20 careers

not worlds
Your finance career doesn’t have to be restricted
to practice or commerce, as accountants who have
worked in professional services and business explain
to Student Accountant

apart
J
ai Ling Gu was educated as a
philosopher, trained with Kwan
Wong Tan & Fong in Shanghai,
and then moved into industry
where she is now director of supply
chain for Nike China. Laura Iliescu
trained with PwC, spent a while as a
freelance audit and internal control
consultant, then joined the global
financial institution ING Group, and
is now head of financial reporting and
control at ING Romania.
As many student accountants will be
aware, starting your finance career in
practice, before moving into industry,
is not unusual – but neither is the
reverse approach.
David Halsey did his ACCA training
with Colgate Palmolive and Esso,
before joining a four-partner firm, and
eventually going into practice with his
father. After qualifying, Olasunkanmi
Adewale Ogunyomade worked for the
Nigeria Police and the Ondo State
Public Service Commission, before
moving into practice with Adenusi &
Co, where he is now financial services
director. Karl George qualified while
working for an engineering firm,
and then tried a brief stint as an
accountancy lecturer, before starting
his own practice, as well as becoming a
motivational speaker.
Some accountants even find that
their finance career takes them into
multiple roles in both practice and
industry. Take Andrew Steet. Originally
from Malta, the FCCA trained in the
UK and worked in international audit at
Mobile Oil, then held financial reporting
roles across the world for organisations
including the retailer Marks & Spencer
and the pharmaceutical group Corange
Boehringer Mannheim. Steet then spent
a period as a partner at KPMG, before
re-entering industry with roles at Royal
Dutch Shell and Tatweer Dubai LLC,
where he is now chief operating officer.
So, although some finance
professionals (and student
accountants) focus on one particular
environment, and stick with it – only
ever working in practice, never straying
from central or local government, being
dedicated to the not-for profit sector,
or steadfastly refusing to consider
any opportunity outside business
and industry – this does not have to
be the case. Your ACCA studies and
professional qualification will open the
door on a world of choice, and it is
never too late to make a change, or too
soon either.
The opportunity to practice
‘I started my ACCA training in internal
audit with a large nationwide food
retail and wholesale company based in
the UK,’ recalls Andrew Chalmers, but
within a year he was ready to make a
change. ‘All of the stores in the retail
chain were the same as each other,’
he recalls, and this made his work
in internal audit ‘rather repetitive,’
despite the relatively large size of the
organisation, and Chalmers felt that
21
skills transfer
Click here to find out
what employers want from you
public practice could offer more. ‘The
lure of a more diverse portfolio and
greater career opportunities took me to
Deloitte,’ he adds.
Once in practice, the work Chalmers
became involved in was much more
varied, and he stayed with the Big
Four firm for five years. ‘I spent
three‑and‑a‑half years based in
Scotland, working across the UK and
in Germany, and then went to work
with Deloitte in the United States for
18 months,’ he says, and although
Chalmers’ roles were all in internal audit
during his time at Deloitte, there was
plenty to keep him interested – and his
stint in the US also involved providing
support for the external audit team.
But after five years in practice,
Chalmers decided it was time to move
back into industry, and leave the US
for Europe. ‘When you are working in
practice you learn a lot and you learn a
lot quickly,’ he explains, ‘but you don’t
get a really in-depth knowledge of one
organisation and the way that finance
fits in throughout the business.’ This
was something that the now qualified
ACCA was keen to explore, so he
recently joined the internal audit team
at Gate Gourmet, and relocated to
Switzerland.
Because Chalmers stayed in internal
audit as he moved backwards and
forwards between business and
industry the biggest differences he
experienced were cultural. In the US
he found people a lot more competitive
22 careers
than he was used to in the UK and
other parts of Europe, while his new
role in Switzerland has exposed him
to a change in lifestyle and standard
of living, and the need to learn a
new language. ‘The office language
is English, but I am doing my best to
learn German,’ says Chalmers, because
he wants to be able to communicate
more easily outside the workplace.
Unexpected culture shock
David Halsey decided to move from big
business to a small public practice,
shortly after qualifying, for personal
and professional reasons. ‘The idea of
dealing with several clients appealed
to me more than remaining in
industry,’ he says, ‘and I had a vague
idea that I might go into partnership
with my father,’ an accountant with
his own small firm. Like Chalmers,
Halsey experienced some cultural
differences, but they had more to do
with organisational structure than
geographical location.
‘In industry, there was a defined
hierarchy for management and
decision-making processes, and
very defined workloads,’ he recalls,
but within the firm, the (then) newly
qualified ACCA found that the partners
‘each had their own vision and their
own way of working,’ and he had
four equal bosses. ‘You would have
a workload thrown at you for each
one, which made prioritising things
sometimes a political affair as well
as a practical one,’ he adds, and the
lack of a clear hierarchy created other
complications too.
Halsey explains: ‘When my father
passed away I handed in my notice,’
to mixed reactions. ‘One partner
insisted that I work my notice as policy.
However the second partner told me
in no uncertain terms to go home
and look after the family interest. In
industry, this would have gone up the
ladder until it reached a single manager
with appropriate authority, and they
would have decided either way.’ But
the differences between industry and
practice were nothing compared to
the culture shock of taking over the
family firm.
The move from employment to
self‑employment as a small practitioner
is one that many accountants make,
but being your own boss creates its
own special challenges. ‘The City
firm had large clients with limited
personal exposure. However as a
sole practitioner, the deadlines and
demands from clients come thick
and fast,’ he reports. ‘The ability to
juggle workloads becomes vital, and
the personal and the professional can
become hard to separate,’ he adds,
‘and you can find yourself being
messed around by clients in a way that
a City firm just wouldn’t put up with.’
Taking a commercial focus
Though not being able to separate the
personal from the professional can have
advantages as well as disadvantages,
as Cathy Barrow has found, while
simultaneously juggling a career in
practice and the agricultural industry,
where she runs a small farm and a
large contracting business, along with
her husband. ‘I trained in practice and
he started the contracting business,’
explains the FCCA, who used to routinely
put in a 70-hour week, working for both.
‘Until the kids came along I did
about 45 hours in the firm and 25
hours in the business,’ she recalls,
but her involvement in the practice
and the business has made her better
at both. ‘Being an accountant meant
that I could help my husband to grow
the contracting business,’ she says,
by making sure that the necessary
infrastructure was in place. Barrow says:
‘Introducing computer systems made it
much easier for him to chase debts and
expand the business,’ and it now has 18
tractors and diggers, and undertakes
groundwork and farm works.
Back at the rural firm, Davisons, her
hands-on experience of the world of
agriculture has made Barrow a better
accountant. ‘If I had worked just as
a practitioner I don’t think I’d have
developed the business know‑how I
have,’ she says, ‘because there are
a lot of practical things you can’t
understand.’ It is one thing to advise
a business on tax and tell clients what
they should be doing in an ideal world,
but as Barrow adds, ‘I know first hand,
from running a business, that this is
not an ideal world,’ and this has made
her very commercially focused – which
clients appreciate.
‘As the firm’s agricultural manager
I specialise,’ says the accountant,
whose double life as a farmer means
she has a lot in common with her
clients. ‘They like being able to chat
to me about things such as muck, the
weather, lamb quotas, and a host of
other things I probably wouldn’t know
about if I wasn’t also running the family
contracting business,’ explains Barrow.
So, if you find that you are over practice,
unimpressed by industry, or simply want
to try your hand in both, don’t be afraid
to make the change; they are not as far
apart as you might have imagined.
SKILLS TRANSFER – WHAT DO EMPLOYERS WANT FROM YOU?
Your ACCA qualification offers you a solid foundation from which to take your
finance career in any direction. But as your career progresses, some of the
technical knowledge and specialist skills you develop, will have value only in
some areas, or more value in some areas than others, while others are a lot
more transferable. So if want to increase your mobility between sectors of the
profession – before and after you qualify – there are certain things you can and
should do.

