Introduction

Back in the day, FP&A professionals were mainly responsible for gathering, processing and presenting data. Their job revolved around compiling data and analysing the trends with little involvement in strategic decision-making. However, the business landscape has drastically changed over the years. Today, the industry needs more than just data compilers: businesses seek strategic partners who can drive success through well-informed decisions. Drawing from my experience of more than twenty years in the finance sector, I have personally witnessed this shift from traditional finance roles to the dynamic world of modern Business Partnering.

This article delves into how FP&A professionals have evolved and highlights the skills needed to thrive as business collaborators in today’s fast-paced business environment.

Traditional FP&A Professionals versus Contemporary Finance Business Partners

Not so long ago, FP&A experts were primarily focused on gathering and presenting financial data. Their main tasks included creating reports, analysing variances, and offering historical insights to stakeholders. However, contemporary Finance Business Partners go beyond these constraints. They don't just handle data; they actively contribute to the organisational strategy and performance.

The role of a Finance Business Partner is diverse and covers controllership, performance management and strategic advisory. They streamline operations, ensure project progress, offer valuable decision support and play a key role in shaping the organisation's strategy. Transitioning from FP&A roles to strategic Business Partnering demands a change in mindset, skill set and approach.

Becoming a Modern Finance Business Partner

FP&A professionals need to develop their skills, mindset and approach to make this shift from traditional FP&A roles to strategic Business Partners. Below are some essential steps for this transformation.

• Embrace Technological Advancements

The rise of technologies like automation, Artificial Intelligence (AI) and advanced data analytics has transformed the finance function. Finance experts should welcome these changes to simplify routine tasks, improve data accuracy and generate valuable insights.

From my experience leading the implementation of three different Enterprise Resource Planning (ERP) systems over my career journey, I can see that a Finance Business Partner emphasises the importance of having a comprehensive understanding of the entire business while customising ERP systems accordingly. During the ERP projects I led, I integrated not only the finance module but the production module as well, which required a deep understanding of production processes, supply chain management, quality control and other operational aspects. We were able to enhance efficiency, visibility and decision-making across different departments by aligning the ERP system with the organisation’s needs.

• Expanding Cross-Functional Knowledge

Apart from their finance expertise, modern Finance Business Partners should have a comprehensive understanding of various business functions. They need insights into operations, marketing, sales and supply chain management to develop a view of organisational dynamics. Collaborating closely with functional teams enables FP&A professionals to identify interdependencies and proactively contribute to strategic initiatives.

• Improving Communication Skills

Effective communication plays a vital role in successful Business Partnering. Modern finance professionals must develop interpersonal skills and the ability to explain complex financial concepts in simple terms. Adapting their communication style to audiences like senior executives, operational managers, and frontline staff is essential. By fostering transparent communication channels, FP&A professionals can establish trust and credibility with stakeholders while increasing their influence.

• Developing Analytical Skills

Strong analytical skills are fundamental for Finance Business Partnering. FP&A experts need analytical abilities to extract practical insights from large volumes of financial information. They should excel in modelling, forecasting, analysing variations and planning for different scenarios to aid in making strategic decisions. FP&A professionals can discover patterns, detect opportunities and mitigate risks by utilising data analytics, which can ultimately lead to enhancements in performance and business expansion.

• Building Collaborative Relationships

Establishing partnerships across various departments is crucial for effective business collaboration. FP&A specialists must work closely with teams from other functions to align financial objectives with operational goals. They should gather input from stakeholders, request feedback, and proactively interact with other Business Partners to promote alignment, responsibility and ownership. By nurturing a culture of teamwork and cooperation, FP&A professionals can dismantle barriers between departments, encourage knowledge sharing and contribute to the company’s success.

Delivering Value as a Finance Business Partner

A skilled Finance Business Partner brings value to an organisation through important means, as listed below.

• Enhancing Performance

By utilising insights and analytics effectively, Finance Business Partners can pinpoint areas that need improvement and implement strategies to boost operational efficiency, productivity and profitability. They can monitor Key Performance Indicators (KPIs), track progress against set targets and take proactive steps to tackle issues while driving initiatives for continuous improvement.

Finance Business Partners play a pivotal role in supporting decision-making by providing timely and accurate financial insights that help inform decisions across the entire organisation. They analyse scenarios, evaluate the financial consequences of strategic actions, and offer suggestions to optimise resource allocation, manage risks, and enhance returns on investments (ROI). Acting as trusted advisors to management, Finance Business Partners foster strategic adaptability and responsiveness in a rapidly changing business landscape.

Moreover, Finance Business Partners focus on strengthening relationships with stakeholders by fostering trust, credibility and effective communication through interactions and valuable insights. They serve as intermediaries between finance functions and other departments to bridge the gap between objectives and operational realities. Through building partnerships with key stakeholders, Finance Business Partners ensure alignment, support and commitment to strategic initiatives that drive organisational triumph and shareholder value.

Furthermore, Finance Business Partners proactively anticipate trends by analysing market movements, economic indicators and competitive dynamics to predict upcoming opportunities and obstacles. They engage in Scenario Planning exercises, stress tests and sensitivity analyses to gauge how external factors may influence business performance. By keeping pace with the industry shifts and emerging technologies, Finance Business Partners position the company to leverage market prospects effectively while mitigating risks for a competitive edge in the marketplace.

Skills Required for a Finance Business Partner

• A) Technical Skills:

1. Financial Analysis: Proficiency in finances, creating forecasts and examining differences.
2. Data Handling: Ability to gather, analyse and interpret information using advanced tools.
3. Project Management: Capability to supervise projects and ensure they are completed on time and within budget.
4. Technological Proficiency: Familiarity with data analysis tools, ERP systems and Business Intelligence software.

• B) Interpersonal Skills:

1. Leadership: Motivating teams to work together towards objectives promoting a collaborative and creative work environment.
2. Relationship Building: Establishing and nurturing connections with both internal and external partners to leverage networks for mutual gains.
3. Adaptability: Being flexible in response to changing business landscapes by embracing technologies and approaches.
4. Communication: Clearly express ideas, tailor messages for diverse audiences, and actively listen to stakeholder input.

In Summary

The transformation of FP&A professionals into modern Finance Business Partners highlights the dynamic nature of finance roles. Finance professionals can successfully navigate this transition by embracing innovations, expanding skill sets and cultivating relationships. Contemporary Finance Business Partners drive organisational success through informed decision-making, performance improvement, and engaging stakeholders.

They can bring concrete value to the business, nurture a collaborative and innovative culture and propel sustainable growth in an ever-evolving business landscape by utilising their analytical skills, effective communication abilities and broad cross-functional understanding.

References:

COKINS, Gary. "Transitioning from Controller to Business Partner; A Voyage." Strategic Finance, vol. 97, no. 11, pp. 21-29. 2016.