locations docs/malaysia...littledale and tan sri dr tony fernandez have been friends for a long time...
TRANSCRIPT
3Inspire
‘Back then, going to university was mainly just for a bit of fun.’
only person sitting for the papers in the
British Council office in Santiago. He said, ‘I
was candidate number one sitting at table
number one.’ The years spent in Santiago
certainly left a lasting impression on him. ‘I
loved it there,’ he said.
Flying soloNow at 48, and with more than 22
years of work experience in several
multinational companies around the
world, he said, ‘After five years of living in
Malaysia, I am hooked on ‘teh tarik’ and
‘roti canai’ and it’s my Sunday morning
ritual.’ He fondly illustrates the first day
he started with Air Asia as back then they
only had around 30 to 50 employees.
When he first arrived in July 1997, there
wasn’t a single aircraft under Air Asia X
which was where he initially served as
CFO before landing his role today.
Looking back he wouldn’t have dared
to dream of such an incredibly rapid
growth for Air Asia Berhad. But with all
the hard work and determination put
in by everyone in Air Asia Berhad, such
an accomplishment was inevitable. One
man’s dream of providing the opportunity
for people to fly to anywhere around the
world affordably has become a reality.
Littledale and Tan Sri Dr Tony Fernandez
have been friends for a long time and
he was inspired by Tony’s dream. He
immediately seized the opportunity when
he was asked to hop on board Air Asia.
Being a part of the Air Asia Berhad
team for the past five years has been
From zoology to aviation, ANDREW LITTLEDALE, Chief Financial Officer of Air Asia Berhad, shares his journey with us over a cup of coffee.
From animals to numbers – that was how it all beganLittledale broke into a smile when we asked him about his university days and
why he chose zoology. He said, ‘I had wanted to pursue veterinary science
but was offered to study zoology instead. Back then, going to university was
mainly just for a bit of fun.’ After graduating he realised that he wanted to
take a different path in life. ‘If I were given the opportunity to do it all over
again, I would have definitely done something more general and versatile like
business and finance.’ Littledale’s first stint in the finance sector was as a credit
analyst which he found dull and repetitive. In a desperate attempt to break free
from being stuck in a rut, he met a friend who advised him to take the CIMA
professional qualification as it was the best option if he wanted to learn all
that was important in business and finance but without the auditing aspect. To
Littledale’s delight, it was exactly what he was looking for.
CIMA to SantiagoLittledale went on to complete his first stage of CIMA in London but proceeded
to complete all the other stages in Santiago, Chile, which is also the reason why
he speaks Spanish so fluently. He chuckles a little as he remembered being the
SuccessCounting ‘s
FEATURE
3Inspire
‘Back then, going to university was mainly just for a bit of fun.’
only person sitting for the papers in the
British Council office in Santiago. He said, ‘I
was candidate number one sitting at table
number one.’ The years spent in Santiago
certainly left a lasting impression on him. ‘I
loved it there,’ he said.
Flying soloNow at 48, and with more than 22
years of work experience in several
multinational companies around the
world, he said, ‘After five years of living in
Malaysia, I am hooked on ‘teh tarik’ and
‘roti canai’ and it’s my Sunday morning
ritual.’ He fondly illustrates the first day
he started with Air Asia as back then they
only had around 30 to 50 employees.
When he first arrived in July 1997, there
wasn’t a single aircraft under Air Asia X
which was where he initially served as
CFO before landing his role today.
Looking back he wouldn’t have dared
to dream of such an incredibly rapid
growth for Air Asia Berhad. But with all
the hard work and determination put
in by everyone in Air Asia Berhad, such
an accomplishment was inevitable. One
man’s dream of providing the opportunity
for people to fly to anywhere around the
world affordably has become a reality.
Littledale and Tan Sri Dr Tony Fernandez
have been friends for a long time and
he was inspired by Tony’s dream. He
immediately seized the opportunity when
he was asked to hop on board Air Asia.
Being a part of the Air Asia Berhad
team for the past five years has been
4 Inspire
an exhilarating experience for him. From being
nowhere and unheard of to becoming the top
low cost airline in Asia in a span of five years
has enriched his life in ways he never imagined.
