Today, we're diving into what is Finance Business Partnering and how it works.
At its essence, Finance Business Partnering marks a departure from the traditional role of finance as a support function. The primary objective is to forge a closer alignment between finance, business teams and the broader business strategy.
Different Definitions:
Here are the definitions of Finance Business Partnering from various experts
KPMG and CIMA:
EY
Deloitte:
ACCA:
PwC:
Business Partnering Institute:
Common themes across these definitions, including sound financial analysis, driving future performance, creating impact and influence, bringing insights and foresights, building relationships, and understanding the business.
Recommended by LinkedIn
Evolution of Finance Function:
Traditionally perceived as a support function providing data and analysis, finance's role has undergone a significant shift.
Finance Business Partnering positions finance professionals as strategic collaborators actively working alongside business leaders to achieve shared goals. This paradigm shift necessitates a deep understanding of the business, its goals, and the market dynamics in which it operates.
Requirements for Success:
The success of Finance Business Partnering hinges on finance professionals possessing not only technical expertise but also a robust blend of business acumen, communication skills, collaboration, and strategic thinking.
Finance professionals must transition from being mere experts in finance to becoming business experts capable of contributing to the growth and success of the organization.
Benefits of Adopting Finance Business Partnering:
There are compelling reasons for organizations to embrace Finance Business Partnering.
Firstly, it breaks down the traditional silos between finance and the rest of the business. By actively collaborating with business leaders, finance professionals gain a holistic understanding of the business, enabling them to provide relevant and timely insights.
Secondly, this approach enhances the quality of decision-making within the business. By aligning insights with the overall business strategy, finance ensures that decisions are not only informed but also considerate of financial implications.
Thirdly, Finance Business Partnering contributes to the overall performance improvement of the business. The collaborative effort between finance and business leaders identifies growth opportunities, leading to increased revenues, improved performance, and a more robust competitive position.
Attributes of Successful Finance Business Partners:
Successful finance business partners need to be proactive, collaborative, and strategic in their approach.
Working closely with business leaders, they identify growth opportunities and make informed decisions aligned with the overall business strategy.
It's not just about providing data and analysis but about adding tangible value to the business through strategic insights.
Conclusion:
In conclusion, Finance Business Partnering emerges as a strategic approach that goes beyond the conventional boundaries of finance.
It necessitates a paradigm shift in the role of finance professionals, requiring them to be active contributors to the business's strategic objectives.
The collaborative and strategic nature of Finance Business Partnering positions it as a transformative force in enhancing decision-making, resource utilization, and overall financial outcomes.
As finance professionals navigate this evolving landscape, the journey from being experts in finance to becoming indispensable business partners holds the key to success.
