Maximising People Power


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Maximising People Power

  1. 1. ACCOUNTANTS FOR BUSINESSMaximising people power:effective talent management in financeA joint report by ACCA and KPMG
  2. 2. Foreword by ACCA As the global body for professional accountants, ACCA recognises the value that effective finance functions can bring to every organisation. Whether in times of economic growth, recession or gradual recovery, finance professionals need to provide the information required by managers to make strategic decisions and achieve day-to-day operational success. Each member of the finance team has an important role to play, whether striving to be an influential business partner, meeting financial reporting requirements or delivering efficient transaction processing. The challenge is to create the appropriate finance function structure and provide the necessary support to enable each individual to deliver their role most effectively. This requires a holistic approach to talent management – the implementation of integrated talent practices that bring together the goals of the organisation and the needs of the individual. This report has been produced through a successful collaboration between ACCA and KPMG, drawing on both organisations’ insights and experience. It sends some clear messages about the importance of integrated talent management for finance, and directly supports ACCA’s global programme in 2011, Accountants for Business. It should leave no doubt that developing talent is a vital issue for all finance leaders, and one that must be addressed if finance functions are to fulfil their potential and provide the necessary support their organisations need to thrive in this increasingly complex and challenging world. Helen Brand Chief executive, ACCA2
  3. 3. Foreword by KPMG The performance of the finance function is invariably crucial to the success of almost every organisation. This is something we see consistently across the globe and at KPMG we have a long track record of working with clients to build the capability and impact of their finance communities – and through that, to deliver improved business performance.Mark Williamson Finance directors are under increasing challenge to deliver maximum return on investment in capability, and there is a universal desire to boost the strategic and commercial impact of the function; to move from being a reactive provider of management information to a proactive value-adding function that shapes the strategic agenda. At KPMG we work with clients to do just this. And experience has highlighted several key elements to our approach that make a difference: our advisors have a deep understanding of finance functions – the roles, the processes, the outputs – and we tailor our activity accordingly. We don’t do boilerplate. We also take a holistic approach to talent management, looking at organisational structures and career paths and competency frameworks as well as learning and development interventions. And everything we do is aligned to the organisational strategy and current situation. our work with ACCA has highlighted that these are consistent themes globally. ThisIan Lithgow report looks to summarise the key trends, with some suggestions and examples of how companies and organisations have used a strategic approach to finance talent management to generate a competitive advantage for their organisation. mark williamson ian lithgow Head of people & change, KPMG LLP (UK) Partner, KPMG LLP (UK) maximising people power: effective talent management ForEWord 3 in finance
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  5. 5. Contents executive summary 6 introduction 8 talent management in 2011 9 the big picture: organisational design 10 case study: talent management in finance transformations 11 finance function effectiveness 13 securing the talent pipeline 14 case study: talent management and the finance business partner role 15 integrated talent management 17 case study: finance talent management – capability frameworks for a major UK building society 19 the drive for transparency 21 conclusion 22maximising people power: effective talent management ConTEnTs 5in finance
  6. 6. Executive summaryThis report provides a follow-up to a March 2010 ACCA survey on talent managementpractices across the finance profession1. A key finding of this research was that less than 20%of organisations had a talent strategy that fully integrated talent identification, development,deployment and retention activity across the finance team. Most talent management practiceswere found to be informal, sometimes run in isolation, and often functionally based without beingpart of an integrated, wider plan.This is a concern because finance functions now have a real wHy talent management mattersopportunity to make a difference to their organisations’ success Talent management is high on the agenda for many CFos– whether in private or public sector, listed multinational or because of the significant challenges faced by financesME. The economic crisis provided heightened visibility of the functions. Finance teams are under various pressures: tovalue that professional accountants bring, and the next decade minimise their own costs as well as costs organisation-wide,presents an enormous opportunity for finance professionals to to generate maximum value in a period of slow economichelp create and sustain long-term value for organisations. But growth and to position the company to take opportunities thatthis goal depends on the people within finance and the way arise as economic conditions improve, and to respond to newthat the organisation develops and applies their talents. In an regulatory and tax pressures around the world. In order to meeteconomic environment focused on cost, the ability of employers these challenges and maintain a motivated pool of financeto realise and leverage the talent within their finance functions professionals, CFos need to establish great talent practices.will be more important than ever. talent management witHin financeIntegrated talent management brings together all three elements restrUctUringof the value creation cycle2 that ACCA has previously identified: In order to improve finance function effectiveness, CFospeople, performance and professionalism. It recognises the typically consider restructuring finance operations. Theimportance of identifying people with talent and potential, and preferred operating model for finance will be determinedof creating targeted development opportunities. in part by the characteristics of the organisation and the wider economic environment. However, talent managementIt links recruitment and development structures with must be incorporated into any planning for finance functioncompetency frameworks, performance appraisals and reward restructuring. The success of moves to streamline financesystems, creating clear standards and reference points so activity, reduce transaction costs or improve the ability ofthat a culture of high performance can be developed. These finance to provide insight to operational managers dependspractices also help organisations sustain value, because great ultimately on the availability of individuals with the right mixtalent programmes ensure the right behaviours and promote the of knowledge and experience which must be facilitated byimportance of professionalism. Finance professionals play a key effective talent management. Furthermore, the future demandsrole in sustaining value for the long term, adjusting their focus and needs that will be placed on the finance function willaccording to the changing environment in which they work require differences in the way talent is identified, determinedand the challenges it creates. Integrated talent management and developed.frameworks are an essential ingredient to creating andsustaining value for the long term. finance fUnction effectiveness A CFo’s preferred model for finance could incorporate aThis report looks at how talent management can shape and number of elements: centres of excellence bringing togetherinfluence the structure of finance functions, and highlights the specialists in disciplines such as tax or risk, shared servicespractices organisations should be adopting in order to deliver to improve efficiency, outsourced or offshored services tothe best possible talent development for finance professionals. reduce costs and improve transaction quality and flexibility, and business partnering to provide analysis and support to the organisation through commercially minded finance business partners (FBPs). The FBP role has become increasingly important, positioning finance as a key provider of business analysis and insight to support decision making and achievement of strategic objectives.1 Talent management in 2010: foundations for growth, ACCA 20102 The value creation model for business: 2010 and beyond, ACCA 20106
