Guest Jack Alexander, author of Financial Management: Partner in Driving Performance and Value, discusses post-pandemic practical approaches to performance management, planning, forecasting, business valuation, mergers, acquisitions, and capital investment. He emphasizes the need for FP&A to consider external forces like hyperinflation and geopolitical events. Jack also shares his journey to becoming a CFO and highlights the importance of attitude and understanding job value in the FP&A profession.
Creating a Value Performance Framework helps connect day-to-day activities to overall financial performance and promotes ownership and alignment with business goals.
To become a CFO, individuals should focus on developing a well-rounded skill set that includes control and operations experience, executive presence, and a business perspective.
Deep dives
Importance of Value Performance Framework
Creating a Value Performance Framework is crucial for FP&A professionals to establish a link between value and business processes. By identifying the key drivers of value and breaking them down into specific revenue growth drivers, finance professionals can connect day-to-day activities and KPIs to overall financial performance. This allows individuals and teams to understand how their work directly contributes to the organization's success, promoting a sense of ownership and alignment with business goals.
Being a Well-Rounded Finance Professional
To reach the highest level of the finance profession, individuals should focus on developing a well-rounded skill set. This includes gaining experience in financial reporting, internal controls, and business processes, such as through roles in control and treasury organizations. Building executive presence, listening to respected advisors, seizing opportunities, and having a business perspective are also crucial. While FP&A experience is valuable, a balanced background that includes control and operations can enhance the chances of becoming a CFO.
Taking Care of Health and Regular Checkups
Maintaining good health, both physically and mentally, is essential for overall well-being. Regular checkups, knowing family medical history, and being a self-advocate for early detection are vital steps to preventing serious health issues. Prioritizing personal health ensures individuals can perform their best in both professional and personal aspects of life.
The Power of Attitude in FP&A
Having a positive attitude and being a go-to player with a can-do mindset is a critical skill for FP&A professionals. A proactive, solution-oriented approach allows individuals to overcome challenges, contribute to team success, and seize growth opportunities. Attitude can differentiate a finance professional and lead to broader exposure and development potential.
Jack Alexander was our second ever guest on FP&A Today and it remains one of our most downloaded episodes. Here he returns to exclusively launch his new book (published January 2024): Financial Management: Partner in Driving Performance and Value (Wiley Finance)
His new book is a post-pandemic and typically practical take on performance management, planning, forecasting, business valuation, mergers, acquisitions, and capital investment.
He says: “I wrote (my original book) Financial Planning & Analysis and Performance Management. Then the pandemic occurred, the Great accelerator, the great disruptor. And I was getting a different set of phone calls and requests.
“Most people hadn't really been through some of these experiences before. Scenario analysis and planning, business transformations and restructuring liquidity management and scenario planning through various liquidity scenarios. There was a need for FP&A and finance to look outside the organization at major external forces and events that are happening around the world as the greatest threats and opportunities emerged from outside such as hyperinflation and geopolitical events.”
In this episode Jack talks:
Why my first budget was a disaster
From financial accounting manager to CFO at EG&G
Mentoring as a path to CFO and CEO
Financial Leadership in the 21st century inspired by the pandemic and post pandemic environment.
The essentials of value creation for a finance team
Return to the Principles of a “Top Gun” CFO
What’s changed - and what hasn’t in 45 years of FP&A
How audit and transaction experience got me first promoted to CFO
Health and finance
Follow Jack Alexander at https://www.linkedin.com/in/john-jack-alexande
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