We all know that the finance function has to add value these days and to do that we need to partner with our counterparts in sales,
The problem that my organization is struggling with and I tend to think many organizations are facing similar issues is that we cant break through the barrier between the functions. Therefore I am in search of stories showing how a finance function became a great business partner.
To get the discussion going here are some of my considerations which I am trying to implement in my organization. First of all figure out where the finance function fits in with the operating cycle of your organization.
I would look at the cycle as: Plan-Do-Study-Act. Being a support function the finance function will usually never become the do'er or the actor. We need to influence these phases however by involving ourselves in the planning and studying phase.
Planning:
Get the business case right
- ensure there is a uniform way to do project evaluations
- challenge assumptions and include contingencies
- make sure revenue is not overestimated and costs underestimated
- run scenario analysis
Studying:
Ensure high data quality
- too often finance is ridiculed for not having the right data
- wrong conclusions are drawn from wrong data
- get the systems to work with you instead of against you
Performance
- make sure the right KPIs are measured (wrong conclusions can also be drawn from correct data)
- follow-up on the business case not just your budget or forecast
- ensure learnings are documented in a structured way
Consistency
- deliver frequent and consistent information to your counterparts
- dont start new initiatives unless you expect to also carry through on them 6 months from now
Communication
- dont start communicating until you have tested your conclusions
- too often finance is dismissed because they dont know how to communicate the numbers
- know that numbers need to be presented differently to finance vs non-finance
Of course many other things can be important but I welcome the discussion!