If you want to make the transition from practice to industry good people skills
are vital. ‘You will need to be work with people from different disciplines on a
daily basis,’ says Sarah Hunt, a director with the specialist recruiter Equity FD,
and you need to be able to communicate equally well with all of them. The
move can be a big risk for you and any potential employers so she suggests
you ‘think long and hard about why you are moving’, and start to position
yourself as early as possible.

‘Employers like to see that you have an interest in the area they operate in,’
says Angus Braham, of the specialist recruiter McCann Braham. ‘If you want to
move out of audit and into the hi-tech sector or financial services, for example,
it will help if you have focused on audits for technology companies or done
pure financial services audits,’ he says, adding: ‘You need a credible story
about why you want to move into business, or any particular area you have set
your sights on.’

Credibility is also an issue if you want to move into practice from industry.
‘Increasingly, you need to be able to demonstrate business development
skills,’ reports Braham, particularly at the more senior levels, where roles in
practice can be significantly more financially rewarding than those in industry.
‘The need to sell services and generate fee income comes as a surprise to
many accountants,’ he says, ‘but it is more and more part of the job.’
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24 careers

es
ing creativ n’s
ng ha
challeere for Joyce Cia giant
k h
Clic orking at m p ed
w u
profile terpublic Gro
In
 student accountant issue 18/2010
25

red carpet
accountants
HAVE YOU EVER LOOKED AT THE CELEBRITIES ON THE
FRONT OF MAGAZINES AND WISHED THAT YOUR LIFE
HAD A BIT MORE EXCITEMENT? OR WATCHED A MOVIE
AND PINED FOR A MORE GLAMOROUS LIFESTYLE THAN
THE CAREER PATH YOU HAVE CHOSEN MIGHT ON FACE
VALUE PRESENT. FEAR NOT – BETH HOLMES REVEALS HOW
ACCOUNTANCY CAN PROVIDE THE LIFESTYLE OF THE
RICH AND FAMOUS

Y
ou too can have a get in on the action with a finance
career in the media. Not only is the sector among the most
dynamic and exciting, but it also provides accountants with
great opportunities to use their technical skill alongside their
commercial nous.

