An in-depth look at FP&A-related topics that are developed via interviews with finance professionals. Presented as quarterly case studies with practical applications and tools to help you make informed decisions about key FP&A methods.
The FP&A Maturity Model
The 2024 AFP FP&A Maturity Model serves as a roadmap for immediate improvement in FP&A, preparing teams for future shifts while defining FP&A roles and enhancing value delivery to the business.
This updated model provides a framework for excellence, reflecting the evolving role of technology and reinforcing the CFO function’s core priorities. It outlines clear pathways for FP&A to deliver greater impact and stay agile in a changing financial landscape.
- How to Use This Model
- Finance and Financial Processes
- Technology and Data
- Personal and Team Effectiveness
DOWNLOAD THE MATURITY MODEL
HOW TO USE THIS MODEL
The maturity model is designed to be both easy to use and rich in detail. The image below shows how the model works. As you move from left to right, the delivery of the service becomes more advanced. As you move from top to bottom, you will see the why, what and how of the service being delivered.
FINANCE AND FINANCIAL PROCESSES
FP&A plays a crucial role in applying financial acumen and processes to allocate capital effectively and support strategic decisions aligned with corporate risk appetite. When executed well, these processes support adaptability and continuous improvement; when poorly executed, they hinder progress.
TECHNOLOGY AND DATA
The AFP FP&A Maturity Model defines key functional requirements for Integrated Planning, Analytics and Reporting, all underpinned by Data Management. While specific tools like enterprise performance management (EPM) systems now offer integrated capabilities across these areas, the model takes a function-based approach rather than a tool-specific one, addressing planning, reporting and analysis needs individually.
PERSONAL AND TEAM EFFECTIVENESS
As computing costs fall and technology use expands, it’s futile to “compete” with technology. Instead, we should focus on complementary skills that add value. This perspective encourages FP&A professionals to cultivate uniquely human skills that complement high-tech advancements.
DOWNLOAD THE MATURITY MODELPublished November 5, 2024