1. A
Speaker: Irelan Tam, DBA,FCMA,CGMA
Date: Nov 5th, 2014
Finance Transformation
The Role of Finance becomes a Value-Adding Business
Partner
1©CIMA

2. Transforming the role of finance into a
strategic business partner
• The role of finance from “Steward and
Controller” towards “Business Partner”
• Dual focus on driving costing efficiency towards
supporting decision making and value creation
• Embracing broad ranges of ‘business
competency’ in business planning and analytics
towards long term business sustainability
• Implementing a journey to Value Creation
• Explore how business analytics driving growth
strategies and profitability
• How about Business Partnering in SME?

3. “THE SHIFT FROM COST EFFICIENCIES TO
VALUE CREATION DOES DEMAND A
BROADENING OF SKILLS FOR FINANCE
PEOPLE…
DOMINIC P MOORHEAD, PRESIDENT EUROPEAN OPERATIONS, CARIS LIFE
SCIENCES 2011
The role of Finance evolves from focusing on cost and process efficiencies and
the catalyst in improving business performances to becoming the business
partners to create further value.
©CIMA 3

4. ©CIMA 4
Finance Transformation
-The Changing Role of Finance
CIMA(2007) Improving decision making in organizations – the opportunity to transform finance

5. Finance Transformation
-Drivers of Change
• Environmental Changes
• Technology Changes
• New Regulations
• Increased Competition
• Social Pressure
5©CIMA

6. 50% Business Analytics and 20%
Decision Support
20% Management Reporting 10%
20% Transaction Accounting 50%
10% Management Control 20%
IBM 2010 CFO study
*Best Benchmark SME Study
CIMA2011 Finance Transformation
SME study

7. What are the Challenges for
Business Partnering?
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8. Challenges for Business Partners
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We want our finance staff
not just understand the
numbers, but also know
what it takes to grow and
manage the business.
Dan Crunb,
CFO, Kansas City Chiefs
We need people who can
strategically influence the business
segments they support. They need
honed communication skills so they
can provide insights in a concise
and impactful manner to non-
finance people…..
Gary Rourke,
VP Finance, AstraZeneca
Finance professionals are often
viewed as historians…. but we
are working towards a more
value added approach: towards
a trust-based relationship
getting magnified and
strengthened as we move up
the business cycle….
Anne Lloyd,
Executive VP, CFO and Treasure
Martin Marietta Materials

9. ©CIMA 9
Addressing the Skills Gaps
CIMA(2009) Improving decision making in organizations – the opportunity to reinvent finance business partners,

10. Finance Transformation towards
Value Creation
• Understand the motive for change
in business organization
• Dual focus – from efficiency
initiatives to performance
management and business analytics
to support decision making for
planning and growth strategies
• Pursue finance transformation
towards value creation on driving
growth and profitability
10©CIMA

11. How Business Partnering Support Business
11©CIMA
CGMA(2012), From Ledgers to Leadership- a journey through the finance function

12. Journey to Value Creation
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• Automate ,standardize and streamline processes
• Analyze information in identifying risks and
opportunities
• Use fact-based data to support decisions
• Emphasize the theme of getting positive outcomes
towards achieving company objectives
MAXIMISED
Efficiency of
business
operation
1
DRIVE
Analytics
IMPROVE
Decision
Making
ENABLE
Value
Creation
2 3 4

13. Business Analytics
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14. Focus on Analytics
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• Metric and Dashboard
reporting
• Historical Trending
• Rolling Average Forecasting
• Scenario Planning
• Predictive modelling

15. Focus on driving Growth Strategies and Profitability
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Supply Chain metrics
• LIFR, OFR, discounts
% and Price %
Promotion effectiveness
Channel effectiveness
• Key growth platforms
• Products and customers
profitability
• Market growth /Market Shares

16. How about Business Partnering in SMEs?
©CIMA 16

17. 50% Business Analytics and 20%
Decision Support
20% Management Reporting 10%
20% Transaction Accounting 50%
10% Management Control 20%
IBM 2010 CFO study
*Best Benchmark SME Study
CIMA2011 Finance Transformation
SME study

18. How well is the SME Finance function
supporting decision making and infusing
greater value for business?
18©CIMA

19. What are the challenges?
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20. What are key priorities for SME?
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21. Business Partnering in SME
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CGMA(2012) , The Inside Track; Partnering for value

22. Role of Management Accountants
22©CIMA
CIMA(2014) Global Management Accounting Principles Consultation Paper

23. Value Creation
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Three Major Principles:
 Data Analytics to create
tactical plan for execution
 Scenario Analysis in
identifying risks and values of
opportunities
 Engagement with
stakeholders to drive better
decisions about strategy
execution at all levels
CIMA(2014) Global Management Accounting Principles Consultation Paper

24. “HOWEVER, BUSINESS PARTNERING ROLES PUT
THESE VALUES UNDER STRESS, WHICH IS WHY
THESE ROLES REQUIRE MATURITY, STRENGTH
OF CHARACTER AND SKILL IN DEALING WITH
BUSINESS PARTNERS.
DOMINIC P MOORHEAD, PRESIDENT EUROPEAN OPERATIONS, CARIS LIFE
SCIENCES 2011
The role of Finance evolves from focusing on cost and process efficiencies and
the catalyst in improving business performances to becoming the business
partners to create further value.
©CIMA 24
Dominic P Moorhead, President European Operations, Caris Life Sciences – CIMA’s ‘From ledgers to leadership’ report

25. As a Management Accountant,
we need to understand the business
drivers, strive further towards the
development and implementation of the
partnering role with increased focus on
management efficiency and
value creation.
25©CIMA

26. THANK YOU
©CIMA 26