6 Best Practices for Building a Strategic Finance Team

1. Identify Key Skills and Roles: Focus on technical expertise, strategic thinking, communication, and leadership. Include roles like FP&A analysts, finance leaders, and forecasting specialists.
2. Use FP&A Tools: Invest in tools with data integration, analytics, scenario modeling, and collaboration features to improve efficiency and decision-making.
3. Foster Collaboration: Build strong relationships with stakeholders through clear communication, real-time metrics, and shared planning efforts.
4. Focus on Reporting and Scenario Planning: Use automated tools for accurate reporting and develop scenario models to prepare for uncertainties.
5. Align Team Goals with Business Priorities: Create a finance roadmap tied to company objectives using SMART goals and actionable strategies.
6. Invest in Training and Leadership: Offer ongoing training in technical, strategic, and leadership skills to prepare for future challenges.

Quick Tip: Use modern FP&A tools like Prophix One or Adaptive Insights to automate repetitive tasks and focus on strategic initiatives. Align finance efforts with business goals, and prioritize leadership development for sustained growth.

Keep reading for detailed steps, tools, and examples to implement these practices effectively.

How to Build Winning Financial Planning and Analysis Teams

1. Identify the Right Skills and Roles for Your Team

Building a successful finance team requires a mix of key skills and clearly defined roles to support business growth and informed decision-making.

Skills Every Finance Professional Should Have

Today’s finance professionals need a combination of technical know-how and strategic abilities. Here's a closer look:

Finance professionals also need to stay curious and flexible. As Brian Camposano, CEO at Stratify, puts it:

Important Roles to Include in Your Team

Each role in a finance team brings unique strengths to the table:

• FP&A Analysts: These experts provide valuable insights through forecasting and budgeting, directly supporting strategic decisions [4].
• Finance Leaders: They steer major initiatives, maintain strong relationships with stakeholders, and balance technical skills with a deep understanding of business needs [1][2].
• Forecasting and Planning Specialists: Focused on creating detailed financial models, they improve planning accuracy and help anticipate future challenges [3].

To create a high-performing team, organizations should emphasize:

• Ongoing training and mentorship to keep skills sharp
• Aligning financial expertise with broader business goals
• Encouraging collaboration across departments
• Developing leadership capabilities for better decision-making

2. Use FP&A Tools to Improve Efficiency

Today’s finance teams rely on advanced tools to tackle the challenges of financial planning and analysis. The right FP&A software can streamline repetitive tasks and allow teams to focus on more strategic responsibilities.

Features to Look for in FP&A Tools

When selecting FP&A software, focus on features that enhance productivity and support strategic goals:

Comparing Popular FP&A Tools

Using FP&A tools can drastically cut reporting times - from weeks to just minutes [5]. This allows finance teams to shift their attention to more impactful projects. To get the most out of these tools:

• Set up automated workflows with dashboards for real-time tracking.
• Leverage scenario planning to prepare for and address potential risks.
• Maintain data accuracy while ensuring secure access for all team members.

A recent study found that 50% of CFOs prioritize positioning finance as a strategic partner by improving collaboration with the C-suite [5]. By adopting the right FP&A tools, finance teams can play a larger role in strategic decision-making and help team members focus on developing more advanced skills.

Once the right tools are in place, the next step is fostering collaboration across teams to fully capitalize on these insights.

3. Build Strong Collaboration Across Teams

Once the right tools and skills are in place, the next step for a finance team is to build effective collaboration. Finance professionals need to position themselves as trusted advisors who contribute to strategic decisions.

How to Work Effectively with Stakeholders

Strong relationships with stakeholders depend on clear communication and transparency. Here are some ways to improve collaboration:

• Share regular financial updates with easy-to-understand reports.
• Provide real-time access to metrics using automated dashboards.
• Work together on budgeting and planning efforts.
• Implement systems to identify risks and flag issues early.

These approaches help finance teams become reliable partners within the organization, speeding up decisions and improving efficiency.

Strengthening Relationships with Leadership

Building a strong connection with leadership is key to shaping strategy. To position finance as a go-to partner:

1. Offer Strategic Insights: Share data-driven recommendations that align with business goals.
2. Highlight Business Impact: Use FP&A tools to show how financial decisions influence operations.
3. Communicate Consistently: Provide regular updates on important metrics and potential risks.

Technology can make these tasks easier. Tools like Prophix One allow finance teams to deliver real-time insights and automated reports, giving leadership quick access to essential financial data [4].

Training also plays a big role in improving collaboration. Focus on developing both technical and interpersonal skills, such as strategic thinking, stakeholder management, and advanced analytics. These skills build on the foundation discussed earlier.

With strong collaboration in place, finance teams can shift their attention to providing actionable insights through precise reporting and scenario planning.

4. Focus on Reporting and Scenario Planning

Modern FP&A tools make reporting and scenario planning more efficient, helping finance teams provide actionable insights and prepare for uncertainties. These practices strengthen finance's role in guiding business strategy through data-backed decisions.