Typically, the media is represented by is iconic individuals who often

head up global brands; the Simon Cowells, Richard Bransons and
Rupert Murdochs of the world. But behind the headline-grabbing
stars, there are thousands of companies – big and small – in all many
different areas that combine to create a thriving media industry. These
include broadcasting, publishing, new media, advertising, marketing
and PR.

What type of work is there?

Traditionally, the finance functions within media companies have
supported the business by providing core accounting services such as
accounts payable, payroll, credit control, management accounting and
client accounting.
Over the past 12 months there has been a significant increase in the demand for
commercial accounting skills such as commercial analysts who support the business
in terms of developing more sophisticated reporting tools such as WIP (Work in
Progress) tracking, assisting with the bid and tender process for new work, and
trying to add value internally and externally. And if you work your way to the top,
you really do become invaluable to your showbiz clients.

David Blacher is a partner at Baker Tilly and heads up the firm’s media group. ‘I look
after all [the clients’] advisory needs,’ he says, ‘from corporate tax issues to personal
finance. They need a lot of hand holding and for me that’s a key motivation. We are
business advisors.’

So, if you really do believe that there is no business like show business, how can you
get a foot on the ladder of a career in media finance?

‘There’s no replacement for a solid technical accounting base,’ says Rebecca

Sharp, a consultant on the Media Finance Division at Badenoch & Clark. ‘Media
sector experience is also a key for businesses looking to hire with over 50% of
new requirements registered in the past 12 months with candidates with previous
knowledge of the industry.’

‘If you are thinking of entering the sector it may be an idea to do some voluntary
work experience within a media company as this can help you stand out from the
crowd,’ suggests Richard Jaye, manager at Hays Accountancy & Finance.

‘Other key skills preferred by media employers include an in-depth knowledge

of media-specific packages such as Rebus Paprika and advanced excel skills, in
addition to experience of budgeting, re-forecasting, multi-currency work, WIP
and billings. Many media organisations may have partner companies within their
group so evidence of intercompany work is also a plus. In general, accounting
practices are quite similar across most industries and having a strong technical
base partnered with a professional qualification is highly recommended as a strong
starting point,’ he advises.

Creative differences?
Of course, one of the draws of working in the media is also one of the great
challenges of the work. Dealing with ‘media types’; everyone from uber cool ad
men, to brusque PRs, all the way up to the talent. After all, even Lady Gaga has an
accountant.

‘The “creatives” will often have different priorities in terms of improving the client
relationship, delivering a high level of work trying to see the bigger picture. The
finance staff need to be able to empathise with this but still provide a check and
balance to this to ensure that in these difficult economic times the business is still
delivering to the bottom line. In addition, patience and team work are essential for
their success,’ says Sharp.

‘You need to have an understanding of people,’ adds Blacher. ‘The common theme
is that the clients don’t tend to have sophisticated finance functions. They prioritise
creativity. It can be frustrating but it’s the challenge and the fun. More traditional
manufacturing clients would be working with a profit incentive but the vast majority
of the owner-managed, mid-market media companies are driven by the love of the
work first and foremost. They can be temperamental. Our challenge is how not to
come across as a boring accountant.’

One of the sacrifices you may have to make if you choose a media career is that
remuneration still lags behind other sectors, such as financial services.

‘However the gap is narrowing,’ claims Sharp, ‘particularly as the lack of strong
commercial acumen among many of the candidates in the sector drives up
salaries.’

‘It is important to note, continues Jaye, ‘that there is a lot of fluctuation between
companies; larger media conglomerates may offer more competitive salaries in
addition to structured benefits and study packages. Smaller media companies
may not be able to match these salaries or offer time off for study if there is only
one or two in the account team. Working within a smaller company often offers
non‑financial benefits, such as a more relaxed environment and flexibility regarding
working hours.’

There are also fantastic opportunities for those who have taken a less traditional
approach to their finance careers. Baker Tilly has a huge graduate programme
but, says Blacher, is also looking for bright non graduates. ‘We’re trying to mix it
up, and getting people who, perhaps are studying for an accounting technician
qualification. There are real opportunities for good quality school leavers, and it
helps us broaden our horizons as well.’

