Unlocking The Future of FP&A

How FP&A can drive the right

strategic choices in the company

Sponsored by:

© Business Partnering Institute, 2020

1
Table of contents
Section 1: 5 | The mission

WHY 6 | The framework

7 | The transformation paradigm

Section 2: 9 | The mindset

WHAT 10 | The technology

11 | The processes
12 | The people
13 | The capability model

Section 3: 18 | The transformation plan

HOW
Section 4: 22 | The call to action

SO WHAT 23 | The final outcome

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Unlocking The Future of FP&A

Why should you

read this book?
Here is how to transform This book is written as a guide to the CFO on how to
transform FP&A to significantly increase the ROI of the
The HOW is a simple transformation plan that helps
you map current and desired future state.
your FP&A team and make department.
The SO WHAT happens next is a call to action for the
it future ready It is also directed at FP&A professionals for them to CFO to get started. It also discusses the outcomes that
understand WHY the transformation is needed, WHAT the transformation should deliver.
needs to be transformed, HOW it should be done, and
the SO WHAT happens next. FP&A should be impacting strategy and the last section
tries to answer how to create this impact.
The WHY stems from both the CFO and the CEO
wanting more from FP&A. Let this eBook be your guide to a successful
transformation of FP&A and see your impact grow with
Significant technology investments have been made it!
in FP&A, yet the ROI has been poor. That needs to
change!
The WHAT breaks down FP&A into subcomponents
and combines it with the transformation framework of
mindset, technology, process, and people.
It also deep dives into a new capability model for
FP&A.

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WHY | Unlocking The Future of FP&A

The business wants more! The CFO needs more!

Why do we need
The demand for agility is changing all businesses, These demands have pushed the CFO into action.
to change FP&A? either as part of their effort to lead their industry or
to stay competitive. Market forces compel the change
The CFO role is shifting to become a strategic business
partner while maintaining the traditional finance role
away from top-down, control-oriented hierarchies to as the steward of resource allocation.
External factors dictate flexible systems that highlight responsiveness and
Change needs leadership buy-in to be successful,
risk-taking.
change while intrinsic Our business partners, including the CEO, do not and the CFO is the logical sponsor of a finance
transformation.
motivation pushes us into have time for a lengthy budget process and outdated
forecasts because the market is moving too quickly. Resources are scarce; however, hence the
action They are demanding quick financial closes, rapid transformation must be self-funded and produce quick
interpretation of the data, and insights that they can wins to gain momentum and be successful
convert to action.
To deliver on this, here are two governing principles
These insights need to be data-driven and combined to realign and reinvigorate FP&A to drive forward the
with business judgement; if finance cannot supply that, transformation.
they will develop their own analytics capabilities or
worse make worse business decisions.

1. 2.
71% …of all CFOs have
improving FP&A
at the top of their agenda
Free up resources to invest into the transformation.
By increasing efficiencies across the finance function
it becomes a self-funded transformation - not an
uphill battle!
Create a compelling mission and a framework that
will govern the design of the future FP&A team. The
aim should be a holistic transformation that addresses
mindset, technology, processes and people.

*https://www.protiviti.com/US-en/insights/finance-priorities-survey 4
WHY | Unlocking The Future of FP&A

The Mission
FP&As mission is to drive
the right strategic choices
in the company strategy.

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WHY | Unlocking The Future of FP&A

A framework for FP&A must look more at leading indicators and business drivers rather than

F
historical numbers. Only by becoming forward-looking can be deliver actionable
the future way of insights.
The democratization of data and tools will give many departments analysis and
working Financial
projections. However, FP&A must become “bi-lingual” and gain the ability to speak
the language of business and finance.

It is all about impacting

The tasks of budgeting, forecasting and planning will remain, but a lot of it will be
the strategic direction of

P
done by algorithms which are more accurate at forecasting than humans.
the company Re-forecasting and fast reactions to external events will replace obsessive
budgeting. This means that the planning discussion will be around strategic choices
and implementing contingency plans when your assumptions do not hold up. This
Planning
will be qualified by multiple what-if scenarios.