Being the CFO of Air Asia Berhad was the perfect
platform for him to use all his experiences and
knowledge from CIMA to the fullest. He said,
‘The most important thing in ensuring success
in running a business is that you must be able
to not only track and report the progress but to
also measure and strategically chart your plans.
You must also be able to forecast the upcoming
trends and anticipate the risks that come along
with it. You must be able to read and produce good
internal reports, as without them even the most
established companies can crumble.’
Littledale added, ‘Looking at the world’s volatile
economy, it is vital to identify possible obstacles
from the outset and to have a plan how to tackle
them. CIMA equips individuals to strategise to
get the maximum output and deal with future
issues. The whole idea is to be proactive rather
than reactive.’ Although one may think that
their tertiary education does not play a vital role
later on in their lives, Littledale begs to differ as
throughout the years CIMA has continuously kept
him updated on the latest trends and developments
so that he is always in the ‘loop’ on current and future
trends. He values these updates as they help him to
be a step ahead of the rest.
Personal valuesLittledale believes that there is no point expecting
other people to do something that you are not
willing to do yourself. He has learned that as
a leader you must be ready to get your hands
dirty and lead by example. Transparency in the
workplace and allowing employees to voice out
their ideas to their superiors are definitely essential
in the workplace. Everybody is equal in his eyes.
‘There is no point being a dictator in the workplace,
a bête noir, as your company will suffer,’ he said
this with much gusto as he takes a sip of his coffee.
His affable nature and easy going manner would
put anyone around him at ease.
Family and personal timeAlthough work usually occupies most of his time,
he occasionally indulges in competitive go-kart
racing in Sepang. Golf is another favourite way of
‘If I were given the opportunity to do it all over again, I would have definitely done something more general and versatile like business and finance.’
‘Looking at the world’s volatile economy, it is vital to identify possible obstacles from the outset and to have a plan how to tackle them.’
5Inspire
passing his time when he is not travelling
with his family. It is not a well known
fact but Littledale is actually a licensed
pilot and he used to fly quite frequently
while he was in the UK. He realises
that not many people in Asia fly as a
hobby but he doesn’t blame them as the
weather in Malaysia especially can be
rather erratic and the thunder clouds can
be hazardous.
The aviation industry has a special
place in Littledale’s heart and he looks
forward to continuously grow with Air
Asia Berhad as there are still many things
that need to be done. However, if given
an opportunity in the future, he would
like to work in other countries especially
in the United States. The new global
professional designation of Chartered
Global Management Accountant (CGMA),
created by the recent joint venture
between CIMA and AICPA, will certainly
make it easier and broaden his chances
of making this a reality. Littledale believes
that you should never be afraid to ask
questions and to keep on asking until you
truly understand. He strongly believes
that perseverance is key if you want to
achieve the things that matters most in
life. CIMA is definitely something that he
does not regret doing in life.
CIMA equips individuals to strategise to get the maximum output and deal with future issues
7Inspire
YM RAJA DATO’ SERI ABDUL AZIZ RAJA SALIM, fondly known as Engku, shares his endearing journey in this candid and engaging interview on how he revolutionised accountancy in the government sector and how a few lunch meetings led to the birth of CIMA in Malaysia.
Malaysia’s first Management Accountant
ike most gentleman of his era,
Engku greets our team with a
warm smile. As we begin the
interview, it is clear that even at
73, his mind is as sharp as ever
which is not surprising since he sits on the
board of many public listed companies
such as Gamuda Berhad, Panasonic
Manufacturing Malaysia Berhad, PBB
Group, Hong Leong Group, and the
Kenanga Group of Companies.
From Taiping with loveHis voice waivers slightly as he recalls his
life story, an inspiration to us all. Coming
from a small family, Engku was born and
raised in Taiping, Perak. Having lost his
father at a tender age of ten, his mother
single handedly raised her children by
herself. It was not the easiest of times
but they got by. From a young age,
Engku excelled in mathematics and
did very well in school. He went on to
complete his secondary education and
was offered a scholarship to further his
studies in the UK.
