ACCA, Ceylon Tobacco hold round table conference on finance partnering

Participants giving their views during the discussion  

The ability of finance to wprovide the insight needed for better decision-making is rapidly becoming a requirement today. Finance partnering therefore is increasingly viewed as the most effective way for in house finance teams to add value to a business. 

In order to further explore the benefits and methodologies of finance partnering, ACCA joined hands with Ceylon Tobacco Company PLC (CTC) to hold an interesting round table conference on this topic. The discussion was participated by many leading conglomerates that included Unilever, Nestle, World Bank, Ernst & Young, Hemas, and Holcim.   

CTC Finance Director Stephan Matthiesen commenced the discussion by stating, “Today a growing chorus is calling for a significant new shift in the finance function and the need for CFOs to evolve their roles from being purely number-focused into a true commercial partnership with the business. By participating in strategic planning, providing meaningful insights on risks and returns, managing growth plans and improving commercial awareness across the organisation, the finance function enables better decision making and consequently is helping maximising shareholder returns. With the right people in the right roles, provided with continually improving information and underpinned by adaptable and effective end-to-end processes, finance can achieve its partnering role. Our discussion is based on exploring this opportunity.”

Insights provided during the discussion included how successful CFOs engineer this shift and put much greater focus on the people agenda by taking a customer-centric approach, thereby helping to drive real value for the business and boost the bottom line. The discussion touched on developing partnering knowledge, skills and attitudes and how decentralised approaches to finance better enable business support. The general idea was of engaging more directly across the business and building a more ‘two-way’ relationship. In essence it required finance to not only provide analysis and insight, but to be recognised as a valued partner and to be a catalyst for growth.

It was noted that understanding partnering is only the first step in the journey. Achieving subsequent milestones is more complex. Consequently, starting out with a clear roadmap is crucial. Building a partnering framework requires a change in mindset and approach as well as a new way of thinking and doing things. It should be characterised by a focus on the internal customer, building the required capacity, capability and credibility and in redefining information delivery to focus on business needs.

Further discussed was the need to develop a formalised structure and discipline that will help the relationship function more effectively over time. It was assessed that finance needed to have the right capability to succeed in their roles. Whilst they need to have the necessary technical finance skills, what was most required to make the role successful were the ‘softer leadership skills’, such as influencing, negotiating and listening. These capabilities were critical for the finance team to build effective working relationships and to become part of the business team. Therefore training and development in these areas were crucial. 

Hence, finance partnership was not a top-down approach. It had to happen at all levels and was a leadership capability that came with experience, strong communication and an entrepreneurial mindset.

Conclusion arrived at through the discussion was that finance partnership is not just a fancy term but a tool to get the job done and to enable better decision making. It’s about finance being involved throughout the process, understanding the drivers and motivations of other functions and building trust. It’s about raising financial awareness across the organisation, talking finance in a non-finance language, providing alternative ideas and providing context of decisions and its impact on the overall strategy.

The participants found the round table conference beneficial and ACCA is planning to organise further events in the future.