A twenty-nine-year-old newly minted Financial Planning and Analysis (FP&A) manager for an NYSE-listed public company sat across from the CEO and CFO, utterly bewildered, as the CFO declared, “The most important position in my department is FP&A.” Five years later, when I heard another CFO say that the most important hire he made was his new FP&A Director, I wasn’t surprised.
To be frank, FP&A—often referred to as the new crown jewel of Finance and Accounting—isn’t exactly new. However, its focus has shifted. Instead of merely concentrating on compliance, controlling, and non-negotiable tasks, FP&A now emphasizes value creation through business partnering and technology. But have you ever stopped to consider what makes someone a world-class FP&A professional?
As a world-class FP&A practitioner, what do you see in the mirror? You’ll see a problem solver who isn’t afraid to get their hands dirty. Let’s break down some of the key characteristics that define a world-class FP&A professional:
Humility
A world-class FP&A professional knows the limits of their knowledge. They approach problems with an open mind, looking at the bigger picture without jumping to conclusions. Humility allows them to seek help, learn from others, and remain adaptable in the face of uncertainty.
Curiosity
Curiosity is the driving force behind innovation. A great FP&A professional has an insatiable hunger to know more, find better ways of doing things, and isn’t afraid to venture off the beaten path. They have the courage to ask “stupid” questions and challenge the status quo, which often leads to breakthroughs.
Grit
If there’s one universal trait among successful leaders, it’s grit. The ability to pursue a goal relentlessly, despite roadblocks and failures, is what separates the good from the great.
What if people wanted to peek into the minds of those who define the pinnacle of value creation in Finance? They won’t find a “Jack of All Trades.” Instead, they’ll discover a “Master of Many”—a harmonious balance between the left and right brain.
Customer Delight & Job to be Done
Gone are the days of hiding behind monstrous spreadsheets, compliance reports, and financial jargon. To be successful, FP&A professionals must understand the job they are fulfilling for their customers while providing strategic partnership to add value.
Think of FP&A as the Starbucks of Finance—a strategic advisor to the business. The C-Suite gets guidance, Commercial teams get insights into external customer financial portfolios, and Procurement gains visibility into vendor exposure.
Business & Financial Acumen
A world-class FP&A professional understands the value their business provides to customers and how it profits from it. They know how to tackle Porter’s Five Forces to keep the business profitable. They’re aware of external factors that drive demand for their company’s products, services, or experiences, as well as factors that affect the supply chain. For example, a drought in India could impact raw material prices, just as a competitor’s adoption of the same product could create an imbalance between supply and demand.
They also have a deep understanding of the three key financial statements—Income Statement, Balance Sheet, and Cash Flow Statement—along with specific metrics used to gauge business performance. At the end of the day, the goal is simple: bring in as much cash as possible (revenue) and keep outflows (expenses) to a minimum. Financial management principles ensure that decisions are fiscally sound and responsible.
Creativity, Storytelling, and Visualization
Once reserved for artists and writers, storytelling is now a critical skill for FP&A professionals. Combining the art and science of storytelling allows you to go beyond numbers. Mastering the visual arts helps you communicate your points more effectively and efficiently. After all, a picture is worth a thousand words.
But what are you trying to convey with those words and pictures? A story. Did you know that every story has a shape that can be illustrated on a graph? Kurt Vonnegut famously described this, with the Y-axis representing good fortune and ill fortune, and the X-axis representing time.
As a master storyteller, your goal is to immerse your audience in the story, moving them from their narrating self to their experiencing self. This is where they truly retain the essence of your message.
Data Wrangling, Modeling, and Statistics
Data is often referred to as the lifeblood of business, and no one knows a company’s data better than FP&A. However, with the growth in scale, size, and variety of data, relying solely on Excel’s “old-school data drudgery” can hinder growth.
A world-class FP&A professional is well-versed in ETL (Extraction, Transformation, and Load) processes and proficient in data modeling (which is different from financial modeling).
They also have a solid understanding of statistics to determine whether findings are statistically significant and to differentiate between causation and correlation. To make an impact with predictive and prescriptive analytics, they need to be conversant in advanced statistical techniques like MAPE, Regression, ARIMA, and more.
Collaboration & Communication
In today’s interconnected world, success is driven by high-quality, personalized relationships with customers and stakeholders. As the information gatekeeper of the organization, an FP&A professional must communicate effectively and efficiently at all levels of the organization. They are the nervous system of the company, ensuring that information flows smoothly.
One key skill to master before speaking is listening. By truly understanding the needs and concerns of others, you can provide more valuable insights and build stronger relationships.
Are You Already There?
If not, don’t worry. This blog is meant to give you a flavor of what it takes to develop a world-class FP&A mindset. The rest is up to you. Invest in the most guaranteed asset you have: yourself. Stay curious, keep learning, and never stop striving to be better.
Final Thought
The world of FP&A is evolving, and so should you. By embracing humility, curiosity, grit, and a blend of business and financial acumen, you can become a strategic partner who drives value creation. Combine this with storytelling, data mastery, and effective communication, and you’ll be well on your way to becoming a world-class FP&A professional.
So, what are you waiting for? The mirror is waiting for you to take a look.