  7. 7. E Executive summarysecUring tHe talent pipeline comprehensive learningThe challenge in bringing a preferred finance model to life is Leading organisations offer a comprehensive range of learningthat certain skills, capabilities and experience levels will be and development activities which can be selected to suitrequired of the finance professionals who are employed. These individual needs. recent trends include a shift towardsmay not necessarily be available in the organisation, or even collaborative e-learning, while online finance portals providingin the wider recruitment market. The finance model must access to management tools, research and best practice are alsotherefore take account of the current availability of skills, and widely used. Experiential learning is particularly popular withthe potential for the organisation to develop desired skills in younger finance professionals, and could include secondments,future among its retained finance professionals. Creating the job rotations and ‘stretch’ assignments. organisations arenecessary talent pipeline can be particularly challenging for increasingly developing virtual finance academies to provide aFBPs, as these require commercial knowledge and strong softer structure to finance training and ensure consistency.skills (communication and negotiation capability, for example),as well as core financial expertise. structured career paths organisations need to develop structured career paths forAspiring FBPs, for example, will generally require focused finance personnel, so that individuals aspiring to reach adevelopment, often involving rotations into non-financial particular position – such as that of FBP – can clearly seecommercial roles, to help them develop the capabilities and the future steps that could help them develop the skills,commercial insights they need. This pipeline creation is part competencies and experience necessary. From an organisationalof an effective workforce planning strategy, which should be perspective these are also helpful with strategic workforcedeveloped and embedded within the organisation. planning and succession planning in the business or institution.integrated talent management performance measurement and rewardIntegrated talent management practices are the next stage The objectives against which finance professionals are targetedin the evolution of talent development and the development need to be aligned to the overall organisational strategy, withof these processes is essential for CFos who aspire to run rewards linked to individual achievements. Tools can alsogreat finance functions. What does great talent management enable individuals to benchmark themselves against desiredfor finance look like? our report suggests a number of key competencies for certain roles, helping them to manage theircomponents, which cover all aspects of the individual’s own career development.employment experience. ongoing reviewdefinition of talent The talent management framework needs to be regularlyThe organisation needs to clearly identify what talent looks like assessed to ensure it continues to meet the requirements of the– the key skills and behaviours that finance professionals need wider organisation and the finance function have in order to deliver the organisational strategy. tHe drive for transparencyrecruitment and talent identification With pressure on costs across organisations, transparency ofrecruitment activity needs to take account of short-term and talent management spend is increasingly important. Thoughlong-term needs. sometimes experienced hires can fill core evaluating return on investment is notoriously difficult in thisvacancies while younger finance professionals are developing area, new effort is being placed on finding ways to measuretheir skills. Talent may also be recruited from elsewhere in the the impact of spending on different forms of learning andorganisation, bringing individuals into finance who have an development and other aspects of the talent managementestablished business or commercial understanding. framework. In this way, spending can be targeted on activities that have most impact on the creation of an effective,competency frameworks strategically aligned and value-adding finance function.These define the technical, business and behaviouralcompetencies required in every finance role at each level.They can be used to benchmark existing talent, identify talentgaps and develop structured career paths that enable financeprofessionals to develop the necessary skills and competencies.targeted developmentsome finance roles will be more critical to the success oforganisations. The developmental needs of individuals in theseroles should take priority where resources are scarce. note thatjunior roles can be as critical as more senior ones. maximising people power: effective talent management ExECUTIvE sUMMAry 7 in finance
  8. 8. Introductionrecent ACCA research3 confirmed the vitally important role that finance plays withinorganisations, with over half of survey respondents indicating that the role of finance professionalshad become more important since the global economic of the most critical roles is that of the Finance Business The astute CFo recognises that the benefits of great talentPartner (FBP) – the most business-facing finance role. FBPs practices, however, extend beyond engagement and motivation.provide the insight and analysis to support strategic decision Effective talent management serves to ensure better successionmaking. Fulfilling the role effectively requires a mixture of strong planning, and has a positive impact on the bottom line throughtechnical and commercial skills and capabilities, which finance negating or reducing ‘staff replacement’ costs. Above all else,professionals will not necessarily possess unless they have it helps cultivate the skills that finance professionals needundertaken structured development activity. to improve the performance of their organisations and drive long-term sustainable value.securing the right talent is one of the biggest challengesCFos face. In KPMG research among over 500 senior finance similarly, talent management is broader than the individual:executives4, over 50% of respondents said that difficulty ensuring the function is structured to maximise the talentfinding and retaining skilled finance professionals was a major pipeline, that roles are designed to give challenge andbarrier to improving finance function performance. This was enrichment to the individual and value to the organisation, istheir number one concern, as it had been in previous KPMG key to an integrated talent management strategy.studies. This is encouraging, because CFo ‘buy in’ to talentmanagement is critically important – and not just when markets Finance functions face many tough challenges as theirare buoyant, but for the long term. sustained CFo support is organisations strive to generate growth and keep costs to anecessary to maintain momentum behind development policies minimum. Talent management will be critically important forand practices. their success. The best way for finance teams to meet the demands placed on them – and provide maximum value to theirUnfortunately, the economic slowdown has frustrated many organisations – is by systematically identifying, developing,talent management efforts. ACCA’s 2010 survey into talent deploying and retaining those who make a significant differencemanagement5 found that the tough economic climate had and contribution to the organisation’s success. This requiresimpeded finance development activity. over 50% of participants effective and close working with the Hr function to ensureindicated that their organisation’s talent management appropriate best practice is employed.programme for finance staff had been put on hold. Integrated talent management as described above can be hardAs the gradual recovery continues, however, many organisations to achieve, requiring commitment from CFos, Hr and otherare likely to increase their focus on talent management. There senior managers. However, leading organisations appreciatewill be a need to keep high-performing individuals motivated that the effort is worthwhile. This report looks at the issues toand committed. ACCA’s 2010 survey6 found strong support consider when embarking on talent management for finance,for the concept that talent programmes play an important and shares with you the approaches some leading organisationsrole in keeping finance staff engaged and motivated (75% in are taking.agreement). As more opportunities become available in theexternal market, retention of key individuals is likely to becomemore difficult. An integrated talent management programmethat supports the development of high-performing individualsin key roles, with clear opportunities to progress careers instructured ways, provides a valuable mechanism in keepingfinance professionals engaged and motivated.3 The value creation model for business: 2010 and beyond, ACCA 20104 Being the best: thriving not just surviving, KPMG 20095 Talent management in 2010: foundations for growth, ACCA 20106 Talent management in 2010: foundations for growth, ACCA 20108
