Most CFOs are not happy with their Financial Planning and Analysis process and often ask what best practices are in FP&A.
The Institute of Management Accountants (IMA) and Lawrence Stevens developed a survey that more than 700 organizations around the globe participated in. What made this survey different was the approach it took. Previous research focused on a particular methodology, then worked backward to find success stories. The IMA survey instead focused on what the most successful organizations are doing differently from everyone else when it comes to FP&A. These successful organizations consistently meet or exceed their targets, and they consistently meet or beat their competition. Hard to think of a single CEO who wouldn’t crave those results (which, by the way, guarantee their bonus). These most successful organizations tell us that their Financial Planning & Analysis process:
• Drives Shareholder Value (or business value if privately held)
• Drives execution of the strategy
• Provides the mechanisms to ensure the financial and operational goals of the organization ar achieved
• Builds organizational awareness of the strategy and each department’s role in achieving it
• Ensures the optimal allocation of resources
• Ensures coordination of initiatives, projects and programs