Finance Insights Reimagined

IN ASSOCIATION WITH
FINANCE INSIGHTS – REIMAGINED

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June 2020
FINANCE INSIGHTS –
REIMAGINED
The role of the finance function in organisations is changing,
not least in the way that it provides its stakeholders with insights
based upon a range of data sources. In this report we explore the
trends and projections for how finance functions need to adapt.
The insights in this report are based upon several interviews and
roundtables conducted with ACCA members and other interested
parties and the results of a survey of 3,502 accountancy and finance
professionals, including ACCA members and future members,
contacts and clients of PwC and members of the Shared Service
Forum based in India, which was conducted in February 2020.
n United Kingdom n Pakistan n Republic of Ireland n Other

Geography n Malaysia n Nigeria n Zimbabwe
n mainland China n Mauritius n Ghana
n Financial Accountant n Internal Auditor / Financial compliance

n Chief Financial Officer (CFO) / Director n External Auditor
nF inance / Operation Manager nA udit Manager / Senior Manager
Role n Financial Controller / Head of Compliance n Consultant
nM anagement Accountant nC hief Executive Officer (CEO)
n Business Partner n Other
n Corporate
sector – small / medium sized ccounting and advisory firms –
nA
n Corporate sector – large Mid-tier accounting firm
nF inancial services – small / medium sized ccounting and advisory firms – Small
nA
or medium-sized accounting firm (SMP)
Sector n Financial services – large
nN ot-for-profit organisation
ccounting and advisory firms –
nA
Other international accounting firm
n Public sector nS hared Service Centre
ccounting and advisory firms –
nA n Other (please specify)
Big Four accounting firm
Foreword
We continue to live in times of rapid change, competitive markets, and

uncertainty. Throughout this period, understanding and responding
to customer needs is critical to business success. At the same time,
the digital revolution is transforming the way organisations operate
and interact with a wide range of stakeholders including governments,
employees, the public and their suppliers, business partners and
their customers.
Maintaining focus in these areas and balancing the short- and long-term views of
performance is especially important in the light of the economic impact of the global
Helen Brand COVID-19 pandemic. During this period, it has been critical to focus not only on risk but
Chief executive, ACCA also on opportunity and as these two factors change it is vital that organisations have
an agile, data-rich approach to rapidly explore their options. Understanding customers’
voices and those of the wider stakeholder groups in society is paramount for achieving
sustainable growth.
Although many things have changed over the past few months, the core challenges of
our society also remain. The impact of our activities on the climate, for example, means
that as individuals and organisations we are thinking more broadly, more ethically, about
those who we transact with as our customers and employees. Similarly, the impact
organisations have on the society and communities in which they operate is also in focus
for most businesses. For many, articulating their purpose and how they address the
use of resources and create a sustainable business model is as important as short-term
financial performance when it comes to attracting talent and driving the sustainable
Brian Furness growth they are looking for.
Global head of finance For the accountancy and finance community, this provides an opportunity for developing
consulting, PwC new ways of thinking about how organisations measure and mitigate risk, how they
articulate the value they deliver and how they identify and grasp the opportunities for
growth. Using lenses such as the six capitals of integrated reporting broadens the view
and aligns to organisational purpose. Delivering business insight from the vast amount
of data available is critical to achieving these objectives and finance professionals are
uniquely placed to provide it. In the current climate, they should feel empowered to
develop innovative ideas based upon robust data and well-crafted analysis and to
challenge the thinking of the organisation using this insight. Times of crisis, particularly,
bring these skills to the fore. They are, however, skills that need to be continually
invested in. As the potential of data and insight grows, the ability to weave the business
narrative could well be the difference between success and failure.
This report highlights the fundamental role of the finance business partner to support
this constantly changing business model through robust insight, founded upon their
core competencies including our ethical approach. The ideas have been validated with
a range of those with an interest in this area. The message is clear; accountancy and
finance professionals have a robust skill set that can play an ever-important role in driving
business performance.
4
Contents
Executive summary 7
Why insights matter 9
1. Redefining performance for organisational purpose 14

1.1 The purpose-centric organisation 14
1.2 The finance business partner 15
2. The business partner role 17

2.1 The transformation of the finance function 17
2.2 What is a finance business partner? 17
2.3 Today’s finance business partner: A fundamental part of the business? 19
Forward or backward looking? 21
Challenge of meeting leader’s expectations 23
What do we value in our finance business partners? 26
2.4 Forward-looking insights 28
Changing importance of finance business partners 32
The future of the finance business partner role 33
2.5 Finance business partners in a time of crisis 34
2.6 Finance business partnering in small and medium-sized enterprises 34
3. The evolution of finance insights 37

3.1 Six hypotheses for the future of finance insights 37
i. Business partners will offer strategic and collaborative support to operational decision-making 38
ii. Oversight, guardianship of data integrity will be an essential part of the role 40
iii. Business partners will increasingly focus on predicting performance against organisational purpose 41
iv. Business partnering will become more commonplace than other finance roles 42
v. Failure to evolve skills will render the role obsolete 43
vi. Self-service reporting, artificial intelligence and machine learning will free business partners from
previous responsibilities 43
3.2 Barriers to evolution 45
4. The future vision? 47

4.1 Re-evaluating performance 47
4.2 The six capitals of the Integrated Reporting <IR> framework 48
4.3 Using the six capitals for performance reporting 49
Current appreciation 50
In three to five years – the medium term 50
4.4 The capitals evaluated 51
4.5 Technology agenda 59
4.6 Developing the finance business partner of the future 60
4.7 Starting a finance career as a business partner 61
Conclusion 63
Acknowledgements 65
References 67
5
FINANCE INSIGHTS – REIMAGINED | EXECUTIVE SUMMARY
THE MESSAGE IS CLEAR;

ACCOUNTANCY AND FINANCE
PROFESSIONALS HAVE A ROBUST
SKILL SET THAT CAN PLAY AN
EVER-IMPORTANT ROLE IN DRIVING
BUSINESS PERFORMANCE.
6
Executive summary
In this fast moving and dynamic world, organisations who will thrive and surpass
others will be those who exploit their data to derive insights and discover
opportunities. A story emerges that encompasses a variety of data sources and
is aligned to the overall organisational purpose, which is not achieving a purely
financial goal.
There is a temptation in responding to the COVID-19 events, seen as the conduit between finance and its stakeholders.
as organisations and economies seek to recover, that the What role do they play and how should they respond to
sole focus is on the financial imperative. That may well ignore this changing dynamic?
the import of other disturbances that society will continue
to face and may lead to narrow responses to broader A changing role for the finance professional
issues that are connected to the financial performance. ACCA and PwC jointly conducted a survey, a workshop,
and several interviews with leading finance professionals
As a society, we are expecting our businesses to be more to explore current perceptions of the roles and the extent
ethical in their approach. We can no longer afford to of the opportunities. The opportunities open to
ignore issues such as climate and resource constraints. accountancy and finance professionals were reflected in
Not only are our employees increasingly demanding this six hypotheses that suggested a future direction of travel
more ethical and purpose-driven approach, but so are our for this community and the insights that it provides. This
customers and our investors. has been highlighted through the contribution that these
individuals have played in the context of the current
The finance community within an organisation is not business turbulence. Having the agility to support and
immune to these trends. Rather, it needs to play its role at influence business decision-making in rapidly changing
the centre of them. Performance and insight are domains times, supported by access to robust data sources that
that we rightly occupy. The culture of organisations is give an organisation wide insight. The important skills of
changing. Customer-centricity requires agility, which in adaptability and trust come to the fore in situations such
turn demands cross-organisational collaboration; here, the as this. Technology and data on their own are never the
finance community is best placed to gain a central position. complete answer.
Much of finance activity has focused traditionally on Our survey showed that while most of the respondents
reporting the historic: perhaps inappropriately backward- claimed that finance business partnering was a proactive
looking in this economic environment. Finance teams role in their organisations, only 37% reported that it was
need to deliver new insights in more relevant ways in order truly embedded: a fundamental part of decision-making
to address business needs. A failure to do so threatens and strategy. The two most valued aspects in the role
to marginalise the finance function and to allow shadow were the support of business strategy and the analysis
organisations and other groups to exploit the demand for of current performance; this suggests that finance
this new approach. professionals might not yet be achieving the forward-
looking view on which the future of the finance function
Much attention has focused on the finance business may depend. Chapter 2 explores this in more detail.
partner: individuals, or a group of individuals, who are
7
The opportunity for finance insights we explore how these can be used and observe how
Our hypotheses (Chapter 3) allow us to explore the organisations are being challenged in the current
opportunity for finance insights and the role of business circumstances to address this broader picture.
partners in generating these.
Value is created in many ways and a traditional view of
Those respondents who saw themselves as embedded business cases based on the pure financial imperative
were more forward-thinking about their journey. may well mean that necessary investments that address
a longer-term sustainable purpose are not made.
Over half the respondents stated that the journey to Nonetheless, there is a need to develop a finance skill
achieving strategic insight and the oversight of data set to accommodate this shift; one that embraces a
quality was under way, but fewer than half considered that range of technical skills, softer skills and business acumen
the finance function had yet to make as much progress driven by a new world view. Having a view across the
towards achieving a purpose-centric view of performance organisation through many different views of performance
and gaining the ability to use data to drive the insights. is essential. Operating models are changing to become
Finance needs to use the trends in the assurance of data, more customer centric and broader in objective. The
applying an ethical lens and being the trusted adviser to finance community needs to recognise this shift and
the business, integral to decision-making at all levels. assess performance in a broader sense across the range
of capitals. To be too narrowly focused on the financial
Finance insights aligned to the purpose of the disclosures would negate the view of true operational
organisation and the value so created were similarly seen value and decision-making. A failure to ignore the
as perhaps not immediately achievable, as the workshop inherent value of data, a component of the intellectual
participants commented, because of a lack of clarity about capital, in realising value may well bias our decision-
how this performance could be measured (Chapter 4). making. The human and social capitals are strongly
Over 70% of the respondents argued that this would be aligned to organisational purpose and the ways in which
achieved in the next three to five years, highlighting a consumers, employees and other stakeholders evaluate
significant shift in the finance community’s contribution to it. The natural capital is one that cannot be ignored.
the organisation. Embracing each of these drives value in the organisation
across a broader agenda.
The six capitals of the integrated reporting framework
(Table ES1) provide a basis upon which we can understand There is an opportunity for the finance community to
and evaluate organisational purpose. In Chapter 4 seize; it needs to be embraced.
FIGURE ES1: Six hypotheses about the future development of finance insights
The role of Oversight, Effective Business A failure to Self-service

financial guardianship of business partner roles evolve the skills reporting
business data integrity partners will will be more of the business and the
partner will and standards increasingly commonplace partner will emergence of
become more will be an focus upon than other render the AI and machine
strategic and essential part evaluating finance roles effectiveness learning
collaborative of the role, and predicting as a result of of the role will free up
to support including performance automation obsolete business
operational aspects of non- against the amd process partners and
decision- financial and six capitals; efficiency take previous
making external supporting the responsibilities
across the data as well as organisation’s out of their
organisation financial data overall purpose hands
8
TABLE ES1: The Six Capitals of Integrated Reporting
CAPITAL DEFINITION
Financial
The funds available to an organisation to produce goods or provide services. These funds are sourced
through debt, equity or grants, or generated through operations and investments.
Manufactured
Manufactured physical objects available to an organisation to produce goods, or provide services,
including buildings, equipment, infrastructure (such as roads, bridges, water-and waste-treatment plants).
Intellectual Knowledge-based intangibles, including intellectual property, such as patents, copyrights and software,
rights and licences; ‘organisational capital’ such as systems and protocols; and ‘tacit knowledge’
(knowledge of the business that is held by employees and managers but that is difficult to communicate).
Human People’s skills, abilities, experience, motivation, intelligence, health and productivity. It includes their support
for an organisational governance framework, risk management approach and values; their understanding of
an organisation’s strategy and the ability to implement it; and their loyalty and ability to lead and collaborate.
Social and This category includes institutions and relationships within and between communities, stakeholder groups
responsible and other networks; shared norms, common values, and behaviour; trust the organisation has fostered,
brand and reputation; and an organisation’s ‘social licence to operate’.
Natural All renewable and non-renewable environmental resources and processes that provide goods and services
that support the organisation’s past, present and future prosperity, including air, water, minerals, forests,
biodiversity and ecosystem health.
FINANCE TEAMS NEED TO BE CONSCIOUS

OF THE ORGANISATION, APPLYING THE
INFORMED, ETHICAL LENS TO THE NARRATIVE.
WE NEED TO REIMAGINE INSIGHTS.
9
Why insights matter
We need to reimagine the nature of organisational performance with a broad range of insights based
across a variety of metrics as we focus on our core purpose. Finance is best placed to breaking down
organisational silos to achieve this. We need to ask ourselves how transformative do we need to be?
WHY INSIGHTS ARE INCREASINGLY IMPORTANT PURPOSE OF THE ORGANISATION AND THE ROLE
In the transformed world data is key. It is a source OF INSIGHTS
of competitive advantage. Whether this is through The purpose of the organisation has been placed in
appraising investments, profitable growth opportunities, sharp focus. There is a clamour for more transparency
new markets, or channels, or understanding complex in business because, if it does not demonstrate this, it
positions and strategies. It comes down to access to will lead to a destruction of financial value. It is possible
data and how you generate value from it using that given the recent events we will see a change in
interpretative insights. The reality is that barriers to entry stakeholder demands of organisations to question how
are now a lot lower. Understanding the position of the the organisation has responded to the crisis. In addition
organisation and how it compares to its competitors is to questioning profitability and dividends of organisations
essential. The data that we possess and the insights that they are focusing on the continued employment of
we can generate from this is a fundamental component their people and whether they have supported health
of our decision-making. services or critical workers. This is going to persist as we
transition out of this phase and the broader measurement
The COVID-19 pandemic has required organisations and evaluation of organisational purpose is becoming
to focus on their strategy, how the business processes increasingly fundamental. It is a different dimension to
really enable this, and the risks faced. The robustness of the narrative and how decisions need to be taken.
organisations has been called into question in ways in
which we have not previously foreseen. It has required a The key challenge is how we, as the finance function, work
speed of response and a level of agility that many have within the organisation to evaluate the value that is added
not expected. When we spoke of insight in the past, we through the activities. We need to address the demand
often looked at historic performance and how we faired to evaluate performance, aligned to purpose, by utilising
in the normal course of business. The pandemic has concepts such the six capitals of integrated reporting. The
refocused us on the immediate, not only from a financial six capitals can be applied, for example, to demonstrate
perspective but also from how we, as an organisation, how in the human capital, we have safeguarded the well-
have contributed to the social good. We have been being of our employees, how intangible assets drive value
required to be forward looking and adaptable in our creation, the in natural capital the sustainability agenda
decision-making. Having robust insights to support this has been addressed and we have optimally used the
has proved essential. natural resources required.
10
Why insights matter
THE ROLE THAT FINANCE NEEDS TO PLAY have probably not been as quick as they would have liked
Decision-making needs to reflect this broader agenda to have been. There is a need to be more proficient in
and with the scope across the organisation it has the sourcing the data quickly, collaborating across teams to
ability to break down the barriers and silos that may analyse and visualise that response.
well be constructed around the data and to capture
it more holistically. We have traditionally placed our One key lesson from the pandemic will be how truly
focus on financial reporting and quarterly returns. transformative a lot of organisations have been digitally.
Just as we are embracing changes in how we work we It has exposed for some whether they have been able
need to change our mindsets to recognise how these to respond adequately because they lack the data and
imperatives are broadening. If we consider the levels insight to support the necessary rapid decision-making.
of collaboration needed in recent times to address the As finance we need to act as the aggregators across the
threats to organisations, through increased agility and data sources and to ensure that they can be exploited
virtual collaboration it is important that we do not lose in the right way. We need to question data sources and
these gains. The scenario planning necessary has involved whether we have access to the appropriate internally and
supply chain, marketing, risk, and other teams to provide externally sourced data.
a comprehensive insight. But for many, finance has been
The future world will be different because of the recent
the centre of the response.
events. We are used to taking decisions with profitability
Different sources of data from across the organisation in focus. Now we need to adapt to the broader agenda
and the speed by which you can provide the analysis and and how we broaden the social consciousness in what
insight; to support and enact decisions is fundamental. we do. Finance teams need to be conscious of the
The need to be agile in pivoting from one analysis to the organisation, applying the informed, ethical lens to the
next is paramount. Organisations have realised that they narrative. We need to reimagine insights.
Brian Furness,
Global Head of Finance Consulting, Jamie Lyon,
PwC Portfolio Lead, ACCA
11
So, in summary, what should I do?