A strange proposalEven in his youth, Engku was clear that he
wanted an education in finance and was
set to be a chartered accountant. However
he was baffled when the government
offered him a scholarship to pursue cost
and works accounting (now known as
management accounting) as he had never
heard of it. He was informed that the
country was in dire need of accountants
and a new method of accounting had
emerged; the government didn’t want to
miss out on the opportunity. Although
no one was quite sure of what the course
entailed, they persuaded Engku to be the
first one to try. He decided to take up the
challenge and spent the next three years in
Bristol Business College, UK, after which he
became the first CIMA member in Malaysia.
The revolution beginsAfter returning to Malaysia in the early
1960s he found himself doing historical
accounting as the government was
unsure where to place him. Of course
he was quite unhappy as he was a CIMA
member and wanted to put all the
knowledge learnt into practice. Malaysia
was then in need of much structure and
planning in order to grow and survive in
the competitive market. Engku saw that
this was the best platform to put his
CIMA skills to work. After much debate,
a management accounting division was
set up. The next step was to hire more
CIMA graduates to join the new division.
Mr Zainal Abidin Yahaya, a Malaysian
who had just graduated in management
accounting, later joined the division and
became Engku’s close friend and partner.
He was the second CIMA member in
Malaysia and together they set new
standards and innovative methods to
plan, analyse and measure growth.
New discoveries, new challenges and new solutionsDuring the early post independent days,
Malaysia’s economy heavily depended on
rubber and tin. Though such commodities
did well in the international market,
FEATURE
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8 Inspire
Malaysia’s economy had succumbed to
the monopoly of the western countries.
Desperate for a change and to liberalise
the economy, great effort was made
to break free from a dependence on
the volatile international market. It
was a time to start innovating and
developing ideas on our own. We had
to stand alongside other nations and
be leaders in scientific discovery and
technological innovation. Malaysia had
to diversify. With the birth of palm oil
and the discovery of high grade crude
oil throughout Malaysia, came a surge in
the economy and the government had
to find a more efficient way to work.
As a CIMA member, Engku took the
opportunity to again put his knowledge
in management accounting to work,
proving again that the CIMA knowledge
he had gained was far superior and
provided end to end solutions to run
not only an organisation, but an entire
government. Together with his team,
they made a breakthrough by creating
a method of gathering, tracking and
analysing information that would provide
them an overall picture of growth and
how to improve it. Engku was pleased
that their efforts paid off as management
accounting was gaining more acceptance
and more individuals were interested to
join the bandwagon. By this time they
were more than capable of running the
division on their own. As the division
grew in size, Engku found himself
being transferred to other government
bodies before landing the role of deputy
accountant general. However Engku
knew that his quest to further promote
management accounting was far from
over. He knew that it was now time to
take management accounting to the next
level – beyond the government sector and
to help people and businesses succeed.
An alliance is born Along with the rapid economic
growth, Engku and his peers namely
Mr Zainal Abidin Yahaya and two
other CIMA members, Major Ho Ching
‘Although having integrity may not make you a popular person in your organisation, you will definitely be a winner in the race of life. Looking back, I have no regrets. I have a clear conscience and sleep soundly at night.’
Toh and Major Chow Ho Chan, saw
a need to create a committee of like
minded individuals to further drive
management accounting. After reaching
a considerable membership size, they
requested recognition from the CIMA
headquarters in the UK. Considering
how well CIMA was received in
Malaysia, the committee was given
financial assistance to have their own
office and hire a few employees. Not
long after, the committee tripled in
size resulting in its conversion into a
branch and subsequently was granted
divisional status by CIMA UK. In mid
1989, CIMA moved to a three storey
building in Kelana Jaya. It is clear that
CIMA is very close to Engku’s heart
as he speaks with such pride and
excitement.
9Inspire
New beginningsAfter 15 years of serving as the president
of CIMA Malaysia, Engku believed that
CIMA is now ready to move forward
without his guidance as there were many
talented CIMA members. It was hard to
let go but it was the right thing to do
as Engku had to move on in his career.
