How CFOs Can Build a Collaborative Planning and Reporting Culture
January 29, 2025
By Brock Davis
As CFO, you bring a unique and valuable perspective to your organization. That’s why finance departments have begun to shift more and more into strategic roles, helping provide leaders in their organizations with the data and support needed to make decisions that will lead to growth. However, for a mid-market organization to really excel, this should go both ways — other leadership should also become part of the financial planning and reporting processes. This way the organization can have a well-rounded perspective, and everyone can make decisions based on complete information. Leadership can work together on creating aspirational goals and concrete plans for achieving them.
To achieve this, CFOs and their organizations should actively work towards building a collaborative planning and reporting culture. In this installment of our series 6 Pillars of Top Performing Finance Functions, we will focus on how mid-market companies can make sure that their long-term and short-term planning is set up to include all leadership and take advantage of diverse knowledge.
Why Should Planning Be Collaborative?
Your organization aims to hire the best for all of its critical roles and departments. If those diverse and knowledgeable perspectives are not included in planning, it means that part of that effort goes to waste.
By involving various departments in financial planning, organizations break down silos. Departments that previously may have operated in isolation begin to share information and insights. This aligns strategy across the organization. As a result, the company can respond more effectively to market changes and internal challenges.
Improved communication also builds trust between teams. When finance shares financial data transparently, other departments feel valued and included. If they are part of the planning process they can also feel shared responsibility for budgetary decisions. If cuts to budgets need to be made, then departments can feel like this was a shared decision, not something that was thrust on them by someone else. This can encourage trust and help organizations avoid interpersonal issues.
How Organizations Can Build a Collaborative Planning and Reporting Culture
Make the Planning Process Inclusive and Aspirational
Involving leaders from all departments in setting goals and creating plans fosters a culture of collaboration. When teams from various functions participate in the planning process, they bring diverse perspectives and expertise. This collective input allows an organization to build targets that are both ambitious and achievable.
An inclusive planning process uncovers opportunities and challenges that might otherwise go unnoticed. Different departments can identify risks and propose solutions based on their unique insights.
Encouraging input from all areas of the business encourages a sense of ownership among teams. When employees see their ideas influencing the organization’s direction, they feel valued and empowered. This involvement strengthens their commitment to the goals and motivates them to collaborate effectively, driving the organization toward its shared objectives.
Share Responsibility When Taking Risks
Sometimes companies need to take risks to succeed. While the ultimate responsibility rests with the decision-maker, involving a group in planning and assessing risks can be highly beneficial. Sometimes a department or executive will be reluctant to take calculated risks that are necessary to advance the organization’s interests because they do not want to be blamed if things do not go to plan.
History is filled with examples of established brands that resisted expanding into new markets or investing in innovation, only to be overtaken by forward-thinking competitors. Collaborative planning and shared responsibility can help organizations avoid this fate.
When teams jointly own the outcomes, they become more invested in the success of their initiatives and can focus on delivering results. Teams working collaboratively feel empowered to experiment and explore new ideas because they know they have the backing of their colleagues.
Create Consistent Methods Across Business Units
Organizations should implement standardized planning processes across all departments and regions to ensure consistency and efficiency. When every unit adheres to the same methodologies, it simplifies performance comparisons and the consolidation of financial data. Technology plays a key role in this standardization. Shared software platforms and centralized reporting tools enable real-time data sharing, process automation, and streamlined communication, fostering greater alignment and faster decision-making across the organization.
Standardized processes also promote fairness and transparency. Teams understand the criteria by which they are evaluated and the procedures they need to follow.
Promote Open Communication and Transparency
As CFO, aim to cultivate a culture of open information sharing. Organizations should establish clear channels that facilitate regular feedback and discussion, such as team meetings, collaborative platforms, or open-door policies that ensure leaders remain accessible to staff.
Open communication allows for the free flow of ideas and concerns. When employees feel safe to express their thoughts, the organization can identify issues early and innovate effectively.
Clearly communicate that collaboration is a core organizational value. Incorporate collaboration into performance metrics and reward systems, and actively recognize and celebrate team efforts. By aligning company values with collaborative practices, you create an environment where teamwork is not only encouraged but deeply appreciated.
Don’t Forget About Remote Team Members
Bridging the gap between remote and in-office employees is necessary if you want to maintain a cohesive team. Make sure that you use communication methods that include everyone and platforms that allow for real-time collaboration. Remote team members should have the same access to information as those in the office.
