What are the most effective ways to measure your FP&A team's performance?

1 Align with strategic objectives

The first step to measure your FP&A team's performance is to align it with the strategic objectives of your organization. Your FP&A team should have a clear understanding of the vision, mission, goals, and priorities of your business, and how their work contributes to them. You should also establish key performance indicators (KPIs) that reflect the desired outcomes and impact of your FP&A activities. These KPIs should be SMART (specific, measurable, achievable, relevant, and time-bound), and aligned with the financial and non-financial metrics that matter to your stakeholders.

4 Develop and retain talent

The fourth step to measure your FP&A team's performance is to develop and retain the talent and skills that are essential for your FP&A work. You should ensure that your FP&A team has the right mix of technical, analytical, business, and communication skills, as well as the relevant industry and functional knowledge. You should also provide your FP&A team with opportunities for learning, growth, and career advancement, such as training, coaching, mentoring, and recognition. You should also foster a culture of collaboration, innovation, and accountability within your FP&A team and across your organization.

5 Benchmark and innovate

The fifth step to measure your FP&A team's performance is to benchmark and innovate your FP&A work against the best practices and standards in your industry and domain. You should compare your FP&A performance with your competitors, peers, or industry benchmarks, and identify any gaps or opportunities for improvement. You should also explore new ways to enhance your FP&A work with emerging technologies, methodologies, and trends, such as artificial intelligence, machine learning, cloud computing, and agile frameworks. You should also experiment and test new ideas and solutions that can add value to your FP&A work and your organization.

6 Align with stakeholder expectations

The sixth and final step to measure your FP&A team's performance is to align it with the expectations and needs of your stakeholders, such as senior management, board members, investors, customers, and regulators. You should understand what your stakeholders expect from your FP&A work, such as accuracy, timeliness, relevance, and clarity. You should also communicate and demonstrate how your FP&A work supports and influences their decisions, actions, and results. You should also solicit and respond to their feedback, suggestions, and concerns, and build trust and rapport with them.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?