Special teams - A new way to deploy FP&A has been saved
Special teams - A new way to deploy FP&A
In this issue of CFO Insights, we pose the question: What are the driving forces behind so many CFOs switching to a new FP&A model?
Technological innovations and increasing business expectations are creating an inflection point for finance, planning, and analysis (FP&A). Many CFOs may soon have to make a choice: adopt a new model that expands the function's strategic role, or reduce its footprint as predictive analytics and other value-added capabilities migrate to front-line business units.
To date, the experience of companies with more mature FP&A functions suggests that CFOs are choosing the former approach. As finance departments explore ways to partner with the business, the FP&A function is emerging, in many cases, as the pointy end of the spear. Its routine work—budgeting, planning, and associated reporting—is increasingly being automated, freeing up resources that can support or even lead to more valuable work, by providing insights on everything from supply chain and pricing strategies to product and customer analysis.
While many FP&A functions have been evolving in this general direction for some time, the impact of several technologies, from robotic process automation (RPA) to natural language generation, predictive analytics, and a range of self-service and mobile applications, is now so profound that the time may be ripe for senior finance leaders to think beyond mere evolution. In this issue of CFO Insights, we pose the question: Is it time to emulate what some leading organisations are already doing, and envision a new operating model for FP&A—one that dramatically elevates its contribution to the organisation?
Read more about:
- Driving forces to consider new FP&A models
- Possible FP&A structures
- Three levers toward enhancing the FP&A function and moving it a new model
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