In this table we present a summary of the key considerations highlighted as part of this research. Each of these
recommendations is considered in the report.
ORGANISATIONAL PURPOSE AND INSIGHT
E
nsure that you have a clearly defined purpose for the organisation that encompasses the value to society that it
plans to achieve.
M
ap this against the relevant capitals to determine how the purpose can be achieved.
R
ecognise the shift to making decisions for areas beyond the traditional finance boundaries and how data and
insight can drive operational excellence.
E
ncourage a culture of purpose-centric decision-making that does not focus only on financial return.
INSIGHT STRATEGY
C
reate a clear structure for finance that supports the business partnering and insight agenda, with clear roles
defined; educated across the broader range of value metrics and embracing the six capitals as a part of
decision-making.
A
ppraise the current finance business partner capability in your organisation against the survey results.
D
evelop, or review, the role of the finance business partner as part of the overall finance function strategy to
ensure that it serves organisational needs.
R
ecognise that the mindset able to generate insight is equally necessary in Small and Medium Sized Enterprises
(SMEs) and in larger organisations
I dentify the value that the finance business partners can and should add across the organisation. Their role
needs to be embedded in the organisational structure in alignment with the business model and value should be
enhanced by a culture of agile decision-making.
E
stablish reporting mechanisms across the organisation that reflect performance from a range of perspectives,
aligned to the achievement of the organisation’s purpose, and measure and reward performance accordingly.
ORGANISATIONAL CULTURE
E
nsure that you have an organisational culture that supports the development and delivery of agile insights and
executes plans based on the recommendations.
C
reate a culture of agility and innovation developed around customer-centric operations.
PEOPLE
R
ecognise that the skills of finance business partners who operate at a strategic level are often different from
those needed in other finance roles and require different developmental paths.
A
ppraise the skills of the current finance business partners and identify opportunities to develop their skills in line
with expectations.
S
upport innovative and creative thinking and reward ideas and appropriate action.
I nvest in data skills for finance business partners, enabling them to realise these opportunities and drive insight.
C
reate and implement career paths that reflect the need to develop the future skills needed by the function.
12
PROCESS
O
ptimise business processes to exploit collection of data both operational and financial to support insight
generation and decision-making based across the range of capitals.
I nstigate a performance management approach that thinks broader than financial return and aligns to
organisational purpose.
R
eview the approach to scorecard measurement of performance and align processes to reflect customer centricity
and value creation.
TECHNOLOGY
E
xploit the investments in technology and data across the organisation to maximise their potential.
I dentify the technology suite that enables you to model and interrogate the data to develop scenario models.
U
se technology and available data to develop a business model that supports business activities, while accepting
that the concept of the ‘digital core’ of the organisation can involve using cloud-based applications relevant to
this sector.
D
evelop and implement a technology strategy for the finance function, as part of the wider organisation, that
provides access to robust data sources and the appropriate visualisation.
I dentify and remedy technology and data weaknesses in the organisation, focusing on the data sets necessary to
create customer value by yielding useful insights.
DATA
C
lean and accurate data is essential for effective insight generation. Establish appropriate governance over the
data in the organisation to support insight generation.
E
nsure that data is collected from various relevant sources to measure the value to society.
F
inance functions need to develop a constructive mindset around data, to explore it and play with it, be
inquisitive and understand the business impact of things rather than force structure, reconcile it to try and make
it accurate.
T
here is a need to develop a balanced approach to risk taking. Appreciating that there is not always a need for
pinpoint accuracy or does the 80:20 work well enough.
13
FINANCE INSIGHTS – REIMAGINED | 1. REDEFINING PERFORMANCE FOR ORGANISATIONAL PURPOSE
1. Redefining performance
for organisational purpose
1.1 The purpose-centric organisation If the lens through which everyone perceives organisations
Since the advent of accountancy concepts in ancient is changing, how can we, as accountancy and finance
Mesopotamia, and certainly since Europe moved towards professionals working in them, play our part in ensuring
a monetary economy in the 13th century, organisations that those organisations succeed?
have been defined by a financial imperative – the need
to return capital to those who have invested in them. A survey conducted by PwC in 2016 indicated that 79% of
This has been enshrined in the legal frameworks that business leaders surveyed believed that an organisation’s
govern organisations. Our performance processes have purpose is central to business success, yet 68% revealed
become focused on the measurement of the value that purpose is not used as a guidepost in leadership
through monetary means – the basis of the accountancy decision-making processes within their organisation (PwC
and finance community. We have developed corporate 2016). Furthermore, from the survey, PwC conclude that
measurement systems based on key performance millennial employees are 5.3 times more likely to stay with
indicators (KPIs) and critical success factors (CSFs). their employer if they have a strong connection to their
These often drive organisational behaviours, not all of employer’s purpose in comparison to those who do not,
which are goal congruent. in contrast to 2.3 times for other employees in the same
position, but in practice only 33% of employees drew real
The focus on the impact that organisations have on meaning from their employers’ purpose.
the climate and other issues, such as the exploitation
of natural resources and the real economic cost of this,
have forced us all to step back and reappraise. While 79% OF BUSINESS LEADERS
that financial motive remains important, we now talk of SURVEYED BELIEVED THAT
organisational purpose – how organisations contribute
to society and deliver value. In so doing we appraise the AN ORGANISATION’S
resources that they use to do this: the natural resources PURPOSE IS CENTRAL
whose overuse may be contributing to climate change;
the human resources that facilitate the operation of the
TO BUSINESS SUCCESS,
organisation itself; the resources that we use to create YET 68% REVEALED THAT
the product or service that the organisation provides.
Increasingly, as a society, we are looking through that
PURPOSE IS NOT USED AS A
ethical lens. Investors, NGOs and other stakeholders are GUIDEPOST IN LEADERSHIP
increasingly challenging organisations on this agenda DECISION-MAKING
and directing funds to those organisations that are seen
to appreciate the issues and appropriately manage the PROCESSES WITHIN THEIR
risks. As individuals, we use this lens to make decisions ORGANISATION (PWC 2016).
on whether to engage with organisations – do we wish
to work for them? Do we wish to buy or consume their
products? And so on.
14
Caterina Bulgarella (2018) notes that purpose can be 1.2 The finance business partner
defined in two ways: linear and transformative. A linear One of the key activities in the finance function in recent
purpose focuses on linear growth, using existing assets years has been the development of the role of the finance
to broaden the range of products that can be delivered business partner. He or she is the key channel between
but it will not affect the lives of customers. In contrast, the finance function and internal, and sometimes external,
transformative purpose focuses on what the organisation stakeholders. Yet the term ‘business partner’ has many
can do to harness its transformative potential and identify connotations and no clear job description. For some
possibilities that it has not previously foreseen. For the organisations, it is a tactical role, for others, a strategic
finance professional, providing data and information to one. It is, perhaps, what the role holder makes it, an
support this transformative purpose is a key role. In this ethos. If finance functions are to play their role fully in
sense, a broader agenda based on multiple capitals is the development of the purpose-centric organisation,
essential to support the transformative purpose. especially in the way that performance across the
organisation is measured, then defining the role of the
While the impact of the COVID-19 pandemic may focus finance business partner becomes ever more important.
organisations’ attention on short-term measures to
support liquidity, it would be wrong to forget the ever- Above all, it is making use of professional insights
present impact of the climate emergency and the role that that will enable organisations to grow and attain their
finance professionals can, and should, play in ensuring strategic objectives. That finance teams have a
that organisations address that issue. There is a strong substantial role to play in that may be a given, but how
business requirement to focus on the climate and resource we can best do this is not.
issues. They will not disappear. Transformative purpose
is here to stay. It requires an organisational culture that The trend of digital transformation, highlighted by
is true to the organisational objectives. A transformative the COVID-19 pandemic, has emphasised the need
purpose requires a transformative and agile culture.1 for organisations to be agile and have a clear view of
Achieving this is often a challenge. performance. Those who have most readily adapted
are those who have good data models and robust
Within organisations, we need to take this wider analytical capabilities.
perspective. The role of the finance professional in
interceding with other teams in the organisation is often In this report we explore the interaction of the two topics:
framed as that of the ‘finance business partner’. the generation of insight and future performance (closely
linked to the role of the finance business partner) and
the emergence of the need to measure organisational
THE TREND OF DIGITAL performance against strategic objectives in the purpose
TRANSFORMATION, that the organisation serves. In Chapter 2 we evaluate
HIGHLIGHTED BY THE the current state of the finance business partner role;
with a specific focus on some of the implications of the
COVID-19 PANDEMIC, HAS COVID-19 pandemic considered in section 2.5. Chapter
EMPHASISED THE NEED FOR 3 takes six hypotheses for the future development of
ORGANISATIONS TO BE AGILE the activity and considers the implications of these,
and Chapter 4 describes the evolution of performance
AND HAVE A CLEAR VIEW OF management for the business partner in addressing
PERFORMANCE. THOSE WHO organisational purpose and concludes with an assessment
HAVE MOST READILY ADAPTED of the skills that finance business partners need to if they
are to generate insights across the organisation.
ARE THOSE WHO HAVE GOOD
DATA MODELS AND ROBUST
ANALYTICAL CAPABILITIES.
1 The nature of a transformative culture and how finance leaders can play their part is discussed in Digital Leadership: Leading finance digital transformation (Cui and
Webb (2019)).
15
16
FINANCE INSIGHTS – REIMAGINED | 2. THE BUSINESS PARTNER ROLE
2. The business partner role
2.1 The transformation of the finance function The role of the finance business partner is described as
ACCA/PwC’s report Finance: A Journey to the Future? the business-focused, project-based, organisation-facing
(2019) establishes several trends in the development of the and decision-making component. One CFO considered
finance function. Key among these is the use of data to this to be at the core of the value that the finance function
derive insight for the function’s stakeholders. That report provides. She explained that while the core processing
makes several recommendations about data, technology could, and was, being placed in shared service centres
and processes, skills and culture in the organisation, which (SSCs), the analysis and interpretation of the data were of
finance functions might consider embracing to ensure that prime importance. For example, much of the automated
they remain relevant. transaction processing was best placed in the operating
units, such as procurement, with oversight from finance.
Fundamental to achieving this future vision is the ability
of the function to present, in an effective manner, the Another CFO commented that to support effective
‘story’ of the business. This is seen as a responsibility that business partnering, and indeed the operation of the
is associated with the finance business partner. In this finance function, as flat a structure as possible should
report, and following on from the ideas developed in be developed, to create an agile mindset that facilitates
ACCA/PwC (2019), we evaluate this fundamental role and decision-making.
how it might develop.
2.2 What is a finance business partner?
In ACCA/PwC (2019) we presented an overview of the There is considerable literature available on the role,
structure of the finance function that put the business skills and attributes of the finance business partner.
partner role at the centre. Many commentators seek to define the business partner
in various ways. According to the vision for finance
outlined in ACCA/PwC (2019), the finance business
FIGURE 2.1: A finance function of the future? partner is a strategic player in the organisation,
supporting decision-making and having a deep insight
Finance leadership into the business model.
Strategic partners
Recruitment consultancy Randstad comments that ‘a
finance business partner needs to be an excellent project
Centres of Business
expertise focused manager as well as a creative thinker. This is a role that
Treasury, Project-based,
calls for both a starter and a coordinator’ (Randstad 2019).
risk, external organisation-facing,
reporting, tax decision-making PwC Netherlands defines finance business partnering as
‘the role that the financial function takes by supporting
and challenging the “business”, aiming to ensure that
Core processing (P2P, O2C, R2R) the strategic path chosen will create the desired value,
Technology enabled, RPA and AI facilitated
[balanced] against acceptable levels of risk’ (PwC 2017).
Source: ACCA
17
Finance business partnering: changing conversations… changing decisions
A lot of people discuss whether finance business partnering is a role or mindset. I’m personally a
strong believer in that it is a role with a specific mindset. I’ve also come across CFOs who firmly
believe that it’s a mindset, and that everyone in finance should have that mindset.
FIGURE 2.2: Perceptions of the finance business partner role
Is a key objective for most finance functions

and entails effective partnering with the
business to create value. Delivering relevant
and timely management information and
supporting the corporate performance
Means performing tasks
management models are key priorities.
in a timely and cost
Business insight effective manner, typically
Effective ways of via simplified and
working with business standardised processes
that leverage technology.
Have been at the top of It involves embedding
the agenda in recent years. ns perating an optimal sourcing
The future business needs to tioight o e business? Do
r th tal y model, which supports
model to pa ave t a
ith
s
optimise risk management,

rtne he
Pe ve the rigahbtilitiiexsof
ou t and
Do you ni
consolidation and
rw
en
ha
op
a
compliance and control to elimination of non-core

