This article explains how a company or institution can identify the aspects of FP&A that can be outsourced, and desribes important considerations.
In the minds of industry executives, there’s no doubt that big data can be a powerful resource for predicting what content will succeed, and even for creating new content that has the attributes for success baked in. But all companies involved in making, selling, and promoting movie and TV content face a similar conundrum as they seek to combine new sources of data with primary research: how to harvest the unprecedented volume and richness of consumer data while separating out the noise, and how to use the insights to make content more compelling, reach desired audiences, and ultimately contribute to profitability?
There are significant changes in the role of the FP&A function, as it pivots towards a more predictive and analytical future, which will require internal cultural shifts.
Well, it was a long wait, but recently, I finally got to see the legendary rock band The Who on their 50th anniversary tour at Madison Square Garden in New York City.
What does your forecasting cycle look like?
There’s no question that a, if not the, principal role of the FP&A function is to produce meaningful information enabling enterprise managers to make fast, intelligent decisions. The ability to design reports
The budget cycle is often like the old game ‘telephone’ – you start at one point, but what comes out the other end is completely different. In the budgeting version of this you are asked at the beginning of the budget process to submit the budget for your center or department, only to see a completely different number at the end of the cycle.
For decades, financial managers have pieced together and manipulated spreadsheets in order to report on past data and maintain the financial integrity of their businesses. Sure, if they had time, they could use these primitive tools to attempt to identify trends and offer insights. But this effort was ridden with information silos, dirty data and outdated numbers.
Fortunately, times are changing.
The roles of today’s accounting professionals are being reinvented, requiring new skills far beyond audit, tax and compliance competencies.
The finance function is a key part of business strategy, but many professionals don’t learn the skills needed to develop strategy, inform decision making, or communicate with influence. “Accountant” remains one of the hardest jobs for employers to fill, and 50 percent of finance executives can’t find staff with the right skills. This talent gap is, in fact, a crisis.
This “Competency Crisis” has gone unsolved for decades, and it’s affecting businesses’ operations potential for future growth. The problem has been studied at length by academics and professional accounting organizations. A variety of factors, including a narrowly focused accounting curriculum and lack of on-the-job training, are part of the problem, but clearly, there is no silver bullet that will make accounting and finance professionals excel at a global level.
Financial planning and analysis (FP&A) teams are responsible for testing the viability of big ideas coming out of the C-suite. These professionals are being asked to understand key business drivers and perform predictive analysis. To enable innovation and smart decisions, they must focus on modeling and predicting options for resource allocation, growth investments, and risk management. Advanced financial analysts are already building, testing, and perfecting collaboration tools that enable scenario planning and what-if analysis that focus on forward-looking choices. So, what does it take to excel as an FP&A professional?