  9. 9. Talent management in 2011organisations have changing needs of finance, shaped by trends in the global businessenvironment. For many entities, large and small, growth will be tougher to achieve in the comingyears. This means squeezing every bit of value from inputs and minimising costs are top priorities.Finance functions need to provide insight into value drivers, return on investment, cost controland strategic priorities. There is heightening demand for highly commercial accountants – FinanceBusiness Partners (FBPs) – who can apply their core technical knowledge to real business issuesand provide the ‘finance lens’ on organisational decision making. ACCA has previously highlighted7how finance professionals play a key role in value creation – applying their talent, skills andbusiness knowledge to drive great performance across the organisation and increase value, butalso helping preserve value through their professional ethos and competence.Pressure on costs is triggering restructuring activity, not least in This combination of factors is creating new challenges for talentthe finance function. CFos appreciate the need to increase the management in finance.efficiency of their own systems and processes, seeking further • How do CFos structure the finance function and the roleseconomies of scale in transaction processing or maximising the within it to ensure maximisation of resources and a stronguse of IT systems and automated processes. long-term talent pipeline?Finance teams also need to respond to governmental pressures, • How do CFos access the specialists they need – must theyas tightening national budgets have increased attention recruit or can internal talent be trained?on corporate taxes around the world. organisations need • What is the best way to improve the commerciality of thespecialists to manage their tax risks and costs. similarly, finance function and boost its internal credibility? Howregulatory risks remain high, particularly in sectors such as can we develop FBPs to ensure they have sufficiently deepfinancial services, so finance expertise in regulatory compliance organisational understanding to be able to provide valuableand reporting is also required. other specialists are also valued, analysis and insight to operational divisions?in treasury, internal audit and looking ahead, carbon andsustainability reporting, and recent ACCA research8 confirms • How can individuals in roles deemed less critical bethat risk management will also be a key priority and focus motivated and their expertise retained if they see trainingbeyond 2011. In the same research9, 45% of business leaders priorities being focused on others?thought it ‘quite likely’ that they would employ more finance • How can the organisation create a sufficiently stimulatingspecialists, while a further 26% suggested this was very likely. career path to retain the talents of Generation y?Moving from the corporate to the individual perspective, talent • How can finance assess return on investment in its people inmanagement is also partly about managing the aspirations and order to target learning and development and general talentaims of the workforce. The career expectations of many finance management spend most effectively?professionals are changing. The youngest accountants in theprofession, Generation y, place high value on development Addressing these challenges requires a talent managementopportunities and career progression – but not necessarily along framework – developed from a solid understanding of thetraditional paths. organisation’s strategy and hence its finance capability needs, but which takes into account the realities of talentAccording to recent ACCA research, many wish to gain broad development in the modern world, the limitations and trade-offsexperience10, initially following a horizontal career path and that may be required.gaining experience in a range of roles within finance, beforepotentially moving on to a more traditional, vertical careertrajectory. A significant number ultimately seek careers outsideof mainstream finance roles. Managing the aspirations of theyoungest generation in finance will be a big challenge fororganisations in the next decade, but equally, so will be theongoing management of the generation above them, Generationx, in a corporate world where finance careers are becoming lessuniform – the emergence of career paths based on a corporate‘lattice’ rather than a corporate ladder.7 The value creation model for business: 2010 and beyond, ACCA 20108 The value creation model for business: 2010 and beyond, ACCA 20109 The value creation model for business: 2010 and beyond, ACCA 201010 Generation Y: realising the potential, ACCA 2010 maximising people power: effective talent management TALEnT MAnAGEMEnT In 2011 9 in finance
  10. 10. The big picture: organisational designFinance functions evolve over time and can experience successive redesigns as the organisationsthey serve themselves grow and develop. sometimes finance function redesign follows a period ofacquisitive growth by an organisation. successive bolt-ons of new operations can create a needto streamline finance activity and reduce duplication of effort. The needs of any organisation fromfinance evolve throughout the business lifecyclereconfiguration of the finance function can contribute to a drive The preferred operating model for finance will need to reflectto reduce costs – often a key factor behind restructuring and the CFo’s strategy for finance – taking account of both thestreamlining, particularly in tough economic climates when expectations that the organisation has of finance, and theback office overheads are targeted. However, finance functions ambitions that finance has for itself. some key questions needare also restructured in order to improve their ability to add to be considered in order to develop that strategy12:value to the organisation and to help management decision • What is the value-creating objective of the organisation?making. This applies regardless of whether the finance team isworking in the public or private sector. • Where and how can finance best contribute to supporting the organisation in value creation? (What do our internalWhat issues do CFos need to consider when determining the and external stakeholders want and need from the financeoptimal finance model for their organisation? As outlined in a function?)previous ACCA report11, the most appropriate model for finance • How capable is finance in delivering these objectivesis influenced by a number of key factors: currently?• business environment, including the economic cycle: finance • How much will it cost and what metrics can be used to may need to focus most on cost and controls in recessionary measure success? times, for example, or on compliance during a period when regulators are highly active • Could a new structure – people, process, systems – improve the success of finance in supporting the organisation?• organisational profile and strategy: the finance function must reflect the strategic priorities of the business, so for example, The answers to these questions help to determine whether a new emphasising custodial issues such as risk management in model for finance could improve efficiency and added value. an investment company or prioritising business analysis in a high-margin oil company• organisational operating model: a group with highly autonomous and geographically dispersed business units may prefer for the majority of finance activities to be undertaken locally, whereas a centralising model would bring many finance activities together at head office• organisational size and lifecycle stage: smaller organisations have less complex finance functions with individuals often fulfilling multiple roles, whereas larger and typically more mature organisations are likely to require more specialisation and may have different priorities for finance, such as a greater requirement for risk management.11 Accountants for business, ACCA 201012 Accountants for business, ACCA 201010
  11. 11. TAlEnT MAnAGEMEnT In FInAnCE TrAnsForMATIons BacKgroUnd understanding of the trade-offs and talent management at the heart of For most companies, talent considerations, always with talent the organisation management activity focuses on management a factor. In designing the A similarly talent-driven approach the individual, and it is invariably structure for the reporting teams, for shaped the structure of the FBP roles. a tactical activity that takes place example, the client initially wanted locally. But for KPMG, finance talent to align actuarial and management The client was initially keen to management is a strategic driver of reporting within one team. From a have a small number of very senior value, and it is a key consideration at business perspective this gives closer roles, creating a heavy-hitting the early stages of all major activity. alignment across all reporting activity director-style role. and a more consistent approach. This is demonstrated in recent work From a talent perspective this can KPMG undertook with the UK arm But from a talent management cause succession planning issues of a major European Life Insurer. perspective, consideration needs to be and creates difficulties in building driven by a need to restructure to given to the integration of actuarial and a clear career path through to the meet forthcoming regulatory changes, accounting resource across the team – role. KPMG’s experience shows that along with a desire to separate the two disciplines that are often described functions with a small number of very finance and risk functions, the insurer as being like oil and water. And the senior