The journey to successful business partnering · The journey to successful Business Partnering What...
Transcript of The journey to successful business partnering · The journey to successful Business Partnering What...
The journey to
successful business
partnering
2 © 2014 Deloitte Services Pty Ltd
The journey to successful Business Partnering
What we will cover today…..
What is Finance Business Partnering and why is it important?
The role of finance and how you spend your time?
The journey to successful Finance Business Partner
Overcoming the obstacles
3 © 2014 Deloitte Services Pty Ltd
Finance Business Partnering is high on the CFO agenda
finance organisations spend less than
30% of their time partnering with the
business.
2 in 3
Benefits of Finance Business Partnering
of Finance leaders look to increase
Finance Business Partnering activity over
the next 3 years.
94%
of finance leaders
surveyed are involved in all aspects of
strategic planning and performance
management of the business....
drive the process...17% of organisations still lack the control
and efficiency of traditional accounting,
reducing capacity to focus on business
partnering.
45%
Just over half
If the finance function gets business partnering right, they
become an integral contributor to key business processes,
including target setting, forecasting, capital investments, risk
management and governance.
Effective partnering can lead to better business decision-making,
enablement of strategic initiatives and improved financial
performance. However, for many, achieving these benefits
presents significant difficulties.
76%
58%
56%
43%
Better decision making based on data
Better enablement of key strategic initiatives
Better f inancial performance of the organisation
Better sense of our risk
4 © 2014 Deloitte Services Pty Ltd
CFOs and Heads of Finance
interviewed:
- NBN
- Westpac
- Lend Lease
- AXA
- Macquarie
To gain perspectives on:
- How the Business expectations of the
CFO and Finance is changing
- The role of a Finance Business
Partner
- The biggest challenges to operating as
effective Business Partners?
- What makes a great Business
Partner?
- The skills and capabilities that are
most important and which are in the
shortest supply
Finance Business Partnering Video – Part 1
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Video takeaways: What is at the heart of effective Finance Business Partnering?
Business
understanding
Co-design
Collaboration
Value adding
activities
Having permission
of the business
Agility
Capability-
strategic thinker
Role clarification and
definition of finance
Simply communicating
complex ideas
InsightsBring
advice
Expectations
6 © 2014 Deloitte Services Pty Ltd
Challenges in Finance Business Partnering
have failed to achieve even a good level
of business support for Finance Business
Partnering.
43%
organisations have no co-ordinated
approach to partner with the business.
1 in 3
of respondents are unclear of
the value that partnering could provide.
A quarter
Our view
Finance leaders must set a clear agenda for finance business partnering to help to deliver the business
strategy.
By understanding where partnering effort will add the most value, business partnering activities can be
meaningfully prioritised.
By working with the business to agree priorities from the outset, finance can gain the necessary buy-in
and support from the business to their partnering role.
of the finance leaders surveyed have
begun to identify value drivers and KPIs
to better focus our Finance Business
Partners.
Half
have started to better define Finance
Business Partnering roles, in line with the
organisational structure.
40%
7 © 2014 Deloitte Services Pty Ltd
Guiding the business in
deciding its strategic
direction
Ensuring efficient Finance
Operations
Monitoring & Control
Driving forward business
critical initiatives
‘Catalyst’ ‘Strategist’
‘Operator’‘Steward’
Example Business Partner Activities
• Leverage understanding of business KPI's that drive
Financial performance to identify new sources of
revenue
• Act as a catalyst in driving forward initiatives critical to
delivering the strategy
Example Business Partner Activities
• Understand the business strategy and provide relevant insight
to business performance
• Become a key stakeholder in the decision making process
through the provision of financial information and analysis
The changing role of Finance
Effective Business Partnering requires Finance to shift the focus of where it spends its time and how
it engages with the Business.
Business partnering involves increased focus on operating as a Strategist and Catalyst
8 © 2014 Deloitte Services Pty Ltd
ViewCatcher: http://viewcatcher.deloitte.com.au/
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Where do you focus your time today?
Where you would like to focus your time tomorrow?
Industry Sector ViewCatcher Keyword (not case sensitive)
Banking MelbBanking
Energy MelbEnergy
Funds MelbFunds
General Insurance MelbInsuranceGen
Life Insurance MelbInsuranceLife
Media MelbMedia
Retail MelbRetail
Other MelbOther
Using the ViewCatcher online tool, we will assess how your Finance team currently
spends their time and how they would like to spend their time in the future:
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First Question:
How do you currently split your time across
each of the 4 Faces of Finance?
Second Question:
Given the changing role of finance…
How would you like to would like to split your time
across each of the 4 Faces of Finance?
