Talent Pipeline Draining Growth


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Connecting Human Capital to the Growth Agenda
Traditionally, many executives believed that the key drivers to competitive advantage were the costs and quality of the organisation's products and services and the technologies it used. The contribution of human capital was also valued. However, it was not seen as decisive. A survey by Economist Intelligence Unit shows that while most companies understand the importance of human capital, they do not they do not appear to have the right systems , processes and information in to manage talent effectively. Find out more>>

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Talent Pipeline Draining Growth

  1. 1. CGMA REPORT Talent pipelinedraining growthConnecting human capital to the growth agenda
  2. 2. Two of the world’s most prestigious accounting bodies, AICPA and CIMA, have formeda joint venture to establish the Chartered Global Management Accountant (CGMA)designation to elevate and build recognition of the profession of management accounting.This international designation recognises the most talented and committed managementaccountants with the discipline and skill to drive strong business performance. CGMAsare either CPAs with qualifying management accounting experience or associate or fellowmembers of the Chartered Institute of Management Accountants.AcknowledgementsOur thanks to all the finance and management executives around the world who haveparticipated in this project and generously given their time and insights via the survey andinterviews. We would like to extend special thanks to those who were interviewed in depthfor this report:Jehan Perinpanayagam FCMA, CGMA, CEO, InfoMate (Sri Lanka)Phil Sheridan, Managing Director, Robert Half UKNikki Walker FCMA, CGMA, Managing Director Inclusion Diversity & Sustainability EMEAR,CISCO SystemsValerie Rainey CPA, CGMA, CFO, INTTRA (USA)Join the conversation about #CGMATalent on the @CGMA Twitter feed3 Talent pipeline draining growth – connecting human capital to the growth agenda
  3. 3. CONNECTING HUMAN CAPITAL TO THEGROWTH AGENDATraditionally, many executives believed that the key drivers for competitiveadvantage were the cost and quality of the organisation’s products andservices and the technologies it used. The contribution of human capitalwas also valued. However, it was not always seen as decisive.As the world of business becomes ever more However, a new survey of more than 300 seniorinternational, competitive and volatile, building executives (CEOs, CFOs and HR directors)a successful company that is ready for tomorrow conducted by the Economist Intelligence Unit, withis becoming more and more challenging. In this the aim of equipping Chartered Global Managementincreasingly complex environment, reliance on Accountants (CGMAs) with information andproduct or technology attributes may only provide insight on this key topic, shows that businesses areshort-term and first-mover advantages, as they can missing out on performance targets and growthbe easily replicated. To thrive in the long-term, opportunities because of inadequate human capitalorganisations must constantly innovate, evolve management. A significant number of respondentsand transform. Two of the most critical factors that cite missing financial targets and failing to innovatedetermine an organisation’s fate in this environment due to ineffective human capital management, whichare the quality of its human capital and the way it suggests that many firms worldwide are not fulfillingmanages its talent pipeline. their growth potential because they are failing to effectively manage and harness the skills andThe global financial crisis has rewritten the rules experience of their workforce. This is mainly due toof business. In the distressed economic backdrop the lack of information to support decision making,in which companies operate today, the skills, strategy development and investment evaluation.experience, development and job satisfactionlevels of their employees are emerging as major Our survey shows that while most companiessources of competitive advantage or disadvantage. understand the importance of human capital,A recent study by the Boston Consulting Group1, they do not appear to have the right systems,a management consultancy, found that companies processes and information in place to managethat are ‘highly skilled’ in core HR practices achieve talent effectively. Only 41% of firms are confidentup to 3.5 times the revenue growth and as much as that their human capital strategy is truly embeddedtwice the profit margins of less capable companies. in their organisation’s strategy. A particularlyA PwC2 study of today’s most successful companies worrying finding from the study reveals that thealso makes it quite clear that for organisations most senior business leaders – C-level executivesintent on pursuing a sustainable growth agenda, – do not just disagree with each other on criticalthe management of human capital needs to be aspects of talent management, but they also areembedded at the centre of its business strategy. unclear who should bear responsibility for these issues in their organisations.1. People Management Translated into Superior Economics Performance, Boston Consulting Group, August 2012.2. 15th Annual Global CEO Survey 2012, PwC, 2012. 1