Simplifying Reporting

Clear reports and well-structured scenarios position finance teams as trusted advisors. Tools with automation and real-time integration make it easier to turn complex financial data into useful information.

Prophix One, for example, uses automated dashboards to help teams [4]:

• Automate data collection for better accuracy and faster reporting
• Display financial data in easy-to-understand formats
• Offer self-service access to insights

Similarly, Stratify's FP&A platform integrates business data to speed up analysis and improve forecasting accuracy [3]. While effective reporting ensures transparency, scenario planning equips teams to handle uncertainties and respond to changes effectively.

Staying Prepared with Scenario Planning

Scenario planning allows organizations to explore potential outcomes through systematic modeling and analysis. To make it work, teams need to focus on two key areas:

• Regular Updates: Keep models refreshed with current business drivers and emerging market trends.
• Collaboration: Work with operations, sales, and other stakeholders to gather diverse perspectives for realistic scenarios.

Finance teams can model various impacts by considering:

The goal is to strike a balance between adaptability and precision, ensuring scenarios are both realistic and actionable. With solid reporting and scenario planning, finance teams can align their efforts with overall business objectives and make a meaningful impact.

5. Align Team Goals with Business Priorities

When finance teams align their goals with broader business priorities, they become a driving force behind impactful decisions and measurable growth. This approach helps create a solid framework for data-backed strategies and long-term success.

Creating a Clear Finance Roadmap

A finance roadmap serves as a bridge between business objectives and actionable financial strategies. To make it effective, teams should focus on metrics that directly influence outcomes.

To ensure success, these goals should follow the SMART framework (Specific, Measurable, Achievable, Relevant, Time-bound), linking financial plans to the company’s overall direction.

Positioning Finance as a Strategic Partner

For finance to step into a more strategic role, the focus needs to shift from traditional reporting to providing actionable insights and guidance. Here's how:

Forming Strategic Relationships

• Offer real-time insights, participate in collaborative planning, and provide recommendations based on data to support key business initiatives.

Leveraging Technology

• Adopt tools that simplify forecasting, automate insights, and enable self-service access to critical data.

Modern FP&A tools make it easier to deliver timely insights and align efforts with business goals, enhancing teamwork and decision-making [4].

Once finance teams align their goals with company priorities, the next step is to invest in training and leadership development to further boost their impact.

6. Support Growth Through Training and Leadership

Building a strong finance team means investing in skill development and leadership growth. Today’s finance professionals need more than just traditional expertise - they require a mix of technical, strategic, and interpersonal skills to help drive business success.

Preparing for Future Challenges

Ongoing learning is key for finance teams to stay ahead. A well-rounded training plan should include both technical knowledge and interpersonal skills.

The best training programs balance structured lessons with real-world application, helping team members sharpen both their analytical and strategic thinking abilities.

Developing Leadership Across the Team

Leadership development strengthens the entire organization. To build leadership skills within the finance team, focus on these areas:

Mentorship and Project LeadershipPair mentorship programs with real-world project leadership opportunities. These experiences help team members improve decision-making, collaboration, and strategic thinking while preparing them for leadership roles.

Tracking ProgressUse clear metrics to measure leadership growth:

• Faster reporting cycles
• Better forecast accuracy
• Higher retention rates and positive team feedback
• Completion of key strategic initiatives

Technology can play a big role here. Tools like FP&A software can automate repetitive tasks, freeing up time for team members to focus on leadership development and higher-value work [3]. This creates space for both personal growth and strategic contributions.

Conclusion: Steps to Build a High-Performing Finance Team

Key Takeaways and Next Steps

Creating a top-tier finance team means blending technical skills, leadership growth, and teamwork. Here are three key areas to focus on:

1. Technology Integration

• Use FP&A tools thoughtfully to improve team performance.
• Choose solutions that clearly boost efficiency and productivity.
• Ensure technology enhances strategic decision-making, not just replaces manual tasks.

2. Team Development

• Combine technical training with leadership skill-building.
• Encourage collaboration across different departments.
• Offer clear career growth opportunities to keep team members engaged.

3. Performance and Progress

• Measure critical metrics like forecast accuracy and reporting speed.
• Keep an eye on stakeholder feedback and team productivity levels.
• Adjust your approach based on data-driven results.

The best finance teams strike a balance between strategy and daily operations while staying focused on growth. Regular evaluations help the team adapt to shifting business goals and market trends. By honing technical skills and fostering a strategic mindset, finance leaders can build teams that not only meet current demands but also prepare for future challenges.

FAQs

How to measure finance team performance?

You can evaluate a finance team's performance using Key Performance Indicators (KPIs) that focus on efficiency, accuracy, and their role in driving business strategy. Below are some key metrics to consider:

To improve how you track performance:

• Set clear KPI targets to define success.
• Monitor trends over time to identify areas of improvement.
• Use real-time dashboards for up-to-date insights and better decision-making.

While KPIs provide essential data, combining them with qualitative feedback gives a more complete picture. Regular reviews should assess both technical skills and contributions to broader business goals, ensuring finance teams remain vital to organizational success.