How it works

From FP&A to SDA

Most FP&A leads with whatever the system has formatted. Pace Car starts with your goals and gives your teams direction and assistance instead. It works in three steps.

SSlotGive every number a job DDefendCatch drift before it's a miss AAssistHelp teams get back on track

Step 1

Slot: give every number a job

Slotting is top-down planning. We start with your overall goal and work backward through the financial equation. Each element gets a slot: the value it has to deliver, and its reason for being.

Revenueslot

Cost of salesslot

Gross profitslot

Operating costsslot

Profityour goal

Start from the goal on the right and work left: each slot is set to what the goal requires.

Goal first

Targets flow down from where you need to end up, not up from last year's habits.

A reason for being

Every slot carries the why behind its number, so teams know what it's for.

Reporting built around slots

Reports track each slot against its target, not whatever the system produces by default.

Step 2

Defend: variance analysis, in advance

Traditional variance analysis explains a miss after it happens. We scan recent and projected results for negative variances, especially in sales and gross profit, to spot performance drifting out of its slot while there's still time to act.

You choose what to measure against:

Prior year

How you're tracking against the same period last year.

Budget

How you're tracking against plan.

Next year

Whether today's results support next year's targets.

Business model

Whether results fit the economics your model is built on.

Headed Here

Where you're actually going: your run rate at the end of this year or into next.

Step 3

Assist: ABBA

Finding drift is only useful if someone helps fix it. ABBA is how we help teams keep results in their slots.

Alerts

Timely warnings of threats and opportunities, so nothing comes as a surprise.

Backstory

What moved and why. Understanding the cause opens up more options to act on.

Bonus

Incentives that sync everyday decisions with your strategy.

Assistance

Hands-on help, ranging from funding a move to rethinking a plan.

What changes

Traditional FP&A	Pace Car SDA
Leads with system-formatted reports	Leads with your goals
Builds budgets up from last year	Slots every number top-down from the goal
Explains variances after the fact	Spots drift in advance
Compares mainly to budget	Compares to prior year, budget, next year, business model and Headed Here
Hands over the numbers	Provides direction and assistance

Make your FP&A our kind of SDA

Slot · Defend · Assist

Talk to Pace Car