The Financial Control Tower

When it comes to FP&A, I think of it as the Financial Control Tower . No, FP&A doesn't "control" every department, but it does have an elevated perspective that allows it to see the full landscape of the company.

The Beating Heart of the Company

Imagine FP&A as the beating heart of an organization. Just as the heart pumps blood to various organs in the body, FP&A circulates crucial financial and operational data to different departments.

This data flow helps each function perform optimally, ensuring the overall health of the company. I shared this exact concept in my contribution to the white paper "How FP&A Can Become a Better Business Partner". You can get the whitepaper and others here: https://lnkd.in/e8qiXqA9

Two-Way Information Flow

The heart doesn't just send blood out; it also receives it back from other organs.

Similarly, FP&A doesn't just report on information. It's also a receiver of financial intelligence. It gathers data from various departments, whether it's sales metrics, operational KPIs, or financial schedules.

This two-way exchange makes FP&A a central hub for decision-making.

Facilitator of Data Exchange and Support

FP&A at midsized companies and large corporations plays a vital role in facilitating the exchange of data and financial information. It supports functions across the company. This is why you often see FP&A and data science teams working hand-in-hand.

It's not uncommon to see FP&A entrenched into other functions like marketing, pricing or even human resources.

Abdul Kamara asks, "What top 5 skills besides accounting would you say are critical for someone wanting to be a versatile cross-sector CFO?"

It's important to recognize that there may be a big difference between someone starting out in their career, someone in the middle of their career, and someone in the c-suite.

Finance leaders are not just great at technical skills; they've mastered critical and strategic thinking. They're excellent communicators and can connect with financial and non-financial people alike. They possess stellar business acumen -- including institutional and sector familiarity -- so that they know how their company sits within the larger environment. They know what peers and competitors are doing. They have a degree of training and mentorship ability, guiding the next level of managers and directors so they can step into their own leadership.

This is all very different from someone starting out, right? At the outset of a career, it's vital to develop a strong work ethic, excellent technical skills, and professionalism. I kind of hate to say it, but they're being hired to do a job, not to lead a company.

As someone progresses through their career, they'll be tasked with higher-level mandates, building a team, supervising others, and delivering on larger projects. In that role, they'll need to master the technical skills, not just be able to do them. That means they'll need to really sharpen the saw across a number of different skill domains and be able to train others. They'll be supervising others and delegating work to them.

Notice how these last few statements lend themselves to the future in financial leadership. Over many years, an FP&A analyst moves through these domains of development to become an FP&A manager, then an FP&A director, and finally a CFO. This isn't merely something you train for—it's an evolution that takes place through experience.

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?Do you have a burning question you want answered? Send a message and share it with me, along with the name you want to use (real or online pseudonym is fine). I'll answer it in an upcoming edition of The Statement.

Upcoming Webinars

Collaborative Workforce Planning: Uniting HR and Finance for Business Success

?? Tuesday, April 23

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Are you ready to take your workforce planning strategy to the next level?

The traditional boundaries between HR and Finance are fading away. Collaboration between these two departments is now more critical than ever to drive strategic alignment and achieve organizational goals.

Join us for an insightful live conversation with industry experts Carl Seidman, FP&A Advisor and Principal at Seidman Financial, Jane Watkins, VP Finance at CloudSense, and Melissa Dreith, Chief People Officer at Planful. They’ll provide you with invaluable insights into the transformative potential of workforce planning.

Here’s what you can expect:

• Gain insights into the the roles of HR and Finance in driving workforce planning success
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Enduring business growth comes from strong financial strategy and execution. This course makes the complexity of FP&A remarkably simple.

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Date & Time: April 22, 29 and May 6, 13, 20 at 9 am - 1 pm CST

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How can I help you?

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Just like the heart keeps the body alive and kicking, FP&A fuels our company's success by keeping information flowing and decisions sharp. Remember, every figure tells a story, and every strategy shapes our future. Stay sharp and monitor those financial metrics closely to guide your company to new heights. For more insights, follow me on LinkedIn .

Until next time,

Carl