What are the current trends in Corporate FP&A?

Embracing these technologies isn't just about tools; it's a cultural shift demanding a nimble mindset. Successful integration aligns FP&A not just with tools and data, but with the strategic priorities of the business.

Digital transformation and tools are great to streamline processes. However, finance business partnering is essential to help drive inputs, assumptions, and key drivers to hit targets and manage stakeholder expectations, especially when comparing, measuring, and monitoring FP&A activities.

Corporate FP&A continues to evolve with a focus on advanced analytics, scenario planning, and integrated business planning. The COVID-19 pandemic has accelerated remote work, digital transformation, and the need for resilient supply chains, with a heightened focus on crisis management and contingency planning. Financial professionals are increasingly leveraging non-financial metrics, predictive analytics, and blockchain technology to enhance data-driven insights and collaboration across departments. Staying current through ongoing professional development and active participation in industry networks is crucial for navigating the complex and dynamic landscape of Corporate FP&A.

I think for effective data processing the problem commonly observed in managing large amount of large data. Data modelling can improved this process effectively.

Business Partnering is a very different skillset to how most finance professionals are traditionally trained. Most are trained to provide actual and budgets to senior management in reports that show everything. And point out areas of under performance and risk Business partnering is working cross functionally on solving problems where your partners already know what happened and are less concerned with monthly budget variances. Often it’s about exploring opportunities and requires a different communication style and approach

Business partnering is not only a rising trend but it is a necessity if business units and corporate wants to align goals and expectations. Working closely with business units, departments, function groups, and corporate can provide efficiencies, transparencies, and accountability for all parties that will drive up stakeholder value.

Being able to communicate and explain complex financial concepts in simple terms is crucial when you're a strategic partner. Anticipating the needs of your business partners and bringing insights to the table before they're asked for.

Scenario Planning is not about predicting the future, but preparing for different possibilities. You help business partners foresee risks, spot opportunities, and be ready with backup plans.

Effective scenario planning goes way beyond FP&A Teams. It is a key tool in supporting decision making, which requires cross-departmental collaboration - the end users of the information (for example, the decision makers) will often sit outside of finance. FP&A Teams can play a key role in ensuring the business utilises scenario planning effectively - but be sure to include all key stakeholders and end-users of the information throughout the process of design to implementation in order to really unlock its value! Almost every business I speak to is looking to scale up its capabilities in this area!

To keep the A-team, investing in training, coaching, and career development is a must. It's not just about attracting talent; it's about growing it. Encourage your team to ask questions, explore new ideas, and be innovative problem solvers. Pairing seasoned professionals with those starting their journey creates a knowledge exchange that benefits both sides. It's like passing the torch of wisdom.

Making sure different pieces of data talk to each other seamlessly is a challenge. Standardizing how data is handled ensures everyone is on the same page. It's like speaking the same language, making collaboration smoother.

As an SME in FP&A I can add the below points: - Adoption of advanced analytics and AI technologies 📈💻 - Increased focus on scenario planning and sensitivity analysis 🔄🔍 - Integration of non-financial data for comprehensive analysis 📊🔢 - Shift towards real-time and agile forecasting ⏱️📈 - Emphasis on data visualization and storytelling 📊📚 These trends are shaping the future of FP&A and helping businesses make smarter financial decisions.