roles can be forced to rely on engaged KPMG to help redesign their leadership of such a team poses external recruitment into the roles as operating model. often a technical and challenges: there are not many senior the gap between these roles and the process-driven activity, by engaging finance figures with the credibility, rest of the function represents too talent management expertise from leadership capability and breadth of large a step up for internal candidates. day one, KPMG was able to help the actuarial and accounting experience to This is an expensive structure, and a client transform their finance function effectively lead such a function. demotivating one. by designing an organisation that delivers the overall strategy – and has KPMG worked with the client KPMG instead helped the client finance talent management principles to highlight and manage these develop an FBP team with a wider embedded at all levels. considerations at each stage, ensuring range of roles: more junior FBPs facing that the structure was not based off to different levels of the business, approacH purely on process or functional led by a handful of senior FBPs, some ensuring strategic alignment analysis, but also with a thorough of which had additional commercial KPMG has a tested methodology view of the talent management director-style responsibilities. The for helping clients redesign their implications needed in order to make result was an FBP team built on talent organisations, and a major element is the abstract organisational structure management principles, and one that the development of design principles. a high-performing finance function provided employees with a clear career Working with stakeholders, KPMG in reality. path to the top of their profession. identified the key strategic priorities for the organisation and captured these in a set of organisation design principles. These principles set out the main features that the future finance function should embody TAblE showInG An ExCErPT FroM ThE orGAnIsATIon dEsIGn PrInCIPlEs in order to support delivery of the organisational strategy, and they design principles context provided the framework against which clear functional ownership ownership of data and data quality in one place. reporting and the organisation design options could and accountability analysis team responsible for reviewing the overall picture and be validated. see table. ensuring different bases are aligned common activities focused Accounting team focused on production of core accounting numbers. Understanding the od trade-offs and in centres of excellence Actuarial team focused on core actuarial outputs. Both accounting considerations and actuarial teams support analysis of change The development of the organisational structure was based on a series strategic business Finance BP teams will be closely aligned to the business – but pure MI partnering by the finance production will sit centrally, allowing the FBP team to focus on value- of decisions, driven by the design function add analysis and decision support rather than numbers production principles, and informed by KPMG’smaximising people power: effective talent management 11in finance
  12. 12. From a business perspective it the key roles within the organisation generated a strong pipeline of talent at – those that had the biggest impact on all levels, and the commercial aspect customers, regulators or key performance to the roles worked to prepare senior indicators – were identified, allowing the finance professionals for broader client to prioritise time and resources on business roles. these roles and thereby adopt a more focused approach towards its finance embedding lasting behavioural change talent management. The structure in place, the implementation was supported by a tHe impact of a talent-driven range of talent management activities approacH to organisational designed to embed the changes. design reviewing the organisation design What does talent look like? activity, the client recognised several Facilitated by KPMG, the finance key differences resulting from the function worked to understand and talent-driven approach to operating redefine the definition of ‘talent’. model developed adopted by KPMG: Characteristics such as an increased • development of an organisational commercial focus and stronger structure grounded in reality, and leadership capability were identified, one that is designed with people at and this in turn shaped the talent its heart. identification process. • Involving talent management A holistic approach to performance experts from the beginning led to management and reward a deeper understanding of the od objectives were centrally reviewed considerations at every stage, and to ensure alignment with the flagged the importance of issues business strategy, and reward and such as building a strong talent recognition activity was similarly pipeline earlier than would normally consistent, ensuring that key talent have been considered. management levers were reinforcing • A realisation that genuine finance the same message talent management is a strategic activity that impacts on all levels Activity was focused on critical roles of the function and not a tactical In any organisation some roles are activity that is separate from wider more important to the success of an functional changes. organisation than others. Using KPMG’s Critical roles methodology (see Figure 1) FIGurE 1: ThE sTAGEs In KPMG’s CrITICAl rolEs METhodoloGy role talent strategic focus value chain activity identification investment review decomposition analysis and review analysis12
  13. 13. Finance function effectivenessThe ultimate goal of talent management in finance is to improve the efficiency and effectiveness ofthe finance team.The more effective finance proves itself to be, the better the As well as lowering costs, outsourcing can give the organisationrelationships it can develop across the organisation13. This access to best practice and experts in transaction processing,creates a virtuous circle. The better finance performs, the and potentially greater flexibility of resource, which canstronger its reputation and the more willing other parts of accommodate the organisation’s changing needs duringthe organisation will be to work with finance and listen to its fast-growth periods. outsourcing also frees up time for thevalue-adding proposals. retained finance team, enabling them to focus on the highest value-adding activity – delivering insight and interpretation withThere are a variety of models open to CFos when seeking to commercial awareness14.improve the efficiency of the finance function or restructure itin a way more closely aligned to the organisation’s strategy. BUsiness partneringAdopting the right model is an important element of integrated Finance business partnering is about supporting the wholetalent management – ensuring that resources are deployed in business to raise standards in key decision areas, taking athe most effective manner globally. This could involve a number forward-looking and commercial view supported by a richof different approaches. consulting toolkit and high emotional intelligence to help articulate different options and influence decisions. Wecentres of excellence believe that the FBP needs to be free from the distractionCorporate centres of excellence in areas such as tax, treasury, of core finance work to offer this level of support to theirrisk management or internal audit can enable technical internal customers. our experience shows that the larger thespecialists to maximise their contribution to the wider organisation, the greater the opportunity to scale the Financeorganisation in the most efficient way. Business Partnering solution towards a purer model with specialist provision15.sHared servicesMany large organisations use shared service centres to handle Adoption of such a model as part of a finance transformationtransaction processing for payables, receivables and the general process has major implications for talent management. Ifledger, although increasingly there is a movement of higher activities that once provided the training ground for accountantsvalue activities and processes to third parties and sourcing are increasingly outsourced, for example, new ways need to bepartners. Key benefits can include greater efficiency and lower found to enable the transfer of knowledge from senior to moreor more variable costs. junior personnel. Where finance roles are dispersed around the world, this also has an impact on the career paths individualsoUtsoUrcing and offsHoring may need to follow as they build up their experience. If financeThere is now a well-established trend of outsourcing personnel are required to act as business partners, talenttransactional activities to third party specialists, often in management processes need to be developed to ensure FBPsoffshore, lower-cost locations. The concept of ‘near-shore’ have the necessary commercial and softer skills.outsourcing has also emerged, relating to the relocation ofbusiness processes to cheaper locations which have somecultural links with the organisation’s home country, such asMexico for Us businesses or Ireland and Eastern Europe for UKbusinesses. Though initially limited to the most basic activities,organisations are increasingly seeking to outsource mid-office orhigher-value processes and finance services, such as statutory/regulatory accounting, financial reporting and tax – evenbudgeting, forecasting and financial analysis.13 Collaborative working: why relationships matter in finance, ACCA 201014 Finance of the future – looking forward to 2020, KPMG 200915 Mastering finance business partnering: the missing link to building finance’s influence, KPMG 2011 maximising people power: effective talent management FInAnCE FUnCTIon EFFECTIvEnEss 13 in finance
