5 Parallels Between Golf And Financial Planning And Analysis

Forbes

2 days ago

Don Mal | Board chair at Una Software, a performance planning platform combining dynamic FP&A, revenue intelligence & AI-driven forecasting.
If you know me, you know golf is a big part of my life (one of my three G's, but that's another story)—so much so that when I found there wasn't a great golf course near my new family cottage, I helped build one. I'm still a member and frequent player of the private club. The story behind how we built it is a great one, but for another time.
Today I bring it up because of all the parallels you can draw between great golf and great financial planning and analysis (FP&A). While I know there are more, here are the five that stand out to me fresh off a long weekend spent on the golf course:
1. Reforecasting
This is an obvious one. You shank a drive, end up in the sand or even roll into the rough, and your path to the pin (and par) can change dramatically.
I know a lot of CEOs and CFOs who feel like they're surrounded by bunkers and water hazards these days. I bet you do, too.
I've worked with companies that used to reforecast quarterly or monthly that now do it weekly (if not more frequently). It's a trend that started during the uncertainty of Covid as companies needed to adapt to changing regulations, restrictions and workforces. Now add to that changing policies, tariffs, interest and inflation rates, and their impact on financial and operational performance.
No matter how good a golfer you are, you've got to reforecast after every shot. As no matter your business or political stripe, you're going to want to reforecast after every shift that adds uncertainty to your plan.
2. The Data
When I play my home course, I can tell you within two to three strokes how I'm going to score. I know where the holes, trees and fairway bunkers are—which ones play long and which ones to lay up on.
Between my golf apps and that little range-finder thing, I know how far away I am from the pin all the time, and even how the weather will impact my next shot.
I have all the data. And that's a big advantage, both in golf and in finance.
If a CFO is only looking at their financials, they're not doing the job that's required of them today. Modern, strategic CFOs have to have their eyes on a wide range of financial and operational, internal and external data. Consider the tariffs and interest rates I mentioned above, or their impact on supply chains, inventory, sales cycles or overall demand.
To illustrate even further, my CFO recently wrote a LinkedIn post about a former CFO colleague who put so much emphasis on data, he now goes by the title of Chief Metrics Officer (CMetO).
Looking only at financials would be a bit like swinging a golf club knowing only my score and what hole I'm on.
3. The Technology
I'm not good enough that the quality of the balls I use impacts my game, but I know the right technology investments help my game. I have one of those alien-looking putters and hybrids. Both have changed my game, as hesitant as I was (like many) when they first came out.
That hesitation in FP&A is most pronounced when it comes to moving from Excel spreadsheets to modern, cloud budgeting and planning software. For almost 20 years, I've been fighting the same challenge: That in spite of readily available FP&A software, many finance teams still spend the bulk of their time in stand-alone, disconnected and often broken spreadsheets.
That's crucial time spent doing manual, time-consuming work. Time that is ripe for automation—now more than ever with AI part of virtually every FP&A software on the market. Time that could be spent analyzing, investigating, improving forecasting accuracy and shaping their company's future.
Breaking away from the FP&A parallels, however, if TaylorMade comes out with an AI driver ... you can count me out.
4. Relationships
Golf is so much more enjoyable when you're playing with friends or at least people you get along with. It's a great way to build a friendly, trusting relationship, too (or, at least, you'll be able to tell the trust factor from the scorecard!).
Some consider talking business during a round to be poor etiquette, but in business planning, trusted relationships matter—probably a lot more than most of us realize or admit.
Both as a CEO working with CFOs I trust, and helping CFO customers gain that same level of trust, I've seen the importance of relationships firsthand hundreds of times.
5. Gimmes And Mulligans
In a friendly round, gimmes and mulligans make life easier. They boost your performance (your score). They build trust and rapport. And they keep the pace of play going.
But when you're playing in a tournament or with serious players, there's no free pass if your drive ends up deep in the woods or you miss that 4-foot putt.
The same could be said for CEOs and CFOs when it comes to your tolerance for forecasting variances—or more crucially, the tolerance of your shareholders and backers. While it's not unusual for a high growth SaaS company to report variances upward of 20%, anything more than 5% to 10% is unacceptable for a large manufacturing firm. Especially if it's publicly traded or PE-backed.
In golf, the difference is painfully clear on your scorecard. In corporate finance, it's equally clear on your reputation and share price.
If I thought about it long enough, I know I could come up with another four to five parallels at least, probably more. But I'll leave it at this: Stay on the short grass and out of the water—both on the golf course and the income statement.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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