xP&A & PM? How does that work? 🤔

And how it can make projects succeed...

February 12, 2025

Read time: 5 minutes Words: 805

February may be the shortest month of the year, but we’re not cutting corners on content! Here is what we have in store for you this month:

  • What the heck is xP&A and why should PMs care? Expert interview with Petr Polanecky, SAP consultant

  • Budget-to-actual variance analysis: learn its importance and how to calculate it with Asif Masani

  • Project management guide for PMs by PMs: From PM basics to people management

  • Why do projects fail even when we know how to prevent the failures? 

What the heck is xP&A and why should I care about it as a project manager? 🤔

If you have asked yourself the above question, you are not alone (yes, there have been some questions on Reddit, too!). Extended Planning & Analysis (xP&A) improves forecasting, risk management, and decision-making by integrating financial planning, operations, and real-time data. If you currently work for a large company or plan to do so in the future, there's a good chance you'll encounter xP&A. To keep you informed, we spoke with xP&A expert Petr Polanecky, a SAP senior digital supply chain consultant. Let’s dive in!


Q:  How does xP&A improve forecasting accuracy and risk management?

xP&A improves forecasting accuracy and risk management by integrating financial planning with key business functions like sales, operations, project management, and purchasing. By breaking down silos and unifying data, it provides a real-time, holistic view that aligns projections with operational realities, enabling proactive decision making.


Q: What key steps should organizations take to implement xP&A, and what challenges do they typically face?

Implementing xP&A starts with a clear strategy and a redesigned operating model that fosters cross-functional collaboration. Technology can standardize and automate, but it only works if it’s tailored to meet the organization’s unique needs. I’ve seen companies assume technology alone will resolve their challenges, but without a strong foundation in people, processes, and alignment, the benefits of xP&A are limited. It’s all about ensuring that the technology supports the organization, not the other way around.


Q: Can you give us a couple of examples of specific actions that a company may take to align people and processes?

To be able to align we need to establish a common vision and then get a consensus across the company on how the strategy and the processes and organization will look like. Specific actions would be for example to assess where we are by leveraging benchmarking, based on results define the areas of focus, and then go from the strategy level down to an operational level to define the target process with all the stakeholders.


Q: What tools are essential for xP&A? Is a single platform sufficient, or is a combination of tools more effective? How valuable are time and project tracking tools in this process?

Implementing a single xP&A platform is challenging because finance, sales, and operations each have distinct data needs, requiring different logic and views. Rather than forcing all functions into one rigid system, a more effective approach is consolidating various tools under a unified interface. As for time and project tracking tools, I see them as valuable for planning and monitoring implementation progress. They add structure and visibility, but I've also seen successful projects managed effectively with simpler tools, like Excel. Ultimately, the choice depends on the project scope and team preferences, though having dedicated tracking tools certainly brings added clarity and efficiency to large, complex implementations.

This month’s cant-miss resources:

Why: Budget-to-actual variance analysis helps identify differences between planned and actual spending. By forecasting and tracking financial performance, project managers gain insights into a project's, department's, or organization's overall condition. Developing this skill supports better financial control and decision-making.

📚From the bookshelf - Project Management Guide: Learn How to Handle Projects Like a Pro (e-book)
Netguru

Why: This book is made for project managers, whether you're a pro or just getting started. It covers everything from time management and project setup to team management and giving (and getting) feedback, all from people who’ve been in your shoes.

🎙Podcast vault - Why Projects Fail: Ross Garland on Avoiding Common Pitfalls
People & Projects Podcast

Why: Governance is what keeps projects on track; it's not just managing scope, risk, and timelines, but making sure decisions are made at the right level, accountability is clear, and changes are handled effectively. Andy sits down with governance expert Ross Garland, co-author of the Project, Program, and Portfolio Governance Guide, to break down why projects still fail even when we know how to prevent it. Plus, they share practical tools and templates to help you implement better governance in your projects.

🗓Virtual event - PMXPO 2025: Free virtual event by PMI @ 20th March 2025, 10:00 a.m - 2:30 p.m EDT

🗓In-person event - Women in Project Management Summit 2025 @6th of March, Dublin, Ireland.

Thank you for reading! See you next month

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