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How to create FP&A COE in a large multibillion manufacturing /distribution/service company

Charming Shah's Profile

We would like to know details of process , procedure , steps to create FP&A COE Also, references of companies those who can help develop and implement strategy to build FP&A COE will be highly appreciated

Answers

Topic Expert
Alan Hart
Title: Consultant
Company: Pacific Shine Group
(Consultant, Pacific Shine Group) |

Before such a question can be answered in detail, it is important to better understand the existing FP&A process and how fragmented it is across the enterprise, and the need to establish a COE for that process.

The benefits to the organization can be significant, following a successful implementation, but the project itself can be lengthy and complex. You will need an in-depth assessment of the existing process, identify duplicate sub-processes that can be moved to the COE and all low-value support functions that will assist the FP&A function within the organization in performing their tasks.

The way I understand it, this forum, while perfect for exchanging ideas and providing answers to questions, is not designed for such an undertaking. You will most likely need to engage a consulting firm to perform an independent assessment and provide some of your own resources during such an assessment. From my experience in such projects, it will require an absolute and full commitment of management to the undertaking of such a project and the discipline to complete it.

Based on the result of the initial assessments management can better decide whether establishing a COE for the FP&A process is necessary, and if so, what the next steps should be.

Anonymous
(Practice Head) |

Thanks. It would be nice to know the duration for which consultants should be engaged and also understanding of elements of initial assessment

Karl Nicholls
Title: Principal
Company: BTN LLC
(Principal, BTN LLC) |

In my opinion the true value of FP&A comes with being embedded with the commercial business you are supporting. Knowledge of the business is a key context needed to provide the invaluable insights we are tasked to provide, insights being data provided in an informative manner supported by commentary and engaging in dialogue. When looking to create a COE I would first look to leverage technology to provide the data and method of delivery that all too often FP&A staff spend most of their time preparing. Set up a central group responsible for automating and creating new access to data and reports. Keep FP&A staff embedded in the organization to do more "A". In this way I think you could gain significant efficiencies in your FP&A organization.

Charming Shah
Title: Practice Head
Company: IGATE
(Practice Head, IGATE) |

Thanks for the answer.......what kind of information should we have to start this process. Also, should we engage consulting firms or just the independent consultants

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