Hit the road Positive leadership for troubled times - ICAEW

More documents

Recommendations

Info

FINANCE & MANAGEMENT The way ahead Accountants in business must adapt to the changing expectations of organisations, says Stathis Gould, with some pertinent advice on where to focus now T he International Federation of Accountants (IFAC) is working hard to support the global profession as it responds to the changing expectations of society, financial markets and organisations, and to promote the value of professional accountants to businesses. In the recently published Competent and Versatile: How Professional Accountants in Business Drive Sustainable Organisational Success, IFAC identifies eight drivers of sustainable organisational success. Those eight drivers – specified in the box, right – are those areas in which organisations need to excel in order to achieve and sustain high performance. They should also be the focus of businesses striving for lasting success, which is why they are key areas of competency for accountants. TIPS FOR INDIVIDUAL ACCOUNTANTS The publication, dubbed C&V, takes an employer- driven approach primarily intended to help the accountancy profession – including IFAC member organisations – facilitate sustainable success through the education, training, and development of professional accountants. C&V and an accompanying brochure aimed at employers also help IFAC member professional bodies to understand and promote the diverse contribution of professional accountants as creators, enablers, preservers, and reporters of sustainable value in leadership, management, analyst, and controller roles. However, individual professional accountants can glean helpful advice from the publications too. The brochure encourages those running organisations to support the development of finance and accounting. It recommends making them more effective by moving them into different and more value-added roles inside and outside of finance. These THE EIGHT DRIVERS OF SUSTAINABLE ORGANISATIONAL SUCCESS A customer and stakeholder focus. Effective leadership and strategy. Integrated governance and risk and control. Innovative and adaptive capability. Financial management. People and talent management. Operational excellence. Effective and transparent communication. goals, it argues, can be achieved by ensuring that professional accountants gain exposure to key areas of the organisation, such as sales, customer services, marketing, operations, and research and development. The brochure can be used to promote the roles and competencies of professional accountants to their employer and colleagues. C&V’s overview of the key areas of competency that are expected is also a very useful tool to help accountants determine the relevant education and training needed to support their personal career aims. The diagram above right, The Roles and Domain of the Professional Accountant in Business, sets out this overview more clearly. THE RIGHT MINDSET FOR ACCOUNTANTS IN BUSINESS According to C&V, to remain relevant the professional accountant needs a mindset embracing the following five key areas: CORBIS 22 MAY 2012 FINANCE & MANAGEMENT
GENERAL STRATEGY THE ROLES AND DOMAIN OF THE PROFESSIONAL ACCOUNTANT IN BUSINESS PERFORMANCE PAIB AS CREATOR OF VALUE PAIB AS ENABLER OF VALUE CFO/FD, CONTROLLER, MANAGEMENT ACCOUNTANT, BUSINESS ANALYST PAIB AS REPORTER OF VALUE PAIB AS PRESERVER OF VALUE CONFORMANCE 1. PROFESSIONALISM AND ETHICAL BEHAVIOUR Professional accountants should uphold high ethical standards in accordance with the Code of Ethics for Professional Accountants and, for ICAEW members, the code of ethics which can be found at icaew.com/en/technical/ ethics/icaew-code-of-ethics. They also have an important role in driving and supporting a high standard of ethics across the business and fostering a values-based organisation, such as that outlined in IFAC’s guidance Defining and Developing an Effective Code of Conduct for Organisations. 2. PROFESSIONAL JUDGEMENT This is a differentiating factor for high-performing professional accountants. This includes balancing organisational nimbleness and quick and intuitive decision making with a need for making decisions based upon evidence. 3. ORGANISATIONAL AND ENVIRONMENTAL AWARENESS Professional accountants can be expected to perform as integrators and navigators by linking functional disciplines and organisational units, as well as facilitating a common and unifying view on business models and key success factors. Organisational and environmental awareness and understanding are critical in helping them to perform these roles and to reconcile the detailed aspects of operational performance with the strategic aims. 4. INVESTOR AND WIDER STAKEHOLDER FOCUS Professional accountants, particularly those in CFO/FD roles, can be expected to lead in managing relationships with investors, other funders, and regulators. They can also bring a wider stakeholder perspective into the organisation and challenge managers to ensure risk and performance are managed in the long-term interests of various stakeholders. 5. ADAPTABILITY TO CHANGE, UNCERTAINTY, AND COMPLEXITY Professional accountants have to be able to adapt to changing circumstances and apply professional skills and judgement to often ambiguous and imperfect information. Whether creating, enabling, preserving, or reporting sustainable value, the role of a professional accountant at all levels has evolved into one focused on managing uncertainty, complexity and strategic decision-making, within an overall context of heightened focus on implementing effective governance, risk and control. Stathis Gould is head of Professional Accountants in Business (PAIB) service delivery at IFAC stathisgould@ifac.org IFAC AND THE PAIB IFAC is the global body for the accountancy profession, dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC comprises 167 members and associates in 127 countries and jurisdictions, representing roughly 2.5m accountants in public practice, education, government service, industry, and commerce. The PAIB Committee serves IFAC member bodies and professional accountants worldwide who work in commerce, industry, financial services, education, and the public and not-for-profit sectors. Its aim is to promote and contribute to the value of professional accountants in business by increasing awareness of the important roles professional accountants play, supporting member bodies in enhancing the competence of their members, and facilitating the communication and sharing of good practices and ideas. FINANCE & MANAGEMENT MAY 2012 23
Page 1 and 2: ISSUE 199 MAY 2012 icaew.com/fmfac
Page 3 and 4: ty with five of your guests. Get a
Page 5 and 6: “STARTING OUT IN A DIFFICULT ENVI
Page 7 and 8: NEWS News on the financial front CO
Page 9: Faculty events EVENTS Strategic dec
Page 12 and 13: FINANCE & MANAGEMENT 10 MAY 2012 FI
Page 14 and 15: FINANCE & MANAGEMENT poor as ever,
Page 16 and 17: FINANCE & MANAGEMENT 14 MAY 2012 FI
Page 18 and 19: FINANCE & MANAGEMENT for certain go
Page 20 and 21: FINANCE & MANAGEMENT When the going
Page 22 and 23: FINANCE & MANAGEMENT both ways’.
Page 26 and 27: FINANCE & MANAGEMENT Finance profes
Page 28 and 29: FINANCE & MANAGEMENT How volunteeri
Page 30 and 31: MAY 2012 CORPORATE FINANCIER FINANC
Page 32 and 33: FINANCE & MANAGEMENT FINANCIAL REPO
Page 34 and 35: FINANCE & MANAGEMENT Mission contro
Page 36 and 37: 15-20years years the average strate
Page 38: members only FREE METALLIC PAINT AN

Hit the road Positive leadership for troubled times - ICAEW

Create successful ePaper yourself

Delete template?

Save as template?