  14. 14. securing the talent pipelineno finance function reorganisation can expect to succeed without consideration of the talentmanagement implications. In fact, the availability of certain skills – or combinations of skills –could render a preferred plan undesirable. right from the start, any proposed finance functionmodel needs to take account of the ability to recruit, retain, develop and motivate individuals withthe appropriate skills. In the value creation cycle previously outlined by ACCA16, ‘people’ form acritical element. If organisations are to generate value effectively, they need to be able to attractand retain finance professionals with a range of technical and business skills, and to develop thoseindividuals to their full potential.Accessing people with the appropriate skills and capabilities some of these skills and capabilities may not be fully oris particularly challenging in the area of finance business sufficiently developed in young finance professionals, but theypartnering. CFos want to be able to support operations with can be encouraged through carefully planned developmentindividuals who combine finance and accounting technical programmes. This is important, because CFos need to be ableknowledge with commercial sense and a deep understanding to provide FBPs capable of meeting the needs of the businessof the value drivers of that particular organisation. The FBP operations they support, who can inspire trust and respect.role also requires highly developed softer skills – the ability to If they do not, there is a risk of the FBP role being passed toinfluence, negotiate and communicate clearly. But how can individuals from a commercial, non-financial background whoa technically adept finance professional shift from being a are then taught the finance fundamentals they need. This woulddata analyser and provider of management information to a weaken the influence that finance has in the organisation, andtrusted adviser and proactive, commercially astute business arguably the quality of service that FBPs could provide becausepartner? How can accounting professionals make the leap from some of the strengths of qualified finance professionals – thefinancial reporting, internal audit or regulatory compliance ability to interpret numbers quickly and apply highly rigorousroles to become credible FBPs? securing this talent pipeline is analysis – would be lost.challenging to say the least. The development of FBP skills and capabilities can beEmployers can all too often assume that employee skill sets, supported in a number of ways, including job rotationbehavioural competencies and individual motivation are easily programmes so that finance personnel experience life at thechanged through the implementation of a new operating model sharp end in other areas of the organisation, such as marketingalone. But culturally changing the way people do their day or any other primarily commercial role. Future FBPs could alsojob and how finance interacts with the organisation requires a be encouraged through coaching or mentoring programmes ortargeted focus on talent management. by completing temporary secondments. Bringing non-finance professionals into finance for periods of time also helps theThe starting point is to understand the skills that are required transfer of broader business knowledge.for successful FBPs. Then the development support can becreated. The skills and capabilities are numerous: the ability to successful business partnering requires a long-term talentact like a business entrepreneur, proactively working with the management approach. For example, when recruiting neworganisation17; the ability to use technology most effectively finance trainees, candidates should be assessed for theirto support advanced data analysis; influencing and conflict potential to become FBPs. This may influence the type ofresolution skills to win the support of internal stakeholders; individual recruited.communication skills to explain financial analysis in simpleterms to business leaders; initiative to identify issues wherefinance can provide added value.16 The value creation model for business: 2010 and beyond, ACCA 201017 Finance of the future – looking forward to 2020, KPMG 200914
  15. 15. TAlEnT MAnAGEMEnT And ThE FInAnCE busInEss PArTnEr rolE BacKgroUnd and context Kpmg’s tools and approacH developing bespoke solutions The capability of the finance function defining the changing role With the role requirements and, crucially, its ability to interact requirements understood, KPMG helped the client with and support the organisation, is For both clients, the first step was develop some bespoke solutions. key to organisational success. Through to define the changed requirements The existing competency frameworks talking to clients, KPMG has found a for the FBP role. Through a series of were reviewed, and the competency positive link between strong company workshops and internal interviews, requirements for the FBPs overhauled performance and close alignment KPMG worked with the clients to to ensure the appropriate emphasis. of the finance function with the identify the key capabilities required This was done alongside a review of organisation18. by FBPs. This was supplemented current capability. solutions included by KPMG’s industry experience and the mapping of current staff into FBP The key to this relationship lies in external research, such as that which roles and coaching and mentoring for the successful adoption of a finance showed an increasing demand for existing FBPs. business partnering model. And as strategic decision support, increased so often, moving to an effective FBP cross-functional collaboration and structured career paths model involves managing a variety improved training and development20. A major deliverable was the of challenges; preparing the finance development of structured career function for a move to business The role definition was accompanied paths. A consistent theme from partnering, aligning FBPs with the by an analysis of the current capability. stakeholders, echoed by KPMG’s organisation and building an effective Here again, internal talent and experiences across the industry, was FBP team are all key19, but few issues performance management data was that FBPs were either too technical are more pressing than the need to supplemented by external research, (and not commercially-aware) or ensure talent management principles in particular evidence showing that too generalist, lacking the technical are integrated into all activity. accountants are over twice as likely to depth and experience required to add prefer working in a well-structured and genuine value. client situation orderly environment21. This can bring KPMG has worked with two clients with it a discomfort regarding change KPMG therefore mapped the roles in recently who, between them, have and a reduced ability to read others’ the finance function and worked with tackled some of the key issues outlined feelings, key pillars of the FBP role. the client to define high-impact career above. A global pharmaceutical paths for potential FBPs, linked roles company came to KPMG for help For the UK insurer, this analysis led that together provide broad experience supporting the development of the to an increased focus on capabilities of the key finance activities, such strategy and structure of finance such as leadership ability, commercial as shared service environments business partnering within their acumen and strategic focus, as well as and some of the more technical organisation as well as develop a strong stakeholder management skills disciplines, as well as giving exposure toolkit to assist finance business and an ability to operate in a matrix to the business and commercial areas partners with training, structures and environment. of the function. external best practice examples. similarly, KPMG has recently worked with a predominantly UK-based what is finance business partnering? Kpmg’s point of view insurance group that was looking Finance business partnering is about supporting the whole business to raise standards in key decision areas, taking a forward-looking and commercial view supported by a rich consulting toolkit to substantially increase the cost and high emotional intelligence to help them articulate different options and influence decisions. efficiency and commerciality of its We believe that the FBP needs to be free from the distraction of core finance work to offer this finance function. A major building level of support to their internal customers. our experience shows that the larger the organisation, block in this process was the the greater the opportunity to scale the finance business partnering solution towards a purer model development of a commercially aligned with specialist provision. business-facing FBP team. 18 Thriving not just surviving, KPMG 2009 19 see Mastering finance business partnering (KPMG 2010) for a more comprehensive analysis of these issues 20 University of Bath school of Management 21 Accountants for the 21st century: where are you? Critical perspectives on accounting, July 2007, vol 18, issue 5maximising people power: effective talent management 15in finance