Org
h
le
establish a sustainable cost

cap
activities through shared

effectivecontrol environment, services and outsourcing.
m
which meets today’s

?
requirements and is flexible

in terms of future changes
in regulations.
Ho Te
Compliance ww ch Transitional
ell nology
and control do y gy? efficiency
ou leverage technolo
How to balance Improving task
sustainable costs without performance in a timely
constraining the business and cost effective manner
Source: PwC
The way that we at PwC look at a finance department in The purpose of business partnering is value creation. My
totality is this triangle. It has transactional efficiency in one definition of the role is that the business partner should
corner, compliance and control in another and then, at the be changing conversations and changing decisions.
top, it has business insights.
Business insights are something that you choose. That
If it you elaborate on those groupings, then you can see choice comes with an investment that you need to make
transactional efficiency, the payables, receivables, general in individuals and in resources to support them. The
ledger, external accounting and management reporting payback is measured in the challenging conversations
in the bottom right, and the compliance and control, and changed decisions that these individuals deliver. For
our corporate central functions, to the bottom left. For finance business partnering to be effective, the partners
many large organisations the transactional efficiency is need a seat at the senior table and to be able to use it.
undertaken in an SSC, often in a low-cost, salary arbitrage There is no value in a function that purely provides data, it
focusing on efficiency of transactions and bringing costs needs to challenge the organisation and promote growth.
down. The compliance and control functions are often at For me that is the only way that a finance business partner
the corporate headquarters. Both functions are required can be effective. They need to be co-located with the
and are a core part of the finance activities. business and in teams that reflect the organisation of the
business itself, not the structure of finance.
That then leaves us with the business insight at the top
of the triangle. This is where the strategy and planning,
budgeting, forecasting, analysis and improvement project
are undertaken. If you go with this definition, then the
finance business partner, of course, would be within the
Claus Thorne Madsen,
business insights.
Partner, PwC Denmark
18
One interviewee, a CFO in a leading industrial entity 2.3 Today’s finance business partner:
in India, commented that, as business partners, ‘we’re A fundamental part of the business?
expected to provide solutions – and often that requires The initial consideration was to establish whether
integrating knowledge of your market or industry, non- finance business partners were a core part of the finance
financial data, such as macroeconomic trends and financial organisation (Figure 2.3). Has finance business partnering
data, and to synthesise that into a solution for your become an established part of the organisation, and if
strategic business partner, whether it’s a new strategy, so, to what extent? Is it perceived as a strategic role or a
new markets, new products or repositioning an existing tactical one?
product to optimise income.’
Among the survey respondents, 59% thought that the role
Yet in conversations with finance leaders among the ACCA of the finance business partner was either embedded in,
membership and the PwC client base there is a definite or a fundamental part of, the organisation. To differentiate
belief that there is room to improve the relevance of the these two categorisations, the embedded business
role. The term ‘finance business partner’ meant different partner operates in cross-functional teams but is not an
things to different people and while it was in accepted use active contributor to the decision-making process, instead
there was no clarity as to what exactly it meant, except for providing data and insight to support it. In the context this
the fact that it was vital to the future success of the finance shows that the role is perceived by the respondents as being
function in organisations. a core part of the finance function and potentially operates
more at the strategic than tactical level by providing
In support of this, one of our interviewees, an experienced insight and commentary that focuses on supporting the
finance consultant, commented that finance business business objectives and forward development, rather than
partners ‘are seen to add value to whatever discussions just reporting what has been achieved already.
are going on with the business, whether those are
budgetary, whether it’s supporting investment. It’s hard to One senior CFO interviewed commented that, for him, ‘the
get that seat at the table if you don’t have the right skills litmus test is how many people from operating divisions
and experience or the potential to do that’. are calling or standing in line to get the advice of my
finance staff’. The theme of an active partnership between
What is the perception of the finance business partner in finance and those with whom it interacts across the
today’s workplace? business was seen by many interviewees as fundamental
to the role. The percentages of those who see the role as
‘embedded’ and ‘fundamental’ underline this.
FIGURE 2.3: On a scale of 1 to 5, to what extent has the role of the finance business partner become
established as a core part of your organisation at the present time?
6%
n 1 – not a part
n 2 – limited examples
59% OF RESPONDENTS
9%
n 3 – provides THOUGHT THAT THE
operational support
37%
to other areas of the ROLE OF THE FINANCE
organisation
n 4 – embedded in BUSINESS PARTNER WAS
organisation
n 5 – a fundamental part
EITHER EMBEDDED IN, OR
26%
of decision-making A FUNDAMENTAL PART OF,
THE ORGANISATION.
22%
19
There were, however, variations by sector (Figure 2.4) and Once more there are clear variations. The respondents
geography (Figure 2.5). from Australia reported the most significant extent of the
role played by the finance business partners, yet half the
Clearly the SSC industry sees a significant advantage in respondents from all geographical regions reported that
the business partnering activity, which is to be expected; finance business partners were either embedded in or
yet the greatest impact, according to our respondents, fundamental to their organisations, with the exception
is in the corporate sector, with over 41% indicating that it of Hong Kong SAR, where the results may indicate the
is a fundamental part of decision-making. For those greater importance of local businesses that may have fairly
in SSCs globally2 we are seeing an evolution from traditional approaches to the role of finance.
transaction processing to more valued-added analysis
and interpretation.
Analysis by sector – respondents who ranked the role at 4 or 5 only
50%
n Accounting
n Corporate sector /
40% Financial services
n Financial services –
small / medium sized
30% n Financial services –
large
n Corporate sector
20% n Not-for-profit
n Public sector
n Shared service centre
10%
0%
4 – embedded in organisation 5 – a fundamental part of decision-making
Analysis by significant geographical region – respondents who ranked the role at 4 and 5 only
60%
n United Kingdom
n mainland China
50%
n Republic of Ireland
n Pakistan
40% n United Arab Emirates
n Malaysia
30% n Hong Kong SAR
n India
20% n Nigeria
n Singapore
n Australia
10%
0%
4 – embedded in organisation 5 – a fundamental part of decision-making
2 The shared service centre respondents have a broad geographic base, with only 10% being located in India.
20
Forward or backward looking? Among our respondents, 74% claimed that finance business
The survey respondents were asked whether their finance partners focus on both historical and future performance.
business partners were focusing on historic performance, This is a clear endorsement that, as accountancy and
future performance, or both. In the survey conducted finance professionals in business, we are making a transition
for the report Finance: A Journey to the Future? (ACCA/ from using only an historic lens to applying a more strategic
PwC 2019), 25% of survey respondents reported that their and forward thinking approach. When the survey responses
finance function spent all its time generating insights, from only those respondents who indicated that they were
and expected that to rise to 47% in the next three to five in the ‘C-suite’ (chief executive officer and chief financial
years (the medium term). The finance function, as outlined officer) are considered, the percentage rises to 77%.
in Figure 2.1, will continue to have a broad range of
responsibilities, and the balance between these continues It should be noted, however, that 18% of respondents
to shift. The importance of insight in supporting business stated that finance business partners focus on historic
growth is recognised and it is likely that finance business performance. So, a potentially significant minority, from
partners will in future be spending 100% of their time nearly one-fifth of the organisations represented by the
in delivering these. What is the nature of these insights respondents to the survey, indicated that progress is still
provided by finance business partners? to be made.
FIGURE 2.6: Which one of these statements best summarises how the role of finance business partnering is
currently mainly perceived in your organisation?
80%
74% OF RESPONDENTS
CLAIMED THAT
70%
60%
50%
FINANCE BUSINESS
40% PARTNERS FOCUS ON
30% BOTH HISTORICAL
20% AND FUTURE
10% PERFORMANCE.
0%
Focusing on both historic Focusing on reporting Focusing on
and future performance historic performance future performance
Percentages indicating both historic and future performance: by sector
80%
n Accounting
n Corporate sector /
Financial services
75% n Financial services –
small / medium sized
n Financial services –
large
70% n Corporate sector
n Not-for-profit
n Public sector
65% n Shared service centre
60%
Focusing on both historic and future performance
21
There were limited variations in these results by sector To contrast this, the survey respondents were asked
(Figure 2.7) or by geography (Figure 2.8). to evaluate the situation as they perceived it in their
organisation (Figure 2.9).
In all sectors approximately three-quarters of respondents
claimed that finance business partners focus on both The respondents indicated a gap between perception
historic and future performance. Most markedly, 20% of and experience, suggesting that while efforts may be
public sector respondents claimed that they focus only on made to focus on both historic and future performance,
historic performance. perceptions of the latter might not always reflect reality
and that 20% of respondents were aware of a variability in
The Australian respondents clearly had the strongest their focus. It is recognised that self-reported performance
belief that they were significantly progressing away tends to exaggerate the forward-looking focus. As
from a pure historical perspective and towards business finance professionals, we need to point this out without
partnering activity, while the Republic of Ireland was the undermining our perspective on the data.
most conservative, from the respondents’ perspective.
Percentages indicating a focus on only historic performance: by geographical region
25%
n United Kingdom
n mainland China
20% n Republic of Ireland
n Pakistan
n United Arab Emirates
15%
n Malaysia
n Hong Kong SAR
10% n India
n Nigeria
n Singapore
5% n Australia
0%
Focusing on reporting historic performance
FIGURE 2.9: Which of these statements best describes your personal assessment of the role of business
partnering in your organisation?
60%
50%
THE RESPONDENTS
INDICATED A
40%
GAP BETWEEN
30%
PERCEPTION AND
20% EXPERIENCE.
10%
0%
Focusing on reporting Focusing on future Focusing on both historic It varies a great deal
historic performance performance and future performance
22
Challenge of meeting leader’s expectations The respondents perceived that their finance business
While the picture across sectors was relatively consistent, partners are essentially proactive in approach. Those
there was more variation in the evaluation of the personal respondents who identified themselves as having roles
assessment by geographical region (Figure 2.10). in the C-suite in the survey had a similar, but higher,
59:41 split in favour of proactivity. This suggests they are
One final assessment of the approach of the finance responding to stakeholders’ demands for more proactivity.
business partners was whether they were perceived by
our respondents as either proactive or reactive. This is
demonstrated by Figure 2.11.
FIGURE 2.10: Which of these statements best describes your personal assessment of the role of business
partnering in your organisation?
Focusing on both historic and future performance: by geographical region
70%
n United Kingdom
60% n mainland China
50% n Pakistan
40% n Malaysia
n Hong Kong SAR
30% n India
n Nigeria
20% n Singapore
n Australia
10%
0%
Focusing on both historic and future performance
FIGURE 2.11: Do you consider that the current business partnering activities within your organisation are...
n Predominantly reactive
n Predominantly proactive
THE RESPONDENTS PERCEIVED

THAT THEIR FINANCE BUSINESS
45%
PARTNERS ARE ESSENTIALLY
55%
PROACTIVE IN APPROACH.
23
There are some significant variations by geography of our For one CFO, proactivity characterised the finance
respondents’ perceptions of the proactivity and reactivity business partner: ‘when I think about [the] finance
of finance business partners (Figure 2.12). business partner I think about a smaller number of more
capable finance individuals that [have a] wider outlook on
There are distinct ranges in the balance of perceptions of life and can join the dots and can facilitate discussion in
the proactivity and reactivity of finance business partners. the business.’
The Republic of Ireland and the UK score significantly
lower than other countries on the level of proactivity Another finance leader commented, ‘I think in many
that is perceived by the respondents. This contrasts aspects of the finance function, a good finance business
substantially with mainland China, Malaysia and India, partner will be seen as, and will become more of, an
where respondents see finance business partners as enabler for the rest of the business [rather] than just
more proactive. This may, in part, reflect the nature of somebody who you go to make sure that there’s adequate
the businesses that are covered in the survey, with those budget provision for the next lump of expenditure that the
in mainland China and India having more SSCs with operations team needs [and who can] automate some of
collaborative infrastructure than is the case elsewhere. the necessary changes to reflect changing circumstances
The balance for those respondents who worked in an SSC in that area of the business.’
was 49:51 in favour of a reactive role, although this may
be because SSCs are providing data for finance business
partners in retained finance functions. An effective SSC will
be analysing its data to identify performance improvement PROACTIVITY IS AN
opportunities and coordinating with the retained finance IMPORTANT ELEMENT OF
business teams to achieve these.
ACHIEVING INSIGHT AND
In general, therefore, the intention of the finance business SOLUTIONS TO BUSINESS
partners, as benchmarked by the respondents to the survey,
is to be both backward and forward looking. There is some
PROBLEMS. REALISING THIS
indication that this may not be being achieved, as one in IS FUNDAMENTAL TO THE
five suggested that the balance varied a great deal in their TRANSITION TO A MORE
organisation. Equally, while a forward-looking approach
may be, in part, characterised by a proactive approach, just
PROACTIVE APPROACH.
under half the respondents stated that finance business
partners were not predominantly proactive. Proactivity is
an important element of achieving insight and solutions
to business problems. Realising this is fundamental to the
transition to a more proactive approach.
FIGURE 2.12: Do you consider that the current business partnering activities within your organisation are...
Analysis by significant geographical region
70%
n United Kingdom
60% n mainland China
50% n Pakistan
40% n Malaysia
n Hong Kong SAR
30% n India
n Nigeria
20% n Singapore
n Australia
10%
0%
Predominantly proactive Predominantly reactive
24
Creating value
One of the challenges for a business partner is to ensure that they spend the right amount of time on
the right activities: those that add real value to the organisation.
FIGURE 2.13: The six stages of the business partnering value chain
Insight and Drive

Data Reports Analysis recommen- Decisions actions
dations
Historic – reactive Value creation – proactive
If we consider a value chain across the business partnering recommendation on the table you facilitate a decision.
activities, you may identify six stages (Figure 2.13). You influence and facilitate a decision. All too often, good
business partners make recommendations but fail to drive
Many business partners start by making sure they have home the decisions that are necessary from them.
access to the right data and that it is of appropriate
quality. Then they build reports, define them, and Lastly, when the decision is made, we need to drive that
distribute them. These reports trigger further questions decision to business actions, otherwise there will be no
and require further analysis. Why does this number look impact and no value creation. We made the decision in
different to what we expected? Why are we much better the leadership team and then we expected somebody to
than budgeted, or much worse? So, then they develop an implement it. We never followed up. We might not even
analysis, completing the first three steps. have followed up on a business case we made.
Those are the activities that I really see business partners The last three steps are significantly different from the
perform and being comfortable with. They lend themselves first three steps. These three all require that you do them
towards the classic accounting and analytical data together with the business. The first three steps you can do
crunching skills. In general, these are activities that look at behind your screen. The last three are out in the business.
historic data and are essentially reactive in nature. These
activities are often performed behind a screen, at your One client recently asked me to refocus their business
desk with little or no interaction with the business. For partnering activities. They had focused two-thirds of their
many organisations, this is where most of the time is spent. effort on the first three stages and one-third on the last
three stages. They need to flip the ratio. It is a frequent
The real value comes in taking this analysis and turning it discussion, but it is also about minimising the first three
into insights and recommendations. activities because data should be of the right quality and
should be available as self-service analysis. Then in the
The analysis that we offer is all too often the end of the latter three, that’s where you should use the majority of
story. “Here is the report that you requested”. I’ve even your time, because there’s no value created in sending off
done it myself when I was a business partner: “I’ve sent a brilliant analysis and then nothing happens.
off an analysis, say, the cost of profitability split. Here it
is”. We don’t always follow up on the consequences.
My argument is that we should always come up with

recommendations. The mentality needs to change to say,
“here is the analysis, I can see these three options and I
recommend the second option”. So, you take the analysis Claus Thorne Madsen,
and bring recommendations. Then when you put that Partner, PwC Denmark
25
What do we value in our finance business partners? A comparison by geography based upon a ranking of
The survey respondents were asked to rank, in order, the mean scores of the respondents is shown in Table
the seven most important attributes for finance business 2.1. In general, there is a similar pattern across the
partners. These were attributes of the finance business geographical regions, with either business strategy
partner’s role in the organisation that affect the services development or analysis of current performance being
that they offer to their stakeholders and enable insight the leading attributes. There is some variation in the
into the respective contributions of those services to the middle-ranked group, but all regions ranked the resolution
organisation overall (Figure 2.14). of detailed queries as the least important attribute.
The most valued attribute, when considered by Table 2.2 shows a similar ranking when responses are
aggregating the first and second preferences, was analysed by sector. The pattern is essentially the same
business strategy development, followed by analysis as Table 2.1, although the respondents in SSCs placed
of current performance. This is followed by problem a greater emphasis on forward prediction than the
identification and board-level support. Resolution of other sectors.
detailed queries and forward prediction were the least
valued attributes.
THE HIGH SCORE FOR BUSINESS
The high score for business strategy development STRATEGY DEVELOPMENT
suggests that what is valued most is the strategic input
that a finance business partner can give. Yet the lower
SUGGESTS THAT WHAT IS
evaluation for board-level support suggests that this VALUED MOST IS THE STRATEGIC
may be more tactical than strategic. Clearly, this is an INPUT THAT A FINANCE
opportunity for the finance function to develop. BUSINESS PARTNER CAN GIVE.
YET THE LOWER EVALUATION
The low score for scenario modelling compared with that
for the analysis of current performance may suggest that
FOR BOARD-LEVEL SUPPORT
business partners are focusing on the descriptive and SUGGESTS THAT THIS MAY BE
diagnostic (‘what and why’) analytics, rather than on the MORE TACTICAL THAN STRATEGIC.
predictive aspects that scenario modelling might imply.
This raises the question of whether they are producing
tactical or strategic insights in the work that they do.
FIGURE 2.14: Ranking of attributes of finance business partners – 1 = most important and 7 = least important
n 1 – most important n 2 n 3 n 4 n 5 n 6 n 7 – least important
100%
Least important
90%
80%
70%
60%
50%
40%
Most important
30%
20%
10%
0%
Analysis of current Resolution of Forward Scenario Board level Problem Business strategy
performance detailed queries prediction modelling support identification development
and resolution
26
TABLE 2.1: Ranking of attributes of finance business partners by geographical region – 1 = most important
OVERALL
UNITED
KINGDOM
MAINLAND
CHINA
REPUBLIC OF
IRELAND
PAKISTAN
UNITED ARAB
EMIRATES
MALAYSIA
HONG KONG
SAR
INDIA
NIGERIA
SINGAPORE
AUSTRALIA
Analysis of current
2 2 2 2 1 1 2 2 1 2 2 4
performance
Resolution of
7 7 7 7 7 7 7 7 7 7 7 7
detailed queries
Forward prediction 5 3 5 4 4 5 5 4 5 6 4 2
Scenario modelling 6 6 6 6 5 6 6 6 4 5 6 5
Board-level
4 5 4 5 6 4 4 5 6 4 5 6
support
Problem
identification and 3 4 3 3 3 3 3 3 3 3 3 3
resolution
Business strategy
1 1 1 1 2 2 1 1 2 1 1 1
development
TABLE 2.2: Ranking of attributes of finance business partners by sector: 1 = most important
OVERALL
ACCOUNTING
CORPORATE
SECTOR /
FINANCIAL
SERVICES
FINANCIAL
SERVICES –
SMALL /
MEDIUM
FINANCIAL
SERVICES –
LARGE
CORPORATE
SECTOR
NOT-FOR-
PROFIT
PUBLIC
SECTOR
SHARED
SERVICE
CENTRE
Analysis of current
2 2 2 5 2 2 2 2 4
performance
Resolution of
7 7 7 7 7 7 7 7 7
detailed queries
Forward prediction 5 4 4 5 5 4 5 5 3
Scenario modelling 6 6 6 6 6 6 6 6 5
Board-level
4 5 5 4 4 5 3 4 6
support
Problem
identification and 3 3 3 3 3 3 3 3 2
resolution
Business strategy
1 1 1 1 1 1 1 1 1
development
27
2.4 Forward-looking insights Many of those interviewed stressed the importance of

