This document discusses ways for finance and HR departments to work more collaboratively. It provides examples of how finance can review HR activities like payroll and hiring to ensure proper controls. It also discusses how HR can support finance in areas like engaging with workers' representatives and developing talent management strategies. The document advocates for finance and HR to work together on initiatives like defining competency models and raising the financial literacy of non-financial managers.

1. Bridging Finance and HR
Anne Frisch
October 2013

2. Living on 2 different planets ?

4. Getting the most from
the employees

5. From the basics of having the right controls
on your labour costs ….
Blackbox
Standard personnel costs
Finance reviews everything
- Monthly payroll
- All hires (including replacement of trainees)
- Temps ….

6. … to identifying key drivers of productivity …

7. …and maximizing engagement.
2012 Gallup meta-analysis on 263 research studies across 192 organizations in 49 industries and 34 countries.

8. Engaging with workers´representatives

11. HR needs your support to
• Present business cases to the unions
• Set up a meaningful dashboard
• Develop the financial culture of
workers´representatives
…..

12. Joe Kaeser picked as new CEO of Siemens
Siemens' supervisory board announced
Wednesday that it had unanimously
appointed its longstanding finance chief,
Joe Kaeser, as the technology company's
new chief executive as of August 1.
The Supervisory Board of Siemens AG has
20 members. As stipulated by the German
Codetermination Act, half of the members
represent Company shareholders, and half
represent Company employees.

13. How to grow talent in
your organization ?

14. Hackett study 2012 : business services organizations are dissatisfied with the
level of talent management support being provided by HR

15. Cooperation on Talent Management
Hackett Group Chief Research Officer Michel Janssen
"Today's changing business environment requires that business services
organizations retool and radically change their mix of staff to improve
their ability to directly impact on business performance. Talent
management is key, and business services can't accomplish this without
strong and effective support from HR. Both parties must redouble their
efforts to improve their working relationship.
Business services managers must take the lead in specifying their needs,
and taking accountability for results for talent management.
HR must provide comprehensive process and administrative support,
methods and tools, training and guidance to function leaders."

16. Step 1 : go to your HR department

18. Step 2 : build your own competency
model

19. Example of key competencies for achieving
excellence in Finance
1.
2.
3.
4.
5.
Accounting and financial reporting
Governance, internal controls, tax & legal compliance
Management information & performance analysis
Business Partnership & value creation
Cash Culture

20. Business Partnership, Risk Management & Value creation
Questioning, challenging and actively proposing solutions to mitigate risks and improve financial performance based on a
thorough understanding of management and operations needs and issues; Sharing & increasing financial know-how within the
organization
1
Able to support any Business
Plan process and/or
complex financial operations
(investment, offers…)
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Skilled in manipulating usual
financial tools (Excel modeling, NPV
or IRR notions…).
Able to get and communicate
accurate financial information to
operational managers.
Able to support managers in the
development of their forecasts
(consistency between financial
figures and underlying operational
assumptions).
Highlights on implications of any
inconsistencies between forecasts
and performance
Aware of risk analysis & risk
management tools, and able to link
risk to financial information
2
Proactively improves his/her
financial understanding and
insights into performance and
proposes business case
improvements. Gets risk
management at the heart of
financial improvement
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Challenges colleagues and other
partners to raise financial and risk
management know-how and skills:
raising questions, challenging,
advising and instructing (ability to
challenge managers on the
underlying assumptions of any BP)
Seeks input from
managers/partners to ensure that
financial objectives are achievable
and achieved.
Shares and clearly defines financial
performance needs, concerns,
problems and agreements on
actions
Develops and recommends financial
solutions according to
management’s needs, problems
and issues and strategic objectives.
Proposes business case (financial
and operational) improvements (for
investments, offers…).
3
Collaborates with and coaches all
stakeholders to develop financial
& risk management strategies.
Clearly communicates the plan
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Coaches’ managers on revenue,
forecast, expenditure, cash
management practices and other
financial issues, and able to seek
improvement opportunities.
Contributes with accountability to
the planning, management and
implementation of the entity
strategic plans => Puts value
creation at the heart of financial and
operational decisions
(investment…), ensures fact based
decisions and value maximizing
options.
Develops efficient strategies for
obtaining necessary financial
resources and participates in
negotiations with fund providers
(banks, equity providers,
subsidies…).
Is able to support managers in
achieving any operation with an
impact on balance sheet
Communicates complex financial
information clearly, credibly with
varied audiences.
4
Takes a leadership role in valuemaximizing approach to business
issues and constructively
challenges management’s
decisions
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Provides strategic financial
management advice, direction to all
levels of management and financial
information users.
Is proactive to manage/advise on
future outcomes (operational or
financial risks, options/scenario
planning). Recommends and
implements risk management
strategies.
Constructively challenges
management’s decisions, strategic
initiatives, transactions, and probes
for explanations of past and
upcoming results.
Able to supervise advanced
strategic negotiations and leads
agreements, including investment,
offers, acquisitions, divestments,
partnerships etc.
Gets buy-in from all stakeholders at
all levels of any organization.

