1. Thank
you
for
Financial Planning & aEending.
We
will
begin
at
11:00
a.m.
(Central
Time)
Analysis: The Urgent Need Audio
is
available
for New Skills through
your
computer’s
speakers
or
through
direct
dial-­‐in
Wednesday,
October
17,
2012
If
you
have
technical
quesQons
or
need
assistance
contact
Moderator:
Mary
Driscoll
GoToMeeQng
Special
Guests:
customer
support
at:
(888)
259-­‐8414
or
Susan
Serven
and
Jim
Robertson
+1-­‐805-­‐690-­‐5751

2. Housekeeping
 Audio
is
available
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your
computer
speakers
or
through
dial-­‐in.
All
lines
are
muted.
 You
can
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quesQons/comments
at
any
Qme.
We
will
address
all
quesQons
during
the
Q&A
session
at
the
end
of
today’s
presentaQon.
 Links
to
the
slides
and
recording
will
be
made
available
and
sent
to
all
aEendees
via
e-­‐mail.
©2012
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2

3. Financial Planning & Analysis:
The Urgent Need for New Skills
October
17,
2012
Moderator:
Mary
Driscoll,
APQC
Special
Guests:
Susan
Serven
and
Jim
Robertson

4. Today’s Featured Guests
Susan
Serven
Co-­‐Founder,
EPM
Channel
Jim
Robertson
FP&A
ExecuQve
©2012
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4

5. Discussion Points
 The
gap
between
the
potenQal
value
that
Finance
can
deliver
and
the
value
now
being
delivered.
 Higher
order
analyQcal
skills
and
capabiliQes
are
needed
for
finance
to
be
a
stronger
business
partner
 Leaders
emphasize
development
of
sof
skills
as
well
as
hard
skills
 FP&A
mission,
design
issues,
and
evolving
skill
sets
 What
are
“Big
Data”
analyQcal
skills
and
why
develop
them
within
Finance?
©2012
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RIGHTS
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5

6. Finance is Not Optimized
only 5% of respondents say their Finance
organization is delivering
Game Changing Value today
2%
5%
17%
Game-­‐changing
value
Significant
value
Make
a
difference
41%
Add
value
here
and
there
Not
very
much
value
35%
N
=
117
Over 50% say the value
delivered is not significant
©2012
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6

7. Finance Says: We Can Do Much More
1%
42% say they could make a
8%
major impact
42%
Game-­‐changing
value
Significant
value
Make
a
difference
49%
Add
value
here
and
there
N
=
119
©2012
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7

8. Is Finance Considered a
Business Partner? What makes these different
from those considered
business partners?
No;
21%
Yes;
79%
©2012
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8

9. Q. How satisfied do you think business managers are with the analytical
support provided by your finance organization?
"Line
Managers
Are
Sa2sfied
with
the
Analy2cal
Support
from
Finance"
70%
60%
60%
50%
40%
36%
30%
20%
10%
0%
Where
Finance
is
Perceived
as
a
Partner
in
the
Business
Where
Finance
is
Not
Perceived
as
a
Partner
in
the
Business
ObservaQon:
Companies
that
are
not
seen
as
a
partner
in
the
business
aren’t
providing
the
level
of
analyQcal
support
their
internal
clients
are
looking
for.
©2012
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RIGHTS
RESERVED.
9

10. Q. What kind of investments has your finance organization
made in developing and retaining finance talent?
ObservaQon:
In
those
companies
where
Finance
is
a
partner
in
the
business,
investments
have
focused
on
SoA
Skills
Training,
Encouraging
Finance
Employees
to
Learn
the
Business
and
in
enabling
Technology.
©2012
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10

11. FP&A: Tough Positions to Fill
70%
64%
60%
FP&A
50%
AccounQng/Financial
reporQng
Tax
40%
37%
TransacQonal
processing
(e.g.
AR
or
30%
AP)
Treasury
20%
14%
Internal
audit
10%
7%
7%
6%
5%
Other
0%
N
=
115
©2012
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RIGHTS
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11

12. FP&A Mission: Helping People Make
Better Decisions (part one)
Strategic
Planning/ExecuQon
Financial
Analysis
 CoordinaQng/leading
the
process
 CoordinaQng/leading
the
process
 Developing
business
plans
to
 Return
on
Investment
–
e.g.
projects,
IT
achieve
strategic
objecQves
 Profitability
analysis
–
market,
customer,
 Modeling
financial
outcomes
of
strategic
iniQaQves
product,
business
 IdenQfying
KPI’s
which
link
to
the
 Variance
analysis
strategy
 Capital
expenditures
 KPI
Tracking
and
ReporQng
 IdenQfying
iniQaQves
driving
KPI’s
and
linking
to
budgets
Other
Areas
 M&A
support
–
due
diligence,
Financial
Planning
integraQon
 Annual
Planning
–
driver
based
 Planning
 Single
and
mulQ-­‐quarter
 Product
development
modeling
forecasQng
 Tools,
methodologies,
templates
(ConQnued)
©2012
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12

