FP&A TIPS
Extended Planning & Analysis (xP&A)
The Evolution of Financial Planning & Analysis
Jamie-Lee Salazar
Co-founder & CEO of Cobbler
In the business world, change is constant. To keep up with the competition and stay ahead of the curve, organizations must continually evolve their strategies and operations. One area that has seen a lot of change in recent years is financial planning and analysis (FP&A). In this blog post, we will discuss extended planning and analysis (xP&A), a crucial evolution of FP&A that aligns operational planning with financial planning and performance measurement.

    What is extended planning and analysis (xP&A)?

    xP&A, often referred to as extended planning and analysis, is not a new concept, but rather an extension of FP&A principles in other areas of the business, such as supply chain, marketing, workforce, sales, and IT.

    This approach is necessary in today's business environment because it allows organizations to integrate data, plans, forecasts and business units into a single strategy. Instead of thinking about finance and operations as separate, we are seeing them as interconnected. As a result, xP&A is capable of transforming both financial and operational planning while also improving your bottom line.

      Benefits of xP&A

      There are many benefits of extended planning and analysis, but here are three of the most important:

      xP&A creates transparency by providing visibility into all areas of the business. This level of transparency is essential for making informed decisions that align with the company's goals and objectives.

      xP&A fosters collaboration by breaking down silos between departments. When everyone is working together towards the same goal, it becomes much easier to achieve success.

      xP&A increases alignment by ensuring that all plans are in sync with each other. This helps to avoid duplication of effort and ensures that everyone is working towards the same goal.

      If your organization is not already transitioning to extended planning and analysis, now is the time to start. The benefits of this approach are too great to ignore. By implementing xP&A, you will be able to improve your financial and operational planning while also increasing transparency, collaboration, and alignment across your organization.
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