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JPK
Gro
up
Business Forecasting & Analytics ForumSeptember 18-19, 2017 • Chicago, IL
FP&A: Creating Value through Insight
September 19, 3:30 pm
View presentation online at: https://jpkgroupsummits.com/attendee1/
Presenter: Matt Borneman – AIT Worldwide Logistics
Leverage financial planning & analysis to provide true business impact
Matt Borneman is Director of Financial Planning and Analysis at AIT Worldwide Logistics, Inc. where he leads the FP&A team and Business Intelligence projects. Prior to joining AIT, Matt spent several years in a variety of Planning & Analysis leadership
roles at FedEx, Texas Instruments and Tribune Company. In those roles he developed expertise in Dashboard and KPI development, Financial Modeling and Budget Process Improvement. Matt has a BBA in Finance from the University of Georgia and MBA from
the University of Georgia Terry College of Business.
FP&A: Creating Value Through Insight
Leveraging financial planning and analysis to provide
true business impact
– A little about me and how I’ve seen FP&A change
– The transformation of FP&A at AIT aligning business to the data and translating strategy into action
– Some key success factors in your FP&A Journey
– Q&A
About Me
20+ years in Corporate Financial Planning & Analysis
• MBA University of Georgia
• Texas Instruments
• FedEx
• Chicago Tribune
• NPD Group
• AIT Worldwide
How has the FP&A world changed since the mid-90’s?
The expectation today is that FP&A is a key business partner
– not just a producers of reports.
Monochrome Terminal / Mainframe
3 Monitors / 4-5 programs
openCloud
Transparencies PowerPoint Mobile
Offshoot of the Accounting
Team
FP&A as an “entity”
Business Consultants
Reporting
Tools
Status
How do we get to be Key Business Partners?
Flex with the changing role of FP&A
Have the right Team
– Hire and Train world-class talent with solid analytical skills, keen
understanding of the industry and economic environment
Provide useful Data
– Sources
– Accuracy
– Single version of the truth
Build Partnerships
– IT
– Ops
– Accounting
How do we get to be Key Business Partners?
Be effective analysts
– Add value in everything we do
– Provide forward-looking forecasting and analysis
– Apply the 80/20 rule
– Understand priorities
– Flexibility
– Adaptability
Gain trust to get buy-in
– Confidence
– Understanding the big picture
– Build relationships in the organization
Ultimately, the goal is Actionable Decision Support
Actionability
Detail AccuracyTimeliness
FP&A at AIT Worldwide Logistics
Our FP&A Mission Statement
The AIT Worldwide Logistics Financial Planning & Analysis team adds value as
a Business Partner to AIT leadership by utilizing best practices in financial
planning, modeling, and analysis to grow profitability and improve cash flow for
the long term success of the business.
We partner with Executives, Operations and Sales as business consultants to
understand and interpret the Key Drivers of the business and utilize technology
in order to achieve results.
AIT FP&A Road MapGOAL
Automated reporting on Key Drivers and 75% of time spent on Decision Support Analysis
Year one
Shore-up reporting; data integrity; report accuracy; simplification; budget education; building
credibility through timeliness and accuracy
Year two
Leverage the Enterprise Data Warehouse; develop Data Warehouse reporting working closely
with Ops, Sales and Corp Fin; Budget and Rolling Forecast firmly indoctrinated into AIT culture
Year three
FP&A as Business Partner; FP&A is the bridge between Operations and Finance; FP&A are the
go-to experts for data analytics
Reporting Goals
Current State
Too many sources; multiple versions of “the truth”
GOAL
• Simplify by eliminating redundancies and ensuring accuracy
• Reduce reports while increasing actionable information
From:
“BIC”, “DSA”, “SPA”, “BIO” and thousands of emailed reports
To:
Enterprise Data Warehouse with ~20 Power BI Reports
Analysis Goals
Current State
Very little analysis
GOAL• FP&A will take a disciplined approach to routinely identifying and diving into top
opportunities for revenue growth, expense savings and working capital improvement. FP&A’s focus will shift to providing decision support intelligence and providing guidance to improve cash flow.
• Developing and Leveraging the Data Warehouse will be key to our success
• FP&A must own the direction of report development based on our knowledge of business needs
Planning Goals
Current State
Budgets that may or may not get used
GOAL
• As business partner to Operations executives, FP&A will become intimately involved
in the strategic planning process. We will be indispensable as consultants in helping
develop business plans and analysis for new services and station performance,
including ROI analysis on proposed new stations and existing stations.
