Finance Business Partnering is a mindset

In many organisations, Finance Business Partnering is perceived as a role assigned to selected employees in the finance function. But according to Henriette Fynsk, CFO at EIFO, it is much more than that. Finance Business Partnering is a mindset that should permeate the entire organisation if it is to truly create value. And it is the CFO's leverage when change is on the agenda in the CFO area. 

It is quite a hefty volume at 470 pages that Henriette Fynsk co-authored. Probably a couple of pages too many, she admits with a laugh. But when it comes to a topic you are passionate about, it can be difficult to be concise. The book is called "Create Value as a Financial Business Partner," and it is based on this that we meet her on a sunny spring day in the emerging industrial district of Nordhavn. 

We are here to talk about Finance Business Partnering: the value-creating mentality in finance, where employees transition from being classic controllers to actively working with the entire organisation's greater purpose and value creation. And it is a topic close to Henriette Fynsk's finance heart. She describes it as a small revolution of the finance function: 

“Traditionally, the finance department has been known as a cost center and primarily as those who say no and see limitations. But if we instead begin to see ourselves as a profit center, our advice can create so much value that we actually earn our keep. This way, the rest of the business will also gain a different view of finance, so we are not just seen as those who see limitations, but also those who see opportunities and thereby become the business' natural sparring partner," explains Henriette Fynsk. 

Basically, the Business Partnering mindset is about the finance function being strategic, tactical and operational. The strategic part involves being curious about what keeps the rest of the business awake at night. What are the true challenges? You then actively work with that insight by simply adding a pinch of sales work to your role in the finance function, as Henriette Fynsk explains it.  

"We also have a product to sell. The business should preferably see that the finance function adds value. A sales department is usually good at ringing the bell every time they make a sale. But in finance, we never announce if we have found extra money, become more efficient or found solutions that provide more value for the business. We need to get better at that.”

In Henriette Fynsk's own words, she has been thrown around in many different roles. Besides sitting in the CFO chair, she has been responsible for 140 data specialists, built up a procurement function and worked with risk management and compliance. And although expertise cannot be neglected, her Finance Business Partnering mindset has brought an important focus to each role she has found herself in. Especially because she has often had to help drive transformations in companies that wanted something different and more from the CFO area.

"If you only see the CFO role as a financial role, you miss the entire point. It is about getting the right competencies into play and figuring out how you can bring customer focus into the function and turn it into a transformation. That is why it is crucial that you as a CFO dare to look critically at your own function."

But before you think about transformation, you need to have the basics under control or – in Henriette Fynsk's own words – have organisational discipline. Because before you as a CFO can take an organisational perspective, you must of course ensure a finance function that complies with legislation and is compliant, while operations are efficient and smooth.

"If our numbers are not correct, and if we, for example, cannot close the books on time and in an efficient way, then it becomes incredibly untrustworthy to go out and be a sparring partner on how we should optimise the business. So there is simply a license to operate in having secure, efficient operations," explains Henriette Fynsk.

But if things are in order, the CFO and the finance function can begin to work actively with the organisation's larger goals and challenges in mind. 

That said, expectation alignment with stakeholders such as the board and management is important. Because how long does the finance function have to ensure organisational discipline? Typically, the business does not have time to wait for business advice. Therefore, it is about finding the right balance in collaboration, where the business receives value-creating advice from the finance function, while simultaneously getting things in order. 

“When you begin to help solve the business' problems, you get a completely different focus as a finance function. And that will give you a huge buy-in in the organisation because you are suddenly seen as problem solvers – and those are the kind of people the company really wants on the team and around the table," she says and adds: "Because when the business partner mindset is present, the business will typically experience a collaboration about finding the right solutions, which is crucial in change projects anchored in finance, where both the project's value and impact extend beyond the CFO area. In the long run, this also gives the finance function larger and more exciting tasks.”

In the conversation with Henriette Fynsk, she repeatedly returns to what she considers the core of the entire Business Partnering mindset. She calls it having the customer in your heart.

And here, it is important to clarify, she explains, that 'the customer' in this context is not the company's end-customer. To succeed as a good Finance Business Partner, you need to view your internal stakeholders as your customers. And it is the specific value you can create for them that you should carry in your heart. The finance function should ensure end-customer focus through dialogue with the business.

"You need to take an interest in the deliverables you provide. Do they create value for my customer? Do they meet my customer's needs, or is there something else they request that I can contribute with? If you learn to think like this, you have taken the first step."

Therefore, it is also essential that you invest the time and energy to move away from your desk and be curious about what drives the business. For some, being proactive and curious is the most natural thing in the world, explains Henriette Fynsk. For others, it is a muscle that needs to be trained. And for the last group, it is really demanding to take on that task.

"So it is about finding some champions in the department who find it natural and who can bring that customer-focused business understanding into the department. I usually say that if you have a third who can just do it, and a third who need to be trained in asking the questions, then you already have the majority thinking along those lines. And then there might be a third that you never really get on board. But that is okay too, because it does not help if everyone is running around in the hallways. Numbers and analyses still need to be produced. But everyone should be curious about what value they add," she says, before sharing some of her own method for getting finance employees to ask the right questions.

"I very often ask: 'What would your customer say about this?' or 'What will the business say when you come with this product?' And that is everything from an invoice that needs to be approved to the major analysis report. It is about getting my employees to think about how they would think if they were sitting on the other side of the table. They need to dare to come with their recommendations and ensure that these create value for the company.”

And here the conversation turns to the CFO's role in transforming their finance function into an active Finance Business Partnering unit. Because although individual finance employees must be curious and understand the value they can create for the business, there is no doubt that the entire structure and mindset must come from a CFO who understands the mechanisms and the positive effect it can create for all parts of the value chain.

Typically, it starts with identifying what your board sees as the most important goals to achieve. Their three biggest issues need to be solved – because when that happens, you move up the trust curve. Next, it is about understanding and mapping your key stakeholders' pain points. These are the insights you need to communicate to employees in the finance function so they can actively work toward addressing them. As CFO, you need to create a common direction.

"The process typically begins with laying out a plan and quickly executing some concrete initiatives. It is a good idea to focus on delivering some quick wins, so you show that change is happening – this way, you create the working space needed for the long haul," explains Henriette Fynsk, who also emphasises the importance of documenting your small victories, for example in a strategic roadmap. This way, you map out your focus areas and how you will achieve them.

It is also a valuable tool for another essential task – tracking your efforts and specifically following up on whether they created the desired value for your customers.

"It is important to demonstrate the execution and benefits of the work. Why did we do it? Did we track the expected benefit? Too many companies have finance departments that forget to follow up and harvest the benefits of the initiatives they have launched. By recording them, you not only create an overview – you also actively contribute to developing the finance function as a profit center.”

Business Partnering is a concept that many companies pride themselves on practicing. But although ambitions are often good, the real effects can easily drown in day-to-day operations.

Quick wins are an important part of the process in the beginning, but persistence, transparency and a sharp focus on the right priorities are crucial. It is the long, tough haul that creates real change, and according to Henriette Fynsk, it will typically take 2-3 years before an entire finance function is on board and learns to have the mindset – and the customer – truly at heart.

"Many have promoted it, but I wish more would practice it in reality. But it is difficult – partly because it requires us to combine different professional skills and learn something new on the behavioural side," she explains and elaborates:

"We need to remember that it is about people and behaviour. Changing habits and creating a new culture takes time. That is why it is so important for me to emphasise: Business Partnering is a mindset. And the more people who master it, the better we become as an organisation.”