The ability to produce forward-looking insights is reflected trust in the relationship between the finance business
in a more role-specific view of the finance business partner and their stakeholders. Trust is important as when
partner. Above all, however, the successful finance considering the future there is no confirmed narrative,
business partner needs a blend of soft and hard business rather it is an opinion or view that needs to be concurred
skills. ACCA considers the skills that accountancy and with. Trust in the individual and the integrity of their work
finance professionals need to be successful in the report is important. In this regard it is helpful to consider the
Professional Accountants – the Future: Drivers of Change definition of trust that David Maister, Charles Green and
and Future Skills (ACCA 2016). This introduces the concept Robert Galford (academics working in business faculties in
of the professional quotients that represent the blend of the US) have developed (Maister et al. 2002). They define
technical and ethical as well as more behavioural skills trust as shown in Figure 2.16.
(Figure 2.15). The importance of the finance business
partner to be able to effectively communicate the story
behind the analysis is fundamental to success in the role FIGURE 2.16: Maister’s trust equation
(as explored further in section 4.6).
Credibility + Reliability + Intimacy
Trustworthiness =
Self orientation
FIGURE 2.15: ACCA professional quotients
TRUSTWORTHINESS IS THE
COMBINATION OF CREDIBILITY,
RELIABILITY, AND INTIMACY
OVER THE INDIVIDUAL’S
SELF-ORIENTATION.
Trustworthiness is the combination of credibility (the way

that the individual presents themselves); reliability (how
the others perceive the consistency of the individual’s
actions); and intimacy (how safe the stakeholder feels in
being honest with that individual) over the individual’s self-
orientation (their focus on their own perspective or agenda).
So the greater the level of self-orientation the lower is
the individual’s perceived trustworthiness. For the finance
business partner, it is important to build and develop
relationships at a significant level of trust, to become the
true trusted adviser. Effective trusted relationships are built
Source: ACCA (2016)
around the premise of a partnership of equals.
ABOVE ALL, HOWEVER, A finance business partner interviewed said that ‘what
pleases you [is being the] best trusted adviser’, and
THE SUCCESSFUL FINANCE continued, ‘you’ve got to be incredibly careful about how
BUSINESS PARTNER NEEDS you build that relationship. You must do a lot for them and
deliver a lot. And it takes a long time to be able to get
A BLEND OF SOFT AND [them to] come to you for advice rather than just go off
HARD BUSINESS SKILLS. and do something’.
28
Technical and ethical skills can never be enough on their The skills of an effective finance business partner, who is
own. One CFO commented that [a finance business developing trusted relationships, are fundamental to the
partner] was ‘moving from a very pure job description ability to help others make decisions. Cialdini notes that, in
[one based on] personality’. a complex world, people fall back on generalisations when
making decisions. The ability to counter this with insight
One interviewee, a transformation consultant, and analysis is fundamental to the business partner’s role.
commented that an effective business partner needs to
have ‘the real-world real knowledge of the business, so The importance of the finance business partner having a
real practical ability to understand the commercial aspects world view was emphasised by another CFO. He expanded
as well as the practical aspects of how the business works’. upon this need by commenting, ‘I think the challenge in
It is important to emphasise the combination of skills in some of that is there are already business leaders out there
this context. who are quite capable of growing [the] narrative and doing
things [for themselves]. So, what can a finance professional
Influence and the ability to drive organisations to take bring to that? And it has to be a slightly different
decisions and act upon them was frequently cited as a worldview,3 or slightly different perspective. And it’s got to
key skill by the interviewees. Robert Cialdini (1984/2007), be complementary to the business leader.’
a professor at Arizona State University, has noted that
there are six principles of influence: Exploring the attributes highlighted in the survey a little
n reciprocity – people feel obliged to respond in further the respondents were asked to consider which one
mutual interest was most valued by the ‘customer’ of the business partner
(Figure 2.17).
n commitment / consistency – the value of consistent
behaviour in individuals Our responses focused on four key skills and behaviours
n social proof – people look to their peers when that the finance business partner needs to be successful.
making decisions This supports an assertion that the successful individual has
a rounded skill set and does not focus on just one ability.
n authority – people react negatively to commands They need to be flexible and support the organisation’s
n liking – people respond better to those whom they like strategy and goals. In the faster-moving business scenarios
that are developing, either through transformation or
n scarcity – the scarcer something is the more valuable through external events, the need for rapid access to
it is perceived to be. reliable and comprehensive data is evermore paramount.
FIGURE 2.17: What single aspect of business partnering is most valued by the ‘customer’ of the
business partner?
25%
20%
15%
10%
5%
0%
Problem Decision support Knowledge Ability to interpret Project Predictive skills Accessibility of
solving skills of business financial information management the individual
3 The concept of worldview, or Weltanschauung, can be defined as the framework of ideas and beliefs forming a global description through which an individual,
group or culture observes and interprets the world and interacts with it.
29
Focusing on the four most significant aspects there are Finance: A Journey to the Future? (ACCA/PwC 2019) the
variations by geographical region (Figure 2.18) and sector UK and Republic of Ireland show a marked reticence in
(Figure 2.19). evolving the finance function and this may be represented
in these results.
In the UK, the respondents highly valued knowledge
of the business and the ability to interpret financial The respondents who identified themselves as being in
information. This contrasts with Singapore, for example, larger entities focused more closely on decision support
where problem solving was given a much higher ranking than did smaller organisations, where the emphasis was
than in the UK. For both countries decision support more on problem-solving skills. This reflects the variable
is clearly among the most significant factors, though nature of the business partner relationship, according to the
markedly more so for Singapore. As we have noted in nature of the organisation and the challenges that it faces.
business partner?
Four most significant aspects by geographical region
35%
30%
25%
20%
15%
10%
5%
0%
Problem-solving skills Decision support Knowledge of business Ability to interpret
financial information
n United Kingdom n mainland China n Republic of Ireland n Pakistan n United Arab Emirates
n Malaysia n Hong Kong SAR n India n Nigeria n Singapore n Australia
business partner?
Four most significant by sector
30%
25%
20%
15%
10%
5%
0%
Problem-solving skills Decision support Knowledge of business Ability to interpret
financial information
n Accounting n Corporate sector / Financial services n Financial services – small / medium sized
n Financial services – large n Corporate sector n Not-for-profit n Public sector n Shared service centre
30
Data and the finance business partner
The ability to use data to generate insights is fundamental to the role of the finance business partner
in the future. Finance professionals must be more comfortable with working with their organisation’s
data and the technology that enables them to access it. However, that is not the complete picture.
The precondition is to have standardised data with This view of the data needs to expand beyond the
appropriate governance over it and processes to support traditional finance view, however. Organisations are starting
it. Organisations are in different stages of maturity and to model decision-making based around multiple factors
they need to see the value of the data and what you can including the natural capital. This reflects the increasing
do with it. This is a significant change and finance needs demand from society to better understand the implications
to be a part of it. Embracing the concept can be difficult of actions from a business and a human perspective. A
across organisations but especially for those in finance who drive reflected internally increasingly by both the chief
need to shift from a traditional view of reporting to external executive officer and the chief financial officer.
stakeholders to an internal view of generating insights to
support decision-making that is less structured and defined. The challenge for many organisations, and in particular
their finance teams, is that the appraisal of these non-
Finance has traditionally been the primary location in the financial factors is not on the basis of a series of norms
organisation where data has been processed. A lot of the that we have established, rather a series of harder to
traditional experience of working with and analysing data determine indicators such as the amount of plastic that
sits in finance. This makes finance the logical place to drive we bring into the world from a particular process. This
data integrity and standardisation. That is not to say that all is hard for finance teams to determine, however, as this
data should be owned by finance, however it is important form of decision-making becomes ever more important,
for the finance professional to have a wide understanding they need to grasp these variable norms. A failure to do
of the organisation and its data flows. Finance needs to so will leave them marginalised.
be interested in data from across the organisation that
presents trends and shows leading, as well as lagging, This sense of a lack of norms is also reflected in the use
indicators. These need to be included in the performance of artificial intelligence to develop forecasts. As a finance
management processes in the broadest sense. professional you need to gain experience and to develop
a feel for the data. To know what it is telling you.
Organisations may well have data scientists and data
architects whose role it is to bring together and structure At the heart of finance insights going forwards is the
the data. However, the finance professional needs to work ability to believe in the power of the data; to understand
with these individuals; they need to be able to formulate the role to be played in standardising and structuring that
the problem and understand how to use technology to data and to ensure that they embrace the new realities of
access the data and to develop predictions that highlight prediction and decision-making. It is an exciting future.
solutions. They need to be technology savvy. It is always
an interesting discussion; do you educate the finance
team in technology and then organise the data or the
other way round. The probable answer is that you need to
do both in parallel, because as the data and the demand
for insights develops so does the capability of the finance
team to maximise the use of that data and to deliver well- Iris de Jongh,
constructed analyses. Partner, PwC Netherlands
31
Changing importance of finance business partners The expectation was that the business partner role would
Is finance business partnering growing in organisations? increase in importance relative to other roles within the
Market Change is Faster than Ever – Is your Finance finance organisation. The implications of this are explored
Function in the Race? (ACCA/PwC 2016) identifies four in more detail in that report.
potential groups of roles for the finance function of the
future. These represent views of how the finance function For the current survey, our respondents were asked
could potentially develop (Figure 2.20). to consider whether they believed that the role of the
business partner would increase or decrease in the next
Finance: A Journey to the Future? (ACCA/PwC 2019) three years. The results were like those of the previous
considers the relative evolution of these four roles as report (Figure 2.22).
exemplified by the respondents to the survey that formed
the basis of that report and shown in Figure 2.21.
FIGURE 2.20: The finance four-box model FIGURE 2.21: The shifting balance in finance
activities: the finance four-box model – mean scores
Business skills
value adding activities Now
Communicator
Three years
4.4
Communicator Business Five to ten years 4.2
partner 4.0
3.8
3.6
3.4
3.2
Business
The 4-box Scorekeeper partner
Reactive Proactive
finance model
Diligent
Scorekeeper caretaker
Diligent caretaker
Accounting skills
Scale: 0 being Not Applicable,
mandatory activities
1 the lowest priority and 5 the highest.
Source: ACCA / PwC 2016 Source: ACCA / PwC 2019
FIGURE 2.22: Considering business partnering activities across your organisation, do you anticipate that the
role of the finance business partner will increase or decrease in importance in the next three to five years?
50%
40%
30%
20%
10%
0%
Decreasing significantly Decreasing slightly Remaining the same Increasing slightly Increasing significantly Don’t know
or no longer existing
32
Over 78% of the respondents see the role increasing and

most of them believe it will increase significantly. There So, what should I do?
were, however, marked geographical variations when ✓ Create a clear structure for finance that supports
considering the proportion of those who saw it ‘increasing the business partnering and insight agenda, with
significantly’ (Figure 2.23). clear roles defined; educated across the broader
range of value metrics and embracing the six
The response again is most marked in Hong Kong SAR, capitals as a part of decision-making
where the proportion of respondents saying that the role
✓ Appraise the current finance business partner
would ‘increase significantly’ was around half that seen
capability in your organisation against the
among the leading geographical regions surveyed. This
survey results.
aligns with our previous comments on the respondents
in this market, who, perhaps, focus more on traditional ✓ Develop, or review, the role of the finance
industries, where the pace of evolution for the finance business partner as part of the overall finance
community is relatively slow, than on the multinationals function strategy to ensure that it serves
that dominate industry elsewhere. organisational needs.
✓ Appraise the skills of the current finance business

The future of the finance business partner role partners and identify opportunities to develop
The finance business partner role is clearly seen as their skills in line with expectations.
a significant asset to the finance function and to the
organisation that it supports overall. The nature of the role
✓ Finance functions need to develop a constructive
mindset around data, to explore it and play with it,
is evolving from a reactive role focusing on historic insights
be inquisitive and understand the business impact
to a more proactive, decision-support-based role. For
of things rather than force structure, reconcile it to
many organisations, that appears to be a transition that
try and make it accurate.
is currently under way. It is also apparent from the range
of variation in the geographic and sector responses that ✓ There is a need to develop a balanced approach
there is significant variation and differences in the maturity to risk taking. Appreciating that there is not
of this trend between organisations. always a need pinpoint accuracy or does the 80:20
work well enough.
Overall, the trend is clear. Finance business partnering has a
significant and increasing role to play in the finance function
and how it interacts with the rest of the organisation.
FIGURE 2.23: Considering business partnering activities across your organisation, do you anticipate that the
role of the finance business partner will increase or decrease in importance in the next three to five years?
Respondents recording ‘increase significantly’ by geographical region
60%
n United Kingdom
n mainland China
50%
n Pakistan
40% n United Arab Emirates
n Malaysia
30% n Hong Kong SAR
n India
20% n Nigeria
n Singapore
n Australia
10%
0%
Increasing significantly
33
2.5 Finance business partners in a time of crisis was a potential for a refocus of supply chains with
Peter Drucker, a leading management educator, has organisations adopting a more portfolio approach and
said, ‘the greatest danger in times of turbulence is not seeking to source more locally. This has clear implications
the turbulence; it is to act with yesterday’s logic’ (Drucker for manufacturing processes and cost of goods. The
1993). In the finance community, we need to demonstrate disruption that this, and other, impacts will cause as
that we can bring forward new thinking when it matters. resumption gets underway, calls for a greater need
for scenario modelling that is based upon a detailed
The ramifications of the COVID-19 pandemic have understanding of the business model.
been experienced across the business community.
Organisations have faced unprecedented challenges, With their clear understanding of the business model and
both at a local level and on a global basis. While the scale the ability to access data from varying sources the finance
of the disruption faced may well be significant it reminds business partner is well placed to drive the scenario
us that organisations frequently encounter shocks and modelling that is necessary to support organisations in
setbacks, often when they are least expected. The role times of crisis. Working with risk management teams, for
of the finance business partner in the organisation in example, to develop assessments of scenarios upon which
helping to manage the situation has been recognised organisational leaders can base decisions. These embrace
by many of the interviewees as paramount. What scenarios such as changing customer behaviours, funding
lessons can be learned from this experience that have and liquidity and human capital challenges. Times such
implications for finance business partners developing as these place the effective and trusted finance business
and communicating insights? partner at the heart of the organisation.
Several interviewees commented that those accountancy

and finance professionals who play a significant part in
So, what should I do?
managing the situation have a robust understanding
not only of the business but also of the data that could ✓ Exploit the investments in technology and data
across the organisation to maximise their potential.
be used to analyse performance, support forecasting
and assess the impact of government initiatives. A vice- ✓ Support innovative and creative thinking and
president of finance commented that ‘the role becomes reward ideas and appropriate action.
important in the survival of the business in that they have
✓ Identify the technology suite that enables you
to get all these numbers very quickly and accurately’. to model and interrogate the data to develop
scenario models.
As accountancy and finance professionals, we are naturally
adaptable and have strengths that we have to emphasise
at times of turbulence such as these. Our core values of
respecting data integrity and ethics strongly support this. 2.6 Finance business partnering in small
For one finance leader among our respondents, the agility and medium-sized enterprises
of the business partner community in his organisation had While larger organisations tend to have formalised
made the management of a rapidly changing scenario teams and resources devoted to business partnering, it
far more effective than it would otherwise have been had is nonetheless important for the small and medium-sized
circumstances not changed. Finance business partners enterprises (SME) as well. This is reflected in the broad
who understood the business and were able to interact consistency of survey responses between those who
effectively to interpret the changing scenarios had provided identified themselves as working for larger organisations
effective decision support for the organisational leaders. and those who defined their organisation as an SME.
At the core of the finance business partner role is agility, Figure 2.24 compares the two groups to show the extent
which is demonstrated at times of crisis. One interviewee to which finance business partnering is a core part of
commented that ‘the crisis tends to compress timelines each size of organisation. While it has a greater level of
and targets, so that instead of thinking on things, we’ve importance for the larger entities, in the SMEs over half
got [no more than] three months to figure this out.’ indicated that it was either embedded or fundamental
(54% compared with 63% for larger entities).
The finance business partner has a significant role to
play in the recovery phase as organisations emerge The attributes of the business partner in the smaller
from the immediate impact of the COVID-19 pandemic. organisations were also broadly similar (Figure 2.25),
The changes in our economic behaviours may well be with the business strategy and the analysis of current
significant. One PwC partner commented that there performance being the strongest factors for both groups.
34
The challenge for SMEs is to invest enough in both the than before. This can create the opportunity for greater
data and the people skills needed to achieve the level than ever development of these insights. It becomes,
of analysis and interaction required. The advent of more therefore, a question of having the right talent, perhaps in
scalable software applications using cloud technologies, combination with those in other roles, to be able to work
however, means that data is more accessible for this group to generate the strategic insight that is important.
FIGURE 2.24: On a scale of 1 to 5, to what extent has the role of So, what should I do?
the finance business partner become established as a core part
of your organisation at the present time? ✓ Recognise that the mindset able to
generate insight is equally necessary
Small and medium-size vs. large enterprises
in SMEs and in larger organisations
100%
90% n 1 – not a part ✓ For medium-sized entities, it is
80%
n 2 – limited examples important that partnering and
70%
n 3 – provides operational insight are part of the mindset,
support to other areas
60% but they do not necessarily need
of the organisation
50% a formalised structure.
n 4 – embedded in
40% organisation
✓ Develop an approach to insight
30% n 5 – a fundamental
and analysis that yields results for
20% part of decision-making
the SME, accepting that this might
10%
involve external parties, such as
0%
Small and medium-sized Large
a specialist practitioner. This is
enterprises especially true for smaller enterprises.
✓ Use technology and available data