  16. 16. Progression through these career And last, by communicating a paths – which were supported with commitment to building a more the relevant learning and development strategic and business-focused interventions, as well as reward function, the finance team was able and performance management to gain internal respect, credibility levers – will provide individuals and support for their activity at the with both the technical finance earliest possible stage, a contributor to understanding and the commercial a successful transition to an effective insight and interpersonal skills to FBP model. move into senior FBP roles equipped to provide genuine strategic value resUlts to the business. Building this career Measuring the strategic impact of pathways concept outside of finance, changes to the FBP role is extremely as well as developing a set of common difficult: the role holder seeks to shape competencies across an organisation, and influence the activity and outputs will also help identify possible of others across the business and internal candidates who could fit the within the finance function, and setting requirements needed to succeed in the quantitative objectives to measure this finance function. can have the unintended consequence of forcing a focus on delivery of a comprehensive learning portfolio data and MI: just the sort of tactical For the global pharmaceutical responsibilities many FBP models seek company, the development of to move away from. a capability framework and redefinition of roles was accompanied However, KPMG has worked with by another major deliverable, the clients to put qualitative measures in development of a comprehensive suite place, such as a regular stakeholder of learning interventions designed to survey to quantify customer perceptions help build capability. regarding the quality of FBP support they receive. At a more targeted level, KPMG developed a series of finance the global pharmaceutical company academy modules aimed specifically is now receiving over 20,000 hits at building FBP capability, accessed per month on its finance portal, from through a finance portal, a bespoke around 80 different countries, and solution providing deep external and take-up of the e-learning modules is internal content (through multimedia consistently strong. channels) for FBPs at the touch of a button. The scope of the Academy The longer term impact of a was global, and crucially it was talent-focused approach to developing heavily sponsored by the finance the FBP role is expected to be the leadership team, who also contributed creation of a strong pipeline of to the content. technically adept finance professionals performing strongly as commercially- communication and involvement focused FBPs, genuinely aligned to For both clients, KPMG worked their business stakeholders. hard to ensure that key stakeholders across the business were involved at all stages of the work. This had several benefits: most obviously, the information received was invaluable in shaping the role requirements. But there was also a strong engagement benefit, with business customers feeling a sense of ownership and responsibility for the success of the FBP roles they helped define.16
  17. 17. Integrated talent managementCreating an appropriate finance model depends on the development of an integrated talentmanagement strategy. The key elements of any talent strategy cover the whole employee lifecycle,including the definition and identification of talent, recruitment and resourcing, performancemanagement and reward, learning and development, succession planning and career management.Integrated talent management brings together all three sUccession planning and worKforce planningelements of the value creation cycle22 that ACCA has previously Effective management of the talent pipeline – identifyingidentified: through people, organisations create value by successors to key roles and future skills gaps – is an importantsuccessfully recruiting finance professionals with the right skills part of any proactive talent strategy. Aligning this with aand then undertake development interventions to drive great workforce planning model and approach that helps identify thebusiness performance. These practices also help organisations strategically vital skills and puts in place a resourcing strategysustain value, because great talent programmes ensure the right to build them is a fundamental component at the heart ofbehaviours and promote the importance of professionalism. effective talent management.defining talent targeted developmentFundamental to any talent strategy is the definition of what With limited resources, development activity needs to betalent looks like: this must be specific to the organisation and focused on critical roles – those that have most impact onclearly linked to the overall strategy. Understanding the skills and the organisation’s ability to gain competitive advantage orbehaviours needed to deliver organisational success at any given achieve strategic goals – and key individuals. They could bestage in the business cycle – and recognising that these will in business partnering, compliance or other specialist (eg tax)change over time – is key, and should shape all talent activity. roles depending on the specific organisation and sector, and criticality will be judged based on the role’s impact on keyrecrUitment and talent identification factors such as high-value customers, regulatory requirementsrecruitment activity reflects the current and future needs or priority markets. Critical individuals may not alwaysof finance. If looking to build a strong supply of FBPs, for be the most senior – lower-level roles may be critical forexample, in the short-term it may be quicker and cheaper for organisational performance.the organisation to recruit external finance professionals whoalready show strong commercial awareness and capability compreHensive learningin the softer skill set area. Longer-term planning can then The range of learning and development options open to financeinclude the recruitment of finance trainees with the behavioural is extensive. Leading organisations offer a comprehensive rangecapabilities appropriate for succeeding in the FBP role in future. of learning activities which can be selected to suit individualIt may also be worth looking internally in the organisation for needs (both in terms of content and training time availability).individuals who already have business skills and commercial recent trends include a shift towards collaborative e-learning,knowledge, but who are interested in gaining a professional for example23. online finance portals are also increasinglyaccounting qualification. common, giving professionals in dispersed locations access to management tools and techniques, technical knowledgecompetency frameworKs sources and research.Competency frameworks define the technical, business andbehavioural competencies required in every finance role and Experiential learning is particularly popular with youngerat each level to deliver organisational success. These can be finance professionals24, and could include secondments, jobused to benchmark existing talent as well as highlighting any rotations, shadowing and ‘stretch’ assignments designed toskills gaps that need to be filled through internal development stretch an individual’s capabilities beyond what might beor recruitment. They also serve as a reference point for expected at their current experience level. Use of stretchunderstanding career paths across the organisation. Along with assignments or appointments is particularly relevant in timesthe definition of talent, frameworks should be regularly reviewed of cost pressure, when training and development budgets areto ensure they remain relevant and fit for purpose. limited25. ACCA research also consistently highlights the value of coaching and mentoring across the profession26.22 The value creation model for business: 2010 and beyond, ACCA 201023 The future of professional development, ACCA 200924 Generation Y: realising the potential, ACCA 201025 Fighting back through talent innovation: talent management under threat in uncertain times, CIPd 200926 Paths to the top: best practice leadership development for finance professionals, ACCA 2007 maximising people power: effective talent management InTEGrATEd TALEnT MAnAGEMEnT 17 in finance
