In the world of FP&A modeling, clear communication is essential but often elusive. As professionals, we rely on written requirements like SOWs, JIRA stories, and detailed specifications to translate business needs into technical solutions. Yet too often, the result falls short—not because the requirements were incomplete, but because critical elements of context and subtext were overlooked.

I’ve learned this firsthand. Over my career as a developer, project manager, sales professional, and leader of developer teams, I’ve seen how the same words can mean vastly different things depending on who is speaking—and their background. Finance professionals talk about KPIs, cost allocations, and report cycles. IT teams focus on schemas, APIs, and metadata. Miscommunication between these functions can lead to frustration, inefficiency, and, at worst, failed projects.

For FP&A professionals, this misalignment can mean building models that meet the technical requirements but miss the business goals. To avoid this, I recommend a simple yet powerful framework frequently utilized by writers: Text, Context, and Subtext. By understanding and addressing these three elements, we can bridge gaps between business needs and technical execution, ensuring that models are useful, adopted, and aligned with organizational goals.

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Understanding the Framework

Text

The text is the explicit, literal content of a requirement or statement. It’s what’s written down or spoken directly.

• Example:
  A requirement might state:
  • “Develop a sales forecasting module within the existing analytics platform to predict future sales volumes by product.”
  • “Support advanced forecasting algorithms, including ARIMA, machine learning models, and exponential smoothing.”

The text provides the foundation, but it’s often insufficient on its own. When we focus only on the text, we risk building something technically accurate but practically unusable.

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Context

The context is the surrounding circumstances that give meaning to the text. It includes factors like the project’s purpose, timeline, and intended users. While traditional requirements gathering often captures some context, explicitly addressing it ensures alignment across teams.

• Example: For the sales forecasting module:
  • Who: A sales team that needs better forecasting capabilities.
  • Why: To improve decision-making and reduce inventory costs by 10% annually.
  • Where: Within the existing analytics platform, integrated with ERP and CRM systems.
  • When: A prototype is required within three months; full deployment within six months.

Understanding context ensures that the resulting solution fits seamlessly into the organization’s ecosystem. It prompts questions like:

• How will users access the system?
• What are the inputs and outputs of this model?
• How frequently will the model be updated?

By addressing these factors, we create models that are functional, timely, and relevant.

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Subtext

The subtext is the underlying meaning or motivations that aren’t explicitly stated but influence the requirement. This is the area most often missed. Subtext reveals the broader strategic, operational, or cultural goals that drive a project.

• Example: For the sales forecasting module:
  1. Improved Efficiency:
     The company may currently rely on manual methods for forecasting, which are time-consuming and error-prone. The subtext suggests a need for modernization.
  2. Strategic Importance:
     Accurate forecasting is critical for staying competitive. The inclusion of advanced algorithms indicates a push toward cutting-edge capabilities.
  3. Collaboration and Accountability:
     Features like audit logs and role-based access hint at a need for greater transparency across departments.
  4. Scalability and Growth:
     Supporting up to 1,000 products and 50 users suggests planning for future expansion.
  5. Cost-Saving Pressure:
     The goal of reducing inventory costs reflects financial pressures and the need for operational optimization.
  6. User Empowerment:
     Features like manual adjustments and visualization tools imply a focus on user-friendly design to empower decision-making.

Subtext shapes how the model should be developed, rolled out, and supported. Without addressing it, even technically flawless models can fail to deliver on business goals.

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Bringing It All Together

Too often, we over-rely on text, assuming that requirements can be completely self-explanatory. However, ignoring context and subtext leads to misaligned priorities and wasted effort. By incorporating all three layers, we ensure that the models we build don’t just meet technical specifications but also align with broader business objectives.

Here’s how you can apply this framework:

• For Developers:
  • Ask questions like:
    • “What is driving this requirement now?”
    • “Who will use this model, and how will they interact with it?”
    • “Are there strategic goals tied to this project?”
  • Use this information to refine architecture, timelines, and design.
• For Business Users:
  • Share the bigger picture with your technical teams. Provide insight into organizational goals, user pain points, and success metrics.
  • Be transparent about why this project matters to the organization.

By working together and addressing text, context, and subtext, we can bridge communication gaps, deliver more effective models, and help our co-workers and our organizations achieve their goals.

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Conclusion

Words mean things. But their meaning is shaped by the environment and the motivations behind them. In FP&A modeling, recognizing and addressing the text, context, and subtext of requirements isn’t just a communication tool—it’s a strategy for success. By applying this framework, we can build better models, foster stronger collaboration, and create lasting value for our organizations.