Download PDF of Issue 92 - Government Finance Profession

theGASETTEAUTUMN 2006 NUMBER 92The magazine for Government Finance ProfessionalsHelen Kilpatrick…at home atthe Home OfficeInside | Are you world class? | Managing change | Effective communication

ContentsSeaside specialWELCOME to Gasette 92. Thankyou to everyone who attended andcontributed to the success of the GFP– Trainee Conference, which tookplace in Bournemouth in June. Asalways it was great to see you allthere and know that you got so muchout of the event.Our Financial Management (FM)training programme was formallylaunched on 10 October with ahigh-profile event at HM Treasury – see inside for details. We’redetermined to show everyone in government that ‘Finance Matters’,and we’ve now briefed a good many HR and Learning andDevelopment managers to help us deliver the FM training for ournon-finance colleagues in all departments.We’re now building up to our main conference in Brighton on16 & 17 November, and you’ll find articles in this edition from someof the speakers. Martin Evans writes about world-class financialmanagement and there’s a topical article from Tim Dunmore onCommunications and Marketing. Our FinanceDirector in profile this time is Helen Kilpatrickfrom the Home Office, as featured on our frontcover.Every year our main conference gets biggerand better. This year is no exception and if you’dlike to make Brighton rock please see ourwebsite http://thegfp.treasury.gov.uk for moreinformation and to access the online bookingform.In 2007, the GAS/GFP will be formally celebrating its 25th year. I’dreally like to hear from any readers who have been involved sincethe beginning so that we might do a special feature in a later edition ofyour magazine. See you next time.Terry Rogers, EditorABOUT GASETTE # 92Send your comments to: Terry Rogers, Gasette Editor, Room 1/W2, HM Treasury,1 Horse Guards Road, London, SW1A 2HQ.Telephone: 020 7270 5874 (GTN: 270 5874). Fax: 020 7270 4545 (GTN: 270 4545).E-mail: gasette@hm-treasury.gsi.gov.uk.VIEWS EXPRESSED IN GASETTE ARE NOT NECESSARILY THE OFFICIAL VIEWSOF THE GOVERNMENT FINANCE PROFESSION OR HM TREASURYEditorial services provided by PQ Magazine. Production by Armstrong MediaPrinted by Holbrooks Printers, PortsmouthARMstrongMEDIA04 NewsA round-up of news and events060708091012141618Institute newsAll the latest about what’s happening at theaccountancy bodiesFinancial ManagementAUDIT COMMISSION VIEWManaging Director, Audit, Martin Evansasks the question: are you world classShared servicesECONOMIES OF SCALEPeter Morley highlights some of the keyissues you need to take into account whenconsidering shared servicesBreaking down the barriersPORTABLE QUALIFICATIONSToday’s accountancy qualifications aremore portable than they’ve ever beenCommunication & marketingA DIFFICULT SKILL?Tim Dunmore of the Cabinet Office onthe importance of effective communicationCover storyLIFE AT THE HOME OFFICEProfiling finance chief Helen Kilpatrick, whobecame an accountant “by mistake…”Preparing for examsTRAIN YOUR BRAINWhy it’s vital that you exercise your greymatter in the run-up to the examsChange managementTHE FIRST PRINCIPLESChange management is becoming a musthavecapability for financial managers; plus,staying Lean will boost your departmentProfessional developmentLIFE AFTER EXAMSPlanning is everything in your career21 FReM/FRABMID-SUMMER MURDERUpdate from David Watkins22Fun and gamesThe lighter side of life – and workautumn 2006theGASETTE 3

NewsFinance Skills for All launches“Finance Skills for All” was officiallylaunched on 10th October, in line withFinance being one of the core skillsunder the Professional Skills forGovernment (PSG) initiative beingrolled-out throughout the civil service.The Government Finance Professionalong with their partner the NationalSchool of Government launched theproject at a high profile reception heldat the Treasury’s Horse Guards Roadpremises.Geoff Russell, Director of Financialby Permanent Secretaryto the Treasury NickMacPherson and theChief Secretary to theTreasury, the Rt HonStephen Timms MP.MacPherson toldaudience members thatthey were “missionarieswith the job ofpromoting the message”of “Finance Skills for All”- and he asked them toChief Secretary to the Treasury Stephen Timmsextols the merits of Finance Skills for AllMary Keegan said that taking a ‘topdown’approach to spreading the wordabout “Finance Skills for All” was vital.Leaders in HR, Learning andDevelopment and Finance shouldembrace the initiative. “Together wemust make this work,” she said. “Weneed a sustainable marketingcampaign.”Jane Grant of the National School ofGovernment told the audience thateach department has been assigned aStrategic Relationship ManagerManagement Change at HM Treasury,outlined two steps for acquiring thefoundation and intermediate levelknowledge for PSG financialmanagement core skills. In addition,there is a series of Master Classes thatenable those aspiring to Grade 7 or theSenior Civil Service to practise a rangeof relevant core skills through businesscase studies.At the launch, a packed house ofTraining, HR and Finance Professionalsfrom across government was addressedrise to the challenges of making thishappen.Stephen Timms said it was vital thatthe initiative worked, especially giventhat the strings of the public purse werelikely to be tightened in the wake of theComprehensive Spending Review. “It isvital that government improves servicesin a tighter fiscal environment,” saidTimms - and “Finance Skills for All” wasa way of delivering this. Thegovernment spends £500 billionannually, owns £700 billion in assets andthe public sector as a whole accountsfor 40% of GDP. Efficient roll-out ofpolicy is imperative, and financial literacyis crucial,” he said. “This is more thanjust good house-keeping it is animportant issue of trust,” he added.“Finance Skills for All provided aninvaluable way of measuringperformance.”Managing Director of theGovernment Financial Managementdirectorate at the Treasury and Head ofthe Government Finance Profession,providing a personal point of contact atthe National School. They would workwith departmental representatives toidentify and resolve their organisation’slearning and development needs.All the contact details are available atthe National School’s website atwww.nationalschool.gsi.gov.uk. Grantadded that the National School wasproviding the “capacity and capability toupskill all staff in financial management”.• See page 7 for details about howFinance Skills for All worksThe GFP presents:The Qualified Finance Professionals’ Conference16 & 17 November 20062 days at the Hilton Metropole Hotel, BrightonOver nine hours of structured CPDTop speakersGreat networking opportunities!It all adds up to the best conference you will attend this year!Among the speakers are Martin Evans, Managing Director, Audit Commission; Geoff Russell,Director of Financial Management Change, HM Treasury; Jon Thompson, Director General,DFES; Eric Anstee, CEO, ICAEW; Helen Kilpatrick, Director General Finance, Home OfficeA big thank-you to the conference sponsors:Book online at http://www.thegfp.treasury.gov.uk4 theGASETTEautumn 2006