• By year three, FP&A will lead the planning process
• Involved in ongoing meetings involving business decisions
Planning Goals: Tie Budget to Strategy
Participate in the Strategic
Planning Process
Build Budget Assumptions
Build Budget/Forecast
model
Get input and approval
Track progress against Strategic
Objectives
We will know we are succeeding when:
1. Financial and operational data is not only trusted but utilized to
grow the business.
2. FP&A is seen as indispensable business partners rather than
report generators.
3. Everyone is on the same page. Executive team, Steering
Committee, Station management and Corporate Finance utilize
the budget and forecasts as essential in reporting.
We will know we are succeeding when:
4. Station Managers and Department Heads know their financials
and key drivers; they know the levers towards more profitable
growth and are working towards it based on data provided by
FP&A. Department heads and Station Managers are held
accountable for attaining budget goals.
5. Budgets and Forecasts are in place and utilized in reporting and
analysis. They are linked to objective setting, translating the
organization’s strategy into action
6. SG&A Expenses flex on revenue fluctuations.
How are we doing?
• Transitioning from traditional P&L’s to PowerBI based
Reports
– PowerBI is used as a conversation tool to tell a story
– “On the fly” comparisons of regions, etc. with ability to drill
down as needed
– No more hours pulling together presentations in PowerPoint
– Focus is now on understanding the content, not creating the
content
$$.$M
goals
$$.$M
goals
$$.$M
goals
$$.$M
goals
Daily Sales Activity Reporting
• DSA in BIC to DSA in Power BI – added vertical markets,
products, International vs. Dom, and several other
attributes
• Ties to our strategy of growing our Air and Ocean
Business
• More Visual
• Mobile-ready
The old DSA report provided limited info
The New DSA : more info, more visual
Are we there yet?1. Data is not only trusted but utilized to grow the business.
2. FP&A is seen as indispensable business partners
3. Everyone is on the same page.
4. Managers know their financials are held accountable
5. Budgets are linked to objective setting
6. SG&A Expenses flex on revenue fluctuations.
Becoming a Key Business Partner is a journey, not
a destination
Where are you on the Insights Pyramid ?
Insights
Analysis
Reporting
A recent study by CEB
(now Gartner) suggests
poor-quality and average
FP&A seeks to provide
definitive answers to
specific questions.
Counter-intuitively, poor
analysis is marked by such
seemingly admirable traits
as technical rigor and data
precision
Data into Insights: Be Problem Focused
Data into Insights: Be Problem Focused
CEB offers the following advice to improve FP&A Team
performance:
• Outline the implications of analysis beyond the near
term.
• Draw attention to relevant scenarios.
• Collaborate with business partners on interim analyses.
• Provide a holistic picture of alternatives and
uncertainties.
• Help decision makers understand unforeseen tradeoffs.
• Get the business to think of what could go wrong early.
Learn to be a Story Teller
As an FP&A professional it is now imperative to become a good story teller
Here are five books recommended to learn the power of storytelling:
1. The Storytelling Animal: How Stories Make Us Human by Jonathan Gottschall
2. The Story Factor: Inspiration, Influence, and Persuasion through the Art of Storytelling by Annette Simmons and Doug Lipman
3. Writing for Story: Craft Secrets of Dramatic Nonfiction by Jon Franklin
4. Resonate: Present Visual Stories that Transform Audiences by Nancy Duarte
5. Made to Stick: Why Some Ideas Survive and Others Die by Chip Heath and Dan Heath
Recommended by Jesse Scinto, a presentation consultant at Propoint who works with leading organizations, including the United Nations. He teaches The Critical Mind and Dynamics of Persuasion at Columbia University’s School of Professional Studies.
Turning Data into Insights
“Imitation is the sincerest form of flattery.”- Charles Caleb Colton
• Develop solid presentations skills
• Research the best presentation tools for your business
• “Steal” good ideas for report layouts and graphics
• Get buy-in for your ideas and SELL them
• Don’t give up – it’s a journey
Wrapping Up
• Keep up with changes in
– your company
– your industry
– the FP&A world
– the data world
• Don’t provide data - Tell a Story
Questions?