December 2, 2022

December 2022 Newsletter

December 2022 Newsletter

Ralf VonSosen
December 2, 2022

As 2022 draws to a close we look at trends that are driving the FP&A space and the rare art of spreadsheet humor. We hope you find the articles and information below helpful.  

FP&A Trends in 2022

A survey by the FP&A Trends Group and FP&A Strategy Consulting of over 375 FP&A professionals highlights some trends across the globe in the FP&A field.

  1. 76% of FP&A teams are delivering strategic value (70% in 2021) and 72% offer effective business partnering (68% in 2021). 
  2. 16% of FP&A teams consider themselves to be high performing teams while, on the opposite end of the spectrum, 16% struggle to keep up with the work demanded from them. 
  3. Too much time is still spent (45%) on low value activities such as managing multiple spreadsheets and data validation. Whereas not enough time is available (33%) for high value activities such as scenario planning and change implementation. These numbers have not changed significantly over the last 4 years.
  4. Satisfaction in forecast accuracy declined sharply to 39% (down from 54% in 2021). We believe this is driven by the high levels of uncertainty and the fact that old forecasting techniques are no longer valid in an ever-changing environment. 
  5. 31% of respondents do not have a single source of data that everyone trusts. A single data source is a core requirement for successful planning yet many companies are still struggling with this. 
  6. 19% of all organizations use Cloud planning software solutions (+8% from 2021). Moving to Cloud solutions has many benefits including support for collaborative planning, standardization of plans, and the ability to implement driver-based planning at scale. An additional advantage is that it also provides a single source of truth for organizations that may not have strong data governance. This is why we believe moving to cloud-based software is so attractive. 
  7. 59% of organizations see Analytics expertise as the most sought-after skill in FP&A (+9% from 2021). The biggest skill gap in FP&A continues to be converting data into insight and action.

Webinar: From Number Crunching to Strategic Planning in 2023.

What separates today’s leaders in business planning and modeling from those stuck crunching numbers, copying and pasting spreadsheets, and recreating the same models again and again?

Register now Dec 14, 10am PST

Join us as we dive into what has allowed today’s leaders to transform their roles from number crunching into strategic modeling and planning professionals. We have organized the results of hundreds of customer interactions into seven key areas that can help you on your journey, no matter where you are today.

  • Speed is critical to creating business value.
  • Collaboration has to be part of the process.
  • Technology must be an enabler, not a barrier.

Spreadsheet Humor? There Is Such A Thing.

Although we may not associate spreadsheets, financial models, and business planning with humor, Scott Adams has proven that even here we can afford to laugh at ourselves. As is always the case, there is a kernel of truth in humor. See three lessons to keep in mind, as demonstrated by our friend Dilbert in one of our recent blog articles.

  1. An effective proposal or analysis requires a combination of elements.
  2. Insights are only as valuable as your ability to explain how you arrived at them.
  3. Differentiate between the messenger and the analysis.

Read the Full Article

Business Modeling 101 eBook

Business modeling was once centralized and reserved for a few experts who were building balance sheets, income statements, or cash forecasts. Today’s new business reality requires many more individuals within an organization to analyze, plan, and make data-driven decisions collaboratively.  

As data-driven decision making is expected and required in many business areas, it is imperative that more individuals are capable of building financial analysis models. By following some basic guidelines, creating effective models can be done by anyone with a deep understanding of business and knowledge of spreadsheet essentials.

This guide provides an overview to help anyone create more meaningful and impactful models that help make faster, better decisions. Click here to download your free copy today. 

Here is what you will find in our guide:

  • The Basics: organizing, standardizing, and iterating your model
  • The Design Phase: start with the end, and your audience, in mind
  • Managing Model Data: understand model inputs vs. model drivers
  • Telling Your Story: deliver meaningful outputs to your audience
  • Tips & Tricks: 11 ways to make modeling easier

The 5 Biggest Business Trends In 2023 Everyone Must Get Ready For Now

Read the full article here. Forbes, Bernard Marr

Businesses have faced huge challenges and have undergone an incredible amount of change over the past few years, and this won’t slow down in 2023. Businesses will have to deal with the aftereffects of the global pandemic, Russia’s invasion of Ukraine, economic challenges, as well as the ever-faster development of technologies.

  1. Accelerated digital transformation
  2. Inflation and supply chain security
  3. Sustainability
  4. Immersive customer experience
  5. The talent challenge