FP&A Stories - 💡 “I Want My Team to Formulate Recommendations”
Hello Reader 👋This week marks four years since I started The Finance Circle. I sometimes think back to the very first workshop I delivered. It actually took almost one full year to get my first client. During that time, there were moments where I wondered if the idea would ever take off. Fast forward three years, and the beginning of this week looked very different. I spent the first two days almost entirely working on proposals because so many companies reached out. One conversation stuck with me. A client told me he had been looking for this kind of training for two years, and was simply glad he finally found it. And interestingly, when FP&A leaders and CFOs reach out, the request is often very similar: “I want my team to be able to formulate recommendations. Like an advisor.” So this week, we’re going to talk about exactly that: how finance should formulate recommendations. So take a coffee, sit down and read FP&A Stories just like 17k other readers This week in FP&A Stories
🧑💼How FP&A should formulate recommendations
🎤 Where to meet me: My upcoming session at the AFP FP&A Forum in Indianapolis
🧑💼How FP&A should formulate recommendationsOne thing I’ve noticed over the years, especially when presenting to senior leaders, is that they rarely react to the answer itself. What they react to is the thinking behind the answer. When you present a recommendation, executives immediately start testing the reasoning underneath it. They try to understand how you arrived at the conclusion. They want to see the logic, the assumptions, and whether the proposed action actually connects to the outcome you’re aiming for. And when that logic isn’t visible, the discussion can quickly start to unravel. Many recommendations in finance are presented in a sequence that looks logical but actually hides the reasoning. It often sounds like this: Revenue is declining -> We should launch a marketing campaign -> This will increase sales There is a problem, an action, and an expected outcome, but something important is missing. The explanation jumps straight from the situation to the solution without clearly explaining why this action is the one that should solve the problem. Over time, I’ve found that a stronger way to structure recommendations is to start from the end state and work backwards. First clarify the outcome we want to achieve. Then identify the conditions that must be true for that outcome to happen. Then look at the current situation and determine which of those conditions are missing. Only then do we formulate the actions. For example: If we want to stop revenue declining, the business either needs more demand or a higher conversion rate. When we look at the data, conversion has been stable but inbound demand has dropped significantly. That means rebuilding qualified pipeline becomes the most logical action. The recommendation itself might be identical to what we would have proposed initially. But now the thinking is visible. And in FP&A, the way we formulate recommendations becomes even more important because of how our role is perceived in organizations. Over time, I’ve developed a few principles that make these recommendations far more effective. 1️⃣Formulate optionsIn many organizations, finance walking into a room and saying “this is what we should do” can immediately create friction. Business leaders rarely enjoy being told what to do by finance. But something interesting happens when finance brings options instead of instructions. The discussion becomes more open and constructive. Instead of defending a single recommendation, finance structures the decision space. For example, if margins are under pressure, finance might present three options: Option A: Reduce discretionary costs Now leadership can discuss trade-offs instead of debating whether finance’s single idea is correct. 2️⃣ Build the options with the expertsThe most effective recommendations are rarely created by finance alone. They are built through pre-alignment before the meeting. When finance speaks with experts beforehand, something powerful happens. Finance becomes the function that connects the perspectives across the organization, structures them, and turns them into clear decision options. In many ways, finance acts as a catalyst that translates operational expertise into strategic choices. (And on top of that, their boss will appreciate that their teams were consulted before) 3️⃣ Quantify every optionThis is where FP&A brings its strongest contribution. Ideas are useful, but leaders quickly want to understand the implications.
This is where finance can provide clarity. Each option should be quantified as much as possible:
When options are quantified, the conversation changes. Leaders can compare the choices and understand trade-offs. And that’s where the real value of FP&A appears. Clear logic shows how we arrived at the options. Together, they turn recommendations into real decision frameworks. Final Thought In FP&A, leaders rarely challenge your recommendation first. They challenge the thinking behind it. When the logic is clear, the discussion becomes easier. When the options are structured, decisions become faster. And when the impacts are quantified, leaders can move forward with confidence. This is where finance creates real value: turning complex situations into clear choices. If this resonates, hit reply and tell me how recommendations are formulated in your organization. I read every message and reply to all of them. 🎤 Where to meet me: AFP FP&A Forum in IndianapolisAt the end of March, I’ll be speaking at the AFP FP&A Forum in Indianapolis. My session is called “Visual Storytelling: Transform Your Slides, Transform Your Impact.” 📍 JW Marriott — Indianapolis Many finance teams deliver solid analysis and accurate numbers. Yet when those insights reach leadership teams, the slides themselves sometimes make the message harder to absorb. Over time, this has contributed to the reputation that finance presentations are dense and overwhelming. In this session, I’ll walk through concrete before-and-after examples showing how visual structure can reduce noise, highlight the real signal in the data, and help finance teams make their insights easier for leaders to understand and act on. If you happen to be attending the forum, feel free to come say hello. More details about the event here: That's a wrap for this week See you next week! P.S. After 17 years in FP&A, Consulting and Leadership, I’ve coached and trained finance teams across industries, from consulting and manufacturing to tech, media, and global logistics. If you want to sharpen your own storytelling skills or bring this work into your team, here are a 3 ways can work together:
If you're unsure which option fits best, reply to this email. I’ll point you in the right direction. |