Effective Work Sample Exercises for Hiring Top FP&A Manager Talent

Financial Planning & Analysis (FP&A) Managers serve as the analytical backbone of an organization's financial decision-making process. They translate complex financial data into actionable insights that drive strategic business decisions. The right FP&A Manager can dramatically improve forecasting accuracy, streamline budgeting processes, and provide leadership with the financial intelligence needed to guide the company toward sustainable growth.

However, traditional interviews often fail to reveal a candidate's true capabilities in financial modeling, analytical thinking, and cross-functional communication. Resume credentials and verbal descriptions of past experiences can only tell you so much about how a candidate will perform in your specific environment with your unique financial challenges.

Work sample exercises provide a window into how candidates actually approach financial problems, communicate insights, and collaborate with stakeholders. By observing candidates perform realistic FP&A tasks, you can assess not just their technical skills but also their thought processes, attention to detail, and ability to translate complex financial concepts into business recommendations.

The following four exercises are designed to evaluate the essential competencies of a successful FP&A Manager: analytical thinking, financial modeling expertise, communication skills, and strategic problem-solving. Each exercise includes specific instructions for implementation and evaluation, helping you identify candidates who will excel in driving financial excellence within your organization.

Activity #1: Financial Model Build and Review

This exercise evaluates a candidate's ability to build accurate financial models and identify errors in existing ones—core skills for any FP&A Manager. By combining model creation with error detection, you'll assess both technical proficiency and attention to detail, while gaining insight into how the candidate approaches financial logic and structure.

Directions for the Company:

• Prepare a partially completed financial model in Excel with3-5 deliberate errors (e.g., formula inconsistencies, incorrect assumptions, broken links).
• Create a brief business scenario describing a new product launch or business initiative requiring financial modeling.
• Provide historical data (revenue, costs, growth rates) relevant to the scenario.
• Allow60-75 minutes for completion.
• Ensure the exercise is challenging but completable within the timeframe.
• Have a finance team member available to answer clarifying questions.

Directions for the Candidate:

• Review the provided business scenario and historical data.
• Complete the partially built financial model by adding missing components (e.g., revenue projections, cost structure, profit margins).
• Identify and correct any errors in the existing model components.
• Document key assumptions used in your model.
• Prepare a brief (3-5 minute) explanation of your approach and the financial insights revealed by your model.

Feedback Mechanism:

• After the candidate presents their model and findings, provide specific feedback on one modeling strength (e.g., "Your revenue growth assumptions were well-justified") and one area for improvement (e.g., "The expense categorization could be more granular").
• Ask the candidate to spend10 minutes adjusting their model based on the improvement feedback.
• Observe how receptively they incorporate feedback and their ability to quickly iterate on their work.

Activity #2: Variance Analysis and Executive Communication

This exercise tests a candidate's ability to analyze financial variances and communicate insights effectively to senior leadership—a critical function of the FP&A role. It evaluates analytical thinking, problem-solving, and the ability to translate complex financial data into clear, actionable recommendations.

Directions for the Company:

• Create a realistic monthly or quarterly financial report showing budget vs. actual performance with significant variances in key metrics.
• Include department-specific data (e.g., sales, marketing, operations) with varying performance against targets.
• Provide contextual business information that explains some but not all variances.
• Allow45-60 minutes for analysis and preparation.
• Have a senior finance team member play the role of the CFO or CEO for the presentation portion.

Directions for the Candidate:

• Review the financial report and identify the most significant variances.
• Analyze potential causes for these variances using the provided business context.
• Prepare a concise (5-minute) presentation explaining:
• The most important variances and their potential business impact
• Possible explanations for each variance-2-3 specific recommendations for addressing concerning trends
• Questions you would ask different departments to better understand the variances
• Be prepared to answer challenging questions about your analysis.

Feedback Mechanism:

• After the presentation, provide feedback on one communication strength (e.g., "Your prioritization of variances was excellent") and one area for improvement (e.g., "Your recommendations could be more specific and actionable").
• Ask the candidate to revise one of their recommendations based on the feedback.
• Evaluate their ability to think on their feet and refine their communication approach.

Activity #3: Cross-Functional Budget Planning Simulation**

This exercise assesses a candidate's ability to collaborate with non-finance stakeholders and navigate competing priorities—essential skills for an effective FP&A Manager. It evaluates communication, negotiation, and the ability to balance financial discipline with business needs.

Directions for the Company:

• Create a budget planning scenario with limited resources (e.g., $X million to allocate across departments).
• Prepare role cards for2-3 company representatives (played by team members) with competing priorities:
• Sales Director seeking increased headcount and commission structure
• Marketing Director requesting larger campaign budget
• Operations Manager needing capital expenditure for efficiency improvements
• Each role card should include specific business justifications and data points.
• Allow15 minutes for preparation and30 minutes for the simulation.

