Finance Transformation Themes from the IE FP&A Conference in Boston

After attending our amazing, sold-out Future of Finance Tour session in Minneapolis earlier this week, I swung out to Boston attend a chunk of the IE Groups’s FP&A Summit.

I had some great conversations with delegates and attended several interesting sessions.  Transforming finance was, as expected, a big theme.  Here are some of things I heard:

  • Old-school finance used to say, like a TV anchorperson, “we don’t make the news, we just tell you about it.”  This finance-as-spectator role is passé.
  • We need to transform FP&A from the engine room for report production — “here are the variances, don’t ask us about them” — to an active role in working with the business.
  • FP&A needs to no longer be the data crunchers, but insight providers who can tell the story in the data.
  • Finance needs to engage with the business.  Interact with them.  Sit with them.  Ask them.  Iterate with them.  Financial processes (e.g., forecasting) are inherently iterative and require finance to interact with subject matter experts (SMEs).
  • FP&A needs to challenge the conventional wisdom or common knowledge about the business.  It’s amazing how often common rules of thumb (e.g., which products are profitable and which aren’t) simply aren’t true when you dive into the data.
  • Finance should be more focused on having a seat at the table than knowing what the table cost and how far it is into its depreciation cycle.
  • “I spent years leveraging my ‘CPA’ doing copy / paste / attach from Excel spreadsheets into board books and presentations.”
  • While overuse of Microsoft Excel is definitely part of the problem, Excel is also definitely part of the solution.   “There are over 1,000 person-years of Excel experience in this (not very big) room.  You can’t throw that out.”
  • “I fell out of bed knowing how to do that in Excel.”
  • In leveraging technology for FP&A the cloud is now a given — five years ago that was not the case.

And the old classic, which I really believe in:  finance needs to focus on becoming a business partner to the CEO and the business.

It was a great conference and I’m glad I stopped by.

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