FINANCE BUSINESS PARTNERING to develop a business model that
HAS BECOME ESTABLISHED AS supports business activities, while

accepting that the concept of the
A CORE PART OF 54% OF SMEs ‘digital core’ of the organisation
AND 63% OF LARGER ENTITIES. can involve using cloud-based

applications relevant to this sector.
FIGURE 2.25: Ranking of attributes of finance business partners – 1 = most important and 7 = least important
Mean scores SME vs. large enterprises
n Small and medium-sized enterprises n Large
1.0
Most important
1.5
2.0
2.5
3.0
3.5
4.0
Least important
4.5
5.0
5.5
Analysis of current Resolution of Forward Scenario Board level Problem Business
performance detailed queries prediction modelling support identification strategy
and resolution development
35
36
FINANCE INSIGHTS – REIMAGINED | 3. THE EVOLUTION OF FINANCE INSIGHTS
3. The evolution of
finance insights
3.1 Six hypotheses for the future of finance for the company. We have been doing a lot of different
insights forecasts including cash-flow forecasts for the truly short
To assess the further potential development of the term to see if we need an austerity plan or a regular plan.
finance business partnering activity to generate effective How are [we] going to survive? What …are [we] going
insights with practical applications, six hypotheses were to do next? Or is there anything that we must do [in the]
developed. These represented several potential scenarios interim to maintain our course? Is there any cost cutting
for the development of the finance business partnering that we must do? All these decisions… [are] all related to
activity, and more broadly, the role that the finance finance’. This emphasises the important role that finance
function can play for the benefit of the organisation. insights play in protecting and developing organisations.
The hypotheses were tested with the survey respondents The hypotheses are shown in Figure 3.1.
and with a limited number of workshop participants and
direct interviewees. For each hypothesis, the respondents The hypotheses are not intended to be mutually exclusive,
were asked to assess whether the proposed action was but to represent a range of options for the finance function
occurring now, planned in the short term, would occur in that can be tailored to the individual circumstances.
the medium (3 to 5 years) or longer term (5 to 10 years),
The hypotheses were initially validated through the survey
or not at all.
and then through roundtables and interviews.
A vice-president of finance commented that, ‘When I was
There are variations in the expectation of the likelihood
looking at the six hypotheses, I [could] relate [them] to
that each of the hypotheses will materialise, with half of
the situation that we’ve been going through for the past
the survey respondents expecting that those related to
month [COVID-19], in the role of the accountants
strategic collaboration and oversight of data had already
[in] trying to understand…which subsidies are relevant
FIGURE 3.1: The six hypotheses for the future of finance business partnering
The role of Oversight, Effective Business A failure to Self-service

financial guardianship of business partner roles evolve the skills reporting
business data integrity partners will will be more of the business and the
partner will and standards increasingly commonplace partner will emergence of
become more will be an focus upon than other render the AI and machine
strategic and essential part evaluating finance roles effectiveness learning
collaborative of the role, and predicting as a result of of the role will free up
to support including performance automation obsolete business
operational aspects of non- against the amd process partners and
decision- financial and six capitals; efficiency take previous
making external supporting the responsibilities
across the data as well as organisation’s out of their
organisation financial data overall purpose hands
37
been realised or would be in the short term (Figure 3.2). artificial intelligence and machine learning is the least
Our inference from the responses is that finance insights likely activity, at present. The order below is thus that
are about to undergo a revolution, and that the change of our respondents’ perception of the contemporary
has already started. prevalence of these activities.
The scores from those who considered that finance i. Business partners will offer strategic and
business partnering was a fundamental part of the business collaborative support to operational decision-making
(Figure 2.3) indicated that they were more advanced in the This hypothesis was developed from the observations
adoption of the hypotheses as shown in Figure 3.3. made in Finance: A Journey to the Future? (ACCA/PwC
2019) that finance functions were increasingly focusing on
Below, we explore each of these hypotheses. According forward-thinking analysis. This hypothesis was that finance
to our respondents, giving strategic and collaborative business partners were likely to become more strategic
support to operationalise decision-making is the one most and collaborative across the organisation, moving out
commonly happening now, while self-service reporting, of the traditional boundaries of the finance function into
FIGURE 3.2: Evaluation of the six hypotheses

100%
n Don’t know
n Unlikely to occur
80% n Will occur in five to ten
years (ie longer term)
60% n Will occur in next

three to five years
(ie medium term)
40% n Currently planned
to be implemented/
expected to occur
(ie short term)
20%
n Already happening
0%
Strategic and Oversight, Increasingly focus More commonplace Failure to evolve Self-service
collaborative guardianship of upon evaluating than other finance the skills of the reporting and the
to support data integrity and predicting roles as a result business partner emergence of AI
operational and standards will performance of automation will render the and machine
decision be an essential against the and process effectiveness of learning will free up
part of the role capitals efficiency the role obsolete business partners
FIGURE 3.3: Evaluation of the six hypotheses – comparing views shown in Figure 3.2 with perceptions of
factors considered fundamental to the business
FUNDAMENTAL FUNDAMENTAL FUNDAMENTAL FUNDAMENTAL FUNDAMENTAL FUNDAMENTAL
100%
n Don’t know
n Unlikely to occur
80%
n Will occur in five to ten
three to five years
(ie medium term)
to be implemented/
expected to occur
(ie short term)
20%
n Already happening
0%
Strategic and Oversight, Increasingly focus More commonplace Failure to evolve Self-service
collaborative guardianship of upon evaluating than other finance the skills of the reporting and the
to support data integrity and predicting roles as a result business partner emergence of AI
operational and standards will performance of automation will render the and machine
decision be an essential against the and process effectiveness of learning will free up
part of the role capitals efficiency the role obsolete business partners
38
the business. As the planning, budgeting and forecasting of credit types that were awarded to customers could
cycles become increasingly shorter and move away from give those customers more benefits but also provide
the traditional performance cycles, which involve variance more revenue to the bank. Another cited the example
analyses at set points in the calendar, towards more of a business partner who had addressed the question
real-time data analysis, and the increasing importance of of optimal package sizing in a delivery company and,
decision-making, so this strategic and collaborative role working with those sending the packages, had optimised
grows in importance. the speed at which the deliveries had reached the
customers. These are not finance issues, they are business
Among our respondents, 35% stated that this was opportunities that have real benefit.
already being achieved while a further 21% said that
this was currently planned (Figure 3.2). This confirms the
assessment that the finance functions in organisations Workshop participant observations
are already starting to develop beyond the traditional n What do we mean by ‘strategic’ and
boundaries and are well placed to add greater value ‘collaborative’? The key is the need to earn trust.
through the insights that they provide.
n This hypothesis is true. Does the organisation think
in the same way?
At the heart of this is our assessment of the changing role
of the finance function and how we see ourselves. There
are clear variations across the globe in the responses
(Figure 3.4) but all respondents expect this to be achieved
within the short term. The role that finance plays in making So, what should I do?
operational decisions, especially as organisations move ✓ Identify the value that the finance business partners
to greater customer-centricity and operational focus, is can and should add across the organisation. Their
significant. The function also needs to recognise that its role needs to be embedded in the organisational
stakeholder base is broadening beyond the traditional structure in alignment with the business model
customers of transaction processing and that it is and value should be enhanced by a culture of agile
becoming integral to the business. decision-making.
✓ Recognise the shift to making decisions for areas

Successful insights proactively address business issues. beyond the traditional finance boundaries and how
One CFO of a bank quoted an example where the finance data and insight can drive operational excellence.
business partner had highlighted how managing the range
FIGURE 3.4: The role of the finance business partner will become more strategic and collaborative to support
operational decision-making across the organisation
Responses by geographical region
100%
n Don’t know
n Unlikely to occur
80% n Will occur in five to ten

three to five years
(ie medium term)
to be implemented/
expected to occur
(ie short term)
20%
n Already happening
0%
United mainland Republic Pakistan United Malaysia Hong Kong India Nigeria Singapore Australia
Kingdom China of Ireland Arab SAR
Emirates
39
ii. Oversight, guardianship of data integrity will be an there was a strong claim that it was being achieved now
essential part of the role (35% of respondents) or was currently planned (20%)
The role that the finance community plays in ensuring the (Figure 3.2) with this rising to nearly 80% for those who
integrity of data across the organisation is often debated. believed this would happen within five years.
The Digital Accountant: Digital Skills in a Transformed
World (ACCA 2020a) highlights the important role that There is a clear inference that this is a definite part of the
accountancy and finance professionals, with their strong finance business partner role. For many organisations, the
ethical perspective, can play for the benefit of the convergence of financial and operational data through
organisation. This is grounded in a strong appreciation of integrated applications, often cloud based, is becoming a
the business model and of the data model that underpins reality4 (Figure 3.5).
it, including both financial and non-financial data. This
extends to the information used in integrated reports,
which may be traditionally the domain of corporate Workshop participant observations
marketing departments. n The organisation’s key decision points should
dictate the data over which business partners
In the evolution from ‘big data’ to ‘smart data’, where the should have guardianship. This is industry driven.
latter consists of data that has been processed and is
n Data guardianship is a domain-ownership issue – it
waiting to be turned into actionable information, the
should sit with the person who cares enough that
finance business partner has a key role to play in supporting
the numbers are right.
the generation of insight by ensuring the integrity of the
data and deducing the actionable information from it, while
applying our core ethical values to that data. The advent of
corporate performance management applications (known
as CPMs) that draw on the available data sources to
provide an integrated view of both reporting and planning, ✓ Clean and accurate data is essential for effective
as well as generating visualisations, means that this is a insight generation. Establish appropriate
key area for finance-driven insights. governance over the data in the organisation to
support insight generation.
This hypothesis that the finance business partner has ✓ Invest in data skills for finance business partners,
oversight and guardianship of data integrity was used to enabling them to realise these opportunities and
evaluate the extent of the responsibility that falls to the drive insight.
finance business partner. As with the previous hypothesis,
FIGURE 3.5: Oversight, guardianship of data integrity and standards will be an essential part of the role,
including aspects of non-financial and external data as well as financial data
100%
n Don’t know
n Unlikely to occur
80%
three to five years
(ie medium term)
to be implemented/
expected to occur
(ie short term)
20%
n Already happening
0%
Emirates
4 This concept of the ‘digital core’ is discussed in ACCA/PwC’s report Finance: A Journey to the Future? (ACCA / PwC 2019).
40
iii. Business partners will increasingly focus on At a country level (Figure 3.6), we are starting to see
predicting performance against organisational purpose an increasing emphasis on purpose. In mainland China,
How does the finance function use the data available 83% of the respondents expect to see that within the
to it to report performance? This hypothesis was that next five years the finance function will increasingly focus
the finance function will increasingly focus on a broader on a broader definition of performance. This level of
definition of performance than is currently the case: one confidence shows that the way that organisations are
that evaluates performance not just against a financial starting to see themselves is shifting against the traditional
objective but also across a broader definition more closely measures and they are appreciating how value might be
aligned to organisational purpose and value to society. assessed differently in future.
Of the overall respondents, 21% stated that this was being

achieved now and a further 19% that it was currently Workshop participant observations
planned (Figure 3.2). Cumulatively, 71% said that it would n We need to be collaborative with other groups
be achieved within the next three to five years. This is a across capitals.
significant shift in the role of the finance community.
n How do you develop an appreciation of the other
capitals?
IN MAINLAND CHINA, 83% OF

THE RESPONDENTS EXPECT TO
SEE THAT WITHIN THE NEXT FIVE So, what should I do?
YEARS THE FINANCE FUNCTION ✓ Establish reporting mechanisms across the
organisation that reflect performance from a range
WILL INCREASINGLY FOCUS of perspectives, aligned to the achievement of the
ON A BROADER DEFINITION organisation’s purpose, and measure and reward
performance accordingly.
OF PERFORMANCE.
✓ Encourage a culture of purpose-centric decision-
making that does not focus only on financial return.
FIGURE 3.6: Effective business partners will increasingly focus upon evaluating and predicting performance
against the organisation’s overall purpose
100%
n Don’t know
n Unlikely to occur
80%
three to five years
(ie medium term)
to be implemented/
expected to occur
(ie short term)
20%
n Already happening
0%
Emirates
41
iv. Business partnering will become more are placed at the heart of the business model, the ability
commonplace than other finance roles to provide insight almost in real time is key. For many of
With the increased use of automation across the finance the geographical regions it appears that finance functions
function to perform routine processing activities it could are embracing this transformation but see it more of a
be expected that the balance of activities will shift towards medium-term goal (Figure 3.7). The danger is that if the
those that support insight generation. We tested this finance function does not seize the opportunity if may
hypothesis by asking respondents whether that shift was well be lost.
to be expected. Among them, 19% suggested that this
shift was already happening and a further 19% suggested
that such a shift was planned (Figure 3.2). Workshop participant observations
n As the number of transaction processing roles
The use of intelligent automation tools5 to process
decreases the proportion of business-centric
transactional data is becoming a reality for many
role increases.
organisations. Data capture is now far easier than it
was, no matter what size of business you operate. The n The number of finance business partners will
controls for the capture and validation of that data are depend on success in hypotheses in achieving
also becoming easier to apply. One CFO suggested that greater success with partnering.
he could foresee when data processing, such as ‘procure
to pay’ (P2P), could be undertaken in the operational
department, in an essentially automated manner, with the
finance team having oversight only of the parameters and
exceptions. If this scenario holds, then the expectation
could be that the balance of the finance roles will reshape
✓ Realign the structure of the finance function to
ensure that it reflects the balance of operational
itself. As we saw in Figure 3.2, 38% stated that this
support required by the organisation, also
change has happened or soon will, but this CFO’s line of
ensuring that it reflects the operating structure
argument may suggest that rather more organisations will
of the business.
experience this in the near future.
✓ Invest in automation and process efficiency
In the context of digital transformation and the focus to improve the timeliness and accuracy of the
on the customer journey, whereby the customers and data sources.
how the organisation responds to their requirements
FIGURE 3.7: Business partner roles will be more commonplace than other finance roles as a result of
automation and process efficiency
100%
n Don’t know
n Unlikely to occur
80%
three to five years
(ie medium term)
to be implemented/
expected to occur
(ie short term)
20%
n Already happening
0%
Emirates
5 Intelligent automation tools, including robotic process automation (RPA), are discussed in The Race for Relevance (ACCA 2017).
42
v. Failure to evolve skills will render the role obsolete