NewsTelling ithow it isThe Ministry of Defence’s 2005/06Annual Report picked up a prize at theBuilding Public Trust Award recently for‘Telling it how it is’ in the public sector.The awards are presented by PwCand the National Audit Office andcelebrate the commitment of the UK’slargest corporations and public sectorbodies to build public trust through theircommunication of the key building blocksof sustainable performance.The judges said that MoD’s report andaccounts was: “A long but accessibleannual report written in a highly readablestyle, with interesting detail providedthrough case studies.” The report used acolour-coded balanced scorecard, whichaided navigation and gave acomprehensive overview of what theMoD is all about. The judges continued:“In any other country in the world webelieve you would get nothing like thislevel and quality of disclosure from itsPraised: John Thornton, MoD’sHead of Finance Professionalismequivalent government ministry.”Bill Jeffrey, Permanent Under Secretaryof State, was delighted by the win. Hesaid: “It’s not often we are acclaimed forpublicly telling it how it is.”Trevor Woolley, the Finance Director,further endorsed this huge achievement,commenting: “The team, by which Imean all those involved in the productionof the report and accounts as well as thecentral teams headed by John Thorntonand Mike Venables, have shown trueprofessionalism in producing this report.”He stressed that the challenge remainsin achieving this level of performance infuture years and maintaining thereputation of MoD as the standard-setterfor the production of accounts.New special interest groupA special interest public sector group has been launched by the ICAEW to supportits 8,000 members who work or have an interest in the public sector. The groupwill be supported through a new strategic agreement with CIPFA.Members who join will receive a subscription to CIPFA’s Public Finance magazineand access to technical information by TISonline.In addition, ICAEW members will be eligible for special discounts on a range ofCIPFA products courses and events.ICAEW chief executive Eric Anstee explained as an institute that “we have a lot tooffer the public sector from our broader membership working in business andpractice”. He felt the new public sector group demonstrates the institute’scommitment to the sector. It also reinforces the ICAEW’s strategy ‘to align moreclosely with members’ careers and embrace the full breadth of the profession’.The ICAEW is offering a free trial to the service in October, after which it will cost£96 plus VAT for a year’s membership.Get protectionIt is estimated that fraud is a £16 billion‘business’ in the UK alone, so the needfor organisations to protect themselvesfrom the dangers it poses has becomeparamount.In a joint initiative CIPFA, the NHSCFSMS and the Audit Commission havedeveloped a step-by-step guide tocountering fraud and corruption. Thethree partners hope the guide will helporganisations to ask the pertinentquestions – the answers to which willhelp them establish firm foundations fortheir anti-fraud frameworks.The publication is being described asthe UK’s first professional framework forcounter fraud work. ‘Actions to CounterFraud and Corruption’ will be sent to themanagement boards of the UK’s toppublic organisations.You can also download a copy atwww.cipfanetworks.net/governance.autumn 2006theGASETTE 5

Accountancy body newsAATCPD GOES COMPULSORYFollowing a massive consultation programmewith members, employers and otherstakeholders, the AAT has announced it isintroducing a new mandatory CPD policy. TheAAT said the newpolicy will provide allmembers with amore effectiveapproach to their professional learning and careerdevelopment. The new CPD policy will bemandatory for all members in practice and fellowmembers elected since 1998 from 1 January2007 and all other full and fellow members from1January 2008.WORK IT OUTThe AAT has released research showing thatvocationally trained AAT students, who begantheir course after finishing school at the age of 18,will be £55,000 better off than their graduatecounterparts by the time they have completedtheir degree (21 years of age). AAT CEO JaneScott Paul said: “What a student earns is largelydown to the individual, and rising stars will berising stars, whether they go to college oruniversity. What we hope to show through thisresearch is the benefits of a college education thatare sometimes overlooked; £55,000 is asignificant sum. With many of our studentsprogressing on to become chartered at the samepace or even quicker than graduates, this moneycould be seen, for some, as simply an extra.”ACCAGO INTERNATIONAL NOW!The ACCA has called for international standardsto replace UK GAAP. The Association said thatinternational standards should be the basis for allaccounts prepared in the UK ‘as soon as ispracticable’. Responding to the AccountingStandards Board’s consultation on futurereporting requirements, the ACCA said it wasnot possible to maintain the current threeregimes. Listed companies are using internationalfinancial reporting standards; a large number ofother companies are using UK standards; andfinally there is FRSSE for small businesses. TheACCA argues that once the InternationalAccounting Standards Board’s ‘SME project’ –which will produce a set of standards for smalland medium-sized enterprises – is agreed thenthe whole UK accounting system should gointernational.CIMATHE ROAD TO SHANGHAICIMA has formally launched its Chinarepresentative office in Shanghai. The Institutestarted working in China a couple of years agoand since the day of entry it says it has ‘beengrowing steadily’. CIMA has already establishedexam centres in Shanghai, Beijing andGuangzhou to meet customer demand.SHAPING THE FUTURESo how do key economic and political driversinfluence the global economy of the future? Thisis one of the major themes of this year’s CIMAannual conference on 9 November 2006.International economist Dr Steven Fries, fromRoyal Dutch Shell, will be the man leading thatdebate. To complement Dr Friers’ internationalperspective on the global economy of the future,the impressive line-up of speakers includes IanPearson, Futurologist BT; Philippa Foster-BackOBE, Director, Institute of Business Ethics; andBarbara Moorhouse, Director, General Finance,Department of Constitutional Affiairs. If you wantto find out more call 020 8849 2244 or book atwww.cimaglobal.com/cimaannualconference.CIPFACALL FOR GCSE IN FINANCEGCSE students should be given the chance tostudy finance, says CIPFA. While 14- to 16-yearoldscan take GCSEs in business studies, law andengineering, a basic finance qualification, withwide vocational potential, is sadly lacking fromschool syllabuses. Citing the growth in popularityof the law GCSE in recent years, CIPFA arguedthat the appetite exits for more career-focusedsubjects. The growing sophistication andcomplexity of businesses and organisations makesany knowledge of financial systems andprocedures an important asset in the job market.CETC CELEBRATES 20 YEARSThe CIPFA education and training centre (CETC)recently celebrated 20 years of continued andunparalled success with a lunch reception for allthose involved. Set up in 1986, the college todaysupports many hundreds of students each yearthrough courses offered at its locations inLondon, Birmingham, Bristol, Edinburgh andCardiff. The head of CETC, Gary Gilbert, saidthe strength of the college lies in its “enthusiasm,commitment and dedication”.Gilbert: twodecades tocelebrateMoorhouse:speaking at theCIMA ConferenceICAEWA CLOSED SHOPThe ICAEW has said it is disappointed that thereport of the Joint Committee on the draft LegalServices Bill does nothing to help open up themarket for UK legal services to greatercompetition. The Institute felt that the legalprofession will remain a closed shop and the draftcould be seen as ‘protectionist’, even anticompetitive.In a written and oral submission tothe Joint Committee, the institute called forchartered accountants to be allowed to provideprofessional advice in areas spanning legal andnon-legal areas such as non-contentious probateand trusts without being subject to any additionalregulatory burden.ICASRECOGNITION MOVESICAS has again urged the Department of Trade &Industry to look seriously at recognition for theterm ‘accountant’ following moves in Ireland.Legal recognition moved a step closer in Irelandfollowing a statement from Irish trade ministerMichael Ahern that there is merit in the statutorydefinition of the profession. It would mean thatonly properly qualified and regulated practitionerscould describe themselves as accountants.Outgoing ICAS chief executive Des Hudson saidthe Irish statement was significant in advancing thearguments forsimilar protection inthe UK. He said:“Let’s be clear –protecting the termaccountant isn’tabout protectinginterests of theprofession, it is firstand foremost aboutprotecting the public from unregulated andunqualified cowboys who are currently able todescribe themselves in the same way as ourhighly qualified CAs. We would urge the DTI toconsider very carefully whether that is a situationthat can be sustained.”PRINCIPLES NOT RULESA principle-based approach to standard setting isnot only desirable but essential, according toICAS’ publication ‘Principles Not Rules: AQuestion of Judgement’. The report said that ifstandards are to serve the needs of business andthe public interest they cannot be achieved by adetailed rules-driven approach. It is believed thatprinciples-based standard setting will require achange in the global profession. Prepares andauditors will have to accept a range ofjudgement-based outcomes. So what is wrongwith rules-based accounting? It adds unnecessarycomplexity, encourages financial engineering anddoes not necessarily lead to a ‘true and fair view’or ‘fair presentation’.6 theGASETTEautumn 2006