We will discuss as a group the responses received.
Where do you focus your time today?
Where you would like to focus your time tomorrow?
ViewCatcher - points to note:
•To vote please slide the slider scales to the desired location and click submit
•You can tell your response has been received when the light grey bar at appears
•If you wish to update your response just change your response and click update
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CFOs and Heads of Finance
interviewed:
- NBN
- Westpac
- Lend Lease
- AXA
- Macquarie
- How have their Organisation’s
developed better Business Partnering
capabilities
- What is the best example of Finance
Business Partnering that you have
seen?
Finance Business Partnering Video – Part 2
11 © 2014 Deloitte Services Pty Ltd
The obstacles to effective business partnering
organisations state a lack of
capability, combined with a lack of
resource capacity as being the greatest
barrier to effective Business Partnering.
1 in 3
of organisations surveyed are
identifying skills gaps and conducting
training to up skill existing resources.
35%
1 Skills & Capabilities
2 Time & Capacity
Relationships
of organisations believe lack of buy-in
from the business is a barrier to finance
business partnering
42%
3
of Finance Business Partners report
into Finance but have a dotted reporting
line into the business
58%
The biggest barrier to business partnering is Finance system and data accessibility. 58% of leaders
ranked this in their Top 3 barriers. However the next 3 biggest barriers are all people related:
94%of organisations surveyed looking to
increase the time spend partnering with
the business over the next 3 years
of organisations surveyed believe that they
do not have the right capabilities in Finance
to successfully deliver business partnering
39%
Commercial
Acumen &
Decision
making 64%
Challenge,
Negotiation
and Influence
61%
Strategic
Thinking 56%
12 © 2014 Deloitte Services Pty Ltd
• How well do I understand
what drives value in the
business I work in?
• Who do I face-off to in the
business and would I evaluate
my relationship with them?
• When was the last time I
spoke to this person about
operational performance or
strategy?
• What financial insight could I
bring to my next meeting with
my business colleagues?
Turning obstacles into opportunities
Relationships
• Where am currently spending
my time?
• Do I have the right balance
between steward, operator,
catalyst and strategist…every
role is different.
• How can I free up capacity to
work more closely with the
business and support them?
• Where would I focus my time
to create the biggest business
partnering impact?
Time & Capacity
• What skills does a business
partner in my organisation
need?
• Where are my skills and
capability gaps or gaps within
my team?
• How can I develop the skills
and experience to operate
more effectively as a
business ?
• Who in my organisation would
I consider to be a good
business partner; who I could
learn from?
Skills & Capabilities
13 © 2014 Deloitte Services Pty Ltd
Critical professional and technical capabilities have been identified across leading Finance functions ….
…..but every organisation is different!
Inquiring & challenging Analytical reasoning
Strategic
thinking/visioning
Translating data into
busn terms
Structured problem
solving
Busn and comm’l
acumen
Foster innovation Dealing with ambiguity
Metrics & mng
reportingContract management
Critical thinking
Influencing NegotiationCommunication
Collaboration & busn
partnering
Org change
management
Active listeningJudgement in decision
makingCustomer orientation
Knowledge
management
Business process
design
Setting priorities
Project management
Ownership &
accountability
Systems / process
excellence
External resource
management
Quality managementIssue diagnosis &
resolution
Planning and
organisation
Interpersonal skillsPeer collaboration
Internal control &
financial governance
Accting & external
reporting
Leveraging & driving
system capabilitiesProject management
Change management
Planning & perf
evaluation
Profitability mng &
productivity
Financial analysisData gathering,
analysis & reporting
Insight generation &
recommendations
What Finance Capabilities should I be developing
KeyProfessional
capability
Technical
capability
‘Catalyst’ ‘Strategist’
‘Operator’‘Steward’
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Where can I add value within my organisation as a
Finance Business Partner?
There are three key questions to be answered:
What specific activities do I need to start doing….or do
more of?
What changes need to take place within my
organisation to enable me to provide more effective
Business Partner support?
The Journey to Effective Finance Business Partnering
15 © 2014 Deloitte Services Pty Ltd
Some finance professionals are on the way to being great business partners.
Are you one of them? Take a look in our mirror to see how you stack up…..
Can you name the top three concerns of
your organisation or the business team you
work with?
Do you know what the business thinks of the services you
provide? Do you know what the business would like you to do
more of?
Are you developing the professional and technical skills to support
the business effectively as a business partner?
Do you network with your business counterparts and
decision makers as a matter of course….not just
when they need you?
Have you spent enough time this week working with the business
on their priorities?
16 © 2014 Deloitte Services Pty Ltd
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