  18. 18. Integrated talent management IIn order to support a systematic approach to finance trainingand development, organisations are increasingly developingvirtual finance academies. These provide a structure totraining, ensure consistency across the organisation, access toknowledge management and information on industry trendsand development, and link learning to career pathways androle planning. They can be aligned to performance and talentmanagement systems, and can offer the employer a wealth ofdetailed management information and transparency relating toemployee performance and development.strUctUred career patHsIn order to create the talent pipeline required for key financeroles, such as FBPs, organisations need to create structuredcareer paths along which individuals can progress. These couldinclude rotations through key finance roles, secondments tooperational areas and even external secondments. Transparentcareer paths help keep employees engaged and motivated, butalso give a blueprint for the organisation on where critical rolesexist, how these can be sourced and an idea on the training andlearning interventions required to support this.performance measUrement and rewardThe objectives against which finance professionals aretargeted need to be aligned with the overall organisationalstrategy, with rewards linked to an individual’s successin achieving their targets. Tools that enable individuals tobenchmark themselves against desired competencies forcertain roles can also help finance professionals understandtheir own strengths and weaknesses, gain a realistic sense ofcareer development opportunities and encourage ownership ofcapability and skills development.ongoing reviewIntegrated talent management is a dynamic process.organisations and economies rarely stand still. demandsmade of finance will also continue to change. Therefore, thetalent management framework needs to be regularly assessedto ensure it continues to meet the requirements of the widerorganisation and the finance function itself.18
  19. 19. FInAnCE TAlEnT MAnAGEMEnT: CAPAbIlITy FrAMEworKs For A MAjor uK buIldInG soCIETy BacKgroUnd FIGurE 2: ExCErPT FroM ThE CAPAbIlITy dEvEloPMEnT PrInCIPlEs As part of a large organisation-wide cost optimisation programme, KPMG strategic principles programme and intervention worked with one of the UK’s largest principles building societies to improve talent Individual must take increased responsibility Individuals across financial management must management within their financial and ownership for their learning and have a consistent developmental experience and management function. development best practice is shared This must be a function-wide approach that a blended approach to delivery is key – a mix of The team was made up of around 130 is flexible enough to accommodate both ‘on the job’ training, classroom based learning, individuals, the majority of whom had team and individual needs while providing a and coaching and mentoring a high degree of technical knowledge, consistent and high quality experience typically underpinned by a professional Provide tracking and mi reporting capability smes within financial management will be qualification. to identify best practice and instil a involved in materials development and delivery continuous improvement culture despite this strong technical expertise, the financial management team was not well-regarded within the management activity, and act as with the client. This evaluation, along company. Poor accuracy of data and an anchor throughout the work: with the individual’s stated goals and reporting skills, a perceived lack of all activity is validated against the aspirations, shaped the creation of a decisiveness, and limited knowledge principles to ensure it is strategically bespoke development plan. of the building society and financial aligned and adding value. market as a whole meant the financial The next stage was for KPMG to management team were not providing critical success factors work with the client on developing a constructive insight or challenge, or As with the above principles, KPMG capability transformation programme assisting the organisation in making worked consultatively with the client to that would ensure both the function as strategic decisions. identify the key factors necessary to the a whole and its individual employees success of the activity. once defined, effectively contributed to delivering the As a result, the building society had the interventions were developed to building society’s strategy. a finance team who, although very ensure that they incorporated the strong technically, were ineffective critical activity on which success is capaBility transformation in translating this expertise into recognised as being dependent. There were two main elements to the effective organisational support. finance talent management led by The team needed to be strategically While the principles defined the KPMG: the development of a financial aligned to the organisation talent management requirements for management capability framework, and more proactive in order to the business, KPMG also evaluated and the construction of a blended function across the organisation every employee against the capability development portfolio to build the as genuine commercially-focused framework developed in conjunction required capabilities. business partners. approacH KPMG was asked to review the approach to talent management FIGurE 3: ExCErPT FroM ThE CrITICAl suCCEss FACTors within financial management. Working with the client, a set of capability embedded in the Capability development will not work in isolation – it must be development principles and some people and performance integrated into all people and performance management processes, critical success factors were defined. management processes such as retention, talent development, reward and promotional criteria targeted and mandatory The capability development interventions and activities are targeted at capability development principles specific development needs and at driving up the overall capability of Key to KPMG’s methodology is the financial management. development of guiding principles. ‘non-attendance and non-completion will not be acceptable’, which These provide the link between would mean by not completing the required training the individuals’ organisational strategy and talent objectives cannot be met for the yearmaximising people power: effective talent management 19in finance
  20. 20. financial management capability roles within the function and the skills define the return on investment in framework and capabilities they would build, the development interventions. drawing on both the client’s business client was able to boost individual strategy and extensive experience of development (and through that, There are qualitative measures working in talent management across engagement and retention) and also in place to track stakeholder financial services, KPMG developed a ensure a strong talent pipeline moved perceptions of the financial framework with three distinct capability through the critical roles, delivering management function, both categories as show in Figure 4. strong performance in the areas where from across the business and this had the highest impact. internally. Likewise, retention and a blended portfolio of interventions to engagement across key segments build capability resUlts is tracked. Initial feedback has The development of the capabilities Quantitative measurement of the been strongly positive, with was supported by a blended portfolio impact of talent management activity financial management participants of products as show in Figure 5 on business performance is notoriously recognising the investment made in difficult. The business is naturally them and the positive commercial clearly defined career paths tracking spend on talent management, impact it has had, and business A final key element of the talent and KPMG is working with them to stakeholders both acknowledging management activity was the map spend on capability-specific the commitment to commercialising development of career paths for the training against changes in capability the function and starting to see finance population: by setting out the levels; identifying the correlation the impact in their dealings with typical career progression, the key between the two can then be used to financial management. FIGurE 4: CAPAbIlITy CATEGorIEs technical capabilities These focused on defining the core technical accounting and finance skills needed by finance professionals enabling knowledge designed to build understanding of the company, the current financial market and the changes it is going through. Building these capabilities would allow the client to add commercial value and move beyond being technical experts Behavioural capabilities Based on the client’s leadership behaviours and values, these defined the behavioural traits that are fundamental to operating effectively and professionally across the business FIGurE 5: A blEndEd PorTFolIo oF ProduCTs classroom training Bespoke modules were developed for the client and the existing portfolio was mapped against the new capabilities masterclasses and Activities such as key industry speakers and access to recommended knowledge forums books or journals assisted the financial management team in keeping up to date with market conditions on-the-job learning A structured approach to knowledge transfer on the job, allowing instant application of skills acquired coaching and mentoring The use of business subject matter experts to share expertise and develop junior employees, with the added benefit of a reduction in key man dependency e-learning A cost-effective, easily measured and highly flexible intervention work shadowing and A centrally coordinated approach to building capability within key talent job rotation populations through work allocation20