With great data comes great challenges of how to sift through it all, know what is
relevant, and focus on adding value. Easier said than done, so here is a guiding

A
Analysis
principle: alignment for finance means to link the mission and the money.
The mission is the company’s purpose, enacted through strategy and objectives;
money is how the company funds itself. The KPIs, business cases, and budgets are
all ways of expressing that basic responsibility. When conducting analysis, ask
yourself am I adding value to this task.

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WHY | Unlocking The Future of FP&A

A new
transformation
paradigm
We need a holistic approach The transformation paradigm New capabilities are needed!
to transform FP&A The push from the business, the demands from the These technical skills will only carry us halfway; we
CFO, and the creation of a compelling mission and need the interpersonal skills to be effective partners
practical framework should bring about a golden age who know our partners’ business in-depth and earn a
for FP&A. Opportunities are abundant to make an seat at the table.  
impact in the company.
The benefit for the company is a transformed FP&A
It starts with the right mindset for FP&A. We must be team that can plan continually, reallocate resources
MINDSET TECHNOLOGY ready to embrace new ways of working, looking up quickly, increase decision velocity, and build agile
from our screens and seeking the interaction with other operations.
departments, and using the latest tools available to
drive efficiencies and optimize processes. It is a new era for FP&A, and we should rise to the
PROCESS PEOPLE occasion and seize the opportunity to leave a lasting
The days of sending spreadsheet templates and impression on our company. That we do by making
linking the subsidiary sheets into a master model are better strategic choices and creating more value
over. FP&A requires efficient financial processes and for our shareholders and society while running the
business acumen that support our vision, combined business in a sustainable manner.
with enabling technology and the capabilities to use it.

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WHY | Unlocking The Future of FP&A

What is your WHY

for transforming
FP&A?
Here you can take notes on
your thoughts in the WHY

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WHAT | Unlocking The Future of FP&A

The new mindset for

FP&A professionals
Live by curiosity, courage, How FP&A professionals can develop
crystal ball, and clarity a strategic mindset
and see FP&A re-defined! CURIOSITY COURAGE
You must ask questions to ensure: You must have the courage to ask
1. That different options are explored the questions in your curious mind,
The new mindset needed for FP&A even if that means challenging senior
2. Each option is evaluated with the
professionals is centered around the 4 C’s. same rigor
management about which strategic
options will be best for the business and
• Curiosity to explore historical data and 3. Apply rigor to evaluate options by debating the tactical options that will get
external developments to reveal where there investigating the data, the business,
you there.
are risks to different strategy options.  and the assumptions behind each of
them.
• Courage  to challenge and influence the
strategic thoughts of key decision makers. 
CRYSTAL BALL CLARITY
• A Crystal Ball to financially model the impact
of the strategic options and create what-if Foresight into what might happen if Strive for clarity in your presentations
scenarios.  a certain choice is made. Develop to foster communication and alignment.
your modeling abilities to predict That may mean in-person meetings or
• Clarity  of the numbers, financial as non- multiple outcomes, press for clear and visualizations; it involves listening and
financial, so that you have awareness and documented assumptions, and deliver a reading the reactions of your partners.
can adapt while navigating to the preferred recommendation.
strategy.

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WHAT | Unlocking The Future of FP&A

Technology will spark a newfound

Technology curiosity on how much can be
automated, giving us more time to
build relationships, listen to our key
+ Human stakeholders and drive better strategic
decisions.
SOURCES
IOT

> Technology It takes courage to embrace new

technological solutions. These are
Cloud
RPA
Mobile
Social
Analytics
often not “out of the box”, “plug n USES
It is not tech or people but play” solutions and will require us to
spend time learning new capabilities
tech AND people in process automation, analytics and
financial modeling etc.

AI, machine learning and predictive Data is at the heart of the technology revolution. We
analytics will give us more powerful will get much more horsepower to process big data
crystal balls. This space is largely and better handle the travel from sources to uses.
unexplored and represents immense
potential for us to understand, interpret,
More data is being created (IOT as an example) and
communicate and execute on these
predictions.
captured (Cloud), and our ability to analyze it as
Empowering FP&A professionals with the latest humans is magnified by automation (RPA). We need
technology will enable them to develop insights the tools to keep up, but the tools also need us to be
beyond imagination. It will help them drive efficiencies Technology will give us more clarity of effective (Analytics).
that can free up time for the important discussion insights driving better decision-making.
of what actions to take and how to execute them It will also make it clearer to us exactly
properly. AI could do neither on its own and that is why where human or soft skills can be a The goal is to go from data to insight that can then
Tech + Human > Tech. All it takes is the application of differentiator in creating and executing be shared via several mechanisms (Mobile and Social
the new mindset! good strategies. being just examples).

