FP&A Stories - 🧭 1 Driver for Each of the 10 Industries I Worked In
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Hello Reader 👋You know what's funny about having worked as a Finance leader across industries? It's that It forces you to look past the P&L. When I joined a new company or worked with a new business unit, I always started with reports and models. But the breakthrough came when I learned the 1 operational driver that actually moved the business. Not the P&L or the cashflow but rather a business reality that explained everything else. This week, I’m sharing the key drivers I discovered in each industry I worked in, and how you can find yours too. So take a coffee, sit down, and read FP&A Stories just like 22k other readers. This week in FP&A Stories 📏 10 Drivers That Changed the Way I Worked in Finance
🤖 Don't forget the "Become an AI CFO" webinar
📺 Good Ways and Bad Ways to Start a Presentation
📏 10 Drivers That Changed the Way I Worked in FinanceWe’ve talked a lot about presence, structure, and delivery. But what about preparation? That’s where most presentations are won (or lost). And it’s exactly where AI can help you go faster, sharper, and more confident (and bonus: without sounding like a robot). In Bilbao last week, I delivered a session at CMA CGM. We covered storytelling, delivery, and presenting financials to decision-makers. One of the questions I got was: My answer? Use AI where it helps you bring more human to the room. Today, I’m showing you 3 real use cases I personally use when I prepare executive-level presentations. All that with a focus on speed, structure, and self-confidence. 1️⃣ Telco B2C: Churn Rate❗Why it matters: In consumer telco, revenue is all about the customer base. Churn kills future income, especially because playing on retention is very, but very expensive. 🧑🎓How to master it: Learn what drives disconnections, follow net adds, and segment by product and geography (I tried age ranges, but it didn't bring anything relevant). 💬 What to ask: What campaigns are running to retain high-value customers? What are clients saying when they leave (pure qualitative feedback)? 🚩 Red flag: Stable revenue with hidden degradation in base quality (low ARPU clients replacing high ARPU). 🏢 Example: Proximus, Orange, or BT all track churn in every investor presentation. 2️⃣ Telco B2B: Gross Gains❗Why it matters: The enterprise market moves slower but one client can mean millions. 🧑🎓How to master it: Follow key account wins, understand pricing grids and ramp-up periods. Little bonus: be in good contact with Account Managers ;-) 💬 What to ask: What are the coming RFPs? Does a contract arrive at the termination period? 🚩 Red flag: All B2B customers have a base of recurring activations. When it stops, you can think of a future churn. 🏢 Example: Telia’s B2B arm tracks gross gains and churn to model net growth. 3️⃣ Consulting / Services: Utilisation Rate❗Why it matters: Your people are your product. If they’re not booked, you’re losing margin. 🧑🎓How to master it: Track billable vs. available hours. Mix with average rate. 💬 What to ask: Where are the biggest capacity gaps? Who are the most under-booked teams? 🚩 Red flag: Utilisation above 90% for too long = burnout coming. Utilisation under 60% for too long = boreout coming. 🏢 Example: Big 4 firms live and die by utilisation and average rate. 4️⃣ Industry: Factory Efficiency (OEE)❗Why it matters: In any production business, Overall Equipment Effectiveness drives unit cost. 🧑🎓How to master it: Work closely with ops to understand bottlenecks, downtime, and yield issues. 💬 What to ask: What line is most critical for margin? What’s the biggest waste driver? 🚩 Red flag: High production volume but lower-than-expected margins. 🏢 Example: Bosch or Siemens use OEE to benchmark plant performance worldwide. 5️⃣ Logistics: Fill Rate❗Why it matters: Whether you’re in shipping or warehousing, fill rate shows efficiency. 🧑🎓How to master it: Monitor truck/container fill rates and % of empty returns. 💬 What to ask: Which lanes or routes are underperforming? What is our max theoretical fill? 🚩 Red flag: More trips, less revenue: a classic sign of margin erosion. 🏢 Example: DHL and CMA CGM optimise this daily. 6️⃣ Events / Leisure: Average Revenue Per Pax❗Why it matters: Volume is important, but spend per visitor shows value creation. 🧑🎓How to master it: Understand visitor flows, pricing, and upsell conversion. 💬 What to ask: What are people buying once inside? What’s the attach rate per visitor? 🚩 Red flag: Volume up, total revenue flat: sign that value is eroding. 🏢 Example: Thomas Cook (back when it existed) reported per-pax spend in every quarterly call. 7️⃣ Retail: Inventory Turnover❗Why it matters: Cash is locked in shelves. Faster turns = healthier business. 🧑🎓How to master it: Learn product lifecycle, promo periods, and stock age. 💬 What to ask: Which SKUs move fastest? Where is stock ageing? 🚩 Red flag: Top-line growth masking inventory build-up. 🏢 Example: Delhaize is the typical example of inventory having to move fast. 8️⃣ SaaS / Digital: Customer Acquisition Cost (CAC)❗Why it matters: Growth is good, but not if it’s unprofitable. 🧑🎓How to master it: Break CAC by channel. Match it to lifetime value. 💬 What to ask: Where do we acquire users? What’s the conversion rate by source? 🚩 Red flag: Sales boom with negative cash contribution. 🏢 Example: Shopify and Salesforce watch CAC vs. LTV constantly. 9️⃣ Public Sector Projects: % Completion vs. Budget❗Why it matters: In public-funded work, cash and credibility are linked to delivery. 🧑🎓How to master it: Track progress vs. milestone plan. Compare forecast to actual costs. 💬 What to ask: What’s already billed? What’s the delivery risk? 🚩 Red flag: Cost run rate exceeds project progress. 🏢 Example: Any EU-funded program uses this for governance. 1️⃣0️⃣ Public Sector Projects: % Completion vs. Budget❗Why it matters: Cement is sold in bulk, with thin margins. Volume shifts impact profitability fast. 🧑🎓How to master it: Track volumes vs. plant capacity and match with local demand trends. 💬 What to ask: Are we above breakeven in each plant? Where is pricing pressure highest? 🚩 Red flag: High stock levels despite strong production. 🏢 Example: Holcim tracks regional volume in every quarterly report. It’s the first metric they comment on. Final Thought You don’t need to know everything about every industry. But if you want to become a trusted business partner, start by knowing the one thing that really drives the business. Volume, churn, occupancy, time-to-market… they’re not just operational KPIs. They’re the key to making your numbers make sense. If you understand how your business works, you can challenge the assumptions, improve the models, and build real influence. Start with one driver. Then master the next. Which one made the biggest difference in your career? Let me know. I reply to everyone. 🤖 Don't forget the "Become an AI CFO" webinarIf you’re still juggling slides, chasing data, or guessing how AI could help, don’t miss this. In just 60 minutes, you’ll see:
🗓️ When? Friday, June 27 at 5pm CEST I’ll be attending too. Because if you want to shape the future of FP&A, this is the conversation you want to be in. 📺 Good Ways and Bad Ways to Start a PresentationLet’s face it: most finance presentations start like school projects. Flat, formal, and instantly forgettable. You don’t have 10 min to warm up the room. You have 3 seconds. In this short video, I share 4 practical ways to open with impact — plus a method (SCQA) that helps you bring structure from the very first sentence. Let me know what your go-to opening line is. I reply to everyone. That's a wrap for this week See you next week! |