  4. 4. Key findings from the survey, outlined in detail In response to these findings, CIMA and AICPAlater, include: propose that business leaders take these four key steps to reconnect human capital to the1. I nadequacies in talent management are hurting growth agenda: the competitiveness and financial performance of firms. 1. mbed human capital strategy within the wider E2. here is disagreement and a disconnect at the T overall business strategy. C-level on strategies for talent development, 2. Focus on getting the right information and particularly in relation to succession planning translating it into actionable insight. and training and development investments. 3. everage the relevant skill set to bring credibility L3. he majority of companies do not seem to be T paying adequate attention to succession planning. to the data, insights and subsequent actions.4. any of the talent management tools employed M 4. tructure the organisation to encourage S by organisations are ineffective. collaboration and partnering.5. T here is a lack of clarity on who has the responsibility for measuring the effectiveness of talent management.6. usiness leaders are concerned about the B quality of data and analytics they receive on human capital.Figure 1: Have any of the following occurred at your company in the past 18 months as a result of inadequacies inhuman capital management? Select all that apply.2 Talent pipeline draining growth – connecting human capital to the growth agenda
  5. 5. 1. Inadequacies in talent The CEO perspectivemanagement are hurting the “HR and finance jointly presenting their analysiscompetitiveness and financial to the CEO provides a balanced viewpoint andperformance of firms is best practice. My company InfoMate (Private)The growth prospects of many firms are being Limited, like all John Keells Group companies,blighted by their failure to make the most of their employs a triple bottom line approach, whichhuman capital. Over two-fifths (43%) of respondents considers economic, environmental andin the survey partially attribute the failure of their societal impacts to the company and all itsfirms to achieve key financial targets to ineffective stakeholders in its decision making. In thishuman capital management, and two in five (40%) context employees, who are inseparable fromsay it has also reduced their company’s ability the company, play a vital role in decisionto innovate. making. Input from HR professionals, financeMany respondents in the survey say they are not professionals and that of other disciplines areconfident about the quality and usefulness of data on given equal importance in making decisionshuman capital, and the analysis of that data by their in the best interests of the organisation. Thefirms. Without the right information and insight, operating structure of the group is such thatcompanies cannot make effective decisions on human businesses are encouraged to and structured incapital management. Short-sighted human capital a manner that requires the businesses to consultpolicies appear to be hitting many companies whereit hurts: their growth agenda. with HR and take a long-term view on aspects relating to HR, and not just look at short-termThe correlation between talent management and cost implications. A rigorous set of KPIs haveperformance is particularly strong in the financial been set around training spend, employeeservices and energy sectors: nearly three-fifths of engagement, etc., which enhance the long-termfinancial services executives (58%) say their firm value of our human capital.”has been unable to start a major project or achievekey financial targets because of poor human capital – Jehan Perinpanayagam, CEO, InfoMatemanagement, while over half of executives from the (John Keells Group)energy sector (53%) say they have missed forecastedgrowth. North American firms generally report moredifficulties as a result of poor talent managementthan their European and Asia-Pacific counterparts.This may be a result of gaps in human and talentmanagement strategies: only 16% of North Americanssay their organisations have personal developmentprogrammes in place, compared to respectively 45%and 35% of European and Asia-Pacific respondents. 3
  6. 6. 2. There is disagreement and In other reports, both CIMA and AICPA have often cited the move towards finance partneringa disconnect at the C-level on with the wider business to better help drive businessstrategies for talent development success and support decision making. This effective partnering between the CEO and CFO appears toOrganisations need to have aligned understanding be underlined here in the survey; there appears toof the key competencies required for senior roles be a good common understanding and agreementto drive their business forward effectively. on many human capital issues between the CEOOur survey illustrates that there is general alignment and CFO. They show high agreement in the topfor the CEO and CFO in this area, yet this differs skills needed:to the views of the HR directors. The requirementfor a diverse base of experience in terms of business • experience of emerging/fast growth marketssector and market – international and at different • experience of different business sectorslevels of maturity – is evident, wrapped in with • experience of international marketsthe need for change management expertise. • experience of change management.This perhaps reflects the diversifying businessagenda for many organisations, in a period ofrapid change given the highly competitive andvolatile business environment.Figure 2: Which of the following skills and experience are most important for C-level executives in your company topossess in general? Please select three options.4 Talent pipeline draining growth – connecting human capital to the growth agenda