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WHAT | Unlocking The Future of FP&A

FP&A processes re-engineered

F, P, and A will never be the same again!

Create a clear overview of business performance that

Understand the business, the strategy (goals) and the in an instance tells you where to deep-dive with your
numbers. Align forecasting to fit your business cycle.
analysis.
Link financials and non-financials metrics. Discuss business drivers and developments, risks and
Analysis should aim to develop insights although it is
opportunities instead of merely producing financials.
Develop a set of KPIs to track business performance. explorative by nature and might not always lead to
CURIOSITY action.

Be a strategic partner. Have the persistence to keep Challenge the current planning process if it keeps being Challenge both good and bad performance. You need
asking when numbers or assumptions do not make outdated as soon as the new period begins. to analyze if good performance should be even better
sense. Align with your business partners on how best to support performance given market and other conditions.
Be proactive in performance management and always the business strategy and goals vs. just producing Draw conclusions from analyses even you have not
COURAGE challenge to deliver better performance. reports. investigated every single detail.

Model the future based on drivers and market Analyze future performance by using past track records
Do not just report on the past but predict the future. information rather than static incremental growth and to estimate a confidence level in the business being
Become a champion in reading leading indicators to be specific about and document your assumptions. able to deliver forecasted performance.
always know what is coming. Create multiple scenarios and what-ifs to be ready to Know what needs to change but equally important what
CRYSTAL BALL act when your Plan A does not work. should stay the same to deliver expected outcomes.

Make a logical connection between business decisions,

Any analysis you do must be done from your business
Keep it simple. Ensure the financials are easy to explain strategy and modeled financials.
stakeholders’ perspective.
to non-finance people. Ensure to have a clear follow-up model between
Focus on solving the key pain points the business is
Implement self-service reporting. planning vs. actuals and business cases vs. project
CLARITY facing- short term and long term.
performance.

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WHAT | Unlocking The Future of FP&A

The new look FP&A

capability model A capability model for the future! How can we build these skills?

In the past what made you a successful FP&A We first need to differentiate between the soft and hard
It is not enough to be right professional was likely your technical skills i.e. Excel skills that are needed for the future FP&A professional.
so influencing must be modeling and the ability to analyze data.
The hard skills like modeling and technology can be
weighted equally These are now only the entry point for a career in
FP&A, but not the determinants for your future success.
gained with periodical training, with an emphasis on
automation and making it easily replicable.
We must build a new capability model that builds upon The hybrid skill of business acumen will be best
the basics of an FP&A professional and adds critical gained with direct exposure to the other departments
elements that determine future success. of the company.
The model will be built around the mindset attributes That can be in the form of on-the-ground visits to
and have more emphasis on capabilities needed to production plants, workshops on current initiatives that
influence decisions. marketing is working on, or just grabbing a coffee with
people from sales to understand their challenges.
CURIOSITY COURAGE CRYSTAL BALL CLARITY Finally, one way to improve soft skills such as
influencing, and communication is via a mentorship
Relationship-building Empathy Modeling Communication program, where the mentors come from both Finance
and non-Finance backgrounds.
Problem-solving Influencing Technology Storytelling
That way they can guide FP&A on how to work with
teams that may have a different decision and thought
Active listening Integrity Business acumen Creativity
process as the one they are used to.

