Compared to a decade ago, the financial planning & analysis (FP&A) function is getting more expensive. That could be due in part to the added responsibilities put on FP&A’s plate, the expanding role of the OCFO generally, and the convergence of costly software in a tight labor market, to name a few reasons.
What’s known for sure, however, is that FP&A employees are still spending 75% of their time sourcing data and “performing” FP&A. That means just 25% of time is spent on true value-add activities to the business.
Interestingly, while 77% of finance professionals believe their FP&A work is delivering value-added insight, connectivity and collaboration between departments are still limited, which caps the value and height FP&A can reach.
Modern FP&A functions are moving the needle toward several core focus areas, including:
- Close interpersonal collaboration with non-finance teams.
- Technological synergy across departments and platforms.
- Refined, simplified process and policy architecture for the entire organization.
- Automation for low-touch processes.
- Agile scenario management.
The scope of FP&A is changing. Here’s how to get ahead.
1. Integrate Company Strategy Into the Planning Process
The high-level objectives and key results (OKRs) the business pursues must be observed at the departmental and cross-departmental levels as well. The FP&A function interprets and converts these OKRs into their own sub-OKRs primarily through the planning process – ensuring actionable targets are set and that everyone is working toward the same goals.
This integration requires close collaboration between FP&A leaders, other department heads, and senior executives to maintain a sustainable, unified approach to planning that ultimately fuels operational excellence and achievement of OKRs.
It’s FP&A’s job to take this first step and embed company strategy and tone into its wider process transformation initiatives.