21. Cash Culture
Ensuring cash collection and managing credit risk. Developing financing options and actively proposing solutions to improve
working capital and long term cash flow. Providing assurance regarding the reliability of the cash flow forecast at project and
company level
1
Understands credit and collection
procedures and performs routine
tasks
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Monitors daily cash position.
Collects overdues.
Clears aged balance.
Prepares lists of forecasted
payments.
Ensures clear invoicing process,
payment terms, payment methods
and export documentation.
Reviews advance payment and
warranty retention.
Manages relationship with customer
to guarantee that payment process
is on time.
Front line contact for cash pooling.
Minimizes external cash at each
end of period.
2
Improves insights into cash
performance and collaborates with
other departments to elaborate
specific cash strategies
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Analyzes monthly cash flow,
provides explanations on variances.
Identifies drivers in working capital
levels, benchmarks with similar
businesses and proposes action
plans.
Ensures credit policy and
(customers & suppliers) credit limits
are properly applied.
Reviews exceptions to “normal”
payment terms and conditions.
Makes sure that collection tasks are
assigned between the various
departments (commercial,
accounting etc).
Controls bad debt write-offs and
ensures penalties for late payments
are invoiced.
Builds cash flow forecast and alerts
on any potential gaps. Includes also
in cash flow forecast all non
recurring items (tax, Capex,
pension, dismantling).
Interacts with Treasury to put in
place and renew inter company
loans and cash facilities.
3
Alerts, negotiates, decides, and
takes proactive roles in cash
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Proactively manages cash
movements to deliver commitment.
Identifies Forex / commodity risks
and monitors hedging with
Treasury.
Reviews off-balance sheet
commitments (performance bonds,
all types of bonds & guarantees …)
and understands their potential cash
impact.
Escalates overdues to the highest
level for collection programs.
Detects risky customers, challenges
sales teams on cash impact of
contracts, and decides on delivery
hold.
Detects risky suppliers & subcontractors, challenges purchasing
teams on cash impact of contracts,
and alerts management.
Supports commercial teams in
negotiating advance payments or
specific payment terms.
Identifies security flaws in payment
means and processes and takes
corrective actions.
Act as a real business partner with
Treasury Department (DOFT) to
design & implement.
4
Thinks long term and out of the box
to maximize cash flow
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Is accountable for the delivery of the
cash flow forecast.
Supports complex projects
(investments and integrated offers)
with tailor made financing solutions.
Constructively challenges
management decisions on Capex
and financial investments.
Ensures adequate payback of new
investments.
Defines short & medium term capital
and cash needs and identifies
financing solutions (equity,
internal/external financing…).
Builds strategic relationships with
financing partners to ensure easy
access to debt and credit facilities.
Raises awareness of the
organization on Working Capital,
and rolls out best practices.

22. Step 3 : Raise the financial culture of
non financial managers

23. 4 ways to raise the financial culture of your colleagues
1. Spend quality time with them
2. Include simple (and fun) financial quizzes in your
management meetings
3. Encourage them to register to a finance for non
financial managers course
4. Develop an in house program

24. Thank you !