I help companies make better decisions.
I’ve put together a ‘white paper’ PowerPoint describing what is FP&A (Financial Planning Analysis). You can view / download the “white paper” from my website at:
http://dougneeper.files.wordpress.com/2012/07/fpa-what-is-it-draft.pdf (copy this url into your browser and hit enter should send you to my website / this article.
Doug Neeper July 2012
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DFN: Good article, too summarize, ‘you’ need to pick on a few, relevant KPIs; they’ need to be simple, understandable; relationship between KPI’s needs to be well thought out. Lastly, FP&A can and should play a major role in implementing a Key Performance Indicator process within companies.
Best Practices for FP&A Key Performance Indicators
By Thomas W. Smith
Published: 2012-06-25
As the old saying goes, “what gets measured will get managed.” While this adage holds up well over time, the successful implementation of Key Performance Indicators (KPIs) is anything but a given and definitely falls well short of being a cure-all for all that ails a business. Having KPIs tools in place and checking off a box is not enough. KPIs are not, on their own, transformational. They are simply tools, and there are a few basic pitfalls that all too often can accompany KPI implementation.
The good news is that FP&A professionals can and should play a major role in ensuring that well-designed KPIs end up being good tools when placed in the right hands.
Quantity vs. Quality
Too many KPIs can defeat the very purpose of using measurement to focus on key business driver improvement. After all, there really is a limit as to how much information humans and their organizations can digest. Simply stated, too many KPIs, or the wrong KPIs, can detract focus and add hidden costs, as unnecessary administrative burden is imposed upon those responsible for collecting, summarizing, and analyzing KPI data. In extreme cases, it becomes the classic case of analysis to paralysis.
Companies can maximize return on their KPI investments by paring the number of KPIs down to the right handful of truly essential measures. The selected KPIs and associated targets should together paint the portrait of success that a company or business unit seeks. FP&A professionals can and should take a leading role in urging the organization to take a step back to assess or reassess whether or not it has selected a manageable number of high-quality KPIs.
Complexity vs. Clarity
Even the best of planning intentions can yield a set of KPIs that the average employee does not fully comprehend. Financial and technical measures are particular areas of risk in this regard, and this risk multiplies considerably when a poor or non-existent communication plan accompanies implementation. Not to worry, though, as this only really becomes a significant problem if we are looking for people to understand how what they do impacts organizational success. As long as the top leaders in the company understand the KPIs, it’s all good, right? Unfortunately, companies who believe this and think along these lines are destined to miss out on employee engagement as a key lever of KPI success.
The smart money says companies are well-advised to keep KPIs as simple and straightforward as possible so that employees have a chance of actually doing things that they know will drive a few simple, straight-forward measures in the right direction.
Conflict vs. Coexistence
It is entirely understandable that a company’s top leadership will want to maximize just about everything that is good and minimize just about everything else that is bad. Consider the case of a company that has already moved its production offshore to cut its direct costs of production (no doubt one KPI nailed right there!), while at the same time establishing KPIs to reduce transportation costs, improve time-to-market, and maximize customer service. Well, reality is chiming in to say that it may not work exactly as planned. While each KPI is a good pursuit on its own, this highly-combustible KPI mixture makes for the perfect storm in terms of promoting competing objectives and sparking organizational discord.
It pays dividends for companies to take the necessary time to understand the potential conflicts and behavioral impacts that they may unknowingly be designing directly into their KPI measurement systems. Perhaps they may also be giving managers too much credit for being able to mediate these conflicts on the front lines. FP&A professionals can and should play an important role in helping business leaders to quantity the KPI trade-offs that will be required to keep highly-interactive KPI equations in balance.
Call to Action
Current publications increasingly trumpet the emerging “star power” of FP&A and its potential to really change the finance world. Just like the high-potential athlete who has tremendous natural abilities, it is clearly not a given or an automatic that FP&A will turn out to be a game changer. KPIs are an excellent example of where FP&A can and should play a major and highly visible role in helping business leaders and their organizations to succeed. What a great way for FP&A to achieve its full potential and maximize its organizational relevance!
Thomas W. Smith, Director, FP&A Home Systems Division, Legrand North America, is a member of the FP&A newsletter editorial advisory board. This article originally appeared in the June issue of FP&A.
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DFN: I’ve been wondering how I can use social media sites (facebook, twitter, you tube, etc.) to further my job search. This article which appeared on Glassdoor and
was written by Jessica Holbrook Hernandez gives me some though
How Hashtags Can Help Your Job Search On Twitter
Posted by onTargetjobs • November 16th, 2011 • 1 CommentShare on email Originally posted on onTargetjobs by Jessica Holbrook Hernandez
Everyone probably remembers the first time they heard about Twitter and about how young people were throwing around their one-liners about sitting on the porch, walking to the mailbox, walking back to the porch, sitting down… well, you get the picture. But since that time, Twitter has evolved into an amazing resource for companies seeking customers – and even job seekers looking for work.
