Today's finance teams must evolve to become forward-thinking strategists essential to their organization's success. Let's dive deeper into the components of Cube's FP&A maturity model and how you can use it to set your team up for success.

Happy planning,
Christina

The Finance Acceleration Framework™️

Businesses now operate in an arena where change is constant. Market conditions, customer preferences, and competitive landscapes evolve in the blink of an eye.

Cube's FP&A maturity model recognizes the journey finance teams must undertake to transform from data guardians to insightful strategists. It offers a structured path, highlighting which capabilities to build and what milestones to achieve as teams grow and scale over time.

Understanding Cube's FP&A maturity model

Cube's FP&A maturity model, known as the Finance Acceleration Framework™️, lays out a clear path from basic to advanced financial operations, outlining five specific stages of development: Basic, Emerging, Defined, Refined, and Masterful.

1. Basic

Here, finance teams start with fundamental processes—primarily focused on simple reporting and reacting to events. They rely on basic or even non-existent financial models, which are often static and isolated from other business functions.

2. Emerging

At this stage, teams recognize the need for improvement and begin automating tasks and implementing rudimentary planning practices. There's a growing emphasis on forecasting, but methods remain basic, and the finance function is not yet seen as a strategic partner within the business.

3. Defined

Organizations here have established more structured financial processes, with regular reporting schedules and clearer communication lines with stakeholders. They start to employ driver-based models for more accurate forecasting, bringing more value and beginning to influence strategy.

4. Refined

Advanced FP&A teams operate efficiently, using well-defined, driver-based models that offer real-time insights. There's a strong emphasis on collaboration, and the finance function is integral to strategic planning, working closely with different departments to drive business performance.

5. Masterful

At the pinnacle, finance teams are not just partners but leaders in business strategy. They use sophisticated, fully automated models for continuous forecasting and planning, deeply influencing company direction with data-driven insights. Financial processes are seamless, comprehensive, and pivotal to decision-making across the enterprise.

Each step in the Finance Acceleration Framework™️ is crucial, building on the former to achieve a more integrated, strategic approach to finance.

Cadences: improving reporting and analytics

In finance, having a structured approach to reporting and analysis is crucial. It's all about making your data work for you.

In the beginning, at the Basic level, financial reporting is a bit of a patchwork: it's all about actuals, which are historical data. The problem? This information is always looking backward, not forward. Analytics and forecasting are rarely done, and when they are, it's usually a rushed, ad-hoc process right before important meetings or decisions.

As we move to the Emerging stage, things get a bit more structured. Reporting starts to happen more regularly, maybe even monthly if you're really on the ball. But it's still a reactive approach. Budgeting and forecasting might extend to a rolling process, giving a slightly longer horizon to look ahead. Scenario planning is still an 'only-when-needed' task, and performance management against budgets (BvA - Budget vs. Actuals) is sporadic.

Reaching the Defined level changes the game. Regular reporting includes both financials and key performance indicators (KPIs), offering a more holistic view of where you are versus where you should be. Quarterly, and even multi-year forecasts become standard, providing a clearer path for the road ahead. Scenario planning starts to happen regularly, aiding more proactive strategy development.

In the Refined stage, you're not just keeping pace; you're setting the pace. Reporting is a mix of monthly and quarterly, with real-time access for those need-to-know-now moments. It's not just about having data; it's about understanding it. Analytics are embedded in reports, providing the 'why' behind the numbers. Forecasting becomes an art, blending historical data with real-time insights to predict future trends accurately. Scenario planning is more frequent, and performance management is a consistent rhythm that keeps everyone aligned and accountable.

At the Mastery stage, you're in the driver's seat. Everything is real-time, with self-service access to data whenever and wherever you need it. You're not just reporting on the numbers; you're telling the story behind them and shaping the narrative. Budgets and forecasts are rolling, adjusting to the business's ebbs and flows, and scenario planning is part of the daily dialogue, ensuring you're prepared for whatever comes your way.

By understanding where your team currently stands on the maturity ladder, you can identify areas for improvement and adopt a systematic approach to strategically evolve your operations over time.

Wondering where to go from here? Check out the essential reads below to get started.

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Essential reads: Transform your team into strategic business partners

1. Top strategies for aligning OKRs & financial planning

When you're working through the Finance Acceleration Framework stages, this eBook on OKRs is especially useful. It guides you through the process of connecting your financial planning with strategic goals, which is highly useful for enhancing your team's role in the company. Highly recommend!