  7. 7. In some organisations, this level of effective larger firms. Instead, the latter pick experiencepartnering is also reflected in the HR function. of international and emerging markets as a keyHowever the survey shows that HR directors criterion as multinationals focus on growth andare slightly out of kilter with the rest of the entry opportunities in global markets at differentexecutive team where critical skills and experience levels of maturity.requirements are concerned. While agreeing onthe need for change management expertise, for From a regional perspective, European respondentsHR directors their top C-level skills and experience think experience of change management (51%)requirements are strategic vision and ability to is more important, while North Americanimplement strategy (71%), followed by leadership respondents prioritise experience of internationalexperience (54%). It must be noted that the views markets (61%) and Asia-Pacific respondents,of C-level executives are a reflection not only of leadership experience (51%).their own role and experience, but also the size The disconnect between the senior executiveand scope of their organisations. team continues in other critical areas such asLeadership experience is higher up on the agenda the firm’s investment plans on human capital.for smaller firms than it is for larger organisations. Over three-quarters of CEOs (77%) believe thatOver half of the respondents from firms with cutting spending on workforce skills, training andglobal annual revenue of less than US$1 billion qualifications is part of their company’s policyidentify leadership experience as a key skill to over the next 18 months. While 49% of CFOs seepossess as they seek to expand their operations, a similar picture, only 18% of HR directors agree.compared to only two-fifths of respondents fromFigure 3: What is your company’s policy on workforce training, skills and qualifications over the next 18 months? 5
  8. 8. This gap in perception between CEOs and the restof the C-suite suggests that on key issues related The CFO perspectiveto talent management, the C-level team are often “Generally speaking HR and finance shouldsinging from different hymn sheets, and advocates partner in determining both the cost andan immediate call to action, as outlined in theconclusion of this report. value of human capital. It is not surprising to me that there are differing views of whoIt is also worrying that two in five firms claim has primary responsibility and this is an areato have missed performance targets or delayed that organisations should improve to ensureinitiatives because of human capital issues, yet clarity and accountability. Misalignment onover the next 18 months 77% of CEOs plan to training and development investments can oftencut spending on training and development. happen, and are generally resolved in the budget process. However, for me, credibility of the management information on humanFigure 4: 77% of CEOs say their firm will cut spend innext 18 months but only 18% of HR directors agree. capital is essential. In my experience the organisation views human capital analytics as more credible when they are jointly developed by HR and finance. In this way the organisation can maximise the expertise and skills that the management accountant can bring to this area.” – Valerie Rainey, CFO, INTTRA6 Talent pipeline draining growth – connecting human capital to the growth agenda
  9. 9. 3. The majority of companies do firms, while senior executives from other functions are somewhat more concerned: three in four HRnot seem to be paying adequate directors think their firms have a formal successionattention to succession planning planning process in place, compared to only 57% of CEOs and 12% of CFOs.Over a third of respondents agree that the abilityto effectively attract, retain and deploy the right But the key question is not necessarily whether firmstalent is the main competitive advantage for their have such strategies in place. It is about how effectiveorganisation. A similar proportion of respondents an organisation is at deploying skills developmentthink talent management is truly embedded in their investment to nurture the right talent internally.company’s business strategy. Worryingly, 38% of respondents believe it is likely they will need to go externally to recruit for C-levelA good example of best practice in this regard is posts in the next 12 months. This indicates a lack ofthe German car maker BMW, which has boosted confidence in being able to recruit from the internalits productivity by adapting its talent strategy to pool, bringing into question the effectiveness of thethe challenges posed by an ageing workforce in organisations’ existing human capital developmentEurope. It chose a new production plant for a pilot strategies, including succession planning, for such roles.project and specifically targeted older workers whenrecruiting for the plant to ensure a well-balanced Furthermore, we continue to see a significantage structure. After one year, the plant’s productivity disconnect at the senior management level.had increased by 7%. While nearly 36% of HR directors are confident that their firm will not need to go externally toBut for those firms that fail to adapt and update, recruit for senior roles, less than 10% of CEOsthe impact of poor human capital management goes and CFOs agree. The CEO’s and CFO’s significantright up the organisational ladder. Over half (51%) lack of confidence in their organisation’s ability toof executives said their firms do not have a formal nurture home-grown talent, indicates that existingsuccession planning process for C-level roles such structures and investment in human capital mayas CEO, CFO and COO. This potentially leaves the not be fit for purpose.49% without one open to market and stakeholderconfidence issues. HR directors are most confidentabout the strength of the talent pipeline at theirFigure 5: 51% of organisations do not have a formal succession plan for C-level roles and 38% of firms anticipatethey will need to recruit externally for C-level roles in the next 12 months. 7