One reason that seekers have had success landing jobs through Twitter is because of the use of hashtags, which function as mini search tools. They help others find you and your comments based on your use of the number sign (#) followed by specific words (e.g.,
#lookingforwork).
Let’s take a closer look at how they could help you find a position.
1. Hashtags Help You to Network Successfully
Hashtags have worked wonders for job seekers attempting to reach out to networks of people in hopes of acquiring help in finding work. This is because networking has become its own beast on Twitter, and hashtags have functioned as its catalyst.
For instance, if you use the hashtag #biopharma, and then note that you’re looking to network with others who are seeking work in the field, you’re likely to connect with others who have utilized or searched the same hashtag with the same interest.
Twitter is a community created to communicate and connect with others, so take this opportunity to meet new associates with similar interests.
2. Hashtags Help Recruiters and Hiring Managers Find You
Another great use of Twitter hashtags is sending out the message that you’re looking for work. This has been accomplished with great success under the #hirefriday hashtag, which is utilized on Friday to help both recruiters and hiring managers find job candidates who are actively seeking employment.
There are other hashtags out there to help recruiters and hiring managers find seekers if the seekers incorporate them into their tweets. They include #dreamjob, #hireme, #internship, #laidoff and #jobsearch.
The candidate could also expect this communication to come in the form of an email. I always loved communication via email; if someone had a really standout resume, then I would just email the candidate to set up a time to either: a) chat over the phone, or b) schedule the initial in-person interview.
3. Top Job-Seeking Hashtags
By conducting your own Twitter searches, you’re likely to locate job opportunities that could help you find work. Here are some popular hashtags companies and recruiters use to lure candidates: #benefits, #career_fair, #compensation, #hiring, #HR, #interviewing, #jobposting, #recruiting, #resumes, and #training.
And if you’re hoping to draw some attention to your own search, consider these hashtags: #BA, #CV, #resume, #employment, #jobhunt, #MS, #needajob and #resume, along with your short message that incorporates a tiny URL linking to your resume.
When using hashtags, it’s good to utilize ones that are likely to be searched by others so that recruiters and networking buddies can find you. Twitter can indeed function as a playground for the young at heart, but with the right use, it can also function as a vehicle to reenter the workforce.
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DFN: Saw this article on http://www.renewablesbiz.com. Sad that a good program aimed at stimulating the solar industry may now be gutted. Was Solyndra a mistake? Yes. Are all companies who have gotten loans, or are applying for loans, Solyndras waiting to happen. NO. I used to work for Solar Millennium LLC (SMLLC), which had a $2B billion federal loan guarantee, and at the last moment decided not to sign the papers to get the loan. Why? SMLLC management decided the project (Blythe) and the technology (Thermal) was too economically marginal. At least partially as a result of this action, SMLLC went into bankruptcy and is no more. It fell on a sword so other companies could still take advantage of the loan program. Let us not make SMLLC death be in vain! I’d prefer to think that the clear majority of companies involved in our country’s solar future are in the SMLLC camp and not the Solyndra camp. Sad that our energy policy may be misguided by the Solyndra aberration.
House committee considers No More Solyndras Act
Bill Opalka | Jul 12, 2012
A U.S. House committee put the Obama administration clean energy policy on trial as it considered legislation that would essentially end the federal loan guarantee program for clean energy technologies.
Dubbed the “No More Solyndras Act,” the law would sunset the program with the applications that were filed by last Sept. 30. The bill is named after the showcase solar manufacturing company that received the first loan guarantee and later declared bankruptcy. Taxpayers are on the hook for $527m.
“There’s more than enough evidence to show that this program is a failure,” said Rep. Ed Whitfield (R-Ky).
Democrats characterized the hearing as grandstanding before the election for a bill that has no chance of Senate passage or an eventual signature by the president.
“They are using inflammatory press releases,” to disparage successes of the program, said Rep. John Dingell (D-Mich.).
The Energy Policy Act of 2005 set up the program and it was launched in 2007 under former President Bush. David G. Frantz, Acting Executive Director of the Loan Programs Office U.S. Department of Energy, was grilled by the committee. He said 87% of the loans have been made to successful projects, while Congress anticipated some failures when it passed the legislation.
Frantz has been involved with the program under Bush and Obama and defended its record of review and approval of projects.
Committee chair Rep. Cliff Stearns (R-Texas) noted that three of the first five loan guarantee recipients are bankrupt.
Solyndra and energy storage company Beacon Power declared bankruptcy in 2011. Frantz said the government has recovered 70% of the $43m Beacon got under its loan guarantee. Abound Solar declared bankruptcy last week. It received a $400m loan guarantee but had only drawn down $70m as it failed to reach performance benchmarks and funds were shut off late last year.
Frantz said the loan office has committed or closed $35 billion in direct loans and loan guarantees, which finance nearly three dozen projects, with total project costs greater than $55bn.
He added the draft legislation would hamstring DOE’S ability to continue the program. The major part of the hearing considered the ability of the government to subordinate its interest behind private investors when a company is failing.
Solyndra’s loan was restructured in such a way that the government moved further downs the lie in the bankruptcy and is not going to be repaid.
