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The journey to successful business partnering

The journey to successful business partnering · The journey to successful Business Partnering What we will cover today….. What is Finance Business Partnering and why is it important?

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Page 1: The journey to successful business partnering · The journey to successful Business Partnering What we will cover today….. What is Finance Business Partnering and why is it important?

The journey to

successful business

partnering

Page 2: The journey to successful business partnering · The journey to successful Business Partnering What we will cover today….. What is Finance Business Partnering and why is it important?

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

Page 3: The journey to successful business partnering · The journey to successful Business Partnering What we will cover today….. What is Finance Business Partnering and why is it important?

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

Page 4: The journey to successful business partnering · The journey to successful Business Partnering What we will cover today….. What is Finance Business Partnering and why is it important?

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

Page 5: The journey to successful business partnering · The journey to successful Business Partnering What we will cover today….. What is Finance Business Partnering and why is it important?

5 © 2014 Deloitte Services Pty Ltd

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

Page 6: The journey to successful business partnering · The journey to successful Business Partnering What we will cover today….. What is Finance Business Partnering and why is it important?

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%

Page 7: The journey to successful business partnering · The journey to successful Business Partnering What we will cover today….. What is Finance Business Partnering and why is it important?

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

Page 8: The journey to successful business partnering · The journey to successful Business Partnering What we will cover today….. What is Finance Business Partnering and why is it important?

8 © 2014 Deloitte Services Pty Ltd

ViewCatcher: http://viewcatcher.deloitte.com.au/

•ViewCatcher is an anonymous voting tool which enables a large audience to quickly connect and vote on predefined questions via their smart phones from anywhere in the world

•To Log in please accept the terms and conditions by checking the box

•If you wish to read the terms and conditions please click on terms and conditions (in green)

•Please write the session keyword into the space provided and click or touch Join Session

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:

Page 9: The journey to successful business partnering · The journey to successful Business Partnering What we will cover today….. What is Finance Business Partnering and why is it important?

9 © 2014 Deloitte Services Pty Ltd

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

Page 10: The journey to successful business partnering · The journey to successful Business Partnering What we will cover today….. What is Finance Business Partnering and why is it important?

10 © 2014 Deloitte Services Pty Ltd

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

Page 11: The journey to successful business partnering · The journey to successful Business Partnering What we will cover today….. What is Finance Business Partnering and why is it important?

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%

Page 12: The journey to successful business partnering · The journey to successful Business Partnering What we will cover today….. What is Finance Business Partnering and why is it important?

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

Page 13: The journey to successful business partnering · The journey to successful Business Partnering What we will cover today….. What is Finance Business Partnering and why is it important?

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’

Page 14: The journey to successful business partnering · The journey to successful Business Partnering What we will cover today….. What is Finance Business Partnering and why is it important?

14 © 2014 Deloitte Services Pty Ltd

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

Page 15: The journey to successful business partnering · The journey to successful Business Partnering What we will cover today….. What is Finance Business Partnering and why is it important?

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?

Page 16: The journey to successful business partnering · The journey to successful Business Partnering What we will cover today….. What is Finance Business Partnering and why is it important?

16 © 2014 Deloitte Services Pty Ltd

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Before making any decision or taking any action that may affect your finances or your business, you

should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible

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© 2013 Deloitte Services Pty Ltd