FP&A and the

Pathway to CFO
by Carl Seidman
CPA/CFF, CSP, CFE, CGMA, CIRA, AM

seidman nancial.com

© Copyright 2022 Seidman Global LLC. All Rights Reserved.

 FP&A and the Pathway to CFO

Is FP&A a pathway to CFO?

The short answer to the question: YES. Is it the 'ideal' pathway? Let's explore.

A recent Deloitte survey found that 47 percent of CFOs had at least some
experience in FP&A before they landed their executive positions.

Of course, that doesn’t mean that everyone who starts their career in FP&A
will end up as a CFO. There’s only one CFO in most companies, while there
can be dozens or hundreds of people on an FP&A team.

But, if you have your eyes set on the position of CFO, FP&A is an excellent
place to start.

Understanding Reporting Structures in Traditional

Organizations
Let’s start by looking at how the nancial department of a traditional
organization is structured.

In a standard organizational chart, the positions of FP&A and Controller

usually both report to the CFO. While the Controller is responsible for
accounting and nancial reporting, FP&A focuses on strategic planning and
decision support.

What Does a CFO Do?

The CFO is the top nancial executive in an organization. In addition to being
a nancial expert, the CFO is a business strategist who can analyze nancial
data and make decisions about how the company should move forward.

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 FP&A and the Pathway to CFO

Here are some of the key aspects of a CFO oversight:

Reporting

The CFO almost always reports directly to the CEO. Additionally, the CFO likely
reports to the Board of Directors and outside stakeholders, such as investors
and lenders.

Forecasting

CFOs understand the ins and outs of the company’s nancial performance.
They know where the company has been, where it’s going, and what it needs
nancially and strategically to reach its objectives. In addition, CFOs are adept
at forecasting and anticipation. He or she can make informed projections
based on a company’s historical data, current circumstances, and future
predictions.

Industry knowledge

CFOs need to possess more than just nancial expertise. They should have
signi cant industry and institutional knowledge to make decisions based on a
larger context. This is crucial because the CFO tends to oversee major
projects, expansions, and re-organizations.

Networking

A successful CFO has a robust network, including close relationships with

lenders and investor groups. He or she may be part of a mastermind or peer
groups of other CFOs. As the most senior of all nancial professionals, there
is an expectation of expertise and experience that comes from greater
awareness of the industry, economy, and commercial sector.

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 FP&A and the Pathway to CFO

Leadership

CFOs should have leadership experience. They oversee Controllers and

Finance Directors along with FP&A and treasury functions. This means more
than just technical expertise – it requires having a personal touch and ability
to lead, direct, and manage teams. They should also have excellent
presentation skills as well as written and verbal communication skills that
makes this possible.

Additional skills

It doesn’t hurt for CFOs to have experience with fundraising, mergers and
acquisitions (M&A), or corporate revitalization, especially if they work for a
company that prioritizes transaction-driven growth or is experiencing a
turnaround. The ability to think strategically, technically, and critically sets
them uniquely apart as the nancial captain of a larger crew.

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 FP&A and the Pathway to CFO

How Working as FP&A Prepares You for the

Role of CFO
Because CFOs need to be familiar with the Controller and FP&A roles, they
likely have a background in one or both. However, key differences between
the functions of Controller and FP&A make the latter a more likely path to
CFO.

FP&A vs. Controller

Usually, both the FP&A and Controller teams report directly to the CFO.
However, these two nancial teams have different priorities.

The Controller or accounting team is responsible for duties like:

Budgeting

Compliance

Taxes

Record-keeping

Accounts receivable/payable

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 FP&A and the Pathway to CFO

In contrast, FP&A manages the strategic aspects of a company’s nance. A

typical day for an FP&A professional might include:

Strategic planning

Business modeling

Risk management

Forecasting and projections

External communications

Transactions and M&A

As you can see, the position of CFO more closely aligns with the
responsibilities of FP&A than those of a Controller or accounting. FP&A is
closely tied to executing a company’s strategic plan and ensures that nancial
and operational decisions support that strategic plan.

Understanding the FP&A Reporting Structure

A typical organizational chart has multiple layers between the FP&A team and
the CFO. Let’s walk through the various roles you might encounter on an FP&A
team.

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 FP&A and the Pathway to CFO

Head of FP&A

The FP&A function typically has a leader. That leader can go by different
names, such as “Head of FP&A,” “Senior Vice President of FP&A,” or “Director
of FP&A.” I even recently worked with a publicly-traded company with a
“Global Head of FP&A.”

Don’t get hung up on the title. The main point here is that someone must be
the leader of the FP&A team. That’s the person who reports directly to the
CFO and manages the rest of the FP&A team. I’ll refer to this leader as Head
of FP&A for our purposes.

The Head of FP&A reports directly to the CFO and gives them data analysis
forecast models and data intelligence that supports other groups within the
company. This is an excellent position for anyone who wants to be a CFO
because it offers insight into a company’s nancials and provides hands-on
training for what it’s like to act as a CFO.

Senior FP&A leaders

Under the FP&A leader are several senior-level leaders who report directly to
the Head of FP&A. What these leaders do will vary by company.

