Modern Roles of Finance: From a Scorekeeper into a Business Partner Modern College of Business and Science - Muscat, Oman Modern Roles of Finance: From a Scorekeeper into a Business Partner Dr. Dejan Krstevski, Franklin University, International Teaching Faculty 19 April, 2017

Agenda 1 INTRODUCTION 2 MODERN ROLE OF FINANCE DEPARTMENT 3 Q & A

CFO / FINANCE ROLE: CO-PILOT Destination: maximize shareholder value IT / CITO MARKETING CMO HR We are ready to land a plane safety when the pilot fell ill CEO CFO

The journey we are in… From a scorekeeper… …into a business partner From spreadsheets… …into a business partner …to strategy ….into a dynamic organization From a static department...

From a Scorekeeper into a Business Partner Move from being cost reduction oriented to being growth oriented. (e.g. “save for growth”, “save for services”) Use valuation tools in new ways to assess the performance of the business. Ensures business decisions are grounded in sound financial analysis We create a motivating place to work. Talent growth is a key objective. Finance area motto I am responsible for business success! Previously: putting business skills into finance Now: put finance skills into the business. Mentoring: Finance top management acting as mentors of cross-functional teams of mid management. Lead by example: Finance management strongly expected to be role model in service excellence. 6

From a Static Department into a Dynamic Organization Customer finance Customer finance is the new blue print among the organizations. In essence, the Finance organization should strive to be a "business within a business” and, as such, a focus on customer satisfaction must be a key tenet for any service-delivery strategy. This is the core concept behind a shared-service organization whose primary goals are to provide efficient, low-cost services with a strong focus on being a service-oriented organization. We want to become a driver of service excellence within the organizations: streamlining the organization, to have a common goal, management focus and energy, education and building a critical mass. Disruptive technologies e.g. 100% cloud based ERPs. 3rd wave for technology, harmony of man and machine in Finance Service excellence Shared -services Technology driven organization 13

From Spreadsheets to Strategy 1 Finance is evolving Finance is transitioning from “bean counters” to “bean sprouters,” Aligning finance strategy with broader enterprise strategy and increasing the finance organization's value to the business. Implementing and managing globalized service delivery. Improving the performance and utilization of shared service organizations

New CFO Role The CFO – CEO Relationship: a Strategic Partnership The CFO: from Technical Expert to Commercial Leader Business Leader vs. Accountant Leading an Evolving Finance Function Innovative Technologist

Finance Outlook – Summary I 2 The finance structure should: distinguish between accountability and responsibility for finance activities; be integrated with the business to encourage customer focus; The finance processes should be: focused on adding value; integrated with other business processes; automated where cost effective to do so; efficient and effective.

Finance Outlook – Summary II 2 The finance systems should support the change by: being flexible; using emerging technologies where appropriate; being integrated across the business; reflecting users’ requirements; having controls embedded within them; enabling rather than constraining. The finance culture should: be forward looking rather than backward looking; appreciate value and cost; encourage openness and the sharing of best practices; encourage partnering with the business.

Thank you! 12