  10. 10. 4. Many of the talent management The HR perspectivetools employed by organisations “Talent management needs to be centralare ineffective to an organisation’s strategy. HR can addCurrent talent development tools and activities used significant value to a business, throughin organisations overall are not effective, as rated enabling the execution of strategy and buildingby survey respondents. We have already seen that organisational capability. It comes from anmany firms do not have a strong internal pipeline intimate knowledge of a business’s strategy andfor senior and key roles, and this would seem to the existing capabilities of the organisation.be supported by a lack of effectiveness in bothtalent development activities and current The great advantage that HR has in this areasuccession planning. is that, ultimately, all strategy is executed byAmong the methods that companies commonly people – people who need to be supported,employ to boost the skills of their employees, only trained and equipped to fulfil the strategictraining and education offered by external providers vision. This is the real role of HR, and evenis rated as effective by half of the respondents in the though some people remain sceptical of itssurvey and is on offer at a majority of firms. Among bottom-line importance, in fact its relevancethe incentives and tools that seem to work less cannot be underestimated. Too manywell are performance-based bonuses and personal organisations still dismiss talent managementdevelopment programmes, deemed to be effective as a short-term, tactical problem rather than anby only a third of respondents. integral part of a long-term business strategy,Are organisations making investments into human requiring the attention of top-level managementcapital development activities half-blind at times, and substantial resources. With this as anwithout a clear understanding of their performance ethos, responsibility for measurement sits firmlyor effectiveness? A lack of confidence in the human with the CEO and board. However the actualcapital data available,and lack of insight for better mechanics would require a partnership betweeninvestment planning/decisions, would point tothis. Furthermore, the lack of clarity on ownership HR and finance.”and accountability for measuring and tracking the – Nikki Walker, Managing Director Inclusionperformance of human capital strategies will also Diversity Sustainability EMEAR, CISCO Systemshave an impact.8 Talent pipeline draining growth – connecting human capital to the growth agenda
  11. 11. 5. There is a lack of clarity on than 30% of CEOs and CFOs in the survey. The divergence of views makes it quite clear thatwho has the responsibility for in most organisations there is room to improve themeasuring the effectiveness of division of responsibility and accountability ontalent management human capital.Who holds responsibility for measuring the From the survey findings the majority of CEOseffectiveness of a firm’s talent management strategy identify the CFO, and therefore finance, as theis unclear. Over three-fifths of CEOs and CFOs natural lead in this area. CFOs in turn shouldagree that the head of finance has the mandate, look to the management accountants in theirbut less than a fifth of HR directors seem to agree. organisations that are able to combine financialInstead, an overwhelming proportion of HR directors and management skill sets to interpret information(83%) say that oversight on talent is, in fact, their and data in a way that will assist decision making,own responsibility, a view that is supported by less strategy development and investment evaluation.Figure 6: Who is responsible for talent management The recruiter perspectiveperformance? 65% Of CEOs see the CFO as thenatural lead. “Financial business partnering has become more highly recognised in recent years, with the large majority of CFOs from both SME and large companies indicating they have an established business partnering function as well as a positive influence over human resources. The HR leadership can leverage finance’s ability to extract the most relevant data, aligning human capital to overall organisational strategy while also more accurately measuring performance management, succession planning and investment decisions. With an overall goal of improving corporate performance, the majority of finance executives expect business partnering to increase in the next three years, and we anticipate additional demand from companies looking for management accountants who can deliver business growth and strategy.” – Phil Sheridan, Managing Director, Robert Half UK 9
  12. 12. 6. Business leaders are concerned Furthermore, a large number, 34% of CEOs and 40% of CFOs, state that while their firm has a lot ofabout the quality of data and data in relation to human capital, its usefulness isanalytics they receive on human questionable and they do not receive enough data-capital based insights or analysis to help their firm with human resource planning.We have already seen that issues in human capitalhave severely impacted on organisations’ growth This leaves a big gap for companies to fill,agenda. We have also seen a low confidence within particularly in ensuring that C-level executives arethe senior executive team on the effectiveness presented with relevant and high-quality informationof succession planning and talent development to support a unifying talent management strategystrategies in their companies. Organisations striving and decision making. Productivity and labour costsfor sustainable