As has been discussed previously in this report, the skills of Workshop participant observations
the finance business partner in being able to understand n How do you make a graduate trainee a
the business, the economic environment in which it sits, business partner?
and the story that the data presents are key. These are not
n The challenge is for business partners to
just technical accounting skills but also the so-called softer
understand how they can add the most value
skills of empathy and communication, for example.
and develop soft skills.
Of the respondents 17% said that failure to evolve

appropriate skills was already a threat that they were
countering and 15% said they were planning to work on
improving skills in future (Figure 3.2), with 55% seeing So, what should I do?
that within five years the role would be obsolete without ✓ Invest in the development of the finance function
appropriate skills development. The results suggest a to ensure that the correct balance of technical and
strong indication that that there is a positive expectation softer skills is being developed.
for the role but one where investment is needed.
✓ Create and implement career paths that reflect
the need to develop the future skills needed by
The importance of continuing to develop the skills and
the function.
protecting that development is recognised by most
respondents, although those who expressed an opinion of
‘don’t know’ or ‘unlikely to occur’ might not recognise that
anything is needed. The clear message from the survey
responses is that there is a need to invest in the skills of
the finance business partners. The geographic differences vi. Self-service reporting, artificial intelligence and
between the respondents shows that this investment may machine learning will free business partners from
be greater, and happening sooner, in some countries than previous responsibilities
others. The danger of a failure to invest may well be that For finance business partnering to be effective, data and
insights are not derived at times most needed. information must be used to help drive the generation
of insights. This hypothesis focuses on the reality of the
The skill set that needs developing is broader than just technological revolution in finance and how it might assist
accounting skills (this is discussed further in Chapter 4). the finance business partner.
FIGURE 3.8: A failure to evolve the skills of the business partner will render the role obsolete
Plans to counter this by geographical region
100%
n Don’t know
n Unlikely to occur
80%
three to five years
(ie medium term)
to be implemented/
expected to occur
(ie short term)
20%
n Already happening
0%
Emirates
43
About 60% of respondents (Figure 3.2) believe that self- future development of finance business partners, enabling
service reporting will free up business partner time and take them to focus on the underlying narrative.
some responsibilities of their hands within the next five years
– for 28% this is already happening or soon will be. Clearly A CFO commented that ‘the most fundamental thing is
this is an area where the finance function needs to become data. It is how the data is managed, how the data is used,
more involved. It is a compelling case for aggressively how the connected different data sets are integrated
redesigning the role to ensure that organisations take around your organisation, to be able to provide the
advantage of this and that the finance partner can deliver insight. I think the accountant, the finance person, can be
the insights demanded by stakeholders. There is a need the leader and …be able to navigate the data around the
to monitor and take advantage of the developments in company. But [the important thing is] also making sure
technology, especially those concerning data queries and that [you have] data that you can actually rely on.’
insights. The finance business partner is redefined as the
person who provides analysis and interpretation of the
data derived from self-service reporting. Workshop participant observations
n As a result of self-service reporting, users may
Broadly similar patterns again emerge across geographical take a very introspective view of their
regions, although Singapore recorded a lower initial organisations. Business partners can challenge this.
evaluation but suggested a greater progression in the
coming five years. The Singapore result is particularly n Self-service tools will not replace business partners
– knowledge, experience and interpretation are
interesting, given the focus on technology in that economy.
still needed.
For many organisations, the data pack of a myriad reports
is becoming a thing of the past. It has been replaced by
data visualisation tools that enable the drilling down into
data to reveal underlying causes. In the customer-centric
and fast-moving world, we require that level of analysis. ✓ Develop and implement a technology strategy
With the advent of artificial intelligence (AI) and machine for the finance function, as part of the wider
learning6 tools, some embedded in critical path method organisation, that provides access to robust data
sources and the appropriate visualisation.
applications and capable of developing initial narratives
from trend data, the ability to close processes more quickly ✓ Invest in the analytical skills of the finance function
than with the use of previous applications, the potential staff so that they can take advantage of the data
for near real-time decision-making is being realised. Data available to them.
and technology will clearly have a significant impact on the
FIGURE 3.9: Self-service reporting and the emergence of artificial intelligence and machine learning will free
up business partners and take previous responsibilities out of their hands
100%
n Don’t know
n Unlikely to occur
80%
three to five years
(ie medium term)
to be implemented/
expected to occur
(ie short term)
20%
n Already happening
0%
Emirates
6 The concept of machine learning is discussed in Machine Learning: More Science than Fiction (ACCA 2019).
44
3.2 Barriers to evolution haven’t given them an instruction manual on how to use
The respondents were asked to select from a list it’. The finance business partner needs to have a broad set
those factors that that they thought would be barriers of technological skills, being concerned not just with the
to the evolution of business-partnering relationships in applications themselves and how to derive insight from
their organisation. data but also with how to optimise the use of technology
for business advantage.
The lack of clarity in the role ranked highest among the
top three selected barriers that the respondents were Another commentator noted, however, ‘there seems to be
asked to evaluate. While many accountancy and finance this unhealthy obsession [among] finance and accounting
professionals have a broad understanding of the role of people [with] technology. Finance business partnering is
the business partner, the extent of its precise nature and about initially producing a dashboard, then, how you take
responsibilities clearly varies between organisations. While that information, and then bring it to your organisation
this of itself may not be problematic, the question arises as and start to influence [it].’
to what happens when there is a lack of clarity about what
a stakeholder should expect from a business partner. It may Of interest, in comparison, is that data governance and the
well be that a lack of clarity about the role stems from the inability to access external data were rated among the top
perception that the finance professional is too historical in three barriers by fewer than half of the numbers of those
focus and not forward thinking (the second-highest-ranking who identified ‘lack of clarity’ and ‘lack of forward-thinking’
factor). This lack of clarity also suggests a cultural issue. as major barriers. This may, in part, be not because they
Many of those interviewed commented that the key to lack significance but because of their relative priority
successful insight was the culture of the organisation: the among the barriers that the respondents could potentially
ability to be agile and to encourage collaboration across select (each respondent could choose only three).
departments and teams. The effective finance business
partner needs to be the ultimate agile collaborator.
In combination with the lack of clarity, technology is,
✓ Establish a clear role that finance plays across the
unsurprisingly, also a significant barrier. The ability to organisation, including promoting a positive culture
access, understand and analyse the organisation’s financial by providing relevant insights.
and operational data is key to the success of the finance
business partner. In practice, such access, understanding ✓ Promote an agile culture across the organisation.
and analysis are only useful if the organisation has an ✓ Identify and remedy technology and data
agile culture and can use what is learnt to respond to the weaknesses in the organisation, focusing on the
need to make customer-centric decisions in real time. data sets necessary to create customer value by
One commentator noted ‘It’s like you’re handing them yielding useful insights.
[the finance business partner] a metal detector, and you
FIGURE 3.10: Which, if any, of the following do you believe currently represent barriers to business partnering
relationships being as effective as they could be in your organisation? Select your top three.
50%
40%
30%
20%
10%
0%
Lack of clarity Too historic, Poor Lack of Lack of Silo Cost demand Inadequate Inability None of
of role in not forward technology effective skills of structure precluding data to identify the above
organisation thinking stack decision- finance investment governance external data
making professionals
45
46
FINANCE INSIGHTS – REIMAGINED | 4. THE FUTURE VISION?
4. The future vision?
4.1 Re-evaluating performance If organisations, partly as a result, correctly come to

What if we need to rethink the paradigm of operational focus on the achievement of purpose, on their impact
performance? As has been discussed in Chapter 1, if on society, then we need to start to measure economic
organisations increasingly focus on the attainment of value as well as financial value in our scorecards and
purpose rather than pursuing a pure financial motive performance measures. We need to develop ideas and
then how should a finance business partner seek to benchmarks that take us beyond the traditional planning,
assist organisations in developing an appropriate set of budgeting and forecasting cycle into a more dynamic
performance metrics? world of data and forecasting.
One Australian CFO placed the issue of performance in A CFO of a large bank in Africa commented, ‘I think for
context: ‘Who defines performance? We’ve tended to you to be an effective business finance partner, you need
focus on the profit motive because the finance profession to effectively understand the business, which is something
has defined that and it’s fairly easy to measure. One of which [finance business partners] do well and better than
the great joys of being an accountant is knowing where [those on] the financial controls side.’
every dollar is, I don’t have to go around trying to define
it. There’s no argument about [it]: you’ve either got what Below, we consider the concept of redefining performance
happened [or you haven’t], it’s easy to count. In principle management to address this new agenda. To start this
everything comes back to the dollar, which is a proxy for process, we need a framework by which to measure
the resources you expend. It can be asymmetric in some ‘performance’. As a proxy for this, the six capitals of the
of these areas with some of the resources you use. It could Integrated Reporting framework have been used.
be terribly costly for the planet or for the environment
or any of the rest [but it] will be quite cheap in terms of
money –some ways that our valuation systems [have] gone
WE NEED TO DEVELOP
wrong to some extent’. IDEAS AND BENCHMARKS
The same CFO reflected on our potential re-evaluation
THAT TAKE US BEYOND THE
of needs and performance after the disruption from the TRADITIONAL PLANNING,
COVID-19 virus. He commented that, as a society, we BUDGETING AND
may well focus more on our personal needs. Citing
Maslow’s Hierarchy of Needs,7 he suggested that as FORECASTING CYCLE INTO A
individuals, and therefore as organisations, we may well MORE DYNAMIC WORLD OF
come to focus more on survival, which is not an entirely
financially driven metric.
DATA AND FORECASTING.
7 In his 1943 paper, ‘A Theory of Human Motivation’ published in Psychological Review, Abraham Maslow (1943), defined a pyramid of human needs, from
‘physiological’ at the bottom, through ‘safety’, ‘belonging and love’, ‘social needs’ or ‘esteem’, to ‘self-actualisation’ a the top, to describe the sequence through
which he argued that human motivations generally move.
47
4.2 The six capitals of the Integrated Reporting In her book Six Capitals: The Revolution Capitalism
<IR> framework Has to Have – or Can Accountants Save the Planet?,
The six capitals were developed by the International Jane Gleeson-White (2014) describes each of the capitals,
Integrated Reporting Council (IIRC) in 2013 as a as shown below (Table 4.1).
representation of the of the ‘resources and relationships
used and affected by an organisation’ (IIRC 2013). The IIRC Gleeson-White describes how the capitals can be seen
explains the capitals in a framework document as follows. as representing the economic value to an organisation,
accepting that measuring that value is often a challenge.
ALL ORGANIZATIONS DEPEND ON VARIOUS
FORMS OF CAPITAL FOR THEIR SUCCESS. IN One senior finance professional commented that
THIS FRAMEWORK, THE CAPITALS COMPRISE accountants in business need to develop their skills in:
FINANCIAL, MANUFACTURED, INTELLECTUAL,
HUMAN, SOCIAL AND RELATIONSHIP, AND n obtaining better-quality information
NATURAL… ORGANIZATIONS PREPARING AN n making better-quality measurements, and
INTEGRATED REPORT ARE NOT REQUIRED TO
n generating better-quality reporting.
ADOPT THIS CATEGORIZATION.
THE CAPITALS ARE STOCKS OF VALUE Each of these may present challenges but the finance
THAT ARE INCREASED, DECREASED OR professional’s essential skill set means that these can
TRANSFORMED THROUGH THE ACTIVITIES be overcome.
AND OUTPUTS OF THE ORGANIZATION. FOR
EXAMPLE, AN ORGANIZATION’S FINANCIAL
CAPITAL IS INCREASED WHEN IT MAKES A
PROFIT, AND THE QUALITY OF ITS HUMAN
CAPITAL IS IMPROVED WHEN EMPLOYEES
BECOME BETTER TRAINED. (IIRC 2013)
TABLE 4.1: The Six Capitals of Integrated Reporting
CAPITAL DEFINITION
Financial
The funds available to an organisation to produce goods or provide services. These funds are sourced
through debt, equity or grants, or generated through operations and investments.
Manufactured
Manufactured physical objects available to an organisation to produce goods, or provide services,
including buildings, equipment, infrastructure (such as roads, bridges, water-and waste-treatment plants).
Intellectual Knowledge-based intangibles, including intellectual property, such as patents, copyrights and software,
rights and licences; ‘organisational capital’ such as systems and protocols; and ‘tacit knowledge’
(knowledge of the business that is held by employees and managers but that is difficult to communicate).
Human People’s skills, abilities, experience, motivation, intelligence, health and productivity. It includes their support
for an organisational governance framework, risk management approach and values; their understanding of
an organisation’s strategy and the ability to implement it; and their loyalty and ability to lead and collaborate.
Social and This category includes institutions and relationships within and between communities, stakeholder groups
responsible and other networks; shared norms, common values, and behaviour; trust the organisation has fostered,
brand and reputation; and an organisation’s ‘social licence to operate’.
Natural All renewable and non-renewable environmental resources and processes that provide goods and services
that support the organisation’s past, present and future prosperity, including air, water, minerals, forests,
biodiversity and ecosystem health.
48
4.3 Using the six capitals for performance One CFO commented that we should not forget the
reporting lens through which organisations increasingly focus: the
An interviewee commented that ‘the first two – the one directed at the customer. He commented that his
financial and manufactured capitals – are reasonably well organisation focuses on the customer: ‘because everything
understood and grasped by finance and [are the objects that we’re doing…has to be customer focused. I think that
of] a good focus from finance professionals. And the they’re interesting concepts, these capitals, but they’re not
others, it is an organisational thing and where that should necessarily the capitals that are the things that are front
sit rests with senior management downwards to set the and centre of how I manage my business from a day-to-
tone and to try and raise the importance of these’. day perspective. There are some interesting elements…
that I could consider using but [they] wouldn’t be my set of
Another interviewee, a CFO, commented that the <IR> guiding principles.’
approach is an opportunity for the finance function
because the capitals support our lives but, to benefit from
it, accountants need to be prepared to take on a wider ONE CFO COMMENTED
role across the business’. THAT WE SHOULD NOT
A CFO working in Canada commented, ‘the rate at which FORGET THE LENS THROUGH
the organisation [adopts the six capitals will] vary from WHICH ORGANISATIONS
company to company dependent upon the country where INCREASINGLY FOCUS:
they operate. The framework points are good, but they
may not be applied in the same way everywhere, because THE ONE DIRECTED
for example, human capital, may be differ in third world AT THE CUSTOMER.
countries and developed nations and the natural also may
not be given much importance in every place.’
49
Current appreciation and finance professionals will become more involved

Looking at the current appreciation of the capitals we and that finance business partners will play a role in this.
see, with the obvious exception of the financial capital, Interestingly, the natural capital remains the capital with
a picture of partial involvement (Figure 4.1).There is a the lowest scores for involvement, although it nears the
recognition that the accountancy and finance community level of the manufactured capital if we take the aggregate
needs to think more broadly than just about the financial of those who think that the finance business partner should
capital. Perhaps surprisingly, natural capital has the lowest be either fully or partially involved (62% versus 64%).
ranking of all for accountants’ engagement. Given the
recent emphasis on the impact of climate change on There is a clear message, though, that it is appropriate
businesses this is an interesting response. Organisations for the finance business partner to be more involved
may have created their own sustainability functions but, in reporting performance beyond that of the financial
given the immediacy of this issue, the challenge is clear. capital. The question for many of our interviewees was the
practicality of this.
In three to five years – the medium term
Figure 4.2 shows the respondents’ assessment of the Considering those who stated that business partnering
same question but in the medium term (three to five years activities were a fundamental part of their business (Figure
hence) while Figure 4.3 shows the comparison between the 2.3 – 37%) against the total population of respondents
present and expectation for the medium term. In all cases we see that, as with the evaluation of the hypotheses, this
there is an increase in the expectation that accountancy group is already starting to progress along this path.
FIGURE 4.1: What is the finance professional’s role, including that of business partners, now in your
organisation in evaluating each of the following six capitals?
n Fully involved n Partially involved n Basic contribution n Not required n Don’t know
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Financial Manufactured Intellectual Human Social and responsible Natural
FIGURE 4.2: What do you think will be the finance professional’s role, including that of business partners, in
the next three to five years, in your organisation, in evaluating each of the following six capitals?
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
50
4.4 The capitals evaluated

So, what should I do? The ability to understand how a framework can be
✓ Optimise business processes to exploit collection constructed for performance reporting is perhaps one
of data both operational and financial to support of the most significant challenges in understanding the
insight generation and decision-making based operational context in which the finance business partner
across the range of capitals. must align themselves to organisational purpose. The
✓ Instigate a performance management approach following comments from subject experts outline how a
that thinks broader than financial return and aligns performance measurement approach might be developed
to organisational purpose. for each of the capitals.
✓ Review the approach to scorecard measurement

of performance and align processes to reflect
customer centricity and value creation.
FIGURE 4.3: Comparison of assessment of capitals between the present and in the medium term
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
PRESENT MEDIUM PRESENT MEDIUM PRESENT MEDIUM PRESENT MEDIUM PRESENT MEDIUM PRESENT MEDIUM
TERM TERM TERM TERM TERM TERM
FIGURE 4.4: What do you think will be the finance professional’s role, including that of business partners,
in the next three to five years in your organisation in evaluating each of the following six capitals?
Comparison of those whose business partners are fundamental to the business with responses from the overall population
n Fundamental part n All respondents

100%
80%
60%
40%
20%
0%
51
Financial
If finance business partners in the future just continue to focus on narrow definitions of financial capital,
then they will be marginalised in their organisations. The traditional narrow approach does not reflect
the realities of business nor an understanding of how businesses create value in today’s environment.
We have traditionally been focused on a world where different form of decision-making that does not solely rely
we need to account based around a balance sheet, but on a financial return but includes softer factors that are
the reality is that the business models are changing harder to measure. It has more assumptions embedded
and purpose, as well as profit, is increasingly important. in it; these assumptions are based on subjectivity. The
Access to clean data and analytics tools provide the ability financial impact is now increasingly governed by other
to assess decisions in a more sophisticated way. At the elements, the long-term sustainability of the organisation,
same time the market is coming to expect organisations for example. The macro elements of these funding
to have and use these capabilities. By not responding and decisions are increasingly based on impact to society
sticking to short term profit focus organisations risk being need to be brought down to the operational level too.
seen as not responsive to the changes in society.
Many of our decisions have longer term implications.
Organisations need to get a better understanding of Traditionally the financial capital has been focused on short
value and how it is created, protected and generated for term horizons, understanding last month, or predicting
the longer term. It is possible to put something out on next. The reality is that as the implications of decisions
social media and destroy value quickly. The COVID-19 taken shift to the longer-term alignment to organisational
responses of organisations will linger long in the memory purpose and impact so must the horizon of the financial
influencing customer behaviours and impacting loyalty. capital. The decisions taken today have an impact in
Financial capital is no longer something that we can see ten or more years in ways that we are just starting to
in isolation. The skilled finance business partner is able to appreciate. As finance business partners we need to
combine these capitals and develop the holistic picture. embrace this longer-term perspective. It is imperative to
make organisational leaders understand this perspective.
In this changing world customers may choose to go
elsewhere if they do not like the decisions an organisation Increasingly finance business partners need to understand
makes. Investors will consider the broader capitals even and connect all the capitals around this financial capital
if finance doesn’t and invest elsewhere. Talent may not not only from an input, but also from an outcome
choose to work for organisations which take a short- perspective in terms of what they measure. There is a
sighted view of profit. It is important to recognise this in need to have access to the right people with the right
the way that we appraise decisions. Organisations need skills and behaviours. The right data is a necessity and
to look to invest in the outcomes that they want, how access to it is important and this requires the right
these decisions add to the societal good. You cannot just systems in place. The level of accuracy of that data needs
consider the return on investment and let that determine to be governed by the decision-making itself not by a
your decision. You need to consider more broadly the drive to have everything 100% accurate.
impact. This can be uncomfortable as it requires a
Helena Clennell, Jamie Lyon,

