A purpose of FP&A is to help people acquire insight into how organizations function. People acquire insight from a variety of sources; they can acquire insight by reading reports, talking to people, or walking through facilities. A reason people choose a certain source to acquire insight is accessibility and as a result FP&A practitioners should make their insight accessible.
What is FP&A
By Emmanuel Jibodu, Sr. Analyst, Global Finance - Stericycle Inc.
The inspiration for this article stems from a recent conversation on a Financial Planning & Analysis (FP&A) LinkedIn group that I'm a member of. A highly regarded FP&A professional posited that we discuss the differences between the controllership function and FP&A. This post will highlight a couple of differences from an FP&A practitioner's perspective.
In his book THINKING, FAST AND SLOW Daniel Kahneman describes two schools of psychology within the study of decision making. Clinical psychologists advocate the use of methods like heuristics (rules of thumb) and intuition for making decisions.
Statistical psychologists, on the other hand, advocate the use of methods like simple algorithms or formulas for making decisions. Clinical psychologists believe their methods are better than the methods used by statistical psychologists and vice versa. The passion that each school of psychology has for its methods led me to examine my work as an FP&A practitioner.
by Dr. Amarendra Kumar, General Manager of FP&A at Pyramid Consulting
There is evidence that FP&A interest is growing fast. Each and every day, CFOs feel the pressure building on the finance function to contribute more to business success. Within the CFO’s organization, the responsibility for tracking, assessing and reporting corporate performance normally falls to the Financial Planning and Analysis (FP&A) group.
In reality, FP&A specializes in analyzing and planning for the future, wearing multiple hats and identifying various improvement strategies. A valued FP&A specialist is someone who has the ability to engage with and influence the full breadth of top management – not just CFO – ensuring they have the necessary information. The specialist will explain why the business needs to go towards x, y, z markets and not the a, b, c direction they were planning.
by Graham Buck, GTnews
This article was published first on gtnews.com
Two-and-a-half years since its formation, the London Financial Planning and Analysis (FP&A) Board is setting itself ambitious goals.
The Board has acquired two official sponsors; Michael Page, the specialist recruitment firm, which now provides its central London office as the venue for Board meetings; and Metapraxis, the consultancy, analytics for financial professionals and software provider.
For its 10th meeting, held in mid-March, Board members embarked on developing a generic blueprint for FP&A analytical transformation and an advanced FP&A analytics maturity model.
What are the basic ingredients of advanced FP&A analytics? Getting the discussion underway the Board’s founder and managing director, Larysa Melnychuk, suggested that it should be proactive, forward-looking, agile, available in real-time, multidimensional and integrated – although these elements are no more than the basic essentials.