In today's business world, a career in Financial Planning and Analysis (FP&A) is more critical than ever. Nowadays, FP&A professionals need to do more than just crunch numbers; they need to think ahead and help guide their companies through the ups and downs.

This need for forward-thinking finance experts is growing, thanks to technology that changes how we work and think about business. Carl Seidman, the founder of Seidman Financial, is a key voice in this field. His firm helps companies build strong FP&A teams by developing their skills, leadership, and strategy.

In this article, based on insights from Carl, we'll look into what makes a successful FP&A career today. We'll cover everything from the essential technical skills to the soft skills that are just as important. We will learn why being good with numbers is just the start; communicating well and thinking strategically is also crucial. We'll also explore how technology is reshaping FP&A roles, making them more about strategic advice than ever before.

For anyone looking to start or advance their career in FP&A, the insights from Carl Seidman are invaluable. Let's dive in and see what it takes to excel in FP&A today.

The Evolution of FP&A Career and Its Future Direction

Financial Planning and Analysis (FP&A) relies on teams with the right technical skills to meet various demands. These teams predict the company's future needs and questions. They blend financial insight with a deep knowledge of all company areas, including:

• Marketing

• Operations

• Sales

• HR

This diverse knowledge allows them to support many departments with critical analysis.

Technology's Role in Shaping FP&A Career

In the last ten years, the FP&A landscape has drastically changed. Today, FP&A professionals act as junior CFOs equipped with a broad understanding of the business.

This change owes much to technology, which has provided new tools for better efficiency. It's a shift from the old ways of spreadsheets to more strategic, business-oriented tasks. Technology underlines the growing strategic value of analysis in the modern business world.

FP&A: From Past to Present

• Past Focus: Originally, FP&A had a backward-looking approach, mainly focusing on budgeting, forecasting, and reporting.

• Present Approach: Now, a forward-thinking and flexible approach is critical. The field demands various skills, varying by company, due to different operational focuses and technological tools.

Career Progression in FP&A

Expectations for FP&A professionals to engage in high-level strategic thinking and understanding of business operations are reaching individuals earlier in their careers. This shift is particularly noticeable in smaller companies, where roles can be more varied and encompass broader responsibilities.

In contrast, larger corporations might have roles focused on specific aspects of financial statements, reflecting the diverse nature of FP&A across different company sizes.

Enhancing Communication Skills in FP&A Career

Effective communication is crucial for success in any field, especially in Financial Planning and Analysis (FP&A). It's not just about conveying information but connecting with people on an emotional and intellectual level.

Engaging in various forms of communication, including improv comedy and public speaking clubs like Toastmasters, can significantly enhance one's ability to speak persuasively and empathetically. Such experiences help refine the art of communication, making complex financial concepts understandable and engaging to a wider audience.

The Importance of Feedback

Seeking feedback is essential for growth as a communicator. Practicing presentations in diverse settings, from formal clubs to informal groups, is important to gain varied perspectives.

Constructive criticism helps identify areas for improvement that the speaker may not notice. Embracing feedback with humility and openness allows for continuous enhancement of presentation skills.

Simplifying Messages for Greater Impact

One common challenge for professionals, especially in technical fields like FP&A, is the tendency to overcomplicate messages with details. Learning to simplify messages without losing their essence is crucial.

This skill enhances clarity and ensures that key points resonate with the audience, regardless of their background in finance. Focusing on the bottom line up front (BLUF) and condensing lengthy presentations into concise, impactful messages can significantly improve communication effectiveness.

Practical Steps for Better Communication

1. Participate in Public Speaking Clubs: Joining clubs like Toastmasters provides a platform to practice and receive feedback in a supportive environment.

2. Engage in Improv Comedy: This unique form of communication sharpens the ability to think on one's feet and connect with audiences on a more human level.

3. Seek Constructive Feedback: Ask for and apply feedback from diverse audiences to uncover blind spots and refine messaging.

4. Simplify Your Message: Learn to distill complex information into clear, concise, and compelling presentations. Practice reducing hour-long presentations to essential messages that can be delivered in a fraction of the time.

5. Understand Your Audience: Tailor your communication style and content to meet the audience's needs, focusing on what they need to know rather than what you want to tell.

So, becoming an effective communicator in FP&A involves continuous learning, practice, and adaptation. It requires honing one's ability to analyze and present financial data and developing the soft skills necessary to connect with and influence diverse audiences.

The journey to improving communication skills is ongoing, but with dedication and strategic practice, it's possible to make significant strides in becoming a more impactful speaker and leader in FP&A.

The Art of Presentation and Influence in FP&A Career

A compelling presentation is not just a final step in sharing an analysis; it's a critical component of professional credibility. Even with exhaustive and accurate analysis, the presentation's quality can significantly impact the perception of your work and ideas.

The analogy of serving a gourmet dish in a greasy paper bag highlights the importance of presentation aesthetics and structure. It's not just what you present but how you present it that counts. An outstanding presentation can enhance the reception of an idea, sometimes more so than the analysis itself.

The Power of Influence

Influence extends beyond the confines of a well-crafted presentation. It encompasses the ability to connect with your audience on a level that transcends the immediate content of your communication.

