The most common responses to the question I posed in my survey reveal that tightening up some organizational processes and procedures may be all that is needed to allow FP&A teams to do their jobs more effectively. 

See if any of these ring true for your organization. If so, I’d be happy to talk with you more about what challenges your business is facing when it comes to getting the most impact out of your FP&A team.

1. Time-consuming processes don’t allow for time to be spent on what really matters.

It’s necessary to have some processes in place to ensure that information doesn’t get lost and that tasks get done in an orderly manner. However, too many processes, especially time-consuming ones that take away from FP&A’s primary function, can lead to bottlenecks.

The FP&As in my network expressed that they’re spending way too much time in meetings and managing the mechanics of updating and rolling forward models for new data. This leaves them less time to focus on analysis and gaining insights that can help them provide more value to the business.

2. Inability to react quickly

Unfortunately, the first complaint leads to this second one, which is an inability to react quickly because there is a lack of driver-based planning. When FP&As are focused on time-consuming processes and activities, they are unable to plan. And when they can’t plan, they lose the ability to react quickly.

3. Disconnected data and version-control issues that lead to inefficiencies

This next problem is one of growing pains. As companies grow in size, reach, and complexity, they start installing new software platforms, hiring new people, and integrating new processes. As a result, FP&A teams end up with disconnected data and version control issues because there isn’t a single source of truth.

4. Ineffective tools and processes that reduce FP&A accuracy

Of course, because much of what FP&A does is based on data, having disconnected data leads to inefficiencies and other problems. Many great tools are available to help FP&As and organizations as a whole gain valuable business insights.

However, there isn’t any single tool that can provide all the insights a company needs. So, it’s important for organizations to ensure all their tools and processes are integrated as much as possible so that FP&A can access accurate data quickly and effectively.

5. Lack of organizational partnership approach

FP&A is not a “back office” support function like accounting can be. Instead, it needs to operate holistically in partnership with departments across the business. This challenge requires a fundamental shift in how the organization approaches the FP&A function and will require organizational leaders to acknowledge the critical role that FP&A plays in building and developing a business strategy.

6. Poor forecast performance measurability and accountability

It’s important for FP&A to be involved in forecasting and projections across the business. Those forecasts and projections should involve input and insight from departmental leaders. Without a culture that prioritizes embedded accountability, FP&A teams will likely experience poor forecast performance measurability and accountability.

7. Lack of effective scenario planning and ability to act quickly

This encompasses and builds on the challenges outlined above. When issues such as time-consuming processes, disconnected data issues, and ineffective tools are not addressed, the company is not positioned to handle what can happen in the future. This is why a lack of effective scenario planning negatively impacts FP&A’s ability to act quickly.

8. Lack of upskilling opportunities

Across organizations of all sizes, it’s becoming apparent that there is a need for professionals who possess not only financial skills but also analytical, strategic, critical thinking, and organizational skills.

Many FP&As are frustrated that their company does not offer or provide opportunities for them to upskill their talents so they can bring more to their roles and add more value to the organization.