Business partnering 2013 and Beyond. Sample slides from a recent presentation at CPA Newcastle Convention 2013. The presentation highlights the changing landscape of management reporting and business performance management with its implications on the role of the finance function. In particular the concept of business partnering and strategic management.

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Chris CattoBusiness Partnering 2013 and
Beyond

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Chris Catto
Agenda
• About
• Traditional Finance Teams
• Challenges in Business
Partnering
• Success in Global Economic
Landscape
• Changes in Techniques, Tools
and Environment
• Implications for Business
Partnering
• Critical Success Factors 2013
and Beyond

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Chris CattoAbout Chris Catto
Putney Breeze Advise on:
• Linking Business Performance measures
to strategy
• Performance Reporting Best Practice
• Streamlining Budgeting – Forecasting
Process
• Moving Beyond Budgeting
• Finance Professional Recruitment
- Author of Premiership Business
The Premiership Business Equation for
Business owners & Entrepreneurs
- Planning & Performance Management
in Leading Global Corporations
- Director of Putney Breeze Advisors

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Chris CattoTraditional Finance Teams
Management Control Systems

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Chris Catto
• Leveraging information Technology –
connecting content & data with
business purpose
• Optimising incentives collaborating
principles of managers
• Identifying Product Profitability in
new Economy
APMAA Conference 2012
Challenges in Business Partnering

6. Moving from Command & Control to
Enterprise Navigator
• Taylor
• Hoshin,
• Kaizen
• McGregor
Principles Based Management
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Chris Catto
Change in Technique

7. From Dot Matrix to iPad
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Change in Tools

8. Met by Evolution of Financial Management?
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Chris CattoChange in Competitive Environment

9. Source: World Bank
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Chris Catto
-
10.00
20.00
30.00
40.00
50.00
60.00
1991 1995 1999 2003 2007 2011
United States
China
Japan
Germany
France
Brazil
United Kingdom
Italy
Russian Federation
India
Canada
Spain
% Export
Exports as Percentage of GDP
Of the 12 Largest countries by GDP 1991-2011
In terms of exports as percentage of GDP Germany at 50.21% has out performed
its closest rivals. 54% higher than its closest rival (Australia 21.29%)
Change in Global Economic Landscape
Top 6 in Growth in GDP
of top 30 by GDP 1991-
2011
China 1829%
Brazil 508%
India 572%
Indonesia 561%
Turkey 413%
Poland 515%
Australia 323%

10. Chris CattoCentral Tenant of German Success
Story - Mittelstand Philosophy
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Central Strategy - Dominate Global Market Niche
1) Stay Close to Customers
2) World Class in Operational Process
3) Best at “Shop Floor Management”
Prof Bernd Venohr – How Germany’s mid-sized companies get and stay ahead in the global economy

11. • Facilitator of Strategic Goals
• Contextual Reporting
• Delivering actionable information
• Decision Support
• Navigator of Strategic outcomes
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Chris CattoImplications for Business Partnering
In Reference To:
• Customer Satisfaction
• Operational Process
• Agile Decision Making

12. Finance – Business Partnering
Value Chain
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Chris CattoChallenges for Business Partnering
 Customer Satisfaction
 Operational Process
 Agile Decision Making
Product
Development
Marketing &
Sales
Production
Service
Delivery
ERP/ICT
Org Structure & Human Capital
 Leverage Technology
 Optimise Incentives
 Profitability in New
Economy
Strategic Delivery

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Change in Technique: Southwest Airlines
►Key success factors
►Values Based Culture
►Empowerment of staff
►Decision Authority to act in best
interest of customer needs
►Self Management Philosophy
►Emphasis on Customer
►Emphasis on Company community
and Teamwork
Milliman, Ferguson, Trickett, Condemi, Spirit and Community at Southwest
Airlines

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Southwest Airlines - Performance
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
Operational
Revenue
Net Income
► DOT’s top ranking for Customer Satisfaction
► 39 consecutive years of Profitability
Source: ATW
Source:
southwestonereport.com

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Chris CattoChange in Tools - Dell
► Key Success factors
Rapid Response System
 Real time communications
 Precise adaptation of content for decision makers
 Customer Focus – Sales & after Sales Service
 Synchronise transparent Value chain
information, from supplier, employee to customer
 Leverage Systems for continuous improvement
Cushman & King, Best Practice at the Dell Computer Corporation: Benchmarking
a High-Speed Management Communication System

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Chris CattoEvolution in Financial Management
► Moving Beyond Budgeting
Branch Business Ownership - Customer Focus
Operational Action Planning
Centralised Rolling Cash Flow forecasting
KPI League Tables – Performance Management through
Peer Group
Profit sharing based on Relative Measures of Success
Lindsay & Libby, Accomplishing Radical decentralization through “Beyond Budgeting”

17. Source: Full Year Results Presentation 2012
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Chris CattoEvolution in Financial Management

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Chris Catto
What is your mind set? – Does your Finance
team act as a business driver?
Is the importance of business partnering on
par with statutory compliance?
Does your team trade on smoke and mirrors?
Ask yourself
► What is your business with the business?
► How do you facilitate strategic outcomes?
► What does your team bring to the table?
Business
Partnering
2013 &
Beyond
Change
in Tools
Change in
Technique
Change in
Economic
Landscape

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Chris Catto
Shareholders, Venture
Partners, Regulatory
Authorities, Stakeholders
CEO, COO, EGM Sales &
Marketing, CIO, Business
Unit Managers, Product
Development
Financial
Reporting
Management
Reporting
Regulatory Criteria, AASB,
GAAP, SOX, ASIC, ATO,
APRA
Business
Drivers, Operational
Conditions, Relationship
Management
Listening, Empathetic, Infl
uencing, Negotiating
Interpretation, Applicati
on, Implication
Requirements
Skills
Team
Client
How Are You Positioned for Business Partnering?

20. What need do you satisfy?
•Forecasts
•Assurance
•Reliability
•Insight
What service do you provide?
•External - Delivering financial information – Historic and Projections
•Internal – Delivering advice and guidance to achieve client objectives & goals
What is your value proposition?
Quality – Accuracy – Integrity - Timely – Insightful - Actionable
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Chris CattoWhere is the Value of your Business Service?

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Chris CattoBusiness Partnering 2013 & Beyond
Critical Success Factors
Optimise Incentives
Value Based Management
Empowerment
Autonomous
Authority to act
Culture
Company Community
Leverage Technology
Stay Close to Customers –
Customer intelligence
Customer Responsiveness
Decision support -
Operational Process
Identify Trends
Profitability in New
Economy
Agile Decision Making
Business Ownership
Relative measures of
Success
Peer Competition
Operational Action Plan not
Budget
Underpinned by Executive Management Sponsorship
Customer Satisfaction as Primary Focus

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Chris Catto
Thank You!
christopher.catto@putneybreeze.com.au