To influence effectively, one must shift focus from self to audience, understanding and prioritizing their needs, expectations, and preferences. This empathetic approach to communication ensures that your message is heard and resonates deeply with those you aim to influence.

Practical Steps for Enhancing Influence

1. Shift focus to the Audience: Begin with an audience-centric mindset. Consider their needs, perspectives, and how they might best receive and process your message.

2. Engage in Open Dialogue: Directly ask your audience about their preferences and expectations. This tailors your presentation more closely to their needs and builds rapport and trust.

3. Master Your Medium: Whether presenting in person, via a webinar, or through a written report, proficiency in your chosen medium enhances the effectiveness of your message.

4. Consider Pre and Post-Presentation Interaction: Effective communication involves more than the presentation itself. It includes how you introduce your ideas beforehand and follow up afterward.

5. Continuous Learning and Adaptation: Influence is a skill honed over time through practice, feedback, and a willingness to adapt your approach based on audience response.

Anticipation: A Key Skill in FP&A Career

Anticipating future scenarios and planning for various outcomes is crucial in FP&A. It's about being prepared for disruptions, whether predictable or unforeseeable black swan events.

Effective anticipation allows an organization to remain agile, swiftly making informed decisions to handle the challenges successfully.

Scenario Planning and Management

• Regular Scenario Analysis: Engage in continuous scenario planning to prepare for various potential business impacts, from minor disruptions to major crises.

• Focus on Ramifications: Consider the implications of disruptions on different aspects of the business, such as sourcing, volume, and timing. This approach ensures comprehensive preparedness.

• Collaborative Strategy Development: Work across departments to develop strategies that mitigate risks identified through scenario analysis. This fosters a culture of readiness and resilience.

Enhancing presentation skills and the ability to influence is indispensable for FP&A professionals aiming to ascend in their careers.

Coupled with the ability to anticipate and plan for future scenarios, these skills equip professionals to lead with confidence and strategic foresight, ensuring their organizations are prepared for opportunities and challenges.

A New LinkedIn Learning Course for Professionals in FP&A Career

A new LinkedIn Learning course titled "Excel for FP&A" offers financial planning and analysis professionals a valuable resource for enhancing their Excel skills. This 2.5-hour course, developed in response to numerous requests for specialized FP&A training, fills a critical gap in available resources.

It provides practical techniques, tips, and applications that can be immediately implemented, regardless of company size or industry.

Course Highlights

• Immediate Applicability: The course emphasizes techniques, tips, and applications that can be quickly integrated into daily FP&A tasks, ensuring participants can implement what they learn without delay.

• Versatility Across Company Sizes: The strategies and skills taught are universally applicable, regardless of an organization's size or industry. This universality makes the course beneficial for a wide range of professionals.

• Integration with Other Platforms: Beyond Excel mastery, the course explores how Excel interacts with other technological platforms. This segment is crucial for professionals looking to streamline their workflow by integrating Excel with other tools for enhanced functionality.

• Focus on Strategic FP&A Functions: By honing technical skills in Excel, the course allows FP&A professionals to free up time for more strategic tasks. This shift enables a stronger focus on intelligence, anticipation, and influencing decision-making processes within their organizations.

Essential Skills for FP&A Professionals

The course reaffirms the critical nature of Excel in the FP&A profession while acknowledging its limitations. It guides learners in maximizing Excel's utility by integrating it with other technologies, thus broadening their analytical capabilities.

By mastering Excel and complementary tools, FP&A professionals can significantly improve their efficiency and impact, allowing them to devote more resources to forward-thinking and strategic business aspects.

Conclusion

In conclusion, the FP&A career has evolved significantly, with technology, strategic anticipation, and enhanced communication skills playing pivotal roles. These elements shape a professional landscape where FP&A experts are not just number crunchers but strategic advisors akin to junior CFOs.

Mastering tools like Excel, engaging in continuous learning, and honing presentation skills are crucial. Moreover, the ability to effectively communicate and influence decision-making sets apart top performers in the field.

As FP&A continues to adapt to the demands of a fast-paced business environment, professionals equipped with these skills will lead their organizations toward a successful future. This comprehensive approach ensures that those pursuing an FP&A career are well-prepared to meet and exceed the challenges and opportunities that lie ahead.

FAQs

How do I know if FP&A Career is right for me?

Consider your interest in financial analysis, forecasting, and strategic planning. Assess if you enjoy working with numbers and have a passion for problem-solving.

What are the key technical skills needed for a successful FP&A career?

Proficiency in financial modeling, data analysis, budgeting, forecasting, and proficiency in financial software such as Excel, Tableau, or ERP systems.

What are the typical career progression paths in FP&A?

Career paths may include roles such as Financial Analyst, Senior Financial Analyst, FP&A Manager, Director of FP&A, and Chief Financial Officer (CFO).

How important are soft skills in FP&A, and which are most valued?

Soft skills like communication, critical thinking, problem-solving, adaptability, and leadership are highly valued as they complement technical expertise and enable effective team collaboration.

How can I network effectively within the FP&A community to advance my career?

Join professional organizations like the Association for Financial Professionals (AFP) or FP&A Club, attend industry events, and connect with professionals on platforms like LinkedIn to expand your network.