13. FP&A Mission: Helping People Make
Better Decisions (part two)
New
Business
Support
 Pricing
analysis
 Sales
administraQon
 Contract
review
 Business
cases
 Product
development
modeling
Managing/CoordinaQng/ReporQng
Business
Performance
 Monthly/Quarterly/Annual
Business
Reviews
 Investor
RelaQons
Support
 ReporQng/analysis
packages
for
internal
and
external
customers
CompensaQon
 IncenQve
compensaQon
design/
measurement
for
annual
and
long
term
plans
 Sales
compensaQon
plans
and
administraQon
©2012
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RIGHTS
RESERVED.
13

14. FP&A Design Considerations
Company
Processes
and
Systems

External
 What
is
currently
working/not
 Industry
Maturity
working
well
 CompeQQveness
 How
strong
is
IT
group
 Smart
or
Dumb
CompeQtors
 Availability
of
and
access
to
 Rate
of
Change
transacQonal
and
operaQonal
data
 Customers
 ERP
 Customer
needs
 Planning
sofware
 Products
 Current
reporQng
in
place
 Technology
 Ownership
structure
and
expectaQons

Internal
FP&A
Team
 Where
is
company
in
its
life
cycle
 Current
Team
 How
do
leaders
make
decisions
 Strengths,
weaknesses
 Approach
to
accountability
 Ability/interest
to
stretch/grow
 Like/Dislike
of
process
 OrganizaQon
 Where
are
pain
points
 Where
does
FP&A
report?
 How
predictable
is
the
business
 Centralized/Decentralized
 RelaQonship
with
AccounQng
©2012
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RIGHTS
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14

15. FP&A Skill Sets and Characteristics
 Personality
 FuncQonal
 Process
 Curiosity
 AccounQng
 Change
 Precision
 Strategy
Management
 Broad
perspecQve
 Understands
 Persuasion
 Service-­‐oriented
business
and
 How
business
is
 Flexible
drivers
managed
 Good
judgment
 Financial
 PoliQcs
 IT
 Managing
 CreaQve
 Systems
 Leading
 Meets
commitments
 Cross-­‐funcQonal
 Lifelong
learner
 Match
tool
to
problem
©2012
APQC.
ALL
RIGHTS
RESERVED.
15

16. ©2012
APQC.
ALL
RIGHTS
RESERVED.
16

17. Financial
Planning
and
Analysis
Financial
Planning,
and
Analysis
©2012
APQC.
ALL
RIGHTS
RESERVED.
17

18. What’s the Big Deal about Big Data?
 What
is
big
data?
 “Big
Data
are
high-­‐volume,
high-­‐velocity,
and/or
high-­‐variety
informaQon
assets
that
require
new
forms
of
processing
to
enable
enhanced
decision
making,
insight
discovery
and
process
opQmizaQon.”
1
 What
are
some
examples
of
big
data?
 Wal-­‐mart
handles
more
than
1
million
customer
transacQons
every
hour,
which
is
imported
into
databases
esQmated
to
contain
more
than
2.5
petabytes
of
data
—
the
equivalent
of
167
Qmes
the
informaQon
contained
in
all
the
books
in
the
Library
of
Congress
 Facebook
handles
40
billion
photos
from
its
user
base.
 FICO
Falcon
Credit
Card
Fraud
DetecQon
System
protects
2.1
billion
acQve
accounts
world-­‐wide.
2
1
Gartner,
2012
2
Wikipedia
©2012
APQC.
ALL
RIGHTS
RESERVED.
18