Baker Tilly is an independent member of Baker Tilly International, a network of

147 high quality, independent accountancy and business services firms across 114
countries in the Americas, Asia Pacific, Europe, the Middle East & Africa.

Recession impact
As with every other industry across the globe, the media sector has been hit by the
recession.

‘Media has been hardest hit in the recession,’ believes Blacher. ‘It’s hit each of the
key strands of our work; TV production houses have had their budgets slashed,
advertisers have seen spending cuts.

‘People have had to make hard decisions. But I think it’s now bottomed out and
it won’t get any worse. All businesses have realigned and improved and the
recession did get rid of a lot of dead wood.’

Less companies does not necessarily equate to less jobs either. ‘As the UK
economy left recession in Q1 2010, hiring freezes have been lifted and many core
roles that were left understaffed have been replaced. The transition from print
media to online content has seen contraction and expansion accordingly,’ says
Sharp. ‘Many of our clients have been focusing on ways to make efficiencies within
their business and a number of project staff have been used to facilitate this. In
larger organisations we have seen the introduction of some shared service centres
which has maintained a steady job flow.’

‘There remains fierce competition for jobs within the larger media organisations,’
adds Jaye. So if you think you’ve got what it takes, why not consider a career in the
spotlight? As Sharp concludes: ’Genuine enthusiasm and a sense of humour go a
long way to securing the dream job.’
challenging creatives
Joyce Chan qualified as an ACCA in 1995 after graduating from the Hong
Kong polytechnic. She worked at Deloitte for four years and then Reuters for
seven years followed by a stint at AT&T.

After applying through Michael Page International, she is now in charge

of the reporting requirements in Asia Pacific at global media giant IPG
(Interpublic Group) and is based in Hong Kong.

IPG is a global provider of advertising and marketing services with revenues

in 2009 of $6 billion (£4bn). With 40,000 employees worldwide and offices
in over 100 countries, it specialises in consumer advertising, interactive
marketing, media planning and buying and public relations.

‘It’s complex work because we have a lots of brands, we need all the
agencies to submit monthly reporting figures which we then consolidate and
comment on fluctuations. We discuss the all the financial issues, and present
our report to the board.’

Joyce agrees that working with creatives can present challenges. ‘There is an
ego and recognition issue,’ she says. ‘You have to give them the right credit.
It’s one of the challenges. We are doing everything by the book. The front
line people are not into rules and regulations, In fact often they are trying
to break the rules. You’ve got to be very strong and understand when to
compromise and when to exercise your discretion.’

The rewards, though, are more than financial. ‘When you see the [company’s]
work, on TV, on an advert, you feel proud. People look at it, and they have
an opinion abut it too. As accountants you would not get that in any other
environment. It gives you a different perspective.’
 26 careers

outsourcing
accountants
When it comes to careers in
accountancy, does outsourced
mean out of mind?

case study: diageo

Click here to find out how the
global drinks giant’s shared service
centre was transformed

case study: IBM scc, malaysia

Click here to find out how
IBM’s shared service centre supports
management in the region

case study: shell

In six main locations, click here
to find out more about the
Shell Business Service Centres
 27

Main picture: global drinks giant Diageo has

offices worldwide, including its headquarters in London

M
any surveys have shown the rationale behind
using either a shared service centre or
outsourced function to improve business
processes. In its 2010 survey of global chief
financial officers, The New Value Integrator, technology
giant IBM found that the use of alternative delivery models,
such as shared services centres or outsourcing, for financial
transaction processing is 69% more common in efficient
finance organisations than their counterparts.

Where the projects have been successful, they will be built

upon. Accenture, in its 2009 review of global shared services,
Achieving high performance through shared services: lessons
from the masters, found that seven out of 10 respondents
with shared service centres (SSCs) planned to expand the
geographic coverage of their SSCs within the next three
years.

Continue to succeed
But this same report highlighted something that needs to
be constantly addressed if the business process outsourcing
(BPO) and SSC movement is to continue to succeed. It said:
‘Shared service centres face a number of challenges once the
migrations are over, including stabilising the service after the
go-live date, establishing a service culture quickly, creating
compelling shared services career paths and building
continuous improvement with material results, regardless of
how the external environment changes.’

In other words, SSCs and outsourcers need to invest in their

people if benefits are to continue to accrue to their ‘parent’
organisations. At the same time, there is clear evidence that
as outsourcing and SSCs mature, the level of work carried out
in these centres will shift up the value chain so that more

> READ MORE

companies will use them for high-value, knowledge-based processes. This presents
both a challenge and an opportunity for those working in such environments.

As Michael Corbett, chairman of the International Association of Outsourcing

Professionals (IAOP), says: ‘Companies are outsourcing to do more than cut costs
but to add value, increase business flexibility and prepare for future growth.’

