How FP&A Analysts challenge their business partners
As FP&A Analysts and leaders, we have more impact on our company's performance if we aren’t shy about challenging people.
That’s because other departments tend to have incentives that are narrowly defined. For example, the sales team cares about selling as many units as possible, while profitability may be less important. And the R&D team may want to develop the features they find most exciting, while return on investment isn’t top of mind.
FP&A Analysts are uniquely positioned to address those issues. That’s because we see the business from a bird’s eye’s perspective. We review how decisions impact the P&L and aren’t limited by the same narrow incentives.
But you need to do it right. Because if you challenge too aggressively, the relationship with your business partners suffers, and your level of influence declines as a result.
Here are the dos and don’ts for challenging as FP&A Analyst:
The Dos:
✅ When you see something, say something.
If you see a decision that may negatively impact profitability, bring it up. You don’t necessarily need to ask people to change, but you should at least mention it. There is a good chance they simply didn’t think about it yet.
✅ Give back
If you keep asking people to do things differently, again and again, they may get tired of it. So, always look for opportunities to give back. You want to have a balanced relationship, where you help people as much as you challenge them. For example, offer help with an Excel problem or automate one of their reports.
✅ Stick to the facts
Back every recommendation you make with financial analysis and hard data. Because then it’s not you who is telling them what to do. It’s the data right in front of them.
The Don’ts:
❌ Don’t challenge in a big meeting
Even if your recommendation is a no-brainer and backed by a solid analysis - telling people they are wrong in front of others is a big no-no. They might not show it, but it stings. And that harms your relationship. If you can’t avoid bringing it up, tell them upfront and align on how you’ll position it.
❌ Avoid defensiveness
Don’t frame it in a way that triggers people to defend themselves.
Instead of saying:
“You’re wrong.”
“You are making a mistake.”
“This doesn’t make any sense.”
Say:
“I see it differently.”
“If we proceed, X is likely to happen.”
“Can you explain?”
❌ Don’t tell people what to do. Ask questions instead.
Asking people a series of questions can be much more powerful than telling them what needs to be done. That’s because if you tell them they are wrong, it’s you arguing against them. And people don’t like to lose arguments. But if you can guide them through thoughtful questioning, they may come to the correct conclusion themselves. In that case, you don't need to argue at all.
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