The growth of the International FP&A Board continues. Helsinki became our 31st chapter in the 17th country and the third city in the Nordic region.
As per the established tradition, the launch of the International FP&A Board chapter is devoted to in-depth discussions of the latest trends and developments in modern Financial Planning and Analysis (FP&A). The inaugural Helsinki FP&A Board was no exception.
Figure 1: the inaugural Helsinki FP&A Board, November 2023
This session, proudly sponsored by Wolters Kluwer in partnership with IWG and Operaria, brought together 30 senior finance and thought leaders in an elegant Spaces Postilato. Helsinki FP&A Board welcomed people from such organisations as Nokia, IKEA, Posti Group, UPM, Envista Holdings Corporation, Metso, Stockmann and many others, and we are thankful to everyone who joined on the 16th November 2023.
In this article, we summarise the inaugural Helsinki FP&A Board's main findings and reflect on the insights from this meeting.
Challenges in Modern FP&A
Figure 2
The Helsinki FP&A Board members learnt about consolidated peers' responses regarding the biggest challenges in modern FP&A from three other recently opened chapters. According to the consolidated insights from other meetings, FP&A practitioners from different parts of the world believe that Business Partnering, Integrated FP&A, Predictive Analytics, Digitisation and Artificial Intelligence (AI) are among the most impactful trends in our industry now.
However, the Helsinki FP&A Board members shared their views on other challenges: we focused on re-forecasting and Scenario Management. Real-time forecasting and accurate insights regarding plausible futures are crucial aspects of today's fast-paced business environment. Larysa Melnychuk, the CEO of the FP&A Trends Group, classified the other dominant trends into the following categories:
- Processes (Scenario Management and Integrated FP&A);
- People (5 FP&A Team Roles); and
- Technology (Digital FP&A).
After a short input from the discussion moderator, the attendees started to explore the abovementioned trends in sequence.
Scenario Management
It is a planning and thinking method that deals with uncertainties by considering many alternative futures and their possible effects on the organisation. Scenario Management is not about predicting the future but managing uncertainty within any part of the business. According to the 2023 FP&A Trends Survey, only 16% of organisations can run scenarios in less than one day, while 20% cannot do it at all.
Figure 3
We can select its speed and constant screening for threats and opportunities among its benefits. However, implementing this method within the organisation may be complex and requires a mindset shift.
Integrated FP&A and Extended Planning and Analysis (xP&A): Understanding These Approaches
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The forum also enriched their understanding of Extended Planning and Analysis (xP&A). This planning approach helps reach an organisational alignment between financial, strategic and operational plans, and it spans beyond the finance function.
Figure 5
As per the 2023 FP&A Trends Survey, only 12% of the respondents have successfully and fully embarked on this journey to analytical excellence. 40% of the respondents are not there yet, and 8% do not consider this opportunity. The Helsinki FP&A Board members also discussed the six crucial success factors in Integrated FP&A, depicted below.
Figure 6
FP&A People and Five FP&A Team Roles
Another item on the meeting's agenda was dedicated to the expanding scope of skills an optimised-to-perform FP&A team should have. The attendees learned about the five FP&A team roles (Analyst, Architect, Data Scientist, Storyteller, Influencer) and the core functional skills and responsibilities of a multi-dimensional FP&A department.
Digital FP&A
The ongoing influence of digitisation on FP&A can not be underestimated, so Helsinki FP&A Board members also discussed this subject. The discussion facilitator defined Digital FP&A as an approach that allows us to generate real-time analytical insights using internal and external data with minimal manual effort. It can bring speed and agility to your organisation.
Group Work and Final Thoughts
Figure 7: Group Work, the inaugural Helsinki FP&A Board, November 2023
After discussing Digital FP&A, the meeting quickly moved to group work. The participants had to address the following questions and present their insights to other FP&A Board members:
- How to move from traditional planning to Scenario Management?
- What are the practical steps in implementing xP&A?
- How can organisations prepare themselves for successful analytical transformation?
The insightful meeting ended with networking, where the attendees had a chance to forge connections with like-minded people and get acquainted with fellow FP&A leaders.