Financial managementPromoting world-classfinancial managementMartin Evans reports on how the AuditCommission set about identifying world-classperformance in different aspects of financialmanagementLAST NOVEMBER, the Audit Commissionpublished a discussion paper on ‘World ClassFinancial Management’. We owed the title to theTreasury which, in a Technical Note for its PublicService Agreement 2005-2008, had set out itsobjective ‘to achieve world-class standards offinancial management in government’. The AuditCommission welcomed this objective, but it wasalso intrigued. What do we mean by suchstandards (they are certainly not written downanywhere) and how would we recognise themin practice? So we teamed up with PricewaterhouseCoopersto identify world-classperformance in different aspects of financialmanagement, with case studies drawn from theprivate and public sector around the world.The resulting paper focuses on the five keythemes of strategic financial management, withwhich public sector bodies’ boards (or theirequivalent) and top management teams need toengage most directly: financial governance andleadership; financial planning; finance for decisionmaking; financial monitoring and forecasting; andfinancial reporting.Evans: positiveresponse todiscussion paperThe extensive literature suggests that there is abroad agreement about the basics. But whatdistinguishes world-class performance – andthereby serves to define world class standards offinancial management – is how these principlesare applied in practice. They are fully embedded,and basic routines and processes are carried outquicker and more frequently. That is thechallenge that faces the public sector.We also found that the quality of financialgovernance and leadership within an organisation– the tone from the top – is critical to achievingworld-class financial management. It is the overallfinancial culture of the organisation that reallymakes a difference. The whole organisationneeds to recognise that it has collectiveresponsibility for financial matters, and that it isnot just the responsibility of the FD and thefinance department. Top management needs tobe financially literate and fully understand thefinancial environment in which the organisationoperates.The paper was intended to stimulatediscussion across the public sector about whatstandards of financial management the publicsector should aspire to over the longer term, andwhat achieving world class standards of financialmanagement would mean in practice.The responses to the paper have been verypositive and show a real appetite to understandbetter the process of, and the barriers to,improvement in this area. So, working with ourkey partners, such as the Treasury, the NationalAudit Office and the professional bodies, theCommission now aims to build on the ideas inthe paper and develop a series of more practicalstudies and guidance on particular aspects offinancial management to drive up standardsacross the public services. Martin Evans is Managing Director, Audit, at the AuditCommission. He will be speaking about theCommission’s work in this area at the GFP Conferenceat Brighton on 17 November.Finance Skills for All: how it worksTo enable you to enhance your financialmanagement skills, regardless of yourposition within the Civil Service, theGovernment Finance Profession and theNational School of Government havecome together to create a unique schemeto set you on your way to meeting therequirements of Financial Management asa Professional Skill for Government.“Finance Skills for All” is basically a twostepprogramme with a Master Classoption at the end of it aimed at thoseaspiring to Grade 7 or the Senior CivilService.Step one has been christened “lovelearning”.It is a free foundation levele-learning scheme comprising of 10modules that can be completed byanyone within the Civil Service in up toeight hours.Every module has a self-assessmenttool, and if you already have the skillsrequired, you can skip a module andmove on to the next one.Step two addresses the intermediatelevel.On completion of Step one “lovelearning”participants can undertake aseries of half-day, face-to-faceprogrammes that build on and reinforcefoundation level knowledge. Theintermediate modules are:• Resource based management (1).• Resource based management (2).• Financial planning and control.• Business planning.• Budget management.• Performance indicators.• Investment appraisal.• Interpretation of accounts.• Market economics.• Corporate finance.As the National School of Governmentpromotional literature puts it: “Lovelearning”is a tailormade start to ongoinglearning with the aim of boosting financialcompetency and skills service-wide. It’sflexible, it’s friendly and it’s free.” Go tohttp://lovelearning.nationalschool.gov.ukfor further information or e-maillovelearning@nationalschool.gsi.gov.uk. autumn 2006theGASETTE 7

Shared servicesPeter Morley highlights someof the key issues you need totake into account whenconsidering shared servicesTHE PUSH towards sharing more services inGovernment has been around for some timenow. The initiative is about saving money forfront-line services through more efficient supportservices and achieving ‘economies of scale’ acrossthe piece.However, the strategic solution for anorganisation is not a trivial issue. Once the abilityto deliver is handed over to a service provider,there will be future issues when yourorganisation needs to change; therefore carefulconsideration of whether and how to implementshared services is of paramount importance.Here we look at some of the key strategicissues organisations need to take into accountwhen considering shared services as a means ofachieving efficiency savings.ECONOMIES OF SCALEEconomies of scale can be achieved in a numberof key areas. When looking at sharing services it isworth being clear where these economies arelikely to arise in the new relationship.The key areas include:Technical provision• This is the technical hosting of the computerhardware, its operation and maintenance and itstransmission to the desktops of users. For themost part this is probably a support activity notrelated to the business of your organisation.• If you are entering a shared service you mustensure that this is sufficiently robust in everyrespect to meet your demands.Clerical service provision• This is about the people who make the systemright for your organisation. This starts with theUser System Administrator who manages themain parameters, structures and systemtimetables, through to clerical operators whoenter and enquire on information pertinent toyour daily needs.• If you are entering a shared service you mustmake sure that your business needs areadequately represented by these people.Functional reach• This is about making the system do as muchfor you as it can - the goal of one integratedsystem covering as much of your business as ispossible.• If you are entering a shared service, make sureall the areas you will want, now or in the future,are available - being the sole sponsor of afunctional area within a large service is a difficultand potentially expensive place to be.OUTSOURCING OR SHARING?It is important to be clear about whether you arelooking to share or outsource a function. TheseCan youbear toshare?are superficially similar, but really quite differentrelationships. Which arrangement you preferdepends on the following:• Strategic direction: do you wish to retain someresponsibility and ownership of the service, partor all of which could be your core function?• Risk transfer: do you recognise the risks ofownership and are looking to buy some securityby making use of a service which is more robustand better than anything you could provideyourself?• Commercial contract or simple agreement?Do you wish to be protected by a legal contract,with realistic remedies for poor performance, orby a ‘Service Level Agreement’ withoutcontractual teeth but sufficient to monitor andmanage performance?• Are you looking for a peer to peer relationship?– Will you be carrying your own weight in theshared relationship?– Are you concerned about getting your voiceheard or does it only matter that you get theservice you have contracted for?Sharing is about partnership. As such bothpartners in the relationship should be contributingin varying measures and sharing risks andresponsibilities. If instead, you are intending totransfer risk and responsibility to a third partyprovider, then an outsource arrangement can bea better option for you.PROVIDER OR CUSTOMER?Provider: do you know your obligations? Whenthe shared services topic is first raised, it is naturalfor organisations to think of sharing their ownservices with others. It is much easier andpossibly more exciting to think of growing abusiness on the back of your own, and havingthe ‘high class problem’ of coping with success.In reality being a provider can be far moreonerous than first impressions may suggest.There are many responsibilities which comeattached to the role. A good reference point isthe OGC ‘Managing Services Introduction’ topicon the OGC website.As a provider it is important that you are ableto offer all the qualities of service that customersexpect. These include making sure the service isavailable, has the necessary capacity andperformance, has mechanisms to cope withchanges and so on. In addition the system andservice must be kept on the technical upgradepath where you may be carrying customers overthe often complex routines involved in systemsupgrades, whilst still providing an excellent serviceat a competitive price. This can be challenging tomost organisations.Customer: how do you choose the rightprovider? If you decide to be a customer in ashared service arrangement, the choice of theright provider is crucial. The provider must matchyour business needs and future intentions in acomplementary manner.In technology terms, this goes way beyondthe actual system they may be using and extendsto how they are using it; i.e. the providerchooses the system, the way it is configured towork, the strategy for the future, the servicequalities and so on. As a customer you need tofind the right provider and system for yourspecific needs and circumstances.CONCLUSIONShared services can be an effective way toachieve efficiency savings. But before enteringinto such complex relationships you need to:• Be clear about the objectives to be achieved.• Have a strong business case.• Be realistic about your responsibilities; whetheryou are a service provider or a customer.• Be clear as to the nature of the arrangement,i.e. whether you are in fact looking to outsourcerather than share.Therefore when considering whether toenter a shared service arrangement, make sure itcan support your true business needs now and inthe future. Peter Morley is a Director of Insight. Contact him on020 7952 4690; or at petermorley@insightmsc.co.uk8 theGASETTEautumn 2006

