Once the data are connected and available in aĬonsistent and trusted source, we can provide that data as a service and enable end users the flexibility they need to support their business.ĭelivering data means we provide finance teams and business partners with the data they need, fully packaged, connected and optimized, to enable them to focus on creating clarity and making the next, best decision instead of wrangling data. The key is to deliver a common set of explorable metrics and measures that are all connected through common hierarchies and data schema. We wanted to make sure every single person in an analytical role, whether they sat in finance or marketing or sales or engineering, was able to trust that the data they used would be connected to the source and would be recognized as the “right” data.Īt the same time, we wanted to create a system that would support flexibility at the edge, that is closer to the customer or end-user, because we knew that we were not going to centrally design the one dashboard or set of standard reports to meet every business need. AFP is also hosting a companion webinar on capital allocation decisions on February 20.Ĭopyright © 2022 Association for Financial Professionals, Inc.A key principle of our data strategy was developing discipline at the core.
This new FP&A Guide covers the challenges of arriving at an accurate rate.ĭownload the AFP Guide to Making Capital Allocation Decisions: The Role of FP&A here. The difference between the right decision and the wrong one can have a significant impact on shareholder value. They’re typically responsible for managing that portfolio.”Ībnormally low interest rates are making cost-of-capital calculations more difficult, affecting critical capital allocation decisions. “There’s a capital group that gets involved in each project above a certain dollar and materiality threshold.
“What we see work best, is that it resides in FP&A,” said Jason Logman, principal, EPM Transformation Practice, The Hackett Group. Following up on AFP’s 2013 Cost of Capital Survey, AFP has released a new guide that explores how firms calculate their capital cost and how FP&A professionals can partner with senior management in making important capital allocation decisions.įP&A professionals are often the ones making, reviewing and recommending business case scenarios for potential investments. With companies sitting on vast reserves of cash, capital allocation decisions can have a major impact on individual company performances, as well as overall economic growth.
0 kommentar(er)
