We believe the role of CFO will remain as the steward of company capital, and FP&A will retain its mission of supporting business decisions by allocating capital to its best use. AFP’s FP&A Guide to Career Pathing provides a look at the skills that will be required to do that.

AFP sees a few trends as the apex of the maturity model that define the trajectory of skills. FP&A operates in an environment where data is often accessible and unstable, often characterized by the VUCA acronym. Therefore, we need the skills, tools and methods to handle multiple points of view simultaneously.

FINANCE & BUSINESS ACUMEN  

In the area of finance skills, we see a greater need to recognize that multiple outcomes are possible, and that single point estimates of forecasts and valuations do not capture the universe of outcomes. FP&A help the organization create strategic alignment from these unknowns by applying tools that allow for multiple views.

Next, finance processes need to incorporate this multiplicity of views:

Recent crises show that events of high impact and low likelihood can happen quickly. Finance can respond by increasing its monitoring and preparation for different outcomes, and speeding its reaction time. All the items on this page show a different mindset, a recognition that we do not have certainty in what will happen. Instead, we need flexibility to respond quickly, and we need optionality to pivot to a different plan. We also need the supporting systems and data structures to do so.

TECHNOLOGY & DATA SETS

FP&A needs access to high quality tools, and the supporting processes, to manage its data. Bridging the gap between skills and tools are statistics. Statistical tools are gaining in importance as the volume, variety and velocity of data increases. These capabilities are built into spreadsheets, EPM tools, reporting software, and business intelligence packages at rates of increasing sophistication. If we are not using these tools, then we are sub-optimizing. If we are using them incorrectly, then we are in danger of drawing false conclusions.

It is cliché yet critical to say that we need a single source of truth. More insightfully, we have a structural problem: we need input from many people and other systems, but financial data ties to the general ledger and operational data ties to transactional systems. Until a company bridges that data chasm, FP&A will constantly spend time reconciling data. AFP research shows that from 2010 to 2019, FP&A spend three quarters of its time gathering and manipulating data. Yes, the flow of data increased, but the tools did as well. This puts a premium on skills of data gathering and data preparation, including building databases, writing queries, managing automation “bots” and work flows.

PERSONAL & TEAM EFFECTIVENESS

Multiple points of view are reflected in the PATE skills required as well. For finance people that means hiring for and cultivating flexibility, adaptability and curiosity. FP&A should hire people with a wide skillset to be able to adjust to changing conditions. Interview questions might include, “Tell me about a time that your office faced a significant change in process, structure, technology, leadership, etc. How did you respond?”

A resilient team includes diversity of professional and personal backgrounds, skills and personality traits. You may need expert modelers and strong partners, people who can read contract and electrical wiring diagrams. Can you find that all in one person?

With all the ambiguity, it is possible to create paralysis through analysis, so you need people who can work with others or independently to push through ambiguity. “Good hires are the ones with the determination and desire to GSD—get stuff done! Require your team to challenge you (respectfully), and think about what skills you may lack that you need to fill through your team,” advises Johnnie Goodner, Vice President of Finance and Treasurer, KidKraft, Inc.

For more insights, download the FP&A Guide to Career Pathing.