Career choiceBreaking downthe barriersToday, accountancy qualifications are more ‘portable’ than they have ever been.Gwen Cheeseman looks at how the demarcation lines have been re-drawn,making accountants everywhere more mobile – whatever your certificate saysIT HAS long been the tradition that certainaccountancy qualifications lead inexorably tocertain areas of work. And for many in theindustry, your qualification puts you in a box - forexample, CIPFA or CIMA might place you firmlyin the public sector or industry respectively, whileICAEW and ACCA are the route to practice andthe Big 4. Happily, things have changed. All thesequalifications can now take you to any sector youwish - your career success is down to yourability, not your choice of accountancy body.After all, it’s your skills employers should beinterested in.Nowhere is this showing more than in thepublic sector, where as well as recruitment fromwithin the sector, there is also high demand forprivate sector experience both in interim andpermanent roles. This is because commercialaccountants have relevant project experienceincluding systems implementation, setting upshared service centres, restructuring, efficiencyand costing. They are perceived to be moreoutcome-focused and target-orientated.Andy Robling, director – public services atHays Accountancy & Finance, comments: “Weran a major recruitment campaign for theDepartment for Work and Pensions (DWP)earlier this year, where a large number ofcandidates from elsewhere in the public sectorand the private sector were successful. We sellthese roles on the basis of changing structures,environments and a lot of opportunity. Salaries inthe public sector fall behind those in the privatesector even at qualified level and at FD levelthere is no comparison. However, there are stillpeople (especially from practice) who valuemore emphasis on work life balance and we’veused this theme when recruiting for HMRC.Benefits packages are better in terms of pensions,holidays and flexible working but obviously noton car allowances or performance bonuses.”So moving from the private sector into centralgovernment can be due to these differences,when employees become discouraged with theculture of long hours for example. But it can alsobe due to the position, where a potentialcandidate can see a different and perhaps morechallenging route than is currently available tothem in their private sector employment. Butmore likely it is a combination of both – achallenging new role and a chance to experiencea different sector and work culture. A currentcentral government employee who has madethis move agrees, saying: “I decided to move intogovernment for two main reasons: the positionand the sector. The government sector, with itsattention to lifestyle combined with the ability towork for a worthwhile organisation appealed tome. The job itself drew upon my commercialexperience which was very attractive, andthe fact that it was a governance role, whichmatched my masters degree was also a keydetermination.”Craig Pemberton is director, finance andperformance - information managementsolutions at HM Revenue and Customs. After acareer with BT, spent in operational units and atgroup HQ, Pemberton joined the departmentfor constitutional affairs. The move wasprompted by the opportunity for Pemberton tohave a direct impact on an organisation goingthrough a significant amount of change andspecifically the “challenge of embedding bestpractice in financial management”. Now atHMRC, Pemberton has been able to use skills hehad gained in organisational restructuring at BT.When comparing the public and private sector,Pemberton feels that “the public sector has astrong focus on people, but government can stillbenefit from speeding up processes”.And once the move into central governmenthas been made? The test will be whether youcan make a successful transition back. And, asRobling points out: “If the sector can transformitself through world-class financial managementinto efficient, customer-focused organisationsthen there is no reason why you can’t.” • For more information on moving betweensectors go to www.hays.com/noboundaries.autumn 2006theGASETTE 9

CommunicationA difficult skill?Communication breakdown can cause severedamage to your department’s ability to workeffectively, says Tim Dunmore of the CabinetOffice. So are you listening?Professional Skills for Government (PSG) hasidentified communication and marketing as oneof the core skills for the senior civil service (SCS).But what is it? “Difficult” was the way one learningand development colleague put it – many of hercolleagues don’t really understand it or why theyshould have to develop skills in it.When we researched awareness ofcommunication and marketing among SCSlast year we found that confusion was rife.The majority felt reasonablycomfortable with communication asthey understood it: they couldwrite fluently and both briefministers and talk to their staff. Butmarketing was seen as somethingmuch more disreputable – whatprivate sector companies do tosell things to people who don’treally need them.Actually, communication andmarketing is neither of these. It isone skill, not two, and it’s abouthow Government listens and talksto its customers, not just thegeneral public but also nicheaudiences of specialists andstakeholders. It’s about using all thecommunication media available tobest effect to support government’spolicies and services. The finest policyin the world won’t work if peopledon’t understand it.Communication and marketing, likefinance, has its own profession ingovernment and much of our work overthe past year has been aimed atmodernising the way departmentsapproach communication. The Engageinitiative, launched in April 2006 (seewww.comms.gov.uk/engage), is embedding bestpractice from both public and private sectors inthe way departments communicate. In the‘Just as you needmoney and need tomanage it well todevelop and deliverpolicies and services,so you also need goodcommunication’words ofHowell James,Permanent secretary forGovernment Communication: “Engage is apractical set of strategic communicationprinciples, tools, case studies and trainingmaterials. It is designed to develop effectivecommunication solutions to deliver better resultsin the most cost-effective way. The aim is tocreate communication that reaches out andconnects with audiences.”Government communication professionalscan’t do their job in an ever more demandingmarketplace unless they understand theiraudiences and adapt communication – both themedia and the message – to them.Tim DunmoreIt’s no longer good enough to write a pressnotice, arrange a couple of ministerial interviewsand fund a TV advertising campaign. To besuccessful modern communication must makeuse of all the media that reach its increasinglyfragmented audience. Government’s customersmore and more tend to believe people whothey feel closer to rather than either politicians orthe press. A real-life story of an experience inhospital related by a neighbour often carries farmore weight than a lengthy recitation ofperformance indicators.My colleagues and I support professionalcommunicators to maximize the impact ofgovernment communication, but why docivil servants who don’t work in pressoffices or marketing and web teams needto know about it too? Communication issomething a whole department needs tobe aware of – from the clerk in a JobCentre whose dealings with the publicare a crucial part of thecommunication effort to a financedirector who needs to be able tofight for resources for theirdepartment and get vital messagesabout financial propriety andsecuring value for money over tothe rest of the department.If staff don’t understand whattheir organisation is trying to achieveand can’t explain that to the public,there’s little point in spending millionson advertising. As the old saying goes, ittakes 10 minutes to destroy a reputationand ten years to rebuild it.So communication within and by adepartment or agency isn’t just a matter forprofessionals, any more than finance is. Justas you need money and need to manage itwell to develop and deliver policies andservices, so you also need goodcommunication. And that can only be achievedthrough partnership between policy andprofessional communicators, based on mutualrespect and understanding. In the words ofCabinet Secretary Sir Gus O’Donnell: “Weneed... to ensure that communication is at theheart of the policy process”.The popular new course on communicationand marketing we’ve developed with theNational School of Government isn’t designed tomake finance or policy professionals intocommunication experts, but to help them get thebest out of their communication colleagues andso deliver better policies and services. Tim Dunmore is Deputy Director at the GovernmentCommunication Group, Cabinet Office• For further information on the PSG communicationsand marketing initiatives contact Pat Petrie on 01344634293 or at pat.petrie@nationalschool.gsi.gov.uk. Thewebsite is at www.nationalschool.gov.uk/PSGC.10 theGASETTEautumn 2006

