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Business Forecasting & Analytics ForumSeptember 18-19, 2017  •  Chicago, IL

FP&A: Creating Value through Insight

September 19, 3:30 pm

View presentation online at: https://jpkgroupsummits.com/attendee1/

Presenter: Matt Borneman – AIT Worldwide Logistics

Leverage financial planning & analysis to provide true business impact

Matt Borneman is Director of Financial Planning and Analysis at AIT Worldwide Logistics, Inc. where he leads the FP&A team and Business Intelligence projects. Prior to joining AIT, Matt spent several years in a variety of Planning & Analysis leadership

roles at FedEx, Texas Instruments and Tribune Company.  In those roles he developed expertise in Dashboard and KPI development, Financial Modeling and Budget Process Improvement. Matt has a BBA in Finance from the University of Georgia and MBA from

the University of Georgia Terry College of Business.

FP&A: Creating Value Through Insight

Leveraging financial planning and analysis to provide

true business impact

– A little about me and how I’ve seen FP&A change

– The transformation of FP&A at AIT aligning business to the data and translating strategy into action

– Some key success factors in your FP&A Journey

– Q&A

About Me

20+ years in Corporate Financial Planning & Analysis

• MBA University of Georgia

• Texas Instruments

• FedEx

• Chicago Tribune

• NPD Group

• AIT Worldwide

How has the FP&A world changed since the mid-90’s?

The expectation today is that FP&A is a key business partner

– not just a producers of reports.

Monochrome Terminal / Mainframe

3 Monitors / 4-5 programs

openCloud

Transparencies PowerPoint Mobile

Offshoot of the Accounting

Team

FP&A as an “entity”

Business Consultants

Reporting

Tools

Status

How do we get to be Key Business Partners?

Flex with the changing role of FP&A

Have the right Team

– Hire and Train world-class talent with solid analytical skills, keen

understanding of the industry and economic environment

Provide useful Data

– Sources

– Accuracy

– Single version of the truth

Build Partnerships

– IT

– Ops

– Accounting

How do we get to be Key Business Partners?

Be effective analysts

– Add value in everything we do

– Provide forward-looking forecasting and analysis

– Apply the 80/20 rule

– Understand priorities

– Flexibility

– Adaptability

Gain trust to get buy-in

– Confidence

– Understanding the big picture

– Build relationships in the organization

Ultimately, the goal is Actionable Decision Support

Actionability

Detail AccuracyTimeliness

FP&A at AIT Worldwide Logistics

Our FP&A Mission Statement

The AIT Worldwide Logistics Financial Planning & Analysis team adds value as

a Business Partner to AIT leadership by utilizing best practices in financial

planning, modeling, and analysis to grow profitability and improve cash flow for

the long term success of the business.

We partner with Executives, Operations and Sales as business consultants to

understand and interpret the Key Drivers of the business and utilize technology

in order to achieve results.

AIT FP&A Road MapGOAL

Automated reporting on Key Drivers and 75% of time spent on Decision Support Analysis

Year one

Shore-up reporting; data integrity; report accuracy; simplification; budget education; building

credibility through timeliness and accuracy

Year two

Leverage the Enterprise Data Warehouse; develop Data Warehouse reporting working closely

with Ops, Sales and Corp Fin; Budget and Rolling Forecast firmly indoctrinated into AIT culture

Year three

FP&A as Business Partner; FP&A is the bridge between Operations and Finance; FP&A are the

go-to experts for data analytics

Reporting Goals

Current State

Too many sources; multiple versions of “the truth”

GOAL

• Simplify by eliminating redundancies and ensuring accuracy

• Reduce reports while increasing actionable information

From:

“BIC”, “DSA”, “SPA”, “BIO” and thousands of emailed reports

To:

Enterprise Data Warehouse with ~20 Power BI Reports

Analysis Goals

Current State

Very little analysis

GOAL• FP&A will take a disciplined approach to routinely identifying and diving into top

opportunities for revenue growth, expense savings and working capital improvement. FP&A’s focus will shift to providing decision support intelligence and providing guidance to improve cash flow.

• Developing and Leveraging the Data Warehouse will be key to our success

• FP&A must own the direction of report development based on our knowledge of business needs

Planning Goals

Current State

Budgets that may or may not get used

GOAL

• As business partner to Operations executives, FP&A will become intimately involved

in the strategic planning process. We will be indispensable as consultants in helping

develop business plans and analysis for new services and station performance,

including ROI analysis on proposed new stations and existing stations.

