In this article, the author explains why FP&A should take advantage of the possibilities offered by large language models like ChatGPT and how such tools can help us improve the decision-making process.

FP&A expert has to help management make the right decisions. The expert must be able to perform a rigorous logical analysis of the consequences of the decision. This is why an FP&A specialist trained and experienced in visual cause-effect analysis can stand out from the crowd.

Setting targets and defining KPIs is one of the key tasks of FP&A professionals. Defining KPIs is tricky. When properly done they can really drive performance, but sometimes it is the other way around. We see this in the following practical example of the application of the Logical Thinking Process methodology for problem solving. 

In the first part of this discussion we identified the root cause that prevents FP&A to deliver its full value. In fact we have identified a core conflict of FP&A. This conflict can be described in different ways. 

​The daily routine of FP&A professionals revolves around providing reports and analyses for senior and operational management, to manage core processes such as budgeting, forecasting, cost allocation and consolidation. And usually they are hard-pressed for time.

Spreadsheets are a great tool to build and maintain ad-hoc calculations, quickly draft a business plan and create good-looking reports. But when it comes to planning and budgeting in a complex business environment the flexibility of spreadsheets is often quick to become an obstacle instead of an asset in your planning process.