In this blog I identify a major pain point which prevents finance teams (and other functions) from being effective business partners. See how your team can connect better with the business and the huge benefits that brings…
As well as performing an important technical role, the functions within a business also perform the key role of business partner. At least they should…
Whether we are talking about the finance department, HR, IT or another function, there is a clear trend away from being a ‘cost centre’ towards being a value driver. However, this requires a connection from the back office to the operations which is not always easy to create, let alone to maintain.
My professional field is finance, and the industry in which I have worked the most is logistics. Just like most industries, logistics has its own unique language. Its language is composed of specific words, in addition to numerous acronyms. (FTL, LCL, EXW, TEU, BAF, VGM, etc etc)
Finance too has its own language and terminology. Whilst this makes perfect sense to accountants, it can be baffling to everyone else.
So here is the problem in simple terms… the functions and the business speak different languages.
The subsequent problem is that the functions don’t provide the service required by the business. At the same time, the business doesn’t have confidence in the functions and is less likely to engage with them more than is absolutely necessary. As this situation continues, each part of the business tends to work in isolation which undoubtedly is counter-productive for the entire organisation.
From a finance perspective, this could mean the following:
All of this makes it hard to deliver the value which should exist when business partnering works properly. So then, the key question is… “How to make your team better business partners?”
The good news is that a solution is available.
I was fortunate that when I started working in the logistics industry, I was located in an operational branch rather than in a finance department. This meant that I was surrounded by operational staff and management who were at the sharp end of the business. This circumstance coupled with my own curious nature was a perfect setting for learning the language of logistics… and not just being aware of some terminology. I had first-hand knowledge of the business drivers and issues from the branch perspective. Furthermore, I could connect the business issues and drivers to the financial reporting.
The solution for every business-facing member of the finance team is to get out of the finance office and regularly spend time in the operations. This applies to CFOs, FP&A teams, management accountants, business analysts, etc… Look for opportunities to meet with the various business stakeholders. Listen to them. Find out what’s really going on. What are their pain-points and how can you provide a solution.
What about the members of the finance team who are not directly facing the business? Yes! Even the more transactional roles benefit from having a better understanding of the business.
Although the company had an induction pack in place, it was not delivering the hoped-for results.
Using an induction pack to teach about the company and industry is like learning a new language by reading a text book. It rarely works! Learning a language requires an engaging tutor and interactive lessons.
Thankfully the company engaged with me to develop an induction program. Therefore, I proposed a training concept based on those principles. Face to face. Interactive.
There are many benefits to becoming better business partners.
Your team will have greater motivation since they will understand their work in the context of the overall business.
With greater motivation comes higher staff retention. As a result, you have lower staff turnover and lower recruitment costs.
Even better, the department gains a reputation for understanding the business needs.
The best result is helping business unit managers to understand and take an interest in their financial reports and see how they can positively impact the financial results.
Being a business partner can only be achieved when the business views you as a credible partner.
In conclusion, you can easily overcome the pain-points. With a small investment in training, your team can become better business partners.
Complete the contact form and I will get in touch with you to discuss your requirements. Let’s connect your team with the business!
