The State of FP&A: People Strategies and Development

2024 AFP® FP&A Benchmarking Survey Report: People Strategies and Development

Introduction

In the third quarter of 2023, the Association for Financial Professionals (AFP®) conducted a benchmarking survey among FP&A/finance practitioners. The goal was to understand the state of FP&A, people strategies, and development. The survey aimed to evaluate companies' performance, practices, and strategies relative to others in the industry. This report highlights four key insights derived from the data and includes detailed responses for each question.

Key Insights

1. FP&A Practitioners Are Techno-Optimists

   • Overall, FP&A practitioners are optimistic about the benefits of technology, automation, and artificial intelligence.
   • Reasons for optimism include:
     • Belief that technology will enhance their working lives.
     • Confidence that human skills essential to their roles cannot be replaced.
     • Adaptability to the changing work environment.

2. Increased Support for FP&A Development

   • Respondents indicated that their companies are providing increased support for FP&A professional development.
   • Factors driving this trend include:
     • Defining the field of FP&A.
     • Low unemployment rates.
     • Recognition of the need for reskilling.

3. Defining the Field of FP&A

   • Maturation of the FP&A function is leading to specialization.
   • The field has its own recruiting titles, conferences, certifications, and skill definitions.

4. Small Companies Seek More Analysis; Large Companies Want More Technology

   • Organization size influences where additional FP&A staff would be engaged.
   • Smaller companies prefer more analytical roles.
   • Larger companies prefer more technological roles.

Action Items

1. Improve Digital Readiness

   • Focus on digital readiness rather than waiting for perfection.
   • Take action even if the plan is not yet perfect or technology is still evolving.

2. Seek Support

   • Request support from your employer to succeed.
   • Employers can provide funding, time, and insights to advance your career.

3. Manage Skills and Talent

   • Stay informed about changing needs in your organization and profession.
   • Manage both talent and skill acquisition accordingly.

4. Align Development Plan

   • Ensure your development plan aligns with current and future employer needs.
   • Be intentional and aware of your organization's requirements.

Data Highlights

• Areas of Focus for Professional Development

  • Technology and data management (55%).
  • Finance (e.g., planning, analysis, decision support) (49%).
  • Business knowledge (e.g., value chain, economics, markets) (37%).

• How Additional Staff Would Be Engaged

  • Financial analysis (45%).
  • Digital transformation (38%).
  • Planning (e.g., budgets, forecasts) (27%).

• Concerns of Obsolescence of Current Roles Due to Technological Advances

  • Weighted average response: Mildly concerned (12).

• Top FP&A Skills-Related Opportunity for Improvement

  • Technology and data management (31%).
  • Business knowledge (21%).
  • Personal and team effectiveness (6%).

Conclusion

FP&A practitioners view technology, data management, and digital transformation as areas of opportunity and professional development. They are eager to invest time and resources in these areas. While there is mild concern about job obsolescence due to technological advancements, the overall sentiment remains positive and proactive.