He became the Director General of
Inland Revenue from 1980 to 1990 and
Accountant General Malaysia from 1990
to 1994. He says that his pride in CIMA
membership stems from being trained
to specialise. This means that all CIMA
members are able to play a leading role
in applying management accounting
concepts to any industry that they are
in. He says, ‘I feel I can contribute what I
have learnt, put it into practice and the
scope is limitless. CIMA has thought me
to look forward, and how to improve
efficiency and profitability.’ For his
services in the accounting profession,
and for his contribution to CIMA,
Engku was honoured with the CIMA
Gold Medal in 1986, the first recipient
outside the UK and Ireland.
When asked to comment on the
new Chartered Global Management
Accountant (CGMA) designation
10 Inspire
‘I feel I can contribute what I have learnt, put it into practice and the scope is limitless. CIMA has thought me to look forward, how to improve efficiency and profitability.’
created by the joint venture between
AICPA and CIMA he said, ‘It is truly an
achievement that we should all be proud
of; not many can break into the American
market as they have their own systems
and standards. Both parties will benefit
a lot from it, be it through research,
methodology or updating the syllabus.
This will help all members to gain
worldwide recognition and open doors
to endless opportunities. With employers
looking for more able and talented
individuals to recruit, CIMA will emerge as
the leader in creating a talented supply of
human capital.’
Matters of the heartAfter more than 17 years since retiring
from the government service, Engku is
still very active in the corporate sector.
He sits on the boards of many listed and
non listed companies. He makes it clear
that he is not in it for monetary benefits
but for the satisfaction of being able to
contribute to a greater cause. He believes
everything that we do must be done
whole heartedly, with determination and
dedication. He holds dear to the value of
honesty and integrity. He said, ‘Although
having integrity may not make you a
popular person in your organisation, you
will definitely be a winner in the race of
life. Looking back, I have no regrets. I have
a clear conscience and sleep soundly at
night.’
Engku is pleased that CIMA has made
a clear stand on upholding integrity and
ethics and ensures that all members
abide by a code of ethics. Engku has also
ensured that this attribute is passed on
to his children, Tengku Azmil and Tengku
Azrina, both outstanding and equally
successful individuals in their fields
today. Both graduated from Cambridge
and Oxford University, respectively in
Economics and Law. Like his father,
Tengku Azmil is a Chartered Accountant
of England and Wales, putting his skills
as an accountant to good use as the
Managing Director/Chief Executive
Officer of Malaysia Airlines before his
current role as Executive Director of
Khazanah. Tengku Azrina has a very
successful legal practice.
Moving forwardApart from spending time with his
family, Engku enjoys travelling with his
wife Datin Seri Tengku Ramlah Azizah.
When asked about his future plans, he
paused for a moment and breaks into
a smile. He says, ‘I know I will need to
retire at one point but for now, I am
happy with what I am doing and will
continue doing so as long as my health
permits.’ Contented with life, he now
hopes that CIMA will continue to enrich
the lives of many more individuals as
much as it did for him.
11Inspire
How management accounting drives sustainable successWhat management accountants doManagement accountants are trusted to
guide critical business decisions and drive
strong business performance.
They combine financial expertise and
business acumen to achieve sustainable
business success. They understand how
the different parts of the business need to
come together.
Chartered Global Management
Accountants (CGMAs) are committed to
professional ethics and a code of conduct.
A single syllabus and examination
standard ensures the consistency of a
CGMA’s skills all over the world.
While many CGMAs work in the
finance department, others put their
broader business training to use across
the organisation, including the roles of
Board Director, Chairman and CEO.
A global professionAICPA, the American Institute of Certified
Public Accountants and CIMA, the
Chartered Institute of Management
Accountants, two of the world’s most
prestigious accounting bodies, have
formed a joint venture to elevate the
profession of management accountancy
by establishing CGMA as the most
valued, globally recognised management
accountant designation.
A GLOBAL PROFESSION
AICPA, the American Institute of Certified Public Accountants and CIMA, the Chartered Institute of Management Accountants, two of the world’s most prestigious accounting bodies, have formed a joint venture to elevate the profession of management accountancy by establishing CGMA as the most valued, globally recognised management accountant designation.
