What is the best way to develop a corporate FP&A performance measurement and reporting strategy?

2 Define your objectives and KPIs

The next step is to define your objectives and key performance indicators (KPIs) for your FP&A function. Your objectives should be aligned with your overall corporate vision, mission, and strategy, and reflect the value you want to deliver to your organization. Your KPIs should be specific, measurable, achievable, relevant, and time-bound, and capture the critical aspects of your FP&A performance, such as accuracy, timeliness, efficiency, quality, and impact. You should also establish a baseline and target for each KPI, and assign roles and responsibilities for tracking and reporting them.

3 Select your tools and methods

Once you have your objectives and KPIs, you need to select the tools and methods that will enable you to measure and report them effectively. This includes choosing the data sources, systems, platforms, and software that will support your FP&A activities, such as budgeting, forecasting, modeling, scenario analysis, reporting, and dashboards. You should also decide on the methods and formats that will help you present and communicate your FP&A results, such as charts, graphs, tables, narratives, and visuals. You should aim for tools and methods that are reliable, consistent, user-friendly, and scalable.

4 Implement and monitor your strategy

The final step is to implement and monitor your FP&A performance measurement and reporting strategy. This means executing your FP&A processes and activities according to your plan, and collecting and analyzing your data and KPIs. You should also report and communicate your FP&A performance to your relevant stakeholders, such as senior management, business units, investors, and regulators. You should use your reports and feedback to evaluate your progress and performance, and identify any issues or risks that need to be addressed or mitigated.

5 Continuously improve your strategy

Developing a FP&A performance measurement and reporting strategy is not a one-time project, but a continuous process of learning and improvement. You should regularly review and update your objectives, KPIs, tools, and methods, based on your changing business environment, needs, and expectations. You should also seek to adopt best practices and innovations that can enhance your FP&A capabilities and performance. By doing so, you can ensure that your FP&A performance measurement and reporting strategy remains relevant, effective, and valuable for your organization.

6 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?