CFOs and VP&A leaders alike search for particular characteristics in the candidates they choose for their teams. The key traits they search for can vary from situation to situation depending on the state of the organizations’ development. For example, a new and quickly growing organization needs people who are virtually athletic in nature, are comfortable with high risk situations and a high likelihood of failure. More mature organizations need the steady hand of process and managerial thinking. But one characteristic is indispensable for all great FP&A team members and that is the unique ability of synthesis. Some people are detail oriented while others are more big picture are strategically oriented. FP&A professionals, in order to truly master their craft have to be both and then add in an element of synthesis.
Here is a partial list of the items and good FP&A person understands in detail:
- Accounting entries and detailed support
- The geography and rationale of various capitalization strategies
- Detailed vendor spending and the objectives of day to day and long term spending
- Project specific spending and how those projects align with corporate strategy
- Long range business plans and how the business is aligned to achieve those plans
- Internal stakeholders and business leaders’ specific areas of financial concern
- External stakeholders and the company’s responsibilities from both a performance and reporting perspective
- Financial systems across the organization – their structure, capabilities and evolution
Across any organization there are people operating in each of the above mentioned areas. It is the FP&A person who synthesizes all of the above in order to see the complete picture of the company. Turning that synthesis into a story that communicates a company’s position in the marketplace and where it is going is what distinguishes FP&A leaders from those who have expertise in a single area.
The ability to communicate that story is yet another skill – one for a future blog post.