Content thumbnail Partnering for Performance Part 1

Business partnering yields rich returns in business partnering relationships rate the overall quality of Our research suggests that business partnering is associated the relationship as positive, compared with 23% of those in a with stronger financial performance. Among the business partner traditional relationship with finance. And more than 90% consider respondents, 48% report EBITDA growth increases of more than both the level of agreement over key priorities, and the mutual 5% over the past year, compared with just 22% of those with understanding of key risks and opportunities, to be positive, a traditional relationship (see Chart 6, page 12). Although a compared with just 18% and 26% respectively of those in a company’s financial performance will inevitably be determined by traditional relationship (see Chart 9b, over page). a multitude of factors, a business partnering relationship between It is also worth noting that in a comparison between CFOs and the CFO and the supply chain leader seems likely to contribute . supply chain leaders that identify themselves as being part of a Equally, higher growth may enable greater investment in the business partnering dynamic, the supply chain leaders have a resources required for business partnering . This can create a more positive view of the relationship as a whole . But in the more “virtuous circle” in which business partnering and higher growth traditional dynamic, CFOs have a consistently more positive view can reinforce each other. “In a growth-oriented company, you of the relationship than their supply chain peers . need to have deep and transparent conversations about how that growth will be achieved, and that requires a robust partnering Chart 9a approach,” says Mr . Meadows, Americas Supply Chain and How would you rate the following aspects of the relationship between the CFO and head of supply chain (%)? Operations Leader, EY . Overall quality Business partnering facilitates deeper insight across a of the relationship range of business challenges 80 A business partnering relationship between finance and the supply 82 chain can help build a more integrated, end-to-end perspective Mutual 35 87 understanding of Level of agreement across finance, operations and the commercial functions. At key risks and 37 over key priorities companies where a business partnering relationship is in place,3 opportunities 26 CFOs and heads of supply chain report a much more productive 28 40 relationship across all key metrics measured . For example, 16 80% of business partner CFOs report a good or very good overall Ability to work 72 74 Alignment between the through business finance objectives relationship with the head of supply chain, compared with 35% challenges 65 and the supply chain of traditional CFOs . They also report stronger agreement over key priorities, better alignment between finance objectives and Ability to link supply chain the supply chain, and a mutual understanding of key risks and strategy with finance objectives opportunities (see Chart 9a). We see similar sentiment in a comparison between business partner and traditional heads of Business partnering finance Traditional finance supply chain. In the supply chain function, 100% of those 3 See section “The basis of this study” on page 3 for an explanation of how the business partner and traditional respondents are defined. Partnering for performance Part 1: the CFO and the supply chain 15

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