  21. 21. The drive for transparencyExperienced managers – particularly in finance – look for hard quantitative evidence to evaluatereturn on investment. This is a challenge in the talent management arena, where so many of thebenefits and impact are qualitative.A KPMG survey of Hr and talent directors27 identified that With this in mind, KPMG is developing the concept of amany did not find it easy to justify their desired levels of talent talent cost calculator, designed to be a tool to help identifyspending in terms of business benefits, and were also hard correlations and causal relationships between spending onpressed to capture the real cost of existing talent activities talent management and improved performance and businessacross their organisations. metrics. The tool incorporates all expenditure within the talent management area – from recruitment through to retentionone approach is to use a range of qualitative measures. These activity, performance recognition, training and leadershipcould include surveys of stakeholder satisfaction in relation to development – as well as data on employee populations –the quality of FBP support provided, for example. similarly, covering salary costs, retention, etc. development of the talentemployee surveys can provide snapshots of how people feel cost calculator is in its early stages, but KPMG is working withabout the learning and development provided, the clarity of clients to gather the data and inputs with which to begin thecareer paths and their general level of engagement. analysis, and the medium-term goal is to build and grow a database and tool that allow increasing insight into talent spendHowever, greater insight into the impact of talent management and the measurable impact it has across the business.spend is increasingly sought. With cost control set to be amajor goal for organisations and their finance functions, interestin value-for-money and return on investment is high.27 KPMG survey of Hr and talent directors, May 2009 maximising people power: effective talent management THE drIvE For TrAnsPArEnCy 21 in finance
  22. 22. ConclusionIntegrated talent management sits at the heart of finance function effectiveness and is thereforeof critical importance. It is an essential requirement if finance functions are to meet the changingand challenging demands made of them, and ensure they have appropriate professionals with theright skills and competencies available in the right place at the right time. This is a key factor insupporting the value creation cycle, whereby finance professionals apply their talents and skills tosupport organisational performance and enable value to be sustained for the long term.In the drive to develop the most efficient and effective Adopting an integrated approach to talent management offersfinance functions, CFos have shown themselves willing to a tremendous opportunity to add value and build the influenceadopt new structures and operating models. yet identifying of the finance function within organisations: too often thethe most appropriate finance function structure cannot be people and talent implications of activity are overlooked orundertaken in isolation. It must be designed in the context of misunderstood. our experience shows that the organisationsthe prevailing economic climate and the specific organisational that put talent management at the heart of their finance functioncharacteristics. Fundamentally, talent management issues must are building the capability that gives the finance function – andbe considered from the start to ensure that the preferred finance through them the wider organisation – a competitive advantagefunction model is achievable. and invaluable source of differentiation in an economic climate where that has never been more important.This can be particularly challenging when seeking to developfinance business partners – finance professionals whowork closely with operations to provide a ‘finance lens’ onorganisational decision making. This is a high-profile financerole, and one with the potential to add great value to theorganisation. But it also demands a broad mixture of skills andcompetencies, which can usually only be developed through astructured training and development programme.Ensuring the talent pipeline is flowing properly for FBP and allother finance roles takes time and commitment. It requires anintegrated talent management framework containing a numberof key elements:• definition of what real talent looks like• recruitment (internal or external) of individuals with appropriate skills, capabilities and development potential• competency frameworks to define the key talent requirements in every finance role• targeted development to ensure limited resources are focused on the most critical finance roles• comprehensive learning, with a range of development options available to suit individual and corporate needs• structured career paths to help individual finance professionals develop their skills and careers in line with organisational needs• performance measurement and reward to align finance professionals and their achievements with the delivery of organisational strategy• ongoing review to ensure the talent management framework continues to meet finance and organisational needs.22
  23. 23. aBoUt acca aBoUt tHe aUtHorACCA (the Association of Chartered Certified Accountants) is the global bodyfor professional accountants. We aim to offer business-relevant, first choicequalifications to people of application, ability and ambition around the world whoseek a rewarding career in accountancy, finance and management.Founded in 1904, ACCA has consistently held unique core values: opportunity,diversity, innovation, integrity and accountability. We believe that accountantsbring value to economies at all stages of their development. We seek to developcapacity in the profession and encourage the adoption of global standards. ourvalues are aligned to the needs of employers in all sectors and we ensure that,through our qualifications, we prepare accountants for business. We seek to openup the profession to people of all backgrounds, and remove artificial barriers,developing our qualifications and their delivery to meet the diverse needs of traineeprofessionals and their employers.We support our 140,000 members and 404,000 students in 170 countries,helping them to develop successful careers in accounting and business, based onthe skills required by employers. We work through a network of 83 offices andcentres and more than 8,000 Approved Employers worldwide, who provide highstandards of employee learning and development. Through our public interestremit, we promote appropriate regulation of accounting and conduct relevant Jamie lyonresearch to ensure accountancy continues to grow in reputation and influence. Jamie Lyon is head of employer services at ACCA. He is a qualified accountant andaccountants for Business holds extensive experience in training,ACCA’s global programme, Accountants for Business, champions the role of finance learning and development across theprofessionals in all sectors as true value creators in organisations. Through people, accountancy and finance profession.process and professionalism, accountants are central to great performance. They Prior to ACCA he spent over a decadeshape business strategy through a deep understanding of financial drivers and seek in industry as an accountant holding aopportunities for long-term success. By focusing on the critical role professional variety of finance and accounting rolesaccountants play in economies at all stages of development around the world, working in the UK and internationally.and in diverse organisations, ACCA seeks to highlight and enhance the role theaccountancy profession plays in supporting a healthy global economy.aBoUt KpmgKPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLPand operates from 22 offices across the UK with nearly 11,000 partners and staff.The UK firm recorded a turnover of £1.6bn in the year ended september 2010.KPMG is a global network of professional firms providing audit, tax, and advisoryservices. We operate in 150 countries and have more than 138,000 professionalsworking in member firms around the world. The independent member firms ofthe KPMG network are affiliated with KPMG International Cooperative (‘KPMGInternational’), a swiss entity. KPMG International provides no client services.
  24. 24. The information contained in this publication is provided for general purposes only. While every effort has been made to ensure that the information is accurate and up to date at the time of going to press, ACCA and KPMG accept no responsibility for any loss which may arise from information contained in this publication. no part of this publication may be reproduced, in any format, without prior written permission of ACCA. © ACCA February 2011.ACCAUnited KingdomLondon WC2A 3EEwww.accaglobal.com29 Lincoln’s Inn Fields+44 (0)141 582 2000