Anders Liu-Lindberg, Co-founder and Partner of the Business Partnering Institute, gave this presentation at the FP&A Summit, 2023.

The mission of FP&A is to drive the right strategic choices in the company. Although FP&A professionals spend a lot of time working with data, crunching numbers, and putting together management presentations, the role is really about identifying strategic opportunities and driving growth.

So, how can your FP&A function drive business growth?

Keep reading to find out!

FP&A’s role in strategizing

If you want to make FP&A a growth driver, you need to know how to work strategically.

Back in 2018, McKinsey published a book ‘Strategy Beyond the Hockey Stick’ and in it, they featured the concept of a power curve. This is where they ranked every industry based on its ability to create value (measured as economic profit). 

Industry power curve
(The data is dated, but it’s more for illustrative purposes).

The point is that the 20%, most value-creating companies create significantly more value than the rest. You could probably even argue that the rest don't create any value. So, all value in the world, at least in the corporate world, is created by these top 20%.