Cover storyVariety andthe spice of lifeHome Office finance chief Helen Kilpatrick is no stranger tocontroversy – it seems wherever she’s worked has become a focusfor national debate. And now she’s ended up at the Home Office…Gwen Cheeseman reports on a wide and varied career“I REALLY BECAME a graduate accountancytrainee by mistake,” laughs Helen Kilpatrick,Director General – Financial and Commercial atthe Home Office. So begins the story of hercareer as, what I would imagine to be, one ofthe UK’s most successful accidental accountants.Kilpatrick entered the world of finance afterstudying philosophy and politics at Cambridge.“When I left university I needed to get a job,” sheexplains. “A lot of my friends were getting jobs incivil service, but I thought that that would bedull,” she smiles mischievously. “So I looked atthe Greater London Council (GLC) because atthe time it was very high profile, in the news alot. It was when Ken Livingstone was leader ofthe council at County Hall. And it just happenedto be accountancy trainee day when I went alongfor my graduate interview.” So she signed up.She liked the sound of accountancy, and thoughtit would be interesting. “It could easily have beenhousing trainee day, or transport training day,”she adds. But once she was on the scheme sherealised that she would get a professionalqualification as well as having an interesting job.The three-year scheme at the GLC alsomeant sponsorship to study CIPFA, which shesaw as “a nice additional bonus, and a greatqualification”. On her time studying, shecomments that it was “very varied, and verypublic sector orientated, so very relevant to whatI was doing.” Kilpatrick found the GLC anexcellent training ground. With 500 people in thefinance department, and a well-structuredtraining scheme, she moved through differentareas within finance, gaining as diverseexperience as possible. And of course it was the“good old days of block release”, she explains.“Nowadays I think it’s much tougher whenpeople have to study part-time. But for me,coming straight from university, one of the firstthings I did was go to college for six weeks, so itwas a nice easy transition into working life.”But unfortunately that easy transition didn’trepeat itself once she had finished her training.Kilpatrick qualified in January 1986, and by theend of March 1986, the GLC had beenabolished. Undaunted, she went to work for theInner London Education Authority (ILEA) for ashort while as part of the transition of peoplefrom the GLC, but wanted to do somethingbroader. So she plumped for a job with aLondon borough – Tower Hamlets to beprecise, and was employed as accountant forhousing. “An interesting statistic is that at the time,before the take-off of ‘right-to-buy’ and all thedevelopments in Docklands, Tower Hamlets hadmore social housing than Moscow,” she says. “Sopretty much the whole borough was councilhouses, and housing was the biggest issue for thecouncil.” Staying within the borough, the nextmove was to the post of chief technicalaccountant. “It was at the time when TowerHamlets was decentralising all its services,” shesays. “It was a pioneer borough of localisation ofservices, and so I was working on the financialside of that, which was really interesting.”The borough next on Kilpatrick’s list wasSouthwark - after two years at Tower Hamlets‘I found workingin London reallyinteresting, andexciting to beinvolved in’she joined as assistant borough treasurer, a movewhich gave her wider responsibility. She recallsher employment there being at an exciting time;rate capping was the hot issue. A year later shewas again on the move between Londonboroughs, this time to Greenwich, as controllerof financial services. “It was a broader role, andGreenwich was a very challenging borough.They were suffering from rate capping too. Inthose days Greenwich was being regenerated,and the capping caused financial difficulties.”Kilpatrick worked at the borough for seven years,and during that time had her son and herdaughter, now 15 and 13. After the birth of eachchild she came back to work after taking thestandard maternity leave. She says it was hardjuggling both children and her job, but shemanaged, saying she knew she was “always goingto go back to work”.Looking back on her time with boroughsacross London, Kilpatrick is proud of the visiblelegacies her work has left. “I found working inLondon really interesting, and exciting to beinvolved in. When I worked on the GLC housingprogramme I learned the names of all thehousing estates in London,” she laughs. “Eventoday I’ll be driving around, see somewhere andthink to myself ‘I did the costings for the liftreplacement’. It’s all still there. I can see theeffects of things I’ve done, which is veryrewarding.”Next came a move out of London in 1995, towork for West Sussex County Council. She andher family relocated to Chichester, where she stilllives (although staying in a flat in London duringthe week these days). “I went because a countycouncil is so different to a London borough, itwas on a bigger scale. West Sussex is the tenthlargest local authority in the UK.” Again, Kilpatrickhad to hit the ground running, joining at a timewhen the council’s once expanding budgetbecame subject to government financial controlsand reducing increases in grant. “I helped take thecouncil through that period of financial stringency,shall we say. And at that time I also became12 theGASETTEautumn 2006

Cover story‘I’ve always beenworking on thingsthat are at the top ofthe public’s agenda’Kilpatrick: ‘working onspending reviews from a localgovernment point of view gaveme experience of a number ofdepartments and how centralgovernment works’treasurer of the Sussex police authority, whichwas another different service to be involved in,with a different set of issues. About three yearsafter that I also got the job of deputy chiefexecutive of West Sussex County Council, sothat meant that I had a wider responsibility forthings like performance management across thewhole council. So I was county treasurer,director of resources, and deputy chief executive.But I didn’t just do finance, I did IT, personnel andproperty. My role covered all corporate servicesfor the council.“There was a huge amount of variety. Duringthat time I spent eight years working with thelocal government association as the nationalexpenditure co-ordinator. My role was to makethe case to government for the resources thatlocal authorities needed, working through andwith the politicians. Working on spending reviewsfrom a local government point of view gave meexperience of a number of departments andhow central government works.”After nine years at West Sussex, she arrived ather present role within the Home Office. “Isuppose you could say that one of the themes ofmy career has been that I’ve always beenworking on things that are at the top of thepublic’s agenda,” she says. “So when I was inLondon it was the abolition of the GLC whichwas the big issue, and local services during thetime when the ILEA was being abolished. I’vealways been involved in things that are topical.Obviously, now at the Home Office, our issuesaround law and order and asylum andimmigration are really some of the topics thatconcern the public at the moment. And everyday, in the news, I wake up in the morning andhear about what I’m doing on Radio 4 before Ieven get out of bed!” she says.But joking aside, 17 months into her job incentral government, Kilpatrick is relishing thechallenge and passionate about her departmentbeing the best it can be. The responsibility ofbudgeting the reforms introduced by the newHome Secretary cannot be underestimated, andshe stresses that she feels everything is on targetand that she helping to improve efficiency. Herphilosophy, she says, in any of the work she hasbeen involved in, is to really understand thebusiness you’re in. “You have to know what’sgoing on,” she says. “And in my job, it affectspeople directly. If I don’t do it properly, it shows.”But all in all, not a bad position to be in, forsomeone who walked into accountancy bymistake. It must have been fate. autumn 2006theGASETTE 13