Directions for the Candidate:

• Review the company's financial constraints and strategic priorities.
• Prepare questions for each department representative to understand their budget requests.
• Facilitate a30-minute budget discussion with the goal of reaching an allocation that balances business needs with financial constraints.
• Guide the conversation toward data-driven decisions while managing potential tensions.
• Conclude with a recommended budget allocation and rationale.

Feedback Mechanism:

• Provide feedback on one collaboration strength (e.g., "You effectively used data to guide the conversation") and one area for improvement (e.g., "You could have more directly addressed the tension between sales and marketing priorities").
• Give the candidate5-10 minutes to reflect and explain how they would approach one specific challenging moment differently.
• Assess their self-awareness and ability to adapt their approach to stakeholder management.

Activity #4: Strategic Financial Planning Case Study

This exercise evaluates a candidate's ability to connect financial analysis to strategic business decisions—a higher-level function of the FP&A role. It tests strategic thinking, business acumen, and the ability to use financial modeling to support long-term planning.

Directions for the Company:

• Develop a strategic case study relevant to your industry (e.g., geographic expansion, new product line, acquisition opportunity).
• Provide relevant financial and market data, including:
• Current company financials (simplified P&L, balance sheet)
• Market size and growth projections
• Competitive landscape overview
• Initial investment requirements
• Allow90 minutes for analysis and preparation.
• Ensure the case has multiple viable approaches to assess the candidate's decision-making process.

Directions for the Candidate:

• Analyze the strategic opportunity from a financial perspective.
• Build a3-year financial projection model showing expected impact on revenue, costs, and profitability.
• Identify key financial risks and success factors.
• Prepare a10-minute presentation that includes:
• Financial analysis of the opportunity (ROI, payback period, NPV)
• Sensitivity analysis of2-3 critical variables
• Recommended approach with financial justification
• Key metrics to track if the initiative is implemented
• Be prepared to defend your assumptions and methodology.

Feedback Mechanism:

• Provide feedback on one analytical strength (e.g., "Your sensitivity analysis effectively highlighted the key risk factors") and one area for improvement (e.g., "Your growth assumptions could be better supported with market data").
• Ask the candidate to revisit one specific assumption or calculation based on the feedback.
• Evaluate their ability to incorporate new perspectives into their financial thinking and adjust their strategic recommendations accordingly.

Frequently Asked Questions

How long should we allocate for these work sample exercises?

Each exercise requires different time commitments. The financial modeling exercise typically needs60-75 minutes, the variance analysis45-60 minutes, the cross-functional simulation about45 minutes, and the strategic case study90 minutes. We recommend conducting these across multiple interview stages rather than all in one day to avoid candidate fatigue.

Should we provide these exercises before the interview or have candidates complete them on-site?

For the financial modeling and strategic case study exercises, consider sending preliminary information24 hours in advance so candidates can familiarize themselves with the context. However, the actual exercise should be completed during the interview process (either on-site or via video conference) to ensure the work represents the candidate's own capabilities.

How do we evaluate candidates consistently across these exercises?

Create a standardized rubric for each exercise that aligns with the key competencies in your job description. Rate candidates on specific observable behaviors rather than general impressions. Have the same interviewers evaluate all candidates for a particular exercise to maintain consistency.

What if a candidate has industry experience different from our company?

Focus your evaluation on the candidate's analytical approach and financial thinking rather than industry-specific knowledge. The exercises can be adjusted to be more general if needed, though industry context adds valuable complexity. Strong FP&A professionals can typically transfer their skills across industries with some onboarding time.

How should we handle candidates who struggle with the technical aspects of Excel during the exercises?

Distinguish between momentary formula confusion and fundamental gaps in Excel proficiency. If a candidate demonstrates strong analytical thinking but struggles with specific Excel functions, consider whether your team can support their technical development. However, for an FP&A Manager role, a certain level of Excel proficiency is typically non-negotiable.

Should we share these exercises with candidates before the interview?

While you shouldn't share the specific details of the exercises, it's beneficial to tell candidates they'll be participating in a financial modeling exercise or case study so they can mentally prepare. This creates a more level playing field and often results in better performance from well-qualified candidates.

Implementing these work sample exercises will significantly improve your ability to identify truly exceptional FP&A Manager candidates. By observing how candidates approach realistic financial challenges, you'll gain insights that traditional interviews simply cannot provide.

Remember that the goal isn't to find candidates who get everything "right," but rather to identify those who demonstrate strong analytical thinking, effective communication, and the ability to connect financial analysis to business strategy—all while showing a willingness to learn and adapt.

For more resources to enhance your hiring process, check out Yardstick's AI Job Description Generator, AI Interview Question Generator, and AI Interview Guide Generator. You can also find more information about FP&A Manager roles in our comprehensive job description.

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