FP&A Systems

Evaluating CPM/FP&A System: Nine Key Areas for Consideration

by Michael Coveney, co-author of "Budgeting, Planning, and Forecasting in Uncertain Times"

 

There are many software products that claim to support CPM, but often they only support some aspects, for example, financial planning, and reporting. One of the issues is that the term CPM is synonymous with budgeting, forecasting and management reporting which by itself cannot provide a complete solution. 
Similarly, some vendors have multiple products covering different parts of CPM. For example, many have a scorecard application that they deem suitable for strategy management; a separate solution for collecting budgets and forecasts; and yet another for reporting and analysis. In the context of this framework, these multiple solutions can only work if they are truly integrated and can be made to operate as a single system. Without this level of the integration, system maintenance becomes an unbearable nightmare that cannot suitably adapt to the dynamics of the economic environment. 

This article gives an overview of 9 key areas that should be considered for the overall evaluation of CPM/ FP&A system.

Utilizing Technology in FP&A

By Karl Kern, Founder/President, Kern Analytics LLC

This article  addresses technology in FP&A.
In his book "THE INNOVATORS" Walter Isaacson describes two ways of utilizing technology.  One way is artificial intelligence, machines thinking on their own.  Another way is augmented intelligence, people using machines to help organize information.  Both ways are seen as improvements in our ability to make better decisions.  The ability to make better decisions is an important part of FP&A. 
I see artificial intelligence in FP&A.  

Exceptional EPM/CPM Systems are an Exception

By Gary Cokins, Founder and CEO: Analytics-Based Performance Management LLC

Quite naturally, many organizations over-rate the quality of their enterprise and corporate performance management (EPM/CPM) practices and systems.   In reality they lack in being comprehensive and how integrated they are. For example, when you ask executives how well they measure and report either costs or non-financial performance measures, most proudly boast that they are very good. Again, this is inconsistent and conflicts with surveys where anonymous replies from mid-level managers candidly score them as “needs much improvement.”

Every organization cannot be above average!

 

Why Driver- Based Planning and Dedicated Planning Systems Matter for FP&A

By Elena Kiristova, CFO Russia and CIS at Groupon

Integrating actuals into the planning cycle is usually not an easy task. Financial and operating results are spread across multiple databases. Actual results and plan detail are at different levels. Lack of underlying volumes and rates make meaningful causal analysis difficult.

BUT - You want apples to apples. Too often you get a fruit salad.

With today’s more intensive focus on driver-based planning and key performance indicators, this  article will help management and FP&A staff think through the issues for better Variance Analysis and Corporate Performance Management.

Five Common FP&A Problems and How to Solve Them

 

After her  round of meetings with financial planning and analysis professionals across the globe, Larysa Melnychuk, managing director of the London FP&A Club, returned with plenty of stories and insights about the challenges they face. Here, Melnychuk reflected on the biggest obstacles FP&A professionals face, and possible solutions to overcome them.

 

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