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WHAT | Unlocking The Future of FP&A

Curiosity sparks a conversation

Build lasting relationships by being an active listener and solving problems
RELATIONSHIP-BUILDING PROBLEM-SOLVING ACTIVE LISTENING

WHY: Because we need to reach a stage where business leaders WHY: To ensure we are solving the right problems and produce WHY: Listen first to understand what the business leaders want to
do not make any important strategic decisions without consulting the best options to solve them. achieve rather than forcing your own agenda upon them.
FP&A first.
WHAT: A framework like the pyramid or SCQA principle that WHAT: Any interaction you with have business leaders where
WHAT: A win-win relationship built on a foundation of trust provides a structured way of solving and communicating any you bring energy and direction to the conversation.
creating an intimate space where both business leaders and the problem.
FP&A professionals can speak freely and have frank discussions HOW: To be a good active listener you must be competent,
about what is the best strategy. S = Situation described in widely accepted facts likeable, and bring energy into the conversation.
C = Complication that makes the current situation unsustainable
HOW: Establish trust by understanding what makes you and prompts you to act Competent:  It is when we have  direct eye contact, low pitch/
trustworthy and where you are challenged. The best framework Q = Question: The key question that you want to answer posed slow pace, downward inflection, still body, neutral stance, firm
for that is the trust equation*. in a SMART way gestures, strong volume, short sentences, and pausing.
A = Answer: The solution to the problem Likeable: It is when we are smiling, having a relaxed forehead,
Credibility + Reliabilit + Intimacy
TRUST = HOW: To go from question to answer you should follow this logical using people’s names, upbeat energy, a friendly tone, causal
Self-orientation structure… relaxed moves, and use humor.

Then develop higher emotional intelligence by focusing on these …create an issue tree… Bringing energy: 1) Do not go over the top, 2) Stay in the zone of
four key areas:   …rank the issues…. 70-80% of max voice volume, 3) Stay neutral to the situation, 4) Be
…brainstorming for solutions… positive spirited and never bring bad mood, and 5) Get personal
1. Self-awareness   and show that you are willing to get to know the other person
2. Self-management …design solution…
3. Social awareness   …build a prototype of the solution…
4. Relationship management …reverse engineer what would have to be true…
… test the assumptions…
Without trust you have nothing so creating trust must be a key …presenting the solution using top-down method
priority for everyone in FP&A!
This will help you solve any problem!

*https://trustedadvisor.com/why-trust-matters/understanding-trust/understanding-the-trust-equation 13
WHAT | Unlocking The Future of FP&A

Courage to go outside the comfort zone

That is where you will find the answers to how you can change decisions
EMPATHY INFLUENCING INTEGRITY

WHY: It is about understanding other’s situation and creating WHY: FP&A does not make the decisions so influencing is the WHY: FP&A remains the steward of company resource allocations
value for them – FP&A can never be successful on its own. only way to change them. and must be held to the highest standard of objectivity when
doing the allocation.
WHAT: Showing an interest in other’s goals and challenges and WHAT: Being able to change other’s perspectives and re-direct
being genuine about helping them solve them. their course of action. WHAT: Practicing honesty and standards of professional care in
all dealings without engaging in any activity that would prejudice
HOW: By creating a safe space and establishing trust within the HOW: As part of building an influence strategy there are broadly the ability to carry out professional responsibilities competently
team or with the stakeholders. seven areas that you can focus on to achieve enhanced influence. and fairly.
By listening to others and not just what they talk about but also Be flexible and work actively to show your flexibility while holding How: Keeping one’s integrity is an all-round effort with many
their body language and do so without interrupting. firm on your beliefs. pitfalls. Here are the main points to always be aware of in your
By paying attention while you are listening. Build trust with your colleagues as influence is intrinsically linked daily work.
to trust. If someone trusts you, they will be open to influence.
By talking to others and pay attention to what they are doing, • Avoid conflicts of interest
praise them for their achievements, and encourage them to voice Be assertive, not aggressive since being assertive is the only way • Support your company’s code of conduct
their ideas to get your ideas noticed, especially when you are competing with • Surface contradictory or negative information
others for visibility. • Refrain from abusing the financial systems
Sharpening your empathy skills involves an understanding of
• Honestly and candidly report information
your ambitions and sensitivities and the viewpoints of others, so it Build reliability through consistency as inconsistency ruins your
• Disclose fully all relevant information that could reasonably
is necessary to reflect and assess your empathy levels. Increased reputation.
be expected to influence decisions
awareness of self and others prompts a more deliberate,
Focus on actions rather than arguments as trying to build • Prepare business leaders with the fullest, best, and most
thoughtful decision-making process.
influence through words does not work. relevant information.
Listen to others as influence is a two-way street. • Clearly articulate assumptions and unknowns.
• Beware of cognitive biases
Be personal as a little personality goes a long way, when you are • Represent data accurately and pay attention to scales and
trying influence in the workplace. inclusion/exclusion of outliers

