Operational analysts play a crucial role in transforming raw data into actionable insights that drive strategic decision-making. We are in a data-driven world and having actionable data distinguishes the leaders from the laggards. I am not sure there is really a debate on this topic. At least not for me, but it is worth discussing whether these valuable professionals should be housed within an organization. Placing operational analysts within the finance department offers significant advantages for both the company and the analysts themselves. It makes more sense than distributing analysts across business units or centralizing them within IT.

The Strategic Advantage for Organizations

Enhanced Financial Integration and Control

I have observed that operational analysts who work within the finance department develop a deep understanding of the company’s financial priorities and metrics, and more importantly, they can connect the operational requirements of the business more readily to decision-ready analytics and financial outcomes. This proximity to financial planning and analysis (FP&A) teams ensures that operational analysis is always conducted through a financial lens, leading to insights directly tied to bottom-line impact.

The finance department’s natural focus on ROI, cost management, and resource allocation means that analysts working within this environment are more likely to prioritise projects and analyses that deliver tangible financial benefits. This does not mean that finance dominates the process, it’s the powerful mix of sensibility over dollars combined with sensibility over the mechanics of the business model. This alignment helps ensure that analytical resources are deployed in ways that maximize shareholder value rather than being consumed by projects with limited financial impact. 

Side note: It also elevates these professionals out of the Excel-jockey persona they can easily fall into without a supportive leadership structure

Standardised Methodology and Governance

Housing operational analysts in finance promotes consistency in analytical approaches across the organization. Finance departments typically maintain strict standards for data quality, methodology, and reporting. When analysts operate under these standards, it results in more reliable and comparable analyses across different business units. Also, this centralized approach also facilitates better data governance and compliance. Finance departments are already well-versed in maintaining audit trails, ensuring data accuracy, and adhering to regulatory requirements. Therefore, these established practices naturally extend to operational analysis, reducing risk and enhancing the credibility of analytical outputs.

Improved Resource Allocation

Organizations that centralise analysts in finance allow for more efficient resource allocation based on company-wide priorities rather than departmental interests. When analysts are distributed across business units, they often become soiled, leading to duplicated efforts and inconsistent methodologies. Similarly, when housed in IT, their focus can shift too heavily toward technical solutions rather than business outcomes. The IT department is also generally suffering from shifting and competing priorities which will inevitably diminish the focus of analysts. In addition, the finance department’s enterprise-wide view enables better prioritisation of analytical resources across competing demands. This positioning allows for more strategic deployment of analytical talent where they can create the most value for the organization.

Benefits for the Analysts

Career Development and Growth

Operational analysts working within finance have unique career development opportunities. Like, exposure to high-level strategic decisions and understanding how their analyses impact the company’s financial performance. This business context is invaluable for analysts who aspire to take on broader business leadership roles. Also, the finance department’s interaction with every aspect of the business also allows analysts to develop a comprehensive understanding of the organization’s operations. Adversely, this broad exposure is often limited when analysts are embedded in specific business units or relegated to IT departments.

Enhanced Impact and Visibility

Positioning within finance typically provides analysts with greater visibility to senior leadership. Finance departments regularly interact with C-suite executives and board members, creating opportunities for analysts to showcase their work to key decision-makers. This visibility can lead to faster career advancement and greater recognition of their contributions. Furthermore, the finance department’s role in strategic planning means that analyses conducted by these teams often directly influence major business decisions. This level of impact can be highly motivating for analysts and helps attract and retain top talent.

Professional Development and Mentorship

Finance departments often have well-established professional development programs and clear career paths. Analysts can benefit from mentorship opportunities with experienced finance professionals who will help them develop both technical and business skills. This mentorship is particularly valuable for analysts early in their careers who are still developing their business acumen. Furthermore, the finance department’s emphasis on professional certifications and continuing education also benefits analysts. Many finance departments support and encourage professional development through formal training programs, conference attendance, and certification support.

Addressing Common Concerns

Some organizations worry that housing analysts in finance might disconnect them from the operational realities of business units. However, this concern can be addressed by using a client-service model. The departments have a consultative service in the form of the operations analyst and their managers. Although, others argue that placing analysts in IT allows for better technical support and development. While technical expertise is important, modern analytical tools and cloud platforms have reduced the need for deep technical integration. Finance departments can maintain strong partnerships with IT while keeping the focus on business outcomes.

Building a Successful Model

To maximize the benefits of housing operational analysts in finance, organizations should consider the following best practices in building a successful business model:

1. Establish clear service-level agreements with business units to ensure responsive support
2. Create formal rotation programs to maintain strong connections with operations
3. Develop structured communication channels between analysts and business unit leaders
4. Invest in ongoing training to keep analytical skills current
5. Build strong partnerships with IT to ensure technical needs are met
6. Implement clear career progression paths for analysts within finance
7. Above all, the operations analyst should be part of the department’s critical staff and planning meetings.

The Future of Operational Analysis

As businesses become increasingly data-driven, the role of operational analysts will only grow in importance. Housing these professionals within finance positions them to deliver maximum value while developing the business acumen needed for career advancement. This organizational structure aligns their analytical capabilities with financial outcomes while providing analysts with the support and opportunities they need to thrive.

Frequently Asked Questions

Q1: Won’t housing analysts in finance create delays in responding to urgent operational needs?

• No, when properly structured with clear service-level agreements and priority frameworks, finance-based analysts can be just as responsive as embedded analysts. The benefit is that their responses will be more consistently aligned with company-wide priorities and standards.

Q2: How can analysts maintain a deep understanding of business unit operations if they’re not embedded in those units?

• Through structured rotation programs, regular operational reviews, and formal liaison roles, analysts can maintain strong connections with business units while benefiting from the strategic perspective and standardized approaches that come from being housed in finance.

Q3: What’s wrong with keeping operational analysts in IT since they work with data and systems?

• While analysts do work with technical systems, their primary value comes from translating data into business insights. Housing them in IT can overemphasise technical considerations at the expense of business impact. Finance provides a better environment for developing business acumen while maintaining necessary technical partnerships with IT.

Salvatore Tirabassi See Full Bio