In partnership with
I had an opportunity to chat 1:1 with a multi-billion dollar CEO about his FP&A team.
He said something interesting that was shockingly similar to something I recently wrote about here…
A good finance team should move quickly to insert and resolve tension in the business
His point was the same, but he had a different emphasis that I found interesting.
Level 1: FP&A inserts and resolves tension
Level 2: FP&A quickly inserts and resolves tension
I hadn’t stopped long enough to consider that speed is such a prized quality and the next level of our FP&A skillset. But it makes sense the more I reflect on it.
Let’s talk about what that means and how to do it well…
Having a bias to action
I once heard about an FP&A manager who removed next year’s annual bonus expenses from their planning model because they didn’t want to have an uncomfortable conversation with the business leader about finding expense savings.
They were asked to push the business to find savings. Instead they simply removed the bonus $$ from the plan.
Problem solved!
Then next year in January when the bonus accrual was posted against a plan of $0, people quickly figured out what happened.
True story.
And that person got fired.
It’s a great example of the opposite of how FP&A should function.
The best FP&A leaders I know are able to digest news, form an action plan, test multiple options, and present a path forward…
And that CEO I mentioned earlier would add to the end of that list: … and move quickly.
As I’ve grown more experienced in my finance career, I’ve found the energy to move faster over time.
It’s not that I am actually faster at working now (I’m probably slower, honestly), but that I spend less time caring about what other people will think about me, especially when I’m delivering difficult news.
It’s the same issue I see in junior-level FP&A talent who is afraid to call out the poor result in the month to their business partner.
They are afraid of conflict and feeling that tension.
But don’t neglect your timing
But this part is critical…
There’s a difference between moving fast on something that requires speed - and moving fast on something that requires the right timing.
A great example of this is presenting analysis to senior leaders.
Often, it’s more important that the individuals are open to the insights and have a need/reason for them than it is that they get it as soon as it’s complete.
It’s a grey area for sure.
But if you constantly find that your insights are falling short and there seems to be something you’re missing - consider your timing.
Like a good jazz performer, you have to understand that there is risk in being too early as well as being too late. You need to find what jazz performers call the pocket.
It’s that perfect moment where your insights are the most powerful because they are attached to a pain/need.
It’s the same reason you get served the identical ad on instagram 100 times… they are waiting for that moment when you need the solution they are selling.
In summary, here’s how we can differentiate…
If there is a tension in the business that requires progress - it’s our job to unblock it as soon as possible so the business can move forward.
If there is a solution or insight but the problem isn’t yet felt - we should wait for the door to crack open before we present our path forward.
The key question to ask: is there already a strong tension in the business?
That will dictate which approach you take.
How we can help:
Build your own FP&A Operating System so you can drive more impact through a best-in-class FP&A process.
Looking to elevate your FP&A leadership skills? Steal our Finance Manager Playbook to help you drive a healthy, high-performing finance team culture.
Get step-by-step video instruction on designing your perfect FP&A Flywheel. It’s the exact process we use when transforming FP&A teams.
Brett Hampson, Founder of Forecasting Performance
