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Many companies claim to do FP&A. Yet in reality, FP&A is still too often reduced to an annual budgeting exercise, an accumulation of Excel files, and analyses produced after the fact. The numbers are there, but the decisions are made elsewhere—sometimes without any real financial insight. The real issue, therefore, is not whether FP&A exists, but its level of maturity.
A mature FP&A function does not simply look backward. It anticipates, sheds light on trade-offs, and connects strategy to operational execution. So let’s be direct: where does your company truly stand today?
FP&A Maturity: A Question of Usage, Not Tools
Financial Planning & Analysis (FP&A) encompasses all the practices that enable finance to play an active role in decision-making. This includes planning processes, financial models, team skills, and of course, tools.
But FP&A maturity is not measured by the number of spreadsheets or the level of technological sophistication. It is measured by one simple thing: the ability of finance to help leaders make decisions, here and now. When FP&A is immature, finance is subjected to the numbers rather than transforming numbers into decisions.
The Four Levels of FP&A Maturity
Level 1 – Reactive, Backward-Looking FP&A
At this first level, the FP&A function is essentially transactional. Finance spends most of its time producing reports, consolidating Excel files, and explaining variances after decisions have already been made.
The annual budget is fixed, forecasts quickly become obsolete, and scenarios are almost nonexistent. FP&A acts more as an administrative support function than as a strategic partner. In this context, decisions are often made based on intuition, due to the lack of reliable financial simulations.
Level 2 – Structured but Still Defensive FP&A
At this stage, the company begins to structure its practices. Budgeting processes are more formalized, monthly tracking is better defined, and performance indicators are clearer. Finance starts to engage in dialogue with operations, but FP&A remains largely focused on control and compliance. Forecasts exist, but they quickly lose relevance. Scenarios are possible, but rarely used to drive decisions.
FP&A is progressing, but it remains reactive to events.
Level 3 – Decision-Oriented and Collaborative FP&A
This is often where the FP&A function truly changes dimension.
Companies at this level use rolling forecasts, rely on financial models to simulate concrete decisions, and foster active collaboration between finance, sales, and operations. FP&A is no longer isolated; it is embedded in the decision-making process. FP&A or EPM tools, such as Workday Adaptive Planning or Vena Solutions, begin to play a structuring role. But above all, numbers finally serve to arbitrate, prioritize, and anticipate.
FP&A becomes a performance management tool rather than a simple reporting function.
Level 4 – Strategic and Predictive FP&A
At the most advanced level, FP&A is fully integrated into the company’s strategy.
Forecasts are continuous, scenarios are dynamic, and financial data is enriched with operational and non-financial data. Reporting is largely automated, freeing up time for analysis and strategic thinking. At this level, FP&A acts as a co-pilot to the CEO and CFO. It anticipates risks, clarifies structural choices, and actively supports growth.
Why FP&A Maturity Has Become a Key Issue in Québec
In an environment marked by economic uncertainty, margin pressure, labor shortages, and increasingly complex investment decisions, Québec companies can no longer afford a finance function focused solely on the past.
FP&A maturity directly influences:
- the quality of decisions,
- speed of response,
- the ability to adapt to change.
An immature FP&A function slows down the organization and undermines competitiveness.
How Do You Really Know Where You Stand?
Rather than comparing yourself to theoretical benchmarks, ask yourself a few simple questions:
- Are your forecasts still useful a few months after they are produced?
- Do you use your financial models to make decisions, or only to present results?
- Do finance, operations, and management speak the same performance language?
- Can you quickly simulate the impact of a strategic change?
- Does your FP&A team spend more time analyzing or consolidating data?
Your answers often provide a very clear picture of your maturity level.
Evolving FP&A Maturity: A Progressive Approach
Increasing FP&A maturity does not mean transforming everything overnight. Companies that succeed typically start by:
- clarifying the role of FP&A in decision-making,
- rethinking financial models so they are truly useful,
- gradually moving to continuous forecasting,
- aligning finance and operations around shared indicators,
- equipping themselves with FP&A tools when complexity justifies it.
FP&A maturity is less a question of technology than one of usage and decision-making culture.
In Conclusion
FP&A maturity is not an abstract concept. It is a concrete lever for performance and resilience.
Companies that invest in decision-oriented FP&A make better decisions, faster, and with greater confidence. At Modelcom, we help organizations assess their FP&A maturity level and build a realistic path toward more strategic, more useful, and more action-oriented financial management.
Frequently Asked Questions About FP&A Maturity
What is FP&A maturity?
It is an organization’s ability to use financial planning and analysis to anticipate, decide, and manage performance, rather than simply producing reports.
Why is FP&A often immature?
Because it has historically been centered on annual budgeting, Excel, and reporting, at the expense of simulation and decision-making.
Is an FP&A tool enough to improve maturity?
No. Tools are accelerators, but maturity primarily depends on models, processes, and how they are used.
When should you invest in advanced FP&A?
When decisions become complex and forecasts quickly lose relevance.
Is FP&A only for large companies?
No. SMEs and mid-market companies can gain a major advantage if FP&A is adapted to their reality.
Where Does Your FP&A Maturity Stand?
FP&A maturity measures a company’s ability to use financial planning and analysis as a strategic decision-making tool. It evolves from reactive, reporting-focused FP&A to predictive and strategic FP&A. The highest-performing organizations use FP&A to anticipate, simulate, and manage performance.
Do you truly know where your FP&A maturity stands? Modelcom supports you in assessing your current situation and building an FP&A roadmap aligned with your strategy, tools, and ambitions.
Contact us to discuss your FP&A maturity and performance management challenges.