While conventional FP&A (Financial Planning and Analysis) is helpful in managing an organization’s finances and analyzing its financial position, it fails to give you a holistic view of your business. This often fails different teams from showing comprehensive reports to business leaders, leading to unwanted silos. To resolve such a disconnected approach, traditional FP&A has evolved into xP&A.
Before diving a little deeper into how xP&A de-silos your organization, let us briefly understand how silos disrupt your processes.
How Disruptive Are Silos?
The word ‘silo’ comes from a word that means ‘isolated.’ Silos lead to disconnected organizational experiences that hamper your company’s smooth operations. They occur when different departments and teams within your organization work independently without any coherence. This leads to a fragmented approach to almost everything, leaving your organization’s inherent objectives out of the equation.
From sales and marketing to finance and operations, every department working in an organization contributes to its bottom line. If every department prepares its own operational plans using different tools, it often leads to a lack of coherence and a comprehensive approach.
How Does xP&A De-silos Your Organization?
xP&A stands for extended planning and analysis. It takes the essence of FP&A and extends to your entire organization. xP&A is an evolved approach to conventional FP&A and the best way to handle the siloes in your organization. Here, the variable “x” replaces the finance department with any other team working in your organization. By expanding the planning and analytical processes, it improves your decision-making.
The essence of xP&A lies in connecting plans with people instead of any specific department. It lets you and your team identify potential opportunities, impacts, and risks associated with different departments, allowing you to develop solutions as specific challenges appear. xP&A makes it possible for you to analyze multiple scenarios with a coherent and clear outcome affecting every department operating within your organization.
Moreover, xP&A does not merely link different operational plans to each other. Instead, it allows you to link your plans to strategic business objectives, allowing business leaders to evaluate, forecast, and monitor matters in a holistic way. xP&A gives you the confidence to pair your intuitions with cohesive, accurate, and real-time analysis.
Facilitating xP&A With Technology
Modern technology increases the scope of facilitating xP&A, allowing organizations of all scales to leverage their processes. Modern software solutions allow companies to remove silos and synchronize plans between different departments using automated tools and features. This lets you adopt modern solutions aiming at seamless processes throughout your organization.
Adopt An Organization-wide Approach To Planning And Analysis With VIZIO
If you are still stuck with silos that hamper the decision-making of your business leaders, VIZIO helps you implement modern xP&A solutions. Our team of trained and certified tech experts understands your inherent objectives and helps you build solutions that encompass all your requirements under a single umbrella. With VIZIO, you can successfully break seemingly unavoidable silos by implementing the much-needed xP&A solutions within your organization.