New research from the Association of Financial Professionals identifies key practices that set apart leaders in agile finance.
BETHESDA, MD., November 8, 2022 /PRNewswire/ — Agile finance leaders are reforming their forecasts faster and are more likely to consider alternative events in their planning, according to results from the AFP FP&A Survey 2022: Measuring Agility in FP&A, sponsored by Workday.
New data shows that agile finance leaders are more than 50% faster at re-forecasting than their peers, taking an average of 9.4 days to re-forecast versus 14.5 for others in their field. They are also more likely to use multiple scenarios in the planning process, with 94% of agile leaders agreeing or strongly agreeing that “FP&A uses multiple scenarios.”
Additionally, agile finance leaders:
- Prioritize agility as the highest operational metric on performance management, capacity expansion and risk management.
- Seek continuous improvement through experimentation, new methods and disruptive ideas.
- Have better tools for quick planningincluding access to timely data with minimal retention.
The survey also found that while 54% of FP&A practitioners strongly agreed that their FP&A team is adequately staffed, 65% of practitioners reported working at or above 100% of their capacity. The results suggest that FP&A practitioners have normalized a level of customer support and ad hoc activity that is not sustainable without an increase in staff.
“For finance leaders to remain agile, they must have the ability to react quickly to unforeseen events, anticipate alternative events, and attempt new projects that lead to innovation,” said Jim Kaitz, Chairman and CEO of AFP. “Companies need to ensure their FP&A teams are adequately staffed and equipped to maintain agility.”
“Agility and flexibility are key for finance to move faster and operate like a true business partner,” said Kae Arima, Vice President of Finance at Workday. “Flexible, cloud-based technology powered by machine learning helps create a more agile, data-driven finance organization where teams drive operational change, guide business strategy and deliver greater value to people. whole company.”
The AFP FP&A Survey 2022: Measuring Agility in FP&A was conducted in August/September 2022 and received 255 responses from business practitioners in organizations of varying sizes representing a wide range of industries. For analysis purposes, points were assigned to all respondents; agile leaders are defined as those with the highest score, i.e. the top 20% of respondents.
Full survey results are available on the 2022 AFP FP&A Survey: Measuring Agility in FP&A page. Please direct all press inquiries to Melissa Rawakgeneral manager, to [email protected].
Headquarters outside washington d.c.and located regionally in Singapore, the Association of Financial Professionals (AFP) is the professional society committed to advancing the success of treasury and finance members and their organizations. Created and administered by AFP, the Certified Treasury Professional and Certified Corporate FP&A Professional certifications set standards of excellence in treasury and finance.
SOURCE Association of Finance Professionals (AFP)