The FP&A Trends Webinar: Digitised FP&A Business Partnering: The Formula for Success
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The FP&A Trends Webinar: Digitised FP&A Business Partnering: The Formula for Success
Click here to view details and register
By Michael Zelenskyi, Editorial Assistant at FP&A Trends Group
We held the 6th Chicago FP&A Face-to-Face Board on the 11th of October, 2022, and this meeting was dedicated to the emerging and developing concept of Extended Planning and Analysis (xP&A). Indeed, professionals and FP&A practitioners attended the second after the pandemic Board to delve into the questions and challenges caused by implementing this multi-dimensional approach. That meeting welcomed its members with a cooperative atmosphere, lively forward-thinking discussion, and, most importantly, provided many valuable insights from leaders of the industry.
Larysa Melnychuk facilitated this meeting, and everything started with a discussion of the fast-paced evolution of FP&A. Attendees agreed that Financial Planning must also be agile and react quickly to changing circumstances to better respond to the rapidly developing business world. That is why outdated approaches and traditional methods in FP&A do not work anymore, and changing them should be perceived as an opportunity. Participants got acquainted with the agenda stating the necessity of moving towards Extended Planning and Analysis (xP&A).
Other subjects on the meeting plan included:
The International FP&A Board embodied thought leadership and focused on the critical moments of different journeys to Extended Planning and Analysis (xP&A).
Extended Planning and Analysis (xP&A) presuppose harmonising all processes in your organisation. Implementing this approach will require finding a perfect balance between your top-down and bottom-up processes and creating a single, integrated process instead of multiple disjointed ones. Acquiring the right mindset to remain agile may take some time, and xP&A can help you mitigate the uncertainty and embrace tangible benefits like collaborative planning and running on-demand scenarios.
However, many organisations are still stuck on their journey to Extended Planning and Analysis, so this meeting helped senior FP&A practitioners figure out the methods of overcoming obstacles. If you are interested in more practical cases, you are welcome to learn more about this concept from our website.
Larysa Melnychuk, the facilitator at the meeting and the CEO of FP&A Trends Group, shared her vision on shifting to xP&A. Before considering a move towards Extended Planning and Analysis, you should find the answers to four questions: why, what, how, and how exactly?
The discussion was centred around these questions. Senior finance practitioners were glad to share their points of view regarding the subject matter. Larysa Melnychuk also mentioned the six consequent steps to transform your FP&A journey into a successful one. The essentials include the following:
One of our speakers delivered a presentation on transforming FP&A into Business Planning and Analysis (BP&A). He outlined why this approach is more holistic than the traditional methods they have used previously. As a result, the company has grown from creating its budgets in Excel. Most of its processes are automated, so the FP&A team has more time for strategic and operational planning. The evolution will not take place overnight, so you must develop a positive attitude to change and be patient.
After this presentation, Larysa Melnychuk addressed the audience and focused their attention on key takeaways from the FP&A Trends Survey. This paper analyses the positive dynamics of implementing Artificial Intelligence or Machine Learning (AI/ML) in business processes and the specifics of driver-based planning.
Then the attendees were split into three groups, and group work began. After a lovely chat on the most vital issues, participants shared their findings on Data and Models, Systems and Processes, and People and Culture aspects. The most valuable insights voiced during the meeting include the following:
The journey to Extended Planning and Analysis requires the proper attitude to changes, time, and efforts from the C-Suite leaders and the whole team, which needs the motivation to be ahead of the game. This transformation will not happen at once, and your travel may take several years; however, the game is worth the candles.
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