What is business partnering?
Business partnering is a multi-disciplinary approach in which an individual in one functional area of a company consults with executives to enhance decision-making processes.
Organizations commonly follow a business partnering model for human resources (HR), finance, or information technology (IT). No matter the area, business partners have the same role: to use their specific acumen to help further the organization’s value and performance. The partner serves as a bridge or intermediary, linking units of the organization together.
Depending on the organization's industry, it might rely on strategic planning, financial planning and analysis (FP&A), or HR software for business partnering. These systems can help an organization align on goals, take a closer look at data in a particular department, or analyze hiring decisions.
Business partnering skills
Successful business partners must demonstrate a wide array of technical skills in their areas of expertise. For instance, an HR business partner must possess interviewing, hiring, and onboarding knowledge.
However, the individual must also have certain dispositions and abilities to be successful in the role, including:
- Strategic thinking: In this model, a business partner functions as a consultant. As such, one must have strong strategic thinking and scenario planning skills. The role requires the ability to assess needs, predict outcomes, and enact changes across an organization.
- Business acumen: One must have a nuanced sense of the organization’s various functional areas and its place in the industry. A business partner should not be afraid to venture beyond a single department. Rather, they should spend time getting to know the people and problems throughout the organization.
- Collaborative skills: Exceptional interpersonal competence is a must. These individuals must communicate well across diverse audiences. They need to talk confidently with managers and executives and facilitate difficult discussions.
- Problem-solving mentality: As a consultant, a business partner must take a head-on approach to challenges. A partner must be able to analyze data and guide a team toward possible solutions carefully.
- Technological proficiency: Digital tools help business partners make data-driven decisions. For instance, business intelligence software is often used to analyze and manage data. Depending on company needs, other types of software may be needed, such as workforce management software for human resources.
Benefits of business partnering
Implementing a business partnering model can bring many positive changes to an organization. Some of the benefits include:
- Increased efficiency: Executives can quickly make confident decisions, which may help improve the company’s bottom line.
- Reduced costs: With a technical strategist in the room where decisions are made, a team can often develop clever or outside-the-box ideas to cut costs or earn more revenue.
- Better communication: As a relational manager, the business partner helps interconnect teams, improving communication and company culture.
Ultimately, an organization will find that it can make more effective decisions and revise strategies that drive the company forward. This growth can add financial value, contributing to the company’s success.
Business partnering best practices
When introducing this model, a company must make all parties feel comfortable with the transition. To ensure success, it is important to keep these best practices in mind:
- Create a plan. Take a close look at the needs of the organization. What kind of business partner would be most beneficial based on the company’s goals? For example, if a chain of brick-and-mortar stores has new e-commerce expansion goals, the company might want to consider adding an IT business partner role.
- Define the position. Delineate the specific responsibilities of the role. Consider what data the business partner will analyze and with whom they will collaborate.
- Anticipate challenges. A business partner connects ideas and people. Where might the business partner face roadblocks when making connections? Be proactive. Think about how these challenges, such as pushback from team members, could be circumvented.
- Adapt and make changes as needed. In today’s market, businesses need agility to evaluate, re-evaluate, and pivot. If the planned role does not seem to bring the expected level of results, rethink how the team member can add value.
Kelly Fiorini
Kelly Fiorini is a freelance writer for G2. After ten years as a teacher, Kelly now creates content for mostly B2B SaaS clients. In her free time, she’s usually reading, spilling coffee, walking her dogs, and trying to keep her plants alive. Kelly received her Bachelor of Arts in English from the University of Notre Dame and her Master of Arts in Teaching from the University of Louisville.