Partner, PwC United Kingdom Portfolio Lead, ACCA
52
Manufactured
The manufactured capital of an organisation is often the engine room for growth. It is where things
get done to produce assets that go on to derive value in some form, either to be sold as products or to
segue into another part of the organisation.
Historically, finance has played a role in areas such as level; in this changed environment we increasingly need
understanding the stock provision, valuing assets or to embrace more detailed, operational level modelling
measuring time on production. It has not seen itself as so that we can develop the appropriate strategies.
responsible for unlocking further value from these assets.
The next technological step in expanding the scope
As with the other capitals, the scope of manufactured of manufactured capital is the smart factory. There are
capital is evolving, and finance business partners need to examples already in place, but some countries are slower
respond to this change. in adoption than others. Leveraging the technologies
at the heart of the Internet of Things, digitally enabled
If you consider where most of the conversation was manufacturing processes enable processes to be
arising from PwC’s CEO survey in 20208, it was around optimised and supply chains to be completely connected.
the implications the Net Zero organisation. This is really This is another level of sophistication and data flow that
challenging for every organisation. It is not just about how results are ones that the finance business partner needs
you run your own buildings and whether you can travel, it to embrace. It is important that we understand the early
is about your whole supply chain and whether that supply warning signs that the data offers us; where supply chain
chain itself demonstrates a Net Zero carbon position. As bottlenecks are likely to occur; where alternative sources
a finance business partner considering the manufactured of supply can be obtained, for example. As organisations
capital you need to consider the impact of the whole themselves transition into more complex value creation
value chain of the organisation. models, such as power by the hour, so the finance
Product costing and cost management are important business partner needs to recognise the implications on
elements of manufactured capital. It is important to fully business decisions and to develop more sophisticated
understand the constituent parts that form products. A lot decision-making approaches than the traditional
of organisations are embracing the data driven strategy, techniques such as business case evaluation.
digital transformation. As a finance business partner, you Finally, the finance business partner needs to recognise
need to appreciate and be able to evaluate the implications the complexity of the emerging manufacturing world.
of, for example, the organisation’s supply chain choices. In most organisations you would have analyses split by
It is possible that as organisations emerge from the country, region or product. Now we need to visualise
COVID-19 lockdown we will see significant product multiple dimensions and the ability to thread these
rationalisation. The finance business partner needs to together into a compelling narrative that embraces the
understand the, say, 20% of products that are driving changing manufacturing world is paramount.
profitability and where they are in their lifecycle.
Understanding, and being able to model, the cost of
goods sold for these items and how this is reflected in the
trade-off between the profit and the sustainability agendas
is essential in restoring business performance. This Richard Wyles,
modelling has traditionally taken place at an aggregated Partner, PwC United Kingdom
8 Navigating the rising tide of uncertainty – 23rd Annual Global CEO Survey. PwC 2020
53
Intellectual capital
Intellectual capital is emerging as a key asset for organisations. In the industrial revolution we saw
human capital being replaced by manufactured capital. Now we are seeing human capital being
replaced by intellectual capital, as software-based cognitive capital comes to the fore.
Organisations are increasingly generating value from the value of a good or service). In these cases, we need to
intellectual property that they possess or have access to. understand that paybacks can be non-linear. There is
These effects have been around for some time, but they often a minimum level of usage which a product needs to
are growing in importance and the range of categories reach to achieve stability and become self-sustaining (eg
of intellectual capital is expanding. There are three internet search, games consoles, or card payments). The
main pillars in the technology world that are facilitating value of each customer acquired during this ‘race to the
the expansion of this type of capital into the broader tipping point’ therefore assumes an additional importance
economy – mobile, cloud and artificial intelligence. As over and above the additional revenue they generate. This
finance business partners we need to understand and contrasts sharply to a traditional linear model. As a finance
embrace these trends. business partner, you need to recognise not only the
traditional model with an economic break-even volume but
Traditionally, intellectual capital was considered to consist increasingly the importance of the ‘tipping point’ volume.
of intellectual property, patents and copyrights. These The latter is often higher than the former, which may leave
items were seen as having intrinsic value that could often later entrants struggling to achieve market share.
be recorded on the balance sheet through goodwill (in
the case of acquired IP) or the capitalisation of R&D In assessing intellectual capital, the finance business
costs. In recent years, however, data has emerged as an partner needs to understand how these dynamics have
increasingly valuable source of ‘intellectual capital’ across changed the traditional business model. The value of
a wide range of industries. In some cases, this asset is intellectual capital is growing in importance for many
created in-house, in others it is bought or ‘gifted’ to you organisations and decision-making needs to evolve to
(for example, by your customers) in exchange for another encompass it. In network effect industries, the assessment
service. In many cases it has no book value on a traditional of value is further complicated. The measurement of value
balance sheet. Yet it is fundamental to the delivery of in these environments can be extremely dynamic and
commercial value to customers. does not always lend itself to excessive precision. Rather
we achieve it by robust analysis and scenario modelling.
Through the intelligent analysis of this data we can
generate behavioural capital, the insight into the Finance business partners need to understand the
customers and entities that we do business with and how business models that entrepreneurs are utilising and
they behave. In addition, AI and automation technologies apply a rational mindset to that model. Using more data
allow many companies to enshrine traditionally ‘human’ with better analytics to effectively allocate capital across
tasks within software models and routines (e.g. sales different investments is essential.
forecasting, the analysis of text documents or ‘digital
twin’ simulations) – we may term this cognitive capital. Intellectual capital is clearly particularly important
We can increasingly use these capabilities to create a in today’s business environment. If you, as a finance
substantive and identifiable asset that captures human business partner, do not understand how it derives value
insight, wisdom, and expertise. This is becoming one for organisations then you have a blind spot. You are
of the most important value drivers for organisations at potentially leaving stones unturned.
present and the need to recognise, capture and measure
its value is important. The boundaries of intellectual
capital are expanding beyond their former norms.
Many business models that rely on intellectual capital

also experience network effects (those whereby increased Euan Cameron,
numbers of customer or suppliers improve the overall Partner, PwC United Kingdom
54
Human
As businesses transform the human capital, the people capability of the organisation, is very much in
focus. The investment in people, in their skills and technical capabilities, has become an important
element in business model transformation.
The COVID-19 pandemic has sharpened this focus. The second is how far, as an employer, you are willing
The impact presents a positive opportunity, however. to change. Operating models are becoming more local,
Operations have been fundamentally changed and the or global, depending on the relative merits of flexibility
assumption that a significant proportion of the workforce versus consistency for an organisation’s competitive
cannot effectively work from home has been disproved. A advantage. There is an appetite to do things differently at
hypothesis that, perhaps, till now, nobody was willing to try. present. This may be a short-term phenomenon, or it may
last longer. But it is an opportunity to be radical and make
In the longer term this will lead us to a different approach some bold decisions, in the right context. These changes
to sourcing talent, one that does not rely on physical can have positive impacts. Changes to mindset and culture
location but will enable us to access it wherever it may are required into order to achieve success. In turn this
reside. For the finance function, for example, it no longer requires a collaboration between the human resource (HR)
means working in one location on a permanent basis, and finance teams to provide insight on the effectiveness.
rather it is a more agile way of working. It will mean a more
fluid and inclusive workforce where we are able to access The third is trying to get away from security in the form
a broader range of society who may traditionally have had that we have known it. We have traditionally looked at
limitations on their access to employment. This presents a jobs and tenure as a form of security. We now need to
tremendous benefit for society overall. The human capital reappraise how we acquire the necessary skills. This may
is coming more to the fore in decision-making. be from a different combination of people who may work
either remotely or in some other form; utilising
We do, however, need to be cautious of the productivity technology to service the needs. This may also be in
implications of these shifts. If you are opening forms of collaboration between organisations that we
opportunities for more people, it needs to be done in way have not seen before.
that adds value to organisations and to society.
The importance of the human capital challenges the
At present we see organisations focused on the short- traditional back office model where we might assume
term reskilling of the population rather than the longer- that it is the domain of the human resource community.
term return on investment. Reskilling, after all, can have It is important that all these central functions work in
a three- to five-year payback period. In the longer term partnership, accessing common datasets and appraising the
we need to be more robust in our business case for situation in similar manners. The transformation of the back-
change by embracing the human aspects in ways that office functions in the organisation in the cost constrained
we have not previously envisioned. environment that we will see needs to hasten this.
There are three lenses through which to assess the As the design of the organisation changes to be more
reforming talent agenda. flexible in its human capital component we need
The first is to look at talent acquisition in a different to develop new ways of measuring performance,
way. The decisions that organisations are making around productivity and assessment. From a business strategy
talent will change their reputation, potentially for a perspective, it is also about HR and finance working
long period of time. There is an increased focus on in partnership to model different organization design
geographic concentration risk, for example. What options, at both operating model level and at detailed job
happens if all our functions are placed in one location and process levels. This requires the ability to associate
that becomes vulnerable? measures of performance/productivity against this
55
Human
(does the organisation operate as it was designed to do, As finance business partners the human capital is
with work done and decisions made at the right level?). fundamental to our view of decision-making and business
This is work of organisation design how the financial and performance. It needs to be embraced in new, inclusive,
process implications need to be addressed in partnership. ways and be at the centre of the process.
Andrew Strowger,
Chris Box, Global Culture & Engagement Director,
Partner, PwC United Kingdom ACCA
Social and responsible
The social lens is increasingly important. Increasingly as millennials come into the workforce the
number one factor that they are looking at is what the organisation stands for. That is not to say that
pay is not important to them, but they appraise organisations differently to those who entered the
workplace, say, ten years ago.
Organisations need to understand that their responses example, as the value to society of our actions is ever
to the COVID-19 pandemic will influence people’s more closely scrutinised. The data to tell this story is
perceptions of them, for better or worse, for a significant principally that which the finance business partner is
period. Organisations need to be seen to have done conversant with. This data includes unstructured data,
the right thing to sustain the value that they create. such as social media sentiment, that provides context to
Finance business partners should be keenly aware that the narrative and demonstrates how the messages are
the social and relationship capital are closely interlinked being understood by customers and influencers in the
with the other areas of human and natural capital, for context of the value added.
Andrew Strowger,
Chris Box, Global Culture & Engagement Director,
Partner, PwC United Kingdom ACCA
56
Natural
If we think about the bigger picture on climate risk and biodiversity, we have just a ten-year window
to get on top of these issues. The profession needs to get to grips with understanding its dependencies
and impacts on nature.
It is not just a disclosure issue but one which finance Developing this level of understanding can push the
teams as a whole need to grasp as decisions made now sustainability agenda forward by translating these targets
will impact financial disclosures later. Business models into actions and, hence enhancing the visibility.
are changing, and we have a chance to put sustainability
and natural capital at the centre of the agenda. It is an n Do you understand the climate impact and risks and
opportunity that we cannot afford to miss. are able to establish appropriate governance?
Organisations need to understand how exposed they are n To what extent is your business exposed to a world of
to the different dimensions of the natural capital and the 2 degrees of warming? Appreciating this both from a
impacts on it. A tightening of any of these components physical side (for example, flooding) and a transition
of the capital can have a negative impact on the business side (for example, regulatory change).
model. Understanding this as a first step is fundamental n To what extent are you aligned to make the most of
and tools such as the Natural Capital protocol8 provide
the opportunities (for example, low-carbon customer
you with the decision-making information you need.
preferences)?
As finance professionals, we are comfortable with the
concepts of accuracy, completeness and validity and n How will the changes in the natural capital impact on
these concepts need to be applied to the data that the business model?
provides indications of our response to climate change.
n What risks do you face as a result?
From a disclosure point of view, the metrics, such as
n What opportunities are you missing?
those from the Task Force on Climate Related Financial
Disclosures (TCFD), need to be interpreted to understand The basis of decision-making needs to change to embrace
where you wish to set the bar. Knowing an organisation these questions. The economic cost of using resources
performs against them is especially important in setting to produce items is often not the transactional cost.
the direction and achieving the strategic goals. Using Consider, for example, the implications of carbon dioxide
Science-based9 targets, carbon reduction targets aligned (CO2) emissions in production processes where carbon
to global climate agreements, can help ground an offsetting is no longer a sustainable action. Our decisions
approach, agree to an organisation-wide commitment and may be different if we truly use the sustainability lens
enable you and your finance team to build the processes and what was once radical, becomes the common-sense
needed to achieve it. With the increased focus on value strategic objective.
and purpose from customers and employees, amongst
others, we need clarity.
8 https://naturalcapitalcoalition.org/natural-capital-protocol/
9 https://sciencebasedtargets.org/what-is-a-science-based-target/
57
Natural
Perhaps a fundamental context to this is the changing The change from capital to revenue intensive alters the
approach that lenders, be they public or private, are taking basis of the traditional cost-benefit analysis.
to the sustainability agenda. Most investors are changing
their portfolios to companies that can demonstrate an There are examples of organisations who have embraced
approach to sustainability. Those that are complying the natural capital. One food production company
with environmental, social and governance (ESG) criteria has done this because they recognise that they are
and can demonstrate in a meaningful way what positive significantly exposed to climate change and weather. They
impact they are making to achieving the UN’s Sustainable understand that they have not just to develop a greater
Development Goals. Whilst increasingly the boards of level of precision in their accounting, but to embrace the
organisations are embracing these factors, we are starting economic values as well as the traditional costs.
to see how this can be cascaded down through the
At the core is data. Understanding what data is required,
decision-making process. Understanding how these goals
where it can be sourced from, how robust it is and how
need to be implemented and the potential cost / benefit
it can be correlated to other sources is important. These
impact of necessary natural capital measures.
are core skills for the finance business partner. It is also
Another factor that needs to be borne in mind is the about collaboration across the organisation. This is one
development of the collaborative economy. Whereas issue where collaboration across teams is essential and
organisations have traditionally created parallel the finance role in supporting all departments places
infrastructures, each preferring to control their own them at the centre of this. The World Economic Forum,
assets, now we are seeing increased collaboration, often in conjunction with PwC and the other Big 4 accountancy
in part, for environmental reasons. This enables them to firms, has developed guidance on consistent reporting of
offload their expensive assets. As finance professionals sustainable value creation (World Economic Forum 2020).
we need to be able to model these more collaborative
Finance business partners can save the planet and build
structures but also to recognise the societal benefit
brilliant and resilient organisations that are ready for
of them. The development of more service-based and
the future.
circular business models, of which this is an example,
has significant changes in how we appraise investments.
Eu-Lin Fang, Jimmy Greer,

Ayla Majid, ACCA Partner, PwC Head of Sustainability,
Council Member Sinagpore ACCA
58
data that originates beyond their traditional boundaries

So, what should I do? but also to become comfortable in interpreting
✓ Ensure that you have a clearly defined purpose for and analysing performance on a broader agenda,
the organisation that encompasses the value to understanding cross-correlations between data sets.
society that it plans to achieve.
To do this they need to use more analytical tools and
✓ Map this against the relevant capitals to determine techniques to develop possible future scenarios and
how the purpose can be achieved. construct a wider picture of performance. It is important to
✓ Ensure that data is collected from various relevant recognise, however, that technology can only ever be the
sources to measure the value to society. enabler and never the solution. The smart finance business
partner generates insights using data and the available
✓ Develop performance and decision-making technological tools, before articulating the story and the call
processes that support the purpose.
to action. They explore the use of new analytical tools that
enable them to analyse and interpret data in the data lake.
Organisations are also evolving through digital

