How FP&A Can Win Executive Friends, Influence Corporate Strategy, and Improve Shareholder Returns 40% By Doing What They Do Anyway WEBINAR Translating

How FP&A Can Win Executive Friends, Influence Corporate Strategy, and Improve Shareholder Returns 40% By Doing What They Do Anyway

WEBINARTranslating Finance to Strategy

Agenda

The Strategy – Execution GapFinance at the NexusCommon Challenges to FP&ATranslating Finance to StrategyCalculating the ROI

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Big thinking, marginal results

Most companies allocate the same resources to the same business units year after year. That makes it difficult to realize strategic goals and undermines performance. Source: McKinsey & Company study (2012)


Strategy and targets are usually not linked


Execution isn’t easy

Strategies are a lot easier to communicate than to execute


Agenda



Finance is expected to execute strategy

Here’s the Corporate Strategy

Context.Thanks. Great context for the

budget.


How do I translate this into budgets which maintain

continuity and fit into corporate targets?

We look for ways to reduce the gap

Source: Gartner/FERF presentation at FEI Summit Leadership Conference, May 2013

CFO’s Know Technology to Support Decision Making is Inadequate

Source: modified template from CPM Methods consulting engagement 2012


…So we revert to what we know

Agenda



Guidance is usually too limiting


Leadership

Business Units ---- Functions ---- Regions

Finance

Can you make me a slide that shows how this budget

reflects our strategic goals?

All budget requests should be within 3%

ExecutiveWhat’s the point?

Make guidance more specific


Data can be ambiguous


Leadership

Business Units ---- Functions ---- Regions

That’s okay, just do your best

How confident are you in this assessment of our corporate

goals?

“4” means higher than

average correlation

Here is our consolidated outlook…

“4” means strong

correlation

“4” means itis not a “5”

We’re not sure how to provide

scores to correlate with

corporate goals?

Minimize ambiguity; maximize the systemic


Circumvention is too easy

The gap makes it easier for strong business leaders to get supplemental budget, effectively widening the gap through end runs.


If I’m going to hit these revenue targets I need some margin

relief and more budget

I can probably find this in the corporate

pot somewhere

Make sure end runs can be put in context


“Improvements” are incremental

“Improved” Planning Tools, Business Intelligence Tools do not address the gap


Based on your improved analytics, here’s the new and improved corporate

strategy presentation

Thanks. Even better context for

the budget

Still not sure how I translate this into budgets which

maintain continuity and fit intocorporate targets?

Link strategic goals and budgets


Agenda



Bidirectionally translating finance and strategy


FPG is unique solution

ConstructLibrary

Dashboard/Scorecard

Modeling

Preconstructed Queries

BI, CPM, ERP Funding ProfilesFeature Function


Strategy Visualized

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There is a material impact on the bottom line


Using Funding Profiles helped us gain actionable insight into our strategic plan and helped us bridge our long-range plan with our operating budget.

Vice President of Finance and Investor Relations at Advent Software (NASD:ADVS)

Companies that evaluate the performance of business units, acquire and divest assets, and adjust resource allocations based on each division’s relative market opportunities will be worth an average of 40 percent more after 15 years.

A typical ROI case


Q & A

Thank You

Documents

How FP&A Can Win Executive Friends, Influence Corporate Strategy, and Improve Shareholder Returns 40% By Doing What They Do Anyway WEBINAR Translating