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WHAT | Unlocking The Future of FP&A

The crystal ball guides future decisions

FP&A must make qualified statements about the future
MODELING TECH BUSINESS ACUMEN

WHY: It is essential to build scenarios, what-ifs, business cases WHY: Technology will fuel innovation, free up time for building WHY: Being in business is about making money and to understand
and forecasting tools. relationships, and boost your problem-solving capabilities. how to make money you need business acumen.

WHAT: A model built in Excel or planning tool that allows you to WHAT: Understanding what tech platforms are available to solve WHAT: The understanding of how to make money in business
model different outcomes by changing key assumptions. a given task and how to apply it in a specific company context. often in a specific context.

HOW: Most models to this day are still built in Excel or Excel-like HOW: FP&A professionals must understand the capability and HOW: To develop business acumen you must focus on developing
tools. Hence, mastering modeling starts with mastering Excel. resource gaps that exist in the company overall and in the FP&A these 11 sub-capabilities: Mindset, Foresight, Broad Scanning,
department. Otherwise, you will fail on the HOW of tech because Strategic Alignment, Collaborative, Resource Management,
To master Excel you need to know both functions and formulas you will not be able to implement solutions that work. Systems and Process, Decision Making, Talent Development,
but also formatting and modeling design. Duty of Care, and Financial Literacy.
Now it is all about understanding the WHAT. What can automation
The key is to build dynamic models where different outcomes do? What can analytics do? What can apps do? What role do all Many should not be foreign to FP&A as we can demonstrate an
can be modeled through assumptions. This means no hardcoded these play in making the right strategic choices? understanding in foresight (seeing things before they happen),
numbers. resource management (including people, technology, money,
Once you understand the WHAT you also need to know whom to and time), decision-making (effective, well timed and inclusive),
Beyond the average Excel-user capabilities it is recommended turn to for implementation. It could be IT, BI & Analytics, or even and financial literacy.
that you become a certified financial modeler if you want to make within the FP&A department. If you do not have these available,
this one of your key strengths. then look around for vendors that have this specialist knowledge Broad scanning (checking the external environment for divergent
and can help you with implementation. inspiration), strategic alignment (getting others to see, understand
and execute a strategic plan) and talent development (tapping,
delegating, and building talent around us) are sub-capabilities
where we need further development

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WHAT | Unlocking The Future of FP&A

You need clarity to be impactful

Without clarity your actions will fall flat, and your influence will be minimal
COMMUNICATION STORYTELLING CREATIVITY

WHY: Your ability to communicate often determines your impact WHY: Everyone loves a good story and it makes it easier for them WHY: It is what drives our chase for insights and fuels our ability
and with poor communication your insights will fall on deaf ears. to understand the message. to communicate well and tell good stories.

WHAT: Communicating in a clear and concise language, which WHAT: Facts and figures brought to life by “showing” people what WHAT: Originality and innovative thinking that lets you bring
non-FP&A professionals understand, with confidence and happened rather than just “telling it”. about new perspectives on any given situation.
empathy for the receiver.
HOW: Understand what lies behind the numbers because that will HOW: Creativity or creative thinking involves six key components:
HOW: Your stakeholders will pay any price for simple, step-by- provide a context which you need to create the story.
step instructions, and support to fix their pain points, but they will Problem sensibility: reflection upon the challenge
only pay pennies for dashboards, KPIs, and graphs. Dashboards Communicate with anything but numbers and instead use words
Liquidity: having many ideas leading to a good one
only diagnose pain. You must provide a clear path to curing that or even better visuals because non-FP&A professionals easily get
pain. lost in all your tables and long-worded bullets Flexibility: the ability to look at the problem from different angles
or perspectives
The key for FP&A to excel in communication, is to step back and Go and experience the business so that you understand the reality
your stakeholders operate in. Re-definition: viewing the challenge differently
recognize; when you might be trying to sell dashboards, KPIs and
forecasts that are only meaningful to you and have a limited shelf Originality of thought: courage to try something different and
Become a better presenter because you must move beyond the
life when what your stakeholders want is two or three simple, not copy others around us
content and act your way through the story. That you cannot do
highly visual, actionable strategies to unlock value creation that Collaboration: a process of engaging others to create solutions
if all you are thinking about is how to make sure you cover all the
is trapped in their business. built on multiple perspectives.
content.
As you improve at telling the story behind the numbers both your FP&A professionals are required to tap into all six areas if we
One thing is knowing how to do it but it is something else to
impact and your influence will increase exponentially. want to thrive in the face of complexity, ambiguity and solve the
execute when standing “on stage”!
challenges facing FP&A and our business stakeholders in the
future.

