Chief Financial Officer at the Bays Healthcare

Steven Taylor

Assuming the role of CFO in a new organization is no small feat. When I first started, I took the time to observe and analyze how the finance team operated. My goal was to identify ways the team could significantly impact the organization and create meaningful growth opportunities for individuals. After reviewing the team's processes, it became apparent that we needed to shift our mindset from one focused on transaction and compliance to one centered on business partnering.

Typically, non-finance personnel enter an organization at a lower level, excel in their duties, and advance to managerial positions. However, overnight, it is often assumed that they suddenly now possess an innate comprehension of financial concepts such as profit and loss statements and budgets and the ability to identify factors that can improve their outcomes.

In today's rapidly evolving business landscape, the role of finance teams has undergone a significant transformation. No longer confined to traditional tasks such as planning and analysis, core finance, controls, and compliance, finance teams are now expected to collaborate with other departments and drive business performance. This shift towards finance business partnering has become essential for companies to adapt and thrive amidst geopolitical, economic, technological, and competitive changes.

The Importance of Establishing Finance Teams as Business Partners

The traditional perception of finance teams as bean counters sitting in the back office, hiding behind their spreadsheets, and as corporate police, only engaging when something goes wrong, is no longer sufficient. Business leaders now demand and expect active partnerships from the finance team. They consider finance the center of corporate intelligence, information, and decision-making. Finance teams must establish themselves as strategic business partners to meet these expectations and add value.

A finance business partner (FBP) is a role within the financial department that supports and challenges the business to create value against acceptable levels of risk. FBPs turn opportunities and threats into business drivers, leveraging enablers and anticipating constraints. They use technology for competitive advantage and look into the future to provide in-depth analysis and insights for practical performance assessment. Establishing the finance team as business partners requires a shift in mindset and adopting best practices.

The Role of Financial Business Partners

Financial business partners are crucial in bridging the gap between finance and other organizational departments. They act as a strategic link, providing financial insights and recommendations for decision-making. FBPs are responsible for turning external opportunities and threats into drivers for business partnering. They leverage enablers, such as real-time information, and anticipate constraints hindering value creation. FBPs utilize technology to gain a competitive advantage and make data-driven decisions. By looking into the future and conducting in-depth analysis, FBPs contribute to the overall performance assessment of the business.

Transitioning from Transaction Focused to Business Partners

Several vital steps must be taken to establish the finance team as a strategic business partner. These steps include adopting best practices for financial planning and analysis (FP&A), automating manual processes, standardizing data and definitions, investing in an integrated business planning and analytics tool, and encouraging cross-functional collaboration. By following these steps, finance teams can effectively transform themselves into value creators and play a crucial role in strategic decision-making.

Adopting FP&A Best Practices

Adopting FP&A best practices is crucial for finance teams to become effective business partners. This includes undertaking financial analysis to identify trends and patterns, preparing reports for operational and financial success, collaborating with departments to collect and consolidate financial data, creating and maintaining financial forecasts and models, and preparing detailed reports and presentations for decision-making.