Study tipsTWO WEEKS ago I played squash for the firsttime in three years. There was a time (“when Iwas a lad...”) when I played three times a week –in those days I was fitter, played better and itdidn’t hurt to climb stairs for days afterwards!I am not exactly sure when I stopped playingso frequently; it most likely coincided with a busywork schedule and the arrival of three children.Although I didn’t play as badly as I would haveexpected, the whole experience left mehumbled and rather embarrassed, with myracquet almost ending up in the nearest bin. Tomake matters worse, in an attempt to recapturemy youth I have, probably foolishly, entered acompetition in December (2006!) which willinvolve at least three games in one day.As interested as I am sure you are in mysporting life, or lack thereof, what does this haveto do with learning? Well, although the brain isn’texactly a muscle it does behave in a very similarfashion; use it regularly and it will get better(quicker and stronger); don’t use it and whenasked to perform it will not do so to the best ofits ability. When we were children we learnt at anincredible rate, with the brain acting like asponge. As we get older our busy lives mean wedon’t have much spare time; we do our jobs,domestic chores, spend time with family and tryto have a social life – it leaves very little time tolearn new things. However, like playing a sport(or riding a bike), you don’t forget how to play;likewise the brain will remember how to learn.You just need to get back up to match fitness.If you have been out of the learning game fora while, or feel that you need to improve yourperformance, let me set out a simple workprogramme for you.STRETCHINGStart gently and start soon! Although you mayhave a deadline looming (exams?) by doing toomuch too early you could injure yourself ordestroy your confidence. Conversely, leaving ituntil the last minute will not leave you enoughtime to practice and improve.Begin by reviewing what you have beentaught or studied, and make sure that you canread your own notes! Then, re-work simpleexamples, trying to learn the process. Keep inmind, children remember how to do things wellbefore they understand how it works. Ensurethat you can do the basics before you move on,understanding will come later.Timings: Little and often. I would not (couldnot) play three games of squash in a daytomorrow, but I will try to practise a couple oftimes a week. Likewise, when you are in‘training’ don’t aim to learn for long sessions.Timetable several short study slots into yourweek. Consider all the short periods of time thatmay normally go to waste - train/tube journeys,waiting in queues, the adverts between Lost andDesperate Housewives! Time spent on thebasics will pay dividends later.Squashingin learningAn out-of-breath Gamel Taher explains why it’svital to train your brain in the run-up to the examsTRAININGOnce you are happy with the basics, ie. you canrepeat definitions and work simple examples, it istime to start training. I may be able to hit a squashball on my own, and even hit it back to myself,but I will need to practise playing the game (withsomeone I can easily beat preferably). Whateverit is that you are training to learn for, an exam or apresentation, you need to practise the real thing.At this point, practise at a gentle pace first. Forexams, start to work through questions, but atyour own pace, using your notes. No need torush in – after a bit of training you will get quickerand automatically remember the process.Timings: This part of the process will takelonger than ‘stretching’. As your deadline getscloser you will need to allocate longer studysessions to enable you to thoroughly practice.But remember, it is still important to keep‘stretching’ – keep practising the easy things untilthey are second nature.PRE-MATCH PRACTICEAt some point I will need to play (practise) aproper game, at full speed. You will need to dothe same for your learning – none of this ‘I-willdo-it-on-the-day’attitude. If you haven’tpractised it, you won’t. For exams, you need toprepare yourself for the timings of the questions,ie. in the time allocated, can you read thequestion, understand the requirement andproduce an answer that will be good enough topass? If you have not practised questions to time,you will never know. Practice at least one wholeexam (preferably more) under exam conditions– it is very difficult to concentrate for long periods(up to three hours for an exam) and it is vital thatyou build up your stamina. The first time I playeda competitive game of squash, not only did I lose,but I thought I was going to pass out – before mytournament I must play several games in one dayif I want to avoid hospital treatment.Timings: Obviously, this is the most timeconsuming part of the learning process, and youmust allocate large periods of time for practice.However, you should aim to do this lessfrequently than the previous stages, as if you dotoo many you will eventually tire – remember,you only have to do the presentation or sit theexam once! After each practice to time, changewhat you do; either switch to practise at yourown pace (training) or practise the simple things(stretching). As you get closer to your deadline,the time between each practice session shouldreduce, as you get fitter.SUMMARYLearning is not an event, it is a process made upof several stages. Be reasonable with your targets– you only need to be good in time for yourdeadline, not before. Once you are comfortablewith this idea you can then accept that you willnot be and do not have to be perfect now(nobody expects perfection) – you simply needto be better tomorrow than you are today, andpeak at your deadline. Keep practising. I’m off foranother game of squash – I can feel the painalready, but it isn’t quite as bad as before! Gamel Taher is a tutor at FTC Kaplan14 theGASETTEautumn 2006

Change managementFirst principles forchange managementCHANGE MANAGEMENT is often thought ofas simply being about moving from the currentstate to the future state; transforming the currentsystems, processes and technology to achieve avision of the future. Relevant technical andproject management skills are obviously essentialto underpin any transformational change.Increasingly, however, people have realised thatsuccessful change management is principallyconcerned with motivating people to actdifferently. Often, being people-oriented can be achallenge for finance professionals who haveinvariably been trained or encouraged to be task,or process, or figures-oriented. The real trick isto ensure that people are at the heart of anyreform of systems, processes and procedures.The importance of understanding what makespeople tick is highlighted by a wide range ofresearch into the success (or lack of success) ofmajor change programmes.Business Intelligence research in early 2000suggested that seven out of 10 change efforts thatwere critical to organisational success failed toachieve their intended results.Gartner Group research in 2000 suggestedthat for major corporate systems investments:• 28% were abandoned before completion.• 46% were behind schedule or over budget.• 80% were not used in the way they wereintended to be or not used at all six months afterinstallation.The Gartner research showed that thenumber-one reason for change initiatives to failwas the inability of people to adjust theirbehaviour, skills and commitment to the newrequirements. Ensuring people change,therefore, is key if the benefits of the financialmanagement agenda are to be delivered.Effective change management therefore, is morethan just installing expensive IT solutions or reengineeredprocesses and expecting people toget on with it. It is actually about implementingnew ways of working by supporting andmotivating people to act differently.Almost no one likes losing the sense of controland balance in their lives, which is often whathappens when we are asked to act differently; beit a change in job, a change in role, or even achange in where we sit in the office! A fear of theunknown, fear of failure, fear of theconsequences of success, and the threat ofhaving to make personal sacrifices as the result ofChange Management and the ability to managechange is something that is increasingly beingdescribed as a ‘must have’ capability for financialmanagers of the future. At PKF we call this ‘theneed for financial change management’, but justwhat does it entail? By Phil Trainchange, can all contribute to people beingreluctant to change.The good news for aspiring financeprofessionals is that they don’t need to be clinicalpsychologists to understand their people’sresponse to change in order to be good changemanagers, as nearly everybody’s response tochange is the same (no matter what we claim!).The Change Curve – adapted from Hopson & AdamsESTEEMHIGHLOWDenialEmotionConcernResistanceBargainingUncertaintyDepressionFrustrationAngerTIMEAcceptanceEnhancedperformanceNewself-relianceDevelopingand adaptingWhile the most effective managers will already beattuned to what motivates their people, a rangeof change techniques exist that can help todevelop these necessary skills.These techniques can help the manager focuson open communication, present a softer, morerelationship-oriented psychological presence, andplace less emphasis on tasks, but spend moretime coaching and developing team spirit in orderto address people’s insecurity and resistance tochange. These include:The Change Curve – understanding people’sresponse to changeExtensive research into people’s response tochange has identified that people go through fivephases during the implementation of change:• Initial equilibrium as people either deny, dismissor decide not to worry about the changesproposed;• A downturn as the reality of change sinks in;characterised largely by resistance which canadversely affect performance;• A period of depression, often the lowest point,that occurs between resistance and acceptance,when individuals can feel depressed about leavingbehind what they know and moving toward anew reality;• An upturn, as the change is assimilated as adirect result of specific interventions that allowpeople to adapt to the new situation; and• New equilibrium, a period of renewal, typicallyat a higher level than the initial equilibrium.These phases can be representeddiagrammatically in the ‘Change Curve’ (seebelow left). The extent to which people feelresistance and possibly depression, and thelength of time it takes people to move fromresistance to acceptance and the new equilibriumwill vary depending on the nature of the changes,and on the specific management interventionsduring each phase.The important thing for finance managersinvolved in change is to realise that all people willexperience this response to change. While theamount of time required will vary, all people willneed time to move through the stages, andabove all, all will require relevant, timely andsympathetically delivered information to helpthem assimilate and come to terms with thenature and scope of change.Understanding the effect of communication onpeople’s response to change16 theGASETTEautumn 2006