The IAOP has found that knowledge-based outsourcing is becoming more

important to companies, and the industry is filling this demand. In both the autumn
of 2009 and January 2010, in a survey of its members, more than 40% indicated
that outsourcing at their organisations was increasingly focused on knowledge-
based activities, compared with less than 30% who said they were increasing
the outsourcing of lower-skill-level positions. Arguably, the finance function,
either outsourced or in a SSC, onshore, near-shore or offshore, should lead this
movement, so it is more important than ever to focus on ‘people’ aspects.

There are, of course, socio-economic effects of SSC and outsourcing hubs. Many
cities have benefited from providing the staff for these services, enjoying economic
prosperity.

As Nick Atkin, PricewaterhouseCoopers partner in finance business services, says:

‘There is a significant effect, and it is different by region. In central and eastern
Europe, you see traditional university towns with a growing population of students
who are more aligned to BPO or working in SSCs. You also see the influx of
diversity into these cities, where clients want to have European language skills.’
Atkin cites as examples Prague, Budapest and Krakow, where financially literate
professionals have migrated, working and setting up home there.

However, despite this influx and the availability of local talent, there is still a
shortage of suitably qualified accountants to carry out some of the high-end
functions that SSCs and outsourced functions are looking to deliver. Upward
pressure on salaries, and therefore costs, follows.

‘The story changes in India,’ Atkin says, ‘where the scale of the population means
that those sorts of skills are more readily available. Large BPO organisations are
working with universities a year or two before students graduate to train them
in financial management, and to provide support for talented people. They will
sponsor them through the latter stages of university so they go to work for the likes
of Infosys, Wipro or Genpac.’

But that said, Atkin observes that really good, well-qualified accountants are still
hot property. ‘BPO providers and their clients don’t want to give up individuals very
readily so therefore the price goes up, attrition rates go up, and these can cause
problems for BPO providers and shared services.’

> READ MORE

> BACK TO MAIN ARTICLE
Chris Davies, managing director of Diageo Business Services – the financial shared
service centre for the drinks giant, based in Budapest, Hungary – has seen first
hand the effect the improved financial capabilities can have in a particular location,
and how that can be of benefit to that location. He now argues that cost is not
the driving factor in locating a BPO organisation or SSC in Budapest. ‘Hungary is
starting to get out of the trap of wage arbitrage; it now competes on the quality of
the labour pool,’ he says.

Out of sight?
There is still a concern that once a part, if not most, of the finance function is
moved out of the core operation and into either a SSC or outsourced entirely,
then it becomes out of sight, out of mind – training and continuing professional
development could fall by the wayside, careers are stalled, and opportunities to
move back into the central organisation will be limited, if not non-existent.

Not so, says Jackie Gittins, people and change director at PwC. ‘The large
organisations are doing a lot of things virtually.’ Gittins adds that progress can be
monitored through staff surveys – most high-performing organisations will carry out
surveys at least once a year. ‘Engagement is really important; high engagement
drives value to the business,’ he argues. In other words, those that are prepared
to invest in their people will reap the benefits. If people feel they are not being
developed, coached or given opportunities they usually say so. ‘FDs are asking
what is happening in the business, what they think of the finance function,’ says
Gittins.

Increased value
Global mobility raises a number of issues. There is no doubt that the outsourcing
movement has opened up opportunities that previously did not exist for
professionals in emerging economies. As Davies says: ‘My junior staff are hugely
sought after and are in demand all around the world.’ But he adds that at more
senior levels, people might be at a different stage in their lives. And he also
believes that the leaderships skills that are required of more senior professionals
might not be as finely tuned as they could be.

Marieke ten Houte de Lange, Shell’s human resources manager for finance
operations, says it might not be necessary to travel to get international experience:
‘There is an element of increased global exposure for finance professionals, but
we tap into local talent markets, which is one of the drivers of moving into a shared
services environment. One attractive part for the finance professional is that one
can gain experience in different industries in a more global and virtual environment
than in the past.’

> READ MORE

> BACK TO MAIN ARTICLE
Global environment
Her collegue, Karthik Selvaraj, in Chennai, India, agrees: ‘It has increased the
exposure for people to work in a global environment because they interface with
global, multinational, multicultural customers, but the reason why there might
not be opportunities [for physical mobility] is that activities are migrating to a
centralised, consolidated Shell Business Service Centre environment. Jobs are
getting done in fewer locations. But the exposure is tremendous.’

In terms of the importance of working with an outsourced function and SSC as

part of career development, ten Houte de Lange is clear. She says: There are
four dimensions of experience a well-rounded finance professional requires here,
affecting both the breadth and the depth of experience. These are: professional,
business, leadership and stakeholder management experience. The people that
have the best potential to become future leaders in the organisation should have
experience both in the operations environment in shared services as well as in the
business and in the central function.’

