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What Is Business Finance Role – In a changing and uncertain business environment, chief financial officers (CFOs) and finance functions must evolve to be at the center of the decision-making process in their organizations.
Interacts with business and finance leaders to explore how finance functions are evolving from back-office support functions that support and enable decision-making within the organization to business-critical functions to help address the changing role of accountants in business.
What Is Business Finance Role
On this page, you’ll find the latest thoughts, resources, articles and thought leadership from our global network of future-ready CFOs and finance departments. It includes a vision of the future finance function, the key roles of finance and accounting professionals that will become an integral part of organizations over the next decade, and an assessment tool to help guide the transformation of the finance function.
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November 15, 2021 | Presentation by Simon Connell, Global Head of Sustainability Strategy and Subhradeep Mohanty, Regional CFO for Africa and Middle East
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Our reproduction and translation policies, as well as our online request and permission request system, can be found on our Permissions webpage. The marketing director of a company I worked for a long time ago said during a seminar, “Functions like finance, HR, and IT are just overhead. They do not add value. They don’t do new business, they don’t sell anything and they don’t produce anything.”
I didn’t answer at the time, but I remember being in a lot of pain. I felt inferior and said I was worthless for the job.
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At the time, I was quite naive – I soon started my first job outside of public practice.
Here are some of my insights into the relationship between the finance function and other parts of the business, gleaned from working at more than thirteen different companies in the more than twenty years since.
One thing that has periodically troubled my pedantic brain over the years is the use of the term “business partner” to describe certain roles in functions that support and control the core business activities (the core activity being the provision of goods or services to customers). In my experience, finance and HR often use this term. I even use the phrase myself because I know what people mean by it!
In a broad sense, being a “business partner” simply means being the link between your function and another.
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I think what annoys me about this term is the misunderstanding it potentially creates. This misunderstanding can be expressed in several exaggerated expressions:
, or maybe it just costs money. They don’t produce, sell, or provide services, so they’re less important.”
So you have people in your business who are not part of your business, but if you like them enough, you can let them.
“Running a business is more about decision making than routine processing and control. I, the CEO and my board of directors,
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So other people in functions just record, maintain, monitor and do. They are not actually part of the business. They are just doing business I guess!
I’ve always had a wry smile on my face when people say “we should ask the business about that” or “it’s up to the business”.
What I mean is this: we are all businesses together. We all need each other. Not only people who make important decisions. Not just the people who manufacture, sell and supply.
There is a passage in the Bible that speaks of the church this way. He equates the church with the body. No part of the body can call itself a body, but without each part the body would not be a whole body. Each part has its own role, place and importance in the overall functioning of the body. The church is a body. Therefore, each member of the church has a gift and a calling from God that contributes to the common function and purpose of the church. We cannot do without each other.
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We are all parts of a business, and if each part is not working properly and together, the business will fail.
This is my basic attitude towards relationships in business. Each function and personality must support each other in achieving a business goal – such as more customers, more sales, more profit, lower costs, a better brand, happier shareholders, stable cash flow, better communities, and more.
So when I lead the finance team, I encourage them to see themselves first as someone who helps the business achieve its goals, and then if we can help our colleagues across all of our functional relationships, it ensures that we operate as one. .
On the other hand, operations, customer service, marketing, HR, IT, etc. when I talk to my field colleagues, I’m sure they know why I’m there. Basically, we are on the same side.
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I may have to challenge their spending or performance against sales goals, ask clients why they aren’t collecting money fast enough, set tight budgets, cut costs, and do a lot of things they don’t like. But if they fundamentally know that I’m doing it – and Finance does – because we’re fulfilling our mandate to help businesses succeed, then it’s more about asking them to help them achieve their goals, but also offering help in achieving their goal.becomes .
So, what are the things that financial business partners should keep in mind to do a good job?
The first observation I would like to make is that character differences create a lot of friction. But it can be recognized and work together better.
Obviously, Myers-Briggs (MBTI), Insights, Belbin, StrengthsFinder, and numerous personality assessments clearly demonstrate this. But it really goes without saying.
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But you also get certain personalities who are attracted to certain roles and functions. I believe that certain personality traits go hand in hand with certain skills (although that’s a generalization that doesn’t always work).
For example, an analytical person may be attracted to the fields of finance and IT, where there is a certain process, logic and numerical certainty. On the other hand, a sociable person may gravitate towards areas related to people – HR, sales or marketing.
Recognizing the strengths and weaknesses of certain personality styles in different situations really helps people work well together. Instead of looking down on a marketing or sales person who can’t make sense of the numbers or is acting erratically, we analysts can patiently help them. We also need their help when we need a little more expansive, creative or unstructured thinking.
“What does he know about the development of our financial product? So how can they ask us to do it more effectively?”
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“Why does Finance require us to fill in unnecessary information on our transaction screens? They are just wasting our time.”
“Why does finance always need a signature on every paper?” They are the reason we are not as efficient as we could be.”
What a company is trying to do is make money for its shareholders. So finance will always be at the center and will have its fingers in many pies. And this can sometimes be seen as an intrusion into things we know nothing about.
But before I say more about the dialogue between finance and other industries, I want to clarify one thing.
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We finance professionals are usually trained in finance first as accountants and then as analysts and financial managers. We don’t (usually) study manufacturing, engineering, C++ programming, or human resource management!
! We know there are things we know and things we don’t know, things we’re good at and things we’re not.
For example, I may know little about C++ or .net frameworks or web design, but when I go to IT to hire software development contractors, I don’t need to know all that.
I need to know what the application is for and how it will help the business (financial or non-financial). If they can’t tell me, or if their benefit reports are audited, then I have the right (perhaps the duty) to offer a rescission/reconsideration as the person responsible for their financial success.
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It may also be true that no one has a perfect understanding of how a business works. Businesses are complex, made up of imperfect humans, machines created by humans, and computer programs written by imperfect humans! Things never work 100% perfectly! Because we are not perfect, we can be the cause
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