For example, there might be a senior FP&A leader who handles a speci c
customer channel of the business (e.g., a consumer segment.) In addition,
there could be senior FP&A leaders for product channels, geographic regions,
or functional roles where FP&A is deeply entrenched in a particular operating
group (e.g., data analytics or procurement planning).

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 FP&A and the Pathway to CFO

FP&A managers

FP&A managers are responsible for managing team members who execute
tasks and processes within each segment of the FP&A team. They have
experience in the individual tasks and processes and thus are in a position to
oversee them. Managers commonly report to the senior FP&A leaders rather
than to the CFO.

FP&A team members

These are the “boots on the ground” team members who execute the
decisions made by FP&A managers and leaders. When rst starting out with
FP&A, this is likely where a new person will be. It’s a great place to get
relevant experience, sharpen skills, and learn. In time, movement up the
organizational chart occurs as valuable experience is gained, ultimately
setting up opportunities for leadership roles.

Of course, not every company is structured this way, so every FP&A

professional’s experience will be different and. Some organizational charts
are more vertical, while others are atter. Instead of worrying about a job title,
focus should be on learning about the company and gaining industry and
institutional knowledge to move up the hierarchy and become an FP&A
leader.

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 FP&A and the Pathway to CFO

Should You Pursue FP&A if You Want to be a

CFO?
In short, yes. If your ultimate goal is to be the CFO of a company, then taking
the FP&A path is an excellent way to get there.

As an FP&A professional, you will gain expertise in nance, strategy, analysis,

industry, and institution, all of which are crucial for the role of CFO.

I wish you the best in your nancial pursuits.

Carl Seidman,
Principal, Seidman Financial

Contact Information:

Email: carl@seidman nancial.com

Mobile: +1.773.359.3646
Website: seidman nancial.com
LinkedIn: www.linkedin.com/in/carlseidman

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 FP&A and the Pathway to CFO

About Seidman Financial

Learning & Development Program That Empower -- Not Just Upskill
We've perfected the process of FP&A professional development and offer multiple
way to effect change

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 FP&A and the Pathway to CFO

FP&A Inner Circle Masterminds

The most immersive strategic nance masterminds and coaching for FP&A

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 FP&A and the Pathway to CFO

Partial Client List (Current and Prior)

Large Corporates Mid-Sized and PE-Backed Businesses
Verizon OnDeck Capital
Cigna AlixPartners
Spotify BI Incorporated
Michelin Fortuna Silver Mines
Express Scripts Solar Turbines
Broadridge Sloan Valve
Allscripts Pulse Network
Walmart Conway MacKenzie (Riveron)
Deloitte Chi’Lantro
KPMG Belroc Group
Hewlett Packard Enterprise Accupac
Discover Financial Services Quin Global
Choice Hotels OutSystems
Santander Erie Insurance
HCP, Inc.
ABM Industries Professional Organizations
Genentech
Cox Enterprises
American Institute of Certi ed Public Accountants
Marsh & McClennan
Association for Financial Professionals
Outsystems
American Management Association
U.S. Steel
Illinois CPAs Society
Crawford & Company
National Association of Certi ed Valuators and Analysts
EVRAZ
Wall Street Prep
Sol Petroleum
Universal Business Team (UBT)
Fresenius-Kabi
Telus
CIBC Government and Not-for-Pro t
CHEP
University of Wisconsin-Madison
NerdWallet
University of Illinois-Urbana Champaign
FS Investments
American Chemical Society
Whole Foods
Fannie Mae
International Game Technology
Freddie Mac
United Technologies
U.S. Department of Housing and Urban Development

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About Carl Seidman CPA/CFF, CSP, CFE, CGMA, CIRA, AM

Principal, Seidman Financial

Carl Seidman is a trusted business advisor specializing in nancial planning & analysis
(FP&A), business strategy, and nance transformation. He advises Fortune 500
corporations and middle-market companies, helping establish effective FP&A practices,
processes, and teams. At the same time, he supports nancial professionals,
positioning them for greater control over their careers by helping build their competence
and con dence while eliminating time-wasting activities and mistakes.

Carl’s FP&A development methodologies and curriculums have been implemented by

leading organizations as part of their nancial leadership development programs
(FLDPs) for top talent and emerging leaders. More than 13,000 corporate nance
professionals globally have attended his training programs, workshops, and seminars.
Carl also serves as an FP&A, CFO advisor, and management consultant to
entrepreneurial businesses throughout North America and Europe and assists them
with strategic nancial planning, value enhancement, and revitalization.

Carl is a Certi ed Public Accountant (CPA) has earned other professional credentials
including the CIRA, CFF, CFE, CGMA, AM (Accredited Member in Business Valuation),
CSP (Certi ed Speaking Professional (CSP), Certi ed Anaplan Model Builder, and was

a National Association of Certi ed Valuators and Analysts (NACVA) 40 Under Forty

honoree. He holds a BA in nance and economics and an MS in managerial
accounting.

Carl lives in metro Chicago with his wife and twin sons.