Many CFOs are basing their strategies for growth on innovation and agility. So how can FP&A help drive better results? “Greater agility,” according to a recent study by the Hackett Group. FP&A teams need to develop new competencies in strategies like advanced analytics and talent development in order to help management make the right business decisions.
Six ways FP&A groups can execute on this decision-support role:
By helping companies identify and prioritize opportunities that would yield the most impact. That means applying more sophisticated analysis to surface actionable results, but also being able to share the results effectively with senior management.
By improving internal processes and adopting better technologies. This way, finance is free to focus on value-add work rather than punching in numbers.
How to get started:
According to the Hackett Group, there are three steps finance can take to achieve these and other improvement goals.Ensure goals and objectives are clear for everyone in the finance team, to help change the finance department’s culture.
Develop a vision and connect the dots between FP&A and the business. “Emphasize the importance of matching business needs and being flexible and adaptable as key capabilities,” the report noted.