Aligning FP&A with Operations to Build a Powerful Strategic Partnership

The Finance Leader Podcast – Episode 145

The more closely aligned Operations is with FP&A, the more likely the organization can find critical insights to grow revenue, reduce costs, better allocate resources, optimize labor, and overall provide a better experience for the customers and also for the employees.

The FP&A team can be a powerful tool for the senior leadership. What does a well-aligned FP&A team look like? A well-aligned FP&A team operates as a strategic partner to the business rather than just a reporting function. The team is deeply integrated with operations, the supply chain, sales, and leadership, ensuring financial insights are tied directly to business drivers and performance outcomes. They maintain a forward-looking mindset, using forecasting, scenario analysis, and sensitivity testing to guide decisions instead of only relying on historical results.

Episode outline:

1. The benefits of a properly aligned FP&A team
2. What happens when FP&A and Operations are not aligned
3. A few steps to started

Listen to the full episode here:

A well-aligned FP&A team operates as a true strategic partner rather than just a reporting function. They maintain a forward-looking mindset using forecasting, scenario analysis, and sensitivity testing to guide decisions instead of merely reporting historical results. Processes become streamlined, data grows more accurate, and finance professionals proactively engage with department leaders to translate strategy into measurable financial plans.

Developing Leaders in Finance and Accounting

The alternative? Disconnected financial plans, unrealistic budgets, inefficient resource allocation, and the inability to respond quickly to changing market conditions. Operations may pursue initiatives that don’t reflect financial constraints, while finance imposes limitations without understanding operational needs. Communication breakdowns reduce trust, weaken decision-making, and ultimately erode competitiveness.

Ready to transform this relationship in your organization? Start by developing a common language that translates finance terms into operational impacts. Build trust by providing insights that help operations succeed rather than just highlighting problems. Know the micro-details of the metrics you analyze, and be willing to step away from your desk to understand what’s really driving performance. Remember: finance leaders have both the ethical and fiduciary responsibility to move the business forward through powerful partnerships.

Please comment or email me at contact@stephenmclain.com.

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