Change managementPeople’s emotions and the existence (orotherwise) of effective communications collide toillicit three common responses:• Uninformed optimism – as a consequence oflimited information at the start of the change, atypical response might be: “A new way ofworking; that’s not going to have any impact onme.”• Informed pessimism – as a consequence ofmore readily available information as the changecommences, a likely response is: “I can’t believethey’ve changed that; there’s no way I am doingthat”; and eventually• Informed optimism – as a consequence oftailored information at the appropriate timesduring the change, the ideal response is: “Actuallythat’s not so bad; now that we have had achance to see the new way of working I think wecan achieve more than we used to be able to.”For those finance managers still coming toterms with the softer skills required of effectivechange management, experience has shown usthat if they can clearly articulate and communicatethe following four key types of information theycan significantly help accelerate people’sunderstanding and motivation to change.• Dissatisfaction with the current means ofoperating: Without a sufficient level ofdissatisfaction with the way things are now, therewill be no reason for people to want to change.• A clear and desirable picture of the future:What is it about the future that is so bright, thatpeople will want to strive to achieve it?• The capability and competence required tosucceed in the new world: Helping peopledevelop the skills to succeed can play a crucialrole in reducing their reluctance to change.• The first steps: People need to know that thereis an achievable plan and what their role is in thatplan in order for them to confidently take the firststeps.The following equation is a useful aid toremembering these key informationrequirements:D x V x C x F > RD = DissatisfactionV = VisionC = CapabilityF = First StepsIf: D x V x C x F > Resistance to change, thenthe change is likely to be successfulTo some managers, the techniques discussed inthis article will come inherently. For others, beingable to understand and apply core principles ofchange management, and in particular having theconfidence to communicate directly, openly,clearly and persuasively with those affected bychange will significantly enhance theirmanagement effectiveness and, in time, theirability to progress. Phil Train is a principal consultant with PKFBanishwasteandimprove yourperformanceStay Lean and your department and the people init will function better, says Eirian Lewis. Andyou’ll all be able to sleep better at nightHELPING ORGANISATIONS to improvetheir working methods, reduce waste andminimise costs is key to achieving efficiencygains. The use of ‘Lean’ methodology toimprove service delivery is growing, with anincreasing shift in emphasis frommanufacturing to its application in officefunctions. Lean was born in Japan in the late1940s with the development of the ToyotaProduction System. This was analysed in thelate 1980s by Womack and Jones in theirbook The Machine that Changed the World,and the term Lean came to prominence withthe launch of their subsequent book titledLean Thinking.SO WHAT IS LEAN?Lean is targeted at reducing ‘waste’ or nonvalueadded activities as perceived by thecustomer. In this way it rationalises andstreamlines processes to the point that theystill deliver the desired outcomes but with amuch shorter lead-time and greaterproductivity, (eg fewer people, lessequipment line-time). It uses a five-stepframework as outlined below:1. Establish the value of the service asperceived by the customer.2. Map the value stream, i.e. the stepsrequired to deliver value to the customer.3. Remove delays and interruptions to allowthe process to flow.4. Let the customer pull – only supply whatthe customer wants when they want it.5. Pursue perfection.A typical Lean application might be theapproval and payment of an invoice. Insimple terms the value is on-time payment,the value stream the potentially torturousroute that the application currently takes toget through the organization. Flow would bethe hand-offs and in-tray delays, pull might bethe ability to process the application on-line.Pursue perfection might be the developmentof a system of agreed approval levels suchthat only exceptions that fall outside agreedguidelines require any management time.Lean methods can produce dramaticperformance improvements, including:• Faster response times, exceeding targets.• Financial savings of up to six figures.• Staff released for redeployment elsewhere.• Reductions in unnecessary work.• Increased customer satisfaction, withfeedback used to drive further improvement.• Better working relationships withcontractors.• Trained staff within the service able to leadfuture Lean projects themselves.One hears many excuses, such as “we’redifferent,” “my process is too complex”, “ittakes too long to implement”, “it doesn’tmake any sense in my business”, and, “I don’tsee any competitive threat”.The people making these excusesappear to have made a decision to becomenon-competitive. But the challenges youface are not uniquely different. Service andprocess complexity can be managed. TheLean approach (with supportingimprovement tools) provides a balancebetween process and people in ‘equalmeasures’ and deals with each stage of thelife cycle to transform service delivery. Italso recognises the need to measure andunderstand the organisation’s readiness for,and willingness to change. It does makesense and implementing sustainable changecan be achieved much quicker and easierthan you think. Eirian Lewis is a Director of TEAL Consultingautumn 2006theGASETTE 17

Professional developmentIsthat it?finance confessed to being poor at personnelmanagement. Many accountants are accountantsbecause they have a natural affinity to numbersbut not necessarily staff. Unfortunately, normalcareer development involves becoming amanager. It may be that you need to take anhonest look at your development needs in theseareas - your career and the careers of yourfuture staff will depend on it.Professional Skills for Government (PSG):The risk of the formal Personal DevelopmentPlan (PDP) process is that it only consider yourperformance in your current job and ignores thefuture. However, PSG breaks this mould. It givesstaff a clear career path to the Senior Civil Service(SCS) and an associated plan for futuredevelopment. To reach the highest levels inGovernment you must demonstrate the coreskills of financial management, personnelmanagement, project management, show andability to analysis data to make decisions anddemonstrate leadership. It may seem challengingbut as finance professionals you may have anadvantage as a recent Cabinet Office reportshowed that the financial management was thearea of greatest development need amongexisting Senior Civil Servants!You might have passed your exams and gotqualified, but further hard work will pay dividendsin terms of your career development. AndyWilkes outlines the options available to youMANY OF you out there will be studentsstudying for your final exams in November. Theblood, the sweat, the tears. Trying to understandhedging, knowing that because you work inGovernment the closest you will come to ahedge is in your own garden! But what happensonce the envelope comes through the doorsaying you have passed, when the general elationdies away, when the congratulatory cards havehit the recycling box?There is a real risk that gaining yourqualification becomes an end in itself. Manystudents find the thought of further developmentafter their finals unpalatable as the exams are sotough. But to take such an attitude in the CivilService at the moment is to miss a greatopportunity.WHAT ARE MY OPTIONS?Formal qualifications/CPD: The Civil Service hasalways been a champion of personaldevelopment. The opportunity the service offersshould not be underestimated. Being a qualifiedaccountant opened many doors for me but beinga qualified accountant and having a Certificate inTraining Practice (for example) took my careerwhere I wanted it to go. It may be difficult toconsider but another formal qualification may bejust what you need to drive your career whereyou want it to go.Soft skills/People management: In a recentsurvey a significant number of senior managers inPLAN AHEADHaving qualified and having acknowledged theopportunity is there, not only for furtherprofessional qualifications but for careerdevelopment under PSG, it is vital that yourdevelopment is planned. The PDP, or yourorganisation’s equivalent, becomes invaluable.Your CPD as a finance professional is, ofcourse, mandatory and has to be catered for.However, PSG requires you to put morethought into your development than simplyattending training courses. It insists that youdemonstrate your learning against the core skills.You may therefore need to consider morecreative methods for your development such as:• Secondment – within or betweendepartments or even to a private sector firm orcharity.• Job shadowing – rather than going to theextent of a formal secondment, contact a nonfinancedivision and ask if you can shadow theirwork for a while.• Job sharing – it may be possible not to be fullyseconded to a division but to share a job withsomeone else. This is becoming increasinglypossible as departments diversity policiesencourage more flexible working in their staff.So after qualifying, “is that it?” Clearly, theanswer is no. The opportunities are all there - forcontinuous professional development, careerdevelopment and personal development. All youas finance professionals need to do is reach outand take them. Andy Wilkes, BPP Professional Education18 theGASETTEautumn 2006