If a large portion of the team is remote, it may be a good idea to organize a few in-person sessions or events a year where everyone can come together. Bringing the entire team together can strengthen relationships and build a sense of community. Use these events for team-building activities and collaborative projects.
Optimize Your Organization’s Targets and Rewards
Your target levels should be based on industry standards and strategic goals. Analyze market trends and competitor performance, and align your goals with external benchmarks to remain competitive. Targets should motivate performance without being unattainable. Challenging goals inspire teams to excel, but they must be realistic.
To align departmental goals with overall company objectives, cascade targets from top management. Strategic priorities should be communicated clearly to all levels of the organization.
To increase collaboration within your company, structure rewards to reflect collective achievements. Incentive programs should be designed to recognize team performance in addition to, or even instead of, individual contributions. This approach reinforces the value of teamwork and motivates employees to work together toward shared goals.
Provide Training and Support
Offering education to non-financial managers on financial concepts empowers them to participate meaningfully in the planning process. Understanding the basics of budgeting, forecasting and financial reporting enables managers to make informed decisions that align with organizational goals.
Supporting teams in using financial data effectively is also important. Workshops, seminars or one-on-one coaching can be effective methods for building these skills. Investing in employee development shows a commitment to the team’s growth and success.
Best Practices for Role-Based Information Access
An integrated business financial data system allows you to share financial data and reports with those who need it. It also allows you to customize the data that someone will see based on their role, so they do not have to sift through irrelevant data to get to what they need to know. This is a key enabler for collaborative planning — if you want to get valuable input from other leaders and departments, then all of you need to be on the same page.
Modern software solutions allow for seamless data sharing among teams. Dashboards can provide real-time updates, and teams can access up-to-date information whenever they need it.
Providing financial data based on roles and responsibilities improves efficiency. Teams need relevant information to make decisions effectively. By granting access according to each role, employees receive the data they require without being overwhelmed. Here are a few tips for implementing role-based data access in your organization.
Implement User-Friendly Financial Platforms
Invest in intuitive financial software that can be configured for different roles. User-friendly platforms make it easier for employees to access and interpret the data relevant to them. When staff can navigate the system easily, they are more likely to use the data effectively in their work.
Tailor Reports and Dashboards for Different Teams
Customizing financial reports for each department increases their usefulness. Different teams have unique requirements and focus areas. By presenting data in formats that suit their specific needs, you make the information more actionable.
For example, the sales team may need revenue and performance data, while operations might focus on cost management. Tailored reports help teams quickly understand key metrics relevant to them.
Using your reporting software, create customized dashboards for different teams. These dashboards can highlight key performance indicators relevant to each department, facilitating quick and informed decision-making. Make sure that the software you use allows you to create dashboards that will update in real time so that decisions are not made based on outdated information.
Keep a Focus on Security
While providing team members with access to relevant financial data is important, you must also protect sensitive information. Security measures, such as authentication protocols and encryption can help you safeguard the organization’s data from bad actors.
Set up role-based access levels to prevent unauthorized viewing of confidential data. Ensure that C-suite executives have immediate access to all necessary information, while lower-level employees are limited to data relevant to their responsibilities, maintaining security and confidentiality.
Establish protocols for regularly reviewing and updating who has access to financial information. Roles and responsibilities change over time, so it’s important to adjust access permissions and custom reports accordingly. This maintains data security and ensures that team members have the information they need.
Encourage Feedback to Improve Relevance
Seek input from users to refine reporting processes. Teams can provide valuable feedback on the data they receive — they might identify gaps or suggest additional information that would aid their work. The finance department can then adjust information delivery based on that feedback.
Final Thoughts
Building a collaborative planning and reporting culture requires intentional effort from CFOs and organizational leaders. By involving all departments in financial planning, companies harness the diverse expertise of their teams. This approach breaks down silos, fosters open communication and creates a shared sense of purpose.
As CFO, take an active role and lead the shift toward collaborative planning. Embracing these practices positions your mid-market company to respond effectively to challenges and seize opportunities for growth.
If anything in this article piqued your interest as something you would like to implement at your organization but you aren’t sure where to start, or maybe it only highlighted something you already know is a challenge in your organization, let’s have a conversation about it. I help clients every day outline plans to tackle these areas and would love to be of assistance to you as well. You can complete this form and just indicate “I would like to talk with Brock about his article on collaborative planning and reporting”.
Brock is a Director in ContinuServe’s Consulting Practice with more than 13 years of finance, technology, and performance improvement experience. Brock's areas of expertise include operating model uplift, corporate integrations, cost take-out, and business transformations for Private Equity held portfolio companies.
