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The Transition of the Finance Function  to Value Added Business Partners

Pernilla Nyberg

FP&A Summit

June 2nd

– 3rd, 2011

London

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Nike Inc. – the world’s leading sports brand

To bring inspiration and innovation to every athlete* in the world. *"If you have a body, you are an athlete." - Bill Bowerman

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Lance Armstrong

Seven straight Tour de France victories 1999 - 2005

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The Finance Function

Transition to Value‐Added Business  Partners to drive sustainable and 

profitable growth, improved forecast  accuracy and ultimately

Shareholder Value

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My Approach

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The importance of a common goal

Winning is a Team Effort: Lance Armstrong didn't’t win all these tours without the help of his team. The team consists of other riders, coaches, mechanics, doctors, and others. The riders are there to work together, they create wind tunnels and help pace each other. Many times one team member must sacrifice themselves for their leader. Regardless, no one is winning any tours without the help of a team.

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The same applies to the corporate world

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Challenge for the Finance Function

•

Current Workload?

•

Transactional work?

•

No time?

•

Appropriate skills?•

Finance seen as 

business partners?•

Do the business 

partners want to come  & play?

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Traditional view of the Finance FunctionFROM

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Future Finance function

TO

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Transition the Finance function

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Transition Plan to Value‐Add

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Finance serves multiple Partners

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Focus on Internal Business Partners

HRHR

CategoriesCategories

SalesSalesBusiness UnitBusiness UnitMerchandisingMerchandising

WHQWHQ

Legal CounselLegal Counsel

OperationsOperations

Demand PlanningDemand Planning

MarketingMarketing

EHQEHQ

LogisticsLogistics Customer ServicesCustomer Services

RetailRetail

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Finance to align the pipe

Finance to take the Lead

Flexible, Dynamic & Organic

Get all players to come and play

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A great deal of flexibility is required…

Seven straight wins between 1999 to 2005, after a brief retirement he returned in 2009 and finished overall 3rd. In 2010 he stated after 8th stage his tour was finished but intended:“to complete the race and support his team”

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…and so is a Clear goal aligning all teams

“A boo is a lot louder than a  cheer. If you have 10 people 

cheering and one person  booing, all you hear is the  booing.”

Lance Armstrong

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What is the Definition Value Add?

Define Value Addfor both our Business 

Partners &

us as a Finance Function

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Expectations of the Finance Function

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One Approach of ‘adding value’ is:�

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Create Capacity & Build Capability�

An Athlete is continuously creating  Capacity and building Capability to  enhance their performance

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Same goes for the Finance Function

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Efficiency improvement

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Create Capacity through efficiency

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Performance Improvement

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Build Capability through Talent Strategy

Clear Job description & required competencies

Training & Development

Career & SuccessionPlanning

Talent Acquisition Plan

Performance Management Culture

Robust Appraisal Process

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But what about

the Business Partner?

So if Finance Create Capacity and  Build Capability

How can we get the Business  Partners to Partner up with us

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Understand their Challenge

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Finance need to rise to the

Challenge

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Inspire & Guide our business partner

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Not one solution fits all

•

Customised Approach

•

Relevance for Business Partner

•

Large Investment but with a great return

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Divide Business Partners in Target groups

Categorise the Business  Partners into Target Groups:

•Total Organisation

•Individuals

•Individual Functions

•Sub‐teams

In order for us to focus  partnership

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Business Partner: Total Organisation

Instill Finance Acumen in the Organization:

Education & Awareness

Finance for Non-Finance ManagersShareholder Value Training

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Key Individual Business Partners

Successful approach for Senior  Business Partners e.g. Mngt  team members, Dept 

heads, or key contributor‐ roles

Tailored 1/1 Approach

Openness, Trust, Respect

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Individual Functions as Business Partners

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Achieve greater results

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Sub‐teams of Business Partner

Clusters of functions and business partners

Integrated Processes

Focus on Cross functional alignment

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Example of a Sub‐team approach: S&Op

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S&Op: Finance to take the lead

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S&Op: Roles & Responsibilities

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S&Op: Agenda

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Cycle of Value‐Add Business Partnership

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Finance in great position to take the lead

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In Summary

Capac

ity

Capac

ity

Inspir

e

Inspir

e

Capabi

lity

Capabi

lity

GuideGuide

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And remember…

“If you worried about  falling off the bike, you’d 

never get on.”

“Pain is temporary.  Quitting lasts forever.”

Lance Armstrong

THANK YOU!