5 Ways To Gamechange FP&A’s Impact in 2022

Can you see the invisible financial KPIs that can grow or kill your company?  Financial planning and analysis (FP&A) is the only function capable of getting a comprehensive view across all departments. FP&A’s job is extremely time-consuming because of departmental silos, and different KPIs.  FP&A needs to work smarter and align with various key C-level […]

Can you see the invisible financial KPIs that can grow or kill your company? 

Financial planning and analysis (FP&A) is the only function capable of getting a comprehensive view across all departments. FP&A’s job is extremely time-consuming because of departmental silos, and different KPIs. 

FP&A needs to work smarter and align with various key C-level execs to forecast an accurate, holistic, actionable view of a company’s financial future. 

Building mission-critical total financial understanding can be very labor-intensive (especially if you don’t have a cloud-based system like ForecastEra’s Revenue Forecast Navigator). Here are the steps you need to take.

  1. Get buy-in from the top. Explain to stakeholders throughout your company how creating holistic understanding by unifying data will generate greater collaboration across the entire organization.
  2. Listening tour: Even if you have a cloud-based system that breaks down the data silos, it helps to actually go to each department, and you know, really talk to people. Like in olden times. Start with simple questions like “what number do you look at when you first get to your desk?” Don’t assume that they think the same way you do.
  3. Designated drivers: What are the KPIs? In order to build trust for your FP&A forecasts, you need to include the relevant KPIs that different departments track. You need to make sure that you are all looking at the same KPIs and the most relevant KPIs for each department. In some cases, some departments may be driven by issues that don’t show up in spreadsheets like supply chain delays that are not mentioned in many dashboards but have an outsized impact on the entire operation.
  4. WARNING: “Inefficient processes” may be a sign of your lack of understanding: If there is an outsized investment in an area that you think should be optimized, there’s probably something you’re missing. Dig deeper.
  5. Check your work: Once you’ve documented your view of how the department operates, show them your work to verify. 

Next, you need to learn how to turn insight into action. Dashboards show you where you are but FP&A forecasts need to be like GPS, showing you where you want to go. We’ll deal with this in the next forecasting blog.

If your company uses Salesforce and needs help turning all that data into actionable insight for revenue forecasting, contact us. We can help. 

ForecastEra’s Revenue Forecast Navigator is the missing component that turns Salesforce into a true forecasting engine. Schedule a demo to see what we can do for you.

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