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WHAT | Unlocking The Future of FP&A

WHAT should your

future FP&A team
be doing?
Here you can take notes on
your thoughts in the WHAT

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HOW | Unlocking The Future of FP&A

The STEP 1 STEP 3 STEP 5

transformation Explore and capture your

current state mindset. Begin with
yourself as a leader. Ask yourself
Write a list of things you will
do differently to achieve the
Continually ‘challenge’ yourself
and others, and ‘care’ about
the transformation. You cannot
how you have been applying change a mindset if you do not
desired results in your ‘Future
plan to the future the 4 C’s to people, process and
technology. Think about your
FP&A team, your finance leader
State’. Achieving early success
,
is critical to long-term success
so ideally your list includes both
care. If it does not challenge you,
it will not change you. Lastly,
hold yourself and your FP&A
peers, cross functionally, and team accountable for doing
quick wins and long-hauls.
externally. The output should be what you said to embed the new
The road ahead is long a table that maps the ”Current mindset. Without accountability

but follow these five steps

State” in a matrix. your transformation will fail!

diligently and you will

succeed!

Reflect on your comments in A mindset change is not a black

the ‘Current State’ table, and and white “Do this”. It is an
now capture your ideas for the individual journey first, and then
‘Future State’ by using the same comes a team transformation.
matrix structure. You can see an Now that you completed the
example of both “Current State” individual exercise, prepare and
and “Future State” on the next run similar sessions for your
two pages. FP&A team and finance peers.

STEP 2 STEP 4

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HOW | Unlocking The Future of FP&A

