Finance business partnering

A finance business partner (FBP) is a finance professional who uses data to influence the decision-making processes of a company’s chief financial officer (CFO) and other business unit leaders. These are qualified professionals who understand the key drivers and goals of the business and act as stewards to help the business by increasing its bottom line.

Some of the key competencies for FBPs include:

• Commercial and organizational understanding. This is one of the fundamental principles of business partnering. Understanding industry developments and the competition, as well as getting to know the unit teams and their projects, is paramount to chipping away at any resistance to the process.
• Build relationships. In addition to possessing acumen, the ability to influence decisions is directly related to the partner’s ability to build relationships. Getting to know people and finding out what’s important to them gives insight into what they view as important. It also builds trust and leads to greater influence.
• Great negotiation skills. Nobody gets everything they want. Through the relationships built, the FBP has a good idea of what is and isn’t feasible. They go into the exercise of negotiation trying to bring about the best possible outcome.
• Global mindset and adaptability. FBPs are always educating themselves on the latest and best practices. They embrace new technology and ideas that yield positive change in the organization.
• Strategic thinking. While data answers topical questions, information provides deeper insight into why something happened. The combination of what and why brings numbers to life and develops strategic thinking.

Understanding the HR business partnering model

Another partnering model is HR business partnering (HRBP), which is about efficiently identifying and grooming certain employees for advancement. An HRBP is an experienced industry professional who can analyze employee data and assess their strengths and weaknesses in a way that sets them up for more and better development. More developed employees create a better organization.

The key principles of business partnership in the HR space include:

• Industry knowledge. An HRBP understands current and future challenges employees face because they have more knowledge and expertise to communicate with and coach leaders.
• Talent management. These professionals help organizations with strategic planning, which includes recruiting and retaining talent with proper training, so they can build a more competitive company.
• KPI tracking. They also use data and analysis to track key performance indicators (KPI) to understand all the critical business, local and cultural insights that influence decision-making.

HRBPs work with senior managers as an extension of their team to support organizational goals. They facilitate the integration of beneficial software that can streamline workflow and relieve leadership stress.

How to implement business partnering

Any model you use requires tailoring. There’s no out-of-the-box standard implementation because it depends on the organization’s needs and budget. One way organizations choose to implement partnering is by using standalone business partners. They are attached to certain units and are there to ensure the value proposition is relevant and effective. In HR, there’s the three-legged stool model, which is split across:

• Shared services. This is usually the first line of support. They handle routines, such as payroll and basic employee relations.
• Centers of excellence. This area of expertise is all about expert knowledge and innovation. They deal with more complex routines, such as talent management and employee engagement.
• Strategic business partners. This tier is composed of experienced professionals who work closely with senior management to implement both the business and people strategies. They are embedded in the business units for maximum benefit.

Creating an effective business partnering relationship

Business partners are there to effect change and focus the organization. For the partnering relationship to work, the consultant has to deeply understand the company’s business model, including how it creates value. They have to support businesses by really taking advantage of whatever data and insight they glean.

With genuine curiosity, business partners can ask the right questions and find hidden opportunities. They also have to be confident enough to challenge the business and its leaders. Being able to speak against the status quo when necessary and with confidence can trigger the change management needs.

Business Partnering FAQs

What is strategic road-mapping?

Strategic road-mapping means coming up with an effective, detailed plan that considers the likely outcomes, plots ways to achieve the milestones expected and builds credibility and measures the impact of the plans, adjusting if needed. This gives organizations a clearly defined plan of action for their success.

What are some risks to partnering?

There are several opportunity costs when it comes to partnering, including:

• Potential conflicts of interest. The recommended or best course of action may go against the company’s interests.
• Resource drain. The organization’s commitment to the partner takes a lot of the existing resources.
• Reputation damage. When partnerships go wrong, there can be damage to the reputation of the organization and the partner’s track record. The key is how to frame and navigate it.

What’s the difference between business partnering and business partnership?

Business partnering uses a qualified consultant who helps either one unit or the entire organization align itself with the company’s vision and goals. These professionals are either already with the company or are independent professionals within the industry. A business partnership is about two business entities coming together to create a joint venture. They create a legal entity under which they do business.