In industries like cryptocurrency, things change fast. Markets shift quickly, and companies must adapt to stay competitive. Good teamwork between commercial finance and planning teams is vital in such a fast-moving environment.
When these teams work closely, they make smarter decisions and handle changes better. This type of strong connection is called FP&A collaboration, and it plays a key role in helping businesses stay on track.
Megan Walbyoff and Alwyn Jones from Luno, a global crypto platform, share their insights on FP&A collaboration. Megan leads commercial finance and is known for balancing financial data with business goals.
She has worked at Luno for nearly three years and is about to become a first-time mother. Alwyn is the company’s CFO and has strong banking and finance experience. He focuses on planning for different market situations and making sure finance supports overall growth.
In this article, you will learn how to stay calm during market swings, adjust budgets quickly, and plan. We will also cover how customer data shapes smart strategies. Finally, we look at the key skills and tools that help FP&A teams work well together in a fast-changing world.
Effective FP&A Collaboration Between Commercial Finance and Planning Teams
Working together between commercial finance and FP&A (Financial Planning & Analysis) is crucial, especially in industries where the market changes fast, like cryptocurrency. With market swings happening often, communication and flexibility are essential to stay on track.
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Stay Calm During Market Swings
In fast-moving markets, it’s easy to react to every change. But making decisions based on short-term shifts can lead to mistakes. Instead, take a step back and look at the bigger picture. Understand that market changes are normal, and plan for them.
Flexibility in Financial Decisions
Flexibility is key. One area to focus on is marketing spend. When the market is good, it’s important to take advantage of the opportunity by increasing marketing. But when things are slow, you should adjust and keep costs in check.
Adjusting the budget quickly helps the team respond to changes without overspending.
Planning Ahead
While reacting to changes is important, planning for what’s coming next is just as vital. Monitor potential market shifts and product launches, and adjust priorities based on the situation.
- Think ahead: Always be ready for upcoming changes.
- Adjust resources: When priorities shift, adjust what your team is working on to stay efficient.
To sum up, collaborating between commercial finance and FP&A is all about communication, flexibility, and staying ahead of market changes. By staying calm, being flexible with the budget, and planning, both teams can work together to keep the business on track through any change.
How Commercial Insights Shape FP&A Collaboration Strategy
In industries like cryptocurrency, where things change quickly, commercial insights help shape FP&A forecasts and strategies. Understanding customer behavior and product performance is essential for making smart decisions.
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Leveraging Customer Unit Economics for Better Forecasting
Customer unit economics is a useful tool for identifying which customers bring the most value. To do this, you can look at:
- The number of coins customers trade
- Which products do they engage with
- How much do they buy
- Which customers are most profitable
- How many customers keep coming back
For example, a company might find that its best customers trade five or more coins. This could support decisions like adding more coins to the selection.
However, as more coins are added, the benefits of each new coin start to decrease. At that point, the focus should be on the top-performing coins, like the top 20 by market cap, rather than just adding more options.
Continuously Evolving Strategy Based on Insights
These insights don’t stop after the first analysis. They help shape an ongoing strategy. Businesses can adjust their approach to align with market changes by regularly reviewing customer data.
Instead of continuing to add coins, the company should focus on the ones that are performing the best. This ensures the business always offers what customers want, based on actual data.
In short, by using commercial insights, companies can make better decisions and stay ahead in a fast-moving market. This approach lets them respond to changes and keep their strategies on track.
Key Skills for Success in FP&A Collaboration Roles
To build a successful commercial finance or FP&A team, certain qualities are essential for individual success and helping the business grow. These traits ensure the team works well together and supports the company correctly.
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Balancing Detail and Big Picture Thinking
In FP&A, it’s important to balance focusing on details while keeping the larger picture in mind. This balance ensures that:
- You focus on key details when they matter, without getting lost in every small number.
- You trust your judgment to know when the data is good enough to act on.
- You adapt easily by stepping back to see the bigger picture when necessary.
This approach helps you stay efficient and confident that your decisions are based on the right data.
Curiosity as a Driving Force
Curiosity is key in FP&A. Professionals who are curious ask the right questions and find insights that others may miss. It’s not just about the data; it’s about understanding how it affects the business, customers, and market. Curiosity drives you to keep learning and improve strategies.
Acting as a Business Partner
FP&A professionals must think like business partners, not just number crunchers. They need to:
- Collaborate with other teams to understand and support business goals.
- Provide insights that help decision-makers choose the best course of action.
- Guide decisions based on the financial data while aligning with the overall strategy.
When FP&A professionals act as true partners in the business, they help guide both daily decisions and long-term strategies. By being involved in both, they add real value to the company.
How New Tools Enhance FP&A Collaboration and Agility
As the world of FP&A evolves, new tools are helping businesses become more agile and make smarter, data-driven decisions. While many still rely on Excel, shifting to more integrated planning systems is a game-changer for financial analysis.
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The Power of Integrated Planning Systems
One of today’s most useful tools is integrated resource planning systems like Anaplan. These systems combine financial and operational data, making it easier to see how different business areas perform.
By connecting financial results to real business metrics, companies can better track the success of their strategies. This integration allows FP&A to move from looking back at past data to predicting future outcomes.
Moving Beyond Excel for Greater Efficiency
While Excel is still widely used for initial brainstorming and modeling, it can become inefficient for ongoing analysis. Relying too heavily on spreadsheets can cause problems like:
- Data errors from manual updates.
- Unorganized processes that slow down decision-making.
A structured system, like an EPM (Enterprise Performance Management) solution, makes the process smoother and more reliable as businesses grow.
The Future of FP&A
FP&A will become even more strategic with better tools and technology. By integrating more predictive analytics and data-driven insights, finance teams will help businesses make faster, smarter decisions.
The focus will shift from looking at what happened to understanding what will happen, turning FP&A into a key player in shaping the company’s future.
Embracing these technologies will allow FP&A professionals to be more than just number crunchers. They’ll become essential partners in driving business success.
Conclusion
Strong FP&A collaboration helps teams stay ready, act fast, and make better choices in changing markets. When commercial finance and planning teams work closely, they respond quicker and plan smarter.
Clear communication, flexible budgets, and regular reviews help both sides stay focused on what matters. Customer data gives useful insights that shape better plans and avoid waste.
New tools also play a big role. Moving beyond Excel to smarter systems helps teams work faster with fewer errors. These systems connect financial plans with real business needs.
That said, tools alone aren’t enough. Teams need people who ask the right questions and think beyond the numbers. FP&A works best when it supports daily choices and long-term plans at the same time.
In short, better teamwork, the right tools, and smart thinking all help make FP&A collaboration a key part of business success.
FAQs
Why does FP&A collaboration often break down between teams?
FP&A collaboration can break down due to unclear roles, poor communication, or teams working in silos. Regular check-ins and shared goals help prevent this.
What KPIs should guide FP&A collaboration?
Useful KPIs include forecast accuracy, budget variance, and customer profitability. Clear KPIs keep both teams focused.
Who leads FP&A collaboration in most companies?
Usually, the finance or FP&A lead drives it. However, both sides must take equal responsibility to make it work.
Can FP&A collaboration work well in remote teams?
Yes, but it needs strong communication tools and clear planning. Shared dashboards also help keep everyone on track.
What tools improve FP&A collaboration besides Excel and Anaplan?
Tools like Workday Adaptive Planning, Planful, and Google Sheets (with version control) also support real-time teamwork.