performance and success therefore are important measurements, but companies willneed to work smart, ensuring effective investment in also need to look at leadership development andhuman development provides the expected ROI and employee engagement metrics to fill any gaps insupports the business strategy. human capital.Firms require accurate data on relevant metrics tobe able to make effective decisions and investments Figure 7: Only 12% of CEOs are confident on the qualityacross all areas, including talent management. of the metrics they receive on human capital.Critically, they need that data translated intoactionable insights. The results of the survey pointto a staggering area of weakness where managementinformation on human capital is concerned. If thisarea is weak, it follows that decision making will beless effective.Only 12% of CEOs are confident about the qualityof metrics that senior management receives onhuman capital. They are also highly sceptical ofdata on retention of talent and workforce analytics.This is reinforced by HR directors: 38% claim thattheir organisation struggles to get accurate dataand metrics on human capital costs, productivity,value and ROI.10 Talent pipeline draining growth – connecting human capital to the growth agenda
  13. 13. CONCLUSIONThe results of this study confirm that firms around the world are findingit hard to manage their talent base in the most effective manner. This ispreventing organisations from undertaking important projects or initiatives,and from innovating and meeting performance and growth targets. Simply,many firms cannot effectively fulfil their strategy due to human capitalrelated issues.Some of the shortcomings seem to be systemic or 3. Leverage the relevant skill set to bring a fall-out of organisation structures: for instance, credibility to the data and subsequent actionsthe lack of a coherent strategy as a result of the Organisations must ensure there is clarity ondivergence of views at the C-level, specifically the responsibility, accountability and ownership forapparent misalignment of the HR function in some human capital performance management. Theareas. Other challenges include a lack of trusted research findings have already highlighted that,and useful information and insight in this area, for the most part, the CFO has the mandate fromand a lack of clarity on the ownership and effective the CEO to take responsibility for measuringleadership in measuring the effectiveness of a firm’s and managing human capital performance.human capital strategy. Firms should look to use the CGMA’s unique skills in uniting financial facts and non-financialGiven the adverse impact these drawbacks in talent information to provide insight from a base ofmanagement are having on the performance and independence and objectivity.competitiveness of organisations, the message tobusiness leaders from this survey is clear. To stay 4. tructure the organisation to encourage Scompetitive and grow in today’s challenging and collaboration and partneringvolatile business environment, CIMA and AICPA Restructure for closer collaboration at thepropose that business leaders must: executive and operational levels, encouraging in particular partnering between the finance1. Embed human capital strategy within the function and HR. Finance has a helicopter view overall business strategy of the organisation and can therefore ‘connect Organisations need to develop relevant human the dots’ across different units and functions. capital metrics and KPIs aligned to support and The CGMA, as an objective and independent implement the wider strategy. The measurement professional, is often best placed to partner with and performance management of such metrics and support HR in gaining a better understanding need to come under the same level of scrutiny, of the wider organisation strategy and its impact focus and controls of both accuracy and relevancy on cross-organisational changes and needs. In as other key data, eg financials. this partnering role, management accountants2. ocus on getting the right information and F can support HR and the firm in making credible translating it into actionable insight human capital investment proposals and decisions Firms must trust the data. Human capital based on robust management information. Many information needs to be credible and accurate. HR directors would clearly welcome and benefit But data alone will not ensure it is useful or from such closer partnering and support, given relevant when it comes to implementing the the lack of confidence in the current data. organisation strategy. It needs to be analysed and translated into relevant and actionable information and insight to provide more effective decision support. 11
  14. 14. Understand the cost and value of the human dimension Can your company measure the cost of losing capital to enable organisations to make more and also replacing an individual talent? Given effective decisions, development and investment in normal attrition rates, costs are staggering but its human capital, and thus be better able to fulfil largely unknown. their strategy. • A third of HR directors believe that their CIMA and AICPA are developing two new models organisation is good at understanding the cost of to support HR and finance functions to measure human capital, but not the value that the skills and these costs company-wide. Find out more via experience of employees provides to the firm. this web-based tool application which allows organisations access to an interactive model of • Respectively 87% and 83% of CEOs and CFOs the COLT© and CORT© tools. in the organisations that struggle to understand the full cost and value of losing and replacing talent