With the ethical conduct of business of public interest worldwide, CIMA brought together financial leaders in Asia to discuss issues of independence and objectivity in relation to finance business partnering. CIMA's head of ethics Tanya Barman reports on a discussion which showed not only how important the objectivity of finance is, but also the challenge in identifying and retaining talent.
CIMA's Singapore roundtable on business partnering followed a London based meeting earlier in 2011, which sought to identify the similarities and differences in the structuring and supporting of partnering roles in these different regions.
Ongoing research in Asia, through CIMA’s finance transformation programme, has identified that there is a clear challenge for the finance function as it needs to 'switch the mindset from co-pilot to driver’s seat while employing additional skills and tools,’ according to Julian Heang, FD of Danone Dairy.
Although there are many similarities between east and west, the demand for talent in Asia is even more acute. Also fundamental is the need to encourage speaking up, by encouraging individuals’ professional development and establishing the right operating culture.
The independent business partner: Asia
In a recent report, CIMA found that finance business partnering is at varying stages in different parts of the region. However, there is a clear demand for finance professionals with a mindset which focuses on the objectives of profitability and added value as well as having the ethical mindset and technical ability to impose the necessary checks and balances.
Does a partner remain silent when your organisation is going down the tubes? Or when someone is doing the wrong thing? While business partners have the opportunity of adding value, they also have the opportunity to apply the brakes when things are going wrong.
Participants believed that developing these skills and creating an ethical environment which enables this adding of value was crucial. Behaviour and influencing competencies are seen as critical skills, alongside technical ability.
Gain and retain
As markets in Asia continue to grow rapidly, talented staff are in short supply. For many firms, getting and retaining appropriately qualified finance staff is a challenge.
The need for mobility across widespread markets and operations further complicates the issue. Partners must be able to build relationships, influence, analyse, and, critically, challenge and make decisions based upon an independent view in the interest of the organisation as a whole.
Building the capacity for partnering for individuals and organisations can be achieved through in house professional development, job rotations and appropriate career paths.
The challenge of finding the right people and ensuring they have the right skills was a much discussed theme. Wider CIMA research also points to the need to encourage a ‘speak up’ mentality. In some Asian cultures challenging superiors can be difficult for staff.
Ethical influence
Having the confidence and ability to challenge and influence from a position of independence is recognised by finance leaders as vital. Appropriate organisation design enables this.
It is essential that there are appropriate reporting lines and related support and structures in place in order to safeguard independence and the overall success of the business. Ultimately this can only be achieved if the operating culture and the tone from the top reinforces the importance of ethical practice. The role, and the role modelling, of the CFO is all important – something CEOs are recognising.
A leading headhunter acting across the region states, ‘What I hear from CEOs is – I want my CFO to be a sounding board, the one with the thought leadership as well as the professional courage to challenge me and speak up.’ By establishing this culture, the CFO can build capabilities, lead the team, and have the right people follow.
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Report: Fact or fiction? The independent business partner: Asia