WHAT MANAGEMENT ACCOUNTANTS DO
Management accountants are trusted to guide critical business decisions and drive strong business performance.
They combine financial expertise and business acumen to achieve sustainable business success. They understand how the different parts of the business need to come together.
Chartered Global Management Accountants (CGMAs) are committed to professional ethics and a code of conduct. A single syllabus and examination standard ensures the consistency of a CGMA’s skills all over the world.
While many CGMAs work in the finance department, others put their broader business training to use across the organisation, including the roles of Board Director, Chairman and CEO.
MANAGEMENT ACCOUNTING IS MORE THAN YOU THINK
Chartered Global Management Accountants combine financial expertise and business acumen.
ROLE
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SFO
CU
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PEC
TIV
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MANAGEMENT ACCOUNTING
Reporting financial performance
Laws Standards Regulations
Financial Quantitative
Certain
Static
Historical
Reporting Technical Analytical
Compliance
ADDED VALUE
Managing business opportunities
Evidence Solutions
Best practices
Non-financial Qualitative Predictive
Dynamic
Forward looking
Communicating Innovating
Problem solving
Strategy
FINANCIAL ACCOUNTING +
Management accounting is more than you thinkChartered Global Management Accountants combine financial expertise and business
acumen.
HIGHLIGHTS
Inspire12
CGMA CASE STUDIESCGMAs are guiding critical business decisions and driving strong business performance all over the
world using management accounting research, tools and techniques.
THE CGMA IS FOUNDED ON THE CIMA SYLLABUS
Established in 1919, CIMA is the world’s leading and most respected management accountancy body, with members and students in 168
experience requirements.
CONTINUING PROFESSIONAL DEVELOPMENT (CPD)
Chartered Global Management Accountants continuously sharpen their business acumen through Continuing Professional Development (CPD). This ensures that management accounting skills, tools and techniques of CGMAs are up to date.
equivalent to that of CIMA’s. US CPAs have taken a uniform examination and met education and experience requirements set by state governmental agencies.
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ENTERPRISE PERFORMANCE FINANCIAL
25%Financial decisions 30%Investment decisions and project control 45%
35%Issues in recognition and measurement 20%
accounts 35%Developments in external reporting 10%
Principles of business taxation 25% 15%
Financial accounting and reporting 60%
Management control systems 10%Risk and internal control 25%Review and audit of control systems 15%
35%Risk and control in information systems 15%
Costing accounting systems 30%Forecasting and budgeting techniques 10%Project appraisal 25%Dealing with uncertainty in analysis 15%
20%
Interacting with the competitive environment 20%Change management 20%Evaluation of strategic options 30%Implementation of strategic plans 30%
Strategic management and assessing the competitive environment 30%Project management 40%Management of relationships 30%
The global business environment 20%Information systems 20%Operations management 20%Marketing 20%Managing human capital 20%
Pricing and product decisions 30%Cost planning and analysis for competitive advantage 30%Budgeting and management control 20%Control and performance measurement of responsibility centres 20%
CIMA Advanced Diploma in Management Accounting
CIMA Diploma in Management Accounting
For more information go to www.cgma.org
15% Net present value over three to four years. Project has provided foundation for acquisitions worth multiple billions of dollars.Simon Henry CG MA, Group CFO, Royal Dutch Shell
£25m Savings and sta� redeployed into higher value work.Steve Swientozielskyj CGMA,Head of Finance Shared Services, Network Rail
60% Cost savings switching EMEA into shared service centre.Boonsiri Somchit-Ong CG MA, Vice President Global Accounting, AMD, Kuala Lumpur
$1bn Added to the bottom line of a global FMCG client over an 18 month period.Justin Watson,Head of Finance Talent, Deloitte
£65m Spend on innovative green technologies resulting in a distillery that recycles 31% of its water and 85% of its steam and electrical power.Paul Walsh CGMA, CEO, Diageo
CGMA CASE STUDIES
CGMAs are guiding critical business decisions and driving strong business performance all over the world using management accounting research, tools and techniques.
