Embrace Unit4 FP&A to support and enable the role of ‘The Analyst’ in your team
Financial Planning and Analysis (FP&A) teams have undergone a remarkable transformation. Once regarded as number-crunchers supporting finance and other functions, these teams are now pivotal in driving business strategy and organizational agility.
Mario Jiménez, Group CFO at Alamar Foods, aptly summarizes this shift in FP&A Trends’ Insight Paper for this year, stating:
"Today, the industry needs more than just data compilers; businesses seek strategic partners who can drive success through well-informed decisions."
FP&A teams must rise to meet this challenge, by acting as strategic allies equipped to align financial insights with broader organizational goals.
FP&A Insights identify 5 key roles that ensure FP&A teams are fit for the demands of today and tomorrow. Among them, "The Analyst" stands out a key role in FP&A teams that defines strategy.
In this blog, we dig deeper into this role, it’s value for your organization, and how this highlights the need for Cloud transformation in FP&A teams, and why Unit4 FP&A is the best choice – keep reading to learn more.
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The evolving role of FP&A
This shift has been fueled by volatility in global markets, technological advancements, and growing expectations for data-driven decision-making, along with the increased need to forecast or re-forecast. Today, 64% of organizations emphasize data-driven strategies, reflecting a 12% increase from the previous year.
One major driver of this change is technology advancements. AI, machine learning, and Cloud-based solutions are no longer just ‘nice to have’ but a reality being utilized for a competitive edge. Businesses leveraging these technologies report higher forecast accuracy and decision-making precision.
For instance, companies using AI/ML tools have achieved a 25% increase in forecast quality, with 65% rating their forecasts as either "great" or "good."
25%
companies increase
in forecast quality
It’s become clear that, to navigate what has been called the ‘new normal’ – a world where predictability is harder to achieve – digital transformation is the enabler of the strategic thinking and agile forecasting defining success for FP&A teams.
What is the role of the ‘The Analyst’?
'The Analyst' is the steward of financial data accuracy and the driver of actionable insights. Their focus is precision, ensuring financial data provides reliable foundations for strategic decision-making.
According to the FP&A Trends study, ‘The Analyst’ plays a crucial role in developing budgets, crafting insightful forecasts, and conducting variance analyses to identify performance gaps, trend, or opportunities.
Garrett Dennie, CFO at Knix, highlights this responsibility, stating, “FP&A professionals must turn data into actionable insights that can identify issues, highlight trends, and uncover opportunities, ensuring the organization consumes, uses, and acts on the information effectively.”
What are the responsibilities of ‘The Analyst’?
'The Analyst' role revolves around several key areas:
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Analyzing Budgets: Analysts lead the analysis of budget data, combining it across departments, often for a full organizational view. With FP&A tools they can adapt financial plans as forecasts and data dictate.
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Forecasting Models: By creating and refining financial models, Analysts help organizations anticipate market trends and make informed decisions. This is vital in today’s ‘new normal’ where unpredictability has become a feature, not a quirk.
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Conducting Variance Analysis: They assess where and why actual results differ from projections, providing insights to correct course or capitalize on opportunities. This is key to ensure data remains valuable to the FP&A team
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Actionable Recommendations: Beyond raw data, Analysts frame solutions that align financial performance with long-term objectives. In other words, they aren’t just concerned with data, but how data translate to information that is then communicated to teams, especially those without technical knowledge.
What skills does ‘The Analyst’ need?
Effective Analysts bring a combination of technical and interpersonal skills:
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Analytical Rigor: Precision and the ability to dig into complex data are key. They must interrogate data, understand variance and anomalies, and not let any data points fall into the unknown.
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Proficiency with Tools: The level on analysis required for this role would create unmanageable workloads where it not for key features like automation of manual tasks, advanced reporting capabilities, nor AI/ML. These tools help ‘The Analyst’ focus on analysis, rather than data tasks.
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Strong Communication: Data, even when managed correctly, means nothing on its own. It’s the analyst’s responsibility not just to report but explain, and communicate clearly the next actions for all teams.
The Strategic Impact of 'The Analyst'
“Great FP&A storytelling isn’t just about charts and reports; it’s about turning complexity into clarity. When data is woven into a meaningful story, it not only informs but empowers leaders to act with conviction,” says Michael Lengenfelder, Global Solution Architect at Unit4 FP&A.
'The Analyst' ensures that data is not only accurate but actionable. By providing leadership with precise insights, this role acts as a backbone for sound, strategic decision-making and risk management.
Whether it’s spotting inefficiencies or pinpointing growth opportunities, Analysts create a foundation companies can rely on.
Modern FP&A doesn’t work in silos, and neither does 'The Analyst.' They collaborate with other team roles, such as Data Scientists, who handle complex analytics, and Data Storytellers, who craft narratives from numbers.
Together, this synergy ensures that strategies are not only data-informed but are widely understood and embraced across the organization.
How to support ‘The Analyst’ of the future
The evolving landscape of FP&A is no blip; it will continue to change, and organizations and their FP&A teams must prepare for tomorrow, as well as today. Here’s some ways that ‘The Analyst’ role may change in the future, and how you can support this role through change:
Leveraging Technology
As FP&A continues to digitize, 'The Analyst' will increasingly interact with AI-driven platforms, automating routine tasks like data input and initial projections. The ability to interpret these sophisticated systems and translate findings into actionable strategies will separate great Analysts from the rest.
Expanding Responsibilities
The role is evolving from a primarily operational focus to one with strategic influence. Analysts are now required to be familiar with advanced analytics tools and frameworks to provide a deeper understanding of business dynamics.
Upskilling for Tomorrow
To thrive in this future, Analysts should pursue continued learning. Training in predictive analytics, machine learning, and advanced financial modeling will be crucial.
Michael Lengenfelder emphasizes this forward-looking mindset, suggesting teams invest in "T-shaped" professionals, who bring deep expertise in one area but also have cross-functional knowledge.
How can Unit4 FP&A can enable ‘The Analyst’ to thrive
Investing in digital tools like Unit4 FP&A is vital for these roles to be realized, and for the whole organization to benefit, by using a single source of the truth, various combining data from various sources, such as siloed spreadsheets
Organizations that prioritize and invest in this role will not only keep pace with industry shifts but will also unlock new levels of financial precision and strategic potential. By ensuring financial data's accuracy, translating insights into strategy, and collaborating across roles, Analysts drive businesses forward.
To learn more about ‘The Analyst’ and the other 4 roles defining FP&A success access the full FP&A Insights paper. To discover how Unit4 FP&A can help you enable these key roles in your team, consult our website, see a tailored demo, or talk to sales, today!
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