The fast-paced journey of the International FP&A Board continues. After a series of well-anticipated discussions in Europe and North America on the transformative potential of the FP&A Trends Maturity Model, this think tank for finance professionals was welcomed in Paris.
The 7th Paris FP&A Board meeting brought together 30 attendees from a diverse range of companies, including Stellantis, Nissan Automotive Europe, Dentsu, KFC, Nexans, Huawei, GE, Schneider Electric, Keolis, and many others. We gathered in a convenient Spaces Les Halles and deep-dived into the main subject of this event.
Figure 1: Paris FP&A Board №7 Participants, April 2024
Workday Adaptive Planning sponsored this event in partnership with IWG and Michael Page. This article briefly summarises the key takeaways from this meeting.
What Can Impede FP&A Transformation?
Following the traditions, the meeting began with the participants' introductions. Larysa Melnychuk, CEO of the FP&A Trends Group and Managing Director of the International FP&A Board, asked the attendees to share their views on the most significant obstacles that may hinder FP&A Transformation. The Paris FP&A Board members shared the following insights:
- Leadership
- Governance
- Tradition
- Excel hell
- Communication
- Culture
- Systems and people
- Process
- IT Integration
- Business Partner
- Complexity/Speed/Cost
- Execution Efficiency
- Risk Management
- Lack of alignment
- Skills
These insights were similar to the ones identified by International FP&A Board members previously. Lack of alignment and confidence in data resonate with many FP&A leaders, and we have to find a solution to tackle these issues.
Figure 2
However, Paris FP&A Board members also pointed out that execution efficiency and sponsorship for transformation are equally important factors for streamlining your organisational FP&A Transformation.
How To Iterate Your Transformation Journey with the FP&A Trends Maturity Model
The agenda focused on the FP&A Trends Maturity Model, a comprehensive benchmarking tool for finance professionals. It allows businesses of any size and industry to evaluate their maturity level and create their unique roadmap for FP&A Transformation. The FP&A Trends Maturity Model was conceived by the London FP&A Board members in 2016 and has been developed by thousands of FP&A practitioners since then.
The FP&A Trends Maturity Model consists of six dimensions, covering both "soft" and hard skills and aspects of FP&A maturity. According to FP&A Trends webinars' data, only 2% of organisations have reached the leading maturity stage. The majority of the businesses are in the middle of their journey and have either a developing (45% of the respondents) or a defined state (26% of the audience).
Figure 4: Julien Cardron shares his insights at the Paris FP&A Board №7, April 2024
During the Group Work session that followed the dynamic presentation of the FP&A Trends Maturity Model, the Paris FP&A Board members were asked to share their perspectives on streamlining the transition to the leading state. In the paragraph below, we will focus on the most important insights from the group work.
Group Work Insights: Guide for Reaching the Leading Maturity State
The participants were split into three groups: data and models, systems and processes, and people and culture. Numerous insights were heard during the breakout sessions, and each group presented their findings to the other FP&A Board members.
Figure 5: Group Work at the Paris FP&A Board №7, April 2024
Here are the key takeaways from each section.
Group 1: Data and Models
- Data categorisation
- Data governance ongoing
- Data lake
- Lots of Excel/lack of starting data lake training
- Communication
- Tech data stack
- Data quality
Group 2: Systems and Processes
- Systems and processes can be the first step/beginning of the transition
- Standardisation of the processes
- Customisation of processes
- Identifying the processes which are needed
- Speed of the flow
- Leadership to explain "the why"
- Communication
- Knowledge of steps
Group 3: People and Culture
- What is FP&A, and what is not?
- Sponsorship for transformation
- Connect strategy
- Understand the business
Figure 6: Group Work at the Paris FP&A Board №7, April 2024
This group also highlighted crucial aspects of powerful and inspiring leadership: consistency, showing the benefits, and Storytelling. Moreover, they also emphasised the need for skill gap analysis and hiring Data Scientists with the appropriate expertise to aid decision-making. Last but not least, they speculated on the traits of a great Business Partner, underscoring the importance of speaking "the same language" and gaining trust.
Conclusions and Networking
The meeting rounded up with a networking session, where the attendees could share their thoughts on FP&A Transformation over a glass of light drink and snacks. We look forward to the next meeting in Paris, where the International FP&A Board will explore how to master Predictive Planning and Forecasting.