13Inspire
Innovation outlookFraming the global management accounting agenda 2012/13CGMAs driving critical decisions for business success
The Chartered Global
Management Accountant
(CGMA) designation created
by the joint venture between
CIMA and AICPA recognises
the most talented and committed
management accountants with the
discipline and skill to drive strong business
performance.
This report highlights key areas of
focus for CGMAs over the coming year
as they strive to make an effective
contribution to long-term business
success.
Background and contextOrganisations across the world
face unprecedented challenges. The
paradigms that have guided business
and government have been disrupted
by a dizzying pace of change brought
about by globalisation, innovation and
the continuing fallout from the global
financial crisis.
As Douglas Flint, Chairman of HSBC
has pointed out, ‘I don’t think we’ve ever
been in a period, in our lifetimes at least,
where things have been more uncertain’,
Rebooting business: valuing the human
dimension, CGMA, 2012.
These challenges have a significant
impact on the role of the management
accountant. This report frames the
debate by highlighting the key areas of
focus for business and how management
accountants can support their
organisations effectively.
The first priority for organisations is to
focus on long- term sustainable success,
based on a robust and resilient business
HIGHLIGHTS
model. This applies just as much to public
services and not-for-profit organisations,
both of which also strive to serve the
end-user and allocate scarce resources
effectively.
Driving this forward will be an
emphasis on new ways of working and
collaboration between executives and
stakeholders both within and external
to organisations – in other words,
connecting the dots.
What this needs is effective oversight
and quality decision making by both the
board and management. This recognises
high-quality management information
combined with the very best insightful
analysis that enables organisations
to devise innovative, robust ways of
delivering success over the long term.
This is where management accountants
have such a crucial role to play. Their
distinctive skills and experience, and
in particular their multi-disciplinary
approach, is how management
accountants contribute value to
organisations in such a fundamental way.
Management accountants are trusted
to guide critical business decisions and
drive strong performance. They combine
financial expertise and business acumen
to achieve sustainable success. They
understand how the different parts of
the business need to come together, so
helping to ground decisions in operational
and financial reality. Management
accountants also monitor how each part
of the business attains its goals and how
that contributes to the performance of
the business as a whole. In this way, they
help guide the organisation to implement
the decisions of the board successfully
and to ensure that the board has a
clear line of sight. These are all essential
attributes that CEOs and other senior
business leaders have told us that they
need to meet the challenges ahead.
Indeed, it is no surprise to discover many
of the best management accountants
leading organisations themselves.
Foundations of management accountingIn keeping with the objective of the
joint venture to establish the CGMA
designation to elevate the profession
of management accounting, we
have created a systematic approach
to demonstrate how management
accountants can make this unique
contribution.
The bedrock of this approach is an in-
depth statement of the foundations of
management accounting, summarised
in the publication: How management
accounting drives sustainable success.
This demonstrates the roles, skills,
behaviour and influence demonstrated by
the management accountant to deliver
what the organisation needs. In essence,
the management accountant links
the board objectives and the business,
enabling the right decisions to be made,
be appropriately funded and correctly
implemented throughout the organisation
both in the short and long term.
We are building on this work
through an integrated Management
Accounting Coordination Framework
Programme. This will integrate a number
of projects, including the development
of the syllabus and CPD, tools to support
the effectiveness of management
accounting and research into the
future of the finance function. The
programme is market-driven to ensure
ongoing relevance so that management
accountants can always be at the cutting
edge of techniques, tools, issues and
solutions that are most important to
organisations.
14 Inspire
For each theme, our objective will be to develop and promote new thinking with particular emphasis on the unique perspective of the management accountant in addressing some of the key challenges facing business. These themes are all core to long-term sustainable success. They have particular relevance at a time of economic turmoil and increasing environmental stress in a world where the system is being stretched to breaking point. Creative destruction, always a feature of market economies, has begun to exact a heavy toll. At the same time, the realisation is gaining hold that short-termism is ultimately unsustainable both in commercial and wider societal terms. The first imperative is for companies to base all their decisions and actions on quality information with a view to serving not just the needs of a narrow group of stakeholders, but the needs of the community and the environment as a whole – doing the right thing. This is a fundamental foundation of long-term sustainability. Decisions must also be based on sound ethical principles.
