executive summary

The modern, successful finance function is at the heart of all good organisations. It is expected to play an active role in contributing to the achievement of the organisations objectives. To be successful, the function is expected to undertake a series of roles and responsibilities including: the provision of efficient and effective finance processes delivering the specialist services such as tax and treasury functions ensuring effective finance management of the organisation via control, risk and regulatory compliance providing the strategic insight to support decision making through the analysis of performance, finance and business information engagement with the wider business to support and implement the strategic initiatives. Our previous research found that an evolutionary change was occurring in the finance function, driving a closer collaborative relationship between finance and the wider business. Finance functions require a portfolio of roles and finance professionals with a diverse range of competencies and skills to effectively fulfil the expected role and these responsibilities. Changes taking the finance function towards the business partnering role do not necessarily encompass the elimination of more traditional roles, such as transactional processing work, nor does it require physical relocation of roles. Instead the research found that finance business partnering can be done via virtual collaboration and the key changes to the finance function are those that really create value via improving internal processes and focusing on products and services. Such a role requires much less of an emphasis on cost efficiency and back office duties, and much more on finding ways of being outward-facing and creating value. It makes new demands on finance professionals whilst still requiring them to be both technically competent and in a position of independence. The latest phase of the CIMA research now delves further to determine the changing shape, roles and finance structure, the resource and effort required and the impact on skills requirements as the function continues down its evolutionary transformation to meet the needs of the organisation. Traditional structures for the delivery of finance services to the organisation are found to persist, with a separate finance function still the dominant method of delivering finance services to the organisation and responsible for the full range of such services. There are some clear trends however, involving the use of external provision and the decentralisation of finance professionals. This is particularly true for large, commercial organisations where we see current and expected use of external delivery to gain efficiencies, and full or partial integration of finance professionals in the business to leverage better management support. Currently, the provision of management support services absorbs a relatively minor part of the finance functions resources, with a more prominent role in larger organisations. Going forward however, there is already some evidence of demand and pressure from business for an increased allocation of resources and focus on this area. This is driven by the strong perception that such activities add value by helping the organisation to achieve its objectives. Senior management foresee a need to switch finance function resources into this management support area and away from the more transactional accounting operations. In this context, the finance professional in business continues to need broad-based technical skills and training as a foundation to their competence and career. The central importance of technical skill pervades regardless of role or seniority. That said, additional needs for a more business-oriented, forward-looking approach are clear from our research. This demand is driven by a broadening of the role of the finance function in adding value to the services they provide through provision of management support, including business partnering, services. Overall, the research and our consultations indicate that the finance function and its members constitute a force for further development of the management support role. Implementing this change will be dependent on identifying and developing the appropriate personnel and demonstrating to business managers what and how the finance function can contribute to the organisation. 75.4% believe working in management support helps the organisation meet its objectives