1. 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

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

3. 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

4. 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...

5. 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

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

7. From Spreadsheets to Strategy1
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

9. 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

10. Finance Outlook – Summary I2
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.

11. Finance Outlook – Summary II2
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.

12. Thank you! 12