Philip Smith, journalist

> BACK TO MAIN ARTICLE

 case study: ibm scc, malaysia
Jason Crimson is the manager of balance sheet accounting in the Asia Pacific
Accounting Centre at IBM in Bandar Utama, Malaysia. The shared service
centre (SSC) provides centralised accounting services and support to IBM’s
leaders, and management in the region. Other areas supported include
Sarbanes Oxley compliance, business controls and financial systems support.

He sees a number of career patterns emerging in the shared services

environment: ‘Finance SSC leaders are the pipeline for internal key financial
leadership positions such as controllers and CFOs. These leaders also form
the talent pool for recruiters for leadership for start-up or growth-stage
finance SSCs.’

Typically, finance professionals can expect to rotate between roles at a faster

pace than normal, averaging between one and one and a half years in one
role. ‘There are incredible opportunities for a professional to work “in-house”
in a SSC due to the increased complexity of work that gets centralised
into the finance SSCs,’ he says, adding: ‘This is compounded by increased
leadership and management opportunities that provide upward mobility for
individuals.’

Crimson says finance professionals have the option to pursue careers in

other SSCs within the organisation or even in non-SSC functions. This career
path flexibility plays a key role in ensuring a variety of opportunities and is
managed via periodic employee development and career discussions.

‘Periodic job rotations with clear developmental goals are required to

retain talent within the SSC,’ Crimson says. This includes a career roadmap
to enable employees to chart their own courses within and outside the
SSC. Specific training requirements are determined at each level within the
roadmap to steer progressive professional development for the individual
employee. A minimum number of training hours is determined and
embedded within the job requirements. Training also covers management
and leadership skills, together with business acumen and integrity.

Crimson appreciates the breadth and depth that working in a SSC can give
to finance professionals. ‘It allows you to develop process expertise and
compare and contrast practices across various countries and regions. You
are exposed to and take with you the best practices that have been
developed and are always expected to further refine the processes in order
to achieve optimisation, which is a key skill an individual garners from
working in a SSC. It is required within global organisations in the present day
and also for the future.

> BACK TO MAIN ARTICLE

 case study: shell
Global energy and petrochemicals company Royal Dutch Shell employs 101,000 people in more than
90 countries and territories. Of these, 10% are in the group’s finance function, with almost half working
in finance operations run out of Shell Business Service Centres (SBSCs) worldwide.

The SBSCs are based in six main locations – Glasgow in the UK, Krakow in Poland, Kuala Lumpur in
Malaysia, Chennai in India and Manila in the Philippines, and Cape Town in South Africa. The majority
of finance operations people are based in Chennai and Manila. Finance operations covers a wide
range of activities, from transactional processes such as accounts payable and receivable, through
reporting processes and data management up to management‑information services.

‘We are continually improving the quality, effectiveness and efficiency of our operations to what
we call world-class finance. To do this we need the right people with the right skills working in our
centres,’ says Marieke ten Houte de Lange, Shell’s Human Resources manager for
finance operations.

In terms of career progression, ten Houte de Lange’s colleague, Karthik Selvaraj, based in Chennai,
India, says: ‘The centres offer a variety of roles, starting from transactional activities to high-end work,
therefore you could start working in accounts payable and then progress higher up the value chain,
for instance into management reporting activities. ‘There is a complete learning and development
programme for finance staff, which includes on-the-job training and lateral moves from one process
area to another.’

Staff are encouraged to take internationally recognised qualifications, such as those offered by ACCA
and the Chartered Institute of Management Accountants (CIMA) - such qualifications can help them
to move up the value chain.

Ten Houte de Lange acknowledges that while they operate in an environment that has a high
turnover of staff, she believes that the turnover of staff in the SBSC compares favourably with that in
outsourced operations. To ensure that top talent is retained and good retention rates are achieved,
structured talent development, progression opportunities, monetary and non-monetary remuneration,
learning opportunities and professional accreditation and development, are in place.

‘We have developed competency profiles for roles in finance operations,’ says ten Houte de Lange.
‘All staff have the opportunity, together with their line managers, to review where they are in terms
of their competency assessment. This contains both financial professional qualifications as well as
leadership and personal business competencies. There is a finance operations learning curriculum,
with both face-to-face courses and virtual programmes to enable finance operations staff to
develop themselves.’

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 case study: diageo
Diageo’s shared service centre (SSC) in Budapest, Hungary, has evolved from being a
transactional‑based function to one capable of delivering high-level and high-value financial services
throughout the global drinks giant’s worldwide network. In doing so, it is helping to create a highly
skilled and mobile financial workforce in Hungary, ready to do business around the world.

