FP&A Team Development

Developing a TeamFebruary 25, 2010

Some Things Change…“Cutting-Edge” tools of the past…

…Some Things Do Not

Our PEOPLE are the value-added resource that endures

“Cutting-Edge” tools of the future…

Average lifespan of a CFO:less than 3-5 yearsone-third less than 2 years

Average lifespan of FP&A team:about 3-6 months longer

Why Focus on Development?

How do you BEAT the law of averages???

Finance Leader

Business Demands

Competitive Marketplace

Engagement

Job Satisfaction

Exciting Times BUT Opposing Forces

Team development and growth is a challenging but achievable objective

- Pull vs. push- Analytics core of modern business- Credibility is critical

- War for talent- Demographics- Supply constraints

- More, faster- Pace is increasing- MF example

- 68% like their work (vs. 52%)- 77% ready to devote (vs. 51%)- 70% to go above & beyond (vs. 51%)- 74% really care (vs. 59%)

Data to Decision

Framework

Nature of Financial Planning

Work

Value to Organization

Analysis Process

Charter & Span of Control

What makes a good financial

analyst?

Inception of a Framework

Staff Development

Who?Why?

What?

Where?

How?

What is it? “Reporting”

What does it mean?“Analysis”

What do I do?“Decision Support”

How do you employ your resources across these activities?

Data

Information

Knowledge

Decision

Data to Decision… What we do everyday

“Reporting”

“Analysis”

“Decision Support”

AnalystSr. Analyst /

ManagerDirector /

VP

Data

Information

Knowledge

Decision

Data to Decision: Typical Roles within Organization

Complexity / Visibility Within Organization

Data

Information

Knowledge

Decision

Data to Decision: Practical Execution in the Organization

WhatWeDo

For Whom Do We Do it?

Complexity / Visibility Within Organization

Data

Information

Knowledge

Decision

Ad hoc AnalysisAd hoc

Analysis

Strategic PlanningStrategic Planning

Periodic “Flash”

Reporting

Periodic “Flash”

Reporting

BudgetingBudgeting

Data to Decision: Practical Execution in the Organization

Sample illustrations… your organization may differ

Complexity / Visibility Within Organization

Data

Information

Knowledge

Decision

Ad hoc Analysis

Strategic Planning

Periodic “Flash”

Reporting

BudgetingReportin

g

Analyst

Sr. Analyst

Manager

Director

VP

Data to Decision: Role Involvement

How is this used?

How do you use the framework?

• Roles & responsibilities

• Maps development and advancement

• Highlights roles & responsibilities (such as the difference between “reporting” and “analysis”)

Data

Information

Knowledge

Decision

Ad hoc Analysis

Strategic Planning

Periodic “Flash”

Reporting

BudgetingReportin

g

Analyst

Sr. Analyst

Manager

Director

VP

Data to Decision: How do you use?

Data

Information

Knowledge

Decision

Ad hoc Analysis

Strategic Planning

Periodic “Flash”

Reporting

BudgetingReportin

g

Analyst

Sr. Analyst

Manager

Director

VP

How Does This Affect Hiring Decisions

Keep in mind when evaluating analysts:• Aptitude• Toolbox• Collaborates well• Willing to speak up• Broad experience… MBA?• Good coach

Settle for RIGHT… not BEST

• The hiring process is critical... Our HR partners tell us it is neglected

• Refined job descriptions and clear expectations to prospective associates

• Maps out one possible career path for candidates

• Consistent evaluation framework… but not in isolation – rather an extension

• Conveys you give much thought to people and development

Data

Information

Knowledge

Decision

Ad hoc Analysis

Strategic Planning

Periodic “Flash”

Reporting

BudgetingReportin

g

Analyst

Sr. Analyst

Manager

Director

VP

Associate Development

Keep in mind - analysts are motivated by:

• “The Challenge”• Variety• Contribution• Visibility

• Defines the progression path for associates

• Tasks to expect• Exposure to the organization

• Starting point on where to plug associates into the organization

• What is best for the associate… map interests against typical progression

• Care about the associate• Understand goals and desires• Help “make their own path”

Data

Information

Knowledge

Decision

Ad hoc Analysis

Strategic Planning

Periodic “Flash”

Reporting

BudgetingReportin

g

Analyst

Sr. Analyst

Manager

Director

VP

Data to Decision: Severing Associates

Remember that when necessary, it is the best thing for everyone:

• Business• Team• Individual

How you sever says a lot about your organization… be careful

• The most difficult thing we should ever have to do… HR says we are not good at this

• Best way to avoid this:• Clear expectations• Coaching• Consistent consequences• Be decisive

• It costs 1x to 5x to sever and replace a poor performer

• Consistent framework to discuss poor performance – examples of performance versus expectations

Ending with the BEGINNING in Mind

If you think you are too small to be effective, you have never been in the dark with a mosquito.- Unknown

Michael Schwindlemichael.schwindle@musiciansfriend.com

When in the daily trenches in your business, don’t forget the war for talent is ongoing.