Example of a current state mapping

Without knowing your starting point you do not know what needs to change

CURRENT
FUTURE
PEOPLE PROCESS TECHNOLOGY
STATE

Providing explanations on some insights, however Attend

Awarenessexternal events
of the newfrom
toolstechnology
that exist partners
and are to see
being
Resources appear busy
Team is focused generating
on business Business as
partnering andUsual
the what tools are available and what other organisations
CURIOSITY reporting.
technology generates 80% of the reporting.
no common
Capacity approach
built into theto identifying insights, monthly,
process (weekly, and not used in pockets internally, and external organisations
CURIOSITY prioritising what needs further investigation. are using.  Power BI.
i.e. Tableau,
quarterly, etc.) to look for insights.
Sense of excitement to investigate data. Ask Experts for help. (Technology + Human > Technology
alone)
Afraid of breaking current reporting that generates
Often fall into urgent business issues, saying ‘yes’ and Sticks with the budgeting process despite everyone month end, budgeting and forecasting results.
COURAGE generating ad-hoc reporting. Challenge
loathing it aspeers on financial and non-financial
an example. Afraid of breaking current reporting that generates
Fear of the unknown. Fear of implementation failure of
Take risks with new reporting and seek feedback from assumptions. month end, budgeting and forecasting results.
COURAGE a new tool/system.
stakeholders. Fail Fast – try a new forecast process. If it is superior use Fear of the unknown. Fear of implementation failure of
it and if not, try again. a new tool/system.
Reporting, analysis and insights are historical looking.
Department heads provide strategic direction and are Financial modelling of forward estimates and strategy
responsible, however often disconnected with FP&A often do not align with current financials. Heavy excel dependency for scenario models with too
CRYSTAL Reporting,
many variableanalysis and
inputs, insights
and levelsare historical
of manual looking.
intervention
and latest financial projections. Weekly forecasting builds in forward looking insights, (Analyst,
Heavy excelFinance Manager,for
dependency Business
scenarioSME)
models with too
BALL
CRYSTAL Focus on historical financial data due to business Align financial
however modelling is
the consolidation of largely
forwardmanual
estimates and
and time
80% of reporting and business partnering is forward strategy with current financials. many used
Tools variable inputs, and
to generate levelsare
reports of manual intervention
not always reliable,
targets and explanations. consuming.
looking. (Analyst,
are Finance
out-dated Manager,
versions, and Business SME) by IT.
not supported
BALL Automate the consolidation of weekly forecasting.
Tools used to generate reports are not always reliable,
FP&A activitiesversions,
are out-dated do not align with
and not the business
supported by IT.and do
Minimal sharing of strategic direction within finance & not give the business the answers they need.
Sharing and updating of information is often informal
cross functionally. This poor alignment is impacting the which Peers and stakeholders appear caught in Business as
CLARITY Selectleads to errors
processes and omissions.
to automate that support the business Pick and choose where technologies add more value.
shared
Pick andunderstanding,
choose wherevalue
humansaddadd
opportunities,
more valueandi.e. Usual.
CLARITY strategy.
does not allow
storytelling. for assumptions to be challenged. Outsource modlling
Advanced tools where
to model andcapability is not present
capture assumptions and
Request feedback from the business. internally or to keep
financials are not used.up with analytical tool trends.

19
HOW | Unlocking The Future of FP&A

Example of a future state mapping

To know where to go you must paint a clear picture of the future!

FUTURE
PEOPLE PROCESS TECHNOLOGY
STATE

Attend external events from technology partners to see

Team is focused on business partnering and the what tools are available and what other organisations
technology generates 80% of the reporting. Capacity built into the process (weekly, monthly, are using. 
CURIOSITY quarterly, etc.) to look for insights.
Sense of excitement to investigate data. Ask Experts for help. (Technology + Human > Technology
alone)

Challenge peers on financial and non-financial

Present peers and CIO with preferred solutions and
Take risks with new reporting and seek feedback from assumptions.
COURAGE options on new tools/systems.
stakeholders. Fail Fast – try a new forecast process. If it is superior use
Disrupt your own role with technology.
it and if not, try again.

Ensure new technology solutions are forward looking

CRYSTAL Align financial modelling of forward estimates and
80% of reporting and business partnering is forward and capable of integration. 
strategy with current financials.
looking. Look beyond what you can see. Do not wait for necessity
BALL Automate the consolidation of weekly forecasting.
to breed innovation.

Select processes to automate that support the business Pick and choose where technologies add more value.
Pick and choose where humans add more value i.e. strategy.
CLARITY storytelling. Outsource modlling where capability is not present
Request feedback from the business. internally or to keep up with analytical tool trends.

20
HOW | Unlocking The Future of FP&A

HOW do you intend

to transform
FP&A?
Here you can take notes on
your thoughts in the HOW

21
SO WHAT | Unlocking The Future of FP&A

The CFOs
Call To Action
It is up to senior leaders to It is time to start your five-step
Next, we need to upgrade our technology platform and
action the transformation capabilities. We cannot fulfill our vision with slow technology transformation plan!
that is error-prone, disconnected from the overall corporate
but here is how you get roadmap, and utilizes untrustworthy data.
Map the current state of your FP&A
started! department combining the mindset attributes
with people, process and technology.
All change management programs start at the top, We must challenge our current processes. Why are we doing
what we do? We do not want to simply automate bad habits.
Map your desired future state i.e. how would
and the CFO must champion the transformation.
you like your team to work in the future
Let us start with an ambitious vision to which the along the same dimensions.
FP&A department can aspire i.e. “Drive the right
Write a simple list of things your department
strategic choices in the company”. And what about the people? We need a new capability model will do differently post the transformation.
for FP&A professionals. One that is linked to the mindset but
Changing culture and expectations is hard; we drives us to learn concrete capabilities to deliver on the vision. Broaden the exercise to the whole
must get into people’s heads and make this a
department or as a minimum all leaders.
habit.
Gain commitment from everyone and write
To do this we need to address the mindset, people,
With a demand to learn new skills comes a need for training some questions that you will be asking
processes, and technology that drive FP&A’s and upskilling. Fear not the needed investment. Done well, yourself post the transformation. The answer
actions. the ROI will be sky high! to the questions should tell you if you are
First start with implementing a mindset of the 4 C’s. successful!

