Last updated on Mar 8, 2024

How do you balance the roles and responsibilities of finance business partnering and corporate FP&A?

Finance business partners (FBPs) are professionals who support decision-making and strategy execution by providing financial insights and analysis to business units or functions. Corporate financial planning and analysis (FP&A) is the process of consolidating, reporting, and forecasting the financial performance and position of the entire organization. How do you balance the roles and responsibilities of finance business partnering and corporate FP&A? In this article, we will explore some tips and best practices to measure and improve the value of FBPs in the context of corporate FP&A.

1 Define the scope and objectives of FBPs

The first step to measure and improve the value of FBPs is to clearly define the scope and objectives of their role. What are the specific business units or functions that they support? What are the key questions or challenges that they help to address? What are the expected outcomes or benefits of their involvement? By defining the scope and objectives of FBPs, you can align their activities and deliverables with the strategic priorities and needs of the business.

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2 Establish the key performance indicators (KPIs) of FBPs

The next step is to establish the key performance indicators (KPIs) of FBPs. These metrics are measurable and quantifiable, reflecting the performance and impact of FBPs. Examples include the accuracy and timeliness of financial analysis and reporting, the satisfaction of business stakeholders, and the contribution to revenue growth, cost reduction, or profitability improvement. Additionally, KPIs can track the influence on strategic decisions and actions. With KPIs in place, you can evaluate progress and results, as well as pinpoint areas for improvement or recognition.

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3 Align the processes and systems of FBPs and corporate FP&A

The third step is to align the processes and systems of FBPs and corporate FP&A. Processes are the methods and procedures that FBPs and corporate FP&A use to perform their tasks and communicate with each other. Systems are the tools and platforms that FBPs and corporate FP&A use to access, analyze, and share data and information. By aligning the processes and systems of FBPs and corporate FP&A, you can ensure consistency, efficiency, and quality of financial analysis and reporting across the organization.

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SeongJin Kim

Head of Business Management Part, Samsung Foundry | Excelling in leading financial optimization and supporting growth strategies
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It is nonsensical for anyone to insist that corporate FP&A can operate independently from finance business partners (FBPs). While you may not need to know every detail about every individual tree in a forest (that is, every small department you work with), you must have a deep understanding of the forest's features, characteristics, and ecology (that is, the industry). Without this knowledge, you cannot effectively perform your FP&A duties. This is why many people value hands-on experience. I understand that many directors or executive-level managers may claim they can make informed decisions using their 'animal spirits,' but to do so, they must have relevant industry experience.

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4 Foster the collaboration and communication of FBPs and corporate FP&A

The fourth step is to foster the collaboration and communication of FBPs and corporate FP&A. Collaboration is the act of working together to achieve a common goal or solve a problem. Communication is the exchange of information, ideas, and feedback between FBPs and corporate FP&A. By fostering the collaboration and communication of FBPs and corporate FP&A, you can leverage their complementary skills and perspectives, enhance their mutual understanding and trust, and create a culture of learning and innovation.

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5 Develop the skills and competencies of FBPs

The fifth step is to develop the skills and competencies of FBPs. These include financial modeling and analysis, business acumen and industry knowledge, communication and presentation, influence and persuasion, problem-solving and critical thinking, as well as adaptability and agility. By honing these abilities, you can boost the confidence and credibility of FBPs, while also preparing them for future challenges and opportunities.

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6 Celebrate the achievements and impact of FBPs

The sixth step is to celebrate the achievements and impact of FBPs. Achievements are the outcomes or results that FBPs deliver or contribute to. Impact is the value or difference that FBPs make to the business or organization. By celebrating the achievements and impact of FBPs, you can acknowledge their efforts and accomplishments, as well as motivate and inspire them to continue to grow and excel.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How do you balance the roles and responsibilities of finance business partnering and corporate FP&A?

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1 Define the scope and objectives of FBPs

2 Establish the key performance indicators (KPIs) of FBPs

3 Align the processes and systems of FBPs and corporate FP&A

4 Foster the collaboration and communication of FBPs and corporate FP&A

5 Develop the skills and competencies of FBPs

6 Celebrate the achievements and impact of FBPs

7 Here’s what else to consider

Corporate Finance

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