There are several key components in the FP&A role. The way profitability is analysed and used to improve the business results is one of them.
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Most large and medium-size companies are within ecosystems with increasing complexity and evolutions speed. Globalisation, regulations, technological changes, competitor moves, innovations, customer demands change and few others are the source of this increase in complexity and change speed.
Here are two laws that should question a few paradigms in company management and finance. Applied to company management those two laws bring few questions.
Among the difficult subjects for FP&A and management, there is the very “sensitive” relation between budget or forecast and managers compensation scheme.