FP&A does not work in the finance silo of providing backward looking analysis of what has happened. They arm themselves and their operational and departmental leaders with the “why” of the performances and develop insights on trends. In the leading state of the FP&A Business Partnering Maturity model, FP&A is a credible partner that the business leaders can rely on when developing a sound strategy.

In an uncertain and fast-changing world, line managers need to be made aware of the uncertainties and risk inherent in the financial forecasts provided to them. Uncertainty is difficult to manage but uncertainties can be converted into known risk as forecasting capabilities and data management improve.

Although it is becoming commonplace to refer to financial planning and analysis as FP&A, this is actually an American term and one that is still not widely used outside of the US. It is true that around the world, FP&A goes by many names.

Planners and managers in supply chain organizations are accustomed to using the Mean Absolute Percentage Error (MAPE) as their best (and sometimes only) answer to measuring forecast accuracy. It is so ubiquitous that it is hardly questioned.