FP&A Transformation Talks
Anders Liu-Lindberg
Leading advisor to senior Finance and FP&A leaders on creating impact through business partnering | Interim | VP Finance | Business Finance
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The time is ripe to unlock the new potential of Financial Planning and Analysis. FP&A is at a sweet spot for real transformation, and it’s up to finance professionals to take the lead and own the changes to come.
This is not simply a matter of digitizing processes or adopting new technologies, although these are tools of the trade and form a crucial part of the roadmap for change. Real transformation alters our behaviors and our culture and steers us on a new course towards greater success.
The great transformations of history have shaped the finance profession. When steam engines replaced horsepower, visionary industrialists had to collaborate to realize their lofty goals. A new structure, the corporation, was created to manage the financing of the railways and distribute profits to the stakeholders.
Fast forward to the 1970s and the arrival of accessible computing power. The first killer app, the digital spreadsheet, changed the culture of the accounting profession and the behavior of finance professionals and gave us the tools for rapid and effective planning and analysis. FP&A was born in the fires of transformation and continually evolves to stay relevant.
Leading the way
In the same way that 19th-century industrialists transformed business and created new corporate structures to realize their vision, the finance function can lead the journey towards a new vision for financial planning and analysis.
The last two years of disrupted lives have been a training ground for transformation, and FP&A is at the head of the field to benefit. Finance has a great reputation for delivering despite sometimes being hampered by older “just good enough” systems and low investment priorities. Processes pivoted in response to Covid, a Black Swan event that stretched FP&A to the limits and threw its transformation needs into sharp focus.
It’s time to seize the day. This is the moment for finance professionals to take the baton of transformation and run with it, leading the race to the next level and unlocking the value potential of FP&A.
Unveiling the new vision for FP&A, by FP&A
Finance professionals are ideally placed in the business to maximize the success of the FP&A transformation strategy. We hold a unique place in every organization with a holistic view of operations, a seat at the decision-making table, and strong relationships with peers in every function. To achieve a genuine and valid transformation, the vision must be shared both within FP&A and throughout the organization. Communication, collaboration, and trust at the highest levels are essential in taking the whole business along for the transformation ride. After all, the roadmap for transformation benefits everyone, taking FP&A from an inward-looking culture to one that faces its customers and delivers on their needs.
Success also depends on a team that is ready to make meaningful and effective changes. Consider the FP&A team of the future. What does it look like? How can it operate in an Agile way to best serve its customers? This team must have the wherewithal and skill to go beyond strategy to action, stay abreast of developments in the profession, and adopt the best and latest tools to deliver on the promise of a transformed Finance Planning and Analysis function.
Finance has the authority and the responsibility to ensure that the roadmap for FP&A transformation is adopted and the strategy executed, achieving maximum value for the business and its stakeholders. The new vision for FP&A is at our fingertips, an evolution whose time has come.
Now it's time to evaluate where your FP&A team is at today. Is it delivering tangible business value or simply reporting on the past? Transformation is upon us and we must showcase that FP&A can be a difference-maker in the company!
This was the first article in my series "FP&A Transformation Talks". While you await future articles in the series you can read my latest series "Unlocking the unfair advantage of FP&A" below.
Recommended by LinkedIn
You can read a lot more articles about FP&A, Business Partnering, and Finance Transformation below. It all start's with “Introducing The Finance Transformation Nine Box” where you set the ambition for your transformation. You should join the Finance Business Partner Forum, which is part of the Business Partnering Institute's online community.
The ultimate guide to decision-making for finance professionals (the last article in a series about the decision-making process and how Finance should impact it).
The Mindset Change Checklist For Finance Professionals (the last article in a series about the mindset change that finance and accounting professionals should make to become business partners)
It's Time To Decide If You Want To Be A Business Partner (the last article in a series about the personality traits of business partners)
All Successful Business Partners Are "Leaders" (the last article in the series about our new capability model)
Should We Keep Talking About Business Partnering? (part of a 17-article series where we deep-dive on the WHY, WHAT, and HOW of business partnering by putting it on a formula)
Everyone Can Adopt A Business Partnering Mindset (part of a six-article series about FP&A Business Partnering)
From Business Partner To Working Within The Business (part of an article series where I interview finance professionals about their careers in FP&A and Business Partnering)
Is Your Product Optimized For Value Creation? (part of a toolbox series where we look at what tools FP&A professionals should leverage to drive value creation)
How Business Partners Turn Analysis To Insight (part of case study series where I interview business partners about how they drive value creation using real cases)
Anders Liu-Lindberg is the co-founder and a partner at the Business Partnering Institute and owner of the largest group dedicated to Finance Business Partnering on LinkedIn with more than 10,000 members. I have ten years of experience as a business partner at the global transport and logistics company Maersk. I am the co-author of the book “Create Value as a Finance Business Partner” and a long-time Finance Blogger on LinkedIn with 65.000+ followers and 140.000+ subscribers to my blog. Recently I became an advisory board member at Born Capital to help identify and grow the next big thing in #CFOTech.
🏠 Streamlining repairs, increasing rental income & driving compliance for social housing providers.
2y‘This is the moment for finance professionals to take the baton of transformation and run with it, leading the race to the next level and unlocking the value potential of FP&A.’ Couldn’t agree more Anders! Where do you hope FP&A will be in 3-5 years?