“CIOs need to take a through-cycle view and stay committed to broader transformation goals they’ve been leading such as programs on data, cloud, and agile. Cloud migration provides the flexibility to manage the current spikes and changing employee and customer needs rapidly and cost effectively. The goal for CIOs is to emerge from this not having just “managed” the crisis but being stronger because of it.”
The Institute of Management Accountants has developed a list of 12 key principles of FP&A based on learnings from a recent survey of 700 organizations that identified the best-run companies — those that both consistently meet or exceed targets they set for themselves, and consistently meet or exceed their competitors’ results. Principles include developing a long-range plans and specific initiatives, understanding plan-to-actual variances, holding people accountable, and monitoring results and KPIs.
Many people in the finance and accounting industries would agree that accountants know finance, but not all finance personnel understand accounting. Granted, both functions have different skill sets and responsibilities. It may be an oversimplification, but accounting departments are focused on what has happened, whereas FP&A uses the information provided by the accounting department to posit what might happen.
Surveys show CFOs generally see the need to incorporate technology to help them improve their finance and accounting functions. But knowing which technology is right for their operations and which isn’t — and also when the time is right — is the “opportunity and the curse,” says Bryan Lapidus, FP&A, director of the FP&A practice at the Association for Financial Professionals. “Until you look at your needs and take an honest look at where your team is culturally, he suggested, the CFO might be better served resisting the addition of new tech for its own sake.”