FReM/FRABWorking through the summerWhile everyone else was basking in the summer sun, David Watkins and histeam were hard at work sweating over the development of FReMWHEN REMINDING me that I needed toprovide an article for this issue of Gasette, theeditorial team commented that “it’s normallydead during August”. So it might be in someways: neither the Accounting Standards Boardnor the Financial Reporting Advisory Board(FRAB) meets during August. But that does notmean that our work stops!We have used the quieter time of summer tocontinue the development of a FinancialReporting Manual (FReM) based on IFRS –announced in the last issue of Gasette. Starting inMay, we have been issuing consultation paperscovering various topics – including intangibleassets; pensions; accounting for governmentgrants; and business combinations.David Watkins‘We wanted to use theopportunity of developingthe IFRS-based FReM to thinkmore carefully about howinformation is presented’The FRAB’s forward work programme hasbeen structured so that standards that are morecomplex or are likely to have a greater impactwill be taken at later meetings. This gives longerfor us to develop proposals and longer for you toconsider them. It follows, therefore, that theconsultation papers we issued at the end of Julyfor consideration at the September FRABmeeting dealt with IAS/IFRS that were lesscomplex or were likely to have little impact. Thepossible exception was IAS 2 Inventories. It wasdisappointing that so few of you responded tothe issues raised in that paper.I said in the last issue of Gasette that wewanted to use the opportunity of developing theIFRS-based FReM to think more carefully abouthow information is presented – and I asked thateach of you, in commenting on proposals, lookat the disclosure requirements in IFRS and saywhether and/or how you think they might beimproved on for your accounts. I urge you torespond to the papers that will appear betweennow and March as we develop the IFRS-basedFReM.We have also continued to consider assetvaluation issues with a group of accountants andvaluers drawn from a wide range of centralgovernment bodies across the UK. The work islinked to, but independent of, the writing of aValuation Information paper by the RoyalInstitution of Chartered Surveyors (RICS) thatprovides guidance on the use of depreciatedreplacement cost (DRC) in carrying outvaluations. Publication of the RICS paper isimminent; once it is available, we intend tofinalise some additional guidance to help youunderstand what it means for DRC valuations inthe central government sector. We will consultyou about our proposals, which will also includechanges to the existing version of the FReM.The Working Group on PFI has alsocontinued its review of issues raised by the FRAB.Comprising the Audit Commission and NationalAudit Office FRAB members, representativesfrom the ‘Big Four’ accountancy firms, andchaired by the Treasury, the Working Group hasmade progress in developing an understanding ofthe approaches the firms use to determine theaccounting treatment of PFI projects. Again, theoutput from the work of this group is likely totake the form of guidance – on which we willconsult.All the work outlined above could have animpact on your accounts. The consultation phaseis your chance to influence developments – souse it! autumn 2006theGASETTE 21

It’s a funny old worldWINANIPODOUR COLLECTIVENOUN QUIZDo you know your collective nouns? You may know that it’s apride of lions, but can you get these?1) A ..........of bats2) A..........of seals3) A..........of owlsAn obesity of elephants…?4) A...........of elephants5) A........of finches6) A.......of gorillasEmail your answers – headed up Gasette Collective Noun Quiz – togasette@hm-treasury.gsi.gov.uk by 1 December 2006.The first person out of the hat with all six correct answers wins ourprize, a fabulous iPod ShuffleAnswers to Gasette number 91 quiz1) Acrophobia – fear of heights 2) Barophia – fear of gravity 3) Climacophobia –fear of the stairs 4) Dikephobia – fear of justice 5) Ecophobia – fear of the home6) Leukophobia – fear of the colour whiteAnd the winner was Saleem Akuji of the CRESuduko challengeHere’s a new Sudoku to challenge the grey matter, along with the answerto the one that appeared in the last issue (Gasette 91, summer 2006)3 1 8 6 7 2 9 5 49 5 4 1 3 8 7 6 22 7 6 5 9 4 3 1 85 6 3 7 2 9 8 4 17 4 9 8 1 6 5 2 31 8 2 3 4 5 6 7 94 3 5 9 6 1 2 8 78 2 7 4 5 3 1 9 66 9 1 2 8 7 4 3 5Lastissue’sanswer6 3 9 8 1 4 5 2 71 8 2 5 6 7 3 9 45 7 4 9 3 2 8 1 68 6 1 3 5 9 4 7 22 4 5 1 7 8 6 3 93 9 7 2 4 6 1 5 84 2 3 7 8 5 9 6 17 5 6 4 9 1 2 8 39 1 8 6 2 3 7 4 5How to measure the economyUK fitness clubs had 53,000 fewermembers in June 2006 compared with2005, a sure sign that rising interest ratesand falling consumer confidence beginsto take hold, says Deloitte’s HeathClubBenchmark. Latest data shows thenumber of people joining health clubshas fallen on average 8 per cent forJanuary to June. The survey found theaverage monthly membership fee stoodat £39.05.Online gambler jailedBookkeeper Bryan Benjafield was beenjailed for five years after he spent a tenthof his firm’s annual turnover on onlinegambling. His bosses had knownBenjafield since he was 17 and onlydiscovered the £1 million theft after itcouldn’t pay a VAT bill. As a bookkeeperhe took home just £16,000 a year, butwas spending up to £17,000 a day on his‘habit’.Just another mythWorking from home is not the utopiamany people believe, according to a newreport. Those who work in their ownhomes often suffer from the threat of‘workaholism’ and a lack of routine. Notbeing able to separate your work fromhome life can also lead to confusion, thereport said.Suffering shrinkage?Stress not only shrinks your brain it alsoages you. Scientist have discovered thatthe brain’s memory, attention and theability to make decisions are all affectedby long-term stress. In fact, these areasactually shrink under the strain. The goodnews is that the damage is notpermanent and exercise can helprejuvenate even the most stressedhuman brain. Meanwhile, psychologistElissa Epel of the University of Californiasaid that stressed people also lookedmore haggard, leading to prematureageing.Days of sickWhitehall staff aregetting sicker!The latest statsshow staff took anaverage of 9.8days off sick in2005, up from 9.1 in2004. Andsomeone hasput a cost on the sickness – £450 milliona year! The former Inland Revenue topsthe absence league table with a 12.6 dayaverage. The average in the privatesector is six days.DJ Derekpresents...He’s an exaccountantwhowears browntrousers and aknitted cardigans– yes, he’s thelegendary DJ Derek. Now 64, the Bristolboy has become a cult hero in the worldof... Jamaican reggae! Derek has acollection of 26,000 reggae and skatracks and has even released a collectionof his favourites – and jolly good it is too!Time to get secureHow often are you doing it, because youneed to do it every month? Yes, we aretalking about changing your computerpassword. Research has discovered thateven IT security professionals aren’t verygood at it. A staggering 15 per cent neverchange their passwords. Another one inthree like to keep it close at hand – on aPost-It note or piece of paper.What is your dream?The Aston Martin is the dream car ofmost Scottish accountants, says the latestpoll by CA Magazine. Not surprisingly,the accountants surveyed also had somegreat advice for fellow Scot, theChancellor Gordon Brown. They said heshould abolish the annual road taxcharge. The tax disk itself should bereplaced by an annual insurance disk,thus making it easier to clampdown onuninsured drivers. The accountants alsosaid the chancellor should then add allthe tax he wanted onto the price of fuel– thus creating a truly green tax systemfor the road.BlackBerries are dangerousNew research has found that aBlackBerry can be as addictive as harddrugs! A top professor went as far assuggesting that, one day, employees willbe able to sue bosses who insisted thatthey had one. The problem is, said theprofessor, people can no longer turn offfrom work. The illness even has aname – Information andCommunication technology(ICT) addiction, apparently.22 theGASETTEautumn 2006