Best Practices FP&A Learn Series - Part IV: A Case Study in Best Practice FP&A
Watch now Part IV of our Learn Series to discover the 12 Principles of Best Practice FP&A
This final wrap-up to the 12 Principles of Best Practice FP&A series will cover real-life examples of how organizations are applying the principles to drastically improve FP&A processes.
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The first five Principles are designed to provide a firm footing for FP&A and establish high functioning FP&A.
Principle 1: Translate strategy into actionable plans
Principle 2: Identify resources needed to deliver projects, meet plan results, and build those resources into the budget
Principle 3: Document how operational plans will drive financial results and monitor the progress of those plans
Principle 4: Get the story behind the numbers (the business reasons for the variance to plan)
Principle 5: Promote agility -- take action when falling behind financial or operational goals
Building a Culture of Accountability
The next three Principles are designed to help foster a culture of accountability.
Principle 6: Cascade both financial and operational goals
Principle 7: Hold people accountable for delivering financial results
Principle 8: Hold people accountable for delivering operational results
Taking FP&A to the Next Level
The last four Principles are designed to help take FP&A to the next level by focusing on business drivers and integrating them into FP&A.
Principle 9: Identify what drives success in the business and develop measures for those drivers.
Principle 10: Establish long term and shorter targets for the drivers.
Principle 11: Develop initiatives and projects to achieve the targets.
Principle 12: Monitor results and tie them to incentives
Lawrence Serven - Author of 12 Principles of Best Practice FP&A
Lawrence is an internationally recognized subject-matter expert on Financial Planning and Analysis (FP&A) and Enterprise Performance Management (EPM). He is the founder and former CEO of XLerant, Inc., a leading EPM software company.
He is also the author of the 12 Principles of Best Practice FP&A and Value Planning: The New Approach to Building Value Every Day (J. Wiley & Sons).