I recently participated in a panel discussion on authentic leadership in FP&A. Before our session, the panellists were chatting with each other about our topic. One of the panellists mentioned that sometimes he feels like a psychologist to his Business Partners. While the topic of the panel was focused on leadership qualities, his comment got me thinking about how we apply those same soft skills as Business Partners. FP&A are key Business Partners who help drive strategy and have access to privileged information in many cases. It puts us in a unique position to be good listeners and be empathetic to our Business Partners as we navigate challenges.

According to Deloitte UK¹, 42% of the respondents highlighted relationship management as a priority competency for a Finance Business Partner. Empathy, which is the action of understanding and being sensitive to the feelings and experiences of others, can help us establish trust and strengthen relationships. Increased trust will improve communication and lead to greater success. Many believe that empathy is an innate trait rather than a skill. However, Deloitte research has shown that it is a skill that can be learned and developed.

Soft skills, such as empathy, are increasing in demand as sought after capabilities for FP&A talent. As per the 2023 FP&A Trends Survey, there was a 17% rise in demand for Business Partnering skills for those surveyed, increasing from 24% in 2022 to 41% in 2023. While analytical skills remain a top recruiting priority for finance talent, there is a strong shift toward the need for soft skills. It underscores the growing recognition of the value of collaboration and bridging the gap between finance and other functions through soft skills and Business Partnering.

Steps to Develop Empathy in Business Partnering

1. Utilise Active Listening Skills

Sometimes, your Business Partners may just need to vent. A project may not be going well, or the latest reorganisation has impacted morale, and your Business Partners may need someone to listen to them but not necessarily provide a solution. Pay attention to your Business Partner without interrupting, as this is a sign of respect that goes hand-in-hand with empathy. Seek to learn to respect their point of view, even if it differs from yours. You can understand your Business Partner’s perspective and establish a deeper connection by practising active listening and asking open-ended questions.

2. Seek Feedback and Be Open to Constructive Criticism

Maintain an open attitude and solicit feedback from your Business Partners. Practising Emotional Intelligence and questioning how you interact with others can help you earn their respect.

3. Show Genuine Interest

Show genuine interest in your Business Partner’s lives and experiences. Get to know them on a personal level. Find common ground and be authentic in establishing your relationships.

4. Ask Essential Questions

Asking essential questions can help you develop empathy in your Business Partnering. Make sure to use your active listening skills from step one to demonstrate your interest and commitment to understanding and caring about your Business Partners’ needs. Avoid making assumptions about your Business Partner’s needs or challenges. Instead, ask open-ended essential questions to clarify their circumstances and concerns.

Some examples of essential questions are:

• What are the pain points or challenges you’re currently facing, and how can I help alleviate them?
• What are your values and priorities, and how can I align my approach to better serve you?
• What are your goals and objectives, and how can I better support you in achieving them?
• Are there key metrics or insights you would like me to provide for tracking to achieve your goals?

5. React with Compassion

It is important to react calmly and compassionately to your Business Partners. Be sincere and authentic in your conversations and work to understand your Business Partners’ perspective without judgement. Build trust by being honest, respectful, and accountable in your interactions with your partners.

6. Be Your Business Partner’s Advocate

FP&A is uniquely positioned to communicate business challenges and information to leadership as part of variance commentary or forecast compilation. Having your Business Partner’s back is an easy way to establish trust. We recently had a data request, and one of our Business Partners was concerned that any response to this request would contain sensitive information. Since we were empathetic to our Business Partner’s concerns, we took the extra step to understand the context of the request, the reason for the data request, and who would have access to the information before providing any details. Once we understood these factors, we were able to provide the data in a more generalised format to disguise its sensitivity. Our Business Partners gave us feedback that our acting as the mediator and asking questions helped us earn a higher level of respect and trust from their perspective.

Conclusions

In summary, empathy is recognised as a key competency for the future of FP&A. Empathy in Business Partnering is crucial for building strong, long-lasting relationships. We can establish a more personal connection by understanding others’ feelings, perspectives, and experiences. Personal connections foster trust, closeness, and proactive behaviours. Empathy allows for a deeper understanding of our Business Partners’ needs, concerns, and perspectives, enabling FP&A leaders to tailor their approach to better serve them, which in turn can improve business performance.

References:

1 – Changing the Focus: Finance Business Partnering. Deloitte.

https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/finance-transformation/deloitte-uk-finance-business-partnering.pdf Accessed June 4, 2024