‘We have a large captive centre here in Budapest that we opened towards the end of 2001,‘ explains
Chris Davies, managing director of Diageo Business Services. ‘We were one of the first SSCs in the
country, and now employ 700 people. About three years ago we extended to an outsourced delivery
centre in Manila and small centres in Shanghai, Bucharest and Prague, primarily for languages that
can’t be accommodated out of Manila.’

DBS primarily has finance services in Budapest – order to cash, procure to pay, record to report.
But then it also houses the treasury, direct and indirect tax, statutory accounting and board level
reporting functions.

‘In a nutshell, we want to get as much as makes sense into shared services, but put it in the right
place,’ Davies says. ‘Anything that we can standardise and scale is located in Manila, where we get a
40% salary arbitrage. Where it requires more customer contact, nuance and flexibility we locate it in
Budapest – effectively upskilling the workforce here.’

In effect, the group finance function is almost entirely based in the Hungarian capital, with only
a couple of senior positions remaining in London. As Davies says, this has some very significant
implications for both movement and recruitment and can create huge opportunities. ‘Someone can
join us out of college in an accounts processing role, develop their overall business skills, pick up
some accounting training, move across into a financial planning and reporting role, and then cross
over into a market-facing role.

‘So it really creates some mobility,’ he says. ‘There is a lot of zigzagging up and through the structure;
this is one of our real retention factors – we have three directors here who joined at a grassroots level
in 2002.’

Davies says while there is a handful of people from Brazil and the Netherlands for language purposes,
the lion’s share of his staff are Hungarian. The average age is 27, higher than it once was, as DBS has
taken out the transactional roles and put in more strategic roles. ‘We are recruiting fewer graduates
and hiring more experienced professionals, but we are still recruiting at all levels,’ he says.

As in other countries, a large amount of accountancy training takes place in the Big Four firms.
But Davies sees benefits to the wider workforce by recruiting these employees: ‘Because we are
increasingly recruiting staff that have worked in these firms, they are having to recruit and train more.
But we certainly keep up with our staff’s training, we invest in keeping people current.’

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28 careers
ACCA to cfo
Click here to find out about
Anthony’s accomplishments

code
of honour
HSBC SINGAPORE’S ANTHONY KAM FCCA
CITES HONESTY AND INTEGRITY AS THE KEY
PERSONAL VALUES WHICH CAN HELP CHIEF
FINANCIAL OFFICERS MEET THE INCREASINGLY
TOUGH DEMANDS OF THEIR JOBS

A
lthough Anthony Kam, chief financial officer (CFO) of HSBC
Singapore, has his eyes firmly focused on the bank’s balance
sheet and financial operations, he is dealing with far more than
just numbers in response to the global financial downturn. He
cites succession planning and staff development as equally important
issues, which form part of the British bank’s growth agenda for the future.

With the world’s economic centre of gravity shifting to Asia, HSBC, like
peers such as JPMorgan, has been working on its regional strategy.

Counting on Asia Pacific markets to drive greater growth, HSBC is

leading a trend to relocate chief executives from their home bases in
London to the vibrant banking scenes of Hong Kong and Singapore.

HSBC Singapore’s operations are key to its operations in Asia Pacific,

along with its Hong Kong regional hub. Kam points to the bank’s
annual results, which show that Singapore is one of the most profitable
areas in the HSBC Group, with a pre-tax profit of US$542m (S$S740m).

He was previously country manager of the Hang Seng Bank (Singapore

branch), a subsidiary of the HSBC Group. First appointed CFO in
2005, Kam currently oversees all finance-related activities, including
external statutory reporting and controls as well as governance on the
accounting and reporting process, management information, asset and
liability management, treasury finance, operations and controls and tax.

> READ MORE

Recent trends in the banking and financial services space have added
a new dimension to the strategic and increasingly multifaceted role
of the CFO today. No longer just a number cruncher, the CFO now
provides insight and foresight on issues relating to capital growth,
revenue, cost trends and liquidity, amid the rapid changes in the
economic and regulatory environment, says Kam.

A firm believer in finance being a close partner to business, a

trend also seen in many other sectors these days, Kam echoes
the thoughts of many CFOs. He is no longer an observer of
regulation, playing a gatekeeper role, but a trusted business
adviser to the bank’s management board, chief executive officer
and various business units.

Kam believes that values are fundamental to the role of the CFO
in today’s world, especially as financial controllers and CFOs wield
such tremendous influence in organisations, often playing the
role of key strategists, as well as pivotal decision-makers. He says
good CFOs ‘must have strong personal values such as honesty,
integrity and the motivation to always do the right thing’.

Opportunities for growth

As accounting standards are fast becoming more complex with
many changes in regulatory, governance and standards-related
issues, Kam believes many more opportunities exist for the CFO
to learn and grow.

