Building a Strong Finance Function from Scratch: A Simple Guide for Finance and Business Leaders.

Day 17/30

The conversation between Consultant Iwelabi and his client continues:

Client: Good Morning, Oga Iwelabi. I trust you are good today? I have limited time, thus, I hope we can cover the rest of what I need on building out the team this morning?

Iwelabi: Good Morning, Chief. Very well. We should get to it already.

Iwelabi: For the FP&A (Financial Planning & Analysis) Manager, he or she is going to be a critical player in your finance team, especially when it comes to making strategic business decisions. Often considered the company’s business partner across various departments, the FP&A Manager provides valuable financial insights that help drive business performance and optimize the firm’s financial health. With a focus on both strategic planning and tactical execution, this individual plays a pivotal role in forecasting, budgeting, and financial analysis while collaborating with department heads to ensure the company stays on track with its financial goals.

Key Responsibilities:

Financial Analysis and Reporting: This person is tasked with providing comprehensive financial analysis and detailed reports on key performance indicators (KPIs), enabling the executive team to make well-informed decisions. They also create internal reports that provide strategic insights into how different business units are performing.

Optimizing Assets and Investments: The FP&A Manager identifies opportunities for optimizing the company’s assets and investments. By analyzing current resource allocations and exploring potential opportunities, they guide the business towards maximizing its returns.

Budgeting & Forecasting: A crucial part of the FP&A function is working alongside various departments to create accurate budgets. The FP&A Manager leads the effort to consolidate these budgets and ensure that the company has a clear financial roadmap for both the short and long term.?

Building & Maintaining Financial Models: The FP&A Manager constructs detailed financial models and forecasts, leveraging historical data to predict future financial performance. These models are essential for scenario analysis and for guiding strategic decisions within the firm.

Collaborating with Business Units: One of the FP&A Manager’s most important roles is acting as a business partner to other departments. By working closely with department heads, they help them project their likely revenue and expenses and provide strategic guidance on how to improve financial outcomes.

Improving Forecasts & Processes: Beyond their analytical duties, the FP&A Manager is responsible for continuously improving the financial forecasting process. By reviewing forecasts generated by FP&A analysts and suggesting refinements, they ensure that the company’s financial outlook remains realistic and aligned with business goals.

Required Skills & Capabilities:

Strong Analytical Skills: The FP&A Manager must have an exceptional ability to analyze financial data and use it to provide actionable insights. This includes reviewing performance metrics, conducting variance analysis, and building detailed financial models that guide decision-making.

Budgeting & Forecasting Expertise: Having deep experience in budgeting and forecasting is essential for this role. The FP&A Manager needs to be able to create and refine budgets for different departments and develop forecasts that accurately reflect the company’s financial outlook.

Process Automation & Data Analysis: In today's finance world, technology plays a crucial role in automating routine tasks and providing real-time data analysis. The FP&A Manager must leverage technology to streamline processes, making them more efficient and scalable as the business grows.

Communication & Collaboration: Because the FP&A Manager partners with multiple departments, strong communication skills are key. They need to explain complex financial concepts in simple terms and ensure that all business units are aligned with the company’s financial goals.

Leadership Skills: The FP&A Manager is not just an analyst but also a leader. They are expected to mentor junior team members, build a cohesive team, and drive improvements in processes and financial models. Leadership capabilities, such as decision-making, strategic thinking, and team management, are essential for success in this role.

Iwelabi: Both associates will serve as key support for these leads:

The Financial Controller’s associate will assist with tasks such as reconciliations, tax filings, payables, and general ledger proofing.

The FP&A associate will help with budgeting processes, forecasting, and providing analysis that aids in business decision-making.

Lastly, Make sure you’re selecting individuals with the right mix of technical knowledge and the soft skills necessary to work well in a dynamic team. And, of course, ensure they are aligned with the growth and strategic goals of the company.

Client: Wow! This is really helpful and gives me a clearer direction. I should go ahead and start advertising for the roles.

Iwelabi: Hmn. Like I said, you need not advertise. Just give me the go-ahead and I’ll send you at least 15 solid CVs from Mentorship Corner International that you can pick your team from.

Client: True o! Thanks for your kind gesture once again, boss.

Iwelabi: You are welcome.

Cheers,

#Iwelabi.