More than 50% of business partners misinterpret financial analysis when making decisions.
The consequence of misusing FP&A’s analysis is three-fold:
- FP&A executives personally fail to deliver on the promise of FP&A.
- The ROI on FP&A’s analytic investments trends negative.
- Companies lose up to 1% of revenue per decision.
Many FP&A leaders attribute misuse of analysis to the organizational culture, something that is outside FP&A’s expertise and ability to change. However, our research finds exactly the opposite.
The leading cause of misuse is the quality of financial analysis itself.
Leading FP&A teams are shifting from an answer-focused approach to a problem-focused approach, not only improving the business’ ability to use financial analysis but delivering 2x as much value.