Why “Best Practices” in FP&A Are Often the Worst Practices

In finance, the phrase “best practice” sounds safe. Proven. Reliable. But in FP&A, following best practices can be the fastest way to fall behind. Here’s why—and what to do instead.

The Trap of “Best”

We copy what looks established. If it worked for someone else, it must work for us.

But “best practices” are often museum pieces—built for another company, another industry, another era. Borrowing them is like running today’s marathon in 1980s shoes: you’ll finish, but you’ll lose.

How “Best” Backfires

When finance teams worship “best practices,” three risks take root:

• Obsolete routines that no longer fit the business model.
• Stalled innovation because the “best” way feels untouchable.
• False security while competitors rewrite the rules.

Flight Paths, Not Checklists

Pilots rely on checklists—but the flight path changes every time. Weather, traffic, conditions.

Best practices are the checklist. They’re hygiene, not direction. Treating them as the route ensures you’ll land safely—in the wrong city.

How to Build “Better Practices”

Instead of importing answers, FP&A teams should build their own playbook:

1. Interrogate the Source → Who built this practice, and when?
2. Pressure-Test Fit → Does it solve today’s problems, or yesterday’s?
3. Prototype Small → Trial new methods without betting the farm.
4. Codify What Works → Lock in the wins as your better practice.

What’s at Stake

Companies that cling to best practices confuse survival for strategy. But teams that evolve them create an edge competitors can’t copy—because it’s theirs alone.

In FP&A, there are no best practices. Only dead ones—or better ones.