CMA: Working to Close the Skills Gap

IMA Middle East Conference 2011

Tuesday, May 10, 2011

CMA: Working to Close the Skills Gap

Panelists:

Hassan Sharafeddin, CMA, Chief Financial Officer, Federal Foods LLC Aneel Iqbal, CMA, Ernst & Young Training Services Cicek Onder, CMA Candidate, Analyst, Hewlett-Packard
Facilitator: Dennis Whitney, CMA, Senior VP, ICMA CFOs complain there is a skills gap among all levels of their finance and accounting teams in the areas of financial planning, analysis, control, and decision support The CMA exam and curriculum focus squarely on these critical areas Our panel of experts will share their views about the skills gap as well as the importance and relevance of the CMA exam

Research with CFOs Confirmed

Finance Teams need to raise their competency level Planning and analysis capabilities are needed and in short supply There is a challenge identifying advanced or high potential finance and accounting staff University business curriculums do not develop in enough depth the skills most needed on the job

Planning, analysis, control, and decision support the focus of the CMA exam

CFO Global Research Study Sources

o The New Value Integrator, Insights from the Global Chief Financial Officer Study - IBM, 2010 o Being the Best, Insights from Leading Finance Functions KPMG and The Economist Intelligence Unit, 2006

o Balancing Risk and Performance with an Integrated Finance Organization - IBM, The Wharton School and
Economist Intelligence Unit, 2007

o The Changing Role of the Finance Organization in a MultiPolar World - Accenture, 2008 o IMA Research Studies
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Research Insights

The New Value Integrator, Insights from the Global Chief Financial Officer Study, IBM, 2010
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Research Insights

The New Value Integrator, Insights from the Global Chief Financial Officer Study, IBM, 2010
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A Few Relevant Quotes:

The New Value Integrator: Based on conversations with 1,900 CFOs worldwide Our job is to focus the enterprise on making timely, risk-based decisions by providing access to the right business-relevant information and insight-driven analytics. CFO, Kimberly Clark Finance must enhance its advisory role and add greater value. Control and accuracy are absolutely important, but we need less data crunching and more analysis and insight. CFO, Westpac Banking Business analytics is one of our most critical Finance initiatives. We need to have the right people and tools and stay very close to the business. CFO, Office Depot
The New Value Integrator, Insights from the Global Chief Financial Officer Study, IBM, 2010
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CFO Dissatisfaction We Must Do Better

Critical Business Issue: CFO Team Not Achieving Aspirations

Stakeholder Globalization Sophistication Compliance

Demand

Supply Processes People Education, Certification

Aspirations: Partnering & Consulting Creator of Wealth Maximum Influence

Current Reality: Transaction Heavy Counter of Wealth Some Influence

What CFOs Are Saying . Required Skill Sets

FROM: Budgeting Excel Forecasting Financial Risk Identification Product Profitability Primarily financial metrics which are lagging indicators Soft skills nice to have Analytical capability helpful TO ALSO INCLUDE: Integrated Planning, Budgeting, Forecasting Predictive Analytics/Business Intelligence Broader Enterprise Risk Management Customer Profitability/Lifetime Value Balanced metrics the 3 Ps (Profits, People and Planet) which include leading indicators Soft skills required to become a credible analytical influencer LEADERSHIP! Data analytics a competitive advantage

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What CFOs Are Saying . Bottom Lines

Aspire to move from counter of wealth and compliance cop to creator of wealth and influencers of strategy This requires a whole new set of management accounting and finance function skill sets Sourcing these new skill sets is problematic and therefore they tend to be home grown especially in larger enterprises

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The CFO as Value Integrator

Its no longer good enough to excel at core finance activities The finance operation needs to advise on strategic and operational issues too The integrator role involves integrating information to achieve efficiency and business insight The Value Integrators mission should be to help the company think as an overall business instead of individual areas The CFO is a trusted business advisor

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Business Insight and Analysis

REAR VIEW MIRROR
What happened? How many, how often?

MAGNIFYING GLASS
What exactly is the problem? Why is this happening? What actions are needed?

CRYSTAL BALL
What will happen next? What if the trends continue? What are the risks/opportunities?

REAR VIEW Balance sheet, P&L and cash flow statements Revenue & cost variance analysis

CURRENT VIEW Customer, product & market profitability Spend optimization Working capital analysis Market, customer & channel pricing Sales & supply chain effectiveness

FORWARD-LOOKING VIEW Cash forecasting Scenario-based planning & forecasting Strategic investment & decision support Volatility & risk-based predictive & behavioral modeling

The New Value Integrator, Insights from the Global Chief Financial Officer Study, IBM 2010
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CMAs Serving As Trusted Business Advisors

Decision Analysis

Financial Leadership

Risk Management

CMA
Strategic Cost Management Internal Controls Planning & Analysis

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Hassan Sharafeddin, CMA Why the CMA?

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WHY CMA?
As management accountants, we look at the present, keeping the past in mind, we plan for the future. We do not assess past performance and stop there.

Career Booster Continued Educational resources IMA research tools Present & Future Focus

& Much more

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WHY CMA?
Career Booster Continued Educational resources & Much more

IMA research tools Present & Future Focus

CMA = more MONEY? Definitely! Middle East Salary Survey 2010

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The CMA Certification

The CMA (Certified Management Accountant) is the advanced professional certification specifically designed to measure the accounting and financial management skills that drive business performance. Leading employersfrom multinational corporations to private firms, academic institutions, and not for-profit organizationsseek out CMAs to fill positions requiring critical accounting and financial management skills. How important is certification in regards to compensation? CMAs earn 122% more in average salary and 117% more in total compensation (including salary and other compensation) than their noncertified peers. This means that on average, earning a CMA will more than double your salary.* This translates to a total of up to $2.6 million in extra lifetime earnings for someone in their early 20s.* IMA members continue to provide incredible value to the organizations where they work.

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Source: IMA Website

Cicek Onder Building your Career with IMA and the CMA

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Building Confidence

Technical Skills Analytical Skills Competence Trusted Advisor

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Expanding Career Options

Broader Background

Strategic Thinking

Next Level in Career

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Leadership Development, Social Responsibility and Networking

IMA Chapters are a great opportunity for: Developing leadership skills Information and experience sharing Improving business acumen Developing soft skills Teamwork Networking
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Aneel Iqbal, CMA Benefits of the CMA

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Potential Benefits to Individuals

pride in accomplishment official recognition of the recipients knowledge enhanced career advancement opportunities impetus to improve work and communication skills increased job security the ability to qualify for work using specialized software or in sensitive governmental or corporate areas qualification to hold office in particular professional societies enhanced prestige or visibility in his or her job and professional community the potential for financial remuneration
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Potential Benefits to Corporations

an independent metric with which to screen job applicants a knowledgeable work force encouragement of continuing education for employees enhanced employee understanding of matters and concepts beyond their immediate job descriptions the availability of objective criteria with which to award raises and promotions

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Some relevant Quotes

In a meritocratic tradition people do not resent being influenced by people whom they regard as the experts Because this power source is the most socially acceptable it is also the most sought after. (Handy) (we) forget what we memorize. Content knowledge becomes dated and often not transferrable across different types of jobs.Critical skills rarely become obsolete and are usually transferrable across assignments and careers. (Albrecht and Sack 2000) (There is) a lack of a shared vocabulary between education and work. (Leveson 2000)
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Why are Saudi corporations opting for CMA

Emphasis on core skills No obsolescence of skill set with change in laws and regulations Universal applicability Managerial Focus Vs Technician Approach Time and Cost Effective Flexible Fewer requirements of Assumed Knowledge
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