• By year three, FP&A will lead the planning process

• Involved in ongoing meetings involving business decisions

Planning Goals: Tie Budget to Strategy

Participate in the Strategic

Planning Process

Build Budget Assumptions

Build Budget/Forecast

model

Get input and approval

Track progress against Strategic

Objectives

We will know we are succeeding when:

1. Financial and operational data is not only trusted but utilized to

grow the business.

2. FP&A is seen as indispensable business partners rather than

report generators.

3. Everyone is on the same page. Executive team, Steering

Committee, Station management and Corporate Finance utilize

the budget and forecasts as essential in reporting.

We will know we are succeeding when:

4. Station Managers and Department Heads know their financials

and key drivers; they know the levers towards more profitable

growth and are working towards it based on data provided by

FP&A. Department heads and Station Managers are held

accountable for attaining budget goals.

5. Budgets and Forecasts are in place and utilized in reporting and

analysis. They are linked to objective setting, translating the

organization’s strategy into action

6. SG&A Expenses flex on revenue fluctuations.

How are we doing?

• Transitioning from traditional P&L’s to PowerBI based

Reports

– PowerBI is used as a conversation tool to tell a story

– “On the fly” comparisons of regions, etc. with ability to drill

down as needed

– No more hours pulling together presentations in PowerPoint

– Focus is now on understanding the content, not creating the

content

$$.$M

goals

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goals

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goals

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goals

Daily Sales Activity Reporting

• DSA in BIC to DSA in Power BI – added vertical markets,

products, International vs. Dom, and several other

attributes

• Ties to our strategy of growing our Air and Ocean

Business

• More Visual

• Mobile-ready

The old DSA report provided limited info

The New DSA : more info, more visual

Are we there yet?1. Data is not only trusted but utilized to grow the business.

2. FP&A is seen as indispensable business partners

3. Everyone is on the same page.

4. Managers know their financials are held accountable

5. Budgets are linked to objective setting

6. SG&A Expenses flex on revenue fluctuations.

Becoming a Key Business Partner is a journey, not

a destination

Where are you on the Insights Pyramid ?

Insights

Analysis

Reporting

A recent study by CEB

(now Gartner) suggests

poor-quality and average

FP&A seeks to provide

definitive answers to

specific questions.

Counter-intuitively, poor

analysis is marked by such

seemingly admirable traits

as technical rigor and data

precision

Data into Insights: Be Problem Focused

Data into Insights: Be Problem Focused

CEB offers the following advice to improve FP&A Team

performance:

• Outline the implications of analysis beyond the near

term.

• Draw attention to relevant scenarios.

• Collaborate with business partners on interim analyses.

• Provide a holistic picture of alternatives and

uncertainties.

• Help decision makers understand unforeseen tradeoffs.

• Get the business to think of what could go wrong early.

Learn to be a Story Teller

As an FP&A professional it is now imperative to become a good story teller

Here are five books recommended to learn the power of storytelling:

1. The Storytelling Animal: How Stories Make Us Human by Jonathan Gottschall

2. The Story Factor: Inspiration, Influence, and Persuasion through the Art of Storytelling by Annette Simmons and Doug Lipman

3. Writing for Story: Craft Secrets of Dramatic Nonfiction by Jon Franklin

4. Resonate: Present Visual Stories that Transform Audiences by Nancy Duarte

5. Made to Stick: Why Some Ideas Survive and Others Die by Chip Heath and Dan Heath

Recommended by Jesse Scinto, a presentation consultant at Propoint who works with leading organizations, including the United Nations. He teaches The Critical Mind and Dynamics of Persuasion at Columbia University’s School of Professional Studies.

Turning Data into Insights

“Imitation is the sincerest form of flattery.”- Charles Caleb Colton

• Develop solid presentations skills

• Research the best presentation tools for your business

• “Steal” good ideas for report layouts and graphics

• Get buy-in for your ideas and SELL them

• Don’t give up – it’s a journey

Wrapping Up

• Keep up with changes in

– your company

– your industry

– the FP&A world

– the data world

• Don’t provide data - Tell a Story

Questions?