Frantz said there was no other way to attract private capital to the failing company. “this is a tool of last resort,” he said.
Republicans framed it as a program run amok filled with shortcuts to expedite loans that benefitted politically connected donors
The Solar Energy Industries Association (SEIA), as expected didn’t like the tone of the hearing and immediately released a statement to that effect.
“Unfortunately, the discussion draft – as was noted on multiple occasions in the legislative hearing – would ‘throw the baby out with the bathwater.’ The loan program has been utilized on a bipartisan basis to leverage private capital to promote transportation, health care, education, housing and energy infrastructure policies. The provision in the discussion draft that sunsets DOE’s loan program would hinder our nation’s ability to develop innovative energy infrastructure projects. In solar alone, this program has achieved a number of notable successes. Chief among these are 11 utility‐scale solar power plants in the Southwest, totaling 2,700 megawatts – enough to power 500,000 homes,” SEIA President and CEO Rhone Resch said.
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DFN: Found this to be good job search advice. Of course, it can’t be uniformly applied
JBCStyle | Top Ten | Looking for a New Job? Break The Rules, Get Results
There’s a process involved in the hunt for a new job. To start, you finesse your resumé. Next, the cover letter is crafted and the resumé is dispatched via an online application, email, a postal service or by hand. The latter methods are almost extinct.
Now what? Wait a few days to follow up? Maybe you score an interview; there are rules for that too. Keeping up with the rules can be exhausting. Sometimes it doesn’t hurt to break the rules and who says that’s a bad thing? As times have changed, veering away from the norm could prove beneficial in today’s job market
Our new rebel approach was inspired by Alison Green’s article for U.S.News & World Report: “10 Job Search Rules to Break.”
1. Your resumé does not have to be condensed to one page. If you have the experience and the background to justify expanding your resumé, go for it. A one-pager will suffice if you are an entry-level candidate; but if you feel the need to venture to page two or three to display all you have to offer, this rule is worth breaking. Your only other option is to use a six-point font and that is NOT recommended.
2. Write as if you are speaking to a real person. Because you are. If you use a thesaurus to fluff up your resumé and cover letter, we suggest going back to the original words you typed. The person reading your documents will not be impressed with fancy words and numerous syllables. They want to get to know you and the best way is through your words. Remember, honesty, grammar and structure are key in regards to quality.
3. Ditch the objective. Our entire team of recruiters will agree, including an objective on a resumé is outdated and irrelevant. Obviously your objective is to be the best candidate for the role in which you are applying. Why waste valuable space reiterating your intentions? Replace with career highlights or a skills summary if you insist on an introduction. Another option, get straight to the point and lead with your experience.
4. Education comes last. Relevance. Relevance. Relevance. Employers are first and foremost interested in your work experience. Your achievements and professional background carry more weight on your resumé and will be the deciding factor on whether or not you are considered for the job. Growing up, education came first. Now that you’re an adult, on the resume, education comes last.
5. Don’t include “references available upon request” on the bottom of your resumé. This is a rule from a time long ago. If the employer want references, they will ask. They don’t need permission via a formal statement.
6. After you submit your resumé, email or call to follow up, not to schedule an interview. Unfortunately, submitting your resumé doesn’t guarantee an interview. You may think you are perfect for the job but many factors may prove otherwise. For instance, the employer may have already started interviewing, the job may be on hold or someone may have been promoted from within. On the other hand, it’s perfectly fine to email or call to ensure your email/mail was received.
7. Don’t be afraid to reap the benefits of a recruiting agency. Despite what you may have heard, recruiting agencies don’t just work for the employers. A respectable agency also has the best interests of their candidates in mind. After all, placing talented individuals in roles in which they are qualified is a reflection of the agency. If you’re looking for an edge, find an agency that caters to your expertise. You’ll find there are jobs out there that are not advertised on job boards or on the company’s website.
8. Your weakness is not a positive. Just answer the question. Honestly. Everyone has a weakness and although it’s admirable you’ve triumphed by finding the positive in a negative, the employer is interested in an example that represents your abilities. Think of a weakness as an incident in which you have overcome and explain how. For example, your weakness could be you have a hard time prioritizing and you’ve overcome this by requiring yourself to make a weekly schedule and stick to it. Then, you can elaborate on your results.
9. It’s okay to talk money. The online application process has been a game-changer in the job market. Part of the application process may include naming your salary range in order to submit your application. Be prepared to talk money by researching the salary range of comparable positions in your geographical area. Don’t be afraid that naming your salary requirements will result in underselling or overselling yourself and cost you a job offer. If you’ve accurately researched your field, you and the employer should be on the same page.
10. Perseverance can come off as being too aggressive or trying too hard. True, employers want to know you are determined in your pursuit; but only to a certain extent. When it becomes obvious to the employer that you would do anything to get the job, it can be misinterpreted as desperation which will trigger the employer to ask, “Why is this person trying so hard?” A tip from Green, “treat the interview as a collaborative process where you’re both concerned with finding the right fit.”
Barbara Robinson
Designer/Brand Manager
323.217.5414
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