1. The journey of the finance team within the
corporation
From Subject Matter Expert to Business Partner to
Business Leader
Paolo Damiani
Global CFO Power BU
Crompton Greaves
CFO EVENT May 7th
2014

2. 2
Agenda
• How the role of finance is (often)
perceived in the organization
• How should finance be perceived and
what should its role be?
• How can it be achieved?
 Importance of the team
 Organizational changes
 Timeframe and how to measure
• Q&A
CFO EVENT May 7th
2014

3. 3
Perception of Finance …. expectations
• It start from how the role of CFO is presented vs the qualifications and
experiences required to fulfill the role
• Internally finance often seen as:
– a data provider
– driven by some accounting rules far from business that the organization has to
comply with
– Briefly as a Subject Matter Expert
Often a dichotomy between: requirements and reality
“This is an accounting
view”
“I need different and better
reports”
“Give better analysis and I
will make the right decision”
“Finance does not provide
me with enough data”
CFO EVENT May 7th
2014

4. 4
What is the role of finance
• Leading with the CEO the definition of the Strategy
• Define the rules of the game
• Know when to buy, to make, to prune
• Grow a customer centric culture in the organization
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Question to ask:
How can we better understand the business ?
What can we do to add value to the business ?
How do we drive the business growth?
Self Centric Helping the Business Leading the Business
CFO EVENT May 7th
2014

5. 5
How can been achieved?
1. Create a team and encourage leadership
– Share the vision, the direction, the path, the growth.
Make them feel that they count
– Encourage finance people to take initiatives
– Push to understand:
 The product
 The processes
 Keep them informed
How ?
– Kick off: share the vision build it together.
Generate enthusiasm. Ask for solutions.
– Ask the same questions: what can we do to
improve it? What have we learned?
– Twice per year: finance meeting with all direct
reports + if, if possible, first line, invite internal
speakers, make them present their project.
– Build a culture of innovation: on your weekly
meeting each member must make a short
presentation of a company that has innovated
– Encourage and support when proactive
(sponsor them in cross functional team)
– Move them physically close to their internal
customer whenever applicable
– Sponsor finance members to attend courses
-activities outside the financial perimeter
INSPIREINSPIRE
LEADERSHIPLEADERSHIP
CHANGECHANGE
CFO EVENT May 7th
2014

6. 6
How can it be achieved?
1. Define the right organization/
choose the right project
– Identify the key strategic “partner”
– Mold the organization in line with the corporate
structure - if possible identify some needs not
yet clear (this is valid also for the selection of
projects)
Roles that can make a difference: Examples
•PROCESS AND COMPLIANCE (80% process and 20% compliance)
• How do we do things ?
• How we should do things ? (in manufacturing, in sales etc)
How to sell the position internally?
Use the compliance case
Which profile?
Expert. Person with prior exposure to sales/manufacturing/process
Results to expect
• Minimize and being on top of the risk
• Gain business recognition
•DISTRIBUTION CHANNEL CONTROLLER
• Is the right channel for the right market?
• Can we generate business by acquiring distributors?
How to sell the position internally?
Support to sales growth
Which profile?
Expert. Person with commercial mindset
Results to expect
• Increase focus on competition and on M&A
Impact on Business
Wins
L
H
L
H
This where
to focus
Acceptable
CFO EVENT May 7th
2014

7. 7
Timeframe and how to measure
Self Centric Helping the Business Leading the Business
Now 12-18 m 18 - 36 m
Quantitative
. Nr of reports
. Invoices processed
. On time closing
. Reconciliations
……………..
Quantitative/Qualitative
. Saving generated
. Nr or business processes simplified
. BP ask for help in defining their
needs / goals
. Meet with external people
Qualitative
. When a finance person is required
for functions outside finance
CFO EVENT May 7th
2014

8. 8
Questions / Comments
THANK YOU