The journey to successful business partnering

Transcription

1 The journey to successful business partnering

2 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 Deloitte Services Pty Ltd

3 Finance Business Partnering is high on the CFO agenda Just over half 94% of finance leaders surveyed are involved in all aspects of strategic planning and performance management of the business % drive the process of Finance leaders look to increase Finance Business Partnering activity over the next 3 years. 2 in 3 45% finance organisations spend less than 30% of their time partnering with the business. of organisations still lack the control and efficiency of traditional accounting, reducing capacity to focus on business partnering. Benefits of Finance Business Partnering 56% 43% 58% 76% Better decision making based on data Better enablement of key strategic initiatives Better financial performance of the organisation Better sense of our risk 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 Deloitte Services Pty Ltd

4 Finance Business Partnering Video Part 1 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 Deloitte Services Pty Ltd

5 Video takeaways: What is at the heart of effective Finance Business Partnering? Simply communicating complex ideas Co-design Capabilitystrategic thinker Business understanding Collaboration Value adding activities Role clarification and definition of finance Expectations Agility Bring advice Having permission of the business Insights Deloitte Services Pty Ltd

6 Challenges in Finance Business Partnering 1 in 3 organisations have no co-ordinated approach to partner with the business. 43% have failed to achieve even a good level of business support for Finance Business Partnering. A quarter of respondents are unclear of the value that partnering could provide. Half 40% of the finance leaders surveyed have begun to identify value drivers and KPIs to better focus our Finance Business Partners. have started to better define Finance Business Partnering roles, in line with the organisational structure. 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 Deloitte Services Pty Ltd

7 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 Catalyst Strategist Driving forward business critical initiatives Guiding the business in deciding its strategic direction Example Business Partner Activities Leverage understanding of business KPI's that drive Financial performance to identify new Steward sources of revenue Act as a catalyst in driving forward initiatives critical to delivering the strategy Monitoring & Control Example Business Partner Activities Understand the business strategy and provide relevant insight to business performance Operator Become a key stakeholder in the decision making process through the provision of financial information and analysis Ensuring efficient Finance Operations Deloitte Services Pty Ltd

8 Where do you focus your time today? Where you would like to focus your time tomorrow? 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: ViewCatcher: 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 Industry Sector Banking Energy Funds General Insurance Life Insurance Media Retail Other ViewCatcher Keyword (not case sensitive) MelbBanking MelbEnergy MelbFunds MelbInsuranceGen MelbInsuranceLife MelbMedia MelbRetail MelbOther Deloitte Services Pty Ltd

9 Where do you focus your time today? Where you would like to focus your time tomorrow? 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. 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 Deloitte Services Pty Ltd

10 Finance Business Partnering Video Part 2 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? Deloitte Services Pty Ltd

11 The obstacles to effective business partnering 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: 1 Skills & Capabilities 39% of organisations surveyed believe that they do not have the right capabilities in Finance to successfully deliver business partnering 35% Commercial Acumen & Decision making 64% Challenge, Negotiation and Influence 61% Strategic Thinking 56% of organisations surveyed are identifying skills gaps and conducting training to up skill existing resources. 2 Time & Capacity 1 in 3 organisations state a lack of capability, combined with a lack of resource capacity as being the greatest barrier to effective Business Partnering. 94%of organisations surveyed looking to increase the time spend partnering with the business over the next 3 years 3 Relationships 42% of organisations believe lack of buy-in from the business is a barrier to finance business partnering 58% of Finance Business Partners report into Finance but have a dotted reporting line into the business Deloitte Services Pty Ltd

12 Turning obstacles into opportunities Skills & Capabilities Time & Capacity Relationships What skills does a business partner in my organisation need? Where are my skills and capability gaps or gaps within my team? Where am currently spending my time? Do I have the right balance between steward, operator, catalyst and strategist every role is different. 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? 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? 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? 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? Deloitte Services Pty Ltd

13 What Finance Capabilities should I be developing Critical professional and technical capabilities have been identified across leading Finance functions...but every organisation is different! Critical thinking Collaboration & busn partnering Org change management Strategic thinking/visioning Busn and comm l acumen Translating data into busn terms Influencing Communication Negotiation Inquiring & challenging Analytical reasoning Structured problem solving Active listening Judgement in decision making Customer orientation Catalyst Strategist Foster innovation Dealing with ambiguity Planning & perf evaluation Profitability mng & productivity Data gathering, analysis & reporting Change management Financial analysis Insight generation & recommendations Internal control & financial governance Accting & external reporting Steward Operator Leveraging & driving system capabilities Project management Metrics & mng reporting Contract management Peer collaboration Interpersonal skills Issue diagnosis & resolution Quality management Project management Ownership & accountability Setting priorities Planning and organisation Systems / process excellence Business process design External resource management Knowledge management Professional Technical Key 13 capability capability 2014 Deloitte Services Pty Ltd

14 The Journey to Effective Finance Business Partnering There are three key questions to be answered: Where can I add value within my organisation as a Finance Business Partner? 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? Deloitte Services Pty Ltd

15 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? Have you spent enough time this week working with the business on their priorities? Do you network with your business counterparts and decision makers as a matter of course.not just when they need you? Deloitte Services Pty Ltd

16 General information only This presentation contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively the Deloitte Network ) is, by means of this presentation, rendering professional advice or services. 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 for any loss whatsoever sustained by any person who relies on this presentation. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte's approximately 195,000 professionals are committed to becoming the standard of excellence. About Deloitte Australia In Australia, the member firm is the Australian partnership of Deloitte Touche Tohmatsu. As one of Australia s leading professional services firms. Deloitte Touche Tohmatsu and its affiliates provide audit, tax, consulting, and financial advisory services through approximately 6,000 people across the country. Focused on the creation of value and growth, and known as an employer of choice for innovative human resources programs, we are dedicated to helping our clients and our people excel. For more information, please visit our web site at Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Touche Tohmatsu Limited 2013 Deloitte Services Pty Ltd Deloitte Services Pty Ltd