22
SO WHAT | Unlocking The Future of FP&A

Now you must start …of the value measured as Economic Profit created by companies globally
comes from 20% of the companies. Yes, the pareto principle applies here

80%
too! What is the secret sauce? The bad news? There is indeed a sauce
driving the right and a recipe for how to make it. The good news? Now the recipe is not a
secret anymore! Enough talking and planning. It is time to start actioning.
Here are some first steps you can take to get started on driving the right
strategic choices strategic choices.

Are you ready Revisit the latest strategy

of the company and see Do a competitor check. Are
Go back through the latest
quarterly accounts and see
to get going? if any real alternatives
where discussed. If not,
you moving ahead of them or
staying on par?
how many times questionable
provisions were either made
If not, here raise this point and suggest or released.

are some first

alternatives.

steps you can

take.

Create three years backward Revisit your latest resource Look at how resources are Start creating a context around
– three years forward looking allocation and see how resources currently spent and create performance and stop looking
view on your performance. It were allocated. Spread evenly a 20% list of how you would only at variance to budget.
will tell you where you are on across departments and initiatives free up resources to invest
your strategy delivery. like peanut butter or re-allocated in making your strategy a
to initiatives with high ROI? success.

23
SO WHAT | Unlocking The Future of FP&A

The final words About the author

It is all on you
The case for change should be clear by now and there The book is published by Anders Liu-Lindberg, a long-time
to get started! is a full transformation plan laid out for you. What is
stopping you from getting going?
finance blogger on LinkedIn with 45,000+ followers, co-author
of the book “Create Value as a Finance Business Partner”, and
currently COO and CMO of Business Partnering Institute.
There is no doubt that it is a significant undertaking
But do not forget that to succeed with such a transformation. However, you
Anders has ten years of experience working in various FP&A
related roles from global transport and logistics company Maersk.
many people around the must ask yourself what is the alternative?
Acknowledgements
world are ready to help Automation will only become a larger part of FP&A
taking over transactional tasks, reporting, business
you. intelligence, data management, etc. It will provide Anders is far from the only contributor to this book. There are
many whom a thanks is owed to!
self-service capabilities to senior leaders making the
“what happened” easily accessible. Special thanks should be given to Bryan Lapidus, FP&A, Director
of FP&A Practice at the Association for Financial Professionals
FP&A must step up the value chain and become a (AFP) and Tania Trifunoski, Head of FP&A Oceania at Gate
strategic partner to the C-suite and there is no delaying Gourmet Australia.
getting started! Thanks should also be given to…
I hope you have enjoyed this book and feel free to Lance Rubin • Ashish Pareek • Itamar Ahrenbeck • Will Barnes
reach out for a conversation around how to make the • Jesper Hybholt Sorensen • Sofia Papadimitriou • Robin Kiziak
transformation happen. • Jesper Martin Jensen • Luca De Angeli • Christopher Argent •
Rhondalynn Korolak • Mohamed ElRouby • Talita Ferreira • David
Ryan.
Anders Liu-Lindberg
+45 2926 6410 They all took part in co-writing one or more of the articles that
formed the basis for this book, and it would not have been the
[email protected]
same without them!
SO WHAT | Unlocking The Future of FP&A

SO WHAT will be
different when you
are done?
Here you can take notes on
your thoughts in the
SO WHAT

25
BPI at a glance
How BPI can assist on your journey

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Our passion finance community through business partnering.
and purpose

People Simple & practical Impact with you

HOW We understand Finance We make business partnering We work from the inside!
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What makes We understand People. apply. Impact is sustainable when we
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WHAT
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and conferences.
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proposition
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FBP Forum

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