www.cgma.org/talent claim that the information is too difficult to obtain. Cost of Losing Talent © (COLT©) CIMA and AICPA recognise the critical nature of Cost of Replacing Talent© (CORT©) understanding both the cost and value of human CGMAs – partnering for insight and decision support Management accountants are well placed to  CGMAs excel in management competencies. support the growth agenda, help embed a human They can communicate and translate the strategy capital strategy within the wider business strategy and business model to other teams and functions. and return confidence in its implementation and They can negotiate, partner and lead, and are performance management: therefore ideally placed to help address the apparent disconnect at C-level. They can connect  CGMAs combine accounting expertise and the dots across the different functions because they business acumen to help the business achieve understand value drivers and how the different sustainable success. They analyse non-financial parts of the business need to come together to information alongside financials to provide create this value. actionable insights and support effective decision making. Returning credibility and usefulness to  CGMAs provide this support from a base of human capital information allows the C-suite to independence and objectivity, helping to translate develop a more effective human capital strategy. the business strategy and partner with the different functions to help implement and deliver the strategy.12 Talent pipeline draining growth – connecting human capital to the growth agenda
  15. 15. AppendixS urvey methodology and demographics DemographicsThe Economist Intelligence Unit, on behalf of the Respondents to the survey represent the followingChartered Institute of Management Accountants sectors: manufacturing, retail, energy and utilities,and the American Institute of Certified Public financial services, telecommunications, healthcare,Accountants, conducted a global survey of 313 pharmaceuticals, media and consumer goods.senior executives (CEOs, CFOs and HR directors) Nearly a third of respondents (31%) are CEOs,in July 2012 to understand the importance of 34% are group, divisional or departmentaltalent management in business strategy and CFOs and 35% are HR directors. Nearly half ofassess whether firms have the right systems, respondents (45%) are from firms with US$1 billionprocesses and information in place to manage or more in global annual revenue. The executivesthat talent effectively. participating in the survey are based worldwide: Europe (27%), US (24%), Asia-Pacific (25%), and the rest of the world (24%).© 2012, Chartered Institute of Management Accountants. All rights reserved.Distribution of this material via the internet does Certified Professional Accountants. This materialnot constitute consent to the redistribution of it in is offered with the understanding that it does notany form. No part of this material may be otherwise constitute legal, accounting, or other professionalreproduced, stored in third party platforms and services or advice. If legal advice or other expertdatabases, or transmitted in any form or by any assistance is required, the services of a competentprinted, electronic, mechanical, digital or other professional should be sought. The informationmeans without the written permission of the owner contained herein is provided to assist the readerof the copyright as set forth above. For information in developing a general understanding of the topicsabout the procedure for requesting permission to discussed but no attempt has been made to coverreuse this content please email copyright@CGMA.org the subjects or issues exhaustively. While every attempt to verify the timeliness and accuracy ofThe information and any opinions expressed in this the information herein as of the date of issuancematerial do not represent official pronouncements has been made, no guarantee is or can be givenof or on behalf of AICPA, CIMA, the CGMA regarding the applicability of the information founddesignation or the Association of International within to any given set of facts and circumstances. 13
  16. 16. Africa Middle East, South Asia South East Asia and AustralasiaOffice address: and North Africa Level 1, Lot 1.051st Floor, South West Wing 356 Elvitigala Mawatha KPMG Tower, 8 First Avenue198 Oxford Road, Illovo 2196 Colombo 5 Bandar UtamaSouth Africa Sri Lanka 47800 Petaling JayaPostal address: T. +94 (0)11 250 3880 Selangor Darul EhsanPO Box 745, Northlands 2116 F. +94 (0)11 250 3881 MalaysiaT. +27 (0)11 788 8723 colombo@cimaglobal.com T. +60 (0) 3 77 230 230/232F. +27 (0)11 788 8724 F. +60 (0) 3 77 230 231johannesburg@cimaglobal.com North Asia kualalumpur@cimaglobal.com 1508A, 15th floor, AZIA CenterEurope 1233 Lujiazui Ring Road26 Chapter Street Pudong Shanghai, 200120London SW1P 4NP ChinaUnited Kingdom T. +86 (0)21 6160 1558T. +44 (0)20 8849 2251 F. +86 (0)21 6160 1568F. +44 (0)20 8849 2250 infochina@cimaglobal.comcima.contact@cimaglobal.comCIMA has offices in the following locations: Australia, Bangladesh, Botswana, China,Ghana, Hong Kong SAR, India, Ireland, Malaysia, Nigeria, Pakistan, Poland, Russia,Singapore, South Africa, Sri Lanka, UAE, UK, Zambia, Zimbabwe.American Institute of CPAs1211 Avenue of the AmericasNew York, NY 10036-8775T. +1 2125966200F. +1 2125966213Chartered Institute ofManagement Accountants26 Chapter StreetLondon SW1P 4NPUnited KingdomT. +44 (0)20 7663 5441F. +44 (0)20 7663 5442978-1-85971-764-6 (PDF)www.cgma.orgSeptember 2012 SM The Association of International Certified Professional Accountants, a joint venture of AICPA and CIMA, established the CGMA designation to elevate the profession of management accounting globally.