Them
May 4, 2023
The Face-to-Face Amsterdam FP&A Board
The Face-to-Face Amsterdam FP&A Board Moving from FP&A to Extended Planning and Analysis (xP&A)
May 9, 2023
AI/ML
The FP&A Trends Webinar Digital FP&A: Deploying AI/ML for Planning, Budgeting & Forecasting
May 10, 2023
Brussels
The Face-to-Face Brussels FP&A Board Moving from FP&A to Extended Planning and Analysis (xP&A)
May 11, 2023
München FP&A Board
The Launch of the Face-to-Face Munich FP&A Board Modern Financial Planning and Analysis (FP&A): Latest Trends and Developments
May 16, 2023
Frankfurt FP&A Board
The Face-to-Face Frankfurt FP&A Board Moving from FP&A to Extended Planning and Analysis (xP&A)
May 17, 2023

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
  • Hong Kong
  • Houston
  • Kuala Lumpur
  • London Board
  • London(Circle)
  • Melbourne
  • Miami
  • Munich
  • New-York
  • Paris
  • Perth
  • San Francisco
  • Seattle
  • Shanghai
  • Singapore
  • Stockholm
  • Sydney
  • Tokyo
  • Toronto
  • Washington D.C.
  • Zurich

Copyright © 2023 fpa-trends.com. All rights reserved.

0