Skills You Didn't Know You'd Need in FP&A
FP&A TIPS
Jamie-Lee Salazar
CEO & Co-founder of Cobbler
"If you can help a business partner get promoted, it's a good sign that the work you do is accelerating the company forward."
When most people think about the typical FP&A analyst, some stereotypes come to mind. They expect the person to be:
- Analytical
- Detail-oriented
- Good with numbers
- Financially conservative
- Great at Excel
While these skills have their place, the folks who really thrive in FP&A— those who continuously get promoted—fit a slightly different profile.
Here's what CFO's and other finance leaders rave about when they talk about their favorite employees:
Empathy
Put yourself in your business partner's shoes. If you don't know their line of business well, ask questions. Many analysts don't want to bother executives by asking too many questions, but the better you understand their function, the better you'll be able to do your job. What do they do? What does their team do? How are they thinking about growing their team? Why? Look at the biggest items they're spending money on. Why are they choosing to allocate funds on those things? How does what they do tie into the broader company strategy? What are some of the biggest challenges they face? What would it take for them to get promoted?
Why this matters: Yes, this will help you build a better model and make strategic recommendations; but more importantly, understanding your business partners' goals and helping achieve them can make a noticeable impact on the organization. If you can help a business partner get promoted, it's a good sign that the work you do is accelerating the company forward.
Here's what CFO's and other finance leaders rave about when they talk about their favorite employees:
Empathy
Put yourself in your business partner's shoes. If you don't know their line of business well, ask questions. Many analysts don't want to bother executives by asking too many questions, but the better you understand their function, the better you'll be able to do your job. What do they do? What does their team do? How are they thinking about growing their team? Why? Look at the biggest items they're spending money on. Why are they choosing to allocate funds on those things? How does what they do tie into the broader company strategy? What are some of the biggest challenges they face? What would it take for them to get promoted?
Why this matters: Yes, this will help you build a better model and make strategic recommendations; but more importantly, understanding your business partners' goals and helping achieve them can make a noticeable impact on the organization. If you can help a business partner get promoted, it's a good sign that the work you do is accelerating the company forward.
"Some of the best FP&A analysts know how to develop a story that not only educates but influences decision-making."
Storytelling
Go beyond the numbers to interpret data into insights. Weave in facts, context, and recommendations that connect data to the big-picture business strategy.
Why this matters: Your business partners and senior leaders often either a) don't have time or b) don't have the skills or knowledge to fully digest financial reports. They're looking to you to call out the headline and key takeaways for them. Some of the best FP&A analysts know how to develop a story that not only educates but influences decision-making.
Go beyond the numbers to interpret data into insights. Weave in facts, context, and recommendations that connect data to the big-picture business strategy.
Why this matters: Your business partners and senior leaders often either a) don't have time or b) don't have the skills or knowledge to fully digest financial reports. They're looking to you to call out the headline and key takeaways for them. Some of the best FP&A analysts know how to develop a story that not only educates but influences decision-making.
"Finance can have the reputation of being a department of 'No,' but the most successful people in FP&A find ways to embrace and build on others' ideas."
An Open-Mind
Explore ideas from business partners with an open mind and a "Yes, and…" mentality. Think outside of the box to find interesting solutions to business problems.
Why this matters: Finance can have the reputation of being a department of "No," but the most successful people in FP&A find ways to embrace and build on others' ideas. Often, there is more than one solution to a business problem, and incorporating ideas from those who think differently can level up your recommendations and have a multiplier effect on a line of business. Bringing an open-minded style to your interactions also empowers and enables your business partners.
News junkie
Keep up to date with the news impacting your business, industry, and geography. Use what you learn to help you get ahead on scenario analysis. Create best-case and worst-case scenarios for specific situations that could arise.
Why this matters: Staying up to date on current events can give you an edge when creating a forecast and help the organization better prepare for potential changes. We saw this with a handful of forward-looking FP&A leaders when COVID hit. There were people who were surprised by it and others who saw the trends and immediately started building scenarios. (See how one head of FP&A approached the problem in "How FP&A Forecasts the Unexpected.")
Explore ideas from business partners with an open mind and a "Yes, and…" mentality. Think outside of the box to find interesting solutions to business problems.
Why this matters: Finance can have the reputation of being a department of "No," but the most successful people in FP&A find ways to embrace and build on others' ideas. Often, there is more than one solution to a business problem, and incorporating ideas from those who think differently can level up your recommendations and have a multiplier effect on a line of business. Bringing an open-minded style to your interactions also empowers and enables your business partners.
News junkie
Keep up to date with the news impacting your business, industry, and geography. Use what you learn to help you get ahead on scenario analysis. Create best-case and worst-case scenarios for specific situations that could arise.
Why this matters: Staying up to date on current events can give you an edge when creating a forecast and help the organization better prepare for potential changes. We saw this with a handful of forward-looking FP&A leaders when COVID hit. There were people who were surprised by it and others who saw the trends and immediately started building scenarios. (See how one head of FP&A approached the problem in "How FP&A Forecasts the Unexpected.")
"By automating reports, so that everyone has data that's easy to digest at their fingertips, finance can use their time to focus on helping their business partners with true analysis and strategy rather than just cleansing and delivering reports."
Embrace automation
Put a process in place, so that your business partners have the data they need when they need it. Embrace systems like Cobbler that automate basic FP&A reporting and facilitate financial collaboration within your organization, making it easier for you and your business partners to work together seamlessly.
Why this matters: Most finance teams only report out to a small number of people in the business and only on a monthly or quarterly basis. Instead of using time with business partners to focus on strategic planning, meetings often turn into tactical data reviews. By automating reports, so that everyone has data that's easy to digest at their fingertips, finance can use their time to focus on helping their business partners with true analysis and strategy rather than just cleansing and delivering reports.
Schedule a demo to see how Cobbler can help FP&A with automated reporting and financial collaboration.
Put a process in place, so that your business partners have the data they need when they need it. Embrace systems like Cobbler that automate basic FP&A reporting and facilitate financial collaboration within your organization, making it easier for you and your business partners to work together seamlessly.
Why this matters: Most finance teams only report out to a small number of people in the business and only on a monthly or quarterly basis. Instead of using time with business partners to focus on strategic planning, meetings often turn into tactical data reviews. By automating reports, so that everyone has data that's easy to digest at their fingertips, finance can use their time to focus on helping their business partners with true analysis and strategy rather than just cleansing and delivering reports.
Schedule a demo to see how Cobbler can help FP&A with automated reporting and financial collaboration.