The Benefits ofCertification for

FP&A Professionals

Sara NicholsVP of Finance, Kforce Inc.March 15, 2013

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Content Based on AFP Whitepaper

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Agenda

Why the FP&A Certification?

Role of AFP in the Certification

FP&A as a Profession and Function

Certification Development and Timeline

Questions/Comments

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Why the FP&A Certification?

Role of Professional Certification

Develops people- acquisition of knowledge, skills and abilities

Qualifies people- confirmation that people have required knowledge, skills and abilities

Distinguishes people- differentiates between proficiencies

Recognizes people- acknowledgement of people who consistently perform to standards

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Role of Professional Certification

Helps employers by: better defining and developing technical job

competencies identifying job candidates who have acquired those

attributes

Helps practitioners by: developing knowledge and skills required to perform

technical job competencies recognizing competence - elevating professional status advancing career and improving marketability

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Role of AFP in the

FP&A Certification

AFP Mission

To be the global resource and advocate for the finance profession

Network of 16,000 individual members and 150,000 registered subscribers worldwide

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AFP Experience as Certifying Body

Sponsor of the Certified Treasury Professional (CTP) and Certified Cash Manager (CCM) credentials

Earned by more than 24,000 individuals in 54 countries since 1986

2,500~ individuals register annually to take exam

83% of Fortune 500 companies hire CTPs

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AFP Experience as Certifying Body

AFP has demonstrated know-how to: develop and maintain a psychometrically

sound and legally defensible credential according to industry approved best practices

develop and use professional standards to certify individuals

to facilitate and administer a certification created by and for finance practitioners

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Resource for Reliable, Unbiased Content

30+ years as provider of educational programs

Original content, practitioner driven: not a pay-to-play model

Publisher of body of knowledge for a certification

Not-for-profit organization

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FP&A as a Profession and Function

What is Included in the FP&A Function?

Ownership of Core Processes and Enabling

Technology, Drive Standardization

Corporate & Business Reports &

Analysis

Forecasting (demand, cash flow,

performance)

Analyze Results and Trends, Model

Scenarios

Preparation of Financial Presentations for BOD

Financial Measures and Performance

Metrics

Coordination with Divisional Teams on

Key Deliverables

Strategic Planning and Budgeting

Financial Planning &

Analysis

Financial Planning &

Analysis

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FP&A as a Field / Function

High value in being able to transform data into knowledge (Where can the organization produce greatest ROI?)

Growing importance of function (Where is the company going?)

Practitioners taking on expanded roles in FP&A practice within organizations

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FP&A as a Field / Function

Sits at intersection of Accounting Treasury Finance

andSales Operations Investor Relations

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Challenges Facing FP&A Professionals

Varied organizational reporting structures, inconsistent visibility

Limited professional development resources available higher education continuing education best practices

No agreement on job performance competencies

Little consensus on proper techniques companies use to model and forecast

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Field of Financial Planning and Analysis

“The hottest position today is financial planning and analysis.”

(Korn Ferry International’s Chuck Eldridge, 2009)

“64% of executive level (CFO, CEO) [survey] respondents report FP&A hardest position to fill.”

(APQC/ American Productivity and Quality Center, Sept, 2012)

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Certification Development and

Timeline

FP&A Certification Drivers

Need for:

1. Defined universal principles and standards of practice for the complex FP&A profession

2. Practitioners to be recognized for their understanding of those complex processes, tools and best practices and therefore well-positioned to drive strategic business decisions at companies

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Process of Designing a Valid, Defensible Certification Program

Sequential steps:

1. Job Analysis- job tasks and the knowledge, skills and abilities (KSA) needed

2. Test Specifications- importance of tasks, KSAs by domain, cognitive level of knowledge

3. Body of Knowledge- principles and standards of professional practice

4. Assessment- bank of items

5. Cut Score- minimum competency level

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FP&A Job Analysis Process and Findings

12 FP&A volunteers recruited Diverse group

Years experience, industry, members/non-members

2 ½ day facilitated discussion Identified consensus of tasks and processesCreated profile of the AFP Certified FP&A

Professional

Review of survey instrument and results

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JTA Survey: Highlights of Findings

Tasks always performed and extremely importantValidate data (i.e. assess quality/consistency of

data)Build budgets, forecasts, annual plansUse basic and advanced spreadsheet

functions

Tasks seldom performed, low importanceWork with rating agency professionals

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JTA Survey: Highlights of Findings

Extremely important knowledge, skills, abilities (KSAs) needed:Ability to communicate with and gather

information from business partnersAbility to integrate information and data into

analysisAbility to create financial statement projectionsAbility to perform variance analysis and

reporting

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JTA Survey: Highlights of Findings

Extremely important KSAs, cont’d Knowledge of database structures

and functionsAbility to implement basic

spreadsheet functionsAbility to implement advanced

spreadsheet functions (cross tabulations, matrix tables, macros, etc.)

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JTA Survey: Highlights of Findings

70% of respondents have graduate degrees

Global profession- 30% non-U.S. 51% have 2-5 individuals in

immediate FPA group Financial Planning and Analysis in

most job titles Reports to CFO, VP/SVP Finance,

Treasurer or Controller

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FP&A Test Specifications

Multi-part examPart 1: Financial Acumen- 100-150 items

• Domain A- Gathering and interpreting information• Domain B- Communicating/coordinating work with

other professionals

Part 2: Financial Analysis-100-150 items• Domain A- Analyzing information• Domain B- Building financial projections• Domain C- Using technology/software

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Development Timeline

ID reference materials (reading list, item citations)

Write items (~1,200) Develop exam prep product (available Sep

2013) Deliver Beta exam (Sep/Oct 2013) Registration open (Nov 2013) Deliver live exam (Feb 2014)

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Development Timeline

FinalizeRequirements including education, experience,

continuing education, etc.Pricing and exam delivery options Grandfathering criteria, policies and

proceduresExam update process/frequency

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The New FP&A Credential

Will… Set standards in the corporate FP&A profession Be a symbol of excellence Signify that an individual has:

demonstrated the knowledge and skills required to perform competently in today's complex finance environment

passed a rigorous examinationagreed to abide by a professional code of

ethical conductcommitted to keeping knowledge current by

meeting continuing education requirements

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FP&A Resources from AFP

FP&A Newsletter Monthly, 11,000+ subscribers from 110 countries,

editorial advisory board

Facilitated Roundtable Discussions Led by Brian Kalish, around the country/world

Track at AFP Annual Conference Educational sessions, networking events

Webinars, virtual seminars LinkedIn Group Research

Cost of Capital Survey

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Get Involved!

Let us know what you want to learn aboutAFP Annual ConferenceWebinars, seminars

Share your knowledgeWrite an article (750 words)Participate in a FP&A Roundtable Volunteer on committees

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Certification for FP&A Professionals

Donna Berzellini

Managing Director,

Certification, AFPdberzell@AFPonline.org

301.961.8809

Brian Kalish

Finance Practice Lead,

AFPbkalish@AFPonline.org

301.961.6564

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www.FPAcert.org

Certification for FP&A Professionals

Questions and Comments?

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