In supporting this, our recent research of business leaders clearly demonstrated the importance of having the right skills and talent in supporting business success. We saw above how management accountants support business success, but of course, nobody needs much reminding of how business is constantly evolving. A key focus of this theme is therefore to understand these changing needs of business so that management accountants are developing the skills and talent to succeed. It is also crucial for organisations to understand and measure the value of their human capital so that they can harness its power effectively. Most busines s leaders will tell you that it’s one thing planning the strategy and deciding what to do, but the real skill lies in making it happen. A key element of this is effective performance management to ensure that performance indicators and incentives reinforce the right behaviours towards achievement of the desired outcomes. A key conclusion from the global financial crisis was that boards had fallen short in their ability to oversee
strategy and risk effectively. The current environment leaves very little room for manoeuvre or error in this regard, but that does not mean that companies should resort to a ‘bunker mentality’ and play safe. Constant reinvention and the seizing of opportunities are key to long-term survivability so organisations need to steer a course between risk versus innovation. A further important component is a resilient business model. This is a new term that seems to have entered the business lexicon in recent years, possibly as a consequence of the volatile, uncertain and complex conditions that now prevail, which can render traditional product and service offerings and delivery channels obsolete very abruptly. It’s clear that no organisation’s business model can stand still. So it’s essential for organisations to have a real grasp of how they make money – or deliver value – to ensure that their business model is actually delivering the right results now and into the future. To support this, organisations need to have the right sort of information to help them make decisions on all aspects of their business. They need to understand their customers, drive operational efficiency and have a clear understanding of all the external factors that impact upon their business, including social, environmental, technological, competitive and political issues. But there is little point in churning out data if you can’t make much sense of it. So the priority has to be turning data into insights and action. This also involves a thorough understanding of the potential implications of developments such as mega data, cloud computing and the so-called ‘internet of things’. Our six themes, building on the foundations of management accounting, will help all organisations steer a course towards long-term sustainable success. Through delivering a platform of outputs including reports, tools, events and webcasts, we will be providing CGMAs with the resources they need to add value and develop their careers, whatever their role in the organisation.
How management accounting addresses current business challengesOn top of this core foundational programme, we are focusing on six overarching themes in the coming year as shown in the calendar below. Together, the themes address all of the most critical challenges facing the world’s organisations and are based on extensive feedback combined with our own analysis of prevailing market conditions.
INNOVATION OUTLOOK – FRAMING THE GLOBAL MANAGEMENT ACCOUNTING AGENDA 2012/13
On top of this core foundational programme, we are focusing on six overarching themes in the coming year as shown in the calendar below. Together, the themes address all of the most critical challenges facing the world’s organisations and are based on extensive feedback combined with our own analysis of prevailing market conditions.
HOW MANAGEMENT ACCOUNTING ADDRESSES CURRENT BUSINESS CHALLENGES
THEME TOPICS
Doing the right thing
Developing the skills and talent to succeed
Making it happen
Risk versus innovation
Resilient business models
Turning data into insights and action
• Applied ethics
• Corporate social responsibility
• Behaviours• Leadership
• CFO priorities
• Future of management accounting
• Valuing talent - cost of losing and retaining talent
• Tomorrow’s finance talent and competencies
• Contemporary performance management
• Strategy, risk and opportunity management
• What they are and how to develop them
• Managing mega data
• Cloud computing, IT• The internet of things
2012
2013
Joining the likes of AirAsia, Tesco Malaysia, Google Malaysia and Shell Malaysia, CIMA SE Asia has signed a Corporate Integrity Pledge to signify its commitment towards creating a business environment that is fair, transparent and free from corruption. To date, more than 50 organisations have signed the pledge in Malaysia and there is interest in the initiative elsewhere in the region – showing how companies, civil society and government are seeking to address issues of corruption and corporate ethics.
The Corporate Integrity Pledge is an initiative of the Malaysian Institute of Integrity that is aligned with the objective of fighting corruption under the Government Transformation Programme of Malaysia. We are proud to support this initiative as ethics is not only on CIMA’s agenda but businesses globally. Plans are underway to work closely with the Malaysian Institute of Integrity to fly the ethics flag even higher.