4.5 Technology agenda transformation and this offers new sources of data and new
The technology agenda comes in two areas. The use revenue streams. In many cases the focus of organisations
of technology by the finance business partner and how is shifting from manufactured goods to service-based
digital transformation is impacting the organisation solutions that take advantage of technology such as the
through the transformation of the business model. Internet of Things in delivering value. The development
of smart factories, for example, changes the mode of
Evaluating the performance of the organisation requires operation but also opens new data sources through
a broader view of where data is sourced and the which performance can be measured. This technological
trustworthiness of that source. Finance professionals need revolution transforms the business model and hence how
to become more confident in the veracity of operational purpose can be aligned to a sustainable future.
59
4.6 Developing the finance business partner of The successful finance business partner of the future will
the future need to combine attributes from each of these zones. As
A roundtable participant commented that it was a business transformers they are looking for opportunities
challenge ‘trying to explain to people that finance to help the organisation grow. As the data navigator
business partnering isn’t about being a better accountant. they are using the data available to them to generate
It’s a totally different skill set’. the insights to promote the ideas and narrative of the
business transformer. As a digital playmaker they see how
A finance business partner commented that it is about technology and data governance give robustness to the
the ‘culture of the organisation, and how willing you are data flows that they navigate and have the ability to use
to invest in your people in the longer term as well and data enquiry tools to deliver insight. As the assurance
understand that it’s not a quick fix, and you can’t just advocate they are placing the risks of the business in
turn [into] a business partner from [being] someone in context. Finally, as a sustainability trailblazer, they are
[accounts payable]’. promoting the measurement of the sustainable purpose
of the organisation. This vision of a finance business
In ACCA’s report Future Ready: Accountancy Careers partner is a development of the finance professional’s role
in the 2020s (ACCA 2020b) five career zones for the from having a purely reporting role into being a strategic
development of the accountancy and finance professional adviser on business performance.
were identified. These are represented in Figure 4.5.
FIGURE 4.5: The five zones of future careers in accountancy and finance
The assurance advocate The business transformer

The assurance advocate brings new levels of trust and The business transformer is the architect of organisational
integrity to organisational operations. They may focus change. They could be driving major business change
on enterprise risk, helping drive transparency and initiatives or transforming finance operations. They may be
understanding of emerging issues affecting business leading innovative smaller accountancy firms that transform
performance, or be at the forefront of shaping future client businesses. They could be exploring growing careers
forward-looking audit practices as the capabilities of digital in external advisory services driven by technological
tools and technologies expand. They could be driving innovation and economic growth. Or they may be leading
best practices in emerging control frameworks or helping smaller enterprises as digital platforms open the door to
organisations meet ever-growing regulatory demands or new commercial opportunities. They are critical to creating
managing complex tax issues. They may even be auditing change, driving the strategies of organisations, and
algorithms in the future. They are essential to the strong supporting sustainable organisations for the future.
stewardship of sustainable organisations for the future.
The data navigator The digital playmaker

The data navigator is a true business partner. They see The digital playmaker is a technology evangelist. They
extraordinary opportunities from the expansion of data and see remarkable possibilities for emerging digital tools in
use emerging tech and analytical tools to drive insights that transforming the organisations in which they work. They are
deliver business outcomes and sound financial management champions of technology adoption and data governance
of the organisation. They champion ever-growing multi-rich within the organisation. They look to connect across teams
data sets and use smart data to generate brilliant forward- and functions to leverage the power of technology. They
looking analysis to support decision-making. This could be may focus on digital implementation programmes or have
exploring new geographic market opportunities or building specialised expertise in particular finance and business
the case for investment. They understand that the currency technologies. They understand that digital transformation
of good information is at the heart of building sustainable in today’s global economy is the lifeblood of future
future organisations. sustainable organisations.
The sustainability trailblazer

The sustainability trailblazer is at the heart of performance management in the organisation. They play a key role in establishing
frameworks that capture, evaluate and report on the activities that truly drive value and in ways that are much more transparent
and meaningful to the outside world. They will transform management accounting fit for a multi-capital world and see emerging
opportunities with better external disclosures to ever-growing stakeholder groups. They understand that aligning the pursuit of
profit with the pursuit of purpose is integral to building sustainable future businesses.
60
For many of the interviewees and roundtable participants, profession we recognise the unique characteristics that we
the development of this future vision of the finance see as valuable and ensure that we have the pathways in
business partner presents a challenge. There is no one place to develop this next generation.
clear career path for developing an individual for this role
but there are several key areas of knowledge and skills
that such a person must have that can be identified: So, what should I do?
n an underpinning knowledge of accountancy and ✓ Ensure that you have an organisational culture
finance principles that supports the development and delivery
of insights and executes plans based on the
n a detailed knowledge of the organisation and
recommendations.
its business model and how performance can be
evaluated; networking outside of the traditional ✓ Create a culture of agility and innovation
organisational silos to achieve this developed around customer-centric operations.
n a detailed knowledge of the data model that supports ✓ Recognise that the skills of finance business
that business model, for financial and non-financial, partners who operate at a strategic level are often
structured and unstructured data, developing the different from those needed in other finance roles
finance professional’s worldview and require different developmental paths.
n the ability to apply techniques such as critical thinking ✓ Instigate a programme to support the development
to solving problems and developing narratives to of finance staff across a broad range of technical
support business decision-making and interpersonal skills.
n the ability to use analytical tools to drive insight that

looks forward as well as drawing on the relevance of
the past, exploring how the evolution of the business 4.7 Starting a finance career as a business
model offers opportunities for new data sources partner
n influencing and leadership skills together One workshop participant correctly observed that, with
with demonstrating emotional intelligence; the increased use of automation in the transactional
encouraging decision-making and leading to action processing area of finance, many of the positions in which
implementation. today’s successful finance business partners may well
have started out are disappearing. Yet, with the increased
Developing these skills for those already in finance roles importance of the role in driving insights and decisions in
can present a challenge. They represent a blend of a disrupted period, we need to consider how we develop
natural and taught skills that develop with time. Not all the next generation whose importance to organisations
accountancy and finance professionals possess these skills may well surpass that of their forebears.
to the same extent. Many will have started this journey
through roles in core transaction processing. Safeguarding the development of these skills as part of
the finance function’s development is important. Some
The challenge is also to develop the skills of the coming interviewees talked about recruiting from outside the
generation. The initial stepping-stone is increasingly being finance community by focusing on the softer skills and
automated and yet the need for finance business partners, business knowledge and providing the finance skills to
as we have seen, is growing. It is important that as a enhance the recruits’ abilities.
FIGURE 4.6: Key knowledge and skills of a finance business partner
Organisation and Data model Critical thinking Analytical Influencing and

business model leadership
Accountancy and finance
61
IT IS IMPORTANT THAT
AS A PROFESSION WE
RECOGNISE THE UNIQUE
CHARACTERISTICS THAT
WE SEE AS VALUABLE
AND ENSURE THAT WE
HAVE THE PATHWAYS IN
PLACE TO DEVELOP THIS
NEXT GENERATION.
62
FINANCE INSIGHTS – REIMAGINED | CONCLUSION
Conclusion
Organisations are facing many challenges. From the impact of the pandemic,
which will probably be felt for years to come in some form, the pressing need
to respond to climate change and to the disruptive nature of technology and
changes to the business models that result.
Never has it been more important to have sound This sort of work remains in the finance professional’s
information, based upon trusted data, and wise insights comfort zone. The world is moving on and the challenge
to facilitate rapid decision-making. The role of the finance for organisations to become more purpose-centric is
community here is fundamental. The role of finance business paramount. We need to think of performance in
partners who have a worldview supported by a clear different ways: to accept the challenge of measuring
understanding of the business and the data is essential. organisational performance in terms of the varied forms
of the capitals that we use. The aggregation of data
In our survey, we have seen that most respondents in within the data model facilitates this opportunity for the
the finance community rate the role that the finance accountancy and finance professional, if we are willing
business partners play as effective or highly effective. to grasp it. The role of the finance business partner in
They are seen as proactive in the majority of cases in generating these insights is fundamental.
providing the required insights and are a fundamental
part of the decision-making process. As against this, Yet we need to appreciate that this is a distinct finance
there is an apparent focus on current performance, which skill set. It is not one that can be acquired purely by
might suggest a reality of a more tactical role rather than training, as the necessary worldview and empathy
the strategic one that business demands. Are finance derive from behaviours and experience. They need
professionals taking advantage of the power of analytics to be supported by a culture, a tone from the top,
that is available to them? that embraces agile collaboration and is conducive to
generating the insights required.
Respondents indicated an increased demand for finance
business partners in the medium term (the next three The evolution of finance insights is a necessity, not a
to five years). ‘nice to have’. Are we able to reimagine the role?
Technology and the availability of data clearly have an

important role to play in achieving relevant insights and for
this there is a need to invest in the essential technology,
especially as part of the digital transformation agenda. This
is also an agenda that the finance business partner needs
to embrace. The opportunities that advanced analytics
give for finding greater insights are not to be missed.
63
FINANCE INSIGHTS – REIMAGINED | CONCLUSION
64
FINANCE INSIGHTS – REIMAGINED | ACKNOWLEDGEMENTS
Acknowledgements
The contributions of the following individuals in the development of this research is noted with thanks.
Members of ACCA’s Accountants for Business Members of ACCA’s Technology global forum
global forum Sam Ellis, InterWorks, United Kingdom (Chair)
Liz Blackburn, NatWest Group, United Kingdom (Chair)
Alastair Barlow, flinder, United Kingdom
Alan Johnson, United Kingdom
Alex Falcon-Heurta, Soaring Falcon, United Kingdom
Alastair Goddin, Asta Capital Limited, United Kingdom
Ashish Shetty, Target, India
Alisa Hayden, PwC, Ireland
Brad Monterio, CALCPA, US
Amber Arnhold, Honeywell Aerospace, US
Darren Kong, Fusionex, Hong Kong
Calvin Chong, South China Group, China
Dermot Igoe, Microsoft, Republic of Ireland
Dony Mazingaizo, Trócaire, Rwanda
Dev Ramnarine, CPA by Choice, US
Ernest Wong, KVB Kunlun Holdings Limited, Hong Kong
Heather Smith, ANISE Consulting, Australia
Ian Ng, Nielsen, China
Joshua Bowles, ACCA, UK
Babajide Ibironke, Mantrac, Nigeria
Kevin Fitzgerald, Xero, Singapore
Kelvin Musana, Standard Chartered Bank, Uganda
Neeraj Juneja, NTT Data Services, India
Kevin Jones, SA Power Networks, Australia
Nigel Adams, AdValorem, United Kingdom
Larry White, Resource Consumption Accounting Institute,
Nilanjan Majumdar, Cargill, India
US
Rashika Fernando, ScotiaBank, Canada
Loutfi Echhade, Saudi Arabia
Reshma Mahase, Canadian Public Accountability Board,
Matt Dolphin, Greater Anglia, United Kingdom
Canada
Nauman Mian, Bayt.com Inc, UAE
Scott McHone, ABFA, US
Olayinka Anyachukwu, Eudora Consulting, Nigeria
Stephen Dowling, ETM Unlearn, Australia
Oliver Colling, Embracent, United Kingdom
Robert van der Klauw, MunichRe, UAE
Rajesh Mahabeer, SA National Parks, South Africa
Vicki Lamch, Pyramid Solutions, United Kingdom
Ramamani Balaji, Nunavut Development Corporation,
Canada,
Renaka Ramachandran, Sime Darby Planation, Malaysia
Richard Aitken-Davies, United Kingdom
Sanjay Rughani, Standard Chartered Bank, Tanzania
65
FINANCE INSIGHTS – REIMAGINED | ACKNOWLEDGEMENTS
Participants in roundtables and interviewees Opinion contributors

Anna Skowron, Republic of Ireland Andrew Strowger, ACCA, United Kingdom
Andrew Jepson, TheFinanceBusinessPartner.com, APAC Ayla Majid, Pakistan
Andrew Monahan, HFMA, United Kingdom Chris Box, PwC, United Kingdom
Brendan Sheehan, White Squires, Australia Claus Thorne Madsen, PwC, Denmark
Crystal Hawkins, Greater Anglia, United Kingdom Eu-Lin Fang, PwC, Singapore
Dawn Scrafield, Mid and South Essex University Hospitals Euan Cameron, PwC, United Kingdom
Group, United Kingdom Helena Clennell, PwC, United Kingdom
Des Hanrahan, Ireland Iris de Jongh, PwC, Netherlands
Edmund Lee, PwC, Hong Kong Jimmy Greer, ACCA, United Kingdom
Ellen Fang, PwC, China Richard Wyles, PwC, United Kingdom
Ginna Ng FCCA, Canada
We also thank those who completed the survey
Helen Morgan, United Kingdom conducted in conjunction with this report, including
Joseph Pattara, NatWest Group, United Kingdom the members of India’s Shared Service Forum.
Mark Vincent, NatWest Group, United Kingdom Authors

Merina Abu Tahir, Lembaga Tabung Haji, Malaysia Brian Furness, Global Head of Finance, PwC
Molly Banks, Police Scotland, United Kingdom Clive Webb, Head of Business Management, ACCA
Patrick Burke, PwC, Australia Gavin Hildreth, Senior Consultant, PwC, United Kingdom
Pete Williams, Penguin Random House, United Kingdom Jamie Lyon, Portfolio Lead, ACCA
Richard Alexander, Imperial College Healthcare NHS
Trust, United Kingdom
Richard Berney, UHY Farrelly Dawe White Limited,
Republic of Ireland
Sean Purcell, Wise Up Now, United Kingdom
Sim Siew Shan, Air Asia, Malaysia
Sunil Kumar, NatWest Group, United Kingdom
Val Baynes, Commonwealth Bank, Australia
Wilson Koh, Grab, Singapore
66
FINANCE INSIGHTS – REIMAGINED | REFERENCES
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PI-FINANCE-INSIGHTS-REIMAGINED
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Finance Insights Reimagined

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Finance Insights Reimagined

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IN ASSOCIATION WITH

FINANCE INSIGHTS – REIMAGINED

We believe that accountancy is a cornerstone profession of society that supports

Find out more at www.accaglobal.com

We are on a digital transformation journey marked by key investments in technology and a

© 2020 Association of Chartered Certified Accountants and PricewaterhouseCoopers LLP

n United Kingdom n Pakistan n Republic of Ireland n Other

n Financial Accountant n Internal Auditor / Financial compliance

We continue to live in times of rapid change, competitive markets, and

Why insights matter 9

1. Redefining performance for organisational purpose 14

2. The business partner role 17

3. The evolution of finance insights 37

4. The future vision? 47

THE MESSAGE IS CLEAR;

The role of Oversight, Effective Business A failure to Self-service

TABLE ES1: The Six Capitals of Integrated Reporting

FINANCE TEAMS NEED TO BE CONSCIOUS

Why insights matter

Why insights matter

So, in summary, what should I do?

ORGANISATIONAL PURPOSE AND INSIGHT

2. The business partner role

Finance business partnering: changing conversations… changing decisions

FIGURE 2.2: Perceptions of the finance business partner role

Is a key objective for most finance functions

optimise risk management,

compliance and control to elimination of non-core

establish a sustainable cost

activities through shared

which meets today’s

requirements and is flexible

THE RESPONDENTS PERCEIVED

Insight and Drive

Historic – reactive Value creation – proactive

My argument is that we should always come up with

2.4 Forward-looking insights Many of those interviewed stressed the importance of

Trustworthiness is the combination of credibility (the way

Data and the finance business partner

Over 78% of the respondents see the role increasing and

✓ Appraise the skills of the current finance business

Several interviewees commented that those accountancy

✓ Use technology and available data

HAS BECOME ESTABLISHED AS supports business activities, while

AND 63% OF LARGER ENTITIES. can involve using cloud-based

The role of Oversight, Effective Business A failure to Self-service

FIGURE 3.2: Evaluation of the six hypotheses

60% n Will occur in next

✓ Recognise the shift to making decisions for areas

60% n Will occur in next

Of the overall respondents, 21% stated that this was being

IN MAINLAND CHINA, 83% OF

v. Failure to evolve skills will render the role obsolete

Of the respondents 17% said that failure to evolve

4. The future vision?

4.1 Re-evaluating performance If organisations, partly as a result, correctly come to

TABLE 4.1: The Six Capitals of Integrated Reporting

Current appreciation and finance professionals will become more involved

4.4 The capitals evaluated

✓ Review the approach to scorecard measurement

n Fundamental part n All respondents

Helena Clennell, Jamie Lyon,

Many business models that rely on intellectual capital

Social and responsible

Eu-Lin Fang, Jimmy Greer,

data that originates beyond their traditional boundaries

Organisations are also evolving through digital

The assurance advocate The business transformer

The data navigator The digital playmaker

The sustainability trailblazer

n the ability to use analytical tools to drive insight that

FIGURE 4.6: Key knowledge and skills of a finance business partner

Organisation and Data model Critical thinking Analytical Influencing and

Accountancy and finance

Technology and the availability of data clearly have an

Participants in roundtables and interviewees Opinion contributors

n United Kingdom n Pakistan n Republic of Ireland n Other

n Financial Accountant n Internal Auditor / Financial compliance