JPK

Gro

upBusiness Forecasting and Analytics Forum

September 19-20 • Chicago, IL

Finance as a Strategic Business Partner

September 19, 1:15pm

Javier Alarcon is a global finance executive with experience across differentgeographies in the consumer packaged food, financial services and governmentindustries. As a finance leader, he has built high performance organizations andpartnered to execute successful business turnarounds in several markets around

the world.

View presentation online at:https://jpkgroupsummits.com/attendee5

Javier Alarcon – Formerly from ConAgra Foods

Building strategic partnerships with key stakeholdersto become more effective leader

FINANCE AS A STRATEGIC BUSINESS PARTNER

Perspectives

University of Nebraska

US Department of State (Ecuador), 1992 – 1994

First Data, 1994 – 2001

ConAgra Foods, 2001 – 2016VP Finance – International

PrinciplesIntegrity and Trust (non negotiable) – be honest, transparent and respectfulBuild pride in what we doPartner to help grow our businessInnovate Bigger, Better, Fewer (learn to choose)Change is part of lifePersonal development and develop people

JAVIER ALARCON - BIOGLOBAL FINANCE EXECUTIVE

OBJECTIVES

• Building strategic partnerships with key stakeholders to become more effective leader

• Interpreting, explaining and driving performance within the organization

• Presenting a dynamic industry, competitor and economic context

• Supporting and influencing key operational and strategic decisions

• Advising on key business planning assumptions, trade-offs and opportunities

Finance as a Strategic Business Partner

THE ROLE OF TODAY’S CFO(1)

• CFOs increasingly contribute to organizational strategy

• The CFO remains an objective voice on financial performance but contributes to operational decision-making as well

• Fundamental skills in finance are still paramount

• The necessity of controlling cost, managing risk and maintaining liquidity were brought to the foreground by the financial crisis — and this necessity persists

• Communications skills are an imperative

(1) Source: E&Y 2011 study

CFOs are Strategists who help guide key business initiatives

WHAT IS BUSINESS PARTNERING

Business partnering is:

• Development of successful, long term, strategic relationships between customers and suppliers, based on achieving best practice and sustainable competitive advantage.[2]

• Financial business partnering' is used to describe finance executives working alongside various business departments including operations, human resources, sales and marketing, among others, providing financial information, tools, analysis and insight, which allows companies to make more informed decisions while driving business strategy.

(2) Source: Wikipedia

Build Relationships – Critical Thinking - Copiloting

CHARACTERISTICS OF GREAT BUSINESS PARTNERING (3)

• Finance professionals need to understand the business

• Understanding is built from ongoing conversation, observation, research and action

• Finance’s understanding will be a factor on demand for partnering

• Healthy tension is good

• Capabilities is dependent on people, structure, systems and processes

• Knowledge and skills

• Processes and procedures

• Integrity is a non-negotiable

(3) Source: Finance Business Partnering: A guide, ICAEW, Finance & Management Falculty

Partnering starts from the foundation

GrowthInitiatives

Resolve KeyBusiness

Issues

Impactful ActionBiased Analysis

Leverage Integrated Systems and Processes

Leverage Effective PlanningProcess

Build Organizational Capability

Consistent Predictability

Maintain Strong Control Culture

Build and Leverage Relationships

Add Economic

Value

Organize for Success

Build Credibility

THE PYRAMID…

BUILDING RELATIONSHIPS

WHY ARE EFFECTIVE RELATIONSHIPS SO CRITICAL

• Improved Teamwork

• Improved Morale and Engagement

• Increased Productivity

• Higher Employee Retention Rate

• Foundation -> Capabilities -> Value Added

• Building relationships is a journey

Without Solid Relationships there cannot be Great business partnerships

BUILDING STRATEGIC PARTNERSHIPS: TWO BRAINS THINK BETTER THAN ONE(4)

• Partnership Agreements

• Clear expectations is critical

• Think about your clients

• Mutually beneficial

• It’s okay to walk away

(4) Forbes, May 2013

Communication and empathy are critical in any relationship

CRITICAL THINKING

WHAT IS CRITICAL THINKING?