Read CIMA’s pledge at: http://www.cism.my/index.php?act=pledge&company_pledge1Page=1
CIMA SE Asia signs the corporate integrity pledge
UPDATES
AVAILABLE REPORTS
CIMA SE Asia launched the CGMA report on ‘Managing responsible business’ in early May this year in Malaysia and Singapore.
The report, a global survey of almost 2,000 Chartered Global Management Accountants, in nearly 80 countries, found that 80 per cent of organisations provide a code of ethics to guide employees about ethical standards in their work, up from 72 percent in 2008. Despite more commitment to ethical performance, pressure to act unethically is on the rise. Four out of five businesses worldwide have committed to ethical performance, but rhetoric does not always match reality. The report highlighted a weakened ‘tone from the top’ and more pressure on financial professionals – especially in emerging economies — to act unethically.
A copy of the report is available at: http://www.cgma.org/Resources/Reports/Pages/ManagingResponsibleBusiness.aspx
Managing responsible business
Managing responsible
business
A global survey on business ethics
CgMa reporT
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From AICPA and CIMAcomes a new global designation.
The American Institute of Certified Public Accountants and
Chartered Institute of Management Accountants proudly
announce the creation of the Chartered Global Management
Accountant (CGMA) designation, to elevate the profession of
management accounting.
Demonstrating management accounting expertise, determination
and commitment to achieving sustainable business success,
CGMAs are trusted by businesses worldwide to guide critical
decisions and drive strong performance.
CGMA delivers the financial expertise companies demand.
And the performance excellence they deserve.
Find out more at cgma.org
Much of what we have known – the paradigms that have guided business and government – have been disrupted by a dizzying pace of change brought about by globalisation, innovation and the fallout from the global financial crisis. We see signs of this everywhere – the Eurozone crisis, protestors on Wall Street and around the world demanding a new agenda for
business and, of course, the shifting of economic power to Asia.While the issues and problems are familiar, the real task is to find the way through them to address what the World Economic Forum calls “an indisputable leadership challenge that ultimately requires new models, bold ideas and personal courage to ensure that this century improves the human condition rather than capping its potential.”
AVAILABLE REPORTS
Rebooting business: valuing the human dimension
Sustainable business: shared value in practice
Our new research bears out that the human dimension – relationships with customers, employees, partners and communities – will be key to getting things moving again and sustaining success over the long run. We surveyed 280 CEOs online from over 21 countries across the world to understand how they viewed current global challenges and what they saw as the priorities in leading their way through them. We followed this up with in-depth interviews with 17 CEOs, chairmen and other business leaders who between them are responsible for over 2.1 million jobs and market capitalisation of $1trn. This report will further explain how we are going to move beyond merely paying lip service to customers, employees and partners, to transform what we know into hard reality. It also highlights the obstacles and challenges and what do companies need to focus their efforts on.
The report is available at: http://www.cgma.org/Resources/Reports/Pages/rebooting-business.aspx
THE MARKETING FINANCE INTERFACE
How to measure and reduce strategy risk
SUSTAINABLE BUSINESS
Shared value in practice
CGMA REPORT
Set against a background of underlying mistrust in their intentions, major corporations have begun to realise that they need to focus on more than short-term profit maximisation. This report examines the need for more sustainable thinking in corporate strategies and identifies the critical business model areas to concentrate on. Michael Porter and Mark Kramer
explored the idea of enhancing business competitiveness while simultaneously advancing the social conditions of the wider community. They described this concept as ‘Shared
Value’. To illustrate the shared value benefits of adopting a more business sustainable focus in company strategy, we have looked at five major organisations in more detail to see what they are doing in this arena and importantly how both they and society in general are benefitting from adopting shared value principles. The companies that we looked at were General Electric, Nestlé, IBM, Unilever, Johnson & Johnson. This report provides practical illustrations of what is being done which can be considered and shaped by Chartered Global Management Accountants working in organisations adopting more sustainable business practices.
The report is available at: http://www.cgma.org/Resources/Reports/Pages/Sustainablebusiness.aspx
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