How can you use FP&A to differentiate your organization?

1 Define your FP&A vision and mission

The first step to differentiate your organization with FP&A is to define your FP&A vision and mission. Your vision should describe what you want to achieve with FP&A in the long term, while your mission should explain how you will do it in the short term. Your vision and mission should be aligned with your organization's strategy, culture, and values, and reflect your FP&A value proposition. For example, your vision could be to become a trusted business partner that drives growth and profitability, and your mission could be to provide timely, accurate, and relevant insights and recommendations.

2 Establish your FP&A processes and standards

The next step to differentiate your organization with FP&A is to establish your FP&A processes and standards. Your processes should define how you plan, forecast, analyze, report, and communicate your financial and operational results and scenarios. Your standards should specify the quality, consistency, and reliability of your data, models, tools, and outputs. Your processes and standards should be aligned with your FP&A vision and mission, and follow the best practices of efficiency, effectiveness, and scalability. For example, you could use a driver-based approach to simplify your planning and forecasting, or adopt a common reporting framework to ensure comparability and transparency.

3 Develop your FP&A capabilities and skills

The third step to differentiate your organization with FP&A is to develop your FP&A capabilities and skills. Your capabilities should include the technical, analytical, and business skills that enable you to perform your FP&A tasks and deliver your FP&A outputs. Your skills should include the soft, communication, and leadership skills that enable you to collaborate with your stakeholders and influence your decision-makers. Your capabilities and skills should be aligned with your FP&A processes and standards, and reflect the best practices of innovation, learning, and development. For example, you could use advanced technologies such as artificial intelligence or cloud computing to enhance your analysis and automation, or enroll in a professional certification or training program to update your knowledge and competencies.

4 Engage your FP&A stakeholders and customers

The fourth step to differentiate your organization with FP&A is to engage your FP&A stakeholders and customers. Your stakeholders are the internal and external parties that have an interest or influence in your FP&A activities and outcomes, such as senior management, business units, or investors. Your customers are the specific groups or individuals that use or benefit from your FP&A products and services, such as budget owners, project managers, or analysts. Your engagement should include the identification, segmentation, and prioritization of your stakeholders and customers, as well as the communication, feedback, and satisfaction of their needs and expectations. For example, you could conduct a stakeholder analysis to understand their perspectives and preferences, or create a customer journey map to improve their experience and loyalty.

5 Measure your FP&A performance and impact

The fifth step to differentiate your organization with FP&A is to measure your FP&A performance and impact. Your performance is the degree to which you achieve your FP&A objectives and deliver your FP&A outputs, such as accuracy, timeliness, or relevance. Your impact is the degree to which you contribute to your organization's outcomes and value creation, such as growth, profitability, or sustainability. Your measurement should include the definition, collection, and analysis of relevant indicators and metrics, as well as the reporting, evaluation, and improvement of your results and actions. For example, you could use a balanced scorecard to track your FP&A performance across multiple dimensions, or conduct a value-added analysis to quantify your FP&A impact on your organization's bottom line.

6 Showcase your FP&A differentiation and value

The final step to differentiate your organization with FP&A is to showcase your FP&A differentiation and value. Your differentiation is the unique and distinctive features or benefits that set you apart from your competitors or alternatives, such as expertise, quality, or innovation. Your value is the tangible and intangible outcomes or benefits that you create or deliver for your organization, such as efficiency, effectiveness, or alignment. Your showcase should include the communication, demonstration, and recognition of your FP&A differentiation and value, as well as the celebration, appreciation, and promotion of your FP&A achievements and successes. For example, you could use a storytelling technique to highlight your FP&A differentiation and value in a compelling and memorable way, or create a recognition program to reward and motivate your FP&A team and partners.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?