Financial Planning & Analysis (FP&A) provides organizations with vital planning, budgeting, and forecasting abilities so important strategy decisions can be made. Extended Planning & Analysis (xP&A) gives operational departments the same power – and more. With xP&A, the power of FP&A can be extended to every department to create continuous, company-wide plans that are more comprehensive, more agile, and more accurate. In this blog post, we’ll look at what xP&A is and how to move from FP&A to xP&A for 360° planning across the organization.
Companies of all sizes traditionally use Financial Planning and Analysis (FP&A) for their planning, budgeting, and forecasting. A unified, comprehensive finance strategy makes it easier to make strategic, enterprise-wide decisions and keep an eye on the performance of all departments. This unified strategy and extended approach to traditional FP&A then becomes Extended Planning & Analysis (xP&A).
A 360° view of performance
With Extended Planning & Analysis (xP&A), all departments can benefit from modern financial planning and analysis: continuous, company-wide plans that are more comprehensive, agile and reliable. This supports better long-term performance as well as increases transparency and accuracy across the organization.
With such a unified, solid data foundation, planning is then able to become a shared and unified endeavour. No longer just involving the finance department: planning for everyone with a 360° view. xP&A brings together financial data and non-financial data from multiple sources, and typically includes the business and operations teams that sit outside of finance. This supports a holistic, continuous performance management approach that allows you to see the big picture more clearly.
xP&A as a finance transformation model
Planning and analysis based on a unified data source leads to a better understanding of how different business functions interrelate and influence each other. Decisions must be made quickly and based on accurate data. Companies need to align all business activities to respond to a dynamic marketplace, an ever-changing economy, and fierce competition. This makes it all the more important that technology solutions for xP&A focus on hyper-automation across the board, enabling your organization to seamlessly merge data sources, automate your reporting, and easily get a complete view of performance. This requires a unified solution for people, planning, processes, and data.
Benefits of xP&A:
- Continuous planning
- Increased collaboration
- Improved performance across the organization
Saying goodbye to data silos and isolated applications paves the way to integrated planning in your company. Inconsistent planning and standardized forecasting and the associated lack of transparency are finally a thing of the past!
Download the eBook on 360° planning and learn how to unify planning across your organization to achieve a comprehensive view of business performance.