19. Big Data Requires a New Approach
 What’s
different
about
working
with
Big
Data
 Dataset
size
is
beyond
the
capabiliQes
of
commonly
used
tools
to
capture,
manage,
and
process
the
data.
 AnalyQcal
techniques
to
understand
paEerns
in
Big
Data
are
complex
and
include
approaches
such
as
cluster
analysis,
regression
analysis,
paEern
recogniQon,
senQment
analysis.
 At
the
end
of
the
day,
data
analysis
must
be
balanced
with
criQcal
thinking
and
judgment
to
make
good
decisions
–
no
black
boxes
allowed.
 What
are
the
impacts
of
Big
Data
on
finance
talent
and
skills
 “Once
(companies)
have
data,
they
really
need
people
who
can
manage
it
and
find
insights.”
1
 Finance
is
a
natural
home
for
building
enterprise-­‐wide
analyQcs
capabiliQes
 Many
finance
professionals
are
comfortable
using
data
to
help
make
business
decisions;
big
data
requires
advanced
skills
in
research
design,
analyQcal
approaches,
and
tools.
 People
naturally
turn
to
Finance
for
help
with
data
 Finance
has
the
business
understanding
and
relaQonship
skills
to
solve
problems
with
Big
Data
 “Companies
that
want
to
make
beEer
use
of
the
data
they
gather
should
focus
on
two
things:
training
workers
to
increase
their
data
literacy
and
more
efficiently
incorporaQng
informaQon
into
decision
making,
and
giving
those
workers
the
right
tools”
(2)
1
Dan
PorQllo,
Greylock
Partners,
“Harvard
Business
Review,”
October,
2012.
2
“Harvard
Business
Review,”
April,
2012.
©2012
APQC.
ALL
RIGHTS
RESERVED.
19

20. “Putting Analytics to Work is Improving Performance in
Key Business Domains using Data & Analysis1”
New
Tools
Require
New
Skills
1
Davenport,
Harris,
and
Morrison,
AnalyQcs
at
Work,
p.
1
©2012
APQC.
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RIGHTS
RESERVED.
20

21. New Certification Programs
Cer2fied
Corporate
FP&A
Professional
Cer2fied
Analy2cs
Professional
(CAP)
 Sponsor:
AssociaQon
of
Finance
 Sponsor:
InsQtute
for
OperaQons
Professionals
Research
and
Management
Science
 Knowledge
Domains
 Knowledge
Domains
 Inaugural
exam
February
and
March
2014
 hEp://fpacert.afponline.org/
FPA-­‐12_Brochure.pdf
 Inaugural
exam
at
2013
INFORMS
Conference
on
Business
AnalyQcs
and
OperaQons
Research,
April
7-­‐9,
2013,
San
Antonio,
Texas.
 hEp://www.informs.org/Build-­‐Your-­‐
Career/AnalyQcs-­‐CerQficaQon
©2012
APQC.
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RIGHTS
RESERVED.
21

22. Make Time For Analysis
 Fix
the
foundaQon:
Data
 MulQple
sources
 Data
integrity
 Master
data
structure
 Common
business
language
 Stop
doing
low
value-­‐added
acQviQes
 Changing
packages
monthly
 Irregular/non-­‐standard
management
processes
 Fire
drills
only
when
necessary
 Variance
analysis
 Making
budget
decisions
once/year
©2012
APQC.
ALL
RIGHTS
RESERVED.
22

23. Benefits of Developing “Big Data”
Analytical Skills in Finance
 Company
PerspecQve
 CompeQQve
advantage
from
knowing
things
your
compeQtors
do
not
and
capitalizing
on
this
knowledge
 First/early
mover
advantages
sQll
available
but
window
is
closing
 ConQnued
acceleraQon
of
data
capture
and
storage
 Can
be
argued
finance
is
the
best
place
to
seed
this
skill
set
 Improved
retenQon
as
analyQcs
professionals
want
to
stay
and
conQnue
solving
challenging
problems
 Finance
Employee
PerspecQve
 Learn
related,
cuxng
edge
skill
sets
 Contribute
anywhere
analyQcs
can
be
useful
 Expand
career
path
opportuniQes
beyond
finance
©2012
APQC.
ALL
RIGHTS
RESERVED.
23

24. In Conclusion
• Finance’s
role
in
analyQcs
will
surely
grow
as
business
decision-­‐makers
become
more
adept
at
modeling
the
economic
impacts
of
their
choices
• New
skills
sets,
tools,
and
new
career
paths
within
Finance
are
needed
• Companies
that
make
Finance
a
place
where
Big
Data
analyQcal
skills
are
nurtured
will
aEract
and
keep
the
talent
they
need
to
grow
and
prosper
©2012
APQC.
ALL
RIGHTS
RESERVED.
24

25. For More
 Visit
www.apqc.org/knowledge-­‐base
to
see
more
Financial
Management
content.
 Have
a
suggesQon?
Let
us
know
what
topics
you
would
like
future
Webinars
to
cover
at
www.apqc.org/feedback.
©2012
APQC.
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26. ©2012
APQC.
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RIGHTS
RESERVED.
26