Financial Planning and Analysis (FP&A) is a crucial part of any successful business. It provides an overall view of the company’s financial performance and helps to identify areas for improvement.
Often hailed as a “recession-proof” corporate function, FP&A delivers strategic analyses to senior management. In contrast to simple finance business planning, FP&A works at a higher strategic level (versus more operational or tactical approaches).
What does this mean for companies? That stakeholders are directly involved, which leads to longer-term tangible results.
As an FP&A professional, it’s important to build strong relationships with all stakeholders: internal customers, vendors, and business partners, to ensure that the company is running as efficiently and profitably as possible.
But how can you guarantee that you are an irreplaceable asset to your business partners? In this article, we will explore exactly how to be irreplaceable with FP&A business partnerships.
Uncovering opportunities for strategic growth and contribution
One of the most important things you can do to be an irreplaceable asset to your business partners is to uncover opportunities for strategic growth and contribution.
This can be accomplished through a thorough assessment of the current financial situation. Are there areas of the business that could be improved or streamlined? Are there any areas of the company that are not adequately represented in the financials?
By understanding the company’s financials, you can identify areas of potential growth and contribution. This can include identifying new markets or products, streamlining processes to save costs, and implementing new technologies to improve performance.
You can also use this opportunity to assess how the company’s current financial performance compares to industry standards and trends. This can help you identify areas of improvement and areas of potential growth–all while staying aligned with the company’s key objectives and staying abreast of market downturns.
In addition to uncovering opportunities for strategic growth and contribution, another way to be an irreplaceable asset to your business partners is to provide financial guidance and insight.
This involves providing up-to-date financial information, such as monthly and quarterly performance reports, benchmarking against industry averages, and providing detailed analysis of the company’s financials.
Being able to provide this information and analysis in a timely and accurate manner is invaluable to business partners. It helps them make better decisions and be more informed about the company’s financial performance.
Recession-proof your FP&A team: providing strategic value
A strategic FP&A team will always be a valuable asset for any business. In times of economic uncertainty, businesses need to be able to rely on their financial data and analysis to make decisions that will ensure the long-term survival and success of the company.
In order to recession-proof your FP&A team and make sure you are an irreplaceable asset to your business partners, you’ll need to be able to provide timely, accurate, and actionable insights.
This means having the right technology in place, such as forecasting and budgeting software, and the right team of experts who are able to interpret the data and provide recommendations. However, to save costs, maintain quality, and develop a comprehensive plan for disaster recovery via forecasting and scenario planning, your FP&A team should also be able to provide a holistic view of the company’s financial performance and identify key areas for improvement.
Taking the initiative: earning a seat at the table with FP&A business partnerships
One of the most successful ways to be an irreplaceable asset to your business partners is to take the initiative and earn a seat at the table.
This means that you will need to be proactive in understanding the company’s financial performance and be able to provide insights that your business partner may not have considered.
In order to do this, you need to first understand the company’s financial performance in depth. Developing a strong understanding of the financials can help you to identify potential areas for improvement.
You should also be aware of the company’s KPIs, or key performance indicators, and be able to make recommendations on how to improve performance in these areas–which are some of the key finance business partnering step-by-steps to build strong relationships with both stakeholders and other departments.
Additionally, understanding your company’s competitive landscape can help you to identify opportunities that your business partner may not have considered.
Establish yourself as the org’s secret competitive advantage
Finally, in order to be an irreplaceable asset to your business partners, you have to establish yourself as the organization’s secret competitive advantage.
You must be able to provide your business partners with data-driven insights that will help them to make informed decisions.
You should also be able to provide detailed financial analyses of the organization’s performance and be prepared to provide your business partners with recommendations based on your findings.
By taking the initiative and earning a seat at the table, you can become an irreplaceable asset to your business partners. In doing so, you can ensure that your organization remains competitive and profitable in the long term.
Here at Pigment, we’ve built our offerings around three main goals for your company:
- For you to have to do less grunt work
- For your teams to be aligned (goodbye, silos!)
- For you to avoid surprises through careful planning and predictions
Our team comes from a diverse range of backgrounds and top companies such as Google, Facebook, Atlassian, Criteo, Datadog, Aircall, Payfit, and Anaplan–just to name a few.
The result? Actionable high-level strategy and continuous planning that works to extend your cash runway, help you dream bigger, and, of course, make your company become irreplaceable in your chosen market.
By investing in your FP&A team, you create an environment where your profitability’s full potential is unlocked. If your organization is forward-thinking, we provide the expert guidance you need to help you get the most out of your data. Book a demo today to get started.