Edward Hess in his excellent book Learn or Die reminds us that today’s average tenure on the S&P 500 is 18 years and declining. In 1980, the average tenure was 30.
Hess also states through his research that nearly half of the S&P was replaced in the past decade.
How’s that for company relevance?
Then he tells us the average tenure of the Fortune 500 CEO is just 4.6 years.
As an FP&A professional, you might be asking, “What does this have to do with me?” I believe the answer is everything.
On 8th June 2017, 30 senior finance practitioners from such companies as Aareal Bank, AIG, American Express Global Business Travel, Altran, CSL Behring, Dematic, Equinix, Lohmann, Merck, PepsiCo, Procter and Gamble, Takata, UL, etc., gathered in Frankfurt, Germany, to interactively discuss FP&A Analytical Transformation.
by Michael Coveney, co-author of "Budgeting, Planning, and Forecasting in Uncertain Times"
Spreadsheets are without doubt the ‘killer’ application that turned the PC into an indispensable business tool. Before then, computing was the preserve of geeks and specialists who spoke in a language few accountants could understand as they served expensive, inaccessible machines locked away in their own air conditioned environment.
Rolling Forecast can become the path leading to better company’s profitability and improved operating performance. This is a popular process in the FP&A world. Many companies tackle the idea of taking it.
Those companies that already implemented Rolling Forecast, look at the ways of the process improvement.
One of the more important qualities of FP&A practitioners is curiosity. Curiosity, a strong desire to know or learn something, is affected by the types of questions asked. It is the types of questions that determine how much FP&A practitioners want to know or learn.