Casting an eye on industry trends, he says: ‘We will definitely

see more regulation, which will have a significant impact on
how the business of banks is run. The CFO plays a critical role
in this, particularly in advising the business on the implications
of such changes and helping the business to focus on doing the
right thing.’

In the current economic climate, where recovery is cautiously

anticipated, Kam also sees more changes specifically relating to
the finance function.

Regulation and resources

A couple are of particular note. He says: ‘There are two things
that are important to me and they are both closely related. The
first is ensuring we are fully prepared for the latest and upcoming
changes in regulatory requirements and accounting standards, in
particular the Basel proposals on capital and liquidity and the IAS
39 replacement project.

> READ MORE

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‘The second is to make sure we are adequately resourced to cope
with the challenges ahead. I forsee there will be more regulatory
and accounting rule changes going forward and this will mean
more ratios, limits, disclosure and reporting requirements. As a
result, finance talent will be in hot demand in the coming years.’

Recognising that Asia’s rapid economic growth has given

rise to greater competition from around the region for talent,
HSBC places strong emphasis on staff engagement, career
development and talent management.

‘[Finance is] focused on being a professional, effective and

responsive function to all our customers, internal and external,
and this is firmly aligned to the bank’s focus on service
excellence’, he says. Locally, this means that my top priority is the
people agenda to ensure we have a fully engaged and skilled
finance workforce.’

Kam spends much of his time looking at people-focused issues,

such as succession planning and staff development. One of his
favourite and possibly most rewarding tasks is overseeing the
finance graduate development programme. This is a rigorous
training programme that aims to attract, select and nurture
high‑calibre finance professionals to grow the bank’s operations.

This scheme is in line with Singapore’s goal of becoming a

financial hub for the region, and its focus on building the financial
services sector.

Analytical thinking
Kam is well aware that he too has benefited from opportunities
that helped his professional growth. Starting as a trainee dealer
at HSBC Hong Kong, he credits his training as a science graduate
as being pivotal in cultivating his numerical ability and analytical
thinking. He adds that the technical knowledge acquired from
being honed in the accounting discipline has also been invaluable.
Kam has been a member of ACCA since September 2000 and says
his membership has greatly helped him in his career.

‘As a science graduate majoring in physics, the ACCA

Qualification enabled me to acquire the necessary technical
knowledge that was instrumental in my career development.
Without it I possibly would not have had the technical
competence to effectively execute my earlier role at Hang Seng
Bank and my current position in HSBC,’ he says.

> READ MORE

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However, Kam also recalls that the opportunities given to him
when he came to Singapore in 1990, just as the banking sector
began to flourish, helped further his career. ‘It [must have been]
the best moment in my career, setting up the Hang Seng Bank
operations in Singapore, as it was a fantastic learning experience,
particularly since I had no prior experience of setting up or
running a company, having been a dealer for over 12 years at that
time,’ he says.

Looking forwards
Originally a Hong Kong citizen, Kam also credits his childhood
for giving him a unique perspective on life. ‘As the youngest child
in a big family, I have always had to look at things from different
angles and viewpoints, and have had to put myself in somebody
else’s shoes. Having learnt to do this from youth, I have continued
to apply this learning in both my personal and work life through
the years, and that is how I have managed to gain trust and
respect from all the people I have worked with.’

So what is his work philosophy? ‘In dealing with people, you need
to have very strong personal values and be fully competent in
your area in order to gain respect and trust from the people you
work with. Building trust with your stakeholders and business
partners is critical,’ says Kam. He also feels that it is important to
focus on the future, ‘instead of looking back and thinking of the
“what ifs”’.

And his vast talents – such as psychological strength and agility,

as well as strategic thinking, coupled with measured execution
– mean that, in keeping with this focus, the best is no doubt yet
to come.

Ying Pau, journalist

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 anthony’s story
Anthony Kam, 49, graduated with a BSc in physics from the University of
Hong Kong, and topped his class in Singapore with an MA in applied finance
from Macquarie University in Sydney, Australia.

He then went on to get his CFA qualifications and ACCA in 2000, winning
the Singapore Gold medal and achieving the highest mark worldwide in
managerial finance and financial strategy. His career accomplishments
include setting up Hang Seng Asset Management’s operations as director
and general manager and then Hang Seng Bank’s Singapore branch
operations as its country manager.

He has been with HSBC in his current role of CFO, overseeing its Singapore
finance function, since September 2005. Like many professionals, his
favourite pastime is golf. Playing the game has also given him a useful career
tip. ‘One thing I learnt, which I feel can be applied not just to the workplace,
but to almost any situation, is that one needs to control ones’ emotions in
order to play the game well. So likewise, we need to keep our emotions in
check if we want to excel.’

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