Business Partnership in FP&A: Insights from Rina Kacker

FP&A Leaders’ Series: Rina Kacker Highlights the Crucial Role of Business Partnership in FP&A

As businesses continue to navigate an increasingly complex financial landscape, the role of Financial Planning and Analysis (FP&A) leaders becomes more critical. As part of our FP&A Leaders Series, we recently sat down with Rina Kacker, an experienced finance professional with a diverse background spanning tech, e-commerce, SaaS, EdTech, and biotech. She shared valuable insights into the evolving role of FP&A and finance business partnership.

Here, we explore key takeaways from the conversation that underscore the importance of effective business partnership in FP&A.

Defining Business Partnership in FP&A

According to Kacker, business partnership in FP&A goes beyond mere financial oversight. It involves optimizing the use of company resources—cash, headcount, facilities, and IT infrastructure—to achieve both current and future goals. This approach requires FP&A leaders to act as gatekeepers of discipline, ensuring that resources are utilized effectively without hindering the company’s progress.

"Business partnering brings all of this in balance and saves resources for the long run," Kacker noted. This perspective highlights the need for FP&A to be seen not just as a cost center but as a strategic arm of the organization. 

Overcoming Challenges in FP&A Business Partnership

One of the primary challenges in FP&A business partnership is gaining alignment and buy-in from the C-suite. Kacker emphasized the importance of having the support of top executives to ensure that FP&A initiatives are embraced across the organization. She pointed out that without this alignment, FP&A efforts can be sidelined, leading to suboptimal decision-making.

In her experience, Kacker found that one effective strategy is to ensure FP&A has a seat at the table during key departmental meetings. "FP&A should have a seat at the table and should have a small segment for any finance-related budget," she stated. This involvement allows FP&A to provide timely financial insights and ensures that all departments are aligned with the company’s financial strategy. 

Best Practices for Building Alignment

Kacker shared several best practices for building alignment across departments:

1. Regular Communication: FP&A should be actively involved in departmental meetings and keep all stakeholders informed of financial updates and forecasts.
2. Education and Collaboration: Helping non-finance leaders understand financial reports and metrics fosters better collaboration. Simplifying financial information and providing context can bridge knowledge gaps. Additionally, Kacker emphasized the need for Finance to understand what's top of mind for their business partners and establish a collaborative cadence. “Ensure the operational numbers come from the organization you're supporting, not just finance. This fosters ownership and alignment.“ ‍
3. Transparent Processes: Clearly communicating the reasons behind budget variances and involving departments in the budgeting process can reduce friction and promote a sense of ownership. Kacker stated: “It's important to communicate that being over or under budget isn't inherently good or bad—it depends on the reasons and allows for course correction.” 

Navigating Industry-Specific Challenges

Kacker’s diverse experience across industries provided her with a unique perspective on the specific challenges faced by FP&A in different sectors. For instance, in biotech, managing large, multi-year contracts with finite cash runways is crucial. Conversely, in SaaS, navigating complex hosting service agreements and commission structures requires meticulous planning.

Regardless of the industry, Kacker emphasized the importance of flexibility and adaptability. FP&A leaders must be prepared to adjust strategies based on evolving business needs and external factors.

Leveraging Technology and Data

The interview also touched on the challenges posed by slow processes and lack of real-time data. Kacker highlighted the importance of leveraging technology to improve efficiency. Implementing robust planning systems, such as Stratify’s FP&A software, allows FP&A teams to provide real-time financial insights and reduce reliance on outdated reporting methods. 

Developing Essential Skills for FP&A Leaders

To be effective business partners, FP&A professionals need to develop a range of skills. Kacker stressed the importance of being able to identify key areas of focus within the organization and establishing strong relationships with business partners. 

Additionally, simplifying complex financial information and using planning systems to enhance transparency are critical skills for modern FP&A leaders.

 "Stay close to your business partner, establish yourself as a collaborator, and ensure the numbers come from the organization you're supporting," Kacker recommends. 

In this article, top 20 FP&A hard and soft skills to master drive home points in our discussion.

Empowering FP&A for Strategic Impact

The insights shared by Rina Kacker underscore the important but often overlooked role that FP&A plays in driving business decisions and truly becoming the beating heart of the organization. 

By fostering strong business partnerships, gaining alignment across departments, and leveraging technology, FP&A leaders can be the catalysts that ensure their organizations are well-positioned for long-term success. 

As Kacker put it, "FP&A should feel empowered to take their insights straight up to leadership.  We see trends early and can propose proactive measures to mitigate risks. It's about using our unique cross-departmental lens to create awareness and drive strategic decision-making.”

Embracing these best practices and fostering a culture of collaboration and transparency is key to unlocking the full potential of the financial planning and analysis role.

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