Business partnering 2013 and Beyond


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Business partnering 2013 and Beyond. Sample slides from a recent presentation at CPA Newcastle Convention 2013. The presentation highlights the changing landscape of management reporting and business performance management with its implications on the role of the finance function. In particular the concept of business partnering and strategic management.

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Business partnering 2013 and Beyond

  1. 1. Chris CattoBusiness Partnering 2013 and Beyond
  2. 2. Chris Catto Agenda • About • Traditional Finance Teams • Challenges in Business Partnering • Success in Global Economic Landscape • Changes in Techniques, Tools and Environment • Implications for Business Partnering • Critical Success Factors 2013 and Beyond
  3. 3. Chris CattoAbout Chris Catto Putney Breeze Advise on: • Linking Business Performance measures to strategy • Performance Reporting Best Practice • Streamlining Budgeting – Forecasting Process • Moving Beyond Budgeting • Finance Professional Recruitment - Author of Premiership Business The Premiership Business Equation for Business owners & Entrepreneurs - Planning & Performance Management in Leading Global Corporations - Director of Putney Breeze Advisors
  4. 4. Chris CattoTraditional Finance Teams Management Control Systems
  5. 5. Chris Catto • Leveraging information Technology – connecting content & data with business purpose • Optimising incentives collaborating principles of managers • Identifying Product Profitability in new Economy APMAA Conference 2012 Challenges in Business Partnering
  6. 6. Moving from Command & Control to Enterprise Navigator • Taylor • Hoshin, • Kaizen • McGregor Principles Based Management Chris Catto Change in Technique
  7. 7. From Dot Matrix to iPad Chris Catto Change in Tools
  8. 8. Met by Evolution of Financial Management? Chris CattoChange in Competitive Environment
  9. 9. Source: World Bank Chris Catto - 10.00 20.00 30.00 40.00 50.00 60.00 1991 1995 1999 2003 2007 2011 United States China Japan Germany France Brazil United Kingdom Italy Russian Federation India Canada Spain % Export Exports as Percentage of GDP Of the 12 Largest countries by GDP 1991-2011 In terms of exports as percentage of GDP Germany at 50.21% has out performed its closest rivals. 54% higher than its closest rival (Australia 21.29%) Change in Global Economic Landscape Top 6 in Growth in GDP of top 30 by GDP 1991- 2011 China 1829% Brazil 508% India 572% Indonesia 561% Turkey 413% Poland 515% Australia 323%
  10. 10. Chris CattoCentral Tenant of German Success Story - Mittelstand Philosophy Central Strategy - Dominate Global Market Niche 1) Stay Close to Customers 2) World Class in Operational Process 3) Best at “Shop Floor Management” Prof Bernd Venohr – How Germany’s mid-sized companies get and stay ahead in the global economy
  11. 11. • Facilitator of Strategic Goals • Contextual Reporting • Delivering actionable information • Decision Support • Navigator of Strategic outcomes Chris CattoImplications for Business Partnering In Reference To: • Customer Satisfaction • Operational Process • Agile Decision Making
  12. 12. Finance – Business Partnering Value Chain Chris CattoChallenges for Business Partnering  Customer Satisfaction  Operational Process  Agile Decision Making Product Development Marketing & Sales Production Service Delivery ERP/ICT Org Structure & Human Capital  Leverage Technology  Optimise Incentives  Profitability in New Economy Strategic Delivery
  13. 13. Chris Catto Change in Technique: Southwest Airlines ►Key success factors ►Values Based Culture ►Empowerment of staff ►Decision Authority to act in best interest of customer needs ►Self Management Philosophy ►Emphasis on Customer ►Emphasis on Company community and Teamwork Milliman, Ferguson, Trickett, Condemi, Spirit and Community at Southwest Airlines
  14. 14. Chris Catto Southwest Airlines - Performance 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 Operational Revenue Net Income ► DOT’s top ranking for Customer Satisfaction ► 39 consecutive years of Profitability Source: ATW Source:
  15. 15. Chris CattoChange in Tools - Dell ► Key Success factors Rapid Response System  Real time communications  Precise adaptation of content for decision makers  Customer Focus – Sales & after Sales Service  Synchronise transparent Value chain information, from supplier, employee to customer  Leverage Systems for continuous improvement Cushman & King, Best Practice at the Dell Computer Corporation: Benchmarking a High-Speed Management Communication System
  16. 16. Chris CattoEvolution in Financial Management ► Moving Beyond Budgeting Branch Business Ownership - Customer Focus Operational Action Planning Centralised Rolling Cash Flow forecasting KPI League Tables – Performance Management through Peer Group Profit sharing based on Relative Measures of Success Lindsay & Libby, Accomplishing Radical decentralization through “Beyond Budgeting”
  17. 17. Source: Full Year Results Presentation 2012 Chris CattoEvolution in Financial Management
  18. 18. Chris Catto What is your mind set? – Does your Finance team act as a business driver? Is the importance of business partnering on par with statutory compliance? Does your team trade on smoke and mirrors? Ask yourself ► What is your business with the business? ► How do you facilitate strategic outcomes? ► What does your team bring to the table? Business Partnering 2013 & Beyond Change in Tools Change in Technique Change in Economic Landscape
  19. 19. Chris Catto Shareholders, Venture Partners, Regulatory Authorities, Stakeholders CEO, COO, EGM Sales & Marketing, CIO, Business Unit Managers, Product Development Financial Reporting Management Reporting Regulatory Criteria, AASB, GAAP, SOX, ASIC, ATO, APRA Business Drivers, Operational Conditions, Relationship Management Listening, Empathetic, Infl uencing, Negotiating Interpretation, Applicati on, Implication Requirements Skills Team Client How Are You Positioned for Business Partnering?
  20. 20. What need do you satisfy? •Forecasts •Assurance •Reliability •Insight What service do you provide? •External - Delivering financial information – Historic and Projections •Internal – Delivering advice and guidance to achieve client objectives & goals What is your value proposition? Quality – Accuracy – Integrity - Timely – Insightful - Actionable Chris CattoWhere is the Value of your Business Service?
  21. 21. Chris CattoBusiness Partnering 2013 & Beyond Critical Success Factors Optimise Incentives Value Based Management Empowerment Autonomous Authority to act Culture Company Community Leverage Technology Stay Close to Customers – Customer intelligence Customer Responsiveness Decision support - Operational Process Identify Trends Profitability in New Economy Agile Decision Making Business Ownership Relative measures of Success Peer Competition Operational Action Plan not Budget Underpinned by Executive Management Sponsorship Customer Satisfaction as Primary Focus
  22. 22. Chris Catto Thank You!