DEFINING CRITICAL THINKING

Skeptical

Open minded

Analytical

Decisive

Evaluative

Forceful

Cynical

Wishy-washy

Nitpicky

Stubborn

Judgmental

Opinionated

Critical thinking requires a high sense of self awareness

THE ESSENCE OF CRITICAL THINKING

Develop Conclusions Supported by

Facts

Imaginative – Sees Broader Possibilities

& Perspectives

Clear About the Issues

Consistently Inquisitive

Persistent in Seeking Results

Diligent in Seeking Relevant

Information

Open Minded and Flexible

Improving the quality of thinking by skillfully analyzing, assessing, and reconstructing it

CRITICAL THINKING FOR RESULTS

Items to consider

• Develop a framework – asking the right questions

• Clarify the proper scope of their thinking

• Prepare and execute a research plan

• Draw conclusions and make recommendations that drive results – interpreting data and translating it into actionable items

• Share the story in a clear, concise format

• Integrate Imagination into critical thinking

“Compliance alone is not sufficient. Judgment…is paramount.” Capt. Chesley Sullenberger

Are we making fact based decisions?

COPILOTING

Pilots Captain Chesley Sullenberger and First Officer Jeffrey Skiles safely glided the plane to ditch in the river after multiple bird strikes caused both engines to fail. All 155 passengers and crew aboard the Airbus A320 evacuated from the partially submerged airframe as it sank into the river; they were rescued by nearby watercraft. – “Wikipedia”

US AIRWAYS 1549

COPILOTING OR PARTNERING

• “Always sitting right next to their pilot, copilots, also known as flight officers, assist the captain and play a crucial role in navigating a safe ride.” (3)

• Flight Planning – Design a path to pursue and achieve results

• Monitor instruments –> Clear KPIs and interpretation

• Radio communications – Communicate to all stakeholders

• Take off to arrival – Clear role definition

(3) Duties of a Copilot by Stefania Seccia

The Copilot or Finance Business Partner has a very clear role in the business process, it is the right hand of management

THIS IS NOT COPILOTING!

CHARACTERISTICS OF A GOOD COPILOT (PARTNER)

• Learns and observes from the Captains you fly with

• Always lets the Captain set the rhythm of work

• Leaves the ego out the door, doesn’t test the Captain’s knowledge

• Doesn’t burn bridges

• Is not be shy to ask questions to clarify that it is not understood

• The most stupid question is the one that is not asked

• Is honest, himself/herself, builds relationships

• Keeps professional 100% of time, let your partners know you care about your responsibilities

• Doesn’t hesitate to speak up, or even act

Great (business) relationships are based on

EFFECTIVE COMMUNICATION and TRUST

EFFECTIVE BUSINESS PARTNERING

Apply

• Ensure collaborative decision

making

• Model proactive, results oriented

behavior

• Be inquisitive and constructively

challenge

• Leverage diverse expertise of the

Finance team

• Apply critical thinking as a core

competency

• Provide insights and solutions based

on business trends

Outcome

• Integral member of the business

and function

• Leader in the organization

• Active participant in strategic

decisions

• Trusted advisor across the

business

• Driver of consistent business

results

CHALLENGES OF TODAY’S FINANCE PROFESSIONALS• Organizations are required to do more with less

• Data is readily available -- the challenge is to understand and interpret it

• Business environments change very rapidly -- quick turnarounds

• There is fierce competition in the markets – no room for error

Business partnering requires the effective allocation of limited resources to achieve financial objectives

SOME FINAL THOUGHTS

What is not strategic partnering

• Not taking responsibility

• Not putting the hands in the fire

• I vs. We

• 100% and late vs. 80% and on time

• NO! and no ideas

• Throwing people under bus

Who should partner?

• EVERY SINGLE MEMBER OF THE ORGANIZATION

SUMMARY

• Partnering is a journey

• Foundation -> Capabilities -> Value Added

• CFOs describe a greater involvement in supporting and even developing strategy, guiding key business initiatives

• Business partnering requires the effective allocation of limited resources to achieve financial objectives

• Building effective relationships requires communication and empathy

• Critical thinking requires a framework

• The power of WHY and WHAT IF

• Copiloting

• Every single member of the organization should be partnering

Thank you