As organizations take steps to inspire a data-driven, performance-based culture, Finance teams are redefining the mission of the Office of Finance by embracing the next evolution of processes and tools. The emergence of xP&A stands to transform traditional FP&A by extending collaboration with business partners and alignment of granular operational plans with financial goals. What does this mean?
CFO Dive defined XP&A as the idea that planning should go beyond traditional finance data to include the kind of data from all functions of the business that align with company goals. The key understanding what each function area is driving towards, how its goals contribute to the overall organization’s success, and then identify the data that measure each function area’s performance against its goals
Traditional FP&A
New xP&A
According to Gartner, by 2024, 70% of new financial planning and analysis projects will become extended planning and analysis (xP&A) projects, extending their scope beyond the finance domain into other areas of enterprise planning and analysis. xP&A involves looking at more varied types of data to allow for greater visibility into operations and better organizational decision-making.
For organizations beginning their XP&A journey, now is the perfect time for Finance teams to conquer the complexities of their “connected finance” processes. To move away from siloed decision-making. And to respond rapidly and effectively to the pace of change around them.
An effective XP&A platform also requires a unique set of features to technically enable real-time collaboration between Finance and Operations leaders in order to optimize performance. Here are some of the key features to consider as part of the due-diligence process: